Economy

Nigeria’s Forex Inflow Grows 121% in 5 Months, Hits 14.5b

Published

8 years ago

20/07/2017

By Modupe Gbadeyanka

Data released by the Central Bank of Nigeria (CBN) has revealed that the foreign exchange inflow into the country from January to May 2017 rose to $14.53 billion.

This, it said, represents 121 percent increase when compared with $6.57 billion recorded from January to May in 2016.

Vanguard analysis of the monthly economic reports of the apex bank revealed that foreign exchange outflow through the CBN, however, increased marginally by 5.8 percent to $9.09 billion within same period this year, compared to the $8.59 billion recorded as outflow same period last year.

Consequently, the apex bank recorded net foreign exchange inflow of $5.4 billion in the first five months of this year, up by 367 percent from net outflow of $2.02 billion recorded in the corresponding period of 2016.

Further details, however, revealed that foreign exchange inflow into the CBN has been fluctuating since February when it peaked at $5.1 billion.

In March it dropped to $1.63 billion, rose to $2.87 billion in April but dropped again to $2.26 billion in May.

On the other hand, foreign exchange outflow from the apex bank has been on the upward trend since the beginning of the year.

In January 2017 foreign exchange outflow from the apex bank rose to $1.18 billion, in February, $1.67 billion in March, $2.16 billion in April, and $3.02 billion in May.

Consequently CBN recorded the first net foreign exchange outflow of $761 million in May.

This, according to the CBN, was due to decline on crude oil prices. Also it indicated the bullish interventions in the supply side of the interbank foreign exchange market since March this year was taking a toll on the forex resources.

Providing details of foreign exchange inflow and outflow in May, CBN said, “The external sector weakened in May 2017 due to the decline in crude oil prices from an average of $52.90 per barrel in April 2017 to $51.04 per barrel.

Increased shale oil production in the United States and supply by non-members of the Organisation of Petroleum Exporting Countries (OPEC) both contributed to the fall in crude oil prices.

Consequently, foreign exchange inflow through the CBN, at $2.26 billion, declined by 21.4 percent below the level in the preceding month, but was 27.0 per cent above the level in the corresponding period of 2016.

The decline relative to the level in the preceding month was driven by fall in both oil and non-oil proceeds.

“Aggregate outflow of foreign exchange through the bank at $3.02 billion, increased by 39.6 percent and 78.7 percent above $2.16 billion and $1.69 billion in the preceding month and the corresponding period of 2016 respectively.

“The development was driven by outflow through foreign exchange special payment, drawings on letters of credit, inter-bank utilization and external debt service. Overall, the net outflow through the bank in the month of May 2017 was $0.76 billion, in contrast to a net inflow of US$0.71 billion and $0.09 billion recorded in the preceding month and the corresponding period of 2016, respectively.”

http://www.vanguardngr.com/2017/07/forex-inflow-sharp-rise-cbn-records-14-5bn-5-months/

Economy

FG Offers N450bn Bonds For Sale

Published

9 hours ago

27/01/2025

Adedapo Adesanya

By Adedapo Adesanya

Nigeria, through the Debt Management Office (DMO), has offered three bonds for subscription to interested investors to the tune of N450 billion.

The DMO, in its offer circular on Monday, said that the first offer was an April 2029 FGN bond, valued at N100 billion at an interest rate of 19.30 per cent per annum. (5-year re-opening).

It listed the second offer as a February 2031 FGN bond valued at N150 billion at an interest rate of 18.50 per cent per annum. (7-year re-opening) and the third offer (January 2035 FGN bond) valued at N200 billion.

The auction date is January 27, and the settlement date is January 29, the notice stated.

According to the DMO, the FGN bonds are offered at N1,000 per unit subject to a minimum subscription of N50 million, and in multiples of N1,000 thereafter.

“For re-openings of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.

“Interest is payable semi-annually, while bullet repayment (principal sum) is on the maturity date, ” the DMO said.

It said that the bonds were backed by the full faith and credit of the Federal Government, and were charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustee Investment Act.

“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among others.

“They are listed on the Nigeria Exchange Limited, ” it said.

It said that they qualified as liquid assets for liquidity ratio calculations for banks,” the debt office added.

Economy

Investments in Risevest, Stecs Risky—SEC Warns Nigerians

Published

11 hours ago

27/01/2025

Aduragbemi Omiyale

SEC strategic economic development goals

By Aduragbemi Omiyale

Nigerians have been warned against putting their hard-earned money in Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, commonly known as Stecs, as they could lose their funds.

