Capital Market Inflows Projected at N10.53trn for May

The Financial Markets Dealers Association (FMDA) has projected that Nigeria’s financial system is expected to record N10.53 trillion in inflows in May 2026.

In its April monthly report, the association said the projected inflow represents a 16 percent increase from the N9.08 trillion recorded in April, signalling a stronger liquidity environment that could shape interest rate movements.

The FMDA said Open Market Operations (OMO) maturities will drive the bulk of inflows, accounting for about 68 percent of the total.

A breakdown showed that OMO maturities are projected at N7.17 trillion in May, up from N5.88 trillion in April, making them the largest contributor to system liquidity.

“Treasury bills redemptions are expected to rise to N1.05 trillion from N722.72 billion, while inflows from the Federation Account Allocation Committee (FAAC) are estimated at N1.8 trillion, slightly lower than April’s N2.04 trillion,” the report said.

The association further said FGN bond coupon payments are projected at N346.14 billion, compared to N357.61 billion in April, with no bond maturities scheduled for the month.

The report, however, noted that system liquidity weakened in April, with average liquidity dropping by 25.22 percent to N4.84 trillion.

The association said the decline was driven by “sustained CBN liquidity mop-up operations,” with levels also coming in slightly below March figures.

On the foreign exchange front, the association said the naira appreciated across both official and parallel markets during the period.

The association said the National Foreign Exchange Market (NFEM) recorded a turnover of $8.51 billion in April.

Despite this, Nigeria’s external reserves fell by 2.19 percent to $48.67 billion, which the FMDA attributed to “heightened global risk aversion and external pressures”.

In the equities market, sentiment remained positive, according to the report, with the all-share index (ASI) rising by 20.38 percent, while market capitalisation increased to N155.99 trillion.

The association added that globally, Brent crude prices averaged $101.43 per barrel during the month.

“Oil prices remained elevated amid ongoing geopolitical tensions, despite intermittent corrections,” the report said.

FMDA also reported mixed movements in fixed-income yields, as short- and long-tenor yields declined, while mid-tenor yields edged higher.