Author: Marketforces Africa

Money Market Rates Climb as Banks Face Liquidity Squeeze Money market rates remained elevated as a liquidity deficit in the banking system persisted. The funding profile was in red throughout last week in the absence of significant inflows into the banking system. Hence, the Nigerian Interbank Offered Rate (NIBOR) surged, reflecting increased liquidity pressures as banks with limited funds sought higher rates for lending. Banks maintained a borrowing spree in the new week to fund operations ahead of midweek Treasury bills auction sales. However, interbank liquidity improved slightly due to inflows from the FGN bond coupon amounting to about ₦66…

Naira Appreciates as Foreign Currency Demand Pressures Ease The naira reclaimed value in the foreign exchange (FX) market as demand for the US dollar eased. The local currency strengthened after the Central Bank of Nigeria bolstered liquidity with more than $300 million in FX sales to banks. Latest update from authorised dealers revealed that Apex Bank intervened yet again in the forex market on Friday, selling $28.7 million between the rate of N1,545.00/$1 – N1,555.00/$1, bringing the total FX sales for the week to $329.6 million. In the official market, the exchange rate appreciated slightly by 8 basis points against…

Oil Import Licence Dispute: Dangote Suit Against NMDPRA, Others Stalled Hearing in a suit filed by Dangote Petroleum Refinery and Petrochemicals FZE over bid to stop issuance of oil import licences to some oil marketing companies suffered setback on Monday at a Federal High Court in Abuja. The matter, which was scheduled for hearing before Justice Inyang Ekwo, could not proceed due to the delay by Dangote Refinery to serve its amended originating summons on the defendants. Dangote Refinery had sued NMDPRA and Nigeria National Petroleum Corporation Limited (NNPCL) as 1st and 2nd defendants. Also joined as 3rd to 7th…

Entain Audit: UK Financial Reporting Council Probes KPMG The Financial Reporting Council, UK accounting watchdog, has launched an investigation into the audit conducted by KPMG on the financials of bookmaker Entain for the year ended December 2022, it said on Monday. The Financial Reporting Council said its investigation would be conducted by its enforcement division under the Audit Enforcement Procedure. KPMG is Entain’s group external audit and in 2023 completed its sixth financial reporting audit of the bookmaker, according to Entain’s annual report. “The Financial Reporting Council has commenced an investigation in relation to the audit conducted by KPMG LLP…

Ecobank Partners CreditCorp to Offer Affordable Financing to Customers         Ecobank Nigeria has partnered with the Nigerian Consumer Credit Corporation (CrediCorp) to offer affordable and flexible loans to customers. These loans can be used to finance a variety of needs, including paying school fees, rent, maintenance costs, medical bills, car purchase & repairs, asset purchase, and more. The program is available to civil servants and private-sector employees whose salaries are paid through Ecobank. New customers can also benefit upon presentation of an employer undertaking to pay subsequent salaries through Ecobank. Starting this January, the initiative provides flexible repayment options and a…

Sell Pressure in Nigerian Bond Market Provokes Yields Surge Inflation risks triggered selloffs in the Nigerian bond secondary market ahead of fresh supply in the first quarter of 2025. Nigeria’s accelerating inflation rate, which settled at 34.80% in December 2024, has reduced the real return on investment portfolio in the bond market. Hence, the local bond market traded with a bearish sentiment throughout the week, with mid-dated papers such as the February 2031 and May 2033 bonds seeing offers at 22.10% and 21.20%, respectively, traders said in a note. Sell pressures heated up the yield curve as investors focused their…

Oil prices increased in the global commodity market due to supply risks following the U.S. latest sanctions

Banks borrowed about N4 trillion from the Central Bank of Nigeria’s (CBN) standing lending facility to close

External Reserves Fall as CBN Defends Naira Nigeria’s gross external reserves fell eight times since the first week in 2025, amidst a slowdown in US dollar inflows and sustained FX intervention. Inflows from $2.2 billion Eurobond sales have not affected the gross balance in the nation’s external reserves significantly. According to data from the Central Bank of Nigeria (CBN), the gross external reserves settled at $40.350 billion last week. The foreign reserves declined from $40.920 billion in the first week of 2025. Analysts said inflows appear to have moderated as first OMO bills auction saw moderate subscriptions.  While the market…

Dangote Cement Lost 16.5%, Now Trading at 48% Discount Dangote Cement Plc settled at about 48% discount to its 52-week high on the Nigerian Exchange on Friday, after the stock fell, rose, and steadied in the local bourse. With production capacity of 52 million metric tonnes annually across various locations on the continent, Dangote Cement has deepened its footprint in African markets. This substantial capacity makes Dangote Cement a vital player in driving infrastructure development in Nigeria and across other African markets. Nigeria’s high interest rate environment has become a pressure cooker for the high-leverage cement company, coupled with its…