Author: Julius Alagbe

Nigerian Treasury Bills Yield Falls Below 20%, OMO Rate Dips The average yield on Nigerian Treasury bills (NTB) has fallen below 20%—the first time in a long time—as investors continue to ramp up the naira assets in the absence of a midweek primary auction (PMA). For two consecutive weeks, the Central Bank of Nigeria (CBN), through the Debt Management Office (DMO), has not conducted a primary market auction for Treasury bills. This has fueled trading activities in the secondary market, with investors maintaining focus on assets with long durations. Yesterday, the Nigerian Treasury bill market ended the proceeding on a…

Oil Prices Decline as U.S Crude Inventories Climb Oil prices dropped due to uncertainties in the worldwide commodity market. This was accompanied by an unforeseen rise in US crude and gasoline reserves, sparking worries about reduced demand in the biggest oil consumer globally. Brent crude fell by 0.9%, trading at $68.20 per barrel, down from $68.84 at the previous session’s close. Similarly, the US benchmark West Texas Intermediate (WTI) decreased by about 1%, settling at $66.01 per barrel, compared to $66.71 in the prior session. According to the US Energy Information Administration (EIA), commercial crude oil inventories rose by 3.8…

CBN Allots OMO Bills Worth N745bn to Investors at 23.99% The Central Bank of Nigeria (CBN) allotted OMO bills worth N745 billion to investors at the end of its latest open market operation. The Apex Bank floated N600 billion at the primary market via competitive auction to mop up excess liquidity in the financial system. The money market has been flooded with significant funds in the absence of Treasury bill actions last week. Though the market experienced inflows from matured bills, leaving the liquidity balance in a positive net position. In response to elevated system liquidity, the CBN floated an…

Naira Strengthens after CBN Injects $96m into FX Market The naira strengthened against the US dollar as data showed the Central Bank of Nigeria (CBN) injected more than $96 million into the official foreign exchange (FX) market last week. The CBN FX interventions lifted the US dollar volume, supported by sustained foreign investors’ confidence in the official window. The US dollar volume rose due to CBN FX interventions, backed by ongoing foreign investors’ trust in the official channel. The CBN figures show that the official window’s spot rate ended at N1529.71 per dollar on Monday, down from N1539.23 on Friday…

Algerian Economy Broadly Positive Despite High Fiscal Vulnerabilities The near-term prospects for the Algerian economy remain broadly positive despite global uncertainty, but fiscal vulnerabilities are high, the International Monetary Fund (IMF) said in an official statement following the conclusion of Article IV consultation. Moreover, the Algerian economy must focus on sustainable practices to secure its future. The IMF emphasises that for the Algerian economy to thrive, a robust fiscal strategy is crucial. Addressing the unique challenges of the Algerian economy will require careful planning and execution. Investment in various sectors of the Algerian economy is vital for achieving sustainable growth.…

Weak US Dollar Boosts Oil Demand, Brent Price Climbs Near $67 A weak US dollar boosted demand for oil in the global commodity market on Monday, with Brent hovering at about $67 while West Texas Intermediate inched near $65 per barrel. Oil prices increased during the early hours as investors sought to take advantage of last week’s declines, while a weaker US dollar supported demand. International benchmark Brent crude rose by 0.37%, trading at $66.58 per barrel, up from $66.33 at the previous session’s close. Similarly, US benchmark West Texas Intermediate (WTI) increased by about 0.26%, reaching at $64.71 per…

FGN Bond Yield Falls to 18.4% as Thin Supply Stokes Rally The average yield on Federal Government of Nigeria (FGN) bond eased by 19 basis points to close the week at 18.4% due to bullish activities in the secondary market, a slew of fixed income market analysts said in separate notes. The local bond market opened the trading session last week on a quiet note, with minimal activity following the bond auction. The market noticed sporadic trades on the Nigerian bonds maturing in 2029, 2031, 2033, and 2053. Momentum picked up midweek after the auction results revealed strong demand and…

Nigeria’s Eurobond Yield Falls to 8.6% on Bargain Hunting Increased demand for Nigeria’s Eurobond has caused average yield to reduce by 31 basis points on the back of improved macroeconomic indicators, settling at 8.6%. Nigeria’s reforms have continued to boost offshore investors’ sentiment, supported by relatively strong yields compared with some benchmark global fixed interest securities assets. The 30-year US Treasury yield declined 0.043 percentage points to 4.846% at the close of the trading session on Friday, down for three weeks straight. Also, 10-year US Treasury yield declined 0.091 percentage point to 4.283% last week, and the price rose 23/32…

Nigeria’s Customs Chief Elected WCO Council Chairperson The Comptroller-General (C-G) of the Nigeria Customs Service (NCS), Adewale Adeniyi, has been elected as Chairperson of the World Customs Organisation (WCO) Council. The election took place during the concluding session of the 145th/146th WCO Council meeting held at the WCO Headquarters in Brussels, Belgium. NCS spokesperson Abdullahi Maiwada disclosed this in a statement on Saturday in Abuja. Adeniyi succeeds Edward Kieswetter, Commissioner of the South African Revenue Service, and becomes the first Nigerian to hold the prestigious office since the WCO’s establishment. WCO Council is the highest decision-making body in global customs…

FIRS Rewards MSME Operator with N2m, Car for Tax Compliance The Federal Inland Revenue Service (FIRS) has rewarded an MSME operator of Raw Food and Beauty Research Ltd. with N2 million and a brand-new car for outstanding tax compliance. The Executive Chairman of the FIRS, Dr Zacch Adedeji, represented by the Director, Government and Medium TaxPayers Group (GMTG), Mr Dick Irri, gave the award at the 7th National Micro, Small and Medium Enterprises (MSMEs) award in Abuja. Adedeji said that the reward was for the company’s diligent work. He highlighted the commitment of FIRS in recognising micro and small taxpayers.…