Analyst Insight - Business Metrics

Nigeria’s gradual road to economic recovery

Mar 2, 2021Mar 3, 2021 Banjo Olaniran

Nigeria’s gradual road to economic recovery By Lukman Otunuga, Senior Research Analyst at FXTM Africa’s largest economy has displayed resilience over the past few months. From defending against the Covid-19 menace to battling untamed inflation and shouldering domestic risks. Initially, the economic outlook was bleak during 2020 after the economy sunk back into its second recession in less than five years. Lockdown restrictions caused significant disruptions in the value chain, halted most aspects of the economy while crippling the manufacturing sector. A growing sense of alarm and unease over…

Nigeria to Appoint Fund Manager for US$37bn Infrastructure Fund

Feb 26, 2021Feb 28, 2021 Business Metrics

Buhari approves formation of N1trn firm to tackle infrastructure deficit

By CSL Analysts Earlier this month, President Muhammadu Buhari approved the establishment of a Public Private Partnership styled Infrastructure company named Infra-Co with an initial seed capital of N1tn expected to grow to N15tn in assets and capital over time. The proposed establishment will attract private sector participation in the nation’s quest to bridge its infrastructure deficit necessary for the growth across all sectors of the economy. According to media reports, the board of Infra-Co will be chaired by the Governor, Central Bank of Nigeria (CBN); Managing Director, Nigeria Sovereign Investment…

FBNQuest Capital Nigeria 2021 Research Outlook: Tentative Emergence from the Shadow of COVID-19

Feb 4, 2021 Banjo Olaniran

FBNQuest Capital Nigeria 2021 Research Outlook: Tentative Emergence from the Shadow of COVID-19 By FBNQuest Capital Global recovery via millions and millions of arms The Federal Reserve has its policy rate at practically zero and will maintain its accommodative stance this year since its employment and inflation objectives are distant following the virus’s impact. The world economy will recover following the development of the vaccine. We believe this process in G7 economies and China will experience the desired impact by the third quarter. With the anticipated recovery in demand,…

A cautious start to a busy week

Jan 18, 2021Jan 18, 2021 Banjo Olaniran

A cautious start to a busy week By Hussein Sayed, FXTM Analyst Following a solid start to the year, investors are turning more cautious as data continues to be released, corporates present their outlook for 2021, President-Elect Joe Biden sets out his economic plan, and most importantly developments around Covid-19 continue. Asian stocks traded mixed today despite data showing that China’s economy bounced back strongly in the final quarter of 2020. The world’s second-largest economy reported 6.5% growth in Q4, well above estimates of 6.1%. Industrial production also beat…

Analyst Insight: A Small Rise in the FGN’s Domestic Debt in Q3 2020

Jan 5, 2021Jan 5, 2021 Banjo Olaniran

Analyst Insight: A Small Rise in the FGN’s Domestic Debt in Q3 2020 FBNQuest Research The FGN’s domestic debt stock amounted to NGN15.85trn (USD37.7bn at the recently adjusted NAFEX rate) at end-September, equivalent to 10.0% of 2019 GDP. It increased by NGN390bn over the quarter, and the stock of FGN bonds by NGN410bn. The DMO had a challenging remit to raise NGN1.6trn from domestic issuance as FGN deficit financing in 2020, and the bonds are by far the largest element in its programme. Its timely data update also shows…

2020: A year of extraordinary uncertainty & unprecedented events

Dec 31, 2020 Business Metrics

2020: A year of extraordinary uncertainty & unprecedented events By FXTM Analyst, Lukman Otunuga It only felt like yesterday that the United States and China reached a ‘phase one’ trade deal and Parliament backed Boris Johnson’s plan to leave the European Union on 31st January 2020. Such encouraging developments lifted investor confidence and raised optimism over the outlook for 2020. Unknown to all, the global economy was in store for a nasty shocker as a string of unforgettable and distressing events rocked financial markets – ultimately cementing their places in…

Op-ed: A Bank in Every Pocket

Dec 22, 2020 Business Metrics

Op-ed: A Bank in Every Pocket By Murray Gardiner, MD of Bluecode Africa Confidence in African digital payment solutions is essential to minimising fraud and corruption while improving the free flow of funds to boost business and economic activity. Their value is illustrated in statistics released by the South African Banking Association (SABRIC) in June 2020. The report found that digital banking fraud had risen by 20% but that the fraud losses on banking applications had only increased by 1%, in spite of a significant rise in transactions. Mobile…

Why businesses should ensure data privacy in vendor relationships

Nov 30, 2020 Business Metrics

By Andrew Bourne ____________________ Whether we realize it or not, we are being tracked everywhere we go on the Internet. In fact, Internet surveillance is so widely used that several vendors have built businesses worth billions of dollars using this model. The websites and descriptions of these renowned data brokers and aggregators openly display the depth and breadth of the information they gather. However, in plain words, it’s a complete surveillance of our digital life. An innocent facade with severe privacy risks in the background Called adjunct surveillance, this kind…

ANALYSIS: Dollar rationing to persist on meagre inflows

Nov 11, 2020Nov 11, 2020 Business Metrics

November 2020 Economic Insight By NOVA Reasearch Analysts Dollar Rationing to Persist on Meagre Inflows and Rising Outflows The CBN intervention across segments of the FX market improved in the month of October, with total intervention sales rising 25% MoM to $1.9 billion from $1.5 billion in September, albeit below the average of $2.0 billion over Q1 2020 when inflows moderated the level of interventions. CBN sales to the SMEs, Invisibles and SMIS (retail and wholesale) segments totaled $540 million compared to $400 million in September. Non-auction sales increased to…

Analysts put economic losses to #EndSARS disruption at N1.5trn

Nov 9, 2020 Business Metrics

The economic cost of the #EndSARS protest disruption is estimated at N1.5 trillion, approximately 1.03 per cent of the GDP and 11.47 per cent of the 2021 budget, Financial Derivatives Company Limited has said. “This suggests that the economic recovery path could be longer than anticipated. Massive investment in job-elastic sectors with minimal control on the pricing mechanism will serve as catalysts and would ensure a sustained ‘take-off’,” the FDC, led by foremost economist Bismarck Rewane, said in its latest economic bulletin. Last month, a large number of Nigerians, mostly youths, protested…