Banking and Finance

‘We plan to borrow $2.3b from World Bank and China’

Nigeria wants to borrow at least $1 billion from the World Bank and to sign within months for a $1.3 billion loan from China to fund railway projects, Finance Minister Kemi Adeosun said on Tuesday, according to Reuters report.

Africa's biggest economy needs to plug a gap in its record 7.3 trillion naira ($23.17 billion) 2017 budget, which boosts capital expenditures by a quarter to end its first recession in 25 years due to low oil prices.

Distributable Revenues for State and Local Govts up 16% in January

Nigeria's distributable government revenues rose in January by 16 percent to 465.19 billion naira ($1.5 billion) as it brought in more oil royalties, the accountant general's office said in a statement on Tuesday.

Distributable revenue is government income that is shared at various levels of state including the federal government, state governments and local government councils.

Average oil prices rose from $47.30 to $49.57 per barrel during January, while the total crude export volume rose 1.49 million barrels, the statement said.

Nigeria will not seek IMF Loan –Adeosun

Nigeria’s finance minister, Kemi  Adeosun  says the country will not apply for an IMF, International Monetary Fund loan as it is pursuing its own economic reform plan.

“For us the IMF is really a lender of last resort when you have balance of payments problem. Nigeria doesn’t have balance of payments problems per se, it has a fiscal problem,” Adeosun told CNBC in an interview aired today.

“We are already doing as much reform as any IMF programme would impose on Nigeria,” she said.

Forex Crisis: CBN Introduces New Policy

Nigeria’s Central Bank on Monday rolled out new forex measures to curb the galloping exchange rate of the naira as it vowed to fund the items causing demand pressure at the parallel market.

According to the apex bank’s acting Director of Communications, Isaac Okoroafor, “the CBN is providing direct additional funding to banks to meet the needs of Nigerians for Personal and Business Travel, Medical needs, and School fees, effective immediately.

Aid Agency Cautions on Nigeria’s Tax Treaties

The Country-Director, ActionAid Nigeria, an international organization that work against poverty and injustice, Mrs Ojobo Atuluku has called on the Nigerian Government to reconsider its position in signing tax treaties, especially those that cannot improve trade and investment in Nigeria.

Atuluku said on Monday in Abuja at a two-day workshop on Tax Treaties and Implication for Nigeria.

She said that the treaties may look good in theory, but could rarely favour the country in practice.

CBN to Boost FX Sales to Retail Users to help Narrow Black Market Rates

Nigeria's central bank plans to boost dollar sales for school fee payment and travel abroad so as to reduce the premium paid on the black market and support the naira, a senior banker said on Saturday.

The naira is quoted on the black market at a discount of around 40 percent to the official interbank market, where it has closed at 305 to the dollar since last August.

Overnight Lending Rate more than doubles on Cash Withdrawal

Nigeria's overnight lending rate more than doubled to 25 percent on Friday from 10.17 percent on Thursday after the central bank sold open market bills and debited commercial lenders for bond purchases.

The central bank sold 178.44 billion naira ($586.01 million) in 321-day treasury bills at 18.6 percent and 19.14 billion naira of 174-day paper at 18 percent, draining cash from the money market and pushed up cost of borrowing among commercial lenders, traders told Reuters.

Foreign Exchange Reserves rise to 19 month high

Nigeria's foreign exchange reserves climbed to $29 billion as of Feb. 15, their highest level in 19 months, data showed on Friday as the central bank tries to rebuild currency buffers hammered by low oil prices.

The rise coincides with a recent rise in the price of crude, which account for the bulk of Nigeria's foreign currency earnings.

Nigeria's reserves are up 11.2 percent from this year but are still far off their peak of $64 billion hit in August 2008.

FIRS makes ₦3.3 trillion in 2016

The Federal Inland Revenue Service (FIRS) made a record N3.303 trillion in 2016, its chairman Babatunde Fowler disclosed in Lagos, shredding earlier reports of the revenue made for the central government by the agency.

Earlier reports had said the agency only raked in between N1.2 trillion and N2trillion for the year, as against N2.92trillion made in 2015.

The new figure reported by Fowler shows that the agency beat 2015 figure, but failed to meet the N5billion target set by the Federal Government for the 2016 budget.