Banking and Finance

Expert Advocates Autonomous Regulator for Micro Finance Banks

A political economist, Dr Ja’afar Sa’ad, has advocated for the establishment of an autonomous body to regulate community and micro finance banks in Nigeria for maximum output.

Sa’ad, who is also the Galadiman Ruwan Zazzau, stated this in an interview with the News Agency of Nigeria on Thursday in Zaria, Kaduna State.

He said that such an agency should be charged with the responsibility of licensing and regulating community and micro-finance banks in the country.

Nigeria’s Foreign Reserves Rise to $32.16b

Nigeria’s foreign exchange reserves were up 1.52 percent from a month earlier to $32.16 billion by Sept. 22, latest central bank data showed on Friday, according to Reuters report.

Nigeria’s dollar reserves were up almost 30 percent from a year earlier. The bank did not provide a reason for the increase, which could be a result of a rise in global oil prices and its own crude production at home.

Issued Bond Size almost Doubles as Funds grab High Returns

Nigeria raised 243.7 billion naira at a bond auction on Wednesday, almost double the amount it had initially sought, as local funds and foreign investors piled into longer-term debt to lock in higher returns, traders said.

Nigeria’s borrowing costs have fallen from as high as 18 percent a few months ago as inflation has slowed, helping the government raise money to cover a gap in its budget.

FG Releases ₦336b Capital Funds to MDAs in Q1

The Federal Government says it has so far released N336 billion to its Ministries, Departments and Agencies for the execution of capital projects in the first quarter of 2017.

The Minister of Finance, Mrs Kemi Adeosun, in a statement by the ministry’s Deputy Director of Information, Mrs Patricia Deworitshe, said this was however less than the N350 billion she had hoped to release for the quarter.

Naira Sells at 364/$ as MPC Holds Rate

The Naira yesterday exchanged at N364 to the dollar at the parallel market as the Monetary Policy Committee (MPC) meeting of the CBN holds benchmark interest rate at 14 per cent.

The News Agency of Nigeria reports that the MPC left the benchmark interest rate unchanged at 14 per cent, alongside other monetary policy parameters.

The CBN Governor, Mr Godwin Emefiele, said reducing interest rates may reverse the gains achieved in exchange rate stability and inflation rate reduction.

The Pound Sterling and the Euro traded at N492 and N436.

Nigeria wants IMF, World Bank Reformed

Nigeria has demanded the reform of the Bretton Wood Institutions to make them responsive to the needs of developing countries and also reflect the realities of the 21st century.

The Minister of Foreign Affairs, Geoffrey Onyeama, stated this at the 41st Ministerial Meeting of the Group of 77 plus China (G77+China) on the sidelines of the UN General Assembly.

The G77 is a coalition of developing nations at the UN that promotes its members’ collective economic interests and create an enhanced joint negotiating capacity in the UN.

CBN sells more Treasuries as Moves to Support Naira

Nigeria’s central bank sold 207 billion naira in treasuries on Thursday to mop up liquidity, a day after it raised more money than planned via a debt auction as it moved to keep borrowing costs high to support the currency, traders said.

The bank is aggressively mopping up funds from the banking system to help curb inflation and battle weakness in the local currency. This is pushing up costs, especially for the government, which is battling to contain a widening deficit.

Debt Office to Sell ₦135b Bonds

Nigeria plans to auction 135 billion naira ($442 million) in bonds next week, the Debt Management Office said on Tuesday.

The debt office plans to sell 35 billion naira of bonds due in 2021 and 50 billion naira each of bonds due in 2027 and in 2037, using a Dutch auction system, Reuters reports.

Settlement is expected two days after the sale. The bonds are re-openings of previous issues.

The central bank on Wednesday announced plans to sell 140.9 billion naira worth of Treasury bills at an auction next week.

Inflation Rate drops for the Seventh Consecutive Month

The Nigerian National Bureau of Statistics on Friday released the Consumer Price Index report which measures inflation with the rate dropping from 16.05 per cent in July to 16.01 per cent in August year-on-year.

The bureau in the report which was made available to our correspondent said this is the seventh consecutive months that the index would be declining.

On a month-on-month basis, the report said the headline index increased by 0.97 per cent in August 2017, representing a 0.24 per cent points lower than the rate of 1.21 percent recorded in June.

Poor Revenue Bane of Nigeria’s Budget Execution

The Director-General of the National Institute for Legislative Studies (NILS), Prof. Ladi Hamalai, on Wednesday in Abuja said implementation of the country’s capital budget was constrained by weak revenue base.

Hamalai said this in her keynote address at a colloquium on “Journalists and Social Media Influences on Legislative Power of Appropriation/Budget Reform Process’’.

She said that late enactment of budgets, untimely and irregular release of funds and preponderance of unplanned projects were some factors affecting budget implementation.