Banking and Finance

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.

Debt Office starts sale of ₦100b debut Sovereign Sukuk

Nigeria has started the sale of a 100 billion naira ($326 million) debut sovereign sukuk on the local market to fund road infrastructure, the Debt Management Office said on Thursday.

The seven-year Islamic bond which is structured as a lease will yield a 16.47 percent rental rate, payable semi-annually. Subscription for the bond, which is guaranteed by the government, will close on Sept 20.

According to Reuters report, the debut sukuk was originally planned to go on sale in June for three days via book building.

Nigeria Plans ₦140b Treasury Bill Sale

Nigeria plans to sell 140.9 billion naira ($433.5 million) worth of treasury bills at an auction next week, the central bank said on Wednesday.

The bank said it plans to offer 28.12 billion naira of three-month debt, 23.68 billion in six-month bills and 89 billion in one-year notes, using the Dutch auction system, on Sept 21. Settlement will be made next day after the auction, Reuters reports.

The central bank issues treasury bills twice a month to help the government fund its budget deficit, support commercial lenders in managing liquidity and curb inflation.

Nigeria Reforms Capital Importation to Attract Foreign Investors

Nigeria’s central bank on Monday will start issuing electronic certificates for capital imported into the country, in a bid to improve its currency transfer process, it said.

The new certificate will replace a hard copy now issued when capital is imported, according to a circular from the central bank. The bank said the move would enhance transparency and efficient processing of foreign investment, Reuters reports.

Afreximbank Offers $300 million to Private Investors in Equity

The African Export-Import Bank (Afreximbank) is offering up to $300 million in depositary receipts to private investors to boost capital for lending to industries on the continent, a top executive of the bank said on Thursday, Reuters reports.

The depositary receipts offer investors the same rights as normal shareholders, but issuing them does not come with the same regulatory requirements as issuance of normal shares.