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 […]
Weekly Market Review: October 2024, Edition 2
Prologue Last week, Nigeria marked her 64th Independence Anniversary with modest celebrations across the country. Among the key highlights of events was President Bola Ahmed Tinubu’s announcement relating to the clearing of over N30 trillion in Ways and Means debt, a significant financial burden accumulated over time. This announcement sparked widespread discussion, as it suggested […]
Weekly Market Review: Vol. 115.1
Prologue Actions of the Central Bank of Nigeria (CBN) since its Monetary Policy Committee (MPC) meeting held on Tuesday, September 24th, 2024, have shocked the markets in ways not evidenced in a very long time. The CBN hiked the Monetary Policy Rate (MPR) by 50 basis points (from 26.75% to 27.25%), to the astonishment of […]
Weekly Market Review: Vol. 114.1
Prologue Nigeria’s inflation rate in August 2024 was reportedly at 32.15%, a rate lower than the figure in July 2024, which was 33.40%. We have observed the effect of the reduced inflation rate amongst some traders who appear excited about the possibility of a rate cut at the forthcoming MPC meeting. Last week, several central […]
Weekly Market Review: Vol. 113
Prologue The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announced that the Federal Government’s revenue rose by N9.1 trillion in the first half of the year 2024. In a report presented by Dr. Armstrong Takang at the 17th Annual Banking and Finance Conference, the impact of this growth appeared to […]
Weekly Market Review: Vol. 112
Prologue In the week under review, American billionaire and philanthropist, Bill Gates, expressed concerns over the lack of progress in Nigeria’s economy, noting that the country’s revenue-to-GDP ratio was stronger 15 years ago. Speaking at a National Executive Council meeting held at the State House in Abuja, Gates emphasised the need for the Federal Government […]
