Investors Commit 656 Billion Naira to OMO Bills
In a significant development, Nigeria’s foreign exchange reserves surged to $50.12 billion, marking the highest level in over 17 years. This notable increase underscores a substantial enhancement in the country’s external financial position over the past year.
Foreign Exchange Reserves See Dramatic Year-on-Year Growth
Recent data reveals that Nigeria’s total foreign exchange reserves reached $50.12 billion as of June 5, 2026, a rise from $38.28 billion recorded a year earlier on June 5, 2025, representing a year-on-year increase of 30.9%. This growth translates to approximately $11.84 billion added to national reserves within just 12 months, surpassing the $50 billion mark for the first time since January 26, 2009.
Recovery of National Reserves Highlights Economic Strength
This upward trajectory signifies a remarkable recovery in Nigeria’s foreign exchange reserves, establishing a stronger buffer against economic fluctuations. While the current reserves still fall short of the all-time high of $64.85 billion established on August 8, 2008, this latest figure stands as the most robust since the global financial crisis, indicating improved economic resilience.
Consistent Increase in Reserves Over the Past Year
Over the past 12 months, Nigeria’s foreign exchange reserves have followed a steady upward trend, climbing from $37.21 billion on June 30, 2025, to reach $50.12 billion by June 5, 2026. This consistent growth is one of the strongest observed in recent years, notably accelerating in early 2026 following moderate dips in earlier months.
Short-Term Securities Attract Investor Attention
In the debt market, Open Market Operations (OMO) bills were the focal point of activities yesterday, attracting N655.88 billion in transactions. Investors demonstrated a clear preference for short-term instruments, driven by their appealing yields. Data from the Fixed Income Dashboard highlighted that total trading volume across fixed income instruments amounted to N882.35 billion through 346 trades, with OMO bills constituting nearly three-quarters of this activity.
Future Yield Trends and Market Dynamics
Investor interest concentrated on select maturities, with the OMO Bill maturing on July 28, 2026, emerging as the most actively traded instrument, achieving a turnover of N202.25 billion. The OMO bills’ yields are on the rise, closing at 21.68% and 21.63% as of June 23 and July 28, 2026, respectively. In contrast, Treasury bills also remained attractive, with yields ranging from 16.02% to 19.48%, thus reflecting a competitive landscape for short-term investments.
Steady Activity in the Bond Market
In the bond sector, notable trading activity was recorded, particularly for the FGN bond maturing on April 18, 2037, which attracted N44.6 billion across 13 transactions. Despite fluctuations, bond yields appeared stable, typically closing within the range of 16.70% to 17.50%. The sukuk segment also contributed to market dynamics, as evidenced by a turnover of N30 billion across six transactions, with an observed yield of 14.80% on the October 2033 Sukuk.
