Banking and Finance

‘Inflation is out of CBN’s Control’

The Head of Research, Nigerian Economic Summit Group (NESG), Olusegun Omisakin, says rising inflation rate in the country has gone beyond the control of Central Bank of Nigeria (CBN).

Omisakin made the observation in an interview with the News Agency of Nigeria on Monday in Lagos.

Data released by the National Bureau of Statistics (NBS) on Jan.13 showed that December 2016 inflation rate stood at 18.55 per cent from 18.48 per cent in November.

Sustained Rally in Banking Sector Buoys Market Performance

It was a positive trading day for Nigerian equities market as the All Share Index (ASI) added 18bps to close at 26,373.83 points. Consequently, market capitalization improved by N16.5bn to settle at N9.1tn. Today’s positive performance was driven by further gains in Tier-1 lenders – ZENITH (+2.1%), ETI (+4.3%) and ACCESS (+2.9%). Market activity however remained mixed as volume traded improved by 17.1% to settle at 174.0m units while value traded fell 68.7% to settle at N1.2bn.

Banking Sector Leads Gainers’ Chart

Naira falls to nearly 500 per dollar

The Nigerian naira fell close to 500 against the dollar on the unapproved open retail market due to dollar shortages on Friday as retail currency operators set their quotes for dollar purchases at 399 for next week, traders said.

Bureau de change operators said the central bank had approved 399 naira for retail trades next week, their association said in an internal memo seen by Reuters.

Nigeria to Sell Diaspora Bonds in March after Eurobond Issue

Nigeria will look to issue a debut diaspora bond by March to raise funds from Nigerians abroad, after completing a $1 billion eurobond sale this month, a finance ministry source told Reuters on Wednesday.

Nigeria is in its first recession in 25 years and needs to find money to make up for shortfalls in its budget. Low prices for crude and militant attacks in its crude-producing heartland, the Niger Delta, have slashed its oil revenues.

CBN to Sell ₦195.96b in Treasury Bills

Nigeria plans to sell 195.96 billion naira ($644.08 million) in short-dated treasury bills at an auction on Jan. 19, the central bank said on Tuesday.

The bank said it would sell 36.78 billion naira in three-month debt, 39.17 billion naira in six-month bills and 120 billion naira in one-year notes, using a Dutch auction system. Payment will be due the day after the auction.

Nigeria issues treasury bills to fund its budget deficit, manage banking system liquidity and curb rising inflation.

CBN to Meet Retail Traders on Naira Rates

Nigeria's central bank officials will meet bureau de change operators on Tuesday to try to find ways to eliminate the gap between the official and black market dollar rates, the association president told Reuters.

The naira lost a third of its official value against the dollar in 2016 after the bank scrapped a peg in a bid to alleviate dollar shortages. On the black market, the naira is worth about 40 percent less than the official rate.

Buhari Fires Financial Reporting Council Boss

President Muhammadu Buhari has sacked Mr. Jim Obazee, the executive secretary of the Financial Reporting Council of Nigeria and also ordered the reconstitution of the council’s board.

Obazee’s sack was announced today in a statement by Garba Shehu, the senior special assistant to the president.

The statement announced Obazee’s replacement. He is Mr. Daniel Asapokhai, a partner and a Financial Reporting Specialist at the PricewaterHouseCoopers (PWC), Nigeria.

He is a product of the University of Lagos and the University of Pretoria.

Debt Office to Sell up to ₦430b of Bonds in Q1

Nigeria plans to issue 340 billion to 430 billion naira ($1.12 billion to $1.41 billion) of local-currency bonds during the first quarter, the Debt Management Office said on Friday.

The debt office said on its website it would auction 110 billion to 140 billion naira worth of bonds maturing in 2021 and 85 billion to 105 billion naira in debt maturing in 2026. It will also sell 45 billion to 55 billion naira in bonds maturing in 2027 and 100 billion to 130 billion naira of the 2036 debt.

PoS Payments Hit ₦651b

Despite the economic recession in Nigeria, the value of transactions through point of sales, PoS payments increased significantly by 65 per cent to N651.37 billion in 11 months.

The figure which represents transactions from January to November 2016, almost doubles the N395.05 billion recorded in the corresponding period of 2015, data gathered from the Nigeria Interbank Settlement System Plc (NIBSS) revealed, according to Thisday report.