Author: Julius Alagbe

Nigerian Exchange Hits New High as Investors Gain N1.18trn Nigerian Exchange (NGX) market capitalisation, all share index reached new highs as equities investors gained about N1.18 trillion on a heavy rally supported by increased demand for heavyweight stocks. Trading activities in the local bourse closed on a positive note, and the hunt for upside bolstered key market performance indicators—year-to-date return also climbed to 13.47%. Stockbrokers said today’s bullish performance has effectively reversed the recent bearish trend, driven by renewed buying interest across major market sectors, particularly in blue-chip and mid-cap stocks. Buoyed by sustained demand in MTNN (+4.79%) and renewed…

Nigeria Opens N50bn Green Bond for Subscription at N1,000 Per Unit The Federal Government of Nigeria (FG), through the Debt Management Office, has offered Green Bonds valued at N50 billion for subscription at N1,000 per unit. This is contained in a statement by the DMO on Tuesday in Abuja. According to the statement, it is a 5-year Green Bond offer due in 2030, at interest rates of between 18.75 and 19.25 per cent per annum. “The opening date is June 16, closing date, 18, and settlement date, 23. “It is offered at N1, 000 per unit, subject to a minimum…

CBN Introduces Time-Bound Measures for Nigerian Banks The Central Bank of Nigeria (CBN) has introduced time-bound measures for some banks still completing their transition from the temporary regulatory support provided in response to the economic impact of the COVID-19 pandemic. According to a statement issued by Mrs Hakama Sidi-Ali, CBN’s Acting Director, Corporate Communications Department, this is part of its ongoing efforts to strengthen the banking system. Sidi-Ali said that the step was part of the CBN’s broader, sequenced strategy to implement the recapitalisation programme announced in 2023. She said that the programme, designed to align with Nigeria’s long-term growth…

Naira Falls against Dollar as External Reserves Dip Further The naira slid against the US dollar in the official foreign exchange market, settling at N1545.26 from N1544.62 at the previous close. The local currency has enjoyed some unusual level of stability in the recent weeks, supported by the Apex Bank FX interventions. Data from the Central Bank of Nigeria (CBN) showed that the dollar was quoted at an intraday low of N151 and a high of N1547.90 per greenback. Analysts at Zedcrest Limited said in a macro update that Nigeria’s foreign exchange landscape is expected to be turbulent through the…

Banking Index Falls Sharply as CBN Directive Provokes Selloffs Nigeria’s top five banks’ market value declined sharply on Monday as investors reacted negatively to the Central Bank (CBN) directive on forbearance phaseout. The sell pressures heated as investors sought to take cover against the regulator’s latest directive on forbearance granted to banks five years ago. MarketForces Africa research revealed that the tier-1 banks lost more than N361 billion due to sell pressures that reduced their combined market value to about N7.6 trillion. Investors rotated out from all the top banks, causing the Banking Index to ease by 403 basis points…

CBN Offers 24.59% on OMO Bills, Raises N1.07trn from Investors UPDATED: As part of its liquidity management efforts, the Central Bank of Nigeria (CBN) conducted open market operations (OMO) where N600 billion worth of bills were offered to investors across two tenors. The authority raised N1.07 trillion with minimal rejection ahead of huge OMO bills maturing on Tuesday. The authority floated its auction on Monday to keep the liquidity level in the money market in check, as N985 billion in inflows from OMO bills will mature on Tuesday. The Apex Bank opened N600 billion worth of Nigerian OMO bills for…

NGX Lost N121bn as Forbearance Phase Out Provokes Selloffs The Nigerian Exchange (NGX) shed about N121 billion on Monday as the Central Bank’s forbearance phase out notice to banks provoked profit-taking in banking stocks. Key performance indicators eased 17 basis points as banking stocks became target for profit-taking in reaction to negative effects of the post-COVID-19 forbearance phase out for deposit money banks. The bearish play on the exchange was driven by sell-offs in some large- and medium-cap stocks across major market sectors, while the banking index dropped sharply by 3.98%. Price depreciation was visible in NNFM, ACCESSCORP, ZENITHBANK, UBA,…

FDI Flows to Developing Economies Drop to Lowest Level Since 2005 Flows of foreign direct investment (FDI) into developing economies—a key propellant of economic growth and higher living standards—have dwindled to the lowest level since 2005 amid rising trade and investment barriers, new research from the World Bank shows. These barriers pose a significant threat to global efforts to mobilize financing for development. In 2023, the latest year for which data are available, developing economies received just $435 billion in FDI—the lowest level since 2005. That coincides with a global trend in which FDI flows into advanced economies have also…

Tinubu’s Reforms Spark Industrial Hope – Onafowokan The managing director of Coleman Wires and Cables, Mr. George Onafowokan, has praised President Bola Tinubu’s economic reforms for laying a foundation for industrial growth. In a statement on Sunday, Onafowokan described Nigeria’s macroeconomic environment since 2023 as turbulent but necessary for future stability. He highlighted fuel subsidy removal, exchange rate unification, and interest rate hikes as difficult but essential steps to reset a struggling economy. “For businesses, it has been tough. However, with a stronger naira, rising foreign inflows, and easing inflation, recovery is clearly underway,” he said. He noted that manufacturers…

Nigerian Bonds Yield Declines Ahead of Inflation, Auction The benchmark yield on Nigerian government bonds eased as optimism over key macroeconomic indicators fueled increased demand for the naira asset in the secondary market. Investors increased their bets on Nigerian bonds ahead of inflation data for the month of May. In their separate commentary notes, investment firms projected headline inflation to ease further. Local investors increased demand for bonds ahead of the Debt Management Office (DMO) monthly auction and the release of the consumer price index by the statistics office in the new week. The bonds market traded on a subdued…