The Central Bank of Nigeria (CBN) raised over N626 billion from its recent Treasury bill sales, conducted on Wednesday to absorb excess liquidity from the market. The auction attracted significant interest, with the CBN’s offering being oversubscribed.
Auction results indicated a rise in spot rates across short-, mid-, and long-term maturities as the CBN aimed to stimulate demand amidst reduced market liquidity.
Organized by the Debt Management Office (DMO) on behalf of the CBN, the primary market auction received strong investor interest, with bids totaling N669.93 billion across the three standard maturity periods.
The offer was split into 91-day, 182-day, and 364-day Treasury bills, with the results highlighting a strong investor preference for longer-term bills. Analysts noted that 97% of subscriptions targeted the 364-day bills, with an overall bid-to-cover ratio of 1.30x, slightly lower than the 1.31x in the previous auction.
The DMO ultimately allotted N626.33 billion in Treasury bills, 22% higher than the initial N513.43 billion offered. Local investors largely favored the 364-day bills, which represented 97% of the total allotment.
Stop rates for all tenors increased, with 91-day and 182-day bills each rising by 100 basis points to 18% and 18.5%, respectively. Meanwhile, the 364-day Treasury bill rate rose by 235 basis points, reaching 22.114% from 19.864% in the prior auction.
Oyo State Governor, Seyi Makinde, has approved a new minimum wage of N80,000 for state workers, as announced by the Commissioner for Information and Civic Orientation, Prince Dotun Oyelade, in Ibadan on Wednesday.
According to Oyelade, a technical committee established by the state government recommended the new minimum wage, which has received the governor’s approval.
“The governor has approved the implementation of the N80,000 minimum wage, which will take effect once the committee, comprising government representatives and key labor officials, completes the necessary consequential adjustments,” the commissioner stated.
Oyelade also highlighted that the National Bureau of Statistics (NBS) recently ranked Oyo State as the most worker-friendly state in the Southwest, owing to a significant reduction in unemployment rates. He attributed this improvement to the state’s ongoing recruitment efforts across various sectors.
Additionally, Oyelade noted that since Governor Makinde took office in 2019, workers in Oyo have consistently received their salaries by the 25th of each month. The administration has also cleared gratuity backlogs from 2008 to 2015 for pensioners, with increased gratuity payments.
Interbank rates have surged significantly due to liquidity pressures from Open Market Operation (OMO) auction settlements, coupled with a lack of fresh inflows in the money market. The Central Bank of Nigeria’s (CBN) recent OMO auction, totaling about ₦1.45 trillion, pushed system liquidity further into deficit, driving a sharp rise in interbank rates.
Following Tuesday’s primary market auction (PMA) by the CBN, the settlement on Wednesday injected N1.44 trillion in OMO bills, which led to a negative liquidity position of N2.3 trillion, according to investment banking reports. As a result, the Nigerian Interbank Offered Rate (NIBOR) rose across all maturities, signaling a tight liquidity scenario in the banking sector, Cowry Asset Limited noted.
Data from the FMDQ platform showed a notable increase in the Overnight Policy Rate (OPR), which rose by 2.09% to 31.90%, while the Overnight Rate (O/N) climbed by 2.17% to 32.53%.
With liquidity tightening, local banks are expected to turn to the CBN’s Standing Lending Facility to source funds, where borrowing rates were recently adjusted to 31.75% to align with the central bank’s policy stance. Analysts predict further upward pressure on rates following an additional CBN treasury bills auction totaling over ₦500 billion conducted on Wednesday, which offered ₦513.43 billion in treasury bills to investors.
AIICO Capital Limited analysts expect interbank rates to remain elevated unless there is a significant improvement in liquidity. Money market rates were already high in October due to ongoing liquidity constraints driven by CBN FX intervention debits, cash reserve requirements, and frequent OMO auctions.
AIICO’s report highlighted that October began with an initial credit of ₦709.32 billion, but liquidity quickly declined, averaging a debit of -₦579.71 billion, a sharp drop from -₦26.13 billion in September.
Temporary relief in liquidity pressures was seen mid-October due to FAAC disbursements, Remita credits, and other state inflows, which allowed interbank rates to ease to 19%-25% by month-end. Nonetheless, funding pressures remained elevated, with rates spiking up to 34% during peak OMO settlements, eventually stabilizing around 26%-27% after FAAC disbursements.
The naira depreciated to N1,681 per US dollar in the foreign exchange (FX) market, highlighting an ongoing FX supply crisis driven by heightened demand. Data from the FMDQ platform showed that the naira weakened by 0.62%, closing at ₦1,681.65 per US dollar at the official rate.
