Banking and Finance

Planned $2.5b Eurobond to help Lower Government Cost –Debt Office

A proposed $2.5 billion Eurobond to refinance some of Nigeria’s treasury bill portfolio will not increase its overall debt stock but will help lower cost, the Debt Management Office (DMO) said on Friday.

Proceeds from the bond sale would be converted to naira and used to redeem a more expensive local debt, thereby improving the government’s debt service ratio, the DMO said in a statement.

Taxation: FG Launches Voluntary Assets and Income Declaration Scheme

The Federal Government on Thursday launched Voluntary Assets and Income Declaration Scheme (VAIDS) in Enugu with renewed commitment to clamp down on tax defaulters.

VAIDS is a time limited opportunity for taxpayers to regularise their status relating to previous tax periods.

Tax payers are expected to within the period which terminates on March 31, 2018, honestly declare previously undisclosed assets and income and will benefit from forgiveness of overdue interest and penalties.

FG to Redeem ₦762.5b T. Bill with Planned Eurobond Sale

Nigeria plans to redeem 762.5 billion naira ($2.5 billion) worth of treasury bills from the proceeds of a planned $2.5 billion Eurobond, to lower borrowing costs for the government, Finance Minister Kemi Adeosun said on Wednesday.

The West African country expects to save 64 billion naira each year after it refinances the local bills with the dollar debt, she told reporters following a cabinet meeting in the capital Abuja.

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.