Banking and Finance

Treasury Bills Extend Rally as Sell-off, new Issues Weigh

Yields on Nigeria’s mid-dated treasury bills rose nearly 1 percentage point to 12 percent on Friday, extending a three-day rally as a sell-off which started this week continued, traders said.

The Debt Management Office (DMO) repaid 131.42 billion naira ($429.13 million) worth of treasury bills on Thursday instead of rolling them over, thereby slightly reducing its debt and debt-servicing costs for the government.

It also plans to repay 66.62 billion naira on Dec. 21.

Nigeria Repays $1.1b worth of T-bills; Overnight Rates fall

Nigeria’s central bank repaid a total of 340 billion naira ($1.1 bln) worth of treasury bills on Thursday instead of rolling them over, in a move to lower government borrowing costs, traders told Reuters.

They included 131.4 billion naira worth of treasury bills issued by the Debt Management Office (DMO), while the balance was in open market bills issued by the central bank.

The DMO has said it will repay treasury bills maturing on Dec. 14 and Dec. 21 totalling 198.03 billion naira.

Banks Trade FX at ₦314.50 on Interbank Market

Nigeria’s foreign exchange market saw transactions worth $1.34 million at its interbank window on Wednesday at a rate of 314.50 naira per dollar, as commercial banks traded the local currency at below the central bank rate.

The central bank has used a rate of around 306 to supply dollars to banks since it introduced a multiple exchange rate system in February.

CBN Injects $210m into Currency Market

Nigeria’s central bank said on Tuesday 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.

FG to Release ₦750b for Capital Projects –Adeosun

Photo L-R: Deputy Governor of Imo, Eze Madumere; Minister of Finance, Kemi Adeosun; Deputy Country Director, French Agency for Development; and French Ambassador Denys Gauer, during the signing of a bilateral agreement when 30 Chief Executive Officers on a business visit from France. (NAN)

The Federal Government will release this week additional N750 billion for capital projects to ministries, departments and agencies (MDAs) of government as contained in the 2017 budget, Minister of Finance, Kemi Adeosun said.

Fitch cuts Nigeria’s 2017 GDP Growth Forecast

Fitch has cut its 2017 economic growth forecast for Nigeria to 1 percent from 1.5 percent, the ratings agency said on Friday.

Nigeria returned to growth in the second quarter of 2017 after shrinking by 1.5 pct in 2016 but the recovery has been fragile because oil revenues remain depressed and hard currency is short.

Speaking at a Fitch event in London, Jermaine Leonard, a director for sovereigns, added that although Nigeria’s 2018 budget had an oil production target of 2.3 million barrels per day (bpd), the Fitch forecast was just above 2 million bpd.

Debt Office to Raise ₦100b at Bond Auction

Nigeria plans to raise 100 billion naira ($327 million) by selling sovereign bonds with maturities of five and 10 years on Dec. 13, the Debt Management Office (DMO) said on Wednesday.

The debt office said it will raise 50 billion naira each in of the maturities using the Dutch auction system, Reuters reports.

The bonds are re-openings of previous issues and the result of the auction is expected to be published on Dec. 15, the DMO said.

CBN weakens Naira to 307/US$ for first time

Nigeria’s central bank on Monday weakened the naira marginally, selling dollars at 307 naira each for the first time on the official interbank market, in what traders say could signal a gradual move to merge its multiple exchange rates.

Nigeria’s convoluted exchange rate system has been used to manage what the central bank described as “frivolous” demand for dollars at the peak of a currency crisis which began two years ago.

Nigerian Capital Inflows more than Doubled in Q3 to $4.2b

The total value of capital imported into Nigeria more than doubled in the third quarter to $4.15 billion, after the economy emerged from a recession, the National Bureau of Statistics (NBS) said on Monday.

Nigeria’s economy grew in the second quarter, climbing out of its first recession in 25 years, as oil revenues rose. Last year the central bank imposed currency controls to prevent a collapse in the naira, which affected foreign capital inflows, Reuters reports.

CBN holds Benchmark Interest Rate at 14%

Nigeria’s central bank held its benchmark interest rate at 14 percent on Tuesday and said the recovery of Africa’s biggest economy from its first recession in a generation remained fragile.

Governor Godwin Emefiele said eight committee members had voted to hold the main rate, while one voted for a cut. All other policy parameters were kept unchanged, Reuters reports.

“Inflation in particular requires very close monitoring to gain clarity on the medium-term optimum path of monetary policy,” Emefiele told a news conference.