According to projections made by the Financial Markets Dealers Association (FMDA), inflows into Nigeria’s financial system are anticipated to reach N10.53 trillion in May 2026.
According to the association’s April monthly report, the anticipated inflow is 16% more than the N9.08 trillion recorded in April, indicating a stronger liquidity environment that may influence changes in interest rates.
The majority of inflows, or roughly 68% of the total, will come from Open Market Operations (OMO) maturities, according to the FMDA.
According to a breakdown, OMO maturities are expected to increase from N5.88 trillion in April to N7.17 trillion in May, making them the biggest source of system liquidity.
The Federation Account Allocation Committee (FAAC) inflows are projected at N1.8 trillion, marginally less than April’s N2.04 trillion, while Treasury bill redemptions are anticipated to increase to N1.05 trillion from N722.72 billion, according to the report.
The association added that since there are no bond maturities planned for the month, FGN bond coupon payments are expected to be N346.14 billion, down from N357.61 billion in April.
However, system liquidity declined in April, with average liquidity falling by 25.22 percent to N4.84 trillion, according to the report.
The decline, according to the association, was caused by “sustained CBN liquidity mop-up operations,” and levels were also marginally lower than those from March.
Regarding foreign exchange, the association stated that during that time, the naira increased on both official and unofficial markets.
According to the association, the National Foreign Exchange Market (NFEM) generated $8.51 billion in revenue in April.
The FMDA blamed “heightened global risk aversion and external pressures” for Nigeria’s external reserves’ 2.19 percent decline to $48.67 billion.
According to the report, the all-share index (ASI) rose by 20.38 percent and market capitalisation reached N155.99 trillion, indicating that sentiment in the stock market remained positive.
Brent crude prices averaged $101.43 per barrel throughout the month, according to the association.
Despite sporadic corrections, oil prices remained high due to ongoing geopolitical tensions, according to the report.
Additionally, FMDA reported mixed changes in fixed-income yields, with mid-tenor yields slightly increasing while short- and long-tenor yields decreased.
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