This exchange rate breached the Central Bank of Nigeria’s (CBN) typical response threshold, marking the first time in months the rate crossed this key level.
According to Bizwatch Nigeria, the CBN’s FX interventions have decreased recently, worsening the naira’s spot rate despite notable US dollar inflows into the Nigerian economy.
In efforts to bolster FX market confidence, the CBN plans to automate the FX trading platform by December, with testing set for November 2024. Despite various initiatives, authorities have struggled to address imbalances in FX demand and supply, making it challenging to stabilize the naira.
“The CBN aims to solve the exchange rate challenge,” an anonymous financial expert told MarketForces Africa. “But unless imports are restricted for certain items, the willing buyer-willing seller model may not suffice to stabilize the naira.”
Weekly FX interventions by the CBN have failed to reduce exchange rate volatility, with analysts suggesting that the central bank may have realized the risks the retail Dutch Auction System (rDAS) poses to external reserves.
In August, the CBN reintroduced the previously discarded rDAS but faced difficulties sustaining it, as bids reached $1.1 billion. Meanwhile, Nigeria’s external reserves rose to approximately $40 billion this week, according to CBN data.
Despite this, FX intervention sales to authorized dealer banks have slowed. In the parallel market, the naira closed at ₦1,725 to the US dollar, falling by N10 due to renewed pressures. The gap between the official and parallel market rates settled at N44 today.
Elsewhere, oil prices showed mixed movements amid a surge in the U.S. dollar following Donald Trump’s presidential victory. Brent crude decreased by 0.35% to $75.30 per barrel, while West Texas Intermediate (WTI) rose by 0.05% to close at $72.00 per barrel.
These fluctuations reflect current market volatility due to geopolitical tensions and supply-demand shifts, with analysts noting that Trump’s policies could strengthen the dollar, potentially increasing interest rates and pressuring economies like China’s.
Similarly, gold prices fell sharply as Trump’s projected win boosted the dollar to a four-month high. Gold faces further downside risk with an impending Fed rate decision, currently trading at $2,673.00 per ounce.
Data from FMDQ revealed that turnover in the Nigerian autonomous foreign exchange market (NAFEM) declined by 55.69%, or US$204.14 million, week-over-week, ending at US$162.41 million on Friday.
The NAFEM window saw a total inflow of US$723.3 million this week, with contributions from the CBN (18.4%), foreign portfolio investors (26.7%), non-bank corporates (22.9%), exporters (28.2%), and others (3.8%).
The Nigerian equities market shed over ₦337 billion as investors returned to selling after a brief rally, driven primarily by profit-taking in banking and oil and gas stocks.
The Nigerian Exchange (NGX) key performance indicators slipped midweek, ending down by 57 basis points, erasing Tuesday’s gains. The All-Share Index (ASI) dropped by 556.37 points, a 0.57% decrease, closing at 96,567.24 points.
Stockbrokers noted that profit-taking activities were concentrated in major stocks within the banking and consumer goods sectors, including UBA and Zenith Bank, even as strong earnings were posted by these leading banks.
Market activity levels fell sharply, with total trading volume down by 88.39% and trading value decreasing by 60.73%. According to Atlass Portfolios Limited, approximately 418.39 million shares worth ₦10.04 billion changed hands across 9,021 deals.
STERLINGNG led in trade volume, making up 19.04% of the day’s transactions, followed by UBA (18.87%), ACCESSCORP (10.62%), JAIZBANK (10.43%), and VERITASKAP (6.04%).
In terms of trade value, UBA topped the list, representing 25.59% of the total traded value. EUNISELL led the gainers, appreciating by 9.87%, followed by REGALINS with a 9.30% increase.
Other gainers included VERITASKAP (+9.17%), DAARCOMM (+8.93%), FCMB (+7.33%), ETI (+7.34%), along with fourteen others. Meanwhile, twenty-one stocks recorded declines. UBA led the losers with a -9.99% drop, followed by OANDO (-9.98%), NASCON (-7.83%), LASACO (-7.50%), TRANSCORP (-3.33%), and ZENITHBANK (-0.81%).
By the session’s close, the market breadth was slightly negative with 20 gainers and 21 losers. The Oil & Gas (+0.80%), Insurance (+0.49%), and Industrial Goods (+0.03%) sectors closed positive, boosted by buying interest in CONOIL (+3.32%), VERITASKAP (+9.17%), and WAPCO (+0.66%).
