LAGOS – The Association of Issuing Houses of Nigeria (AIHN) has reported that the Central Bank of Nigeria’s aggressive interest rate hikes significantly boosted investor demand for fixed income instruments throughout 2024.
According to AIHN President Kemi Awodein, the CBN’s monetary policy tightening, which saw eight rate increases totaling 875 basis points, drove substantial activity in the fixed income market despite crowding out private sector borrowing.
“The key drivers for fixed income instruments in 2024 included CBN’s aggressive interest rate hikes to combat inflation,” Awodein stated during the association’s Annual General Meeting in Lagos.
Data revealed that approximately N12.83 trillion in Open Market Operation bills and Treasury bills were sold in 2024, compared to N716.7 billion for the entire previous year.
The high-interest environment also stimulated notable activity in the banking sector’s equity capital raises, particularly following the CBN’s March 2024 recapitalization announcement that prompted several institutions to strengthen their capital bases.
Despite the challenging rate environment, the year saw renewed investor confidence and increased capital inflows, supported by government policies and the successful issuance of Nigeria’s first domestic dollar bond by the Debt Management Office.
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