In his first presidential media chat, President Bola Ahmed Tinubu provided an in-depth perspective on his administration’s reforms, addressing critical issues such as fuel subsidy removal, tax reforms, and anti-corruption strategies. Tinubu justified his reform policies as necessary measures to prevent economic collapse, emphasizing the importance of cutting unsustainable expenditures and managing resources responsibly to secure Nigeria’s future. On tax reforms, he highlighted efforts to expand the tax base and ease the burden on disadvantaged citizens, despite facing significant opposition. Tinubu also outlined a pragmatic approach to combating corruption by addressing systemic issues, such as inadequate wages and lack of social amenities, while introducing initiatives like the Nigerian Education Loan Fund and a new minimum wage. The President expressed confidence in his policies, likening the reforms to painful but essential labour for a brighter future, and reassured Nigerians that his administration’s efforts are already yielding tangible benefits for the nation’s restoration and progress.
Money Market
Market liquidity opened the day at ₦403.83 billion long. The Open Buy Back (OBB) rate and the Overnight (OVN) rate closed at 26.50% and 27.11%, respectively.
We expect rates to hover around current levels.
Treasury Bills Market
The FGN Treasury Bills Market experienced a relatively subdued week as investors looked forward to the auction. On Friday, the Treasury Bills secondary market opened quietly, with attention centered on the NTB auction. Subdued sentiment persisted throughout the session, though some demand emerged at the long end of the OMO curve. At the auction, ₦332.53bn was offered across standard maturities, attracting total subscriptions of ₦663.18bn, with the full amount sold. Stop rates for the 91-day and 182-day tenors remained unchanged at 18.00% and 18.50%, respectively, while the 364-day tenor rose by 10bps to close at 22.90%. Week-on-week, the average benchmark yield declined by 12bps to 25.51%
We expect the result.
FGN Bond Market
The FGN bond market opened quietly with minimal early trading activity as participants awaited the outcome of the NTB auction. As the session progressed, improved offers emerged for mid-dated maturities, particularly the February 2031 bond. Bid/offer rates for the 7-year bond were around 22.05%/21.95%. Overall, average yields across the benchmark curve remained unchanged from opening levels. Week-on-week, the average benchmark yield appreciated by 1bp to 19.15%
We expect outcome of the PMA to influence market sentiments.
FGN Eurobond Market
The Nigerian Eurobond market opened the week on a tepid note and was generally bearish before and after the Christmas and Boxing Day holidays. Activity remained subdued as the year draws to a close, with the FGN Eurobond market maintaining its bearish trajectory throughout the week. The average benchmark yield consistently dipped all week reflecting sustained market weakness. Week-on-week, the average benchmark yield appreciated by 2bps to 9.51%
We expect a similar session.
Currency Market
The value of the Naira to the dollar declined by 9bps to close at ₦1538.39/$ at the Nigerian Foreign Exchange Market Window (NFEM).
Equities Market
The local bourse ended the day with the benchmark NGX All-Share Index (ASI) declining by 5bps to close at 102,133.30. Market capitalization also decreased, closing at ₦61.92 trillion. Market breadth was positive at 2.06x, with 37 advancers and 18 decliners. This performance was driven by gains in UNIVINSURE (+10.00%), UPL (+10.00%) and WAPIC (+10.00%), and losses in HONYFLOUR (-9.09%), RTBRISCOE (-5.66%), and NEIMETH (-5.47%).
Trading activity was robust on the day, with the volume of shares traded increasing by 12.11% to 442.74 million units, while the total value of shares traded increased by 111.88% to ₦15.08 billion. The most actively traded stocks by volume were UBA with 41.73 million units, ACCESS with 35.44 million units, and ZENITH with 33.26 million units. In terms of value, SEPLAT led with ₦3.08 billion, followed by ZENITH at ₦1.53 billion, and UBA ₦1.48 billion.
Reflecting the day’s performance, the NGX All-Share Index reflected a 1-week gain of 0.87% and a 4-week gain of 4.60%, with an overall year-to-date gain of 36.59%. Other notable indices are the NGX Top 30 Index (-0.04%; +1.54% 1WK; +35.43% YTD), NGX Banking Index (-0.12%; +3.66% 1WK; 22.05% YTD), and NGX Oil & Gas Index (-0.21%; +0.19% 1WK; +159.81% YTD)
