The reviewed week ended with a broadly constructive but selectively cautious tone across Nigerian financial markets. In the fixed income space, trading remained mildly bearish as Treasury bill yields edged higher on sustained demand and strong auction activity, highlighted by robust long-day bill subscriptions, while OMO operations reflected continued aggressive liquidity sterilisation amid elevated system liquidity. FGN bond yields (2031–2037 maturities) also inched higher, trading above the 17% threshold, with Eurobond yields rising by 1–7 basis points across the curve. Overall, market conditions remained supported by ample liquidity and improving policy visibility; however, investor positioning stayed cautious and duration-selective amid persistent global inflation pressures. In equities, the NGX All-Share Index (ASI) consolidated, reflecting intermittent profit-taking during trading sessions, while FX conditions remained stable within the ₦1,360 range. Commodities closed week-on-week (WoW), with Brent crude and West Texas Intermediate (WTI) at $92.92/bbl. (+1.88%) and $89.91/bbl. (+3.10%) respectively, while gold declined to $4,342.40/oz (-4.78%).
Interbank liquidity remained robust throughout the week, opening at a ₦4.57 trillion surplus, peaking at ₦5.33 trillion mid-week, before closing Friday at ₦4.79 trillion (+4.74% WTD). Money market rates were stable, with the Open Repo Rate (OPR) at 22.00% and the Overnight (O/N) rate at 22.10%, slightly lower by 0.14 percentage points. In the FX market, the Naira traded within a range of $/₦1,350.00 and $/₦1,373.50, before settling at $/₦1,362.21 at the close of the week.
The fixed income secondary market traded on a broadly bearish note over the week, as Treasury bill yields rose marginally by about 6–8 basis points on sustained demand across the curve, supported by improved sentiment following auction outcomes and consistent buying interest in select maturities, while OMO bills remained steady in the upper-19% to low-20% range, reflecting surplus liquidity and sustained investor appetite. FGN bond yields increased, breaching above 17% into the mid-17% range, as activity remained concentrated at the short end, though demand for longer tenors stayed subdued, reinforcing cautious positioning despite selective interest. In contrast, Eurobonds traded largely range-bound with a mild bullish bias, as yields eased by about 1–7 basis points across the curve, led by the 2027 paper (-7bps) and marginal declines of 1–2bps in other maturities, reflecting steady investor demand and limited directional volatility across tenors.
Liquidity Pulse: The Central Bank of Nigeria’s (CBN) OMO auction on 2 June 2026, reflected strong liquidity absorption and sustained investor demand for short- to mid-day instruments. Total subscriptions stood at ₦3.28 trillion against ₦600 billion on offer, translating to a bid-to-offer ratio of about 5.5x, with demand heavily skewed toward the 133-day tenor, thereby attracting over 12.4x subscription and accounting for more than 75% of total bids. The CBN allotted ₦3.04 trillion across the three maturities, marking an increase of 156% above the previous auction and well above the initial offer, reinforcing its aggressive liquidity management stance. Stop rates were mixed across the curve: the 7- and 35-day eased by 26bps and 17bps, respectively, while the 133-day edged higher to 20.02% (+5bps), indicating firmer pricing at the long end. Despite an OMO maturity of ₦2.73 trillion this week (indicating 11.4% increase in outflows), system liquidity remained elevated but moderated to approx ₦4.23 trillion, highlighting persistent excess liquidity and continued CBN sterilisation efforts.
AUCTION DATE | TENOR | OFFER (₦‘B) | BIDS (₦‘B) | TOTAL SALE (₦‘B) | STOP RATES (%) | PREVIOUS TENOR STOP RATES (%) |
| 7-DAY | 200.00 | 179.00 | 169.00 | 21.5400 | 21.8000 |
35-DAY | 200.00 | 614.43 | 465.00 | 21.4000 | 20.5700 | |
133-DAY | 200.00 | 2,481.80 | 2,408.80 | 20.0200 | 19.9700 |
The first Treasury Bills (NTB) auction of the month, held on 3 June 2026, mirrored sustained liquidity conditions and strong investor appetite, with demand heavily concentrated on the 364-day bill, which attracted about 2.4x the amount offered and accounted for nearly 90% of total subscriptions. Overall subscriptions reached approximately ₦2.16 trillion against the ₦1.0 trillion offered (2.2x bid-to-offer ratio), prompting the issuer to increase allotment to ₦1.46 trillion, signalling active liquidity absorption. While the 91-day bill recorded healthy demand at 1.31x subscription, the 182-day tenor was undersubscribed at 0.84x, reflecting selective investor positioning. Stop rates increased across all maturities to 16.05% (+10bps), 16.19% (+5bps), and 16.35% (+20bps) for the 91-, 182-, and 364-day bills, respectively, with the sharp rise at the long end signaling investors’ continued preference for long duration while demanding higher compensation amidst expectations of a prolonged restrictive interest-rate environment.
