CBN Cuts One-Year OMO Bill Rate by 0.15% After 289.88% Subscription

Image

By Dipo Olowookere

The demand for long-dated debt instrument by investors at the secondary market for treasury bills continued on Thursday when the Central Bank of Nigeria (CBN) floated an OMO auction.

Business Post reports that during the exercise, the apex bank offered for sale OMO bills worth N300 billion in three maturities. However, subscriptions worth N886.66 billion were received from market players.

It was observed that larger percentage of these offers were from the long-date instrument, which was subscribed to by 289.88 percent.

The CBN had auctioned N200 billion worth of 364-day bill, but received offers valued at N779.75 billion, indicating an oversubscription of N579.75 billion. However, the bankers’ bank eventually allotted N157.23 billion, with the stop rate lowered to 12.25 percent from 12.40 percent, representing 0.15 percent reduction.

At the auction yesterday, the central bank offered N50 billion of 266-day bill, but subscriptions valued at N73.80 billion were received and allotted at 11.84 percent, same rate with the last exercise.

Also, N50 billion worth of 112-day bill was auctioned, with N33.11 billion subscriptions received and allotted at 11.40 percent, same rate the instrument was sold at the previous OMO auction.

Meanwhile, the N264 billion OMO sale by the central bank on Thursday resulted in the raising of the money market rates by 0.86 percent, closing at 4.50 percent.

This followed that 0.86 percent increased each by the Open Buy Back (OBB) rate and Overnight (OVN) rate yesterday.

At the close of transactions, while the OBB rate closed at 4.14 percent from 3.29 percent, the OVN rate finished at 4.86 percent from 4.00 percent.

“We expect rates to trend slightly higher tomorrow, due to funding for the CBN’s bi-weekly retail FX auction,” analysts at Zedcrest Research said.

Share
Related Stories
Image
29-February-2024

Crude Oil Mixed on Undecided US Interest Rates Move, High Inventories

By Adedapo Adesanya Crude oil futures settled mixed on Wednesday after the US Federal Reserve held firm on its decision to hold off cutting interest rates soon while growing crude stockpiles in the world’s largest producer added further pressure. Brent crude futures settled 3 cents higher, or up 0.04 per cent at $83.68 a barrel while the US West Texas Intermediate futures (WTI) settled 33 cents lower, or down 0.42 per cent at $78.54. The market was unsteady over signs that interest rates in the world’s largest economy would remain elevated. US Federal Reserve Bank of New York President John

Image
28-February-2024

Naira Loses N33 to Trade at N1,615/$1 at Official Market

By Dipo Olowookere It was a bad day for the Naira in the official market, the Nigerian Autonomous Foreign Exchange Market (NAFEM), on Tuesday as its value weakened by N33.00 or 2.09 per cent against the United States Dollar to sell at N1,615.94/$1 compared with the previous day’s N1,582.94/$1. This came on a day the Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, reemphasised that the Nigerian currency was grossly undervalued. While briefing newsmen yesterday on the outcome of the Monetary Policy Committee (MPC) meeting, Mr Cardoso stressed that the current rate was not the true value

Image
01-March-2024

Unlisted Securities Remain in Negative Territory by 1.36%

By Adedapo Adesanya Correction at the NASD Over-the-Counter (OTC) Securities Exchange continued as it recorded a 1.36 per cent loss on Thursday, February 29. The bourse lost N21.34 million of its value during the trading session to close at N1.542 trillion compared with the preceding day’s N1.564 trillion and the NASD Unlisted Security Index (NSI) went down by 15.74 points to end the day at 1,138.05 points versus Wednesday’s 1,153.79 points. Yesterday’s decline was influenced by Aradel Holdings Plc, which further suffered further profit-taking, causing its price to drop N98.25 to close at N2,401.75 per share versus the preceding session’s

