Banking and Finance

Bond Yields Rise Across Board to Five Month High

Nigerian bond yields rose 50 basis points across maturities on Wednesday to a level last seen five months ago, traders said.

Investors, worried that rising global inflation could trigger a rate hike in developed economies and lead to a capital flight in emerging markets, were closing out their bond positions, traders told Reuters.

The benchmark 20-year debt jumped 13.5 percent to a five month high. The most liquid five-year bonds rose to 13.7 percent from 13.2 percent in the previous session, traders said.

Nigeria sells Treasuries at Higher Yield to Draw Funds

Nigeria raised 252.88 billion naira ($827 mln) at a treasury bill auction on Wednesday as investors piled demand into the higher yielding one-year debt, traders told Reuters on Thursday.

The central bank sold 177.22 billion naira of one-year debt at a rate of 13.7 percent. It auctioned 6.09 billion naira of three-month debt at 12 percent, and 69.57 billion naira of six-month maturity debt at 13.65 percent. Total subscription stood at 355.2 billion naira.

FIRS Generates ₦4.03tr Revenue in 2017

The Chairman, Federal Inland Revenue Service (FIRS), Mr Tunde Fowler, said the Service collected N4.03 trillion revenue in 2017.

A statement by the Head, Communications and Servicom, FIRS, Mr Wahab Gbadamosi, on Wednesday in Abuja, said that Fowler made this known when he led a delegation to the palace of Oba of Lagos, Akiolu I.

He said that the delegation, which comprised members of FIRS Board, some members of House of Representatives and members of states’ Boards of Internal Revenue Service was at the palace to “seek royal blessing and advice’’.

Central Bank Injects $210m into Currency Market

Nigeria’s central bank said on Monday it had injected $210 million into the interbank foreign exchange market, extending efforts to boost liquidity and alleviate dollar shortages.

The bank said in a statement it had released $100 million earmarked for the wholesale market, $55 million for small businesses and individuals, and $55 million for certain dollar expenses such as school fees and medical bills. 

Davos: Nigeria Woos Investors

The Minister of Budget and National Planning, Udo Udoma, has encouraged foreign investors to take advantage of the country’s economic potential to invest in various sectors of the economy.

Udoma said this in a statement issued by his Special Adviser on Media, Akpandem James, at the ongoing World Economic Forum (WEF) in Davos, Switzerland on Thursday.

According to the statement, Vice-President Yemi Osinbajo and Trade, Industry and Investment Minister, Dr Okey Enelamah are attending the Forum.

Nigeria Eyes $2.5b Eurobond Sale in Q1 to Refinance Local Debt

Nigeria will consider raising $2.5 billion through Eurobonds in the first quarter to refinance a portion of its domestic treasury bill portfolio at lower cost, the head of the Debt Management Office told Reuters on Thursday.

Patience Oniha said the country will also try to get back into the JP Morgan Government Bond Index (GBI-EM), with improving liquidity in the local currency market.

She said a Eurobond placement will depend on market conditions, pricing and tenor.

Yields Rise at Nigerian Bond Auction

Nigeria raised 110 billion naira ($360 mln) at rates higher than at its previous bond auction, the debt office said on Thursday, days after its central bank cancelled a meeting to set interest rates due to a lack of quorum.

The Debt Management Office sold 45.12 billion naira in 5-year debt on Wednesday at 13.38 percent and auctioned 64.88 billion naira of 10-year bonds at 13.49 percent, higher than 13.19 percent and 13.21 percent respectively it fetched at the last auction.

The total subscription at the sale was 150 billion naira.

Excess Crude Account Balance of $2.3b Intact –Fin. Minister

Minister of Finance, Mrs Kemi Adeosun said that the balance in the Excess Crude Account (ECA) still remains  $2.31 billion.

She gave the figure against the backdrop of some legal challenges by some states to the plan by the Federal Government to spend $1billion out of the money to battle security challenges.

Adeosun spoke today after the Federation Account Allocation Committee (FAAC) shared N655.17 billion to the three tiers of government as revenue for January.

The money was distributed under four sub-heads.

CBN says won't hold Interest Rate meeting, Rate to be held at 14%

Nigeria’s central bank said on Monday a key interest rate setting meeting intended for January 22-23 will not be held due to an inability to form a quorum, adding that the benchmark rate will be maintained at 14 percent.

The decision comes because there are not enough members of the Central Bank of Nigeria’s (CBN‘s) Monetary Policy Committee (MPC) to form a quorum, the lender said in a statement.

Local Bonds: DMO Targets Up to ₦385b in First Quarter

Nigeria plans to raise 315 billion to 385 billion naira ($1 billion to $1.26 billion) in the first quarter of the year through sales of naira-denominated bonds, the Debt Management Office said on Friday.

The DMO said it would auction bonds maturing in 2021 and 2027 and introduce a new seven-year bond, Reuters reports. The 2021 and the 2027 are benchmark bonds that are currently traded, it said.

The debt office said its issuance program has been structured to ensure that funds required by government to finance its budget deficit are provided during the year.