Money Market

System liquidity declined despite the FAAC disbursements, as the CBN conducted CRR debit activities yesterday, which reduced liquidity. However, interbank rates eased. The Overnight Policy Rate (OPR) fell by 10 bps to 26.83%, while the Overnight Rate (O/N) dropped by 13 bps to 27.58%.

Outlook: We expect interbank rates to continue to trade around the same levels.

Treasury Bills

The Treasury Bills market experienced a calm session, with only mild interest in the December 2025 papers. However, executed volumes were limited as participants focused on the Christmas holiday. Overall, the average mid-rate for the benchmark NTB papers closed at 23.15%.

Outlook: We anticipate that attention will turn to the NTB auction following the holiday, where the DMO plans to offer ₦332.52 billion across the usual tenors.

FGN Bonds

The local bonds market had another quiet session, with most interest directed toward the February 2031 paper. Overall, the average mid-yield rose by 3 bps to 19.55%.

Outlook: We expect the same sentiment to persist in the interim.

Eurobonds

The Eurobond market had a quiet session, albeit with a bearish undertone, as the festive atmosphere influenced market sentiment. There were very few executed volumes across the African curves. Overall, the average mid-yield for Nigerian bonds increased by 4 bps, closing at 9.55%.

Outlook: We expect mixed sentiments after the holiday.

Nigerian Equities

The Nigerian stock market maintained its upward trend as it headed into the festive season, with the NGX-ASI and market capitalization rising by 82 bps to finish at 102,186.03 points and ₦61.94 trillion, respectively. This increase was driven by strong buying interest in MTNN, NB, and FIDELITYBK. The year-to-date increase in the ASI has now reached 36.66%. All major sectors showed positive results, with the Insurance Index leading the way with a 1.49% rise.

Outlook: We expect the same sentiment to persist after the holiday.

Foreign Exchange

The NFEM demonstrated a degree of stability today, accompanied by enhanced liquidity. Transactions were executed within $/₦1,533.00 to $/₦1,545.00. Overall, the Naira appreciated by 7 bps to close at $/₦1,537.00.

Outlook: We expect the Naira to continue trading within a similar range.

Commodities

Oil prices increased, reversing losses from the previous session, supported by a somewhat optimistic market outlook for the short term, despite limited trading activity ahead of the Christmas holiday. Brent crude was approximately priced at $73.45 per barrel, while WTI was around $70. Meanwhile, gold prices stabilized in light trading as investors anticipated the U.S. Federal Reserve’s interest rate plans and President-elect Donald Trump’s tariff policies, which could influence the metal’s direction next year. It traded at about $2,616.88 per ounce.

Outlook: We expect geopolitical and macroeconomic factors to continue to affect market sentiment.