Image
29-February-2024

EnjoyCorp Buys Heineken’s Stake in Champion Breweries

By Adedapo Adesanya EnjoyCorp Limited, a holding company established for food, beverage and hospitality brands, has reached an agreement with Heineken B.V., to acquire its entire shareholding in The Raysun Nigeria Company Limited. The firm holds an 86.5 per cent stake in Champion Breweries Plc, a leading regional brewer listed on the Nigerian Exchange (NGX) Limited. The proposed transaction is subject to obtaining requisite regulatory approvals and the parties expect to close the transaction in the second quarter of this year (Q2 2024). EnjoyCorp intends to keep Champion Breweries Plc listed on the NGX. Heineken will continue to support Champion

More Stories
Image
29-December-2017

GTB vs Innoson: Now that Passion is Lowering

By Yinka Odumakin The recent unfortunate incident between GTB and Innoson almost put another knife to the thread we are using to join the Igbo and Yoruba, two groups that have shared origin but have been programmed to live like enemy tribes within the Nigerian union. At the peak of the crisis, leaders across the divides were consulting on how to lower tension. I recall speaking with the leader in Ohanaeze, Chief John Nwodo on the need not to allow our people turn a purely business transaction to a political disagreement between Igbo and Yoruba as we eagerly look forward

Image
02-January-2022

FG Restates Determination to Generate 25,000MW Electricity

By Adedapo Adesanya The federal government has assured Nigerians of its readiness to generate 25,000 megawatts of electricity in the country, Channels Television is reporting. This is as part of efforts to enhance power-related businesses and other economic activities in the country. The Minister of Power, Mr Aliyu Abubakar, disclosed this in Katsina State at the weekend during his inspection of several power transmission substation projects, including the ongoing windmill project located at Lambar Rimi in Charanchi Local Government Area of the state. In the company of the Acting Managing Director and Chief Executive Officer of the Transmission Company of

Image
19-October-2022

Bumpa Raises $4m to Boost Retail Automation

By Adedapo Adesanya Bumpa has raised $4 million in seed funding to build the future of commerce for African sellers and boost retail automation with payments, socials, logistics, credit, and analytics that will spur the growth of small businesses. The round was led by Base10 Partners, the largest black-led fund in the world, with participation from Plug & Play Ventures (through their commerce fund) and SHL Capital (Sahil Lavingia, CEO of Gumroad). Others included Magic Fund, Jedar Capital, DFS Labs, FirstCheck Africa Angel Program, E62 Ventures, Club14, and Fast Forward Ventures. With over 42 million small and medium enterprises (SMEs)

Image
08-October-2016

5 Simple Hacks To Take Care of Your Device Charger

By Adeniyi Ogunfowoke Chargers are very important to any device. Your device is useless without their particular chargers. Simply put, you cannot use your device without your charger. This is even more essential if you are using an original charger. But if it gets damaged because you didn’t take good care of it, you will either keep borrowing chargers or spend your hard earned money purchasing chargers because there are so many counterfeit ones out there. We share 5 tips for taking care of the charger of any device. Always unplug by the head Perhaps you are feeling lazy that

Image
16-June-2021

Insight Publicis Emerges 2021 Nigerian Agency of the Year

By Modupe Gbadeyanka A Nigerian advertising company, Insight Publicis, has been named the 2021 Nigerian Agency of the Year by Gerety Awards. Gerety Awards is the only creative prize to reward the best in advertising from the female vision. The agency of the year by country is chosen by the local juries from the portfolio cut and requires a single film no longer than 5 minutes in length and includes up to three pieces of work from the past 12 months. At the shortlist announcement on Tuesday, Insight Publicis claimed the top spot for its portfolio cut entry that included

Image
27-March-2019

Dangote Refinery, NCDMB Train 200 Persons

By Dipo Olowookere As part of plans to support the Nigerian Content Development and Monitoring Board (NCDMB) in its human capital development initiative in the oil and gas sector and in compliance with its Nigerian Content commitments on the project, Dangote Petroleum Refinery and Petrochemicals has selected 200 youths from the host community to participate in the six-month vocational training. Executive Director, Capital Projects, Dangote Group, Mr Devakumar Edwin, described the initiative as a demonstration of Dangote Refinery’s commitment to building capacities and empowering youths in the country. According to him, the programme was launched with the support of the