On the other hand, the banking sector (-0.92%) and consumer goods sector (-0.13%) closed in the red, with selloffs in UBA (-9.99%) and NASCON (-7.83%) weighing on performance. Overall, the NGX market capitalization dropped by ₦337.13 billion, ending the day at ₦58.51 trillion.
Yields on Nigeria’s U.S. dollar-denominated bonds increased to 9.70% as bearish market sentiment pushed yields higher, despite mixed results in the international capital markets influenced by the U.S. election.
Market sentiment has shifted from previous trends, according to fixed-income traders, who reported a mixed outlook across the short-, mid-, and long-term ends of Nigeria’s yield curve. This shift resulted in lower trading activity in Nigeria’s sovereign Eurobonds.
The U.S. elections had a notable impact on the market, which closed on a bearish note as trading volumes remained low while investors turned their attention to the polls. TrustBanc Capital Limited noted that offers were prominent across the curve, particularly on the mid- and long-term bonds, except for the 2025 and 2047 maturities, which saw mild buying interest.
The bearish trend extended across the Sub-Saharan Africa (SSA) curve, affecting bonds from Ghana, Angola, and Egypt. Traders expect cautious trading to persist as investors await early signals from the tightly contested U.S. election, which could further influence market dynamics and investor confidence.
Within African bond markets, only a few Nigerian corporate bonds saw slight demand, while sovereign bonds from Nigeria, Angola, and Egypt experienced price declines. The average mid-yield for Nigerian bonds rose by 10 basis points, closing at 9.70%.
In the foreign exchange market, the naira appreciated by 0.33%, ending the day at ₦1,671.32 per dollar in the official market, while closing at ₦1,710 per dollar in the parallel market.
The World Bank approves a $50 million fund to combat Nigeria’s pressing nutrition crisis through the Accelerating Nutrition Results in Nigeria (ANRiN) Project 2.0. The announcement is made by Ndiame Diop, the World Bank’s Country Director, during a meeting with Vice President Kashim Shettima at the Presidential Villa in Abuja.
The ANRiN 2.0 project is part of the World Bank’s crisis response framework, aiming to improve nutrition outcomes for vulnerable populations across Nigeria. According to Diop, the initiative reflects the World Bank’s ongoing support for Nigeria’s nutrition efforts, emphasizing the importance of local government financing and international collaboration in tackling malnutrition.
Focus on Nutrition Education for Children and Adolescents
Trina Haque, the World Bank’s Practice Manager for Health, Nutrition, and Population, stresses the need for nutrition education, particularly for children and adolescents, as part of early child development. Haque calls for a broader rollout of educational initiatives aimed at addressing malnutrition from its roots, noting that such interventions are critical to long-term improvements in public health.
Vice President Shettima Launches N-774 Initiative for Localized Nutrition Solutions
Vice President Shettima introduces the N-774 Initiative, a locally-focused program designed to deliver nutrition interventions directly to Nigeria’s 774 local government areas (LGAs). The initiative builds on the progress of the ANRiN project, which is nearing completion, and reflects a shift towards community-driven solutions for nutrition challenges.
Shettima explains that the N-774 Initiative targets the unique needs of each local government area, integrating efforts across sectors such as education, agriculture, health, and social protection. The program aims to empower local communities to take ownership of nutrition interventions, ensuring sustainability and fostering long-term improvements.
“Malnutrition is a Nigerian problem that requires a Nigerian solution,” Shettima states, highlighting the government’s commitment to locally tailored and sustainable strategies. He also emphasizes that the initiative is in line with President Bola Ahmed Tinubu’s administration’s focus on effective, localized nutrition interventions.
Political Will and International Partnerships Key to Success
Vice President Shettima underscores the importance of leveraging political will and international partnerships to address Nigeria’s nutrition challenges. He expresses confidence that the N-774 Initiative, supported by both federal and sub-national governments, will lead to meaningful improvements in community health outcomes.
“The Renewed Hope Administration is committed to achieving swift and impactful results through this innovative approach to nutrition intervention,” Shettima adds. “With sustained collaboration, we believe this initiative will drive significant improvements in Nigeria’s nutrition landscape.”
The study, released on Tuesday and featured in the journal eBioMedicine, prioritizes diseases such as HIV, malaria, and tuberculosis, which together claim nearly 2.5 million lives annually. Despite medical advances, these diseases continue to present significant public health challenges, particularly in low- and middle-income countries.
The WHO’s report marks the first global, systematic effort to prioritize endemic pathogens based on factors such as regional disease burden, antimicrobial resistance risks, and socioeconomic impacts. The study also emphasizes the need for new vaccines to address pathogens like Group A streptococcus and Klebsiella pneumoniae, which are increasingly resistant to available treatments.
