Author: Marketforces Africa

Stock Market Accounts for 25% of Nigeria’s GDP At N92.25 trillion, the equity market capitalisation of the Nigerian Exchange (NGX) has crossed 25% of the country’s gross domestic product size, MarketForces Africa Research highlighted in an investor note. Nigeria has lost its identity as the largest economy in Africa due to weak local currency, high inflation, and reduced private sector activities. After the rebased exercise, Nigeria’s Gross Domestic Product for 2024 inched higher, settling at N372.82 trillion, which is equivalent to approximately $243.7 billion.  The country’s economic size had dropped sizably until the National Bureau of Statistics (NBS) shifted the…

Nigeria’s Macro Outlook Boosts Capital Inflow to 5-Year High Nigeria’s positive macroeconomic outlook boosted capital inflows into the country to the highest level seen since fiscal year 2002, analysts said in their separate notes. The National Bureau of Statistics (NBS) said in a report that total value of capital imported into the country increased by 11% quarter-on-quarter to $5.6 billion in Q1 2025, the highest quarterly capital inflow recorded since Q1 2020. On a year-on-year basis, capital imports jumped by 67%, reflecting renewed investor interest in Nigerian assets amidst elevated yield in the fixed income market. “Although the quarterly growth…

Nigeria’s Eurobond Rally Ahead of Short Duration Expiration Nigeria’s sovereign Eurobond yield settled lower, dropping by two (2) basis points below its open rate as foreign portfolio investors and asset managers increased bets, reflecting positive sentiment in the international market. The sustained rally on Nigeria’s external borrowing instrument reflects market perception of the country’s ability to meet short-term obligations with near-zero default risk following successes attributed to local economic reforms. Foreign investors took particular interest in the country’s sovereign Eurobond note, which is set to mature in November, dragging yield downward. The sustained yield slowdown on Nigeria’s sovereign US dollar-denominated…

Nigeria Treasury Bills Yields Steady, Rate on 1-Year Rises The average yield on Nigerian Treasury bills (NTB) steadied at 17.77% in the secondary market as investors shifted attention to the midweek auction. Trading activity was relatively quiet across the short, belly, and long end of the curve due to N220 billion Treasury bill auction floated by the authority. Across the curve, the average yield contracted at the short (-1 bp) and mid (-1 bp) segments, driven by the demand for the 80-day to maturity (-1 bp) and 171-day to maturity (-1bp), bills, respectively. Meanwhile, yield expanded at the long (+2…

Rates Ease, CBN Tightens Liquidity in Banking System The short-term benchmark interest rates ease even as the financial system liquidity plunged sharply into deficit following settlement of OMO bill auction on Wednesday. The Central Bank of Nigeria (CBN) had floated bills worth N600 billion via an open market operation with target to reduce excess liquidity level in the financial system. The authority received higher subscriptions from eligible investors, raising N2.12 trillion instead of the amount of OMO bills floated for sales. With the payment for the OMO bills from investors, the CBN has successfully eliminated excess liquidity balance in the…

Naira Mixed as Foreign Reserves Climb Near $40bn The Nigerian naira exchange rates diverged across official and parallel markets as accretion into the nation’s foreign reserves increased gross external reserves to about $40 billion this week. The Central Bank of Nigeria (CBN) FX data updated on Wednesday revealed that the naira depreciated against the dollar at the official window, settling at N1534.43 from N1533.10 on Tuesday. The spot rate touched an intraday high of N1537.25 in the absence of CBN’s FX intervention following the latest FX inflows from open market operations. The market experienced a shift in FX liquidity as…

Nigerian Exchange Expands to N92.25trn after 25-Day Rally The Nigerian Exchange (NGX) market capitalisation expanded to N92.25 trillion on Wednesday following its 25-day non-stop bullish streak, which has positioned the local bourse among global performers. Still, the bargain hunting shows no sign it will fizzle out, as corporate earnings releases and dividend announcements attract investors attention to fundamentally strong counters on the NGX. Trading activities showed there was some sort of sectoral rotation as the insurance index drove the stock market momentum—in an unusual trading pattern—suggesting its steep undervaluation. Trading data from the Nigerian bourse revealed that the All-Share Index…

South African Rand Rally as Business Outlook Improves The South African rand traded around 17.8 per US dollar, its strongest level since July 25, supported by a softer dollar amid weak U.S. economic data and growing apprehension over upcoming Federal Reserve appointments and global trade tensions. The market has shifted attention to whether South Africa can negotiate improved trade terms, as it faces a 30% duty on a broad range of exports to the U.S. starting August 8—the highest among Sub-Saharan African countries. The US is South Africa’s third-largest trading partner, accounting for 7.5% of its total trade, with agricultural…

WhatsApp Bans 6.8 Million Scam-Linked Accounts WhatsApp says it has banned over 6.8 million accounts linked to criminal scam centres and introduced new safety features to protect users and prevent fraud on the platform. The Vice President of Public Policy for Africa, Middle East and Türkiye at Meta, Mr Kojo Boakye, disclosed this in a statement on Tuesday. Boakye said the accounts were removed between January and June 2025 as part of WhatsApp’s global strategy to disrupt criminal activity and protect users. “The fight against scams is relentless, and we are continually evolving our defences to stay ahead of bad…

Nigeria’s Total Capital Importation Rises to $5642.07m in Q1 The National Bureau of Statistics (NBS) says total capital importation in Nigeria stood at 5642.07 million dollars in the first quarter of 2025. The NBS said this in its Nigeria Capital Importation 2025 first quarter report released in Abuja. The report said that the first quarter figure was higher than the 3376.01 million dollars recorded in the same period in 2024, indicating an increase of 67.12 per cent. “When compared to the preceding quarter, capital importation increased by 10.86 per cent from 5089.16 million dollars in the fourth quarter of 2024.…