Nigeria’s fixed-income market is offering investors something that has been scarce in recent years – real returns that outpace the inflation rate.When investment returns beat the inflation rate, investors gain, as the value of their money grows in purchasing power terms, not just in nominal value. This is exactly what the Federal Government bonds and treasury bills now offer investors.Headline inflation fell to 15.91 per cent in June 2026 from 15.93 per cent in May, halting three straight months of increases, according to the National Bureau of Statistics showed.The slight decline has been enough to push the yields on some government debt instruments above the inflation rate, allowing investors to preserve and grow their purchasing power after a long period of negative real returns.The improvement, however, has not extended to all products. The latest FGN Savings Bond, targeted mainly at retail investors, still offers a maximum coupon of 15.716 per cent, leaving it marginally below the prevailing inflation rate.But higher sovereign borrowing costs have largely driven the return to positive real yields. At the June FGN bond auction, the January 2035 and April 2037 bonds cleared at marginal rates of 18.34 per cent and 18.35 per cent, translating to positive real returns of roughly 244 basis points above June’s inflation rate.Likewise, the 364-day treasury bill sold at the 15 July auction recorded a stop rate of 17.66 per cent, still remaining ahead of inflation.There is a stronger investor appetite as market participants reposition their portfolios.Treasury bill turnover increased 137.49 per cent to N1.51tn, while FGN bond turnover climbed 75.91 per cent to N1.20tn in the week ended 19 June, reflecting stronger trading activity across the sovereign debt market.Related NewsNigeria and the missed opportunities in $4bn steel industryNigeria can drive Africa’s largest exchange — PopoolaInvestors gain N1.755tn as NGX extends bullish run“Positive real returns make treasury bills and government bonds attractive again because investors are rewarded in real, inflation-adjusted terms,” said an emerging markets expert, Ike Ibeabuchi.The Financial Markets Dealers Association said pricing in the domestic fixed-income market continues to be shaped by inflation expectations and liquidity conditions, even as several major central banks around the world begin shifting towards monetary policy easing.Analysts, however, caution that the current period of attractive inflation-adjusted returns may be temporary. A former central banker, Chukwunonso Iheoma, estimates the Monetary Policy Rate to fall to 25.5 per cent by the last quarter of 2025.Standard Chartered, on the other hand, expects the MPR to decline to 25 per cent by the end of 2026. Chief economist, Razia Khan, said the bank now sees room for 150 basis points of monetary easing this year. An Abuja-based fixed income analyst, Joshua Tan, agreed with Khan, but stressed that impending higher energy prices could kibosh positive expectations about lower inflation and interest rate cuts this year.Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. When investment returns beat the inflation rate, investors gain, as the value of their money grows in purchasing power terms, not just in nominal value. This is exactly what the Federal Government bonds and treasury bills now offer investors.Headline inflation fell to 15.91 per cent in June 2026 from 15.93 per cent in May, halting three straight months of increases, according to the National Bureau of Statistics showed.The slight decline has been enough to push the yields on some government debt instruments above the inflation rate, allowing investors to preserve and grow their purchasing power after a long period of negative real returns.The improvement, however, has not extended to all products. The latest FGN Savings Bond, targeted mainly at retail investors, still offers a maximum coupon of 15.716 per cent, leaving it marginally below the prevailing inflation rate.But higher sovereign borrowing costs have largely driven the return to positive real yields. At the June FGN bond auction, the January 2035 and April 2037 bonds cleared at marginal rates of 18.34 per cent and 18.35 per cent, translating to positive real returns of roughly 244 basis points above June’s inflation rate.Likewise, the 364-day treasury bill sold at the 15 July auction recorded a stop rate of 17.66 per cent, still remaining ahead of inflation.There is a stronger investor appetite as market participants reposition their portfolios.Treasury bill turnover increased 137.49 per cent to N1.51tn, while FGN bond turnover climbed 75.91 per cent to N1.20tn in the week ended 19 June, reflecting stronger trading activity across the sovereign debt market.Related NewsNigeria and the missed opportunities in $4bn steel industryNigeria can drive Africa’s largest exchange — PopoolaInvestors gain N1.755tn as NGX extends bullish run“Positive real returns make treasury bills and government bonds attractive again because investors are rewarded in real, inflation-adjusted terms,” said an