AUCTION DATE | 03-06-2026 | 03-06-2026 | 03-06-2026 |
MATURITY DATE | 03-09-2026 | 03-12-2026 | 03-06-2027 |
TENOR | 91-DAY | 182-DAY | 364-DAY |
OFFER (₦) | 100,000,000,000 | 100,000,000,000 | 800,000,000,000 |
SUBSCRIPTION (₦) | 131,180,695,000 | 83,550,438,000 | 1,946,088,147,000 |
ALLOTMENT (₦) | 131,180,695,000 | 82,979,888,000 | 1,243,115,301,000 |
BID RANGE (%) | 15.0000 – 16.0500 | 15.5000 – 17.0000 | 15.5000 – 22.0000 |
STOP RATES (%) | 16.0500 | 16.1900 | 16.3500 |
PREVIOUS STOP RATES (%) | 15.950 | 16.1400 | 16.1490 |
Updates: Recently, the CBN launched the Nigeria Payment System Vision (PSV) 2028, a comprehensive roadmap targeting 95% financial inclusion by 2028 and the integration of an estimated 50 million additional Nigerians into the formal financial system. The plan focuses on deepening digital payments, reducing cash dependency, strengthening payment infrastructure, and positioning Nigeria as Africa’s leading payments hub, with key targets including cutting cash outside the banking system to below 40%, deploying over 10 million QR-code and tap-to-pay acceptance points, in addition to reducing fraud losses below 0.001%, all through AI-driven systems and enhanced identity verification, alongside reforms such as open banking, faster payments, and improved cross-border transactions under AfCFTA. In parallel, the CBN, in collaboration with Nigeria Inter-Bank Settlement System (NIBSS), launched the Non-Resident Bank Verification Number (NRBVN) platform to enable Nigerians in the diaspora to obtain their BVN remotely, removing the need for physical presence in Nigeria and easing access to banking services by reducing long-standing administrative and geographic barriers to financial inclusion.
Nigeria attracted $10.37bn in capital importation in Q1 2026, reflecting a strong 83.83% year-on-year increase and 60.97% quarter-on-quarter growth, signalling renewed foreign investor participation in Nigerian financial assets. Inflows were heavily skewed toward portfolio investment ($9.86bn, 95.09%), while FDI remained marginal at $135.08m (1.30%), underlining continued preference for short-term, yield-driven instruments over long-term productive investment. The banking sector dominated inflows at $7.55bn (72.79%), followed by financing activities ($2.43bn), with money market instruments ($6.50bn) and bonds ($3.23bn) accounting for the bulk of portfolio allocations. The UK ($5.08bn) and US ($3.18bn) were the largest sources of capital, largely intermediated through Standard Chartered Bank ($4.41bn) and Stanbic IBTC ($2.78bn). Overall, the data highlights a strong foreign appetite for Nigerian financial markets, besides a continued skewed preference favouring portfolio flows over long-term direct investment.
Dangote Petroleum Refinery began construction of a second crude processing unit at its Lekki facility, adding 700,000 barrels per day (bpd) of capacity and lifting the total output to about 1.4 million bpd by the end of 2028, positioning it among the world’s largest refining complexes. The expansion builds on the existing 650,000 bpd refinery, which has already enabled Nigeria to become a net gasoline exporter and a significant supplier of jet fuel to Europe, with exports reaching around 100,000 bpd at peak, about half of which went to Europe amid global supply disruptions. The increased capacity is expected to further strengthen Nigeria’s refining self-sufficiency, deepen Dangote’s role in global fuel trade, and expand its trading footprint, with potential additional projects in East Africa that could push total group capacity close to 2 million bpd, elevating it into the top tier of global refining players.
The Naira eased below the $/₦1,370.00 band during the week in the Nigerian Foreign Exchange Market (NFEM), with a gain of ₦4.58 (-0.34%) week-to-date (WTD), and ₦11.04 (-0.80%) WoW, before closing at $/₦1,362.21 (WoW ₦1,373.25). Foreign reserves strengthened, crossing the $50bn threshold for the first time since March 10, 2026, to stand at $50.04bn as of June 4, 2026, reflecting a 0.92% increase. In parallel, blocked funds declined to $674.06m (-1.06%), with the blocked reserve ratio easing to 1.35%, indicating relatively stable foreign exchange conditions despite ongoing external pressures.
The Nigerian equities market sustained a broad-based correction through four trading sessions before closing the week positive, with the NGX ASI declining cumulatively by 1.69% WTD and -2.80% WoW to close at 243,379.63 points, trimming year-to-date (YTD) to 56.40%. Market sentiment remained predominantly bearish as profit-taking persisted across heavyweight counters, including BUACEMENT, FIRSTHOLDCO, MTNN, ARADEL, ZENITHBANK, and WAPCO. Despite intermittent spikes in trading activity, particularly on Monday and Wednesday, market breadth remained weak, reflecting a decline in risk appetite and widespread sell-offs across sectors. Market capitalization declined from ~₦160.22trn to ₦157.02trn. The Banking, Insurance, and Industrial Goods indices recorded notable pressure during the week, while Oil and Gas stocks weakened sharply. Overall, the market’s performance was suggestive that investors are locking in gains following the strong rally recorded earlier in the year, while positioning cautiously amid valuation concerns and evolving liquidity conditions.