Focus on Equity in Vaccine Development
Dr. Kate O’Brien, Director of WHO’s Immunization, Vaccines and Biologicals Department, underscores the importance of equitable vaccine development: “Too often, global vaccine decisions are driven by financial returns rather than the potential lives saved in vulnerable communities. This study uses regional expertise and data to assess vaccines that can reduce the health and economic burdens faced by these communities.”
WHO’s approach includes soliciting input from international and regional experts to identify key factors for prioritizing vaccines. Combining this feedback with regional data for each pathogen, WHO has created regional lists of vaccine priorities, which have been consolidated into a global list of 17 priority pathogens. This list is aimed at guiding global vaccine research and development (R&D) efforts to address diseases that most significantly impact public health and economies.
Supporting Global Immunization Goals
The newly identified list aligns with the Immunization Agenda 2030, a global framework that seeks to ensure access to vaccines for all, particularly in regions with high disease burdens. The list is intended to guide vaccine R&D, manufacturing, and distribution, providing clear priorities for researchers, funders, and policymakers.
“This prioritization exercise for endemic pathogens complements the WHO R&D blueprint for epidemics, which focuses on pathogens that could trigger future pandemics, such as COVID-19,” the WHO said in a statement. “By identifying these endemic pathogens, WHO aims to advance the development of vaccines that can reduce the greatest public health and socioeconomic impacts, especially in low- and middle-income countries.”
WHO’s Priority Endemic Pathogen List
The pathogens identified by the WHO are at various stages of vaccine development. Some require initial research, others need further development, and some are approaching regulatory approval or introduction. Here is the breakdown of WHO’s priority pathogens:
Research Needed:
Group A streptococcus
Hepatitis C virus
HIV-1
Klebsiella pneumoniae
Further Development Needed:
Cytomegalovirus
Influenza virus (broadly protective vaccine)
Leishmania species
Non-typhoidal Salmonella
Norovirus
Plasmodium falciparum (malaria)
Shigella species
Staphylococcus aureus
Approaching Regulatory Approval or Introduction:
Dengue virus
Group B streptococcus
Extra-intestinal pathogenic E. coli
Mycobacterium tuberculosis
Respiratory syncytial virus (RSV)
The WHO’s new global priority list is designed to inform the global vaccine R&D agenda and support immunization programs, particularly in regions with the highest health needs.
Vitol, Trafigura, and BP Plc are currently the primary buyers of Dangote Refinery’s products, purchasing 75% of its output, according to recent data. The three companies have accounted for the majority of the refinery’s shipments since production levels began increasing in mid-2024, as reported by the Geneva-based oil and gas analytics firm, Precise Intelligence.
This development follows a growing dispute between Dangote Refinery and local Nigerian marketers over petrol pricing and supply issues. Aliko Dangote, the refinery’s CEO, asserts that the facility currently holds approximately 500 million liters of petrol in storage.
International Traders Dominate Product Purchases
The report reveals that Vitol and Trafigura, two of the world’s leading oil traders, have become the dominant buyers of Dangote Refinery’s refined petroleum products. Vitol, based in Rotterdam, operates globally with key offices in cities such as Geneva, Houston, London, and Singapore. Similarly, Trafigura, headquartered in Singapore, has operations across more than 50 countries. BP Plc, a British multinational oil and gas company, is also involved in purchasing products from the refinery.
Precise Intelligence data shows that diesel (automotive gasoil) is the largest product category being lifted from Dangote Refinery, followed by fuel oil. Together, these products account for over 60% of the refinery’s output. Other products include petrol and jet fuel.
Ongoing Disputes with Local Marketers
Dangote Refinery began supplying petrol to the Nigerian market in September 2024, initially selling exclusively to the Nigerian National Petroleum Corporation (NNPC). However, following the full deregulation of the downstream sector by the Nigerian government, NNPC stopped being the sole off-taker, enabling local marketers such as the Independent Petroleum Marketers Association of Nigeria (IPMAN) to engage directly with the refinery.
Despite this shift, the relationship between Dangote Refinery and local marketers has been contentious. Dangote has suggested that some marketers may be bypassing his refinery in favor of importing petrol from abroad. He argues that the fuel scarcity in Nigeria could be easily addressed if marketers would purchase from his facility. In an interview, Dangote emphasized that his company is not involved in retailing and that retailers need to purchase directly from the refinery.
Price Disputes
Some marketers contend that petrol from Dangote Refinery is more expensive than imported fuel. However, Dangote’s management insists that their prices are competitive and lower than the regulated price set by NNPC following deregulation. Anthony Chiejina, a spokesperson for Dangote Refinery, also suggested that marketers seeking to import substandard fuel might offer lower prices than the refinery’s official rate.