emerging markets expert, Ike Ibeabuchi.The Financial Markets Dealers Association said pricing in the domestic fixed-income market continues to be shaped by inflation expectations and liquidity conditions, even as several major central banks around the world begin shifting towards monetary policy easing.Analysts, however, caution that the current period of attractive inflation-adjusted returns may be temporary. A former central banker, Chukwunonso Iheoma, estimates the Monetary Policy Rate to fall to 25.5 per cent by the last quarter of 2025.Standard Chartered, on the other hand, expects the MPR to decline to 25 per cent by the end of 2026. Chief economist, Razia Khan, said the bank now sees room for 150 basis points of monetary easing this year. An Abuja-based fixed income analyst, Joshua Tan, agreed with Khan, but stressed that impending higher energy prices could kibosh positive expectations about lower inflation and interest rate cuts this year.Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. Headline inflation fell to 15.91 per cent in June 2026 from 15.93 per cent in May, halting three straight months of increases, according to the National Bureau of Statistics showed.The slight decline has been enough to push the yields on some government debt instruments above the inflation rate, allowing investors to preserve and grow their purchasing power after a long period of negative real returns.The improvement, however, has not extended to all products. The latest FGN Savings Bond, targeted mainly at retail investors, still offers a maximum coupon of 15.716 per cent, leaving it marginally below the prevailing inflation rate.But higher sovereign borrowing costs have largely driven the return to positive real yields. At the June FGN bond auction, the January 2035 and April 2037 bonds cleared at marginal rates of 18.34 per cent and 18.35 per cent, translating to positive real returns of roughly 244 basis points above June’s inflation rate.Likewise, the 364-day treasury bill sold at the 15 July auction recorded a stop rate of 17.66 per cent, still remaining ahead of inflation.There is a stronger investor appetite as market participants reposition their portfolios.Treasury bill turnover increased 137.49 per cent to N1.51tn, while FGN bond turnover climbed 75.91 per cent to N1.20tn in the week ended 19 June, reflecting stronger trading activity across the sovereign debt market.Related NewsNigeria and the missed opportunities in $4bn steel industryNigeria can drive Africa’s largest exchange — PopoolaInvestors gain N1.755tn as NGX extends bullish run“Positive real returns make treasury bills and government bonds attractive again because investors are rewarded in real, inflation-adjusted terms,” said an emerging markets expert, Ike Ibeabuchi.The Financial Markets Dealers Association said pricing in the domestic fixed-income market continues to be shaped by inflation expectations and liquidity conditions, even as several major central banks around the world begin shifting towards monetary policy easing.Analysts, however, caution that the current period of attractive inflation-adjusted returns may be temporary. A former central banker, Chukwunonso Iheoma, estimates the Monetary Policy Rate to fall to 25.5 per cent by the last quarter of 2025.Standard Chartered, on the other hand, expects the MPR to decline to 25 per cent by the end of 2026. Chief economist, Razia Khan, said the bank now sees room for 150 basis points of monetary easing this year. An Abuja-based fixed income analyst, Joshua Tan, agreed with Khan, but stressed that impending higher energy prices could kibosh positive expectations about lower inflation and interest rate cuts this year.Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. The slight decline has been enough to push the yields on some government debt instruments above the inflation rate, allowing investors to preserve and grow their purchasing power after a long period of negative real returns.The improvement, however, has not extended to all products. The latest FGN Savings Bond, targeted mainly at retail investors, still offers a maximum coupon of 15.716 per cent, leaving it marginally below the prevailing inflation rate.But higher sovereign borrowing costs have largely driven the return to positive real yields. At the June FGN bond auction, the January 2035 and April 2037 bonds cleared at marginal rates of 18.34 per cent and 18.35 per cent, translating to positive real returns of roughly 244 basis points above June’s inflation rate.Likewise, the 364-day treasury bill sold at the 15 July auction recorded a stop rate of 17.66 per cent, still remaining ahead of inflation.There is a stronger investor appetite as market participants reposition their portfolios.Treasury bill turnover increased 137.49 per cent to N1.51tn, while FGN bond turnover climbed 75.91 per cent to N1.20tn in the week ended 19 June, reflecting stronger trading activity across the sovereign debt market.Related NewsNigeria and the missed opportunities in $4bn steel industryNigeria can drive Africa’s largest exchange — PopoolaInvestors gain N1.755tn as NGX extends bullish run“Positive real returns make treasury bills and government bonds attractive again because investors are rewarded in real, inflation-adjusted terms,” said an emerging markets expert, Ike Ibeabuchi.The Financial Markets Dealers Association said pricing in the domestic fixed-income market continues to be shaped by inflation expectations and liquidity conditions, even as several major central banks around the world begin shifting towards monetary policy easing.Analysts, however, caution that the current period of attractive inflation-adjusted returns may be temporary. A former central banker, Chukwunonso Iheoma, estimates the Monetary Policy Rate to fall to 25.5 per cent by the last quarter of 2025.Standard Chartered, on the other hand, expects the MPR to decline to 25 per cent by the end of 2026. Chief economist, Razia Khan, said the bank now sees room for 150 basis points of monetary easing this year. An Abuja-based fixed income analyst, Joshua Tan, agreed with Khan, but stressed that impending higher energy prices could kibosh positive expectations about lower inflation and interest rate cuts this year.Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. The improvement, however, has not extended to all products. The latest FGN Savings Bond, targeted mainly at retail investors, still offers a maximum coupon of 15.716 per cent, leaving it marginally below the prevailing inflation rate.But higher sovereign borrowing costs have largely driven the return to positive real yields. At the June FGN bond auction, the January 2035 and April 2037 bonds cleared at marginal rates of 18.34 per cent and 18.35 per cent, translating to positive real returns of roughly 244 basis points above June’s inflation rate.Likewise, the 364-day treasury bill sold at the 15 July auction recorded a stop rate of 17.66 per cent, still remaining ahead of inflation.There is a stronger investor appetite as market participants reposition their portfolios.Treasury bill turnover increased 137.49 per cent to N1.51tn, while FGN bond turnover climbed 75.91 per cent to N1.20tn in the week ended 19 June, reflecting stronger trading activity across the sovereign debt market.Related NewsNigeria and the missed opportunities in $4bn steel industryNigeria can drive Africa’s largest exchange — PopoolaInvestors gain N1.755tn as NGX extends bullish run“Positive real returns make treasury bills and government bonds attractive again because investors are rewarded in real, inflation-adjusted terms,” said an emerging markets expert, Ike Ibeabuchi.The Financial Markets Dealers Association said pricing in the domestic fixed-income market continues to be shaped by inflation expectations and liquidity conditions, even as several major central banks around the world begin shifting towards monetary policy easing.Analysts, however, caution that the current period of attractive inflation-adjusted returns may be temporary. A former central banker, Chukwunonso Iheoma, estimates the Monetary Policy Rate to fall to 25.5 per cent by the last quarter of 2025.Standard Chartered, on the other hand, expects the MPR to decline to 25 per cent by the end of 2026. Chief economist, Razia Khan, said the bank now sees room for 150 basis points of monetary easing this year. An Abuja-based fixed income analyst, Joshua Tan, agreed with Khan, but stressed that impending higher energy prices could kibosh positive expectations about lower inflation and interest rate cuts this year.Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. But higher sovereign borrowing costs have largely driven the return to positive real yields. At the June FGN bond auction, the January 2035 and April 2037 bonds cleared at marginal rates of 18.34 per cent and 18.35 per cent, translating to positive real returns of roughly 244 basis points above June’s inflation rate.Likewise, the 364-day treasury bill sold at the 15 July auction recorded a stop rate of 17.66 per cent, still remaining ahead of inflation.There is a stronger investor appetite as market participants reposition their portfolios.Treasury bill turnover increased 137.49 per cent to N1.51tn, while FGN bond turnover climbed 75.91 per cent to N1.20tn in the week ended 19 June, reflecting stronger trading activity across the sovereign debt market.Related NewsNigeria and the missed opportunities in $4bn steel industryNigeria can drive Africa’s largest exchange — PopoolaInvestors gain N1.755tn as NGX extends bullish run“Positive real returns make treasury bills and government bonds attractive again because investors are rewarded in real, inflation-adjusted terms,” said an emerging markets expert, Ike Ibeabuchi.The Financial Markets Dealers Association said pricing in the domestic fixed-income market continues to be shaped by inflation expectations and liquidity conditions, even as several major central banks around the world begin shifting towards monetary policy easing.Analysts, however, caution that the current period of attractive inflation-adjusted returns may be temporary. A former central banker, Chukwunonso Iheoma, estimates the Monetary Policy Rate to fall to 25.5 per cent by the last quarter of 2025.Standard Chartered, on the other hand, expects the MPR to decline to 25 per cent by the end of 2026. Chief economist, Razia Khan, said the bank now sees room for 150 basis points of monetary easing this year. An Abuja-based fixed income analyst, Joshua Tan, agreed with Khan, but stressed that impending higher energy prices could kibosh positive expectations about lower inflation and interest rate cuts this year.Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. Likewise, the 364-day treasury bill sold at the 15 July auction recorded a stop rate of 17.66 per cent, still remaining ahead of inflation.There is a stronger investor appetite as market participants reposition their portfolios.Treasury bill turnover increased 137.49 per cent to N1.51tn, while FGN bond turnover climbed 75.91 per cent to N1.20tn in the week ended 19 June, reflecting stronger trading activity across the sovereign debt market.Related NewsNigeria and the missed opportunities in $4bn steel industryNigeria can drive Africa’s largest exchange — PopoolaInvestors gain N1.755tn as NGX extends bullish run“Positive real returns make treasury bills and government bonds attractive again because investors are rewarded in real, inflation-adjusted terms,” said an emerging markets expert, Ike Ibeabuchi.The Financial Markets Dealers Association said pricing in the domestic fixed-income market continues to be shaped by inflation expectations and liquidity conditions, even as several major central banks around the world begin shifting towards monetary policy easing.Analysts, however, caution that the current period of attractive inflation-adjusted returns may be temporary. A former central banker, Chukwunonso Iheoma, estimates the Monetary Policy Rate to fall to 25.5 per cent by the last quarter of 2025.Standard Chartered, on the other hand, expects the MPR to decline to 25 per cent by the end of 2026. Chief economist, Razia Khan, said the bank now sees room for 150 basis points of monetary easing this year. An Abuja-based fixed income analyst, Joshua Tan, agreed with Khan, but stressed that impending higher energy prices could kibosh positive expectations about lower inflation and interest rate cuts this year.Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. There is a stronger investor appetite as market participants reposition their portfolios.Treasury bill turnover increased 137.49 per cent to N1.51tn, while FGN bond turnover climbed 75.91 per cent to N1.20tn in the week ended 19 June, reflecting stronger trading activity across the sovereign debt market.Related NewsNigeria and the missed opportunities in $4bn steel industryNigeria can drive Africa’s largest exchange — PopoolaInvestors gain N1.755tn as NGX extends bullish run“Positive real returns make treasury bills and government bonds attractive again because investors are rewarded in real, inflation-adjusted terms,” said an emerging markets expert, Ike Ibeabuchi.The Financial Markets Dealers Association said pricing in the domestic fixed-income market continues to be shaped by inflation expectations and liquidity conditions, even as several major central banks around the world begin shifting towards monetary policy easing.Analysts, however, caution that the current period of attractive inflation-adjusted returns may be temporary. A former central banker, Chukwunonso Iheoma, estimates the Monetary Policy Rate to fall to 25.5 per cent by the last quarter of 2025.Standard Chartered, on the other hand, expects the MPR to decline to 25 per cent by the end of 2026. Chief economist, Razia Khan, said the bank now sees room for 150 basis points of monetary easing this year. An Abuja-based fixed income analyst, Joshua Tan, agreed with Khan, but stressed that impending higher energy prices could kibosh positive expectations about lower inflation and interest rate cuts this year.Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. Treasury bill turnover increased 137.49 per cent to N1.51tn, while FGN bond turnover climbed 75.91 per cent to N1.20tn in the week ended 19 June, reflecting stronger trading activity across the sovereign debt market.Related NewsNigeria and the missed opportunities in $4bn steel industryNigeria can drive Africa’s largest exchange — PopoolaInvestors gain N1.755tn as NGX extends bullish run“Positive real returns make treasury bills and government bonds attractive again because investors are rewarded in real, inflation-adjusted terms,” said an emerging markets expert, Ike Ibeabuchi.The Financial Markets Dealers Association said pricing in the domestic fixed-income market continues to be shaped by inflation expectations and liquidity conditions, even as several major central banks around the world begin shifting towards monetary policy easing.Analysts, however, caution that the current period of attractive inflation-adjusted returns may be temporary. A former central banker, Chukwunonso Iheoma, estimates the Monetary Policy Rate to fall to 25.5 per cent by the last quarter of 2025.Standard Chartered, on the other hand, expects the MPR to decline to 25 per cent by the end of 2026. Chief economist, Razia Khan, said the bank now sees room for 150 basis points of monetary easing this year. An Abuja-based fixed income analyst, Joshua Tan, agreed with Khan, but stressed that impending higher energy prices could kibosh positive expectations about lower inflation and interest rate cuts this year.Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. “Positive real returns make treasury bills and government bonds attractive again because investors are rewarded in real, inflation-adjusted terms,” said an emerging markets expert, Ike Ibeabuchi.The Financial Markets Dealers Association said pricing in the domestic fixed-income market continues to be shaped by inflation expectations and liquidity conditions, even as several major central banks around the world begin shifting towards monetary policy easing.Analysts, however, caution that the current period of attractive inflation-adjusted returns may be temporary. A former central banker, Chukwunonso Iheoma, estimates the Monetary Policy Rate to fall to 25.5 per cent by the last quarter of 2025.Standard Chartered, on the other hand, expects the MPR to decline to 25 per cent by the end of 2026. Chief economist, Razia Khan, said the bank now sees room for 150 basis points of monetary easing this year. An Abuja-based fixed income analyst, Joshua Tan, agreed with Khan, but stressed that impending higher energy prices could kibosh positive expectations about lower inflation and interest rate cuts this year.Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. The Financial Markets Dealers Association said pricing in the domestic fixed-income market continues to be shaped by inflation expectations and liquidity conditions, even as several major central banks around the world begin shifting towards monetary policy easing.Analysts, however, caution that the current period of attractive inflation-adjusted returns may be temporary. A former central banker, Chukwunonso Iheoma, estimates the Monetary Policy Rate to fall to 25.5 per cent by the last quarter of 2025.Standard Chartered, on the other hand, expects the MPR to decline to 25 per cent by the end of 2026. Chief economist, Razia Khan, said the bank now sees room for 150 basis points of monetary easing this year. An Abuja-based fixed income analyst, Joshua Tan, agreed with Khan, but stressed that impending higher energy prices could kibosh positive expectations about lower inflation and interest rate cuts this year.Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. Analysts, however, caution that the current period of attractive inflation-adjusted returns may be temporary. A former central banker, Chukwunonso Iheoma, estimates the Monetary Policy Rate to fall to 25.5 per cent by the last quarter of 2025.Standard Chartered, on the other hand, expects the MPR to decline to 25 per cent by the end of 2026. Chief economist, Razia Khan, said the bank now sees room for 150 basis points of monetary easing this year. An Abuja-based fixed income analyst, Joshua Tan, agreed with Khan, but stressed that impending higher energy prices could kibosh positive expectations about lower inflation and interest rate cuts this year.Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. Standard Chartered, on the other hand, expects the MPR to decline to 25 per cent by the end of 2026. Chief economist, Razia Khan, said the bank now sees room for 150 basis points of monetary easing this year. An Abuja-based fixed income analyst, Joshua Tan, agreed with Khan, but stressed that impending higher energy prices could kibosh positive expectations about lower inflation and interest rate cuts this year.Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. Cowry Research expects the Monetary Policy Committee to retain its cautious stance at its July meeting but believes sustained moderation in inflation could open the door to the first interest rate cut in September.But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. But S&P Global warned that rising energy prices could erode the positive real returns currently available on government securities: “Increases in fuel costs as a result of the war in the Middle East have driven up costs among sub-Saharan African companies, putting upwards pressure on inflation and likely bringing to an end cycle of interest rate easing seen in a number of economies in the region.”A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. A Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, noted that the MPC would likely maintain the current rate because of the uncertainty created by the US-Iran conflict.According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products. According to GTI Limited, Treasury bills, particularly the 364-day instruments, currently provide the strongest mix of yield, liquidity and inflation protection. In contrast, FGN Savings Bonds remain slightly below inflation, highlighting the widening gap between institutional fixed-income instruments and retail-focused savings products.