Money Monday- Nigeria’s Market Momentum Amid Global Shocks: FX Gains, Gas Deals & Energy Disruptions
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Market Overview
Good evening and welcome to today’s market kickoff. Nigeria’s markets started the week strong, supported by rising foreign reserves, a firmer naira, and easing inflation, while the CBN works to attract inflows and cut borrowing costs. Key corporate moves include FCMB’s capital raise and NNPC-NLNG’s gas deal, signaling growth in energy and infrastructure. Globally, markets face pressure from higher U.S. Treasury yields, U.S. tariffs, Ukraine-Russia tensions, and China’s aggressive resource acquisitions.
Nigerian News & Market Update
CBN Raises ₦8.99trillion via T-Bills as 91-Day Rate Closes at 15%:
The Central Bank of Nigeria (CBN) raised ₦8.99trillion in Treasury bills in Jan–Jul 2025, slightly down from 2024, amid strong investor demand. It cut T-Bill rates sharply (364-day from 22.62% to 15.88%) to ease debt costs and attract foreign inflows. Inflation has fallen for four months to 21.88% in July, while the Monetary Policy Rate (MPR) is at 27.50% to stabilize FX and curb prices. Analysts expect yields to decline further as borrowing slows and inflation eases. - Thisday
FCMB Group proposes equity capital raise to buoy expansion:
FCMB Group Plc will raise new equity to boost its capital base and fund regional and international expansion, with proceeds going to First City Monument Bank Ltd. In H1 2025, FCMB posted a 23% profit growth (₦73.42Billion), 41% rise in gross earnings (₦529.2Billion), and 5% asset growth (₦7.40Trillion). Despite higher costs and impairment charges, the bank showed strong performance, supported by higher interest income, digital growth, and increased lending. - TheSun
NNPCL, Gas Suppliers Sign 1.29bscf/d Feedgas Deal With NLNG:
Nigerian National Petroleum Company Limited (NNPC Ltd.) and partners signed 20-year gas supply deals with Nigeria Liquefied Natural Gas Limited (NLNG) to deliver 1.29 bscf/d of feedgas, boosting Nigeria’s gas production, supply reliability, and energy security. The agreements support the Bonny Island LNG plant expansion, align with government gas reforms, and strengthen Nigeria’s position in the global energy market. - Channels
Coronation Infrastructure Fund Debuts on NGX:
Coronation Infrastructure Fund (CIF) has debuted on the Nigerian Exchange (NGX) with an ₦8.79Billion listing (87.9Million units at ₦100 each). Managed by Coronation Asset Management, the fund channels long-term capital into key infrastructure sectors, already distributing ₦1.7Billion in dividends, and aims to expand investor access to Nigeria’s infrastructure growth. - Dmarketforces
Rising foreign reserves spur naira rally across markets:
Nigeria’s foreign reserves hit $41.07Billion, the highest in four years, strengthening the naira and supporting lower inflation at 21.88%. Backed by CBN forex reforms, rising oil inflows, and $23Billion diaspora remittances, the stronger currency is expected to reduce import costs and boost economic stability. - TheNation
Nigeria Sectoral Indices Performance
The table below depicts that NGX sector indices show mostly strong year-to-date (YTD) growth, led by Insurance (+87.50%), Lotus (+66.00%), and Consumer Goods (+46.82%). Oil/Gas is the only major sector down YTD (-12.31%). The Industrial Goods index had the steepest weekly drop (-8.29%). Daily performance was mostly positive, with Insurance (+3.81%) leading gains. Overall, markets are strong YTD despite short-term volatility.
Fixed Income (FGN Bonds)
Global News & Market Update
Russian oil refineries, terminals burn as Ukraine hits Putin's war economy:
Ukraine’s drone strikes have disrupted 17% of Russia’s oil refining capacity, causing fuel shortages and halting some exports, including to Hungary and Slovakia. The attacks aim to pressure Moscow during peace talks and counter Russian advances, while Russia faces rising economic strain despite heavy defense spending and sanctions. - Reuters
China's CMOC eyes more M&A opportunities in Africa, South America:
China’s (China Molybdenum Co., Ltd) CMOC Group is actively seeking merger and acquisition opportunities in resource-rich regions like Africa and South America, after acquiring Lumina Gold earlier this year. The company is also considering expanding its molybdenum and tungsten assets. CMOC reported a 60.1% rise in first-half net profit, boosting its shares 8.7% to 12.08 yuan. - Reuters
U.S. Treasury yields tick higher as investors look toward key inflation data later in the week:
U.S. Treasury yields rose slightly as investors digested Fed Chair Jerome Powell’s Jackson Hole speech and awaited key inflation data. The 10-year yield hit 4.285% and the 2-year rose to 3.736%. Powell signaled caution on rate cuts, citing policy uncertainty, but markets see higher odds of a 25-bps cut in September. Investors now await July’s core PCE index, expected to rise 2.9% YoY from 2.8%. - CNBC
Currency spikes and Trump tariffs take bite out of European results:
U.S. tariffs and a stronger euro and Swiss franc are squeezing European companies’ revenues, prompting many to consider moving production to the U.S.. Swiss firms face a 39% tariff, and EU/UK goods face 10–15% tariffs, while currency swings have cut profits for major firms. Swiss banks are relocating jobs to manage costs, and some companies have halted U.S. exports as Switzerland negotiates tariff relief. - Reuters
Indices, Commodities & Currencies
The table below shows that the global markets were mixed. U.S. and Asian equity indices mostly declined, while European stocks saw gains. Oil prices rose sharply, with WTI and Brent up over 2% and 1.8%, respectively. Soft commodities like cocoa and orange juice surged, while metals broadly fell, led by platinum and silver. Grain prices were mixed, with oats and wheat higher but soybeans weaker. In currencies, the U.S. dollar strengthened as the euro and pound slipped slightly.
Fixed Income (USA Bonds)
Events
Conclusion
Nigeria’s markets are supported by stronger reserves, a firmer naira, and easing inflation, with the CBN likely to continue lowering borrowing costs to attract foreign inflows. Corporate moves, such as FCMB’s capital raise and NNPC–NLNG’s gas deal, signal growth in banking and energy infrastructure. Globally, markets remain cautious as rising U.S. yields, trade tariffs, and geopolitical tensions weigh on sentiment, while China’s resource acquisitions point to continued competition for commodities. Near term, Nigerian markets may see improved investor confidence, while global volatility could persist.
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