RFA Breakfast Paper - October 22, 2026
CBN Sells ₦2.63trn OMO as Stop Rates Rise
The Central Bank of Nigeria sold ₦2.63 trillion of OMO bills at its 22 October auction, ₦628.5 billion (31%) above its ₦2 trillion offer, on bids of ₦2.73 trillion (1.36x cover). Stop rates rose on both tenors: the 180-day bill cleared at 17.14%, about 20bps above the comparable 6 October rate, and the 138-day bill at 17.63%, 41bps higher. The sale exceeded the week's projected ₦2.07 trillion of OMO maturities by about ₦562 billion, with banks still holding more than ₦6 trillion at the CBN's deposit window. The CBN is using OMO to drain surplus liquidity and support the naira after September's MPC rate cut, and the 364-day T-bill stop rate posted its first rise since August at 15.90% on 14 October. For investors, rising stop rates point to firmer short-end naira yields that support carry and FX stability, but tighter liquidity can weigh on equity inflows.
Chip Rout Sinks Nasdaq 2.60%
U.S. stocks fell on Thursday as AI funding worries returned. The S&P 500 lost 1.21% to 7,663.43, its worst day since July, and the Nasdaq dropped 2.60% to 26,008.86, while the Dow was flat. Chip stocks led the decline after Lam Research warned of supply constraints into 2027 and Meta disclosed higher spending commitments; the Philadelphia Semiconductor Index fell 6.72%. Investors rotated into staples, utilities and Treasuries, and the 10-year yield fell 17bps to 4.96%. The move shows rising doubt over AI returns ahead of next week's Fed meeting.
Bank Losses Edge NGX Down 0.07%
The NGX All-Share Index eased 159.55 points, or 0.07%, to 244,956.94 on Thursday, its second straight loss and lowest close of the week, as market capitalisation fell ₦103.6 billion to ₦159.05 trillion. Breadth was negative, with 22 decliners against 16 gainers. The NGX Banking Index slipped 0.16% to 2,452.40 on losses in Zenith Bank, GTCO, UBA and Wema Bank, while Oando and NGX Group also weighed. AVA Capital (+9.85%) and PZ Cussons (+8.58%) led gainers; Thomas Wyatt (-10.00%) led losers. Activity held at 360.7 million shares in 31,355 deals. The muted move suggests investors are waiting as higher OMO yields compete for funds.
