Nigeria’s Market Update [Week Ended September 12th, 2025]

The Central Bank of Nigeria released its Purchasing Managers’ Index Report for August 2025

Last week, the Central Bank of Nigeria shared its Purchasing Managers’ Index [PMI] report for August 2025. Nigeria’s economy continued to show signs of resilience. The Central Bank’s PMI, a key measure of economic activity, stood at 51.7 points. What this means in simple terms is that the economy has been expanding for nine straight months, since any reading above 50 signals growth.

Out of 36 areas surveyed, 22 showed improvement in business activities, but the story isn’t the same across all sectors. The services industry, covering areas like banking and telecommunications, remained strong at 51.9 points. This sector has been the steady engine of Nigeria’s economy, keeping the growth momentum alive. On the other hand, the industrial sector tells a different tale. It slipped to 49.1 points, falling below the growth threshold. That drop signals contraction, with factories seeing weaker production, fewer new orders, and declining employment.

Equities Market Update

The Nigerian stock market bounced back last week, putting an end to its earlier losing streak. The All-Share Index (ASI) gained 1.13%, closing at 140,545.69 points, while market capitalization rose to ₦88.92 trillion. Trading activity also improved, as investors exchanged 3.19 billion shares, compared to 3.12 billion the week before, with the total value of trades climbing to ₦99.69 billion from ₦90.30 billion.

Sectoral Performances

Performance across different sectors was broadly positive.

• Insurance: The insurance sector led the rally, rising by 2.45% thanks to strong demand for stocks like Regency Alliance (+27.69%) and Royal Exchange (+22.34%).
• Oil and Gas: The Oil and gas index also wasn’t far behind, climbing 2.38%, supported by gains in Aradel (+6.61%) and Oando (+1.80%).
• Banking: The Banking sector continued to show resilience, advancing by 1.68%, with top-tier banks such as Zenith (+4.78%), UBA (+4.17%), and Access Holdings (+3.47%) pushing the index higher.
• Consumer Goods: The Consumer goods sector added 0.98%, buoyed by renewed interest in Champion Breweries (+13.33%) and Tantalizers (+12.61%).
• Industrial Goods: Industrial goods index tracked overall market momentum with a 1.13% gain, largely driven by WAPCO (+13.27%).

Overall, market breadth was much stronger than the previous week—70 stocks closed higher, while only 22 declined—a clear sign of broad investor confidence.

Fixed Income Update

System liquidity remained high throughout the week, closing at ₦2.09 trillion, largely supported by placements in the CBN’s Standing Deposit Facility (SDF) and other inflows into the market. Despite this abundance of cash, interbank lending rates were steady, with the Overnight Policy Rate (OPR) holding firm at 26.50%.

The bond market began the week quietly, as investors remained cautious. However, by mid-week, some interest emerged, particularly in the short-to-mid section of the curve. That momentum didn’t last, as sentiment turned more cautious heading into Friday. Still, bond yields eased slightly, with the:

• Three-year bond settling at 16.97%, down 63 basis points for the week
• The seven-year bond at 16.75%, down 67 basis points.

In the treasury bills space, trading was mixed. The 182-day bill dipped by 16 basis points to 18.77% following intermittent demand, while the one-year bill moved higher to 20.67%, up 72 basis points, as investors pushed for stronger returns. Meanwhile, the OMO market maintained a mildly bullish tone, with yields across most maturities continuing to decline on the back of consistent buy-side interest.

What Will Shape Markets in the Week Ahead

Equities

The outlook for stocks remains positive. Strong inflows into the banking sector and steady demand for fundamentally sound companies suggest investors will continue to favour names that have already delivered solid performances this year. Overall, sentiment is constructive, with buy-side activity expected to stay firm.

Fixed Income

The focus this week will be on key events: the inflation report on Monday and the NTB auction on Wednesday. With liquidity in the system still elevated, the CBN may step in with an OMO auction to absorb some of the excess cash. This could influence how yields move. Against this backdrop, investors are likely to maintain a cautious stance, balancing the abundant liquidity with these upcoming market drivers.