June 7, 2022/InvestmentOne Report

Please click to view the May 2022 Macro & Markets Update

• Recently released report by the National Bureau of Statistics on Gross Domestic Product (GDP) report revealed that the economy sustained the growth recorded in previous quarters albeit at a slower pace.  
  

• According to the National Bureau of Statistics (NBS) the April 2022 inflation report revealed that inflation sustained the upward trajectory witnessed in previous months.
  

• The increasing financial burden of petrol subsidy on the government has continued to remain the overarching theme in Nigeria’s fiscal space. In the past month, the Nigerian National Petroleum Corporation (NNPC) Limited reported that so far this year it has remitted no proceeds from crude oil exports to the Federal Government’s coffers due to high subsidy payments caused by the surge in oil prices.
  

• At the 3rd MPC meeting of the year, the committee voted to increase policy rate by 150bps to 13.00% while other parameters remained unchanged. In the fixed income space, we saw a sharp upward movement at the last NTB primary market auction as investors reacted to the surprise hike in policy rate. However, at the DMO’s bond auction held in May (which occurred before the MPC meeting), stop rates moved in mixed directions.
  

• In the previous month, sentiment was mixed in the energy space albeit with a bullish tilt as Brent price moved in different directions during the review month.
  

• May was a pretty good month in the local bourse as the bulls dictated proceedings, thereby sustaining the positive trend which resurfaced in the prior month.