Author: Marketforces Africa

Oil Prices Ease amidst Bearish Demand Expectation Oil prices eased in the global commodities market over a mixed demand outlook. China’s latest data suggest oil demand would remain depressed due to weak economic activity. The commodities markets are set for a potentially turbulent year ahead, ING commodities strategists hinted ahead of a live webinar.  Key drivers include Donald Trump’s return to the political scene, China’s efforts to sustain its economic recovery, and the pace at which central banks ease monetary policy. The international benchmark Brent crude fell by 0.1%, settling at $75.87 per barrel. The US benchmark West Texas Intermediate…

U.S. to Post Largest Trade Deficit in History in 2024 – National Bank The U.S. is on track to post the largest trade deficit in history in 2024, but it would be even larger if not for the country’s status as a net energy exporter, National Bank of Canada said in a Tuesday note. The U.S. trade deficit is nearing US$1.08 trillion as of November 2024, the bank noted, citing newly released data. Meanwhile, the country achieved a US$3 billion energy trade surplus through November 2024. In a recent study, National Bank said that to re-industrialise Canada, the country must…

Naira Underperforms 2024 Bullish Predictions Naira exchange rate projections failed in 2024 on accounts of various market disruptions and the visible hands of the Central Bank in the demand and supply equation. With the Central Bank of Nigeria’s (CBN) initial naira’s grossly undervalued tantrum, a slew of investment firms had joined with bullish projections. At the close of 2024, the naira settled at N1538 per US dollar, an exchange rate higher than predictions made by Goldman Sachs, Fitch Ratings, Renaissance Capital, Financial Derivative Company and others. In the first quarter of 2024, Goldman Sachs predicted that the naira would appreciate…

Foreign portfolio investors (FPIs) took profit on Nigeria’s sovereign Eurobonds in the international capital market ahead of inflation data for December 2024. Trading session ended bearish with sovereign bonds from Sub-Saharan Africa and North Africa experiencing a sell-off.

Benchmark Yield on Nigerian Bonds Eased Ahead of Q1 Auction The average yield on Nigerian government bonds steadied in the secondary market due to thin transaction records ahead of the primary market auction calendar. The market is currently expecting the Debt Management Office (DMO) to release local borrowing plans via bond sales in the debt market. On Wednesday, the bond market experienced minimal activity, although mild bullish sentiment was observed at the JAN 26 (-38 bps) instrument. In its note, CardinalStone Securities Limited told investors that this led to a contraction at the short end (-3bps) of the yield curve,…

NDDC Laying Foundation For Economic Development In Niger/Delta—MOSIEND The Movement for the Survival of the Izon Ethnic Nationality in the Niger Delta (MOSIEND) has lauded the current leadership of the Niger Delta Development Commission (NDDC) for the successes recorded in 2024.The President of MOSIEND, Dr. Kennedy Tonjo-West, made the commendation when he spoke with the News Agency of Nigeria (NAN) on Tuesday in Yenagoa in an assessment of developments across the Niger Delta region in 2024. He appreciated President Bola Tinubu for assembling a board that has demonstrated mutual respect and an unprecedented level of dedication to addressing the challenges…

Fixed Income Market Yield to Decline in 2025 – Analysts Fixed income market yield has been projected to decline in 2025 amidst changing dynamics around inflation and interest rate expectations for the year. Nigeria plans to raise more than N7 trillion from local debt capital market to partially finance the 2025 budget deficit. Latest market data revealed that the average yield on Nigerian government bonds has continued to hover at 19.78% due to subdued trading activities ahead of the bond auction calendar. The lower supply has kept trading activities tight, and some investors anticipate yield repricing in the debt market…

Expert advises start-ups to tap into energy, food deficits An economic expert has advised business start-ups to capitalise on the vast opportunities present in the nation’s energy, food, and manufacturing investment deficits to create wealth in 2025. Dr. Biodun Adedipe, Founder and Chief Consultant of B. Adedipe Associates Ltd., gave the advice on Wednesday at the 2025 Nigeria Economic Outlook. The event was organised by First Bank of Nigeria Ltd. in Lagos, with the theme ‘Nigeria 2025: Path to Economic Rebound and Recovery’. Adedipe, one of the panelists at the event, emphasised that the successes of the last two years’…

The discount rate on Nigerian Treasury bills with a 364-day tenor was slashed by 28 basis points at the primary market auction conducted by the Central Bank of Nigeria (CBN) yesterday.

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…