About Dangote Refinery
Dangote Refinery is Africa’s largest single-train refinery and one of the largest in Europe, with an investment valued at $20 billion by Aliko Dangote, Africa’s wealthiest individual. The refinery currently processes around 420,000 barrels of oil per day, with plans to increase capacity to 650,000 barrels per day. This capacity not only meets Nigeria’s domestic fuel needs—around 40 million liters of petrol per day—but also positions the refinery to supply neighboring African countries, including Ghana, Togo, and Benin, helping to boost the continent’s energy security.
Bitcoin’s value spiked by 7 percent to reach $75,060 in Asian trading on Wednesday, setting a new peak for 2024, as polls increasingly suggest a potential return of Donald Trump to the White House.
The rise in Bitcoin was mirrored by a 7.5 percent increase in Ether, marking a bullish trend in the cryptocurrency market amid heightened political developments in the U.S.
The Bloomberg Dollar Spot Index also gained 1.5 percent, reflecting renewed investor interest in Trump’s economic promises, including low-tax and high-tariff policies. Analysts suggest that these policies could strengthen the dollar while potentially driving up inflation, creating favorable conditions for cryptocurrency growth as an inflation hedge.
In the latest election projections, Trump has secured crucial battleground states Georgia and North Carolina, placing him within reach of the 270 electoral votes needed to reclaim the presidency. With Wisconsin now projected in his favor, Trump has achieved the necessary count, though official results await confirmation.
Jeanne Walters, senior economist at Emirates NBD, noted that Trump’s current lead reflects the sequence of state closures. “Counting remains underway in each of the seven key swing states,” Walters told National News. “Final results could still take several days, depending on potential legal challenges.”
Trump’s party is also projected to take control of the Senate, setting the stage for potential shifts in both domestic and international policy. As results continue to come in, market volatility is expected to persist, with financial analysts closely monitoring the impact of a potential Trump administration on cryptocurrency and global market dynamics.
African start-ups marked a record-setting October, raising $254 million across 42 deals valued at $100,000 or more, according to a new report from Africa: The Big Deal. The month’s performance is the second-highest in 2024, following July, and sets a new benchmark for October funding since 2019.
One of the standout deals came from Nigerian fintech Moniepoint, which raised $110 million in Series C funding, representing 43 percent of October’s total funding activity. This achievement positions Moniepoint as Africa’s latest “unicorn,” joining the elite group of start-ups valued at $1 billion or more. Moniepoint’s substantial funding round underscores Nigeria’s growing prominence in the fintech sector and Africa’s broader tech landscape.
In addition to Moniepoint, other notable deals included Kenyan electric bus company BasiGo, which secured $42 million in Series A funding, and cryptocurrency platform Yellow Card, which raised $33 million in a Series C round. These top three deals accounted for the bulk of October’s financing, reinforcing the dominance of Nigeria’s fintech firms, which captured 60 percent of the funds raised during the month.
However, the report also highlights ongoing gender disparities within the African tech sector. Of the total funding in October, 98 percent went to start-ups led by male CEOs, and 97 percent was directed toward ventures with no female founder.
The report further notes a significant acquisition in October, with OmniRetail’s acquisition of Nigeria’s Traction Apps. This marks one of the few exit transactions announced in 2024, a year characterized by both landmark deals and a slowdown in venture funding across the continent.
So far in 2024, African start-ups have raised a total of $1.7 billion, representing a 32 percent decline compared to the same period in 2023. At this time last year, this funding milestone had already been reached by early June, underscoring the impact of the global venture capital slowdown on African markets.
To date, 393 African start-ups have closed deals of $100,000 or more, reflecting a 10 percent decline year-on-year. Furthermore, only 137 companies have secured deals of $1 million or more, marking a 20 percent drop from 2023 levels.
President Bola Ahmed Tinubu has announced, the passing of Nigeria’s Chief of Army Staff, Lt. General Taoreed Abiodun Lagbaja, at the age of 56.
Tinubu made this announcement through a State House Press Release signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga on Wedesday.
‘’ General Lagbaja, who served with distinction throughout his military career, passed away on Tuesday night in Lagos after a period of illness.’’ The statement reads.
Born on February 28, 1968, Lt. General Lagbaja’s career in the Nigerian Army began in 1987 when he enrolled at the Nigerian Defence Academy. He was Commissioned as a Second Lieutenant in the Nigerian Infantry Corps in 1992, as a member of the academy’s 39th Regular Course.
