Overview

January extended bullish sentiment across Nigeria's financial markets with buying interest persisting across equities and T-bills, while the FGN bond market sustained sell pressure ahead of the Debt Management Office’s elevated domestic borrowings. Pressure remained on the exchange rate of the Naira in the I&E window. On the macroeconomic side, December’s headline inflation eased by 12bps to 21.34% y/y. Food inflation (-37bps to 23.75% y/y) also moderated, reflecting the impact of base effect from the same period a year ago. However, core inflation (+25bps to 18.49% y/y) rose, attributable to the price increases across all the core inflation sub-baskets amid the intermittent PMS scarcity, lingering impact of high energy prices, and increased spending in line with the festive period. Elsewhere, on 27 January, Moody's Investors Service ("Moody's") downgraded Nigeria’s sovereign credit rating further to ‘Caa1’ from ‘B3’ and changed the outlook to ‘Stable’.

READ MORE

Subscribe to Coronation Research