Author: Marketforces Africa

Liquidity: Interbank Rates Decline in Absence of Funding Pressure In the money market, liquidity levels declined despite a significant outflow relating to the Central Bank of Nigeria’s (CBN) OMO bill auction settlement. Data from the FMDQ platform confirmed that short-term benchmark interest rates eased irrespective amidst midweek Treasury bills auction sales. Banks demand for funding has yet to pick up as markets prepare for huge local borrowing to finance Nigeria’s 2025 budget deficit. The Nigerian Interbank Offered Rate (NIBOR) fell across all maturities, signalling sufficient liquidity balance in the banking system yesterday, investment banking firm Cowry Asset Limited told investors…

SEC to enhance framework for government, corporate borrowing Securities and Exchange Commission (SEC) has expressed its commitment to enhancing the regulatory framework for borrowing by governments and corporate entities. SEC’s Director-General, Dr Emomotimi Agama, said this in a statement issued on Wednesday in Lagos. He explained that this move became essential following the recent Supreme Court order mandating direct subvention from the federal government to the 774 local government areas. Agama noted that borrowing plays a critical role in the financial system. He said, “Improving the framework for borrowing is very important because borrowing is an integral part of the…

First Bank Predicts Steady Economic Growth for Nigeria in 2025 First Bank of Nigeria Ltd. has projected steady economic growth for the nation in 2025. The bank said that this projection is due to the bold economic reforms implemented in 2024, including the removal of fuel subsidies. Mr Olusegun Alebiosu, Chief Executive Officer (CEO), FirstBank Group, stated this in his opening remark at the 2025 Nigeria Economic Outlook organised by the bank on Wednesday in Lagos. He described 2024 as a year of miracles and leading to a rebirth for positive economic growth outlook for 2025. Alebiosu, who joined the…

US Dollar Rises Against Sterling, Euro Ahead of FOMC Minutes The US dollar rose against its major trading partners early Wednesday before a busy data schedule, starting with ADP private payrolls data for December. The details of December’s FOMC will be released in today’s minutes, which could throw a bit more support behind the dollar. The dollar is receiving some fresh support from data, particularly from the spike in the ISM services prices paid sub-index in December, ING said in a note. Francesco Pesole, ING analyst, said markets have been tempted in the past couple of days to believe there…

Bitcoin Lost $7000 in 24-Hour as Global Crypto Market Plummets Bitcoin’s price declined by about $7000 as investors exited positions in orange coin in the global cryptocurrencies market on Wednesday. The world’s largest crypto asset had climbed near $102,000 before retail investors booked profit on the rally. Also, the Ethereum price retreated, and a similar pattern was seen in other top digital assets. According to data from the CoinMarketCap.com, the global crypto market cap plunged to $3.35 trillion, translating to a 6.28% decrease over the last day. The total crypto market volume over the last 24 hours settled at $183.72…

The average yield on Nigerian Treasury bills (NTB) declined a basis points to 25.5% ahead of primary market auction (PMA) on Wednesday.

The naira plunged against the US dollar by three basis points, or 2 bps, closing at N1,537.03 in the official market. The exchange rate came under pressure this week as aggressive FX intervention by the Central Bank of Nigeria (CBN) eased.

Ghana’s Private Sector Slows First Time in 3-Month The elections that took place in Ghana in December caused a pause in business at some companies during the month, leading to slower growth of new orders and a dip in business activity, S&P said in a purchasing manager index report. However, the report noted that employment and purchasing activity continued to rise and firms were increasingly optimistic regarding the year-ahead outlook. Input costs and output prices continued to rise sharply, but a recent improvement in the strength of the cedi acted to soften inflation. The S&P Global Ghana Purchasing Managers’ Index™…

Foreign portfolio investors, or FPIs, increased their bets on Nigerian U.S. dollar bonds in the international market amidst elevated yields…

GTCO Closed N209bn from First Tranche of Equity Capital Raise Guaranty Trust Holding Company Plc (GTCO) says it has successfully completed the first tranche of its equity capital raise programme. This followed the completion of the capital verification exercise conducted by the Central Bank of Nigeria (CBN) and the approval of the basis of allotment of the offer by the Securities and Exchange Commission (SEC). Mr Segun Agbaje, Group Chief Executive Officer (CEO), confirmed this in a statement on Monday in Lagos. Agbaje said that the offer, which garnered substantial interest from domestic retail investors, raised N209.41 billion from 130,617…