Economy
Borrowing from IMF Politically Unacceptable to FG—FBNQuest
By Modupe Gbadeyanka
Analysts at FBNQuest have said commented on the recent sale of Nigeria’s first diaspora bond on the international capital market by the Debt Management Office (DMO).
It was learnt that the $300m issue, has a tenor of five years and pays a coupon of 5.625 percent, was oversubscribed by 130 percent.
The bond was approved both by the SEC in the US and the UK Listing Authority, though it has been on the drawing board for a few years.
However, the marketing channels have now been opened and the debt office has a formula that can be repeated.
According to a report by FBNQuest Research, the diaspora bond issue follows sales of Eurobonds this year to raise $1.5 billion.
The 2017 budget has an external financing target of N1.07 trillion or $3.5 billion at the assumed exchange rate of N305 per US dollar.
“It would appear that the DMO has already raised more than half the target for the year. However, the approved 2016 budget projected external financing of N640 billion or $3.2 billion at the assumed rate of N197.
“That rate was, of course, liberalized in June. The only financing secured in 2016 was a disbursement of $600 million by the African Development Bank.
“The authorities may consider the 2016 deficit financing chapter closed since the stock of outstanding FGN bonds last year increased by as much as N2.22 trillion,” the report said.
It added that, “This success in tapping the commercial market does not spare the FGN the ordeal of talks with the multilaterals.
“Borrowing from the IMF is unacceptable politically to a Nigerian government but the FGN needs to persuade the World Bank to disburse a budget loan.
“Whatever the sticking point, the exchange-rate regime perhaps, the authorities need to reach an agreement.”
The report stated that the growth in borrowing at commercial rates obviously brings increased servicing costs.
“However, we are talking of an increase from a low base. Our calculations suggest average FGN borrowing costs in 2016 of 2.1 percent for external obligations and 11.6 percent for domestic. (The latter will have since risen dramatically.)
“Projections by Fitch in its latest full rating report from March this year flag up the strength of Nigeria’s external balance sheet. It sees gross general government debt/GDP rising from 17.4 percent last year to 26.2 percent in 2026.
“Its sensitivity analysis of public debt points to a ratio above a still manageable 30 percent if the FGN is unable to reduce its primary budget deficit or suffers a rise of 250 bps in its servicing costs.
“The DMO has other initiatives in play to diversify funding sources. It is selling FGN savings bonds to retail, albeit with a slow start, and, together with the SEC in Abuja, is preparing for the country’s first sukuk (Islamic bond) in local currency” the report said.
By Aduragbemi Omiyale
The credit ratings of Stanbic IBTC Insurance, a subsidiary of Stanbic IBTC Holdings Plc, have been upgraded by Agusto & Co.
The improved ratings underscore the company’s commitment to robust risk management, operational discipline, and its strong capacity to meet obligations to policyholders.
In a statement, Stanbic IBTC Insurance said its long-term and short-term ratings of A and A1 were raised by the rating agency. It was added that the two ratings were given a stable outlook, reflecting stronger confidence in the company’s financial resilience, governance standards, and long-term sustainability.
Agusto also cited Stanbic IBTC Insurance’s sound liquidity position, prudent business strategy, and the strategic backing it receives as part of Stanbic IBTC Holdings.
As part of its growth strategy, Stanbic IBTC Insurance continues to expand its retail footprint across Nigeria, enhancing access to life insurance solutions and deepening its presence in key markets. This expansion supports its mission to serve individuals, families, and businesses with reliable and accessible insurance offerings.
In terms of claims settlement, Stanbic IBTC has consistently demonstrated its commitment to prompt and efficient payout to policyholders and annuitants.
Since its establishment in 2021, the company has settled over 2,000 claims, amounting to more than N1.8 billion in cash.
Additionally, it has paid over 16 billion in annuities to more than 4,900 retirees, reaffirming its dedication to delivering reliable and timely benefits.
“We are delighted with this upgrade as a reflection of our progress and the trust we’ve earned from stakeholders.
“Our focus remains on delivering reliable protection, exceptional service, and enduring value to both policyholders and other stakeholders.
“This recognition motivates us to uphold the highest standards of financial discipline, service excellence, and integrity,” the chief executive of Stanbic IBTC Insurance, Mr Akinjide Orimolade, stated.
By Aduragbemi Omiyale
Additional 2,575,851,543 ordinary shares of First Holdco Plc issued to one of the investors of the company from a private placement have been listed on the Nigerian Exchange (NGX) Limited.
The equities were sold at the exercise at N32.50 per share, amounting to N83.715 billion. They were from the private placement of 3,276,923,077 ordinary shares of the financial services firm.
The listing of the new stocks have increased the total issued and fully paid-up shares of First Holdco Plc to 44,453,693,134 ordinary shares of 50 Kobo each from 41,877,841,591 ordinary shares of 50 Kobo each.
This development was confirmed by the bourse over the weekend in a disclosure to the investing community.
“Trading licence holders are hereby notified that additional 2,575,851,543 ordinary shares of 50 Kobo each of First Holdco Plc were on Monday, January 5, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares listed on NGX arose from the company’s private placement of 3,276,923,077 ordinary shares of 50 Kobo each at N32.50 per share.
“With the listing of the additional shares, the total issued and fully paid-up shares of First Holdco Plc have now increased from 41,877,841,591 to 44,453,693,134 ordinary shares of 50 Kobo each.
By Dipo Olowookere
Eighty-four equities gained weight on the floor of the Nigerian Exchange (NGX) Limited last week, higher than the 73 equities recorded a week earlier, helping the All-Share Index (ASI) to rise by 3.71 per cent to 162,298.08 points and lifting the market capitalisation by 3.84 per cent to N103.775 trillion.
In the five-day trading week, all other indices finished higher apart from the sovereign bond index, which closed flat.
Data also showed that 22 equities depreciated in the period under review, lower than 23 equities in the previous week, while 42 equities remained unchanged, lower than 51 equities in the previous week.
Multiverse ended the week as the biggest price gaienr after improving its value by 59.73 per cent to close at N23.40, McNichols appreciated by 53.20 per cent to N5.50, May and Baker expanded by 51.58 per cent to N28.80, Deap Capital rose by 43.54 per cent to N3.00, and Neimeth leapt by 43.22 per cent to N8.45.
On the other hand, Aluminium Extrusion was the biggest price loser with a 19.75 per cent decline to settle at N19.10, Austin Laz lost 11.56 per cent to trade at N4.13, Sovereign Trust Insurance moderated by 11.29 per cent to N3.38, Ikeja Hotel depreciated by 10.91 per cent to N40.00, and Juli contracted by 9.93 per cent to N7.26.
In the week, investors transacted 4.164 billion shares worth N94.026 billion in 248,254 deals versus the 7.821 billion shares valued at N134.471 billion traded in 150,799 deals in the preceding week.
Financial stocks led the activity chart with 2.651 billion units sold for N35.957 billion in 93,706 deals, contributing 63.67 per cent and 38.24 per cent to the total trading volume and value, respectively.
Services equities followed with 369.963 million units worth N3.383 billion in 16,521 deals, and third place was ICT shares with a turnover of 297.938 million units worth N5.727 billion in 21,548 deals.
Universal Insurance, Linkage Assurance, Access Holdings accounted for 1.261 billion shares worth N5.060 billion in 13,819 deals, contributing 30.28 per cent and 5.38 per cent to the total trading volume and value apiece.
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