June 2026, Edition 1
The short week ended with a broadly constructive but selectively cautious tone across Nigerian financial markets. Fixed income traded mixed, with the T-bills segment maintaining a mild bullish bias as yields eased on steady demand, while FGN bonds remained range-bound and flow-driven, closing largely unchanged amid alternating buying and selling pressures. Liquidity conditions stayed elevated, as the Central Bank of Nigeria (CBN) continued active sterilization through OMO operations, reinforcing strong demand for short-dated instruments. In equities, the NGX All-Share Index consolidated after early strength, reflecting intermittent profit-taking during the holiday-shortened session. Macro fundamentals remained supportive, with the National Bureau of Statistics (NBS) reporting 3.89% Q1 2026 GDP growth driven by non-oil expansion, while FX stability persisted within the ₦1,370 band. Week-on-week, Brent crude and West Texas Intermediate (WTI) closed at $91.20/bbl. (-6.94%), and $87.20/bbl. (-4.18%), while gold at $4,560.25/oz (+0.23%).
Interbank liquidity remained strong through the week, opening at ₦3.84trn surplus, peaking at ₦6.02trn on Friday (+56.65% WTD). Money market rates were stable, with the Open Repo Rate (OPR) at 22.00%, the Overnight rate (O/N) at 22.19%. In the FX market, the Naira traded between $/₦1,372.00 and $/₦1,377.00, before closing at $/₦1,373.25 on Friday.
The fixed-income secondary market closed largely positive; T-bills maintained a mildly bullish tone as yields eased marginally, supported by demand across key mid-curve maturities despite some profit-taking at the long end. OMO bills maintained the upper-19% to low-20% range. Conversely, the FGN bond market closed bearish, with average yields rising ~2, 5, and 8bps for the short, mid-, and long tenor papers amid heightened selling pressure and strategic repositioning across select maturities, although pockets of buying interest persisted. While, the Eurobond market remained firmly bullish, with average yields declining 17bps to 6.78% as sustained demand and strong investor appetite drove broad-based yield compression across the curve.
Liquidity Pulse: The OMO auction held on May 29, 2026, indicated a persistent liquidity overhang with offers being oversubscribed by 1.13x, 2.39x, and 8.63x for the 11-, 39-, and 102-day bills, respectively. The 11- and 103-day bill were sold with stop rates higher at 21.80%(+23bps) and 20.37%(+40bps). Despite the strong subscription, total sales declined by 47.3% from the previous auction. Ultimately, the outcome of the auction highlighted the CBN’s effective use of rate control to mop up system liquidity, maintain investor interest, and reinforce its broader anti-inflationary mandate.
AUCTION DATE | TENOR | OFFER (₦‘B) | BIDS (₦‘B) | TOTAL SALE (₦‘B) | STOP RATES (%) | PREVIOUS TENOR STOP RATES (%) |
| 11-DAY | 200.00 | 225.00 | 220.00 | 21.8000 | 21.5700 |
39-DAY | 200.00 | 558.00 | 0.00 | 0.00 | 20.2000 | |
102-DAY | 200.00 | 1,726.50 | 1,724.50 | 20.3700 | 19.9700 |
According to the National Bureau of Statistics (NBS), Nigeria’s real GDP grew by 3.89% year-on-year (YoY) in Q1 2026, improving from 3.13% recorded in Q1 2025 and 4.07% YoY in Q4 2025, reflecting stronger economic momentum driven largely by the non-oil economy. The non-oil sector expanded by 3.94% and remained the dominant growth driver, contributing 96.08% to total GDP, while agriculture recorded a significant growth rebound to 3.15% from 0.07% in the corresponding period of 2025. The services sector maintained its position as the largest contributor to economic output, accounting for 57.73% (+23bps) of GDP with a 4.31% growth rate, slightly below the 4.33% recorded a year earlier, while the industrial sector improved marginally to 3.50% from 3.42% with the information and communication technology (ICT) segment marked the fastest growing by +10.98% YoY in Q1 2026, from 7.40% YoY in Q1 2025, and 7.55% YoY in Q4 2025. The oil sector grew by 2.57% YoY and 1.87% Q1 2025, amid its declining contribution of 3.92% from 3.97% in Q1 2025 to total GDP, reinforcing the continued structural shift toward broader non-oil economic activity despite a softer performance relative to Q4 2025.
The Naira continued to maintain the $/₦1,370.00 band during the week in the Nigerian Foreign Exchange Market (NFEM), with a gain of ₦1.66 (-0.12%) week-to-date (WTD), and week-on-week appreciation of ₦2.20 (-0.16%) and closed at $/₦1,373.25 (WoW ₦1,375.46). Foreign reserves improved to $49.34bn (+0.92%) as of May 26, 2026, with blocked funds easing to $684.04m (-0.61%), while the blocked reserve ratio eased at 1.39%. Indicative of relatively stable FX conditions amidst external pressures.
The Nigerian equities market ended the short week on a mixed but broadly resilient note, with the NGX All-Share Index reflecting a mixed but generally consolidative tone, closing at 251,125.02 on Monday alongside a market breadth of 1.21x, indicating stronger advancing pressure relative to declining stocks, before easing to 249,738.84 on Tuesday as breadth weakened to 0.55x, signaling a shift toward negative participation and selective profit-taking. On Friday, ASI rebounded and closed at 250,385.70 with market breadth at 0.79x (-0.29% WtD) by Friday, and +2.27% WoW, with YtD at +60.90%, reflecting alternating profit-taking and cautious positioning with mixed sectorial performance. Market capitalization improved from ~₦161.62trn to ₦162.04trn.
