Banking and Finance

Naira Stands at 361 to Dollar

The Naira on Wednesday exchanged at N361.50 to the dollar at the parallel market, maintaining same rate for the past one-week, the News Agency of Nigeria reports.

The Pound Sterling and the Euro traded at N475 and N425, respectively.

At the Bureau De Change (BDC) window, the naira was sold at N361.50, while the Pound Sterling and the Euro closed at N475 and N425, respectively.

Trading at the investors’ window saw the naira closed at N360.27.

Nigeria's FX Reserves Rises to $33.1b

Nigeria’s foreign exchange reserves rose to the highest in almost three years as of Oct. 12, hitting $33.11 billion, central bank data showed on Tuesday.

That put the country’s dollar reserves back at a level not seen since December 2014, the data showed, according to Reuters report.

The bank did not provide a reason for the increase in reserves. Nigeria’s forex buffer stood at $25.73 billion, up 28.68 percent from a year ago, but is still far off a peak of $64 billion hit in August 2008.

Inflation Rate Drops Marginally, Food Prices Up

Nigeria’s annual inflation rate marginally slowed for an eighth month in September, easing to 15.98 percent, the National Bureau of Statistics (NBS) said on Tuesday in its latest publication of the Consumer Price Index.

This was 0.03 percent points lower than the rate recorded in August (16.01) percent making it the eighth consecutive decline in the rate of headline year on year inflation since January 2017.

However, the food price index showed a marginal rise in inflation at 20.32 percent in September, up from 20.25 percent in August.

Overnight Rate Drops to 20% as Cash Squeeze Bites

Nigeria’s overnight lending rate dropped to 20 percent on Thursday on expectation that a cash squeeze will ease after money market rates more than doubled previous session.

Nigeria’s central bank has kept liquidity tight to support the currency, leaving its benchmark interest rate on hold at 14 percent this year. It also aims to keep rates high to attract foreign inflows into its bond market to boost dollar liquidity.

“The market is a bit tight because of FX purchases which mopped up (naira) liquidity,” one trader told Reuters.

Buhari Seeks Lawmakers Approval for $5.5b Foreign Loans

Nigeria’s President Muhammadu Buhari has sought approval from lawmakers in the upper chamber of parliament for $5.5 billion of foreign borrowing, according to a letter read in the Senate on Tuesday.

Africa’s biggest economy grew in the second quarter, climbing out of its first recession in 25 years as oil revenues rose, but the pace of growth was slow, suggesting the recovery remains fragile, Reuters reports.

Nigeria expects a shortfall of $7.5 billion in its record 7.44 trillion naira ($24.33 billion) 2017 budget, which it plans to offset with foreign loans.

Shareholders Task Market Regulators on Sanctions

Capital market shareholders on Saturday called on the authorities of the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) to review the penalties imposed on quoted companies to attract new listing.

They made the plea at an Investors Clinic Programme to mark IOSCO World Investor Week 2017 organised by SEC in Lagos, the News Agency of Nigeria reports.

According to them, incessant penalties on companies was discouraging companies from seeking quotation on the nation’s bourse, thereby affecting the growth and development of the market.

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, Reuters reports.

The bank said 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.

Nigeria Plans Eurobonds, Still in Talks with World Bank –DMO

Nigeria will issue at least a $2.5 billion Eurobond this year and is still in talks with the World Bank for concessionary loans, the head of the Debt Management Office (DMO) told Reuters on Tuesday in an interview.

Patience Oniha, director general of the Debt Management Office said Nigeria would issue $2.5 billion Eurobond which would take the proportion of its foreign debt close to 40 percent, up from 23 percent, a target its working on as part of its medium-term plan.

2017 Budget to be Rolled Over into 2018 –Adeosun

The Minister of Finance, Mrs. Kemi Adeosun, has revealed Federal Government’s plan to roll over at least 60 per cent of 2017 capital projects to 2018 budget proposal.

Adeosun made this known when she appeared before the Senate Joint Committees on Finance and Appropriations.

She was accompanied by the Minister for Budget and National Planning, Udoma Udoma, to give explanation on releases so far made for the implementation of the 2017 budget.

The minister noted that there was no stoppage in terms of capital releases and projects.

Nigeria's Total Revenue at ₦2.305tr as of June 2017 –Budget Office

Nigeria had taken 2.305 trillion naira ($7.53 billion) in total revenue as of June 2017, the budget office said on Tuesday.

Ben Akabueze, director of the budget office, said the sum was 91 percent of the budgetary provision for the half year in Africa’s biggest economy, Reuters reports.