FX market turnover reaches $8.51 bn, whileN1.06 tn of maturities are set to improve banking liquidity this week

Nume Ekeghe

Nigeria’s foreign‑exchange market saw a marked rise in activity in April 2026, with total turnover on the Nigerian Foreign Exchange Market (NFEM) climbing to $8.51 billion.

The naira also strengthened in both the official and parallel markets despite ongoing global pressures.

According to the April 2026 Monthly Market Report issued by the Financial Markets Dealers Association (FMDA), the naira closed the month at N1,361.22 per $ in the official market and N1,403.60 per $ in the parallel market, representing month‑on‑month gains of 1.36 percent and 1.18 percent respectively.

The report indicated that the financial system will receive roughly N1.06 trillion from securities maturing this week, a flow expected to bolster liquidity in the money market even as the Central Bank of Nigeria (CBN) continues its liquidity‑mop‑up operations.

It projected that most of the inflows will stem from Open Market Operations (OMO) maturities, which are estimated to account for about 89 percent of the anticipated liquidity injection.

“The naira appreciated across both official and parallel markets, with total NFEM turnover rising to $8.51 billion in April, highlighting improved FX market activity even as external reserves continued to face pressure,” the report stated.

FMDA noted that the improvement in the foreign‑exchange market occurred alongside the CBN’s sustained liquidity‑management efforts, which include aggressive open‑market operations to withdraw excess liquidity from the financial system.

Analysis of market activity showed that average system liquidity fell by 25.22 percent month‑on‑month to N4.84 trillion in April, largely due to the apex bank’s tightening measures. Interbank rates, however, remained relatively stable, with the Nigerian Overnight Funding Rate (NOFR) at 22.05 percent and the Open Repo Rate (OPR) at 22.00 percent.

Despite tighter liquidity conditions, the report forecast stronger inflows into the financial system for May. FMDA estimated total inflows of N10.53 trillion for the month, an increase of about 16 percent over April.

The report further indicated that Open Market Operation maturities are expected to represent roughly 68 percent of the projected inflows, with N7.17 trillion slated to mature in May compared with N5.88 trillion in April. Treasury‑bill maturities are projected at N1.05 trillion.

The report cautioned that the CBN could continue to sterilise liquidity through additional market operations.

“Looking ahead, an estimated N10.53 trillion in inflows is projected for May, about 16 percent higher than April levels,” the report said, adding that “the CBN may moderate liquidity through further market operations.”

It also reiterated that “N1.06 trillion is expected from maturing securities, largely driven by OMO maturities, 89 percent.”