What to Expect from Nigeria’s Markets This Week

Nigeria’s headline inflation dropped to 15.10% last week, marking ten consecutive months of declining inflation. 

This is a positive development, but the relief is not being felt equally across the board. Service sector prices remain stubbornly high, and this is the category that affects households and businesses most directly through costs like transport, education, and healthcare

The Naira Got Stronger

The naira gained value last week in both the official and parallel markets. This was mainly because more foreign exchange became available. 

The Central Bank of Nigeria released more dollars into the market, and the country’s external reserves also grew. 

These developments helped improve confidence in the naira, though it is too early to say whether this improvement will last.

Commodities Were a Mixed Bag

Global commodity markets had a positive week. Oil prices and precious metals recovered and closed higher after a period of weakness. 

Inside Nigeria, the picture was less consistent. Some goods faced supply shortages while demand for others slowed down. 

Global prices provided some support, but local conditions still had the greatest influence on day-to-day price movements.

Fixed Income Markets Remained Attractive

Yields on Treasury bills and other government securities fell during the week. This happened because investor demand was strong, particularly at the Treasury Bills auction. The interbank lending market also eased slightly.

Investors continued to show a clear preference for government securities, keeping demand high, especially for medium-term instruments.

The Stock Market Kept Rising

The stock market rose for the third week in a row. Gains were recorded across most sectors, and trading volumes increased noticeably. This points to a growing willingness among local investors to take on risk and invest in equities.

What to Watch This Week

The most important event this week is the Central Bank of Nigeria’s Monetary Policy Committee meeting on February 23 and 24, 2026. 

If the committee decides to cut interest rates, some investors may move money out of fixed income and into stocks, which could push the stock market even higher.

If the naira stays stable and foreign exchange conditions continue to improve, investor confidence should remain supported. In the bonds and bills market, yields may continue to fall as investors prepare for lower interest rates and look for good value.