Banking and Finance

Eurobonds Account for a Fifth of Nigeria’s $15.35b Foreign Debt

Eurobonds made up more than a fifth of Nigeria’s $15.35 billion foreign debt portfolio as of September and more than half of interest paid in the third quarter, the Debt Management Office (DMO) said on Wednesday.

Foreign debt stood at $11.58 billion a year earlier.

Africa’s biggest economy is planning a roadshow to London and United States from Thursday to market up to $2.5 billion of Eurobonds to investors after parliament approved the issue on Tuesday, Reuters reports.

Annual Inflation Slows for Ninth Month

Nigeria has recorded its ninth consecutive disinflation (slowdown in the inflation rate), the National Bureau of Statistics (NBS) said on Wednesday in Abuja.

The Bureau’s observation is contained in the breakdown of inflation analysis through it Consumer Price Index (CPI).

The CPI measured that inflation increased by 15.91 per cent (year-on-year) in October 2017, lower than the rate recorded in September (15.98) per cent making it the ninth consecutive disinflation since January 2017.

CBN Weakens Naira Marginally on Spot Market

Nigeria’s central bank sold dollars at 306 naira for the second time on Tuesday after maintaining a level around 305 naira on the official spot market for two months, traders said.

The move was minor, to signal a change in foreign exchange policy, traders said. The bank last sold dollars at 306 naira on the spot market in September and had sold the currency as low as 306.65 in July.

Overnight Rate falls on Liquidity Injection

Nigeria’s overnight lending rate fell to 9 percent in late trades on Friday from around 21 percent in the previous session after the central bank repaid maturing treasury bills to boost liquidity on the money market, traders told Reuters.

The central bank has kept rates high in Africa’s biggest economy to fight inflation and currency weakness and to attract foreign investors. It has been selling treasury securities almost four times a week to soak up naira liquidity.

CBN Injects $195m into Currency Market

Nigeria’s central bank said on Tuesday it had injected $195 million into the interbank foreign exchange market, extending efforts to boost liquidity and alleviate dollar shortages.

The bank said in a statement it had released $100 million earmarked for the wholesale market, $50 million for small businesses and individuals, and $45 million for certain dollar expenses such as school fees and medical bills, Reuters reports.

The bank will continue to intervene in the foreign exchange market to sustain liquidity, the statement said.

Buhari Presents ₦8.612tr 2018 Budget

President Muhammadu Buhari on Tuesday presented a budget of N8.612 trillion for the 2018 fiscal year. The budget is 16 per cent higher than that of 2017.

Buhari presented the budget before the joint session of the Senate and House of Representatives.

The 2018 budget is based on crude oil benchmark of US$45 per barrel with estimated daily production of 2.3 million barrels.

The President also said that the budget was based on exchange rate of N305 to one dollar.

Nigeria’s Economic Strategy will Mitigate Debt Service Risk –Adeosun

The Minister of Finance, Mrs Kemi Adeosun, has expressed confidence that the Federal Government’s revenue and debt management strategy would mitigate the country’s debt service risk and fast-track development.

Adeosun, in a statement by her Special Adviser on Media, Mr Oluyinka Akintunde, on Thursday welcomed the advice of the International Monetary Fund in regards to the country’s decision to take more foreign loans.

CBN Raises ₦100b in Treasury Bills

Nigeria raised 100.84 billion naira ($320.64 million) at a treasury bill auction on Wednesday as traders locked in yields in anticipation of higher liquidity from repayments.

The central bank sold 74.76 billion naira of one-year debt at a rate of 15.53 percent, slightly lower than the previous auction, traders said. It had initially offered to sell 54.35 billion naira in that maturity.

Traders said the bank also sold 12.98 billion naira of six month bills and 13.09 billion naira of 91-day paper at 13.1 percent, unchanged from the last auction.

Nigeria’s Foreign Exchange Reserves hit $33.69b

Nigeria’s foreign exchange reserves stood at $33.69 billion as of Oct. 27, up 4.1 percent from a month earlier, central bank data showed on Tuesday.

The bank did not provide a reason for the increase in reserves, which stood at $32.37 billion last month, Reuters reports.

Nigeria’s forex buffer has climbed 40.68 percent this year from a year ago, but is still far off a peak of $64 billion hit in August 2008.

African Development Bank Calls Off Proposed Loans to Nigeria

The African Development Bank has called off a loan to Nigeria that would have helped fund the country’s budget, instead redirecting the money to specific projects, a vice president at the lender said on Monday.

The African Development Bank had been in talks with Nigeria for around a year to release the second, $400 million tranche of a $1 billion loan to shore up its budget for 2017, as the government tried to reinvigorate its stagnant economy with heavy spending.

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