Author: Marketforces Africa

Money Market Rates Ease, Liquidity Deficit Expands Money market rates eased despite tight liquidity in the financial system. The short-term benchmark interest rate declined as banks extended borrowing actions at the Central Bank of Nigeria’s (CBN) Standing Lending Facility (SLF). Borrowing from the window has become the norm for smaller banks, while some cash-rich lenders play hard at the standing deposit facility to lodge excess liquidity. With the numbers of primary market auctions easing gradually as the year runs to an end, market analysts are anticipating a liquidity boost from maturing instruments. On Wednesday, the Nigerian Interbank Offered Rate (NIBOR)…

The naira rallied in the foreign exchange (FX) markets except on the BMatch system amidst a plan to dedollarise the Nigerian economy. Spot FX data from the FMDQ platform revealed that the local currency exchange rate appreciated by 0.33%, closing at N1,538.88 per US dollar in the official market. 

$1bn Loan: Dangote Tackles NNPC on Liquidity Challenge Claim Dangote Refinery has tackled Nigerian National Petroleum Company (NNPC) Limited over claimed that its $1 billion oil-backed loan agreement was instrumental in supporting the refinery operations during liquidity challenges. NNPC’s Chief Corporate Communications Officer, Olufemi Soneye said had said the privatized oil company helped Dangote to achieve the Refinery while speaking at an Energy Relations Stakeholder Engagement in Abuja. Soneye said under the visionary leadership of Mele Kyari, NNPC Ltd has achieved groundbreaking milestones, redefining the trajectory of Nigeria’s oil and gas sector. Soneye listed the restart of the Port Harcourt…

2025 Appropriation Bill: FG Targets N34.82trn Revenue President Bola Tinubu says the Federal Government targets N34.82 trillion revenue to fund the N47.9 trillion 2025 budget. Tinubu stated this on Wednesday in Abuja while presenting the 2025 Appropriation Bill to joint session of the National Assembly. The N47.9 trillion budget was christened “Budget of Restoration, Securing Peace and Rebuilding Prosperity.” Tinubu said that the budget reinforced his administration’s roadmap to securing peace, prosperity and hope for the greater future of Nigerians. He said that the Federal Government’s expenditure was projected to be N47.9 trillion, including N15.81 trillion for debt servicing. “A…

Conoil Halts Momentum after Hitting 52-Week High Conoil Plc has halted its gaining streaks after the oil stock accelerated successive to breach resistance line more than two times. The stock is trading at N387.2, its best price in the last 52-week. Within the same time, it has hit the bottom. In the last seven trading session, Ticker: CONOIL has gained about 30% due to strong value hunting in the equities market. The stock had hit the bottom of the wrung before it fast and furious gain amidst anticipated earnings growth. Data from the Nigerian Exchange revealed that Conoil had traded…

Oando Energy Rallies after Shareholders Meeting Oando Energy Plc market value picked up momentum after the company annual shareholders meeting on Tuesday. The oil stock is currently trading at about 4% above yesterday close in the equities market, trading at N71.2 during early trading hour on Wednesday, from N68.5. Oando Plc hit N72.95 per share on Monday but nosedived as the company announced its net profit for 9month of financial year 2024 was negatively impacted by exchange rate fluctuations. The stock had peaked at N98.4 per share, its 52-week high during a good time in the local bourse when value…

Positive Demand Outlook Raises Crude Oil Prices Positive demand outlook in the United States lifted crude oil prices higher in the global commodity market on Wednesday. Latest data indicates there will be an increase in oil demand in the US, the world’s largest crude consumer. This is coming as the market expects U.S Federal Reserve’s rate cut to reduce pressure on global energy costs, an expectation that is further supported by weak dollar index. Brent crude rose by 0.36% to 73.28 per barrel, up from the previous session’s close of $73.01. The US benchmark West Texas Intermediate also increased by…

UK Inflation Rises to 2.6% in November Britain’s annual inflation rate rose to 2.6% in November from 2.3% in October, according to data from the Office for National Statistics published Wednesday. The consumer prices index rose by 2.6% last month from 2.3% in October, driven by the rising cost of petrol, groceries and an increase in tobacco duty in the budget. The reading from the Office for National Statistics, which matched City economists’ forecasts, showed the headline rate rising further above the Bank’s 2% target for a second consecutive month. The latest reading is consistent with the consensus estimate. On…

Interbank rates diverge on signs of improved liquidity in the financial system on Tuesday. Due to inflows from signature

The naira traded on mixed note in the foreign exchange markets as data from FMDQ platform showed that US dollar inflows decline by about 15%.