Author: Marketforces Africa

Benchmark Interest Rate Projected to Fall by 3% in 2025 Nigeria’s monetary policy rate has been projected to fall by 300 basis points in 2025 as the nation’s macroeconomic conditions begin to improve. Disinflation has persisted, and a slew of analysts have maintained a positive outlook for the rebased consumer price index to ease for the rest of the second half in the absence of significant economic shock. The Nigerian government is expected to put an end to its contractionary economic policy, with double-digit high interest rates likely to fizzle out in the second half of 2025, some analysts have…

Trump’s New Tariffs Push Investors Further from US- CEO US President Donald Trump’s fresh threat to slap an additional 10% tariff on any country backing the BRICS alliance is accelerating a decisive shift among global investors — one that’s moving capital, attention and confidence away from the United States, says Nigel Green, CEO of global financial advisory deVere Group. “This policy announcement is confirmation of a growing narrative that the US is drifting toward economic isolation,” says Nigel Green. “Investors are reacting to that — not with panic, but with reallocation. Trump’s warning, issued Sunday on Truth Social, comes just…

Oil Prices Fall on Supply Glut Expectations, Tariffs Tension Oil prices fell on Monday as OPEC+ increased output more than anticipated in August, catching markets off guard. Concerns about U.S. tariffs and their potential effects on worldwide economic growth also dampened demand outlooks. At the weekend, OPEC+ alliance announced a larger-than-anticipated production increase for August, while the US heightened trade tensions with a fresh warning of tariff hikes by July 9. Brent crude fell by 0.4%, trading at $67.67 per barrel. The US benchmark West Texas Intermediate (WTI) decreased by about 0.2%, settling at $65.48 per barrel, compared to $65.65…

Saudi, Russia, Others to Boost Oil Supply by 548,000 bpd The eight members of the Organisation of Petroleum Exporting Countries (OPEC) and its allies (OPEC+) group have reached a decision to increase oil output again. The oil producers’ coalition, including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, has announced plans to increase oil production by 548,000 barrels per day (bpd) in August from the levels seen in July. The output rise is part of a gradual and flexible rollback of 2.2 million bpd in voluntary cuts, which began on April 1. The 548,000 bpd…

No Hidden Charges for Non-Resident Bank Verification Number –CBN The Central Bank of Nigeria (CBN) has clarified recent speculations regarding charges related to the newly launched Non-Resident Bank Verification Number (NRBVN) platform. In a statement by Acting Director of the Corporate Communications Department, Mrs Hakama Sidi-Ali, the apex bank affirmed that no hidden fees have been introduced. Sidi-Ali said that the BVN enrollment for Nigerians residing within the country remained entirely free of charge. According to her, the fee referenced in the reports applies solely to the recently launched Non-Resident BVN (NRBVN) initiative, a service designed specifically for Nigerians living…

Investors Ramp Up FGN Bonds, Lock in Yields on Rate Cut Fear Trading activities on the Federal Government of Nigeria (FGN) bonds in the secondary market ended on a bullish note, buoyed by strong investor sentiment and a growing consensus that the Central Bank may ease monetary policy later this month. Traders said investor demand continues to increase amidst declining bond supply from Nigeria’s Debt Management Office. Supported by excess liquidity in the financial system, buying activities concentrated on mid- to long-dated maturities last week, pulling down yields on the naira assets. With inflation showing signs of moderation, investors moved…

Money Market Rates Rise as CRR, Banks Tax Debits Hit Liquidity Money market rates inched up as cash reserve ratio activity and banks corporate tax payments hit liquidity levels in the financial system ahead of fresh inflow from expiring Nigerian Treasury bills worth N130 billion in the new week. This week in the money market, conditions remained tight despite a moderate boost in liquidity. The system closed the week with a net surplus balance of just over N400 billion, investment banking firm Cowry Asset Limited said in its market update. Analysts noted that the excess liquidity in the banking system…

CBN Sells N3.32T OMO Bills to Investors in June, Rate Hits 26.64% The Central Bank of Nigeria (CBN) sold OMO bills worth N3.32 trillion to eligible investors, local banks, and foreign portfolio investors in June with the twin objectives of managing excess liquidity and then attracting hard currency into the economy from offshore participants. The Nigerian monetary authority almost doubled the quantity of OMO bills it provided to market participants in three main market auctions held last month. Trading records showed that the CBN auctioned OMO bills worth N600 billion at each of the three auctions. The CBN’ OMO bill…

Banks Activate Cross Border Spending on Naira Debit Card Deposit money banks (DMBs) in Nigerian has activated cross border or foreign currency spending with the naira debit card, series of update from top financial institutions have revealed. The development comes about three years after many banks suspended international transactions on naira debit cards. The restriction followed a sharp drop in dollar liquidity, which forced many local lenders to restrict transactions of local cards abroad. Naira debit card restriction for online payment became easy target to control outflow of FX as the Nigerian economy experienced forex shortage. However, transactions are allowed…

CBN Defends Naira with US$4.7bn in First Half of 2025 The Central Bank of Nigeria (CBN) defended the naira with $4.7 billion across several foreign exchange market interventions to keep the local currency safe from losing value significantly as offshore investors ’exited positions while in search of safe haven. Forex market analysts believe that the authority’s decision to defend the local currency was borne out of necessity, claiming that global disruption witnessed across financial markets could have eroded the value of the naira significantly. In the first quarter of the year, naira stability was threatened due to elevated global risk-off…