Banking and Finance

Excess Crude Account Balance of $2.3b Intact –Fin. Minister

Minister of Finance, Mrs Kemi Adeosun said that the balance in the Excess Crude Account (ECA) still remains  $2.31 billion.

She gave the figure against the backdrop of some legal challenges by some states to the plan by the Federal Government to spend $1billion out of the money to battle security challenges.

Adeosun spoke today after the Federation Account Allocation Committee (FAAC) shared N655.17 billion to the three tiers of government as revenue for January.

The money was distributed under four sub-heads.

CBN says won't hold Interest Rate meeting, Rate to be held at 14%

Nigeria’s central bank said on Monday a key interest rate setting meeting intended for January 22-23 will not be held due to an inability to form a quorum, adding that the benchmark rate will be maintained at 14 percent.

The decision comes because there are not enough members of the Central Bank of Nigeria’s (CBN‘s) Monetary Policy Committee (MPC) to form a quorum, the lender said in a statement.

Local Bonds: DMO Targets Up to ₦385b in First Quarter

Nigeria plans to raise 315 billion to 385 billion naira ($1 billion to $1.26 billion) in the first quarter of the year through sales of naira-denominated bonds, the Debt Management Office said on Friday.

The DMO said it would auction bonds maturing in 2021 and 2027 and introduce a new seven-year bond, Reuters reports. The 2021 and the 2027 are benchmark bonds that are currently traded, it said.

The debt office said its issuance program has been structured to ensure that funds required by government to finance its budget deficit are provided during the year.

FG to Raise ₦110b at Bond Auction

Nigeria plans to raise 110 billion naira by selling sovereign bonds with maturities of five and 10 years on Jan. 24, the Debt Management Office (DMO) said yesterday, Reuters reports.

The debt office said it will raise 50 billion naira with the five-year bond and 60 billion naira with the 10-year paper, using the Dutch auction system.

The bonds are reopenings of previous issues and the result of the auction is expected to be published on Jan. 26, the DMO said.

Central Bank Injects $262.5m into Currency Market

Nigeria’s central bank said on Friday it had injected $262.5 million into the interbank foreign exchange market, extending efforts to improve liquidity and alleviate dollar shortages.

The bank said in a statement it had released the funds for use by businesses in the agricultural and petroleum sectors as well as airlines.

The bank said it would continue to intervene in the foreign exchange market to sustain liquidity.

FX Operators Advise CBN on Stronger Naira

The Association of Bureaux De Change Operators of Nigeria (ABCON) on Wednesday listed recipes for a stronger naira and a more stable exchange rate in 2018.

Aminu Gwadabe, President of ABCON, said the recipes were agreed at a meeting of the operators in Lagos.

Gwadabe urged the CBN to ensure the convergence of deposit money banks rate and that of the BDCs, for a healthy competition that would achieve a stronger naira.

He also called for the deepening of the BDC’s scope of operations by allowing them to transact on SME remittances.

Nigeria’s Economy to Grow by 2.5% –World Bank

The World Bank forecasts that economic growth in Nigeria would edge up to at least 2.5 per cent in 2018, as the country benefits from improved commodity prices, investments and trade.

The Bank in its January 2018 Global Economic Prospect report launched on Tuesday in Washington DC noted that Nigeria’s Gross Domestic Product (GDP) is expected to grow by 2.8 per cent in 2019 and 2020.

The World Bank forecast that global economic growth will go up to 3.1 per cent in the year 2018.

Purchasing Managers Index Readings at All Time High

The CBN’s Purchasing Managers’ Index (PMI) report for December, which was released last week, indicated an expansion in both Manufacturing and Non-Manufacturing sectors. The sustained improvement in PMI readings cannot be dissociated from the launch of the Investors’ & Exporters’ (I&E) FX window in April 2017, as this spurred improved liquidity and stability in the FX market against the backdrop of increased oil prices and higher external reserves.

Nigeria Raises ₦162b at Treasury Bill Auction

Nigeria raised 161.54 billion naira ($513.64 mln) at a treasury bill auction on Wednesday after it received subscriptions for more than twice the amount on offer, traders said on Thursday.

The central bank sold 115.85 billion naira of one-year debt at a rate of 14.30 percent. It auctioned 11.77 billion naira and 33.93 billion naira respectively in three- and six- months maturities at 12.54 percent and 13.92 percent. Total subscription stood at 388.50 billion naira.

Foreign Exchange Reserves up 10% –CBN

Nigeria’s foreign exchange reserves stood at $37.92 billion as of Dec. 22, up 10.1 percent from a month earlier, central bank data showed on Friday, according to Reuters report.

The government raised $3 billion in Eurobonds in November.

Nigeria’s forex buffer has climbed nearly 50 percent since last December but is still far off a peak of $64 billion hit in August 2008.

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