Nigeria’s fixed-income market rallied as easing liquidity pushed Treasury bill and bond yields lower despite tight monetary policy.
Nigeria’s fixed-income market strengthened on February 5, 2026, as yields on Treasury bills and Federal Government bonds declined across key maturities, lifting the FMDQ debt market to ₦99.30 trillion.
Data from FMDQ Securities Exchange showed that improved system liquidity and reduced dependence on aggressive short-term issuance supported yield compression, easing government borrowing costs even as the Central Bank of Nigeria maintained a tight policy stance.
Investor demand remained strong across short-, mid-, and selected long-tenors, driven by liquidity inflows from maturing instruments that outweighed the impact of monetary tightening. The sharpest yield declines were seen in Treasury bills maturing between October and December 2026, while FGN bonds due between 2027 and 2035 also closed lower.
Ultra-long bonds beyond 2040 were largely flat, reflecting continued caution over long-term inflation and fiscal risks. Overall, the trend signals improving liquidity conditions and resilient demand for government securities.
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