OPEC+ to Raise Output by 411,000 bpd by June 2025 Amid Price Pressures
Global Macro Highlights
US Fed Fund Interest Rate Movement
The U.S. Federal Reserve kept its benchmark interest rate unchanged at 4.3% – 4.5% for the third consecutive time, citing continued uncertainty around inflation and the broader economic outlook. The decision was influenced by escalating trade tensions and the potential economic impact of the announced tariffs and follows a 0.3% YoY contraction in the U.S. economy in Q1:2025, driven largely by a surge in imports as businesses and consumers front-loaded purchases ahead of anticipated cost increases.
UK Benchmark Interest Rate Movement
The Bank of England (BOE) lowered its benchmark interest rate from 4.5% to 4.3%, marking the fourth consecutive rate cut since August 2024. The move comes on the heels of the UK’s annual inflation rate easing to 2.6% in March 2025, down from 2.8% in February, amid ongoing trade tensions and concerns over slowing economic growth.
OPEC+ to Raise Output by 411,000 bpd by June 2025 Amid Price Pressures
The Organization of the Petroleum Exporting Countries Plus (OPEC+) announced plans to boost output by 411,000 barrels per day (bpd) by June 2025, despite declining oil prices and weakening demand forecasts. This decision was driven by the non-compliance of member states like Iraq and Kazakhstan, and the group’s effort to stabilize oil prices.
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Domestic Events
Nigeria Clears $3.4bn IMF COVID-19 Loan, Exits Debtor List
Nigeria fully repaid the USD3.4bn loan it secured from the International Monetary Fund (IMF) during the COVID-19 crisis, officially removing the country from the Fund’s debtor list. The loan was obtained in April 2020 as part of emergency support to cushion the economic shock of the pandemic, help stabilize the economy and support businesses during the period. Although some interest obligations on the facility remain, the repayment signals Nigeria’s commitment to managing its external liabilities and reduce debt servicing cost on foreign borrowing.
Afreximbank Commits $19bn to Power African Energy Bank Initiative
The African Export-Import Bank (Afreximbank) has committed USD19.0bn to the African Energy Bank (AEB) to boost funding for oil and gas projects across the continent, in response to the pressing need for diversified financing in Africa’s energy landscape. AEB, a flagship institution established through a strategic collaboration between the African Petroleum Producers’ Organization (APPO) and Afreximbank, is designed to bridge the financing gap in Africa’s oil, gas, and broader energy sectors.
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