Weekly Market Review: December 2024, Edition 3
Prologue Nigeria’s monetary authorities have gone far and beyond to address the country’s inflation and foreign exchange problems and, thankfully, positive results have started to show. The Monetary Policy Rate (MPR) has been pushed up a whole 875 basis points since the start of 2024 along with many complementing measures that have been instituted to […]
Weekly Market Review: December 2024, Edition 2
Prologue Last week, Nigeria conducted a successful Eurobond auction, the first issuance since 2022, and it was a revelation of overwhelming investor confidence in the country’s macroeconomic policies. The auction received a total subscription above $9 billion, significantly exceeding the $2.2 billion issued. Analysts believe this strong demand reflected support from a broad array of […]
Weekly Market Review: December 2024, Edition 1
Prologue On Tuesday, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) made its latest policy decision, announcing a 25 basis points hike in the Monetary Policy Rate (MPR)—from 27.25% to 27.50%. This brings the MPR increases to a total of 875 basis points since Governor Olayemi Cardoso took office. The recent […]
Weekly Market Review: November 2024, Edition 4
Prologue Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, recently clarified that the current Finance Act will be rendered ‘null and void’ once the proposed Tax Reform Bills are passed into law by the legislative and executive branches of the government. This statement was made during a stakeholder session […]
Weekly Market Review: November 2024, Edition 3
Prologue The recent increase in Nigeria’s foreign reserves, which have risen above $40 billion as of November 13, 2024, signifies a positive shift in the country’s economic outlook. This growth from approximately $33 billion at the beginning of the year and around $38 billion just a month ago reflects improved financial stability and resilience against […]
Weekly Market Review: November 2024, Edition 2
Prologue Fitch Ratings has issued a rather unsettling forecast for Nigeria’s banking sector, predicting an uptick in non-performing loans (NPLs) for 2024, as a consequence of the country’s aggressive high interest rates and inflation that seems to have an endless appetite. In its latest credit rating update, Fitch confirmed Nigeria’s Long-Term Foreign-Currency Issuer Default Rating […]
Weekly Market Review: November 2024, Edition 1
Prologue The World Bank has urged the Central Bank of Nigeria (CBN) to abandon its current practice of conducting foreign exchange auctions and to adopt a more flexible exchange rate strategy. This recommendation stems from the broader recognition that Nigeria’s economy requires transformative reforms to ensure sustainable growth and stability. With the recent caution from […]
Weekly Market Review: October 2024, Edition 5
Prologue The recent increase in Nigeria’s foreign exchange reserves, rising from a little above $36 billion in September 2024 to over $39 billion in October 2024, has several important implications for the broader economy, the fixed income markets, and the country’s ability to attract foreign portfolio investments. Unarguably, a growing level of foreign exchange reserves […]
Weekly Market Review: October 2024, Edition 4
Prologue For the first time in three (3) months, the moderation in inflation saw a different turn. Recall that the inflation figure printed as high as 34.19% in June 2024. Despite drops in inflation over recent months, September witnessed a rise of 55 basis points, with the rate climbing from 32.15% to 32.70%. At the […]
Weekly Market Review: October 2024, Edition 3
Prologue Notwithstanding efforts by the Federal Government, Debt Management Office (DMO), and Central Bank of Nigeria (CBN) geared towards boosting Foreign Direct Investments (FDIs), recent reports reveal a significant drop in FDIs to $29.83 million in the second quarter of 2024—an all-time low. Over the last 16 months, Nigeria has secured $6.45 billion in loans […]