In June 2023, he was appointed Chief of Army Staff by President Tinubu, bringing decades of expertise and leadership to Nigeria’s Armed Forces.
Throughout his service, General Lagbaja held critical command positions and was instrumental in several key operations. Notably, he played pivotal roles in Operations ZAKI in Benue, Lafiya Dole in Borno, Udoka in the Southeast, and Forest Sanity across Kaduna and Niger States. He demonstrated commitment to Nigeria’s security, undertaking these roles with a passion for safeguarding the nation.
A distinguished alumnus of the U.S. Army War College, he held a Master’s degree in Strategic Studies, underscoring his dedication to professional growth and military excellence.
Lt. General Lagbaja is survived by his wife, Mariya, and their two children. President Tinubu expressed his condolences to his family and the Nigerian Armed Forces, honouring General Lagbaja’s legacy of selfless service and leadership.
In a strong display of market confidence, local deposit money banks (DMBs), foreign portfolio investors (FPIs), and other authorised dealers bid heavily on the Central Bank of Nigeria’s (CBN) Open Market Operation (OMO) bills auction held on Tuesday, placing a staggering N1.45 trillion in offers.
The auction attracted an overwhelming demand, reflecting the appeal of Nigeria’s elevated yields in its fixed-income market.
The CBN had initially offered N300 billion across long-dated maturities in response to increased liquidity levels within the banking system. However, the auction saw significant oversubscription with investors seeking higher returns amidst Nigeria’s high inflation environment and fluctuating market conditions. According to CardinalStone Limited, investor demand was concentrated on the long-end maturities, with a bid-to-offer ratio reaching 4.83 times.
The CBN ultimately sold N1.447 trillion at a stop rate of 24.28%, a competitive rate that drew particular interest from alpha-seeking investors and wealth managers keen on securing long-dated debt instruments. AIICO Capital Limited highlighted that all allotments were allocated to the long-end tenor, with no bids placed for short and medium-term instruments.
Following this robust OMO turnout, market expectations remain high as the CBN is set to conduct another Treasury bills auction on Wednesday, offering N513.43 billion across standard maturities. Market analysts anticipate a similar strong reception, noting that the elevated interest rates continue to drive high demand in Nigeria’s fixed-income landscape.
Leading stockbrokers Stanbic IBTC Stockbrokers Limited, Cardinalstone Securities Limited, United Capital Securities Limited, and APT Securities and Funds have collectively traded N2.53 trillion worth of equities on the Nigerian Exchange (NGX) from January to October 2024, representing 55.08% of the total market transactions.
The NGX Broker Performance Report identified Stanbic IBTC as the top performer, handling trades worth N577.8 billion (12.59% of total transactions), followed by Cardinalstone Securities with N519.8 billion (11.33%), United Capital Securities with N306.9 billion (6.69%), and APT Securities with N219.8 billion (4.79%).
The value of stocks traded saw a year-on-year (YoY) growth of N919 billion, marking a 57% increase from N1.61 trillion in the corresponding period in 2023. Other active players included Cordros Securities Limited, EFG Hermes Nigeria Limited, Meristem Stockbrokers Limited, CSL Stockbrokers Limited, FBN Quest Securities Limited, and Chapel Hill Denham Securities Limited, all of which contributed notably to the market’s trading volume.
Market Volume and Index Performance
In terms of volume, the top 10 brokers accounted for 95 billion units of stocks, representing 41.83% of the total volume exchanged. Cardinalstone Securities led with 19.31 billion units (8.51%), followed by Stanbic IBTC Stockbrokers with 13.03 billion units (5.74%), alongside significant contributions from Morgan Capital, APT Securities, and Greenwich Trust Limited.
The NGX All-Share Index (ASI) ended October at 97,651.23 points, with market capitalisation closing at N59.17 trillion, up from N56.64 trillion at the start of the month. This gain, bolstered by new listings, reflects a continued bullish trend and sustained investor interest, even as market returns slightly eased to +30.60% from +31.81% in September.
Analysts remain optimistic about the Nigerian equities market, noting the strong performance of brokerage firms and high trading volumes as indicators of sustained growth and increasing local and international investor confidence.
Former President Donald Trump appears on the verge of winning a second term, requiring just a few more electoral votes to overcome Democratic Vice President Kamala Harris.
According to projections by major U.S. media outlets, Trump has claimed victories in over half of the 50 states, including critical battlegrounds such as Georgia, North Carolina, and Pennsylvania. Two of these states previously leaned Democratic in the last election cycle.
