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Nigeria’s financial markets have offered investors a wide array of opportunities across fixed income, equities, and corporate debt instruments in the early weeks of February 2026. The breadth of offerings, coupled with evolving market sentiment, reflects both the resilience of the domestic capital market and the increasingly sophisticated toolkit available to investors seeking diversified exposure. For portfolio managers and individual investors alike, the combination of government securities, corporate bonds, and commercial paper provides a diversified approach to income generation, risk management, and medium-term capital growth.
The week’s fixed-income activity commenced with the Federal Government’s Savings Bond issuance. The Debt Management Office (DMO) opened subscriptions for the monthly offer across two tenors: a two-year and a three-year bond. The 2-year bond carries a yield of 14.356 percent per annum, while the 3-year tenor offers a slightly higher yield of 15.356 percent per annum. These instruments, paid quarterly and exempt from tax, remain attractive to risk-averse investors seeking predictable cash flows and capital preservation. The low minimum subscription of N5,000 further ensures accessibility, allowing retail investors to participate in government-backed fixed-income investments that serve as a hedge against market volatility.
From a strategic perspective, Savings Bonds are more than just instruments for conservative investors. They function as essential tools for aligning medium-term savings objectives with anticipated interest rate movements. Given that the bonds are also listed on the Nigerian Exchange (NGX) and eligible as loan collateral, investors gain the flexibility to manage liquidity without fully holding the instruments to maturity. In a market where interest rate expectations and inflation dynamics influence investment decisions, these government securities serve as anchor instruments for portfolios, offering relative stability against more volatile equity or corporate debt exposures.
Parallel to the Savings Bond issuance, the Central Bank of Nigeria facilitated a Treasury Bills auction totalling N1.15 trillion across standard maturities of 91-day, 182-day, and 364-day tenors. Analysts project a moderate downward trend in stop rates due to the abundant liquidity in the banking system, which stood at N2.24 trillion as of February 3, 2026. Maturing Open Market Operations (OMOs) instruments totaling N1.03 trillion further support a competitive auction environment. Expected yields for the short, medium, and long-term tenors range from 15.30 percent to 17.30 percent, providing investors with multiple options for balancing yield and duration preferences.
Treasury Bills remain particularly valuable to investors seeking low-risk, liquid instruments with short investment horizons. The real returns, though slightly negative when adjusted for inflation, are supported by sovereign guarantees and the opportunity for predictable income streams. T-bills are commonly used for portfolio diversification and cash management, allowing investors to tactically deploy surplus funds while mitigating credit and market risk. Their zero-default risk makes them a reliable component of balanced investment strategies, especially for conservative and institutional investors.
Beyond government-backed instruments, the corporate debt space continues to expand, offering higher yield potential for investors willing to assume incremental risk. The FCMB-TLG Private Debt Fund Series 2, with up to N20 billion in capital raise, represents a targeted opportunity for high-net-worth individuals (HNIs) and qualified institutional investors (QIIs) to access structured private debt instruments. The Fund builds on the successful performance of Series 1 and provides a vehicle for investors to gain exposure to fixed-income instruments that combine credit assessment, active portfolio management, and medium-term income potential.
Corporate bonds and commercial papers issued by leading Nigerian companies further enrich the fixed-income landscape. For instance, Dangote Sugar Plc’s Series 12 Commercial Paper issuance of N96.67 billion under its N300 billion programme provides short-dated, high-yield options for investors looking to leverage corporate creditworthiness. Similarly, the listing of the 7-year FGN Roads Sukuk Company Plc bond on the NGX underscores the increasing use of Islamic finance instruments to access both domestic and international investor bases. Such offerings not only diversify the fixed-income universe but also reinforce the trend of tapping alternative sources of capital to support business growth and operational expansion.
The equity market, meanwhile, has demonstrated improved sentiment, particularly in sectors benefiting from macroeconomic recovery and strategic operational initiatives. Rights issues remain a key avenue for investors to increase participation in high-performing companies while contributing to capital growth and expansion plans. Eterna Plc’s ongoing rights issue of N21.52 billion exemplifies this trend. The offering allows existing shareholders to increase their equity holdings and support the company’s downstream petroleum distribution strategy. The raised capital is earmarked for network expansion, working capital financing, and balance sheet strengthening—critical levers in a sector facing margin compression amid subsidy adjustments and foreign exchange volatility.
Similarly, Neimeth International Pharmaceuticals Plc has applied for approval and listing of a Rights Issue of over 610 million ordinary shares at N4.00 per share. The structure of one new share for every seven held reflects a proportional opportunity for shareholders to enhance their participation in the company’s growth. Rights issues such as these provide investors with a pathway to capitalize on operational improvements, market share gains, and strategic initiatives that drive medium-term earnings potential.
