11 Apr Nigeria Macroeconomic & Markets Report, March 2020
• Oil prices declined significantly.
• Headline inflation inched higher driven by both food and core inflation.
• The foreign exchange reserves declined significantly as FPIs dried up.
• The PMIs touched multi-year lows.
The Financial Markets
• Fixed income markets ended its bullish run in March.
• The Naira lost value against the US Dollar.
• Equity markets participants were spooked by COVID-19 and pushed the ASI lower.
Our Expectation for the Coming Months
• Renewed drive to curb crude oil production globally may push oil prices higher.
• The exchange rate adjustment and the border closure are expected to add upward pressure to inflation.
• Foreign inflows are expected to remain subdued.
• PMI to continue its downward trend, especially in April.
• The Equities market is expected to remain bearish though there may be cherry-picking opportunities.