Money Markets
Liquidity in the system started much higher today, driven by significant Remita inflows from Friday. Consequently, interbank rates saw a slight decline, with the Overnight Policy Rate (OPR) recorded at 26.50%, while the Overnight Rate (O/N) fell by 3 basis points to 27.14%. However, during the day, the CBN conducted an OMO auction, offering ₦500 billion across two maturities while receiving subscriptions amounting to ₦931.32 billion. Additionally, the CBN engaged in CRR activities in the market to reinforce its tightening monetary policy approach.
Outlook: We expect interbank rates to continue to trade around the same levels.
Treasury Bills
The Treasury Bills market saw some activity on the recent 1-year NTB (25 Dec 2025), though there were few offers available to meet demand. Additionally, the CBN conducted an OMO auction yesterday, offering and selling ₦500 billion across two maturities, 358-day and 365-day. Total subscriptions reached ₦931.32 billion. The stop rates were set at 23.93% and 23.95%, respectively, compared to the previous auction rates of 23.95% and 23.98%. Overall, the average mid-rate for the benchmark NTB papers closed at 23.12%.
Outlook: We expect a calm session today, as participants will be focusing on housekeeping activities.
FGN Bonds
The local bonds market had another quiet session, with most interest directed toward the February 2031 and May 2033 papers. Overall, the average mid-yield rose by 4 bps to 19.59%.
Outlook: We expect a calm session today, as participants will be focusing on housekeeping activities.
Eurobonds
The Eurobond market experienced a subdued trading session, albeit with a mixed undertone. A limited amount of sideways interest was noted in both Nigerian and Egyptian bonds, while Angola showed some minor weakness. Overall, the average mid-yield for Nigerian bonds remained relatively stable at 9.54%.
Outlook: We anticipate a calm theme today as the participants close out the year.
Nigerian Equities
The Nigerian stock market continued its upward trajectory in the second-to-last trading session of the year, with the NGX-ASI increasing by 99 bps to close at 103,149.35 points, and the market capitalization settling at ₦62.89 trillion. This rise was fueled by significant buying interest in BUAFOODS and MTNN. The year-to-date growth in the ASI has now reached 37.95%. Among the five major indices, three exhibited positive performance, with the Insurance Index leading with a 2.45% gain, while the Banking and Oil & Gas indices experienced declines.
Outlook: We expect the same sentiment to persist.
Foreign Exchange
The NFEM showed stability today with improved liquidity. Transactions occurred between $/₦1,533.00 and $/₦1,540.25. Overall, the Naira declined by 13 bps, closing at $/₦1,537.00.
Outlook: We expect the Naira to continue trading within a similar range.
Commodities
Oil prices increased slightly, with Brent crude priced at $74.39 per barrel and WTI at approximately $71.16. Conversely, gold prices fell in low trading activity as investors awaited new drivers, including upcoming U.S. economic data that might impact the Federal Reserve’s interest-rate predictions for 2025, as well as policies from incoming President Donald Trump. It traded around $2,603.53 per ounce.
Outlook: We expect geopolitical and macroeconomic factors to continue to affect market sentiment.