This brings Trump’s electoral count to 266, narrowly missing the 270 needed to secure the presidency. Fox News has already declared him the likely winner.
Meanwhile, Harris has amassed 195 electoral votes, including key states like California and New York, as well as Washington, D.C.
Below is a breakdown of each candidate’s victories and corresponding electoral votes, based on media projections from outlets such as CNN, Fox News, MSNBC/NBC News, ABC, and CBS.
After a week of consecutive losses, the Nigerian Exchange (NGX) finally breathed a sigh of relief as the market staged a comeback on Tuesday. The All-Share Index surged by 0.22%, adding 215.63 basis points to close at 97,123.61.
What Drove the Market Up?
Investor sentiment improved significantly, leading to increased trading activity. Total volume and value traded surged by 194.37% and 79.64%, respectively.
Key stocks that caught investors’ eye included CONOIL, UBA, ZENITHBANK, and others. These stocks saw significant buying interest, contributing to the market’s positive performance.
Winners and Losers
Top Gainers: CONOIL (+9.92%), JOHNHOLT (+9.92%), UBA (+9.87%), EUNISELL (+9.87%), and PZ (+8.48%) led the charge.
Top Losers: OANDO (-9.98%), DAARCOMM (-9.68%), VERITASKAP (-6.25%), NB (-3.57%), and JAPAULGOLD (-2.78%) were among the biggest decliners.
Sectoral Performance
Banking: The Banking sector was the star performer, gaining 3.16% due to strong buying interest in UBA.
Oil and Gas: The Oil and Gas sector also saw positive momentum, rising 1.55% thanks to gains in CONOIL.
Consumer Goods, Industrial, and Insurance: These sectors, however, experienced downward pressure, with NB, WAPCO, and VERITASKAP being major contributors to the decline.
Market Outlook
The market’s rebound is a positive sign, indicating that investor confidence may be returning. However, it’s important to note that market conditions can be volatile. Investors should continue to monitor market trends and consult with financial advisors before making investment decisions.
Key Takeaways:
The NGX rebounded after a week of losses.
Investor sentiment improved, leading to increased trading activity.
Banking and Oil and Gas sectors were the top performers.
Consumer Goods, Industrial, and Insurance sectors faced downward pressure.
As always, it’s crucial to conduct thorough research or consult with a financial advisor before making any investment decisions.
Money market rates have spiked significantly as liquidity tightens in the financial system following a substantial debit from a recent OMO (Open Market Operations) auction. The Nigerian Interbank Offered Rate (NIBOR) rose across all maturities, reflecting a constricted liquidity environment in the banking sector.
According to MarketForces Africa, the Central Bank of Nigeria (CBN) held an OMO bills auction on Tuesday, targeting both local and foreign investors. Although the CBN initially offered N300 billion in OMO bills, investor demand surged, with bids totaling approximately N1.5 trillion, fueled by high liquidity at the week’s onset.
This large-scale debit from the auction significantly reduced system liquidity, driving short-term benchmark interest rates up to around 30% from 20% on Monday. System liquidity opened on a lower note, and interbank rates climbed considerably by the day’s end, according to analysts at AIICO Capital Limited.
Specifically, the overnight policy rate (OPR) jumped by 10.59% to 29.81%, while the overnight lending rate (O/N) increased by 10.67% to 30.36%, based on FMDQ platform data. Analysts anticipate that liquidity may turn negative due to the OMO auction settlement, likely keeping interbank rates elevated.
The CBN offered N300 billion across standard maturities in the OMO auction. Demand remained concentrated on the long end of the maturity spectrum, with total subscriptions reaching N1.45 trillion, creating a bid-to-offer ratio of 4.83x. The auction concluded with sales at a stop rate of 24.28%.
Last week, the overnight (OVN) rate dropped significantly, contracting by 10.46 percentage points week-on-week to 19.7%, mainly due to inflows from FGN bond coupon payments totaling N260.67 billion and OMO maturities worth N254.25 billion.
Cordros Capital Limited analysts noted that this rate drop marked the lowest point since February, when rates last dipped below 20.0%, reflecting robust liquidity in the financial system. Average weekly liquidity settled at a net long position of N390.67 billion, up from a net short position of N437.00 billion in the previous week.
Banking stocks led a recovery on the Nigerian Exchange (NGX) as the index rose by 3.16%, reversing a six-day market downturn. Driven by strong third-quarter earnings reports and a slight cooling in fixed-income yields, investors showed renewed interest in top-tier banking stocks.
