Author: Julius Alagbe

Short-Term Rates Mix as Cross-Currency Swap Tightens Liquidity Interbank rates closed on a mixed note as financial system liquidity continues to fluctuate. The open repo rate held firm, but the overnight lending rate inched higher as a huge outflow related to cross-currency swap repayment on Thursday by the authority tightened liquidity flow in the money market. The short-term benchmark interest rates, however, stood firm even with the liquidity fluctuation; movement was limited due to excess funds in the financial system. The market recorded inflows from FAAC inflows even with treasury bills auction. Still, Banks continue to place funds with the…

Naira Falls as FX Demand Spikes, External Reserves Near $42bn The Nigerian naira experienced increased pressures from the official market due to heightened demand for foreign currency, US dollar in particular. The US dollar volume declined at the Nigerian foreign exchange market, highlighting reduced ability to meet rising demand as the strength of previous inflows eased. FX analysts said the official spot rate was roughened as FX log revealed dollar demand surged after more than $38 million FX intervention last week. Intraday FX spot rate weakened to N1510 on Thursday, while exchange rate traded at lowest point of N1487, data…

UBA Grows Profit by 6.1%, Declares 25k Interim Dividend United Bank for Africa (UBA) Plc grew profit by 6.1% in the first half of 2025 amidst tight regulatory situation.The Pan African lender’s profit after tax grew by 6.1% year on year to N335.53 billion from N316.36 billion in the comparable period in 2025. Due to increase share outstanding, earnings per share (EPS) marginally declined to N8.86 in H1-25 from N8.90, reflecting the dilutive impact of new share issuances. The Board proposed an interim dividend of N0.25/share, a sharp decline from N2.00/share paid in the comparable period, translating to a dividend…

Zenith Bank Increases Interim Dividends by 25%, Profit Slides Zenith Bank Plc posted N532 billion as net profit for the first half of 2025, according to the audited financial statement submitted to the Nigerian Exchange. The group reported a 7.9% year on year decline in profit after tax which settled at N532.18 billion from N578.00 billion in the comparable period in 2024. Hence, earnings per share dropped to N12.95 as against N18.4 the bank delivered in the comparable period in 2024. According to analysts, the bank’s earnings momentum in H1-25 was constrained by weaker trading income and significantly higher credit…

Nigerian Eurobond Yield Rises Amidst Evolving Market Conditions The Nigerian Eurobond market concluded on a bearish note, with the average yield increasing marginally by three basis points (3 bps) to 7.77%, reflecting weakened investor confidence amid evolving market conditions. Nigeria’s disinflation that shifted the real interest rate to 7.38% had fuelled increased demand for Nigeria’s US dollar-denominated bonds in the international market. The country’s borrowing cost is anticipated to decline in reaction to economic reforms and rising investor confidence. Markets anticipate some portfolio adjustments by offshore investors as the U.S. slashed rates on Wednesday. African Eurobonds traded mixed to bearish…

Rates Mix as Inflows to States Boost Liquidity to N2.87trn The short-term benchmark interest rates closed on a mixed note after the Central Bank of Nigeria (CBN) statutory payments to states lifted the liquidity level in the financial system. The interbank market maintained strong liquidity following additional CBN inflows to states, keeping rates stable at 26.5%. Data releases by AIICO Capital Limited highlighted that the market saw an inflows of N410 billion, which lifted liquidity to N2.866 trillion from N2.456 trillion the previous day, Banks continue to place funds at the CBN Standing Deposit Facility in the absence of significant…

Nigerian Bonds Yield Rises on Portfolio Reshuffles The Nigerian government bonds sell pressure extended due to some portfolio rebalancing efforts by wealth managers in the secondary market. The market is projected to respond to lower spot rates offered to investors at the primary market auction for Treasury bills by the Central Bank. The authority cuts spot rates on Treasury bills across standard tenor, and one year bills was priced down below 17%. Investors see the downward rates repricing as signal the monetary policy committee could begin policy easing as real interest rate surged to 7.38% following August disinflation. The market…

CBN Cuts Rates on Nigerian Treasury Bills, Rejects N1.25trn The Central Bank of Nigeria (CBN) cuts spot interest rates on Nigerian Treasury bills across standard tenors at the primary market auction on Wednesday. The Apex Bank opened N290 billion worth of treasury bills for investors’ subscription across 91-day, 182-day, and 364-day maturities. Investors responded to the auction strongly, with about N1.6 trillion in total bids staked across the standard tenors at the midweek auction. The market response was influenced by excess liquidity in the financial system, and disinflation played a strong role in spot rates repricing. The CBN results revealed…

Nigerian Exchange Market Cap Rises by N310bn to N89.87trn The Nigerian Exchange (NGX) market capitalisation rose by about N310 billion to N89.87 trillion on Wednesday due to bargain hunting in some mid, and large cap stocks. Trading activities in the local bourse closed on positive territory, with key performance indicators advancing by 35 basis points. The local bourse rebounded came after the previous day’s loss, buoyed by cherry-picking activities in some medium and large-cap stocks, such as ARADEL, INTBREW, and DANGCEM among others. Investor sentiment was largely shaped by ongoing reactions to recently released macroeconomic reports, which influenced trading decisions…

Naira Falls as USD Demand Surges, Foreign Reserves Hits $41.9bn The Nigerian local currency, the naira, pulled back against the US dollar (USD) at the official window on Wednesday due to a foreign currency liquidity shortfall at the official window. The exchange rate depreciated as the Nigeria Foreign Exchange Market (NFEM) witnessed an imbalance between the US dollar volumes supplied and aggregate demand from eligible market participants. Spot FX rate at the official FX market settled at N1494 per dollar, from N1484 the previous day. Updated FX data from the Central Bank of Nigeria (CBN) showed that the naira touched…