January 18, 2024/InvestmentOne Report

Excerpt from the Executive Summary:
“The Nigerian foreign exchange market faced significant pressure in 2023 due to liquidity constraints. The Naira is expected to remain volatile in the official window, while relative stability is anticipated in the parallel market as the CBN addresses outstanding FX backlogs.

The domestic fixed income market experienced volatility in 2023, influenced by liquidity conditions, borrowing costs, and government deficit financing. In H1 2024, interest rates are expected to remain elevated due to further CBN tightening, but liquidity conditions may influence downward movements.

The Nigerian Equities Market exhibited optimism in 2023, driven by policy reforms and corporate actions. Positive sentiment is projected to continue in 2024, albeit not as strong as in 2023, with investors positioning for dividends and corporate actions. FPI participation challenges is expected to however persist”.

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