Author: Marketforces Africa

AfDB Offers Solutions to Nigeria’s Debt, Forex Challenges The African Development Bank (AfDB) has provided key insights into how Nigeria and other African nations can address their growing debt burdens and foreign exchange challenges. The Bank’s Vice-President for Economic Governance and Knowledge Management, Prof. Kevin Urama, told the News men that strategic borrowing and political stability were critical for growth. Speaking on Nigeria’s debt profile, Urama, the AfDB’s Chief Economist, said that public debt itself was not inherently problematic. “Debt for growth is a known way of growing economies. However, the quality and structure of the debt are crucial factors…

Naira Rates Recalibrate as Pressure Hits ‘Dark Economy’ The naira exchange rate in the black market, Nigeria’s untamed dark economy, appreciated strongly over a week to N1515 per US dollar. Speculative concerns eased after unrelenting efforts of the Central Bank of Nigeria (CBN) to achieve an accurate exchange rate for the naira. But some Nigerians have been hoarding the US dollar in anticipation of obtaining higher spread in the black market – activities that the authority has not been able to curb.  “Transparency is key in the FX market –when Nigeria gets it correctly, every dust would settle around the…

Diversified investment company, VFD Group Plc, equities market value increased by about 10% week on week due to bargain hunting on the Nigerian Exchange (NGX).

Cornerstone Insurance Jumps by 25% after Earnings Forecast Cornerstone Insurance Plc stock market prices surged by 25% as the company’s earnings forecast whipped up investment sentiments. The insurance company’s share price rose to N3.2 on Friday in the equities segment of the Nigerian Exchange due to rock solid share volume demanded by investors, from N2.56. The 25% capital appreciation lifted Cornerstone Insurance’s market value to N58.132 million. The insurance company breached a new 52-week high briefly on Thursday before the share plunged on the back of mild profit taking on Friday. MarketForces Africa revealed that two shareholders have 79% combined…

FCMB Targets N32 billion as Profit in Q1-2025 FCMB Plc has revealed a forecast that show the group is targeting N32 billion as profit for the first quarter of 2025, according to an official filing. The diversified banking group said in its earnings forecast that revenue will come handy at N226.927 billion in the first three months in 2025. The group’s net interest income was projected to settle at N95.404 billion next quarters amidst Nigeria’s high interest rate environment. FCMB Plc bullish estimate is informed by loan repricing after latest adjustment to monetary policy rate. Its projected N3.47 billion FX…

Interbank Rates Slow as Remita, FAAC Credits Boost Liquidity Interbank rates slowed down, trended around 27% in the money market, on the back of sufficient liquidity balance in the financial system. The short term benchmark interest rates movement were in check in the just concluded due to robust liquidity in the financial system. Analysts expect the trend to persist barring any surprise debits for cash reserves maintenance or any liquidity management moves by the Apex Bank in the new week. Last week, local deposit money banks borrowing from the Central Bank of Nigeria’s (CBN) Standing Lending Facility (SLF) was minimal…

Nigeria’s Eurobonds Yield Sinks to 9% as Demand Heats Up The average yield sank significantly as foreign portfolio investors (FPIs) rushed Nigeria’s Eurobonds after the country made a new visit to international capital market. The increased demand for Nigeria’s notes in the secondary market was spurred by an unmet demand from the Eurobond sale last week. New sovereign Eurobonds worth $2.2 billion was priced by the Nigerian government as part of efforts to raise funds to support the country’s huge budget deficit. Nigeria’s Eurobond was significantly oversubscribed to the tune of $9 billion versus $2.2 billion allotment. Nigerian government issued…

Lafarge Africa Rises by 28% as Investors Target Acquisition Price Alpha seekers trading highs and lows on the Nigerian Exchange (NGX) have been making quick bets on Lafarge Africa PLC stocks following Holcim deals with Chinese cement company, Xuaxin. In the equities market, market value of Lafarge Africa increased by about 28% in one week due to strong demand for the cement company’s shares. In a deal, Xuaxin is takeover Holcim all Holcim control interest in Lafarge Africa, trading as Ticker: WAPCO in the local bourse. While Holcim is leaving Nigeria, Chinese company Xuaxin is making expansion into the country,…

Golden Guinea Breweries Draws Investors Attention, Gains 46% Backed by three states in the South East, Golden Guinea Brew Plc, saw significant price appreciation on the Nigerian Exchange (NGX) due to strong buying momentum. The company net loss widened due to negative effects on rising inflation on operating costs on the bottom line. The geographical players saw a strong spike in sales but then its finance costs rocketed, with thin margin. The company focused on selling brewed product in South East, limiting revenue diversification opportunities. Though Golden Guinea products is well in demand, but price increase amidst household thin wallets…

Interest Rate Falls as Investors Bet N2T on OMO Bills The discount rate on Nigerian OMO bills fell to 22.98% at the primary market auction (PMA) in the just concluded week as investors parked more than N2 trillion into monetary instruments. Foreign portfolio investors (FPIs) and some local deposit money banks staked huge funds into Nigeria’s OMO bills in the primary market auction as appetite for naira assets continue to boom. Huge demand afforded the monetary authority an opportunity to slash spot rates on the one of the top liquidity management debt instrument, attracted FX inflows. According to OMO bills…