Category: Macroeconomic Update

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) concluded its first monetary policy meeting of 2022 today, maintaining all key rates. Please see below, a summary of the committee’s decisions.   –          Retain MPR at 11.50% –          Retain CRR at 27.50% –          Retain Liquidity ratio at 30% –          Maintain an asymmetric… Continue reading CBN HOLDS KEY POLICY RATES TO FOSTER ECONOMIC GROWTH – 25 JANUARY 2022

Nigeria’s Headline Inflation Figures: A change in trajectory Nigeria’s Consumer Price Index (CPI) for December 2021 expanded by 15.63% year-on-year, up from 15.40% recorded in November 2021, following 8 consecutive months of decline. This rise can be attributed to increased consumer spending observed during the yuletide season. The composite food inflation grew by 17.37% year-on-year… Continue reading INFLATION WATCH – DECEMBER 2021

Nigeria’s Headline Inflation Figures: Sustained downward Trajectory The National Bureau of Statistics (NBS) confirmed in its monthly report, the nation’s Eighth consecutive month of disinflation, with the Consumer Price Index (CPI), which measures inflation slowing to its lowest in 12-months at 15.40% year-on-year in November 2021 vs 15.99% recorded in October 2021. This rise in… Continue reading INFLATION WATCH – NOVEMBER 2021

The Monetary Policy Committee (MPC) concluded its final meeting for 2021 today, unanimously maintaining all key policy metrics as follow:   –          Retain MPR at 11.50% –          Retain CRR at 27.50% –          Retain Liquidity ratio at 30.00% –          Maintain an asymmetric corridor at +100/–700 basis points around the MPR. The MPC reiterated the effectiveness of… Continue reading MPC retains Benchmark Interest Rate at 11.50% – 23 November 2021

HIGHLIGHTS •The National Bureau of Statistics (NBS) published the Gross Domestic Product (GDP) figures for Q3’2021, which revealed that the economy grew by 4.03% year-on-year (vs. 5.01% in Q2’2021 and 0.51% in Q1’2021). This reflects the fourth consecutive quarter of sustained growth after exiting the recession witnessed in 2020. •The positive growth was largely driven… Continue reading NIGERIA Q3’2021 GDP GROWS BY 4.03% YEAR-ON-YEAR

Nigeria’s Headline Inflation Figures: Slows down to 15.99%, surpasses 16.2% estimates. The headline inflation rate in October printed at 15.99% year-on-year, which showed a further decline from 16.63% recorded in September 2021. The moderation trend in inflation figures can be traced to the base year effect and food harvest seasonality which supported food prices. This… Continue reading INFLATION WATCH – OCTOBER 2021

Nigeria’s Headline Inflation Figures: Trickles Further to 16.63% The annual inflation rate for September printed at 16.63% year-on-year (down 38bps from 17.01% recorded in August 2021), on the back of tempered food price growth and boost from a lower base effect. The published figures indicated that inflation fell to an eight-month low in September, albeit… Continue reading INFLATION WATCH – SEPTEMBER 2021

The Debt Management Office (DMO) concluded the book-building process for its triple-tranche Eurobonds offer, after two days of virtual meetings with investors across the world. Investors’ participation was quite remarkable with bids received from both local and foreign which could either suggest an appreciable level of confidence in the government or relatively attractive coupon rates… Continue reading NIGERIA RAISES FRESH US$4.0BN THROUGH EUROBONDS – 22 September 2021

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) concluded its fifth monetary policy meeting of 2021 today, maintaining all key rates. Please see below, a summary of the committee’s decisions.  
 
–          Retain MPR at 11.50%
–          Retain CRR at 27.50%
–          Retain Liquidity ratio at 30%
–          Maintain an asymmetric corridor at +100/–700 basis points around the MPR.

Key considerations by the MPC in retaining key policy rates were the nation’s positive growth, recording a Gross Domestic Product (GDP) growth of +5.01% in Q2 2021, and persistent drop in headline inflation at 17.01% in August 2021.

In its effort to keep track of illicit forex trading activities, the CBN governor re-emphasized that the only recognizable FX rate is the I&E FX rate. He also confirmed investigations into AbokiFX, an online platform that tracks the value of the Naira in the parallel market, for alleged Foreign Exchange (FX) speculation and manipulation. This comes after the Naira depreciated against the U.S. Dollar, to its lowest in history, at the parallel market window, trading at ₦570.00/$1.

Nigeria’s Headline Inflation Figures: Recovery Momentum The annual inflation rate in Nigeria eased for the fifth straight month, down to 17.01% in August 2021 (from 17.38%, the previous month), and matching Bloomberg consensus estimate of 17.00%. It is the lowest inflation rate seen since January 2021, mainly due to the slowdown in food inflation. Please… Continue reading INFLATION WATCH – AUGUST 2021