Nigeria’s fixed-income market is projected to witness a surge in liquidity inflows in May 2026, with the Financial Markets Dealers Association (FMDA) estimating a total of N10.53 trillion entering the system, largely driven by elevated Open Market Operations (OMO) maturities.
- +FMDA projects N10.53 trillion inflows in May on heavy OMO maturities
The projection was disclosed in the FMDA Monthly Market Report published on Tuesday, May 5, 2026.
The projection was disclosed in the FMDA Monthly Market Report published on Tuesday, May 5, 2026.
The anticipated increase from April’s N9.08 trillion signals a stronger liquidity environment that could shape interest rate movements and investment decisions across the market.
The FMDA report highlights that OMO maturities will dominate inflows in May, reinforcing their role as the primary liquidity driver in the financial system. Other instruments, including Treasury bills, FAAC disbursements, and bond coupon payments, are also expected to support overall inflows.
Despite the absence of bond maturities, coupon payments will continue to provide steady liquidity, particularly to institutional investors such as pension funds and asset managers.
Beyond sovereign instruments, corporate debt market activities are expected to contribute to the liquidity expansion in May. The re-emergence of corporate maturities and increased coupon payments indicates a more active servicing calendar within the segment.
Although relatively small compared to sovereign inflows, these corporate-related payments will add to overall system liquidity and may drive reinvestment into higher-yield instruments within the corporate debt market.
The April 2026 liquidity environment provides important context for the projected increase in May, as it already reflected strong inflows driven by similar instruments. This trend underscores the continued reliance on OMO bills and Treasury instruments as key liquidity drivers.
The sustained increase in inflows into May suggests a continuation of strong liquidity conditions, which could influence yield compression, portfolio rebalancing, and broader fixed income market dynamics.
