Treasury Bills, OMO Dominate Fixed Income Market as Turnover Hits N29.36tn

Nigeria's fixed income market demonstrated significant resilience and activity in July 2026, with a total turnover of N29.36 trillion recorded across 9,875 trades. Transactions spanned Open Market Operation (OMO) Bills, Nigeria Treasury Bills, Federal Government of Nigeria (FGN) Bonds, and Sukuk instruments, according to the Central Bank of Nigeria (CBN) Fixed Income Dashboard.

OMO Bills emerged as the most traded instrument, capturing a substantial N16.44 trillion face value from 2,809 trades. This dominance highlights investors' continued preference for the CBN's short-term liquidity management tools, especially amid elevated yields. Treasury Bills followed, with N6.98 trillion traded across 3,700 transactions, representing the highest number of individual trades. FGN Bonds recorded N5.87 trillion across 3,343 trades, while Sukuk instruments saw a more modest N69.11 billion from just 23 trades.

The market's performance occurred within a context of high interest rates in Nigeria. OMO Bills offered the highest yields, ranging from 20.47 percent to 21.62 percent. Treasury Bills also traded at elevated levels, with yields between 17.62 percent and 20.91 percent. FGN Bond yields remained relatively stable, fluctuating between approximately 15.5 percent and 18.6 percent across various maturities. This trading pattern underscores investors' inclination towards short-dated government securities, while the substantial volume in FGN Bonds indicates persistent institutional demand from pension funds, banks, and asset managers seeking stable returns.