Nigerian banks generated a record ₦6.68 trillion from investment securities in the 2025 financial year, a 25.24% jump from ₦5.33 trillion in 2024. However, the surge in fixed-income returns shows signs of moderation as the Central Bank of Nigeria (CBN) pivots toward an easing monetary policy.
As the apex bank reduces the Monetary Policy Rate (MPR) to 26.5% and the fixed-income yield curve flattens, the “free money” era of ultra-high returns on government debt is closing.
When debt yields were attractive, Nigerian banks relied on these instruments over lending to businesses in the real sector of the economy as the central bank aggressively hiked interest rates to curb red-hot inflation.
However, the Apex Bank has decided to start cutting interest rates as inflationary pressure eases while bond yields decline.
In early 2026, the Central Bank of Nigeria (CBN) actively managed Treasury bill (T-bill) rates, with significant activity including raising 91-day rates to 15.95 percent by April and witnessing high oversubscription.
In February 2026, the Central Bank of Nigeria (CBN) cut its Monetary Policy Rate (MPR) by 50 basis points, reducing it to 26.5% from 27%. This decision, aiming to support economic growth, was driven by eleven consecutive months of declining inflation and improved foreign exchange stability.
The yield on Nigeria 10Y Bond Yield held steady at 14.95 percent on April 29, 2026. Over the past month, the yield has edged up by 0.10 points, though it remains 5.06 points lower than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity.
Zenith Bank earned N1.63 trillion income from Treasury bills, which is 57.88 percent higher than 2024’s N1.03 trillion, according to data gathered by MoneyCentral..
Access Bank generated N1.07 trillion in income from investment securities as of December 2025, which is 15.31 percent lower than 2024’s N1.26 trillion.
Guaranty Trust Holding Company (GTCO) income from government securities and bonds was up 34.82 percent to N808.01 billion, from N599.31 billion as at December 2024.
FirstHoldCo generated N962.38 billion income from treasury bills in 2025, which is 13.16 percent higher than 2024’s N850.45 billion.
United Bank for Africa (UBA) realised N1.45 trillion in income from government securities in 2025, which is 29.44 percent higher than 2024’s.
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