Author: Julius Alagbe

Yield on Nigerian Treasury Bills Falls as CBN Cuts Rates The average yield on Nigerian Treasury bills fell to 17.67% as investors continue to take positions in fixed interest securities amidst reduced spot rates offered at the primary market auction last week. The Central Bank of Nigeria (CBN) offered bills worth N290.00 billion at the primary market auction conducted last week across standard tenors. The offer size was split into N50.00 billion for Nigerian Treasury bills maturing in 91 days, N20.00 billion for the 182 days, and N220.00 billion for the 364 days bills. In their separate notes, investment banking…

Market Wrap: Nigerian Exchange Expands by N1.81trn to N85.06trn The Nigerian Exchange (NGX) expanded by N1.81 trillion to close at N85.06 trillion week on week due to sustained bargain hunting in the local bourse. Stock market activities surge as investors’ confidence remained strong across key sectoral indexes, lifting year-to-date return above 30% The domestic equities market sustained its bullish momentum as investors doubled down on risk assets, largely buoyed by robust corporate earnings and declining yields in the fixed income and money markets. Investment analysts at Cowry Asset Limited said the sharp drop in Treasury bill yields at the midweek…

Naira Closed at  N1,534.72 as FX Pressure eased The Naira closed the week on a positive note, gaining 4.52 kobo against the U.S. dollar at the official market on Friday. The local currency exchange rate popped as pressure from foreign currency demand eased at the official market. According to the latest figures from the Central Bank of Nigeria, the Naira traded at N1,534.72 per dollar. The figure represents a modest gain of 0.05 per cent on Thursday, when it was valued at N1,534.79 to the dollar. The Nigerian forex market trended on the FX support provided by the Apex Bank…

Euro Stabilises at $1.1750 as ECB Pauses on Rates Cut The Euro stabilised against the US dollar during early trading hours in the global forex market as the European Central Bank (ECB) paused rate cuts. The market has started to digest the European Central Bank decision to pause rates cutting amidst trade uncertainties and cheaper imports. After eight cuts, ECB hit pause on its rate-cut cycle on Thursday. The decision to hold the key deposit rate at 2% matched consensus given that inflation has settled at comfortable levels—the -2% target. The decision endsseven straight cuts as the central bank deems…

Rates Crash as FAAC Inflows Boost Liquidity in Banking System The short-term interest rates benchmark crashed as federal allocations and coupon payments boosted the liquidity level in the banking system. The market ended the trading session at N831 billion as a sequence of inflows shifted the money market liquidity condition. Money market data showed that the banking system’s N349.20 deficit was upturned due to FAAC inflows and coupon payments, causing the financial system liquidity to improve significantly by N1.18 trillion. Market reports obatined highlight that the banking system opened with credit of N773.22 billion. Interbank rates (NIBOR) declined across all…

NGX Crossed N84trn as Equity Investors Gain N406bn The Nigerian Exchange (NGX) crossed N84 trillion in market capitalisation as equity investors portfolio value increased by more than N406 billion. The stock market extended its bullish run on Thursday, as the NGX All-Share Index (ASI) rose 0.48% to 133,199.99 points, lifting year-to-date returns to 29.41%. Market capitalisation surged by ₦406 billion to close at ₦84.26 trillion as bargain hunting heated up as investors positioned themselves in fundamentally sound stocks amidst corporate earnings releases. Today’s market uptrend was fueled by sustained buying interest in medium- and large-scale stocks across all major sectors,…

Nigeria is Open for Stablecoin Business, SEC DG Says Dr Emomotimi Agama, Director-General of the Securities and Exchange Commission (SEC) says Nigeria is ready for stablecoin businesses that comply with the country’s regulations. He said this on Thursday at the Nigeria Stablecoin Summit held in Lagos and organised by the Africa Stablecoin Network. While delivering his keynote address titled “Building a Regulatory Framework for Stablecoin Innovation: The Nigerian Perspective”, Agama told stablecoin operators that stablecoin regulation is for the nation’s development. He said, “When the history books document Africa’s financial revolution, today will be remembered as the moment we moved…

Airtel Africa Grows Profit by 408% as Data Revenue Spikes Airtel Africa’s profit after tax grew by 408% year-on-year to $156 million in Q1 from $31 million in the prior period in 2024, according to its regulatory filing in the Nigerian Exchange amidst a 34.1% surge in data revenue under reported currency. The telecom company said its prior period was significantly impacted by derivative and foreign exchange losses, primarily in Nigeria, while the current period benefitted from a $22 million gain largely arising from the Central African franc (CFA) appreciation during the quarter. Hence, basic earnings per share of 3.4…

Naira Falls against US Dollar, Official, Black Market Rates ‘Tango’ The naira fell against the dollar at the Nigerian Foreign Exchange Market (NFEM), reflecting a moderate pressure from eligible corporate FX demand. According to CBN update, the naira dipped by 38 kobo to N1535.61 per dollar to remain relatively liquid and stable amid a modest uptick in FX demand. The pressure on the local currency has eased significantly, and intraday daily movement has been relatively limited, reflecting market confidence that upstreaming greenbacks from the Nigerian market will not be difficult. Data from the CBN revealed that the naira traded within…

Funding Rates Moderated as Banks Slowdown Borrowings Funding rates moderated in the money market as deposit money banks slowed down borrowing spree from the Central Bank of Nigeria (CBN) standing lending facility. Despite the reduced pressures, liquidity levels in the financial system remained constraint in the absence of significant inflows, and Treasury bill auction. According to market report, the banking system liquidity deficit reduced to N349.20 billion after inflows from government bonds coupon. While N29.34 billion coupon payment boost liquidity, market analysts said treasury bills auction settlement will put additional pressure on the funding profile. However, the market is expecting…