Image
04-September-2018

2019: Aidoko Woos Kogi East PDP Chieftains With Gifts

By Dipo Olowookere Barring any unforeseen circumstances, all the nine divisional chairmen and secretaries of Kogi East Peoples Democratic Party (PDP) will be smiling home with their cars courtesy of a deal being worked out for them to endorse Senator Attai Aidoko, a senatorial aspirant under the PDP as the sole candidate. Mr Aidoko, who is currently representing the senatorial district in the red chamber, became desperate after his concerted efforts and pleas at the national secretariat to get an automatic ticket hit the rocks last night. The election of the party’s senatorial candidate is expected to be by a

Image
04-January-2022

Lafarge, Others Join Meristem Value Index as FBN, Honeywell Exit

By Dipo Olowookere Nigerian Exchange (NGX) Limited has rejigged its market indices, with some companies leaving and joining, according to a statement made available to Business Post. It was stated that the review became effective from Tuesday. January 4, 2022, and the affected indices are the NGX 30, NGX Lotus Islamic, NGX Pension, Corporate Governance Index, Afrinvest Bank Value Index, Afrinvest Dividend Yield Index, Meristem Growth Index, Meristem Value Index; and the five sectoral indices of the exchange; NGX Banking, NGX Insurance, NGX Industrial, NGX Consumer Goods and NGX Oil & Gas. For the Meristem Value Index, Cadbury Nigeria, Eterna,

Ad
Ad
Recent Stories
Image
01-March-2024

Unlisted Securities Remain in Negative Territory by 1.36%

By Adedapo Adesanya Correction at the NASD Over-the-Counter (OTC) Securities Exchange continued as it recorded a 1.36 per cent loss on Thursday, February 29. The bourse lost N21.34 million of its value during the trading session to close at N1.542 trillion compared with the preceding day’s N1.564 trillion and the NASD Unlisted Security Index (NSI) went down by 15.74 points to end the day at 1,138.05 points versus Wednesday’s 1,153.79 points. Yesterday’s decline was influenced by Aradel Holdings Plc, which further suffered further profit-taking, causing its price to drop N98.25 to close at N2,401.75 per share versus the preceding session’s

Image
01-March-2024

Naira Firms to N1,595/$1 at NAFEX, Weakens to N1,500/$1 at Black Market

By Adedapo Adesanya The Naira ended a tumultuous February as it recorded a price appreciation f 0.09 per cent or N14.40 against the US Dollar on Thursday, February 29, in the Nigerian Autonomous Foreign Exchange Market (NAFEM). Data obtained from the FMDQ Securities Exchange showed that the value of the local currency closed at N1,595.11/$1 during the session compared with the preceding day’s N1,609.51/$1. Also, the Nigerian currency improved its value against the Pound Sterling in the official market yesterday by N20.34 to close at N2,046.19/£1 compared with the preceding session’s N2,066.53/£1 and strengthened against the Euro by N16.5 to

Image
01-March-2024

Oil Down as US Inflation Signals Weak Crude Demand

By Adedapo Adesanya  Oil was down on Thursday as inflation data in the United States implied a softening of the world’s biggest economy that could weaken crude demand. Brent futures went down by 6 cents to $83.62 a barrel and the US West Texas Intermediate (WTI) futures depreciated by 28 cents to $78.26 a barrel. The US Federal Reserve’s preferred inflation gauge, the US Personal Consumption Expenditures (PCE) index, showed January inflation in line with economists’ expectations. The index rose 0.3 per cent last month, the Commerce Department’s Bureau of Economic Analysis said. Data for December was revised lower to

Image
01-March-2024

Local Stock Market Rebounds, Closes Last Day of February 0.68% Higher

By Dipo Olowookere The last trading session of February 2024 at the Nigerian Exchange (NGX) Limited ended on a positive note as it rebounded by 0.68 per cent after the interest rate hike scare. The growth posted on Thursday was triggered by bargain-hunting in financial stocks, especially those selling at cheaper prices after the sell-offs in the past few sessions. However, profit-taking persisted in the other sectors of the bourse, with the energy, and consumer goods indices closing lower by 0.33 per cent, and 0.18 per cent, respectively. Business Post reports that the banking space rose by 6.14 per cent,

