Banking and Finance

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.

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.