Author: Marketforces Africa

Excess Liquidity in Banking System Tightens Short-Term Rates The banking system closed in July with a high liquidity balance in the absence of significant funding pressures ahead of substantial inflows from Treasury, coupon payments, and open market operations bills in August. With the surplus liquidity balance in the financial system, the short-term benchmark interest rates were relatively lower since the week began, with intermittent upswings seen but not significant enough to push funding costs of market operators. On Thursday, the money market rates were little changed amidst rising liquidity levels in the Nigerian banking system, boosted by additional inflows in…

NGX Return Hits 35.89% as Equity Investors Gain N364bn The Nigerian Exchange (NGX) delivered a year-to-date return of 35.89% as equity investors portfolio value increased by N364 billion on Thursday, the last trading session for July.  The stock market extended its bullish momentum as the All-Share Index (ASI) rose by 0.42% to close at 139,863.52 points, lifting the year-to-date (YTD) return to 35.89%. Stockbrokers said the upward trajectory reflects sustained investor optimism and deepening confidence in the resilience of market fundamentals. Consequently, market capitalisation gained ₦364.55 billion to settle at ₦88.42 trillion, buoyed by ample liquidity and strong demand for…

BADEA Boosts Shelter Afrique Development Bank Capital with $120m Arab Bank for Economic Development in Africa (BADEA) has approved a landmark USD 120 million to support the capitalization program of Shelter Afrique Development Bank, the leading Pan-African institution focused on affordable housing and urban development. The concessional financing facility will help eligible member states settle and increase their capital subscriptions to ShafDB, an official statement said. This initiative, developed in partnership with the Arab Bank for Economic Development in Africa introduces an innovative financing mechanism through which eligible member states can access on-lending at competitive terms. The BADEA-supported facility, totaling…

Nigeria’s Port Harcourt Refinery Not for Sale—NNPC The Nigerian National Petroleum Company Limited (NNPC) Ltd has officially ruled out sale of the Port Harcourt Refining Company, reaffirming its commitment to completing high-graded rehabilitation and retention of the plant. The Group Chief Executive Officer (GCEO) of NNPC Limited, Bashir Bayo Ojulari, announced this at a company-wide town hall meeting on Tuesday at the NNPC Towers, Abuja. He stated that the position isn’t a shift. Rather, it is informed by ongoing detailed technical and financial reviews of the Port Harcourt, Kaduna and Warri refineries. The ongoing review indicates that the earlier decision…

Seplat Energy’s Profit Plunges by 45% to $27.4 Million Seplat Energy Plc reported a sharp year on year decline in profitability in the first half of 2025, details from its unaudited financial statement posted on the Nigerian Exchange revealed. Its profit after tax fell by 45.1% year on year to $27.4 million, driven by a sharp rise in net finance costs and tax expenses, according to analysts notes. Seplat revenue rose by 231.5% year on year to $1.4 billion, bolstered by the consolidation of Seplat Energy Production Nigeria Unlimited (SEPNU), which significantly lifted working interest (WI) production volumes, according to…

Oil Jumps as Trump Threatens India for Buying Russian Crude Oil prices jumped to a six-week high in the global commodity market as the U.S. administration revealed plan to sanction India for importing Russian crude. President Donald Trump threatened to penalize India for buying Russian crude, noting that his administration tightened a crackdown on supplies from Iran. The US will impose 25% tariffs on goods imported from India “plus an unspecified penalty” for buying Russian oil and weapons, Trump has said. In 2024, the US had a trade deficit of $45.8 billion with India. Posting on his Truth Social platform,…

Excess Liquidity in Banking System Keeps Rates Lower Excess liquidity level in the banking system has continued to keep short-term benchmark interest rates tight, reflecting the absence of funding shock. Banking system liquidity increased despite the ₦185.9 billion outflow for settlement of Nigeria’s monthly bond auction conducted at the beginning of the week. According to market data released by AIICO Capital Limited, liquidity conditions increased by ₦155.7 billion to close the day at ₦1.3 trillion, largely driven by a ₦459.0 billion increase in the standing deposit facility.  Interbank rates movements were also mixed, as the Open Repo Rate (OPR) remained…

Federal Government Increases Scholarship Grants by 50% The Federal Government has approved a 50 per cent increase in scholarship grants across all academic levels as part of a major overhaul of its national scholarship programme. Minister of Education, Dr Tunji Alausa, disclosed this on Wednesday during a high-level meeting with officials of the Federal Scholarship Board in Abuja. He said the scholarship has a combined budget of N6 billion for the 2025–2026 cycle, with a view to enhancing national investment in youth development. He said the reforms are aimed at reducing the financial burden on students and supporting inclusive national…

CBN Says Early Exit Package Not Targeted at Northerners The Central Bank of Nigeria (CBN) has reiterated that its Early Exit Package (EEP) implemented in 2024 was entirely voluntary and not to target or destabilize Northerners working in the apex bank. The bank’s deputy governor on economic policy, Muhammad Abdullahi, restated this on Wednesday in Kaduna at a two-day interactive session on government-citizen engagement, organised by the Sir Ahmadu Bello Memorial Foundation. Speaking during the plenary on Governance and Economy, Abdullahi said the bank was congested at its headquarters in Abuja and an offer was made to anyone interested in…

Nigeria’s Eurobonds Yield Falls to 8.30%, US Treasury Steady The Nigerian Eurobond market closed mixed, as uneven investor demand across the curve led to a 1 bp drop in the average yield to 8.30% amidst a pause in US Treasury movement ahead of the US Federal Reserve funds rates decision. Traders said in a separate investor’ note that the Africa Eurobond market traded mixed as investors stayed cautious ahead of the Federal Open Market Committee decision.  Analysts spotted mild buy-side on the mid- and long-tenor instruments, as average yields slipped but there is hope Fed meeting outcome will drive market…