REPORT SUMMARY
The Macroeconomy
• Nigeria’s crude oil output declined for the second month in a row
• Headline inflation ticked higher although core inflation overtook food inflation
• Capital importation was more modest in January
• Growth rate in the PMI index declines

The Financial Markets
• Fixed income markets maintain their bullish momentum
• The Naira gains marginally for the second consecutive month
• Equities market began to lose steam by month end

Our Expectation for the Coming Months
• Oil prices to struggle to remain buoyant in the face of the Coronavirus threat and weakening demand
• Headline inflation is expected to increase further as the underlying of core and food inflation face significant upward
pressure
• Foreign flows will remain positive due to attractive OMO yields
• PMI could trend marginally lower as economic activity remains weak
• The Naira is expected to remain stable, albeit with continued pressure.