Author: Marketforces Africa

CBN to Offer N162.02bn Bills for Subscription Midweek Ahead of N27.19 billion that is about to mature, the Central Bank of Nigeria (CBN) is set to conduct its second Treasury Bills (T-Bills) auction for the month on Wednesday. The total offer size is N162.02 billion, split across three maturities, and analysts said rates could taper further on the expectation that demand will remain healthy. The authority will open 91-day bills worth N22.02 billion for investors’ subscription; the expected cutoff rate is projected to range between 17.84% and 17.94%. The Central Bank also planned to open N40 billion worth of 182-day…

Moody’s Upgrades Dangote Cement Ratings, Revised Outlook Moody’s has upgraded Dangote Cement Plc’s credit or long-term corporate family rating (CFR) to B3 from Caa1, probability of default rating to B3-PD from Caa1-PD and long-term national scale CFR to A3.ng from Baa3.ng. According to the rating note, Moody’s analysts also upgraded the senior unsecured ratings of Dangote Cement’s two N300 billion senior unsecured domestic medium-term note programs (DMTN) to (P)B3 from (P)Caa1 and the senior unsecured medium-term note program (MTN) national scale ratings (NSRs) to A3.ng from Baa3.ng. “We also upgraded the senior unsecured ratings of the notes issued by Dangote…

Equities Investors Lose N170bn as Oando, First Holdco Fall Equities investors lost more than N170 billion on the Nigerian Exchange (NGX) as sell pressures on Oando, First Holdco, and other decliners dragged down market indicators. Oando Plc lost 10% of its market value, and First Holdco slipped by 4.2%, though telecom company MTN Nigeria climbed by 2.2%, and Mutual Benefit Assurance rallied. According to data from the local exchange, the all-share index reduced by 0.28%, shedding 328.08 basis points, to close at 114,910.16 as sell pressure persisted. Equities market capitalisation or portfolio value of listed stocks lost ₦170.36 billion, representing…

IEA Cuts Global Oil Demand Growth Forecast The International Energy Agency (IEA) cuts its global oil demand growth forecast for this year by approximately 21,000 barrels per day (bpd) compared to its previous estimate, citing weak demand in the second quarter from the world’s two largest oil consumers, the US and China. Global oil demand is expected to reach 103.76 million bpd this year, representing an increase of about 720,000 bpd compared to last year, according to the IEA’s Oil Market Report. In the previous report, the growth estimate was approximately 741,000 bpd. Demand in OECD countries is expected to…

Oil Prices Jump as Geopolitical Tensions Stoke Supply Fear Oil prices rose on Tuesday amid renewed concerns that escalating tensions between Iran and Israel could disrupt energy supplies from the Middle East. Brent crude increased by around 1.84%, trading at $73.46 per barrel, up from $72.13 at the previous session’s close. Similarly, US benchmark West Texas Intermediate (WTI) increased by about 1.97%, settling at $71.39 per barrel, compared to $70.01 in the prior session. Prices retreated to $69.96 on Monday following reports that Iran was seeking to de-escalate hostilities and resume nuclear negotiations with the US. However, prices rebounded after…

Short-Term Interest Rates Rise as CBN Mops Up Liquidity The short-term benchmark interest rates surged in the money market as the Central Bank of Nigeria (CBN) mopped up liquidity levels in the financial system. The authority conducted an open market operation (CBN) to reduce the amount of free cash flow around in the money market, effectively reducing banks’ capacity to create credits. The week had opened with excess liquidity levels in the financial system due to the absence of primary market auctions and foreign exchange market interventions in the previous week. Yesterday, the CBN conducted simultaneous cash reserves ratio (CRR)…

Nigerian Eurobonds Yield Eased to 9% on Disinflation Foreign portfolio investors were all out in the international market for Nigeria’s Eurobond as the country’s statistics office reported a slowdown in the consumer price index for the month of May, 2025. The Nigerian sovereign Eurobond market recorded strong bullish sentiment, driven by robust demand for the NOV-25, NOV-27, and SEP-28 maturities as disinflation boosts sentiment in the international market. Fixed income market analysts at Cowry Asset Management Limited said in their investor note that due to bargain hunting on the Nigerian Eurobonds, the average yield declined by 25 bps to 9.00%,…

Headline Inflation Rate Reduces to 22.97% in May – NBS Nigeria’s headline inflation rate declined for the second consecutive month to 22.97% in May, the National Bureau of Statistics (NBS) said in its monthly consumer price index (CPI) report. According to data released by the statistics office on Monday, the inflation rate eased by 74 basis points (bps) to 22.97% year-on-year in May from 23.71% in the month of April. On a month-on-month basis, consumer prices moderated to 1.53% as against 1.86% in the previous month. The report also revealed that food inflation moderated by 12 bps to 21.14% y/y…

Nigerian Treasury Bills Yield Shrinks to 20.6% Ahead of Auction Ahead of the midweek auction, investors are currently earning an average of 20.5% as yield on Nigerian Treasury bills, trading data from the secondary market revealed. Last week, the Nigerian Treasury Bills secondary market maintained a bullish tone throughout, Afrinvest Limited said in an investor note, buoyed by strong demand across the curve and firm system liquidity. Fixed income market analysts said activity was most pronounced on the newly issued 1-year paper (04-Jun-26), which opened the week with aggressive bids before slight resistance led to moderated offers midweek. The investment…

Budget Deficit: Nigeria to Borrow N7trn in Second Half of 2025—Report To meet the nation’s spending plan, the Nigerian government is expected to step up borrowing in the second half of the year, raising N7 trillion to finance the 2025 budget deficit, investment manager Zedcrest Wealth Limited said in a mid-year outlook. Total public debt has expanded to about half of the nation’s gross domestic product size, raising concerns over sustainability. Nigerian government borrowing in the debt market is expected to remain elevated, particularly as budgeted revenues are likely to fall short due to weaker oil receipts stemming from both…