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UK Headline Inflation (YoY)

According to the latest release from the Office for National Statistics (ONS), UK inflation rose to 3.5% YoY in April 2025—the highest level since January 2024—driven by pronounced increases in household bills, food, vehicle duties, and airfares. The Consumer Prices Index (CPI) accelerated from 2.6% in March to 3.5%, while CPIH, which includes owner-occupiers’ housing costs, climbed to 4.1%.

UK Strikes Landmark EU Trade Deal to Boost Economy and Ease Food Inflation

The UK government has formalized a landmark trade agreement with the European Union, marking its third major trade pact this month, following recent deals with the United States and India. This latest agreement is expected to deliver meaningful benefits to the UK economy over the medium to long term. Key provisions of the deal include the easing of agricultural export barriers, which should improve trade flows and reduce supply-side pressures, potentially lowering food-related inflation.

PBoC Cuts Key Lending Rates to Revive Growth Amid Economic Slowdown

The People’s Bank of China (PBoC) reduced key lending rates during the week, marking the first policy easing since October 2024. The one-year Loan Prime Rate (LPR) was cut by 10 basis points to 3.00%, while the five-year LPR was lowered by 15 basis points to 3.50%. This move is part of China’s broader strategy to stimulate economic growth amid a slowdown and rising trade tensions with the United States. The easing aims to boost credit availability and support domestic demand, particularly in sectors facing headwinds such as real estate and manufacturing.

Global Equities Market

Weekly Performance of Major Global Indices

Domestic Events

Nigeria’s External Debt Servicing Soars, Draining FX Reserves and Heightening Liquidity Pressure

Nigeria’s external debt servicing rose sharply by 51.1% year-on-year to USD 2.0 billion between January and April 2025, up from USD 1.3 billion in the same period of 2024, according to data from the Central Bank of Nigeria (CBN). As a result, debt service payments now account for 77.1% of the country’s total foreign exchange outflows, up from 64.5% a year earlier. This surge was largely driven by substantial loan repayments of approximately USD 1.2 billion in March and April alone. The increased debt servicing contributed to a USD 3.0 billion decline in Nigeria’s foreign exchange reserves over the four-month period, intensifying pressure on external liquidity.

MPC Holds Rates Steady Amid Inflation Easing and Global Uncertainties

At its 300th meeting held on May 19-20, 2025, the Monetary Policy Committee (MPC) maintained key monetary parameters unchanged. The Monetary Policy Rate (MPR) was kept at 27.5%, while the Cash Reserve Ratio (CRR) remained at 50.0% for Deposit Money Banks and 16.0% for Merchant Banks. The Liquidity Ratio was also held steady at 30.0%.This decision came despite a moderation in headline inflation, which eased slightly to 23.7% year-on-year (YoY) in April 2025 from 24.2% in March. The MPC highlighted ongoing uncertainties in the global policy landscape and the recent decline in oil prices as key downside risks to Nigeria’s fiscal revenue and economic outlook.

Dangote Refinery Slashes Petrol Prices, Offering Relief Amid Falling Crude Costs

In May 2025, Dangote Petroleum Refinery announced a notable reduction in petrol pump prices, adjusting rates to between NGN875.0 and NGN905.0 per litre nationwide. This adjustment follows a decline in global crude oil prices, currently hovering around USD63–65 per barrel. Additionally, Dangote’s strategic Naira-for-Crude arrangement has mitigated foreign exchange exposure, providing the refinery with a competitive pricing edge. The resultant price cut is expected to offer immediate relief to Nigerian consumers and could contribute to easing inflationary pressures, particularly in fuel-sensitive sectors of the economy.

Wema Bank Targets Additional NGN50bn in Final Capital Raise to Meet CBN Requirements

Wema Bank (WEMABANK) has commenced the final phase of its capital raising exercise, targeting NGN50.0bn through a private placement. This follows the successful conclusion of a NGN150.0bn rights issue on May 21, 2025, bringing the bank’s total capital raise to NGN200.0bn. The capital injection aligns with the Central Bank of Nigeria’s minimum capital requirements for banks holding national licenses under the ongoing recapitalization directive, which spans from April 1, 2024, to March 31, 2026. This move positions Wema Bank to meet regulatory thresholds and strengthen its capital base for future growth.

Equities Market – Sectorial Performance

Weekly Performance of Sectorial Indices

Stock Picks for the Week

Fixed Income Opportunities for the week