March 9, 2022/InvestmentOne Update
Please click to view the February 2022 Macro & Markets Update
- Recently released report by the National Bureau of Statistics on Gross Domestic Product (GDP) data for Q4 2021 revealed that the economy sustained the positive recovery we have seen in previous quarters albeit at a slower pace.
- Inflation resumed its downward trajectory after halting an eight-month consecutive decline in the month of December 2021. This was revealed in the recently released report by the National Bureau of Statistics that headline inflation for the month of January 2022 increased by 15.60% (y/y).
- Elsewhere, Federal Accounts Allocation Committee disbursements amongst the three tiers of government for the month of December 2021 were up by 3.54% month-on-month from N675.90billion in November 2021 to N699.82billion.
- In the month of February, the subject of petrol subsidy remained in the talks as the financial burden on the fiscal authorities grew worse.
- During the previous month, liquidity in the money market was buoyant majorly from spill over of the FGN bond maturity at the tail end of January 2022. Furthermore, OMO maturities of about c.N674.46 billion (N367.67 billion in January) elevated liquidity.
- In the previous month, the CBN introduced RT200 non-Oil export proceed repatriation rebate Scheme which aims to raise $200 billion in Foreign Exchange earnings from non-Oil proceeds over the next 3-5years.
- In the past month, positive performance continued to hold sway in the local bourse albeit not to the magnitude of the previous month’s gain of 9.15%. The NGX All-Share Index appreciated by 2.57% month-on-month to settle at 47,394.53pts as at end of February 2022.
