Money markets

The overnight and OBB rates dropped to 31.83% and 29.17%, from 41.67% and 38.33% respectively as market liquidity eased slightly. Rates are expected to trend further downward today as the market anticipates liquidity inflows from the OMO bill maturity and monthly statutory disbursement this week.

Interbank spot: USD/NGN

Activity in the NIFEX market has remained muted, with the CBN being the major supplier of liquidity. NAFEX trade volume for yesterday rose to US$234.23 from
US$78.48bn, the previous day. The exchange rate has remained stable on the back of sustained interest in the Nigerian fixed income and equity markets. We expect the pair to continue to trade in the 360-362 range in the short term.

Fixed income

The fixed income market experienced yet another bullish day yesterday as yields dipped across the curve. Yields fell on most benchmark maturities at the short end of the curve as traders began to position ahead of anticipated liquidity inflow from the OMO maturity later this week. The FGN bond space saw demand persist on the day, spurred by interest from local institutional investors. The MPC maintained the status quo on all monetary indices after its two-day meeting yesterday.

The DMO will offer NGN50bn each of the 2021 and 2027 bonds at is bond auction today.

Our expectations are below:

  • 14.50% FGB Jul 2021 – 14.80%-15.00%
  • 16.2884% FGN Mar 2027 – 14.80%-15.00%

We expect to see yields drop at the short end of the curve, barring a significant liquidity event. Interest in the bond space should wane today due to more favorable yields at the auction.


OPEC needs to extend limits on oil output to help rein in the remaining excess in global supply, but isn’t considering making deeper cuts, the United Arab Emirates energy minister said. The group is talking about prolonging production curbs when its members meet at the end of the month and won’t discuss any increase in the size of the cuts, Energy Minister Suhail Al Mazrouei said on Monday in Abu Dhabi. About 158 million barrels in surplus oil inventories still need to be cleared, he told reporters.

RMB Nigeria indicative term deposit rates1

Note: 1. Indicative rates are gross of withholding tax (10%)
RMB Nigeria Note: The deposit placement is subject to the completion of onboarding forms (KYC) for RMB Nigeria, a compliance requirement from the Central Bank of Nigeria. Currencies available on request: ZAR/EUR/GBP.
International rating – RMB Nigeria is a wholly owned subsidiary of the FirstRand Bank [BB+ /Baa3] S&P and Moody’s respectively.