United Bank for Africa (UBA), Zenith Bank, Access Holdings, Fidelity Bank, and FBN Holdings were among the key performers that lifted the NGX banking index, with the surge starting early in the trading session. Analysts point to healthy earnings growth and optimism around the banking sector’s profitability as primary factors attracting investor interest.
UBA shares jumped 9.87%, Zenith Bank climbed 5.78%, and Access Holdings rose by 4.89%, driving the market valuation of Nigeria’s top lenders to nearly ₦5 trillion. Tier-2 banks also showed gains, while a marginal increase in insurance stocks contributed to the positive momentum.
“The third-quarter results from the major banks have exceeded expectations, which is reassuring for investors amid economic uncertainty,” said a stockbroker at Afrinvest. “With net interest income on the rise, banking stocks are becoming a popular choice for long-term investment.”
The trading session saw robust activity, with deal volume increasing by 2.82%, trading volume up by 194.37%, and transaction value surging by 79.64%. Over 3.6 billion shares were exchanged across 10,679 deals, totaling ₦25.57 billion in traded value.
Bank Profits Strengthened by High-Interest Rates
The Nigerian banking sector has benefited significantly from the Central Bank of Nigeria’s (CBN) recent rate hikes, aimed at tackling inflation and stabilizing the naira. Since the beginning of the year, the CBN has increased its policy rate from 18.75% to 27.25% across five meetings, creating favourable conditions for banks’ net interest income.
Daba Finance, a financial consultancy, highlighted that the high-interest environment is a key driver of the recent banking stock rally, as banks see improved returns on fixed-income investments. The firm projects further gains in bank stocks, forecasting an 11% increase in Guaranty Trust Holding shares and a potential 42% rise for Zenith Bank by the end of the year.
Market analysts are also looking ahead to the CBN’s upcoming monetary policy meeting on November 26, where another rate hike is anticipated amid rising inflation, which hit 32.7% in September. Additional rate increases could further boost net interest income in the banking sector, solidifying its position as a stronghold in Nigeria’s high-interest-rate environment.
As the NGX banking index continues its upward trajectory, investor sentiment remains positive, with analysts suggesting that banking stocks will remain a focal point for those seeking resilient investment opportunities amid economic challenges.
Local and foreign investors flocked to Nigeria’s OMO bills auction on Tuesday, placing bids worth N1.45 trillion. This strong demand was driven by high-interest rates in the fixed income market.
The Central Bank of Nigeria (CBN) offered N300 billion in OMO bills across various maturities, but the market’s appetite was particularly strong for longer-term instruments. This led to a bid-to-offer ratio of 4.83x, indicating significant oversubscription.
The CBN ultimately sold N1.447 trillion in OMO bills at a stop rate of 24.28%. All of the allocated funds were for the longest-term tenor.
Market participants anticipate another Treasury bill auction on Wednesday, with N513.43 billion worth of bills up for grabs.
The Nigerian naira strengthened in the official currency market as foreign reserves surged close to $40 billion, buoyed by sustained foreign exchange (FX) inflows. Reforms to boost investor confidence, alongside relatively high yields in Nigeria’s debt market, have spurred foreign currency inflows into the country.
According to data from the FMDQ platform, the naira appreciated by 0.33%, closing at ₦1,671.32 per US dollar in the official market on Tuesday. This positive movement was partly driven by reduced demand for the US dollar in the official market, as participants anticipate the Central Bank of Nigeria’s (CBN) weekly FX auction.
Although the official exchange rate remains relatively low, volatility in the FX market has brought rates closer to those in the parallel market, narrowing the gap. In the parallel market, the naira strengthened to ₦1,710 per US dollar, gaining ₦15 in one day as reduced household spending led to a cutback in imports.
Currently, the exchange rate gap stands at ₦39, a significant reduction from the levels seen in October 2024. Data from the CBN indicates that foreign reserves rose to $39.956 billion, bolstered by steady FX inflows from various sources amid global commodity market uncertainties.
Reports from FMDQ revealed that inflows into the Nigerian Autonomous Foreign Exchange Market (NAFEM) hit a five-month high in October, increasing by 40.2% to $3.04 billion from $2.17 billion in September.
Analysts attribute this growth primarily to a significant rise in foreign inflows, which accounted for 44.6% of total inflows, while contributions from local sources declined for the second month in a row, representing 55.4% of inflows. Meanwhile, oil prices remained steady, with Brent crude reaching $76.08 per barrel and WTI at $72.55, following a recent OPEC+ decision to delay a planned production increase in December.
Additionally, gold prices have climbed as investors brace for potential political uncertainty. With a close race predicted between Donald Trump and Kamala Harris in upcoming elections, gold is currently valued at $2,750.50 per ounce.
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