Money Market

Interbank market liquidity tightened at today’s opening as funds were allocated to CBN FX settlements. This reduction in available liquidity prompted a modest upward adjustment in benchmark rates, with the Overnight Policy Rate (OPR) rising 9 bps to 26.67% and the Overnight Rate (O/N) increasing by an equal margin to 27.13%.

Outlook: The interbank rate outlook remains stable, supported by the ₦747 billion expected from FAAC’s ₦1.578 trillion allocation approval and the impending ₦83.43 billion FGN Bond coupon payment following the recent committee meeting.

Treasury Bills

Today’s Treasury market session remained quiet as yields extended their downward trend. Trading activity was light across maturities, though the long end saw relatively stronger demand, with the December 2025 and March 2026 bills attracting the most attention. The limited transactions executed were primarily retail-sized, while the benchmark NTB average mid-rate edged 4bps lower to close at 19.50%.

Outlook: The current market sentiment is likely to hold steady through tomorrow’s session, though trading activity may moderate as participants prepare for the Easter holiday.

FGN Bonds

Persistent caution ahead of the Q2 2025 FGN bond issuance calendar resulted in another subdued session, as limited demand for mid and long-dated maturities maintained the average bond mid-yield unchanged at 18.78%.

Outlook: We expect sentiment to persist unchanged tomorrow, albeit with potentially lighter flows.

Eurobonds

The African Eurobonds closed with divergent performance, caught between positive regional developments and shifting global risk appetite. Select sovereigns benefited from stronger commodity prices, while others faced modest selling pressure due to fiscal uncertainties and broader market repositioning. The session concluded with Nigerian Eurobonds settling at an average mid-yield of 10.68%.

Outlook: We anticipate the same sentiment to persist tomorrow.

Nigerian Equities

The Nigerian equities market closed on a negative note as the All-Share Index (ASI) declined by 68bps, trimming YTD gains to +0.90%. ABBEYBDS (+9.99%) led gainers, while IMG (-10.00%) topped the losers’ chart. Market breadth was mixed with 25 gainers and 20 decliners. Activity was led by banking stocks, with ACCESSCORP posting the highest volume (68.2m shares), while GEREGU led in value at N5.14bn. The NGX Banking Index plunged 467bps, primarily driven by sharp markdowns in ZENITHBANK (-3.93%) and GTCO (-1.58%), despite gains in FIDELITYBK (+6.74%), ACCESSCORP (+0.47%), and UBA (+0.48%). The Consumer Goods Index gained 34bps, buoyed by NB (+2.65%), while the Oil & Gas Index dipped 5bps due to OANDO (-0.92%). The Industrial Index closed flat. Value traded rose 26.12% to $8.53m, driven largely by block trades: 5m GEREGU at ₦1,027.40, 20m GTCO at ₦59.00, and 10m NB at ₦32.00.

Outlook: Current sentiment patterns are anticipated to persist unchanged through tomorrow’s trading session.

Foreign Exchange

The Naira continued to strengthen and held steady compared to the previous day’s close, bolstered by increased dollar inflows from local corporates and the central bank. The USD/NGN pair traded within a range of $/₦1,575.00 to $/₦1,620. By the end of the session, the Naira had depreciated by 5 bps, closing at $/₦1,599.7991.

Outlook: The Central Bank is likely to sustain its market stabilization measures in the near term.

Commodities

Oil prices climbed over $1 per barrel on Wednesday due to fresh concerns over global supply after the U.S. imposed new sanctions on Chinese firms importing Iranian oil. Brent crude increased by $1.04, or 1.61%, to $65.71 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 97 cents, or 1.58%, reaching $62.30. Meanwhile, gold prices continued their record-breaking rally, surpassing $3,300 per ounce as investors sought safety amid rising U.S.-China trade tensions and a weakening U.S. dollar. Spot gold surged 3.1% to $3,327.97 an ounce by 1:45 p.m. ET, after earlier touching a new all-time high of $3,332.89. The demand for safe-haven assets remains strong amid heightened geopolitical and economic uncertainty.

Outlook: Should U.S.-China trade tensions ease, the negative pressure on both economic growth forecasts and oil demand projections would diminish significantly.