Author: Julius Alagbe

CRR Debits Settlement Tightens Money Market Rates Money market rates tightened due to the liquidity squeeze experienced in the banking system at the beginning of the week following banks tax payments and cash reserve ratio (CRR) activities. The Nigerian financial system had opened the week with a sufficient liquidity level after the market closed with a net long position of N460 billion last week. At the close of session on Monday, the settlement of pending cash reserve ratio slammed on some banks by the Central Bank (CBN) for failing to meet loan-to-deposit targets reduced liquidity levels in the financial system.…

Nigerian Treasury, OMO Bills Rally as Supply Tightens This week, trading commenced positively in the secondary market for Treasury Bills and the OMO bills segment, with focus turning to the shorter and middle sections of the yield curve. Investors have been ramping up naira assets to lock in yields amidst expectations that the monetary authority will start slashing the interest rate benchmark as macro indicators begin to improve. The inflation rate has declined for two consecutive months, thus widening the real return on investments while the policy rate remains constant. Fixed income market analysts said in their separate reports that…

Naira Maintains Multi-Week Rallies as FX Inflow Spikes by 74% The naira maintained its multi-week rallies against the US dollar in the currency market, with data showing the foreign exchange inflows into the Nigeria Forex Market (NFEM) rose by approximately 74% last week. The strong volume of US dollars on the supply side kept the local currency exchange upswing despite declining FX sales intervention from the Central Bank of Nigeria (CBN). Last week, the naira appreciated further by N10.67 against the greenback at the official FX market, closing at N1,528.56 per dollar on Friday. The surge was driven by foreign…

Equities Investors Gain N193bn, Banking Index Fuels Rally Equities investors portfolio value soared by about N193 billion at the Nigerian Exchange (NGX) over bargain hunting. The Nigerian equity market commenced the new trading week on a positive note, extending the upward momentum witnessed in the previous week. Key market performance indicators climbed by 0.25% apiece, reflecting renewed investor confidence and sustained buying interest. The positive sentiment was driven by increased demand for large-cap and moderately priced stocks across major market sectors, highlighting optimism about the market’s near-term outlook. Trading details revealed that the market index increased by 305.67 basis points…

BRICS Summit: Tinubu Urges Reforms, More Inclusion for Africa President Bola Tinubu has called for urgent reforms to global systems, urging greater inclusion and fairness for Africa and other emerging economies. Speaking at the 17th BRICS Summit in Rio de Janeiro, he advocated for fairer global financial and healthcare structures. This is contained in a statement issued by Presidential Spokesperson Mr. Bayo Onanuga on Monday. President Tinubu, invited by Brazilian President Lula da Silva, voiced Nigeria’s support for BRICS’ push toward inclusive, just, and collective global development. Nigeria became a BRICS partner country in January 2025, joining Belarus, Bolivia, Cuba,…

Naira Appreciates Across Forward FX Contracts The naira has seen significant appreciation across forward foreign exchange (FX) contracts, driven by investor optimism and improved market liquidity. Last week, the naira appreciated across contracts in the forward FX market, reflecting investors; expectation about the local currency outlook. This upward trend reflects solid market governance and growing investor confidence, with one year forward FX contract appreciating to N1879.61 per dollar, up by 4% week on week. The local currency opened the month of July on a strong note at the Nigerian foreign exchange market (NFEM) after about 4% gain against the dollar…

Nigerian Bonds Rally, Benchmark Yield Falls by 31bps The average yield on Nigerian government bonds fell by thirty one (31) basis points (bps) in the secondary market as investors increased bets on naira assets. Trading activities were heated up over signs of lower bonds supply via primary market auction. Demand was concentrated at the mid to long end of the curve. Bonds buying was supported by ample system liquidity The thin supply from the Debt Management Office (DMO) in the second quarter triggered successive rallies in the secondary market, and then drag yield downward across the curve. This market narrative…

Naira Keeps Gaining Streaks Amidst Rising Hot Money Inflows The Nigerian naira has been on an upward trend for five days in a row in the official market due to the interplay of demand and supply favouring the local currency exchange rate. The Nigerian economy recorded a sharp increase in hot money in the second quarter as foreign portfolio investors drove US dollar volume in the official window—following successive OMO bill auctions. Data obtained from the Central Bank of Nigeria (CBN) showed that the Nigeria foreign exchange market rate (NFEM) for Thursday settled at N1525.82 per dollar, from N1526.15 the…

Nigerian Banks Drive Intraday Momentum in Equities Market The Nigerian Exchange (NGX) is tracking higher sharply during the intraday trading session as investors increase their bets on Nigerian banks. Buying interest in local banks stocks continues to gain momentum ahead of the second quarter earnings release. The local bourse is experiencing a significant rise in value in intraday trading as investors show more confidence in Nigerian banks. Interest in purchasing shares in local banks is growing steadily in anticipation of the upcoming second-quarter earnings announcement. The increased bargain hunting followed a recent assurance given by the Central Bank of Nigeria…

Nigerian Treasury Bills Yield Falls Below 20%, OMO Rate Dips The average yield on Nigerian Treasury bills (NTB) has fallen below 20%—the first time in a long time—as investors continue to ramp up the naira assets in the absence of a midweek primary auction (PMA). For two consecutive weeks, the Central Bank of Nigeria (CBN), through the Debt Management Office (DMO), has not conducted a primary market auction for Treasury bills. This has fueled trading activities in the secondary market, with investors maintaining focus on assets with long durations. Yesterday, the Nigerian Treasury bill market ended the proceeding on a…