The secondary market witnessed mild adjusting movement due to non-triggering factors such as auctions or events. Bond yields was largely a mix of flat and slightly positive movement (majorly 31s, 33s, 34s, 35s) in mid-to high-16% level. Bills moved within the high-15% to low-20% band with NTBs within the high-15% and 16% band while OMOs traded in a range of 16% to low-20% band. During the week, there was an OMO maturity amounting to ₦993.00bn, increasing the system liquidity to ₦3.62trn. At the money market, positioning stayed constructive with demand for NTBs (Feb-26, May-26, Oct-26, Nov-26, Dec-26,) and OMOs (12-May-26, 19-May-26, 21-Jul-26, 12-Jan-27, 19-Jan-27), as investors moved deliberately across the curve, especially at the long end, signifying a firmer preference favouring short- and long-dated OMO and NTB instruments, balancing yield opportunities with watchful duration extension in a highly liquid financial system.

Nigeria’s currency witnessed a mild decline in the Nigerian Foreign Exchange Market (NFEM), trading from ₦1,345.25 to ₦1,355.42, with a loss of ₦1.16 (-0.09%) and a week-on-week gain of ₦10.78 (+0.79%), closing at ₦1,355.42 (up from ₦1,366.19 the previous week). Intra-week movements reflected a resilient market despite FX pressures, braced by improved liquidity and steady growth in external reserves.

With its external reserves sustaining its upward momentum, rising from $46.59 billion on February 2 to $47.53 billion by February 10, 2026, with a month-to-date gross gain of approximately $936.09 million (+2.01%). Blocked funds increased from $561.03 million to $588.95 million (+4.93%), with an improved blocked reserve ratio of 1.24%, indicating improved FX liquidity, enhanced reserve management efficiency, and continued progress in clearing outstanding obligations.

The recent adjustment by Nigeria’s National Pension Commission (PenCom) to raise equity exposure limits across multiple RSA fund categories is poised to significantly influence the domestic financial market by enhancing liquidity and boosting demand for equities. With caps for RSA Funds I, II, III, and VI increased, most notably from 25–33% to 30–35% for key funds, the move directly addresses prior implementation bottlenecks caused by a shortage of qualifying alternative assets and underutilization of investment limits. By allowing Pension Fund Administrators (PFAs) greater flexibility to deploy long-term retirement capital into equities, the policy is expected to support Nigerian Exchange (NGX) turnover, stabilize valuations, and improve portfolio yields in a high-interest-rate environment. Experts note that pension funds, representing one of Nigeria’s largest institutional pools of investable capital (over ₦26 trillion as of October 2025, with the December 2025 monthly report showing PFA’s equities and govt. securities exposure at approx. 73.9% of the total current net asset value of funds), will likely reallocate portfolios toward higher-return equities and alternative assets, supporting capital market depth while advancing the broader regulatory agenda of diversifying pension portfolios beyond traditional government securities.

The Central Bank of Nigeria’s (CBN) decision to reintegrate licensed BDC operators into the official foreign exchange market with a $150,000 weekly cap per operator is a strategically significant move with multiple implications for market stability and liquidity. By enabling BDCs to source FX directly from authorized dealer banks at prevailing rates, the policy targets a narrowing of the widening gap between official and parallel market rates. The measure is expected to boost liquidity in the retail FX segment, facilitating smoother access for end-users and reducing distortions in pricing, while the accompanying strict Know Your Customer (KYC) reporting, and 24-hour sell-back rules aimed at curbing speculation and prevent hoarding. For the broader financial market, the policy could stabilize the Naira, enhance market depth, and restore confidence in licensed BDCs, many of which faced operational strain since the suspension of FX allocations in 2025, while also improving transparency and compliance across the retail FX ecosystem. Largely, the move combines incremental market participation with strong regulatory oversight, supporting both currency market stabilization and the sustainability of BDC operations.

As the world’s largest single train-oil refinery, known as the Dangote Petroleum Refinery, reached its full nameplate capacity of 650,000 barrels per day (bpd), marking a transformative milestone for Nigeria’s energy, economic, and financial landscape. Operationally, the optimisation of the Crude Distillation Unit (CDU) and Motor Spirit (MS) production block, alongside intensive performance testing, demonstrates the refinery’s engineering reliability and steady-state efficiency, enabling up to 75 million litres of Premium Motor Spirit (PMS) daily for the domestic market. Economically, the refinery’s full operation is projected to reduce Nigeria’s dependence on imported refined products, potentially saving up to an estimated current amount of $10 billion in foreign exchange annually, while generating thousands of direct and indirect jobs and supporting downstream industrial growth in petrochemicals and fertilizers. Impacting the financial markets, the increased domestic supply will reduce import reliance and potentially stabilise fuel prices, improve liquidity in foreign exchange earnings, and strengthen the Naira, while enhancing investor confidence in Nigeria’s energy infrastructure. Broadly, the refinery’s milestone signals a shift toward self-sufficiency, energy security, and GDP growth, positioning Nigeria as a net exporter of refined petroleum products and a regional energy hub, with further upside anticipated from planned capacity expansion to 1.4 million bpd.