Author: Marketforces Africa

Debt Office to Open N300bn Bonds for Subscriptions The Nigerian government, through the Debt Management Office (DMO), has revealed a plan to open N300 billion in local bonds for investors’ subscription. Analysts said the offer will be oversubscribed, reflecting an unending appetite for the naira assets on the back of elevated yields. Banks and other asset managers have continued to increase bets on local bonds amidst disinflation, while the decision to keep interest rates at double-digit highs is expected to continue to fuel investors’ interest. In a circular, the DMO announced a ₦300 billion May 2025 bond offering across two…

Wema Bank Gets Approval for N50bn Private Placement Wema Bank Plc shareholders have approved a N50 billion private placement to augment its capital raising program ahead of the industry’s recapitalisation deadline. In the equities market, Wema Bank Plc dipped slightly following the decision to raise fresh capital from private investors after the successful completion of the rights offer this week. The bank took the road of capital raising in the absence of possible merger and acquisition deals on the table while the banking industry recapitalisation deadline set by the Central Bank drew near. Data from the Nigerian Exchange showed that…

Dangote, Jaiz Bank Drive Intraday Loss in Equities Market Dangote Sugar Refinery Plc, Jaiz Bank, and a bucket of other decliners are currently driving the Nigerian Exchange (NGX) All-Share Index lower during the intraday trading session. Key performance indicators are showing red as profit-taking activities heated up, and most transactions on banking stock are trending negative. Dangote Sugar Refinery’s share price is down, and International Breweries Plc is also bleeding along with price depreciation in Transcorp Plc. Fidelity Bank share price declined during the intraday trading session along with others like Jaiz Bank, GTCO. At midday, the NGX All-Share Index…

Abia to Roll out 20 Electric Buses for Public Transportation Gov. Alex Otti of Abia says the State Government’s new transport system will commence operation before the end of July. Otti said this during the “Promise Kept Carnival”, organised jointly by the Aba Business Community and Landlords Association to celebrate the completion of the reconstruction of the Port Harcourt Road, Aba. He said that the transport system would begin with the introduction of 20 electric buses and the completion of modern bus terminals across key locations. He also said that the construction of new transport terminals was progressing rapidly. The…

FG Calls for BASA Agreement Between Nigeria, Italy The Federal Government (FG) has emphasised the importance of reviving the Bilateral Air Services Agreement (BASA) between Nigeria and Italy. The move aims to facilitate direct flights between the two countries and boost bilateral trade and investment. Amb. Anderson Madubuike, Director of Economic Trade and Investment at the Ministry of Foreign Affairs, made the call at the Nigeria-Italy Investment Summit 2025 (NIIS 2025) in Abuja on Wednesday. The summit, organised by Giant Gee Nigeria Limited in collaboration with the Italian Embassy in Abuja and the Nigerian Embassy in Rome, is themed “Building…

NGX Index Edges Higher as Banking Stocks Drive Intraday Gain The Nigerian Exchange (NGX) index popped higher during Intraday rally that pushed equities market capitalisation upward by six basis points. The local bourse records marginal gain as investors showed interest in some lightweight stocks. Also, the market records some interest in banking names as the monetary policy committee of the central bank maintained the status quo on interest rate. At mid-day, the NGX All Share Index posted a gain of 0.06%, Alpha Morgan Capital Limited told investors in an emailed note, reflecting an upward trend. Stockbrokers said the modest rise…

US Credit Rating Downgrade Sparks Concerns: Whirlpool’s Recent Downgrade Offers a Template The recent downgrade of the US credit rating to Aa1 has raised concerns about the country’s financial stability. Some analysts, like Bessent, view rating actions as backward-looking, but the downgrade of Whirlpool to junk status by Moody’s on April 29 provides a relevant template. Whirlpool’s downgrade was due to persistent weak consumer demand, a sluggish US housing market, and high debt levels. The company’s revenue has declined since peaking in 2021, pressured by rising interest rates and reduced demand for its appliances. Moody’s also assigned a negative outlook,…

CBN Retains Headline Lending Rate at 27.50% For the first time since February 2024, the Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 27.5 per cent. CBN Governor Yemi Cardoso announced the decision on Tuesday in Abuja following the 300th Monetary Policy Committee (MPC) meeting. Cardoso said all 12 MPC members voted unanimously to hold all key monetary parameters. The committee retained the Cash Reserve Ratio at 50 per cent for Deposit Money Banks and 16 per cent for Merchant Banks. The Liquidity Ratio remains at 30 per cent, and the Asymmetric Corridor was held…

Dangote Pledges Petrol Price Stability Despite Rising Crude Oil Prices Dangote Petroleum Refinery and Petrochemicals has reaffirmed its commitment to maintaining stable petrol prices, even as global crude oil prices continue to fluctuate. The affirmation is contained in a statement issued on Monday in Lagos, the Group Chief Branding and Communications Officer of the company, Mr Anthony Chiejina. Chiejina stated that the company has consistently reduced the price of Premium Motor Spirit (PMS), underscoring its dedication to supporting the Nigerian economy and easing the financial burden on consumers. “This decision reflects our commitment to delivering affordable, high-quality petroleum products without…

FGN Bond Yield Rises to 19.06% Ahead of Interest Rate Decision The average yield on federal government of Nigeria (FGN) bonds climbed slightly in the secondary market ahead of the outcome of the Central Bank monetary policy committee decision. Trading activity was largely muted, with yields remaining broadly unchanged across maturities as most players stayed on the sidelines ahead of the monetary policy committee rate decision. In the secondary market, Nigerian bond yields expanded at the short end, mid segment, and long end of the curve by 7bps, 2bps, and 2bps, respectively. Consequently, the average yield on FGN Bonds climbed…