Nigerian Fixed-Income Market Surges to N1.06tn as Investors Rush Into Treasury Bills and Bonds
Nigeria’s fixed-income market witnessed a dramatic surge in trading activity as total daily turnover climbed past the N1 trillion mark, signaling a wave of investor confidence and aggressive positioning in government-backed securities. According to data from the Central Bank of Nigeria’s Fixed Income Dashboard, the market recorded a striking N1.06tn in trades executed within a single day, spread across 551 transactions.
The rally was largely driven by Nigerian Treasury Bills, which dominated market activity and accounted for more than half of the total turnover. Investors poured funds into short-term government instruments as appetite for safety and attractive yields continued to grow, especially in a high-interest-rate environment. Treasury Bills alone recorded 340 trades worth about N668bn, reflecting strong participation from both local and institutional investors.
Market momentum was particularly intense in one-year Treasury Bill instruments maturing in June 2027, where heavy liquidity blocks were executed, including a standout transaction valued at N65bn. Yields on these instruments climbed as high as 19–20%, showing that investors are increasingly locking in higher returns on short-term sovereign debt amid tightening financial conditions.
The Central Bank of Nigeria’s Open Market Operations also played a key role in absorbing liquidity, attracting institutional demand for ultra-short instruments. OMO bills recorded over N224bn in transactions, with some short-dated papers maturing within weeks pushing yields as high as 22%, highlighting continued pressure on short-term interest rates.
Meanwhile, the Federal Government bond market showed a more mixed performance, with investors favoring medium-term maturities over longer-dated securities. The February 2031 bond emerged as the most actively traded, while yields across the curve revealed a flattening trend—signaling uncertainty about long-term economic direction even as short-term returns remain highly attractive.
source: punch