Wealth Wednesday - Liquidity Pressures Persist as Banks Expand and Global LNG Supply Accelerates
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Market Overview
Welcome to today’s market update, where Nigerian fixed-income markets face renewed supply pressure from a large Treasury bills auction amid tight monetary conditions. Banking sector recapitalisation and expansion plans remain in focus, while energy markets position Nigeria to benefit from rising global LNG supply in 2026. Globally, cautious central bank policies and shifting energy trade flows continue to influence risk sentiment.
Nigerian News & Market Update
DMO to issue N1.15trn T-bills today:
Nigeria’s Debt Management Office (DMO) plans to issue ₦1.15 trillion in Treasury bills today, a move expected to keep yields high and market sentiment bearish amid excess supply and tight monetary conditions. - TheSun
Allianz $1billion fund to disburse 40% in Africa:
Allianz’s $1 billion Credit Emerging Markets fund, backed by UK investor BII and other DFIs, plans to disburse about 40% of its investments in Africa to support climate-focused development across emerging economies. - TheNation
FCMB Clears National Capital Threshold, Sets Sights on International Expansion:
FCMB Group has secured a national banking licence after surpassing the ₦200 billion capital requirement and is now raising additional funds to meet the ₦500 billion threshold for international expansion under CBN’s recapitalisation programme. - Thisday
Nigeria To Benefit As Global LNG Supply Set To Jump In 2026:
Nigeria is set to benefit in 2026 as a surge in global LNG supply lowers prices, boosts demand from Asia and Europe, and supports higher exports driven by improved gas output and projects like NLNG Train 7. - Channels
Nigeria Sectoral Indices Performance
The table below shows that the Sectoral performance was mixed in the short term, with most indices declining on a 1-day and week-to-date basis, led by losses in Insurance and Oil & Gas. Despite near-term softness, medium-term performance remains strong as all major indices posted solid MTD, QTD and YTD gains, driven by Insurance, Oil & Gas, and Banking stocks.
Overall, The Nigerian equity market trend remains firmly positive year-to-date.
Fixed Income (FGN Bonds)
Global News & Market Update
India’s Reliance to buy sanctions-compliant Russian oil in February and March:
India’s Reliance Industries will resume buying sanctions-compliant Russian crude in February and March after a brief pause, while continuing to diversify supplies toward Middle Eastern oil amid tightening sanctions. - Reuters
South African inflation ticks up but more rate cuts expected this year:
South Africa’s inflation edged up to 3.6% in December but remained well contained, keeping expectations intact for further interest rate cuts by the central bank in 2026. - Reuters
Indonesia central bank keeps rates unchanged amid rupiah weakness:
Indonesia’s central bank kept its key interest rates unchanged at 4.75% to support economic growth while stabilising the rupiah, which has come under pressure after hitting a record low. - Reuters
Global LNG supply set to jump in 2026, limiting prices and spurring demand:
Global LNG supply is set to surge in 2026, easing prices and boosting demand especially from China, India and Europe as new capacity from the U.S. and Qatar comes online. - Reuters
Indices, Commodities & Currencies
The table below depicts that the Global equities were mixed, with US indices largely positive while European markets softened and volatility (VIX) declined, signaling cautious but stable risk sentiment. Energy prices strengthened across crude oil and natural gas, while commodities showed divergence as metals were mixed and soft commodities remained volatile. In currencies, the US dollar eased slightly against major peers, reflecting balanced macro expectations amid steady growth and moderating inflation signals.
Fixed Income (USA Bonds)
Event
Conclusion
In the near term, elevated T-bill issuance may keep yields high and sentiment cautious in Nigeria’s fixed-income market. Banking stocks could attract selective interest as recapitalisation and regional expansion gather pace. Globally, easing inflation and expanding LNG supply may support growth-sensitive assets, but investors should remain alert to policy and liquidity risks.
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