Nigeria is planning a bond programme of up to €1.5bn to be listed on the Vienna Stock Exchange, with proceeds aimed at supporting foreign companies investing in the country. The proposed programme is expected to provide longer-term financing for eligible investors and projects across key sectors of the economy. The Vienna listing would give the programme access to European institutional investors and broaden Nigeria’s funding channels. The initiative comes as the Federal Government continues efforts to attract foreign capital and encourage investment into the domestic economy. The government is expected to provide a guarantee for the bonds, which could improve investor confidence in the programme. If successfully executed, the programme could support FDI inflows and help finance new productive investments in Nigeria. Overall, the initiative could provide an additional channel for foreign capital while supporting private-sector investment and economic growth.
Nigeria’s merchandise trade surplus more than doubled to ₦12.60tn in Q2:2026, according to the latest Foreign Trade in Goods Statistics released by the National Bureau of Statistics (NBS). Total merchandise trade rose to ₦41.44tn during the quarter, up 19.13% from Q1:2026 and 5.61% YoY. The improvement was largely driven by stronger exports, which increased 18.77% YoY to ₦27.02tn and accounted for 65.20% of total trade. Crude oil remained the largest single export at ₦12.91tn, while exports of other oil products rose sharply to ₦10.38tn, up 34.08% YoY. Notably, non-crude exports accounted for ₦14.11tn, slightly exceeding crude oil exports and pointing to some improvement in the composition of export earnings. On the import side, goods imports declined 12.55% YoY to ₦14.42tn, although the figure was 5.91% higher than the previous quarter. The stronger trade balance provides some support for Nigeria’s external position and could help improve foreign-exchange liquidity as export proceeds increase.
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 ₦4.27 trillion on Monday driven by OMO repayment and closing at ₦2.47 trillion. Week-on-week, the Nigerian Overnight Financing Rate (NOFR) held steady to close at 22.00%, while the Overnight (OVN) rates increased by 2bps to close at 22.15%.
We expect rate to continue to hover around this level.
Treasury Bills Market
The Treasury Bills market traded on a slightly positive note this week, as investor appetite remained firm across the curve. The week began on a calm note, with mild interest observed on the 2-Sept bill, before activity moderated as market participants positioned ahead of the NTB auction. As the week progressed, the CBN conducted an OMO auction, offering ₦1trn across various tenors. Demand at the auction was significantly robust, as the auction recorded ₦6.30trn in subscriptions, while ₦4.39trn was allotted. Stop rates continued their downward trend, with the 84-day closing at 19.14%, while the 147-day and 154-day closed at 18.49% and 18.41%, respectively. The NTB auction also recorded strong demand, with total subscriptions of ₦2.64trn, while the DMO allotted ₦1.05trn. Stop rates on the 91-day and 182-day held steady at 16.30% and 16.50%, respectively, while the 364-day declined by 22bps to 16.62% despite the higher allotment, which reflects strong investor appetite. Following the auction, demand for the newly issued 9-Sept bill was initially mild, with quotes hovering around 16.60%/16.50% level. However, buying interest picked up towards week-end, with trades eventually consummated at 16.55%. Week-on-week, the average benchmark yield declined by 7bps to close at 18.77%.
Looking ahead, we expect a cautious session as market participants adopt a wait and see approach ahead of the FGN bond auction.
FGN Bond Market
The FGN bond market traded on a mixed note this week, as selling pressure gradually intensified across the mid-to-long end of the curve. The week began on a relatively calm note, as mild buying interest from local investors pushed yields lower, with trades on the 2035 maturity consummated at 16.70%. The DMO also released its bond auction circular ahead of the upcoming auction, offering ₦1.00trn across the 2036 and 2038 maturities, which kept investors on the sidelines. As the session progressed, mild selling interest was observed across the curve, with the 2035 and 2037 maturities repricing higher from 16.60% to 16.90% levels; this sentiment also filtered into the off-the-run maturities, as bids were seen at 16.90% on the 2031 maturity. By week-end, bearish sentiment intensified, driven by short-selling activity which drove yields higher across the curve. As a result, trades on the 2038 maturity were consummated at 17.00%, while the 2037 and 2038 maturities closed at 17.00%/16.90% and 17.05%/17.00%, respectively. Week-on-week, the average benchmark yield declined by 21bps to close at 16.28%.
We expect a calm session as market participants shift their focus to the upcoming bond auction for further direction on yields and look forward to inflation data.
FGN Eurobond Market
The Eurobond market traded on a negative note this week, as renewed U.S.-Iran tensions and inflation concerns weighed on sentiment. The week began with renewed geopolitical tension after U.S. forces struck three Iranian oil tankers, while Iran threatened retaliation against further U.S. attacks, with Tehran-backed Houthis striking four cities in southern Saudi Arabia. The bearish tone persisted after Iran’s Revolutionary Guards struck attacked U.S vessels in the Gulf, following U.S. attacks on five Iranian tankers. Sentiment briefly improved on expectations of a dovish ECB outcome and hopes of easing tensions after President Trump suggested the war could end following the November midterm elections. However, the release of U.S. PPI, which rose to 5.4% y/y from 4.8%, renewed concerns around persistent inflation and the possibility of tighter Fed policy. By the weekend, attention shifted to the U.S. CPI report, which came in at 3.4% y/y, unchanged from the previous month, indicating that inflation remains elevated. Week-on-Week, the average benchmark yield increased by 13bps to close at 6.98%.
We expect market direction to be driven by evolving geopolitical developments and September’s FOMC meeting.
Currency Market
The value of the Naira to the dollar depreciated by 0.40% week on week to close at ₦1,326.51/$ 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 0.28% to close at 243,052.74 points while market capitalisation also increased to close at N157.40 trillion. Market breadth was positive at 1.61x. Trading activity was active on the day, with the volume of shares traded declining by 60.48% to 552.90 million units, while total value of shares traded declined by 4.99% to ₦25.80 billion.
Reflecting the week’s performance, the NGX All-Share Index depreciated by 1.60%, as gains in NGXGROUP (+13.85%), ELLAHLAKES (+13.33%), and SEPLAT (+10.00%) were offset by declines in FTGINSURE (-27.50%), CMFC (-24.24%), and AUSTINLAZ (-20.40%).
Overall, the NGX has posted a year-to-date gain of 56.19%. Other notable indices are the NGX Top 30 Index (0.23%; -1.22% 1WK; 57.61% YTD), NGX Banking Index (0.72%; -3.64% 1WK; 66.82% YTD), NGX Oil & Gas Index (0.17%; 3.98% 1WK; +117.86% YTD), and NGX Insurance Index (1.96%; -6.51% 1WK; -10.94% YTD).
