Author: Julius Alagbe

Ghanaian Banks’ Profitability to Fall Sharply on Lower Interest Rates – Fitch Ghanaian banks’ profitability is set to weaken considerably due to the impact of materially lower interest rates on net interest margins (NIMs), Fitch Ratings says. However, profitability will remain high by regional standards and continue to be a strength of the banks’ standalone credit profiles, the global ratings agency said. Inflationary pressures have decreased significantly due to the Bank of Ghana’s (BoG) tight monetary policy stance, Ghanaian cedi appreciation, fiscal consolidation and an improvement in food supplies. Headline inflation declined to 9.4% in September, the lowest level in…

Naira Rallies to N1466/$ as Foreign Reserves Reach $42.574bn Staying on track, the naira did not give up gaining momentum against the US dollar across the Nigerian Foreign Exchange Market (NFEM), details obtained from the daily FX update from the Apex Bank revealed. The Central Bank of Nigeria (CBN) data showed that the official rate appreciated against the US dollar for second days, touched an intraday low of N1463.5000 per dollar on Thursday. Striking a balance between inflows and corporate demand, the FX spot rate settled at N1466 per dollar, gaining 27 basis points on the previous day. Traders highlighted…

Nigerian Eurobonds Yields Steady, SSA Economies Pay High on Borrowing The Nigerian Eurobonds yields steadied at 8.02% as foreign investors remained cautious and opted to stay on the sidelines while reassessing their portfolio allocations following recent rate cuts by major central banks. The market saw a mild bullish tone on Nigeria’s Eurobonds amid the ongoing U.S. government shutdown, prompting mild buy-interest and a modest rise in yields across several maturities. Compared with other African issuers, offshore investors showed preference for Nigeria’s US dollar bonds, supported by high yields which priced in country’s dynamics. Nigeria’s key market economic indicators are improving…

First Bank Launches 24/7 Digital Centre at BUK First Bank of Nigeria on Thursday inaugurated its state-of-the-art Digital Experience Centre at the Bayero University Kano (BUK), offering round-the-clock automated banking services. The centre provides services such as cash deposits, withdrawals, and payment transactions through advanced ATMs without human assistance. FirstBank Group Head of Branch Operations and Services, Mrs Abimbola Ajayi, said the centre showcased the bank’s digital transformation and makes banking more convenient for customers. She added that the centre’s location within the university was strategic, given the tech-savvy nature of the academic community. Ajayi explained that the centre, the…

Alleged N110bn Fraud: No Banking Regulation Was Breached – Banker A third witness for the Economic and Financial Crimes Commission (EFCC) (PW3), in the trial of former Gov. Mr Yahaya Bello of Kogi says that no banking regulation was breached by the defendants. He made the statement while testifying before Justice Maryanne Anenih of the FCT, High Court, Maitama, Abuja on Wednesday. Bello and his co-defendants Umar Oricha and Abdulsalami Hudu were arraigned on Nov 27, 2024 on a 16-count- charge bordering on alleged property fraud to the tune of N110 billion. The PW3, Williams Abimbola, said during cross-examination, that…

Liquidity: Cash-Rich Banks Chase 24.5% SDF Rate at CBN Window The short-term benchmark interest rates mixed due to the surplus liquidity position in the financial system. Deposit Money Banks (DMBs) continue to park funds with the Central Bank for a 24.5% rate on the standing deposit facility (SDF) window. Despite three straight OMO auctions floated by the CBN, the liquidity level in the financial system closed at approximately N3.8 trillion, AIICO Capital Limited report highlighted. The investment firm stated that the interbank market maintained strong liquidity at ₦3.79 trillion as commercial banks remain active at the SDF window. Total placements…

CBN Reduces Interest Rates on Nigerian Treasury Bills The Central Bank of Nigeria (CBN) reduced interest rates on Nigerian Treasury bills across standard maturities, its primary market auction results revealed. The spot rate on one-year treasury bills was axed by 101 basis points, reflecting its adjustment to the monetary policy rate and robust liquidity in the financial system. The Nigerian treasury bills with 91 days to maturity were spared, while the rate on 182 days bills was slashed by slightly. The authority floated its first treasury bills auction on Wednesday, where N570 billion worth of Nigerian short-term borrowing instruments were…

Naira Up, FTSE Russell Confirms CBN Unrestrictive FX Repatriation Policy The naira reclaimed value against the US dollar after a three-day downward trend at the Nigerian Foreign Exchange Market (NFEM). Boosted by foreign investors’ confidence, the local currency picked up on Wednesday at the official window, supported by fuelled improvement in foreign currency supply. Market confidence strengthened after FTSE Russell, a global index service provider, confirmed that foreign investors are now finding it easy to repatriate US dollar from Nigerian capital market. With the absence of FX restriction, FTSE Russell revealed a plan to upgrade the Nigeria index to frontier…

Equities Investors Gain N459bn as Fidelity Bank, MTN Rally Equities investors saw more than N459 billion gain on the Nigerian Exchange (NGX) trading platform due to positive price movement in bellwether stocks, including Fidelity Bank, MTN Nigeria, and Aradel Holdings. The local bourse extended its positive momentum on Wednesday, driving key performance indicators higher by +0.50% while the year-to-date return advanced to 41.6%. The market witnessed profit-taking activities in some recently appreciated stocks, still the overall performance remained positive, driven by sustained buying interest in large and mid-cap stocks. Investor sentiment was upbeat, buoyed by improving macroeconomic fundamentals and moderating…

Citi Meets CBN N200bn Capital Requirement Ahead of Deadline Citibank Nigeria Limited (Citi) has successfully met the Central Bank of Nigeria’s (CBN) new minimum capital requirement of N200 billion for national commercial banks – ahead of the first quarter 2026 deadline. In an official statement released by Lola Oyeka, country head of public affairs for Nigeria and Ghana, the bank said the achievement reinforces Citi’s enduring commitment to Nigeria’s financial sector and economic growth. Commenting on the development, Mrs. Nneka Enwereji, MD/CEO of Citibank Nigeria Limited, stated, “Meeting the CBN’s N200 billion capital requirement is more than compliance – it…