GABS FINANCIAL MARKET REPORT FOR WEEK ENDED 05 DECEMBER 2025

WEEKLY MACRO ECONOMIC ACTIVITIES

• CBN Removes Cash Deposit Limits, Raises Withdrawal Threshold

The Central Bank of Nigeria (CBN) has removed limits on cashdeposits and raised the weekly cash withdrawal cap to N500,000 for individuals and N5m for corporates, from N100,000. Starting January 1, 2026, excess withdrawals will incur charges: 3% for individuals and 5% for corporates, shared with banks. ATM withdrawals remain capped at N100,000 daily. The rules exclude government accounts, but exemptions for embassies and donor agencies are no longer available. The aim is to lower cash management costs, improve security, curb money laundering, and encourage electronic payments.

• Nigeria’s Q3 2025 GDP Growth Slows, FX Market Stabilises

CBN Governor Olayemi Cardoso said Nigeria’sGDP grew 3.98% in Q3 2025, up from 3.86% in Q3 2024 but 0.25% points below Q2 2025. Growth was driven by crop production, ICT, real estate, and financial services. Cardoso noted stability in the foreign exchange market, a 7-year high in reserves at US$46.7bn, and a 66.7% rise in diaspora remittances. Clearing a US$7bn FX backlog boosted investor confidence, with foreign inflows reaching US$20.98bn in the first ten months, a 70% increase from 2024. 

• Nigeria’s PMI Shows 12th Month of Growth

The Central Bank of Nigeria (CBN) says the CompositePMI rose to 56.4 index points in November 2025, marking the twelfth consecutive month of expansion. Sector performance: Industry 54.2, Services 56.8, Agriculture 58.2, all showing sustained growth. Agriculture saw the highest input cost pressures, while services remained stable. The report highlights broad-based economic growth across key sectors as Nigeria heads toward the year-end.

EQUITIES

The Nigerian bourse wrapped up the first week of December on a positive note, extending the previous sessions' gains, with the benchmark All-Share Index (ASI) up 1.08% intraday and closing at 147,040.07 points on Friday, up from 145,476.15 points on Thursday. Market sentiment closed positive, with 36 gainers against 16 decliners. As such, investors' wealth rose by N996.84bn, with market capitalisation closing at N93.72trn, while the year-to-date (YTD) return increased to 42.86%. 

Friday’s gain was driven by renewed interest in UACN (+10.00%), TRANSCOHOT (+9.71%), IKEJAHOTEL (+8.74%), EUNISELL (+7.54%), NB (+7.14%), DANGCEM (+4.57%), ACCESSCORP (+2.87%),  ZENITHBANK (+2.81%), TRANSCORP (+2.56%), UBA (+2.17%), GTCO (+1.14%), PZ (+1.13%), DANGSUGAR (+0.19%), and 23 others. UACN led the gainers’ list, while UNIONDICON led the losers’ list. ZENITHBANK closed with the highest volume and value, with 59.46m units traded, amounting to N3.64bn.

FIXED INCOME

Treasury Bills

During the week, the NTB secondary market experienced a volatile and positive sentiment, driven mainly by robust liquidity surplus in the financial system various market update like the NTB auction and revised auction calendar. The week began on a calm note as investors focus on the mid-week NTB auction of ₦700 billion. Notably, the NTB auction eventually cleared higher with an allotment of ₦709.6 billion from a subscription of ₦774.8 billion, while the stop rate on the 354-days tenor increased by 146bps to 17.50% from 16.04% at the previous auction. As the week progresses, the sentiment remained cautious but slightly positive despite the release of the revised NTB issuance calendar by the DMO, which signalled increased expected outflows from NTB PMAs in 2025.

Bond

Over the week, the domestic FGN Bond market traded with a broadly cautious tone throughout the week. Activity opened on a subdued note, with mild buying interest concentrated at the short-to-mid segment of the curve, while the long end experienced limited flows and marginal sell-offs. This calm trading pattern continued into mid-week, with yields largely steady as investors shifted focus to the NTB auction. Market conditions shifted slightly on thereafter, as a mixed but mostly bearish session emerged. Repricing in the mid-tenor segment—driven by the outcome of the NTB PMA and the release of the revised NTB auction calendar—pushed yields higher, most notably on the 20-Nov-29, 23-Jul-29 and 21-Feb-31 bonds which rose significantly by 19bps (16.02%), 42bps (16.27%) and 62bps (16.49%), respectively.