CBN Reports 1.6% Decline in Broad Money Supply for September 2025
This week, the Central Bank of Nigeria (CBN) released new data showing that Nigeria’s broad money supply (M3) fell slightly in September 2025. It dropped by 1.6% to ₦117.78 trillion, down from ₦119.69 trillion in August.
Despite this monthly decline, M3 was still 7.6% higher than the ₦109.41 trillion recorded in September 2024 — meaning that while short-term liquidity tightened, overall money growth remains positive over the year.
The report came shortly after the CBN’s Monetary Policy Committee cut interest rates by 50 basis points to 27% during the same period.
The drop in money supply was mainly due to a 2.5% fall in net domestic assets, which slipped to ₦76.12 trillion from ₦78.10 trillion in August. On the other hand, net foreign assets rose slightly by 0.2% to ₦41.66 trillion, up from ₦41.59 trillion the previous month and have more than doubled from ₦19.50 trillion a year ago.
Similarly, M2 (intermediate money) — which includes cash, demand deposits, and savings — also declined by 1.6% to ₦117.77 trillion in September. However, it was still 7.7% higher year-on-year compared to ₦109.40 trillion in September 2024.
Lastly, M1 (narrow money) — the most liquid form of money, such as cash and demand deposits — fell by 0.7% to ₦39.11 trillion in September, from ₦39.39 trillion in August. Still, it grew by 9.1% compared to ₦35.86 trillion in September 2024.
Equities Market Update
The NGX Finally Took a Breather
After eight straight weeks of gains, the Nigerian stock market finally took a breather as the NGX All-Share Index (NGXASI) fell by 0.97% week-on-week (w/w) to close at 154,123.62 points. This decline translated to a ₦964.0 billion loss in market value, bringing total market capitalization down to ₦97.83 trillion.
Despite the bearish close, trading activity remained strong — investors traded 7.48 billion shares worth ₦145.43 billion, up significantly from 3.70 billion shares valued at ₦129.89 billion in the previous week.
Sector Highlights
- Banking: The banking sector dipped 2.11% w/w, pressured by selloffs in UBA (–4.64%), Fidelity Bank (–4.28%), and GTCO (–3.24%). However, gains in Stanbic (+4.48%) and FCMB (+1.42%) helped cushion the fall.
- Consumer Goods: The sector fell 2.73% w/w, dragged down by sustained sell pressure on Cadbury (–13.72%) and Honeywell Flour (–13.04%).
- Insurance: Insurance stocks shed 3.47% w/w as losses in AXA Mansard (–13.75%), SUNU Assurance (–13.27%), and Lasaco (–10.34%) outweighed minor upticks in Univ. Insurance (+2.56%) and Linkage Assurance (+2.04%).
- Industrial Goods: The sector declined 1.02%, largely due to weakness in Beta Glass (–10.00%) and WAPCO (–3.45%).
- Oil & Gas: This was the only sector to close positive, gaining 0.30%, boosted by renewed interest in Oando (+11.87%).
In summary, after weeks of bullish momentum, the equities market saw a mild pullback, driven mostly by selloffs in key banking and consumer stocks — while oil and gas provided a small but notable lift.
Fixed Income Update
System liquidity started the final trading day of the week on a weaker note, closing with a positive balance of ₦2.47 trillion, down from ₦3.12 trillion the previous week.
As a result, short-term rates edged higher:
- Overnight (ON) rate: rose slightly by 3bps to 24.86%
- Open Repo (OPR) rate: held steady at 24.50%
CBN OMO Auction
The Central Bank of Nigeria (CBN) conducted an OMO auction on Friday, offering a total of ₦600 billion, split equally between 46-day and 60-day maturities. However, investor demand was weak, with total subscriptions of ₦359.28 billion.
The CBN only allotted ₦1.11 billion for the 60-day paper
No allotment was made for the 46-day paper
Consequently, no stop rate was recorded for the 46-day bill, while the 60-day stop rate came in at 21.70%
Secondary Market Trends
Yields in the secondary market moved higher, signaling a bearish tone overall.
Treasury Bills (NTBs)
Selling pressure pushed yields up across all tenors:
- 3-month: +46bps → 16.79%
- 6-month: +5bps → 17.37%
- 1-year: +44bps → 18.56%
FGN Bonds
Trading activity was quiet, though mild sell-offs were seen in select maturities:
- 3-year: +9bps → 16.22%
- 5-year: +209bps → 15.97%
- 7-year: +25bps → 15.85%
Other longer-term bonds remained unchanged.
Liquidity levels tightened this week, leading to higher short-term rates and rising yields across Treasury bills and bonds. Weak demand at the CBN’s OMO auction also reflected cautious investor sentiment amid elevated interest rate levels.
Market Outlook for the Coming Week
Equities
The new trading session is expected to open on a positive note, with strong buying interest likely in banking stocks. The key focus will be whether this momentum holds or if profit-taking emerges as traders look to lock in gains from recent bargain hunting.
Fixed Income
We expect a generally slow start to the week as investors look for guidance from the NTB auction on Wednesday. We expect system liquidity to influence trading activity in the local fixed income markets, and that it will remain robust barring any significant
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