Author: Marketforces Africa

Oil Prices Decline Amidst Lower U.S Inventories Draw Oil prices fell following reports indicating an increase in US oil inventories and ongoing uncertainties surrounding the potential impact of US President Donald Trump’s planned energy policies on global oil demand. The international benchmark Brent crude fell by 0.1%, trading at $78.22 per barrel. The US benchmark West Texas Intermediate (WTI) decreased by 0.1%, reaching $75.21 per barrel, compared to its prior session close of $75.28. The downward movement in oil prices was further influenced by data suggesting a rise in US oil stocks, in the world’s largest oil-consuming country. Projections from…

IAS 29: Nigeria Not Hyperinflation Economy – Financial Reporting Council The Financial Reporting Council of Nigeria (FRC) says Nigeria is not yet an hyperinflation economy and citizens have confidence in its local currency. The council said this on Wednesday in a statement signed by the Executive Secretary/Chief Executive Officer, Dr Rabiu Olowo. The council noted that the International Accounting Standard (IAS) 29 which borders on Financial Reporting in Hyperinflationary Economies should not be applied in the preparation of financial statements for the 2024 financial year. IAS 29, Financial Reporting in Hyperinflationary Economies, on the other hand establishes rules for reporting…

Nigerian Bonds Yield Increased to 20.74% on Selloffs The average yield on Nigerian government bonds surged further to 20.74% in the secondary market due to sell pressure that has persisted for days. Investors in the local debt market have been offloading the local borrowing instruments ahead of new supply, with expectations that a higher inflation rate would act as catalysts for yield repricing. The market witnessed profit taking at the long end of the curve on Wednesday as the plan to rebase the country’s GDP and consumer price index raises a positive outlook on macroeconomic data. On Wednesday, investors sold…

Interest Rate on Nigerian Treasury Bills Drops to 21.80% The discount rate on 364-day Nigerian Treasury bills fell further at the primary market auction amidst a strong appetite for long-dated instruments. The slowdown in spot rate aligned with market expectations amidst the consumer price index rebasing plan. MarketForces Africa reported that the Debt Management Office conducted a primary market auction midweek on behalf of the Central Bank of Nigeria (CBN), where the authority offered N530 million worth of Treasury bills across standard maturities. At the auction, the DMO offered N530 billion across the 91-, 182-, and 364-day papers. Yield-hungry investors…

Interbank Rates Fall as FAAC Credit Eased Liquidity Pressure Interbank rates fall as money market pressures eased on the back of improved liquidity in the banking system, driven by inflows from the Federal Accounts Allocation Committee (FAAC). Analysts predict that liquidity will be further squeezed following N530 billion Treasury bills auction on Wednesday. According to market reports, the short-term interest rate benchmark declined to 30% range, though liquidity levels remained tight. Banks maintained borrowing streaks from the Central Bank of Nigeria’s (CBN) Standing Lending Facility (SLF) in the absence of significant fund inflows. Analysts predicted that local lenders would continue…

Banking Index Surges as Access Holdings, GTCO Rally The Nigerian Exchange (NGX) banking index advanced due to increased demand for Access Holdings and GTCO shares in the local bourse. Ticker: ACCESSCORP had the most traded units, with its 91.99 million units traded accounting for 23.30% of the total volume traded, stockbrokers said in their separate report. Despite a negative sectoral performance, the banking index was an outlier, recording a 0.61% uptick on the day due to demand for the Tier-1 stocks. Access Holdings PLC rose by 1.45% to N24.55 in the equities market as more than 91 million shares of…

MTN Nigeria Retreats amidst Tariff Hike Euphoria, Licence Renewal MTN Nigeria Plc market value bumped over sell pressures in the equities market, reversing its top maximum allowable gain in the previous day. Investors took profit selling part of their interest in MTN Nigeria Plc shares after a strong gain posted following a 50% tariff hike secured from the telecom regulator. On Wednesday, the telecom stock fell to N247 per share, losing N9.30 on the day as more than 2 million shares were transacted in the market. According to trading details, the share price had increased by 10% Tuesday as some…

Central Bank Estimates 4.17% GDP Growth in 2025 The Central Bank of Nigeria (CBN) has announced that the 2025 economic indices indicate a positive outlook, with the nation’s GDP expected to accelerate to 4.17 per cent for faster economic growth. Mr Muhammad Abdullahi, Deputy Governor, Economic Policy Directorate, CBN, revealed this on Tuesday during the 11th edition of the National Economic Outlook: Implications for Businesses in 2025. The hybrid event, convened in Lagos, was organised by the Chartered Institute of Bankers of Nigeria (CIBN) Centre for Financial Studies in collaboration with B. Adedipe Associates Ltd. Abdullahi said the nation’s 2025…

Zenith Bank Spikes on Investors Q4 Earnings Bet Zenith Bank Plc market value hits record high in the equities segment of the Nigerian Exchange during early trading hours on Wednesday. Its 31.396 billion shares outstanding were priced above N1.48 trillion during a midweek rally that pushed its market price to N47.25. The banking stock breached some resistance levels as investors increased shareholding in Ajose Adeogun based financial services warehouse. According to data from the Nigerian Exchange, Zenith Bank share price rose to N47.25 two hours after trading session began over bargain hunting. The current price is the best Zenith Bank…

Interbank Rates Fall as Remita Inflow, CRR Refund Boost Liquidity Nigeria’s banks borrowing activities at the Central Bank of Nigeria’s (CBN) standing lending facility (SLF) reduced as liquidity levels in the financial system improved sharply. In their separate notes, analysts said the latest round of inflows in the money market altered the short-term benchmark interest direction. While funding rates remained elevated, the market recorded a significant slide on the day ahead of the auction of N530 billion worth of Nigerian Treasury bills. Rates declined as Remita inflows, cash reserve credit, and coupon payments on FGN bonds boosted liquidity levels in…