Nigeria Market Analysis :: Fitch Solutions (2024)

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SSA Electricity Prices: In Response To Growing Infrastructure Needs, Power Regulators Will Continue To Permit Price Increases

Power / Nigeria / Thu 13 Jun, 2024

Key View

  • We anticipate a continued rise in electricity prices in Sub-Saharan Africa, in 2024. However, we believe this will be driven by power utilities' needs to recover costs through revenues, rather than direct fluctuations in fuel prices.
  • Regulatory bodies and utilities in the region are pushing for tariffs that reflect the costs of improving
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Quick View: Naira Devaluation Weighing On Microsoft Developments, Airtel Africa’s Bottom-Line Also Suffers

Telecommunications / Nigeria / Fri 10 May, 2024

Latest Development:The Naira's volatility has caused Airtel Africa to report a loss (after tax) of USD89mn y-o-y at the end of Q124, thereby diminishing investor confidence in Nigerian financial inflows. Additionally, Microsoft's decision to either terminate or downsize its African Development Centre (ADC) in Lagos serves to underscore our bearish

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Rising Political Risk Will Slow Reform Momentum In Nigeria

Political Risk / Nigeria / Fri 26 Apr, 2024

Please Note: BMI is enhancing its risk analysis with a new scoring system following its acquisition of GeoQuant, a market-leading provider of political risk data. From March 27 2024, risk scores are inverted: zero now represents the lowest risk and 100 represents the highest risk. This allows for clearer, industry-standard assessments. For further

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Banking Weekly Round-Up: Challenges Facing SSA Banking Sectors In 2024

/ Nigeria / Mon 08 Apr, 2024

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A number of Sub-Saharan African (SSA) banking sectors are bracing for significant changes and challenges that will confront them in 2024. In Nigeria, the central bank has increased the minimum capital requirements, which will trigger sectoral consolidation similar to what was seen after the last increase in 2005. Meanwhile, Tanzania

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Nigeria's Loan Growth To Slow In H224 But Remain Considerably Above Trend

/ Nigeria / Mon 04 Mar, 2024

Key View

  • We anticipate that Nigeria’s client loan growth will slow from an estimated 55.0% y-o-y at end-2023 to 45.0% at end-2024, although still boosted by inflation and currency depreciation. This trend will be observed in asset and deposit growth too.
  • The central bank has been actively working to mitigate currency depreciation with
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Central Bank Of Nigeria To Raise Interest Rates Further, Following Large Hike In February

Country Risk / Nigeria / Wed 28 Feb, 2024

Key View

  • We believe that the Central Bank of Nigeria (CBN) will raise the policy rate to 28.00% by end-2024, following a 400 basis-point hike to 22.75% in February, in a bid to address high inflation and weakness in the foreign exchange market.
  • While we do not think that higher interest rates will lead directly to an increase in capital
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Multi Decade-High Inflation Clouds Nigeria’s 2024 Growth Prospects

Country Risk / Nigeria / Mon 26 Feb, 2024

Key View

  • We forecast that the Nigerian economy will expand by 2.9% in 2024, following a higher-than-expected real GDP outturn of 3.5% y-o-y in Q423.
  • Multi decade-high inflation as a result of the partial removal of the fuel subsidy and exchange rate weakness will keep private consumption and fixed investment weak in 2024.
  • That said, the
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Telesonic Announcement A Boon For African Fibre, But Mixed Risks Outlook May Curb Ambitions

Telecommunications / Nigeria / Fri 16 Feb, 2024

Key View

  • Airtel Africa (Airtel) has launched Telesonic, a subsidiary focused on wholesale data provision in Africa, leveraging its extensive 75,000km terrestrial fibre network to enhance connectivity and continent-wide digital transformation ambitions.
  • The demand for higher-speed forms of internet access may be evident in Africa, with Airtel
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Sub-Saharan Africa Monthly Outlook: Impact Of Global Shipping Disruptions On SSA

Long Reads / Macroeconomic Insight / Country Risk / Africa / Thu 01 Feb, 2024

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