Image
29-February-2024

EnjoyCorp Buys Heineken’s Stake in Champion Breweries

By Adedapo Adesanya EnjoyCorp Limited, a holding company established for food, beverage and hospitality brands, has reached an agreement with Heineken B.V., to acquire its entire shareholding in The Raysun Nigeria Company Limited. The firm holds an 86.5 per cent stake in Champion Breweries Plc, a leading regional brewer listed on the Nigerian Exchange (NGX) Limited. The proposed transaction is subject to obtaining requisite regulatory approvals and the parties expect to close the transaction in the second quarter of this year (Q2 2024). EnjoyCorp intends to keep Champion Breweries Plc listed on the NGX. Heineken will continue to support Champion

Image
29-February-2024

Nigerian Navy Impounds Stolen N8.6bn Crude, Others in Three Weeks

By Adedapo Adesanya The Nigerian Navy, through the Troops of Operation Delta Sanity, has deactivated 41 illegal refining sites and impounded stolen crude oil and other products worth N8.6 billion in three weeks. The Director of Naval Information, Mr Adedotun Ayo-Vaughan, a Rear Admiral, made the disclosure in a statement, saying that various Nigerian Navy platforms were deployed for the operation meant to combat oil theft and illegal oil bunkering plaguing Nigeria’s maritime environment. He said that between February 5 and February 22, a total of 51 wooden boats and three fibre ones were apprehended, while 104 illegal refining ovens,

Image
29-February-2024

The Future of Blockchain and Cryptocurrency in the Online Gambling Industry

The online gambling industry, characterized by its rapid evolution and global reach, has established itself as a dynamic and lucrative sector. With millions of enthusiasts partaking in diverse gambling activities, ranging from casino games and sports betting to poker and more, it has transcended geographical boundaries and time zones. The allure of convenience, accessibility, and the thrill of gaming from the comfort of one’s own space has fueled its relentless growth. As technology continues to redefine the boundaries of the digital world, the online gambling sector finds itself at the forefront of innovation, poised for further expansion and transformation. The

Image
29-February-2024

We Need Investment in Mass Transit After 50% Drop in Petrol Imports—Tinubu

By Aduragbemi Omiyale President Bola Tinubu has disclosed that Nigeria has reduced the importation of premium motor spirit (PMS), commonly known as petrol, by 50 per cent since his administration announced an end to fuel subsidy last year. On Monday 29, 2023, during his inaugural speech in Abuja, Mr Tinubu declared that “fuel subsidy is gone” and almost immediately, the price of the product went up across the country. Before his announcement, a litre of petrol was selling at N165 but at the moment, it sells between N568 per litre and N650 per litre, depending on the location and fuel

Image
29-February-2024

Navigating the Complex World of Investing: What Novices Need to Know

Have you finally decided to take the leap into the exciting arena of investing? Not only is this an excellent way to secure a lucrative nest egg for the future, but many have begun to use these opportunities as a springboard for their businesses. However, appreciating the intricacies of online trading is no easy task. A great deal of preparation will be required and mistakes can occur on occasion. This is why knowing where to begin is one of the best ways to establish strong foundations. Let us therefore cut through a fair amount of “fluff” and examine a handful

Image
29-February-2024

No Going Back on Reforms—Tinubu

By Adedapo Adesanya President Bola Tinubu has said there is no going back on the reforms embarked upon by his government that have led to the hike of essential goods and services in the country. He made this known as he inaugurated the Red Line Rail Project in Lagos on Thursday. The project, an intra-state rail service, is aimed at improving transportation within the city and spans 37 kilometres. Speaking while inaugurating the project, the President reiterated his administration’s commitment to improving the nation’s infrastructural development. He said, “But this revolution that has started, this reform that is ongoing, we