Author: Marketforces Africa

IEA Cuts Global Oil Demand Growth Forecast The International Energy Agency (IEA) cuts its global oil demand growth forecast for this year by approximately 21,000 barrels per day (bpd) compared to its previous estimate, citing weak demand in the second quarter from the world’s two largest oil consumers, the US and China. Global oil demand is expected to reach 103.76 million bpd this year, representing an increase of about 720,000 bpd compared to last year, according to the IEA’s Oil Market Report. In the previous report, the growth estimate was approximately 741,000 bpd. Demand in OECD countries is expected to…

Oil Prices Jump as Geopolitical Tensions Stoke Supply Fear Oil prices rose on Tuesday amid renewed concerns that escalating tensions between Iran and Israel could disrupt energy supplies from the Middle East. Brent crude increased by around 1.84%, trading at $73.46 per barrel, up from $72.13 at the previous session’s close. Similarly, US benchmark West Texas Intermediate (WTI) increased by about 1.97%, settling at $71.39 per barrel, compared to $70.01 in the prior session. Prices retreated to $69.96 on Monday following reports that Iran was seeking to de-escalate hostilities and resume nuclear negotiations with the US. However, prices rebounded after…

Short-Term Interest Rates Rise as CBN Mops Up Liquidity The short-term benchmark interest rates surged in the money market as the Central Bank of Nigeria (CBN) mopped up liquidity levels in the financial system. The authority conducted an open market operation (CBN) to reduce the amount of free cash flow around in the money market, effectively reducing banks’ capacity to create credits. The week had opened with excess liquidity levels in the financial system due to the absence of primary market auctions and foreign exchange market interventions in the previous week. Yesterday, the CBN conducted simultaneous cash reserves ratio (CRR)…

Headline Inflation Rate Reduces to 22.97% in May – NBS Nigeria’s headline inflation rate declined for the second consecutive month to 22.97% in May, the National Bureau of Statistics (NBS) said in its monthly consumer price index (CPI) report. According to data released by the statistics office on Monday, the inflation rate eased by 74 basis points (bps) to 22.97% year-on-year in May from 23.71% in the month of April. On a month-on-month basis, consumer prices moderated to 1.53% as against 1.86% in the previous month. The report also revealed that food inflation moderated by 12 bps to 21.14% y/y…

Nigerian Treasury Bills Yield Shrinks to 20.6% Ahead of Auction Ahead of the midweek auction, investors are currently earning an average of 20.5% as yield on Nigerian Treasury bills, trading data from the secondary market revealed. Last week, the Nigerian Treasury Bills secondary market maintained a bullish tone throughout, Afrinvest Limited said in an investor note, buoyed by strong demand across the curve and firm system liquidity. Fixed income market analysts said activity was most pronounced on the newly issued 1-year paper (04-Jun-26), which opened the week with aggressive bids before slight resistance led to moderated offers midweek. The investment…

Budget Deficit: Nigeria to Borrow N7trn in Second Half of 2025—Report To meet the nation’s spending plan, the Nigerian government is expected to step up borrowing in the second half of the year, raising N7 trillion to finance the 2025 budget deficit, investment manager Zedcrest Wealth Limited said in a mid-year outlook. Total public debt has expanded to about half of the nation’s gross domestic product size, raising concerns over sustainability. Nigerian government borrowing in the debt market is expected to remain elevated, particularly as budgeted revenues are likely to fall short due to weaker oil receipts stemming from both…

Concerns Mount as Nigeria Runs to Saudi Aramco for $5bn Loan Nigeria is seeking to raise a $5 billion oil-backed loan from Saudi Aramco as part of an effort to boost capital spending and drive economic growth in the absence of organic growth. The move to increase external borrowing, which amounts to N8 trillion in local currency at the prevailing exchange rate, has raised concerns about public debt sustainability. Zedcrest Research predicted in its macroeconomic report for the second half of 2025 that the government will accelerate borrowings to shore up the budget deficit. Local borrowing has slowed, with analysts…

UN Cuts Humanitarian Aid as Funding Crisis Deepens The UN Office for the Coordination of Humanitarian Affairs (OCHA) said it has been forced to cancel planned aid for millions of people due to severe funding shortfalls, calling the move “brutal.” Never before has funding for humanitarian relief declined so sharply, the agency said on Monday. “We have been forced into a triage of human survival,” said Under-Secretary General for Humanitarian Affairs and Emergency Relief Coordinator Tom Fletcher in a statement. “The math is cruel, and the consequences are heartbreaking. Too many people will not get the support they need, but…

Naira Sees Weekly Gain Amidst Zero FX Intervention The naira closed at N1549.35 per US dollar at the official window, according to data obtained from the Central Bank of Nigeria (CBN), from N1553 at the beginning of the trading session last week. The currency market experienced a surge in foreign currency demand that eclipsed US dollar volume available for intraday FX settlement. The naira strengthened week on week, gaining N4 on each dollar in the official window despite the absence of the CBN in the forex market. On Friday, the naira touched N1537 per US dollar in the forex market…

UBA: Analysts Upgrade Earnings, Price Expectations Ahead of Q2 Fuel by optimism, a growing number of Broadstreet equities analysts have upgraded earnings, price expectations for UBA Plc ahead of second quarter results. The upswing in its forecasted earnings boosted investors’ appetite in the equities market, driving UBA Plc market value to about N1.5 trillion on Friday. A slew of analysts formed consensus that the group earnings would continue to growth, supported by its Pan African market footprints and sustained capital investment in banking assets. Hoping for a final dividend of N5.10 in 2025, Cordros Securities Limited set higher price target…