Author: Marketforces Africa

The naira dived low against the dominant foreign currency, US dollar due to tight forex supply.  The naira lost ₦2.88 to close at N1,512.58 in the official market on Monday as US dollar demand overshadow total amount of foreign currency in the supply bucket.

Nigeria’s Headline Inflation Rate Falls to 24.48% Nigeria’s headline inflation rate fell to 24.48% in January following the consumer price index (CPI) rebasing exercise carried out by the statistics office in 2025. The rebasing of the CPI included important improvements to methodologies, expansion of the product categories or food varieties and a new, closer base year that allows the headline inflation rate to capture current economic changes. The rebased headline inflation dropped from 34.80 per cent in the pre-rebased period of December 2024 to 24.48 per cent in January 2025 after the rebasing, the Statistician-General of the Federation Adeyemi Adeniran…

Investors Soften on Nigerian Bonds Ahead of Inflation In the secondary market, the Nigerian local bonds market traded softly on the back of cautious mood ahead of inflation data. The statistics office is yet to release inflation report for January, a delay attributed to the consumer price index data rebasing agenda. The market opened on a flattish note. However, buying interests were observed at the mid (-3bps) segment, particularly on the JAN 2035 (-10bps) and FEB 2031 (-7bps) papers. Analysts reported that few trades were executed on the mid-tenor papers, especially the February 2031 and January 2035 maturities. Due to…

Nigeria Eurobonds Rally amidst Inflation Data Delay Nigeria’s sovereign Eurobonds rallied at the international debt market amidst delay in inflation data for January. Foreign investors continued to take position on the back of an elevated yield, and potential US Fed rate slicing. Traders said they witnessed bullish sentiment across Nigeria’s sovereign Eurobonds market, covering short-, mid-, and long-term maturities. Analysts explained that trading activity was however low due to the US holiday, leading to reduced liquidity in SSA and North African securities. Lagos investment firm, TrustBanc Financial Group Limited said buying interest persisting across the curve as portfolio investors leveraged…

UBA Group Donates $500,000 to AU Peace Fund Africa’s Global Bank, United Bank for Africa (UBA) Plc has announced the donation of $500,000 to the African Union (AU) Peace Fund. In a statement, the group said the amount donated is to support the AU’s efforts towards promoting security, conflict resolution, sustainable development, and a unified Africa, as envisioned in the AU’s Africa Agenda 2063. The AU Peace Fund plays a crucial role in financing mediation and preventive diplomacy efforts across Africa, strengthening institutional capacity and ensuring rapid responses to emerging conflicts. UBA’s support underscores its dedication to the collective progress…

Money Market Rates Steady as Banking Deficits Ease The short-term benchmark interest rates closed flattish in the money market as liquidity deficit in the banking system eased, according to market analysts’ notes. The deficit in the banking system extended into the new week, easing by 74% to open at N805.37 billion from N3.101 trillion last week. Despite the absence of significant funding pressures, the money market rates steadied around 33% after huge amount was raised by banks from the standing lending facility last week. TrustBanc Financial Group Limited reported that banks with liquidity shortfall accessed funding from the Central Bank…

Naira Falls Across FX Markets as US Dollar Shortage Persists The naira fell off track in the foreign exchange (FX) market due to sustained US dollar shortfalls and rising demand for international payments. The naira depreciated by 0.19%, closing at N1,512.58 per dollar, according to FX spot data from the FMDQ platform. The Nigerian Foreign Exchange Market (NFEM) continued to experience strong demand for foreign currency, resulting in a mostly bid market. However, there was a noticeable increase in dollar liquidity today, AIICO Capital Limited said, noting that most transactions took place within the range of $/n1,450.00 to $/N1,520.00. Similarly,…

Oando Falls as Investors Trade Unusual Volume Oando Plc lost more than 8% in the stock market following an unusual trade volume valued at over N1.1 billion that exchanged hands in the equities market on Monday. The indigenous oil company’s share price fell to N64.1, according to data obtained from the Nigerian Exchange, NGX, from an opening price of N70. The huge share volume traded in the equities market skewed to the sell side, causing Oando Plc market value to decline by 8.43% on the day. At the close of the trading session, Oando’s 12.431 billion outstanding shares were priced…

Nigerian Exchange Falls by N73bn as Investors Dump VFD, OANDO Equities investors trading highs and lows at the Nigerian Exchange, NGX, platform lost about N73 billion due to negative price movements across key sectorial indexes. Sell pressures were observed on Monday as investors took profit amidst corporate earnings releases. This happened just after the Nigerian Exchange, NGX, reported a N1.83 trillion gain last week. Hence, year-to-date returns moderated ahead of inflation data for January. Also, key market performance indicators declined by 0.11% due to strong sell-offs. Equities investors sell down interest in VFDGROUP, OANDO, ETERNA, and PZ after price upticks…

Tensions with U.S. Pose Risk to South Africa’s Growth Recovery –Moody’s Tensions with U.S pose risk to South Africa’s growth recovery, Moody’s said in a recent commentary note after President Donald Trump signed an executive order (EO) freezing financial aid to South Africa early in February. Moody’s noted that the order was prompted by the new US administration’s views on recent land expropriation legislation as well as South Africa’s stance towards Israel. According to Moody’s, the amount of aid that South Africa receives from the US is limited, and therefore the executive orders is unlikely to significantly impact on South…