MTN Group has secured conditional approval from Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) for its proposed acquisition of the remaining stake in IHS Towers, clearing a key regulatory hurdle for the transaction. The approval requires MTN to sell down up to 30% of the Nigerian component of the IHS business at market prices over time. MTN has indicated that it is comfortable with the conditions, bringing the group closer to completing the acquisition. The transaction would give MTN greater control over critical telecom infrastructure and strengthen its position in Nigeria’s telecommunications market. However, the required sell-down is aimed at addressing competition concerns, given that IHS Towers also provides infrastructure to MTN’s competitors. Overall, the approval is positive for MTN as it reduces regulatory uncertainty around the deal, while the eventual sell-down could also broaden local investor participation in Nigeria’s telecom infrastructure sector.
FTSE Russell is set to proceed with the reclassification of Nigeria from “Unclassified” to “Frontier Market” status, with the change expected to take effect from September 21, 2026. The decision follows concerns around Nigeria’s transition to a T+1 settlement cycle, which had raised questions about whether foreign investors would effectively be required to prefund their trades. However, subsequent clarifications from the SEC confirmed that foreign investors are not required to prefund transactions, with brokers and other market operators responsible for ensuring trades settle within the shorter settlement window. The decision marks a positive development for Nigeria’s capital market and reflects improving confidence in the country’s market infrastructure and accessibility. Nigeria’s return to Frontier Market status is also expected to improve its visibility among international investors and support potential inflows from frontier-market funds. The development could particularly benefit large and liquid Nigerian stocks that are likely to qualify for inclusion in FTSE Frontier indices, although sustained foreign participation will remain dependent on continued improvements in FX liquidity and the ease of capital repatriation.
Money Market
https://www.digital.zenithbank.com/ZEQ/ZEQ-jan-2026/index.html#p=1System liquidity saw a decreasing trend throughout the trading week, opening at ₦4.47 trillion on Monday driven by primary market repayment and closing at ₦3.60 trillion. Week-on-week, the Nigerian Overnight Financing Rate (NOFR) held steady to close at 22.00%, while the Overnight (OVN) rates increased by 7bps to close at 22.21%.
We expect rate to continue to hover around this level.
Treasury Bills Market
The Treasury Bills market traded on a calm note this week, with activity largely shaped by the NTB auction and two consecutive OMO auctions conducted by the CBN. At the start of the week, activity was subdued, with the 12-Aug bill quoted at 17.35%/17.05%. Attention shifted to Wednesday’s NTB auction, where the DMO offered ₦700bn across standard tenors. Demand remained strong, as total subscriptions came in at ₦3.78trn, while the DMO allotted ₦762.89bn. Stop rates on the 91-day and 182-day bills held steady at 16.30% and 16.50% respectively, while the 364-day rate declined by 44bps to close at 17.15%. In an effort to mop up excess liquidity, the CBN also conducted two consecutive OMO auctions, offering a combined ₦2trn across various tenors. Investor demand remained exceptionally robust, with total subscriptions of ₦8.62trn, while the CBN allotted ₦4.71trn. In the secondary market, demand remained concentrated on the newly issued 26-Aug bill, which was seen quoted at 16.90%/16.65%, with trades seen executed at 16.75% to close the week. Week-on-week, the average benchmark yield increased by 19bps to close at 18.93%.
Looking ahead, we expect a calm session as market participants position ahead of the upcoming NTB auction.
FGN Bond Market
The FGN Bond market traded on a bullish note this week, as buying interest was seen across the mid- to long end of the curve. The week began on a subdued note, with mild selling pressure initially pushing yields higher. The 2038 maturity was quoted at 17.60%/17.30%, while the 2035 and 2037 traded around previous levels. However, sentiment turned positive midweek following the lower-than-expected OMO auction stop rates, which renewed buying interest in the secondary market. Demand remained concentrated on the on-the-run maturities, with trades on the 2037 and 2038 maturity executed at 17.20% and 17.40% respectively. By week-end, buying interest was concentrated on the mid-long end of the curve, as the 2038 maturity was seen quoted at 17.38%/17.30% to close the week. Week-on-week, the average benchmark yield declined by 3bps to close at 16.64%.
We expect this positive sentiment to persist, as investors continue to cherry-pick attractive yields.
FGN Eurobond Market
The Eurobond market traded on a mixed note this week, with sentiment driven by developments around the ongoing U.S.-Iran conflict. The week began on a negative note following reports that the U.S. was preparing its toughest sanctions package against Iran, while Tehran threatened to shut down oil exports from the Gulf if economic pressure persisted. Sentiment briefly improved after reports emerged that Iran and Oman were approaching an agreement to secure safe transit through the Strait of Hormuz. However, the positive tone was short-lived after Iranian officials clarified that no final agreement had been reached and reiterated that the Strait would remain closed unless the U.S. met its conditions. On the macro front, U.S. PCE data came in at 3.7%, above market expectations of 3.6%, raising concerns around persistent inflation and the outlook for U.S. monetary policy. By week-end, mediators renewed efforts to reopen the Strait, with Tehran agreeing to draw up conditions for restoring normal shipping traffic. Week-on-Week, the average benchmark yield declined by 3bps to close at 6.85%.
We expect market direction to be driven by evolving geopolitical developments, Job data and NFP data.
Currency Market
The value of the Naira to the dollar appreciated by 0.68% week on week to close at ₦1,337.28/$ at the Nigerian Foreign Exchange Market Window (NFEM).
Equities Market
The local bourse ended the day with the benchmark NGX All-Share Index (ASI) increasing by 0.90% to close at 241,298.5 points while market capitalisation also increased to close at N155.80 trillion. Market breadth was positive at 1.74x. Trading activity was active on the day, with the volume of shares traded declining by 18.90% to 405.10 million units, while total value of shares traded declined by 19.40% to ₦28.30 billion.
Reflecting the week’s performance, the NGX All-Share Index appreciated by 0.46%, as gains in UPL (+18.75%), FIRSTHOLDCO (+11.58%), and SEPLAT (+10.00%) were offset by declines in INTENEGINS (-26.61%), FIDSON (-17.69%), and CAVERTON (-15.15%).
Overall, the NGX has posted a year-to-date gain of 55.06%. Other notable indices are the NGX Top 30 Index (0.99%; 0.72% 1WK; 56.24% YTD), NGX Banking Index (2.34%; 2.07% 1WK; 67.89% YTD), NGX Oil & Gas Index (4.73%; 7.19% 1WK; +94.19% YTD), and NGX Insurance Index (0.82%; -1.32% 1WK; -9.23% YTD).
