Category Nigerian Economy

Dear Finance Minister, Please drop the refinancing idea

Last week, the Finance Minister, Kemi Adeosun announced that the Federal Executive Council had approved a plan to refinance $3billion (N1.1trillion) worth of Nigerian Treasury Bills with issuance of 3-year dollar bonds. The aim of the plan, which is still to go the National Assembly for approval, is to lower debt service costs as by […]

Nigeria – Fixed Income Weekly

The week that was (July 17-21) – Yields curve rises on softening system liquidity Despite net OMO bill issuances, NTB yields soften: Despite sustained liquidity tightening as the CBN issued NGN275bn worth of OMO bills to take out NGN97bn in maturities, benchmark Nigerian Treasury Bill (NTB) yields declined: 91-day ( down 510bps), 182-day (down 100bps) […]

June 2017 Inflation: Headline reading positively surprises, but no respite for bond market bulls

Softer food inflation induces a slowdown in monthly inflation On Monday, the National Bureau of Statistics (NBS) released the June 2017 inflation numbers and contrary to my call for a sticky number at 16.3% y/y, headline inflation declined for the fifth consecutive month to 16.1% y/y. (May : 16.3% y/y). In recent readings, inflation had […]

Nigeria – Fixed Income Weekly

Starting today, I will start posting my personal views on developments in the Nigerian fixed income market at the start of every week. Hopefully this should get me blogging more frequently. Hope you enjoy this. Do leave comments on anything from writing style to your views on developments. The idea is to create a discussion […]

IMF and the Naira Valuation: Hidden Intentions or Naive Estimation?

Last week, the International Monetary Fund (IMF) released its Article IV report on Nigeria, which essentially is the international agency’s review of key macroeconomic developments in Nigeria over 2016 and its recommendations for policy makers on how to manage the economy in the near and medium term. The report, which can be assessed here, is […]

Which way Nigeria: To float or not?

No single exchange rate regime is appropriate for all countries in all circumstances. Countries will have to weigh the costs and benefits of floating in light of both their economic and their institutional readiness.

EXCERPTS FROM THE SEPTEMBER 2016 MPC

Last week the monetary policy committee (MPC) of the Central Bank of Nigeria voted to leave its key policy rate unchanged at the record 14% level despite fresh data on Monday indicating that the economy shrank for the third consecutive quarter. Not that this was unexpected as a Bloomberg poll of economists all expected no […]