Overview

December extended bullish sentiment across Nigeria's financial markets with buying interest persisting across equity, T-bill and FGN bond markets to close the year. Pressure remained on the exchange rate of the Naira in the I&E window. On the macroeconomic side, November’s headline inflation notched higher by 38bps to 21.47% y/y. Food inflation (+40bps to 24.13% y/y) rose by more than the headline rate, reflecting the impact of rising transportation costs and holiday-induced demand. Core inflation (+48bps to 18.24% y/y) also rose, attributable to the persistent fuel scarcity and consequent increase in energy costs as well as lingering exchange rate challenges.

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