Category: Research

Nigerian GDP better than thought

When the World Bank recently published its Global Economics Prospects, we were surprised to see a 4.1% recession estimated for Nigeria in 2020.  In our view, the Nigerian economy is

Naira crawling peg?

The Central Bank of Nigeria (CBN) follows a managed exchange rate policy, but is it moving towards a crawling peg?  Last year saw several changes in the CBN’s official rate,

A year in two charts

2020 was dominated by the Covid-19 pandemic, the crash in commodity prices and the global recession. Right? Not quite. Looking back over the past 12 months in Nigeria we reason

Interest rates on the rise

Nigerian market interest rates are on the rise. This marks the end of the long – over a year – march south. But what next? In our view, the key

Oil above US$50.00/bbl

Last week the price of oil, Brent crude, edged up over US$50.00/bbl, the first time we had seen this level since March. This raises hopes of much stronger public finances

Saving Interest rates?

Last week saw the Central Bank of Nigeria (CBN) announce changes in the foreign exchange (FX) market and in its Cash Reserve Ratio (CRR) regime. The changes in the FX

Where is the money going?

Interest rates have been falling all year and the government is running a deficit. So, is it safe to assume that the government is issuing a lot more Treasury Bills

CBN likely to leave MPR at 11.50%

The Monetary Policy Council (MPC) of the Central Bank of Nigeria (CBN) meets today and is due to deliver its verdict on its Monetary Policy Rate (MPR) tomorrow. We think

The second-best equity market in the world

As of Friday, the Nigerian Stock Exchange was the world’s best-performing equity market in local currency terms and its second-best performer in US dollar terms. The market was up 30.53%

The Biden effect

The electoral victory of Joe Biden as the next President of the United States of America has positive consequences for Nigeria, we believe. He is likely to give Africa a

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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.