Author: Olu Anisere

CBN Powered Naira Rally with $70m FX Sales to Banks The Central Bank of Nigeria (CBN) fueled demand for naira by selling $70 million to authorised dealer banks in the forex market. The CBN gave the naira fresh flavour as the official rate appreciated to N1480, reflecting absence of US dollar pressures amidst growing external reserves. External reserves surged to $42.225 billion during the week, its highest level since 2021. MarketForces Africa reported that the nation’s gross foreign reserves grew by $5 billion since June when it hovered at $37 billion. In commentary note, analysts at Cowry Asset Limited said…

Fitch Affirms Rwanda at ‘B+’ with Negative Outlook Fitch Ratings has affirmed Rwanda’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘B+’ with a negative outlook, its latest update revealed. The ratings agency said Rwanda’s ‘B+’ rating with a negative outlook reflects its low gross domestic product (GDP) per capita and persistent twin budget and current account deficits (CAD). According to the rating note, these have resulted in high and rising public and external indebtedness, and a rising interest/revenue ratio. “These weaknesses are balanced by the highly concessional nature of the country’s debt, strong governance indicators relative to peers, high growth…

PenCom Raises Capital Base for Pension Fund Operators The National Pension Commission (PenCom) has reviewed the minimum capital requirements for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to strengthen the financial stability of the pension industry. The commission disclosed this in a citcular signed by Mr Saleem Abdulrahman, Director of Surveillance Department, PenCom. It said that the review was carried out following the Pension Reform Act 2014 and in line with global best practices. The circular read, “PFAs will now be required to maintain capital levels proportionate to their Assets Under Management (AUM), while PFCs will align their…

World Bank Lauds Nigeria’s ACReSAL Project as Huge Success The World Bank has ranked Nigeria’s Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project among its most successful and a model for Africa. The Bank’s Practice Manager for Environment in West Africa and the Sahel, Ms Ellysa Baroudy, gave the commendation during a visit to Kwali Area Council of the FCT on Thursday. Baroudy said the initiative was one of the Bank’s most successful interventions in recent years, noting that it had combined climate action, landscape restoration and livelihood support in a way that delivered tangible results. “We’ve only been the financiers…

Excess Liquidity in Banking System Hits N4trn, Rates Steady With about N4 trillion on record, the financial system has been flooded with excess liquidity that keeps the short-term benchmark interest rates movements in check. The banking liquidity surged to about N4 trillion, supported by additional inflows, including OMO bills repayments after recent statutory disbursement to states. On Thursday, the banking system closed at N3.975 trillion as the money market recorded about N150 billion in additional credit flow, data provided by AIICO Capital Limited revealed. “As the market continued to adjust to the moneary policy committee’s asymmetric corridor, the interbank market…

South African Rand Gains Versus USD as Precious Metals Rally The South African rand edged up against the US dollar (USD) on Thursday, hovering around 17.3 per USD, supported by higher prices for precious metals, particularly gold, and a broadly subdued dollar. Prices are uptrend boosting the country’s fiscal outlook and private investment in the segment. South Africa is top of the list of the world’s top platinum producers, with production of 120,000 kilograms in 2024. The country is also a major producer of palladium, taking second place globally with 72,000 kilograms last year. The country holds the largest-known reserves…

Oil Prices Decline as Markets Eye Supply Boost from Iraq Oil prices declined on Thursday as markets anticipate supply boost from Iraq export coming into the global commodity market. Concerns about supply driven by geopolitical tensions eased, supported by prospects of crude export resumption from Iraq’s Kurdish Regional Government (KRG), while a surprise draw in US inventories curbed deeper losses. Brent crude was trading at $68.26 per barrel, down 0.13% from the previous close of $68.35. US benchmark West Texas Intermediate (WTI) decreased by 0.12% to $64.58 from $64.66 in the prior session. The KRG’s Ministry of Natural Resources said…

Nigerian Exchange Down, Investors Lose N135bn as Selloffs Persist The equities segment of the Nigerian Exchange (NGX) experienced a another downtrend on Wednesday as bearish sentiment knocked off more than N135 billion from equities portfolio value. Bearish sentiments persisted as losses in MTNN (-4.8%), JAIZBANK (-4.4%), and WAPIC (-8.8%) drove the All-Share Index lower by 0.2% to 140,716.10 points. Investors profit taking activities knocked down NGX year to date return to 36.72% amidst looming third quarter earnings release. Trading data showed that Market activity increased, with trading volume decreasing by 6.16% to 431 million units, and the total transaction value…

Moody’s Affirms Namibia’s B1 Ratings, Maintains Positive Outlook Moody’s Ratings has today affirmed the Government of Namibia’s B1 long-term foreign currency and local currency issuer ratings and maintained the positive outlook.The global ratings agency analysts also affirmed Namibia’s foreign currency senior unsecured debt rating at B1. The positive outlook for Namibia, in place since April 2024, continues to reflect the prospects for improvements in its fiscal profile, growth trajectory, and external liquidity buffers, the rating note said. Moody’s said the return to primary surpluses since fiscal 2023 ending in March 2024 has stabilized the debt burden and, if sustained, will…

Navigating Private Fund Setup from Idea to Launch Launching a private fund can be daunting. While choosing a vehicle and raising money are essential components, aligning structure, regulation, and investor expectations are basics that ensure the launch isn’t derailed. The first critical step is selecting the vehicle. Would a RAIF or SIF in Luxembourg be ideal? An Exempted Company or Limited Partnership in Cayman? A Qualified Investor Fund (QIF) or Exempt Fund under the DFSA in DIFC? Each vehicle brings different legal forms, liability regimes, and marketing rights. In Luxembourg, for example, a Reserved Alternative Investment Fund (RAIF) doesn’t require…