Nigerian Stocks Drop as Banks Lead Losses; NIBOR Spikes Across Board

The Nigerian Exchange (NGX) closed lower on Monday as jittery investors reacted to tightening liquidity conditions in the banking sector, dragging the All-Share Index (ASI) down 0.19% to 115,238.24 points.

Market capitalisation shrank by ₦140.22 billion to ₦72.67 trillion, with sell-offs dominating major sectors.

Investor sentiment was rattled by the Central Bank of Nigeria’s (CBN) directive suspending bank dividends and foreign investment incentives, triggering broad-based declines. Banks took the hardest hit, with the NGX Banking Index falling 1.19%, followed by steep losses in Oil & Gas (-2.66%), Commodities (-4.52%), and Consumer Goods (-2.73%).

Banks Bleed, Volumes Fall Sharply

Top laggards included NFM (-10.00%), Cileasing (-9.68%), UPL (-9.27%), and Ellah Lakes (-9.93%). On the flip side, Guinness (+10.00%) and Eterna (+9.93%) led the gainers’ chart. Market breadth remained negative, with 21 gainers against 43 decliners.

Trading activity slowed, with volume and deals falling by 32.77% and 6.60%, respectively. Total turnover stood at ₦18.98 billion, up 8.67% from the previous session, driven by block trades in Zenith Bank (19%), UBA (16%), and GTCO (15%).

NIBOR Spikes Amid Liquidity Crunch

Money market rates surged as the Nigerian Interbank Offered Rate (NIBOR) rose across all maturities. Overnight, 3M, 6M, and 12M tenors jumped 101bps, 43bps, 57bps, and 74bps respectively, reflecting tightening system liquidity. The Open Repo and Overnight Lending rates also soared to 28.33% and 28.83%.

Meanwhile, the Nigerian Treasury Bills (NTB) curve declined across tenors, with yields on 1M to 12M bills shedding 8–16bps. Average secondary market yield on short-dated paper dropped 2bps to 20.62%.

Sovereign Bond Yields Hold; Eurobond Demand Rises

The FGN bond market was largely stable, with yields flat across most tenors amid subdued trading. However, Nigerian Eurobonds saw renewed interest, particularly in the NOV-25, NOV-27, and SEP-28 maturities, pushing the average yield down to 9.00%.

Naira Strengthens Slightly at Official Window

At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira appreciated by 0.31% to ₦1,545 per US dollar. However, the parallel market rate remained weaker at ₦1,570 per dollar, indicating persistent pressure on FX supply.

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