For investors, the combination of government securities, corporate bonds, commercial papers, and rights issues provides a multifaceted toolkit for constructing diversified portfolios. Government-backed instruments offer security, liquidity, and predictable income, while corporate bonds and commercial paper introduce higher yields and exposure to corporate credit risk. Equities and rights issues add growth potential, sector-specific exposure, and the opportunity to participate in company expansion strategies. Together, these instruments enable investors to tailor portfolios according to risk appetite, investment horizon, and income objectives.
In addition to the traditional investment instruments, the Nigerian Exchange has recorded significant market activity across unlisted equities through the NASD OTC Exchange. The NASD Securities Index (NSI) closed bullish, reflecting a modest gain of 0.09 percent, albeit on lower trading volumes of 2.5 million shares valued at N17.72 million. The activity demonstrates that even unlisted securities provide opportunities for investors willing to explore less conventional avenues of capital appreciation. While the NASD OTC market may not offer the same liquidity as listed equities, it represents a strategic segment for investors seeking portfolio diversification and potential upside in niche companies.
Amid these market developments, the insurance sector has also emerged as a key area of investor interest. Companies like AIICO Insurance have posted strong full-year results, with pretax profits rising significantly year-on-year, driven by both underwriting and investment activities. Such performance signals resilience within the financial services sector and the potential for capital appreciation, especially when considered alongside ongoing rights issues and recapitalization initiatives by mid-tier insurers such as Universal Insurance Plc and Linkage Assurance Plc. The latter has announced a 12.3 billion share rights issue, further reflecting the sector’s active pursuit of enhanced capital bases and improved operational scale.
The intersection of government securities, corporate debt, and equity rights issues presents a compelling narrative for portfolio construction. Investors are able to calibrate exposure based on risk, liquidity preference, and income needs. Fixed-income instruments, whether sovereign or corporate, offer predictable yields and serve as portfolio anchors. Equities, particularly rights issues and growth-focused sectors, provide avenues for capital gains and strategic participation in expanding companies. When combined, these asset classes create a resilient portfolio structure capable of weathering market volatility while capturing growth across multiple dimensions of the Nigerian economy.
Market sentiment has also been reinforced by strong performance in select listed equities. In mid-week trading, the NGX All-Share Index rose by 1.28 percent intraday, driven by notable gains in stocks such as Berger Paints, FirstHoldCo, ETI, SkyAVN, WAPCO, CWG, NASCON, and others. Investors’ wealth increased by N1.37 trillion, with the market capitalization closing at N107.86 trillion. The broad-based rally illustrates the depth of liquidity, market participation, and confidence in selected sectors. Stocks reaching 52-week highs, including DAARCOMM, BERGER, RTBRISCOE, AbbeyBDS, and Univinsure, further underscore the attractiveness of the equity space as a complement to fixed-income investments.
The confluence of these factors—sovereign-backed bonds, corporate debt instruments, commercial papers, rights issues, and strong equity performance—paints a favorable picture for Nigerian investors in February 2026. The diverse investment avenues enable tactical portfolio allocation, allowing investors to optimize returns while managing risk. Conservative investors can leverage Savings Bonds and Treasury Bills as reliable income sources, whereas risk-tolerant investors may seek enhanced yields and capital appreciation through corporate debt and equities.
Furthermore, the current macroeconomic backdrop—including interest rate trends, liquidity conditions, and inflation dynamics—plays a central role in shaping investment decisions. For fixed-income instruments, yields remain attractive relative to international benchmarks, even as real returns are moderated by inflation. In the equity space, improved corporate earnings, strategic expansions, and capital-raising initiatives provide potential upside for investors able to participate in rights issues or select growth stocks. Combined with the options available in the unlisted market and alternative debt funds, investors have the flexibility to build diversified, resilient portfolios aligned with both short-term objectives and long-term wealth accumulation goals.
In conclusion, the Nigerian capital market in February 2026 offers a well-rounded suite of investment opportunities, spanning low-risk government securities, higher-yield corporate bonds and commercial papers, equity rights issues, and niche unlisted instruments. For investors, the combination of these asset classes provides a comprehensive toolkit for portfolio construction, offering exposure across different maturities, risk profiles, and income streams. Strategic allocation across these instruments can enhance portfolio resilience, balance income generation with growth potential, and allow investors to capitalize on Nigeria’s evolving economic and corporate landscape. As liquidity remains ample and market sentiment supports selective equity participation, investors positioned to exploit these opportunities may benefit from both income stability and capital appreciation in the near- to medium-term
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