Banking and Finance

Annual Inflation Slows in July to 16.05%, Food Inflation Soars

Annual inflation in Nigeria slowed for a sixth month in July, easing to 16.05 percent, but the rise in food inflation was the biggest in eight years, the National Bureau of Statistics (NBS) said on Monday.

The rate of annual inflation was 0.05 percent lower than in June. A separate food price index showed inflation rose to 20.28 percent in July, up from 19.91 percent in June, the biggest year-on-year increase since 2009, the statistics office said, according to Reuters report.

Overnight Lending Rate Drops on Liquidity Injection

Nigeria’s overnight lending rate dropped to 12 percent on Friday after spiking to almost 100 percent on Wednesday due to a liquidity squeeze as lenders paid for hard currency and treasury bills purchased from the central bank, traders said.

Money market rates moderated on Thursday after the state disbursed 224.54 billion naira ($715.10 mln) in budget allocations to its three tiers of government, boosting liquidity.

The bank also repaid around 95.7 billion naira in matured treasury bills, to boost liquidity, traders said.

Caution May be Creeping in to Emerging Markets –IIF

Investor caution may be starting to creep into emerging markets following a blistering rally so far this year, the Institute of International Finance (IIF) said on Thursday.

A combination of increasing global growth, low interest rates and a weak dollar have fuelled the surge in emerging economy currencies and assets, but the capital flow tracker pointed to possible signs of a pause, Reuters reports.

Nigeria’s Revenue Shrinks by ₦184.2b

Revenue shared by Nigeria’s Federal, States and Local Governments slumped to N467.8 billion in August, N184.2 billion less than the N652 billion shared in July.

Kemi Adeosun, minister of finance said the shared amount was inclusive of Value Added Tax (VAT) of N80.53 billion.

In the breakdown of revenue given by her representative, Permanent Secretary, Mr Mahmoud Dutse, at the end of the monthly Federation Account Allocation Committee (FAAC) meeting on Tuesday in Abuja, Gross statutory revenue was put at N387.31 billion.

Bonds: 7,000 Investors Subscribed in Five Months

The Director-General, Debt Management Office (DMO), Ms Patience Oniha, says about 7,000 investors have subscribed to the Federal Government of Nigeria’s savings bonds since its introduction in March.

Oniha told the News Agency of Nigeria recently that one of the primary reasons for introducing the savings bond was to encourage a savings culture among the populace.

She said that considering that the subscribers are largely retail investors, it meant that the savings bond had provided a vehicle for mobilising savings.

Interbank Rate falls on Matured T-bills, Refunds on Dollars

Nigeria's interbank overnight lending rate fell sharply on Friday to an average of 12 percent from around 60 percent a week ago after the central bank repaid matured treasury bills and a refund of excess cash deposited by banks to buy dollars.

The central bank sold $100 million at its special intervention auction in the foreign exchange market on Tuesday, which was less than the amount requested by banks, leading to a refund of the excess deposited by banks on Friday.

Govt. Officials Collect Over ₦400b Bribes Annually –Report

The National Bureau of Statistics (NBS) has said roughly N400 billion is spent on bribes each year in Nigeria, taking into account that nine of every 10 bribes are paid in cash.

The NBS stated this in “Corruption in Nigeria, Bribery: Public Experience and Response 2017 Survey’’, posted on the bureau’s website.

The bureau stated that it was estimated that the total amount of bribes paid to public officials in Nigeria in the 12 months prior to the survey was around N400 billion.

Whistleblower Policy a Successful Initiative –Adeosun

The Minister of Finance, Mrs Kemi Adeosun, says the whistleblower policy of the Federal Government is one of the current administration’s successful initiatives.

She said this on Tuesday in Abuja at a seminar organised by the Bureau of Public Service Reforms (BPSR) on “The Whistleblower Policy and its Implication for Public Servants’’.

The Whistleblower Policy was introduced in December 2016 by the Federal Government as part of the initiatives to wage war against corruption.

Debt Office to Raise ₦135b in Bonds

Nigeria plans to raise 135 billion naira ($442.62 million) in bonds on August 23, the debt office said on Tuesday.

The debt office will 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.

Lagos Raises ₦85b in Bond Issue to Fund Projects

Nigeria's Lagos state on Monday raised 85.14 billion naira ($271 million) in 7- and 10-year bonds to fund infrastructure and environmental projects, its commissioner for finance said on Monday.

The bond consists of 46.37 billion naira 7-year debt at a 16.75 percent rate and 38.77 billion naira via a 10-year paper with 17.25 percent interest, Akinyemi Ashade said in a statement, Reuters reports.

The issue is the third tranche of a 500 billion naira debt programme approved by the state parliament last year and was sold through book building, Ashade said.