Author: Marketforces Africa

GCR Affirms Development Bank of Nigeria AAA (NG)/A1+(NG) Ratings GCR Ratings (GCR) has affirmed Development Bank of Nigeria Plc’s (DBN or the Bank) national scale long and short-term issuer ratings of AAA(NG) and A1+(NG) respectively. Also, GCR has affirmed DBN’s Series 1 N23.0 billion Senior Unsecured Bonds national scale issue rating of AAA (NG), maintained stable outlook on the ratings. According to the report, the ratings are underpinned by DBN’s robust capitalisation, good risk profile, stable funding base, adequate liquidity structure and the progressive delivery of its mandate to address financing constraints of Micro, Small and Medium Enterprises (MSMEs). DBN,…

Oil Prices Edge Higher Amidst U.S Sanctions on Iran Oil prices increased in the global commodity market on Thursday as the U.S. slammed fresh sanctions on Iranian exports amidst an imbalance between crude supply and demand. The market expects China to keep on a growth track after a report showed higher imports ahead of the oil group’s plan to ramp up output in May. In the US, crude oil inventories expanded above expectation, according to the Energy Information Administration. Brent crude above $66 a barrel after the U.S. imposed fresh sanctions aimed at curbing Iranian oil exports as part of…

Interbank Funding Rates Climb as System Liquidity Slows Interbank funding rates climbed in the money market as liquidity levels in the financial system slowed down due to FX sales payments debited against deposit money banks. The Central Bank of Nigeria (CBN) has been selling US dollars to authorised dealer banks to boost forex market supply and keep the naira stabilized. In return, banks individual money market balances were debited for the amount of US dollars purchased. This reduced the amount in the organised financial system, causing the market to price the short-term benchmark interest rates higher than previous day. The…

Equities Analysts Raise UBA Target Price, See Upside With the expectation of sustained earnings growth, analysts have raised UBA’s target price to N43.94 ahead of the first quarter of 2025 financial scorecard. On the Nigerian Exchange, UBA’s share price climbed by 15 kobo on each of the 34.199 billion outstanding shares in the equities market. The stock bucked the negative trend in the local bourse after seven analysts formed a consensus about the Pan African lender market outlook. UBA share price target increased by 11% to N43.94 per share from N39.53. According to the equities analysts’ note reviewed, the new…

Mali Gets $129 Million Loan Approval from IMF The International Monetary Fund (IMF) Executive Board approved today Mali’s request for disbursement under the exogenous shock window of the Rapid Credit Facility (RCF), allowing for an immediate disbursement of US$129 million (SDR 93.3 million). The IMF emergency financing will help address urgent balance of payment needs from the floods, while the 11-month SMP aims to reinforce macroeconomic stability, strengthen resilience, protect the vulnerable, and improve governance, serving as an anchor for the government’s macroeconomic policy priorities. The RCF is accompanied by an 11-month Staff Monitored Program (SMP), an agreement between member…

N200bn Intervention Fund Lifeline for MSMEs- Minister Sen. John Owan-Enoh, the Minister of State for Industry, Trade and Investment, has described the N200 billion intervention fund for Micro Small and Medium Enterprises (MSME) as a financing pipeline for businesses. Owan-Enoh stated this at a town hall meeting on the presidential grant and loan scheme for MSMES in Calabar on Wednesday. The minister who described the scheme as a financing pipeline for businesses, stated that the fund had ‘democratised financing for overlooked businesses’ He said that the town hall meeting was to sensitise the business community in Cross River to take…

US Dollar Slides as Trade Tensions Cloud Sentiment The US Dollar Index remained under pressure on Wednesday, struggling to maintain the 100 threshold as markets cautiously awaited today’s key speech from Federal Reserve Chair Jerome Powell. The greenback hovered near multiple-year lows, weighed down by trade and policy uncertainty and rising speculation over additional Fed rate cuts. Trade-related risks escalated further after President Trump ordered a new investigation into tariffs on all critical mineral imports, many of which are sourced from China. Such a move could further weigh on investor sentiment as global economic growth concerns rise, benefiting traditional safe…

Naira Up Against Euro, South Africa Rand, Sterling Rally The naira traded mixed in the foreign exchange (FX) market with some wins and losses against bellwether economies currencies highly in demand for foreign payments. Data from the CBN showed the naira gained against the US dollar in the Nigerian Foreign Exchange Market (NFEM). There were also swings in rates for the euro, British pound, and yuan, reflecting demand patterns observed at the official window. Market players required less of a naira unit to purchase euros and South African rands for international payments, but more local currency was needed to buy…

Oil Prices Increase amidst U.S –Iran Nuclear Talks In the global commodity market, the prices of crude oil increased amidst the U.S. and Iran nuclear talks. In the latest round of tariff confusion, the U.S. announced additional tariff exemptions while OPEC+ has maintained its plan to boost supply in May. The international benchmark, Brent crude, increased by around 0.57%, trading at $64.92 per barrel, up from $64.55 at the previous session’s close. The US benchmark West Texas Intermediate (WTI) rose about 0.55%, settling at $61.50 per barrel, compared to its prior session close of $61.16. Oil prices were supported by…

Naira Falls as External Reserves Dip Amidst Huge FX Injection The naira weakened against the US dollar in the foreign exchange market despite the Central Bank of Nigeria (CBN) FX supply to banks, amidst declining external reserves. The external reserve was at $38 billion, though the CBN claimed the net FX reserves for Nigeria is $23 billion, a sharp growth from 2023 – a development supported by reforms. Offshore investors rotating out from the naira assets in the financial markets triggered higher demand for the US dollar in the country in the last few weeks. This happened at the FX…