2024 Economic Overview
Despite a challenging macroeconomic environment, the Nigerian economy showed surprising strength, achieving three (3) consecutive quarters of positive growth (Q1 2024: +2.98% YoY; Q2 2024: +3.19% YoY; Q3 2024: +3.46% YoY).
The high inflation recorded in the year was driven by high transportation and energy costs, Naira depreciation, and food insecurity. The Central Bank of Nigeria (CBN) in a bid to curtail inflation, raised interest rates by 8.75% to 27.50% in 2024.
Despite this, the economy displayed resilience, buoyed by sectors such as technology, services, and manufacturing.
Equities Market Performance
The Nigerian equities market achieved its fifth consecutive year of positive performance, navigating volatility and policy shifts, and surpassing the 100,000-index level in the first half of the year.
The index closed at 102,926.40 points, achieving a 37.65% return in 2024. All sectors delivered positive returns, underscoring the market’s adaptability and the growing confidence of domestic and foreign investors.
Notable trends included:
- Bank Recapitalization: CBN required the banks to raise more capital between 2024 and 2026 to strengthen the financial sector’s performance. So far, Access Holdings, FCMB, UBA, Zenith, and Fidelity have raised capital from the financial market.
- FX Volatility: Created challenges for players in the industrial, consumer goods sector, and telecommunication sector while it provided opportunities for players in the financial sector.
- Sector Resilience: Oil and Gas on the back of the deregulation of the downstream sector, and Banking sectors recorded significant gains from higher interest environment.
While foreign outflows exceeded inflows, it’s important to note that overall foreign participation in the Nigerian equities market increased compared to 2023 . This, along with continued dominance by domestic investors, reflects growing confidence in the Nigerian equities market and underscores the market’s resilience and adaptability.
ARM Highlights in 2024
2024 marked a monumental year for ARM as we celebrated our 30th Anniversary, a testament to three decades of unwavering dedication to serving our clients and empowering their financial ambitions.
Over the years, we have worked tirelessly to understand and adapt to your evolving needs, offering innovative solutions to help you achieve your goals. We thank you for trusting us for 30 years, and we remain committed to delivering value and excellence in the years to come.
To further enhance our ability to meet your investment objectives, we introduced three new funds in 2024, expanding the range of opportunities tailored to your unique requirements:
ARM Sharia Compliant
Fixed Income Fund (ARMFIF)
Designed for ethically inclined clients, this fund offers low entry requirements, competitive returns, and strict adherence to Sharia principles and ethical standards.
NGN 1 Trillion Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF)
ARM was appointed as the fund manager for this transformative initiative, which seeks to address Nigeria’s housing deficit while driving growth in the real estate and construction sectors. The fund focuses on providing affordable long-term mortgages to accelerate the delivery of affordable housing to Nigerians.
ARM Short-Term Eurobond Fund
(ARM STEF)
This US Dollar-denominated fund primarily invests in short-term Eurobonds with a maximum duration of three years. With an entry point as low as $100, retail clients can gain access to Eurobonds and short-term US Dollar investments, benefiting from minimized interest rate risk and semi-annual dividend payouts.
In recognition of our commitment to excellence and prudent financial management,
ARM Investment Managers received a “AA” rating from both the Global Credit Rating Company and Agusto & Co.
Looking Ahead to 2025:
Opportunities on the Horizon
As we begin the year 2025, we remain optimistic about the opportunities that lie ahead. The Nigerian economy is poised for growth, supported by key developments:
Economic Forecast
- Oil Sector Rebound: Recent investments and the operationality of the Dangote and Port Harcourt refineries are expected to bolster oil production and refining capacity.
- Agricultural Revival: Anticipated improvements in security and climate conditions could revitalize the agriculture sector.
- Service Sector Expansion: Continued growth in technology, finance, and telecommunications is expected to drive economic activity.
Global Investment Trends
In the global space, we observed that the global economy showed remarkable resilience. Major central banks began to cut interest rates, contributing to a more stable economic environment.
We recommend investors focus on locking in current bond market yields. With modest growth and lower inflation expected in H1 2025 globally, additional rate cuts could benefit fixed-income markets.
For the equities, we recommend combining high-growth tech stocks with stable, dividend-paying equities, while including treasury assets for added diversification
Our commitment to your financial well-being remains our top priority. In 2025, we are introducing new initiatives and enhancing existing services to ensure your investment goals are met:
- Innovative Products: Our commitment is to continue to innovate financial planning solutions that meet the evolving needs of our esteemed clients by adopting new approaches, leveraging technology, and offering personalized solutions
- Enhanced Client Engagement: Join us for exclusive webinars, events, and workshops designed to provide actionable insights and empower informed decision-making.
- Sustainability and Impact: Our focus on ESG principles ensures that your investments contribute to long-term socio-economic development.
To help you navigate the opportunities of 2025, we invite you to:
- Schedule a personalized portfolio review with your relationship manager.
- Subscribe to our monthly newsletter for expert insights and market updates.
- Explore our new tools and resources available on the ARM One platform.
As we embark on this new chapter, our commitment to providing you with unparalleled financial services and guidance remains unwavering.
Together, let’s make 2025 a year of shared success and growth.
We wish you and your loved ones a year filled with joy, prosperity, and accomplishment.
Thank you for choosing ARM Investment Managers as your trusted partner in wealth creation. We look forward to continuing this journey with you.