Friday, June 11, 2021/ 03:00PM / United Capital Research / Header Image Credit: iStock
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Anglophone West Africa Nigeria According to the Debt Management Office (DMO), Nigeria’s total public debt increased marginally by 0.6% from N32.9trn as of Dec-2020, to N33.0trn. Lagos State led other states with a total debt of N507.4bn, followed by Rivers, N266.9bn; Akwa Ibom, N232.0bn; and Delta, N214.0bn.
The Federal Government (FG), via the Federal Ministry of Information & Culture, announced the suspension of the operations of Twitter in Nigeria. This was a response to the social media platform’s decision to delete the President’s tweet regarding the ongoing crisis in the Southeast. Unpleasant reactions have trailed the decision as the country gradually approaches another pre-election year.
Relatedly, the FG has acknowledged that Twitter and its users in Nigeria face huge financial loss following the social media platform’s suspension in Nigeria. However, the FG has stated it needed to take the decision to protect national interest and integrity.
The National Bureau of Statistics (NBS) released the foreign trade statistics for Q1-2021. According to the report, total trade (export and import) rose 14.1% y/y to print at N9.8tn in Q1-2021, from N8.5tn in Q1-2020. The growth in total trade was driven by a surge in imports (+54.3% y/y to N6.9tn) as exports (-29.3% y/y to N2.9tn) plunged during the quarter.
Consequently, Nigeria’s trade deficit expanded 1095.3% y/y to N3.9tn in Q1-2021, from N329.9bn in Q1-2020. Notably, the trade deficit recorded in Q1-2021 represents the 6th consecutive quarter of trade deficits.
During the week, the Central Bank of Nigeria held a NTB primary market auction rolling over N93.1bn worth of maturing treasury bills. Investors’ appetite at the auction remained strong, as the 91-day, 182-day and 364-day bills were oversubscribed by 1.4x, 1.5x and 3.9x, respectively. Stop rates for the 91-day and 182-day bills remained unchanged at 2.5%, 3.5%, respectively. However, rates on the longer tenor paper dipped by a marginal 1bp to close at 9.64%
Ghana According to IHS Markit’s Purchasing Managers Index (PMI) data for Ghana, private sector activity expanded further in May, albeit at a slower pace than in April. Higher producer costs and supply shortages had a dampening effect on businesses. The expansion in May-2021 is the tenth consecutive month of expansion.
The Minister of Finance, Ken Ofori-Atta, at a two-day strategy retreat between the government and International Finance Corporation […]