In the week ended May 29, 2026, global financial markets transitioned from holiday-thinned trading into a data-driven environment following market closures in the U.S. (Memorial Day) and the U.K. (Spring Bank Holiday). Investor sentiment was shaped by softer U.S. growth and firmer inflation data, as the second estimate of U.S. Q1 2026 GDP was revised downward to an annualized 1.6% from 2.0%, while April PCE inflation accelerated to 3.8% YoY from 3.5% in March, and Core PCE rose 0.2% MoM to 3.3% YoY. These developments reinforced concerns that inflationary pressures remain elevated despite moderating economic growth. Equities closed the week: the Nasdaq Composite led the Friday rally, 26,972.62 (+2.39%), while the S&P 500 was at 7,580.06 (+1.40%), and the blue-chip Dow Jones Industrial Average at 51,032.46 (+0.90%). Across Europe, Germany’s DAX 40 closed at 25,104.70 (+0.87%) while the FTSE 100 eased at 10,409.28 (-0.54%), while Asian markets finished on a mixed note led by Japan’s Nikkei 225 advancing by 4.72% to a close of 66,329.50, China’s Shanghai Composite Index at 4,068.57 (-1.08%), Hong Kong’s Hang Seng Index decline at 25,182.39 (-1.65%), and South Korea’s KOSPI up at 8,476.15 (+8.01%). Against this backdrop, global markets remained sensitive to shifting monetary policy expectations, geopolitical developments, and energy price movements. U.S. Treasury yields eased modestly during the week as investors weighed weaker growth against persistent inflation, while risk assets found support from continued corporate earnings resilience and optimism surrounding artificial intelligence-related investment themes. Overall, the week reflected a delicate balance between slowing growth, sticky inflation, and evolving policy expectations across major economies.
African markets were anchored by the African Development Bank Group Annual Meetings in Brazzaville, where policymakers and investors advanced discussions on large-scale development financing, including Congo Basin climate investment and the “Mission 300” electricity access initiative. Equity markets across the continent were broadly stable with a mild positive bias, as Kenya’s NSE maintained strong liquidity in large-cap stocks and South Africa’s FTSE/JSE All Share Index traded range-bound around 114,000–115,000 amid earnings-driven rotation and selective positioning despite the SARB raising its benchmark rate by 25bps to 7.00% at its May 2026 Policy meeting, a response to rising inflation driven by higher fuel and transport costs, while maintaining a cautious stance amid persistent inflation risks, weaker growth prospects, and elevated global uncertainty. All while North African markets held steady on improving foreign participation. Sentiment remained sensitive to global oil price volatility driven by US–Iran negotiations over the Strait of Hormuz, which shaped inflation and risk expectations. The Ebola outbreak in eastern DRC and Uganda, led to a WHO Public Health Emergency of International Concern with over 900 suspected cases, in addition to a localized health and mobility risk factor. Generally, the week reflected cautious stability, supported by development-finance momentum but constrained by external geopolitical and health uncertainties.
Crude oil prices recorded a sustained bearish trend throughout the week as improving prospects of a potential US-Iran agreement and a possible reopening of the Strait of Hormuz weighed heavily on market sentiment. Brent crude declined from $97/bbl. on Monday to $90.89/bbl. on Friday, while WTI crude fell from about $91/bbl. to $87.09/bbl. over the same period, extending sharp monthly losses of nearly 15% and 12% respectively. The decline was driven by expectations that easing geopolitical tensions could restore disrupted global energy flows and increase supply availability, despite intermittent military clashes and unresolved issues surrounding Iran’s nuclear program and shipping control through the strait of Hormuz. Meanwhile, gold prices experienced heightened volatility but generally trended lower as falling oil prices eased inflation fears and reduced safe-haven demand. Bullion moved from near $4,600 per ounce at the start of the week, dropped to around $4,400/oz midweek, its lowest level in nearly two months, before stabilizing near $4,541/oz on Friday as cautious optimism over diplomatic progress between Washington and Tehran tempered concerns over prolonged inflationary pressures and aggressive monetary tightening.
Liquidity is expected to remain one of the key market drivers, with continued preference for short-dated bills as the CBN sustains liquidity management through OMO operations, keeping bond yields range-bound and supporting firm T-bill demand on defensive positioning. Equities are likely to consolidate cautiously after recent gains as investors await clearer earnings and policy direction, while FX stability should persist in the near term, supported by improved reserves and steady inflows, despite external risks from global rates and oil dynamics. The new month, June 2026, is also poised for significant liquidity inflows of over ₦11.82trn, comprising ₦215.13bn in FGN bond coupons, ₦422.39bn, and ₦10.59trn in maturing NTBs and OMO maturities, respectively, marking a key half-year cycle expected to influence market positioning and reinforce a broadly orderly but reactive trading environment. In addition to the ₦15.00bn FGN 14.50% Jun. 2026 Green Bond Redemption. With an already saturated system, investors face a growing reinvestment risk. Whether they accept prevailing market rates, demand higher yields, or rotate into alternative assets remains the key question. Time will tell.