The capital market regulator in a circular in Abuja said investments in these entities, which it described as unregistered and unregulated, could expose investors to the risk of fraud and potential loss of investment.

SEC said Risevest and Stecs had not been authorised to carry out capital market operations in the country, and as such, investing in them was risky.

“The attention of the Securities and Exchange Commission has been drawn to the activities of Risevest (Victoria Island) Cooperative Multipurpose Society Limited, which is engaging in capital market activities by inviting the public to invest in its various investment schemes.

“The commission hereby notifies the public that Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society are not registered to operate in any capacity in the Nigerian capital market. Similarly, the investment schemes promoted by them have not been authorized by the commission.

“Accordingly, the SEC advised the public to refrain from engaging with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society in respect of any business pertaining or relating to the Nigerian capital market,” the notice read.

In the same vein, the agency said, “Our attention has been drawn to Stecs (Alausa) Multipurpose Cooperative Society (popularly known as Stecs), which is engaging in capital market activities by inviting the public to invest in its Stecs Commodity Mudarabah Investment Series I.

“The commission hereby notifies the public that Stecs (Alausa) Multipurpose Cooperative Society is not registered to operate in any capacity in the Nigerian capital market. Similarly, the investment schemes promoted by the cooperative society have not been authorized by the commission.”

“Accordingly, the public is advised to refrain from engaging with Stecs (Alausa) Multipurpose Cooperative Society in respect of any business pertaining or relating to the Nigerian capital market.”

“The commission uses this medium to reiterate that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to the risk of fraud and potential loss of investment.”

“The SEC remains committed to the protection of investors in the Nigerian capital market and is working diligently to combat the activities of illegal/unregistered entities.”

Economy

Value of Unlisted Securities Market Grows 65.1% in Week 4 of 2025

Published

11 hours ago

27/01/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange saw a 65.1 per cent boost in its market capitalisation in the fourth trading week of 2025, closing at N1.770 trillion compared with the N1.075 trillion it quoted in the preceding week (Week 3), as the NASD Unlisted Security Index (NSI) rose by 0.68 per cent or 21.29 points to 3,133.20 points from 3,111.91 points.

The sterling performance occurred amid a surge in the volume of transactions by 4,402.4 per cent to 425.3 million units from the 9.45 million units recorded in the previous week.

Equally, the total value of trades during the week jumped by 740.5 per cent to N410.5 million from the previous week’s N48.4 million, with these transactions carried out in 102 deals involving 16 stocks.

In the week, there were eight appreciating securities and four depreciating securities led by Impresit Bakolori Plc, which shed 9.5 per cent to end at 95 Kobo per share compared with N1.05 per share, Geo-Fluids Plc lost 6.8 per cent to close at N4.38 per unit versus N4.70 per share, FrieslandCampina Wamco Plc depreciated by 2.7 per cent to N38.58 per unit from N39.65 per unit, and UBN Property Plc, which slid by 1.4 per cent to N1.84 per unit from N2.20 per unit.

On the flip side, Okitipupa Plc gained 33.1 per cent to trade at N52.69 per share against the former value of N39.55 per share, Industrial and General Insurance (IGI) Plc expanded by 11.1 per cent to 40 Kobo per unit versus 36 Kobo per unit, Nipco Plc grew by 10 per cent to N165.11 per share from N150.10 per share, and Mixta Real Estate Plc rose by 9.7 per cent to N2.83 per unit from N2.58 per unit.

Further, Food Concepts Plc increased by 8.8 per cent to N1.74 per share from N1.60 per share, Access Bank jumped by 8.8 per cent to N19.30 per unit from N9.68 per unit, First Trust Microfinance Bank improved by 8.8 per cent to 39 Kobo per share from 37 Kobo per share, and Central Securities Clearing System (CSCS) Plc soared by 3.5 per cent to N24.00 per unit from N23.20 per unit.

The most traded stock for the week by value was Impresit Bakolori Plc with N386.5 million, FrieslandCampina Wamco Plc recorded N8.5 million, IGI Plc traded N7.04 million, 11 Plc recorded N2.7 million, and Okitipupa Plc posted N1.7 million.

Also, Impresit Bakolori Plc was the most traded stock by volume with 406.5 million units, IGI Plc transacted 17.5 million units, UBN Property Plc recorded 0.67 million, Mixta Real Estate Plc traded 0.27 million units, and FrieslandCampina Wamco Plc transacted 0.22 million units.