The global financial market for the week ended June 5, 2026, was characterised by a sharp tech-led correction, breaking recent record highs, as softer-than-expected corporate guidance from major chipmakers triggered widespread anxiety over AI and semiconductor valuations, dragging Asian equities lower and leaving Wall Street mixed. U.S. nonfarm payrolls rose by 172,000 in May 2026, slightly below April’s revised gain of 179,000, while unemployment remained steady at 4.3%, reflecting a modest cooling in job growth despite continued labour market stability. WoW, equities closed lower: the Nasdaq Composite at 25,709.43 (-4.68%), S&P 500 at 7,383.74 (-2.64%), and the blue-chip Dow Jones Industrial Average at 50,866.78 (-0.32%). Across Europe, Germany’s DAX 40 closed at 24,759.05 (-1.38%) while the FTSE 100 eased at 10,368.05 (-0.40%). Asian markets finished low, except Japan’s Nikkei 225 at 66,588.12 (+0.39%), China’s Shanghai Composite Index at 4,027.74 (-1.00%), Hong Kong’s Hang Seng Index at 24,961.95 (-0.88%), and South Korea’s KOSPI at 8,160.59 (-3.72%). Adding to macro crosscurrents, Eurozone inflation rose to 3.2% in May, meeting expectations but strengthening anticipation of a 25-basis-point ECB rate hike given a 94% market probability of tightening. The inflationary pressure was primarily driven by a 10.9% surge in energy prices linked to the Iran conflict, alongside a slight edge higher in services inflation to 3.5%, though domestic experiences varied widely, with Germany easing to 2.7% while France and parts of Eastern Europe saw increases above 5%. Ultimately, despite moderating food and tobacco costs and Brent crude softening toward $92 per barrel on Middle East ceasefire hopes, Europe’s structural dependence on imported energy kept inflation firmly above the ECB’s 2% target, forcing fixed-income investors to price in a gradual, persistent uptrend.
African markets recorded notable fiscal and monetary developments across major African economies. On June 4, the Bank of Ghana (BoG) implemented a uniform Cash Reserve Ratio (CRR) of 20% for all universal banks, replacing the previous tiered framework and requiring reserves to be held entirely in Ghana cedis as part of efforts to tighten liquidity conditions and strengthen monetary policy transmission and cedi stability. On the same day, Egypt’s EGX30 Index gained 0.17% to close at 52,652.53 points, extending its YTD to 25.8%, supported by sustained domestic buying interest that absorbed foreign investor profit-taking. During the week, Kenya’s National Assembly advanced fiscal planning for the 2026/2027 financial year, approving revenue and expenditure estimates with spending priorities focused on healthcare, education, and social protection programmes. The week concluded on June 5, 2026, with a major sovereign credit development as Fitch Ratings upgraded South Africa’s Long-Term Foreign and Local Currency Issuer Default Ratings to ‘BB’ from ‘BB−’ with a Stable Outlook, its first sovereign upgrade of the country in nearly 21 years, citing prudent fiscal management and progress in fiscal consolidation despite weak economic growth, domestic and external shocks, further noting that South Africa’s debt trajectory had improved beyond earlier expectations due to stronger revenue collection and fiscal discipline.
Global commodities traded within wide ranges during the first week of June 2026 as geopolitical developments and inflation expectations drove market volatility. Gold moved within a $4,442/oz –$4,502/oz range, recovering briefly above $4,500/oz before ending the period lower at around $4,463/oz, reflecting weaker safe-haven demand amid expectations of higher-for-longer interest rates. In contrast, oil prices experienced sharp swings, with Brent trading within a $94–$98/bbl. range and WTI within a $93–$96/bbl. range. Prices initially rallied on concerns over potential supply disruptions linked to US–Iran tensions and uncertainty around the Strait of Hormuz, but later retraced, as ceasefire discussions and renewed diplomatic optimism emerged. Despite the late-week pullback, oil benchmarks remained volatile, highlighting persistent geopolitical risk premiums and continued inflation concerns.
The near term is expected to remain highly liquid, with continued preference for short-day bills as the CBN sustains liquidity management through OMO operations, keeping bond yields range-bound, supporting firm T-bill demand on defensive positioning. Equities are likely to moderate further, while FX stability persists, supported by improved reserves and steady inflows, despite external risks from volatile energy prices. Expected liquidity inflows of over ₦1.21trn, comprising ₦16.09bn in FGN green bond coupon and bond redemption for 14.50% Jun 2026, ₦144.38bn, and ₦1.22trn in maturing NTB and OMO maturities, respectively, all of which are anticipated to influence market positioning and reinforce a reactive market.
By: Sandra A. Aghaizu
Across the savannah of markets,
currencies learned the discipline of rain.
Ghana tightened the riverbanks,
guiding liquidity back to its channel.
In Egypt, equities rose like morning light,
finding buyers where others took profit.
Kenya planted tomorrow’s budget,
seeds of health, learning, and care.
And South Africa, after seasons of doubt,
earned a brighter mark in the ledger of trust.
The continent turns another page,
where fiscal winds meet patient capital,
and growth waits quietly beneath the soil.
