System Liquidity: Improvement in System Liquidity Pushes Funding Cost Lower by 4bps w/w

Interbank system liquidity remained robust throughout the week, supported by sustained DMB placements at the CBN’s SDF window, alongside OMO maturities and bond coupon inflows, despite the settlement of a ₦1.73 trillion OMO auction. Liquidity opened at a surplus of ₦2.15 trillion, strengthened to ₦3.82 trillion following ₦1.14 trillion OMO maturities, and further improved to ₦3.89 trillion as SDF placements rose to ₦3.67 trillion. Consequently, average funding costs declined by 4bps to 22.63%, with OPR flat at 22.50% and O/N down 8bps w/w.

Treasury Bill: NTB Market Trades Cautiously Across Maturities

The NTB secondary market traded mixed but maintained a bearish tone during the week, despite ample system liquidity. Early-week activity was calm as attention shifted to the OMO PMA, where ₦1.73 trillion was issued across the 162- and 211-day tenors. By midweek, cautious sentiment emerged at the short end, pushing rates on the 5-Mar-26, 12-Mar-26 and 19-Mar-26 bills higher, while long-dated bills softened, with the 19-Nov-26 declining by 37bps. Overall, cautious positioning drove a broad upward repricing, lifting the benchmark yield by 6bps w/w to 16.24%

FGN Bonds: Buying-Interest Resurface in FGN Bond Market, as Yield Compressed by 7bps w/w

The FGN bond market maintained a generally calm but bullish tone, as selective demand outweighed intermittent profit-taking. Trading began cautiously before buying interest resurfaced across short- and mid-tenor instruments, particularly the 2027s, 2028s, 2029s and 2030s, resulting in visible yield compression. Bullish momentum strengthened midweek, supported by demand for select short-, mid- and long-dated bonds, including the 2031s, 2032s and 2053s, despite some sell-offs in the 2026s. Overall, buying pressure dominated, driving a 7bps w/w decline in the average benchmark yield to 16.70%.

Eurobonds: Favorable Economic Indicators Pushes Eurobond Market Higher by 3bps w/w

The African Eurobond market traded firmly over the week, supported by favourable global macroeconomic developments. Early gains were driven by softer U.S. CPI data, which eased inflation concerns and stabilized U.S. Treasury yields, encouraging selective demand for higher-yielding emerging market assets. Sentiment strengthened further after U.S. Q3 GDP growth surprised positively at 4.3%, boosting risk-on appetite and driving moderate yield declines, led by the NIG-NOV-2027 bond. Buying momentum persisted into the latter part of the week ahead of the holiday, resulting in a 3bps w/w decline in the average benchmark yield to 7.04%.

Nigerian Equities: Bellwether Stocks Sustain Market Rally as ASI up 0.97%w/w

The Nigerian equities market closed the week on a positive note, as buying interest dominated across all trading sessions. The All-Share Index gained 97bps to close at 153,539.83 points, while market capitalisation rose by ₦953.35 billion to ₦97.89 trillion. Gains were driven by price increases in small, medium and large-cap stocks, with ALEX and AUSTINLAZ leading advancers. Overall, 44 stocks appreciated, while 36 declined. Sectoral performance was mixed, with Consumer Goods, Banking and Industrial sectors closing positive, while Insurance dipped and Oil & Gas closed flat.

Foreign Exchange: Naira Rebounds by 0.75%w/w Amidst CBN Intervention

The Naira rebounded during the week, appreciating by ₦11.04 per dollar (+76bps week-on-week) in the NFEM, supported by continued CBN intervention. The currency traded within a range of ₦1,431.00 to ₦1,466.00 per dollar, recording appreciation across all three trading sessions. In addition, external reserves recovered from the prior week’s decline, increasing by $20.94 million to $45.24 billion as of December 23.

Commodities: Oil Strengthens, Gold Pauses After Historic Rally

Oil prices strengthened week-on-week, supported by U.S. economic growth and supply risk concerns linked to Venezuela and Russia. Brent crude futures settled at $62.24 per barrel, gaining 1.83% week-on-week, while WTI rose 1.64% to $58.38 per barrel. Gold paused midweek after a historic rally beyond $4,500/oz but still recorded a strong weekly performance, with spot gold rising 4.12% to close at $4,479.64 per ounce.