Summary:

—> Monetary Policy Rate: 27.00%.

—> Asymmetric Corridor: +250/-250 basis points around the MPR.

—> CRR of Deposit Money Banks: 45.00%.

—> CRR of Merchant Banks: 16.00%.

—> Liquidity Ratio: 30.00%.

—> CRR of non-TSA public sector deposits: 75.00% 

Market Implication

Fixed Income

The market already priced in a softer monetary stance, as reflected in the downward movement of yields across Nigerian Treasury Bills and FGN Savings Bonds. Looking ahead, yields may continue to drift lower, fluctuate within a narrow band, or consolidate around current levels. This dynamic could encourage portfolio rebalancing, with investors either moving funds into longer-dated bonds to lock in yields or reallocating capital into equities in search of superior returns.

Equities Market

Lower yields reduce the relative attractiveness of fixed income, encouraging capital rotation into equities. In addition, a lower discount rate used in valuing future cash flows has the potential to push fair value estimates higher, providing further upside for fundamentally strong companies. This environment sets the stage for sustained interest in the equity market, particularly among investors seeking growth opportunities.

Click here “September 2025 MPC Decision – Rates cut Amidst Stable Macro-Economic Environment” to view the full report.

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