…The overnight lending rate contracted by 4bps to 22.8% following inflows from OMO maturities (N594.11 billion)
TUE DEC 30 2025-theGBJournal| The Naira strengthened on Tuesday as year-end holidays have kept trading volume light. The official FX rate appreciated by 1.1% to N1,435.00/US$1.
This momentum is carried from last week ahead of the Christmas break when the naira closed at N1,443.38/US$ at NFEM, up 1.46% on the week.
Weekly flow data show that total FX inflows declined sharply to about US$74.8 million, down roughly 95% week-on-week from US$1.46 billion previously.
Local sources dominated supply (70% or US$52.0 million ), led by the CBN (US$19.6 million) and exporters/importers (US$16.5 million).
In contrast, international inflows remained muted at US$23.0 million, with foreign portfolio investors contributing about US$16.9 million, largely through fixed-income instruments investing.
At the fixed market, the NTB secondary market traded on a bullish note as the average yield contracted by 7bps to 17.7%.
Across the curve, the average yield contracted at short (-1bp), mid (-1bp) and long (-15bps) segments driven by the demand for the 86DTM (-1bp), 170DTM (-1bp) and 338DTM (-97bps) bills, respectively. Similarly, the average yield contracted by 12bps to 22.0% in the OMO segment.
Elsewhere, the FGN bond secondary market traded with bullish sentiments, as the average yield contracted by 12bps to 16.4%. Across the curve, the average yield contracted at the short (-29bps), mid (-3bps) and long (-1bp) segments driven by the buying interests in the JAN-2026 (-233bps), APR-2032 (-12bps)and JUN-2053 (-4bps) bonds, respectively.
The overnight lending rate contracted by 4bps to 22.8% following inflows from OMO maturities (N594.11 billion).
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