Category: Nigeria Weekly

Oil prices and FX reserves

One can almost hear the sigh of relief coming from Abuja.  Oil prices are up and the immediate threat to the nation’s foreign exchange reserves has receded. Markets (long-dated bonds

The CBN’s box of tools

Economic growth; inflation; foreign exchange.  These are three of the Central Bank of Nigeria’s key responsibilities, yet prioritising one at the expense of the others can prove costly.  Yet how

Slow GDP points to MPR rate hold

Q1 2021 GDP was reported on Sunday evening and showed the growth rate at 0.51% year-on-year (y/y). This was better than the 0.11% y/y growth of Q4 but Q1 2021’s

Do you want a 15.0% Naira return?

For the past 18 months investors in 1-year risk-free Nigerian Treasury Bills (T-bills) have been denied a return anywhere near the rate of inflation. Yet this has begun to change

Comparing Mutual Funds, Apples & Oranges

Tomorrow we publish our report on the Mutual Fund (Collective Investment Scheme) industry. The total assets under management (AUM) of Nigeria’s Mutual Funds grew by 50% last year to N1.6

Transparency and Foreign Direct Investment

Last week the Central Bank of Nigeria removed the directors of First Bank of Nigeria, but reinstated its managing director, in a move that grabbed headlines. It raises the issue

Oil prices to the rescue?

It was in April last year when oil prices hit multi-year lows, the price of Brent crude dipping down to US$19.33/bbl late in the month and West Texas Light hitting

The CBN and interest rates

Last week the fixed income markets received two important indicators as to the likely direction of market interest rates.  One was the fact that a few members of the Central

Monetary Policy Rate decision

The Monetary Policy Committee (MPC) of the CBN meets today and tomorrow to decide upon its Monetary Policy Rate (MPR). We estimate that it will keep the MPR on hold

Inflation and interest rates

Inflation continues to rise, with February inflation reported at 17.33% year-on-year after 16.47% y/y in January, and food inflation at 21.79% y/y. Policymakers believe that structural issues are the core

  • Featured
Year Ahead-Re-risking the financial system

Oil prices: In a global oil market threatened with over-supply, it appears that OPEC, and its ally Russia, are doing a good job of limiting production.

  • Featured
Year Ahead-Re-risking the financial system

Year Ahead 2020: Re-risking the financial system

Oil prices: In a global oil market threatened with over-supply, it appears that OPEC, and its ally Russia, are doing a good job of limiting production.