Monthly Archives: December 2020

Rejigging Nigeria’s economic growth engine: The courage to act

Four years on from the first annual contraction in economic activity in over three decades, the odds are high, that Nigeria’s economy will experience another full year decline after going into a technical recession in Q3 2020. Across the 2016 recession and ongoing 2020 episode, Nigeria’s economy faced exogenous shocks, a sharp drop in oil […]

Nigeria Fixed Income Weekly

The Week that was (December 20-24, 2020) A short trading week with very limited activity across debt and currency markets as investors hunkered down for the holidays. Curve steepening continues driven by higher bond yields, but thin trading: Mixed trends along the Naira yield curve with declines across the front end and increases at the […]

Nigeria Fixed Income Weekly

The Week that was (December 14-18, 2020) After the confusing signals from last week, the tone from the official side of things (DMO + CBN) was that there were no plans to move interest rates higher. However, debt markets require some convincing in the face of another rise in inflation in November. The World Bank […]

Nigeria Fixed Income Weekly

The Week that was (December 7-11, 2020) Thin demand at the PMA drives spike in 1yr NTB: At the NTB auction where the CBN, on behalf of the FGN, planned to roll over NGN50.9billion, though total auction demand was fairly decent at 2x what was on offer (last auction: 2.96x), the bid-cover ratios on the […]

A week of stunning reversals

Event: Last week, the Central Bank of Nigeria (CBN) released two circulars aimed at addressing ongoing issues within the FX and fixed income market. The first circular was targeted as remittances, which comes after a renewed attack by the CBN governor on the media’s focus on the parallel market rate, while the latter announced the […]