CBN Cuts One-Year Treasury Bill Rate to 2.80% from 3.05%

Image

By Dipo Olowookere

The stop rate for the one-year treasury bills was on Wednesday reduced to 2.80 per cent from 3.05 per cent during the primary market auction (PMA).

The strong appetite for the tenor contributed to the reduction in the rate yesterday by the Central Bank of Nigeria (CBN), which conducted the exercise on behalf of the Nigerian government.

Business Post reports that N86.4 billion worth of the 12-month maturity was auctioned at the session but the subscription level was exceedingly high, which made the apex bank to make the significant rate cut.

According to details of the exercise, subscribers staked N317.3 billion on the bill, indicating a subscription level of 367.3 per cent but only N106.4 billion worth of the maturity was allotted to investors after the auction.

The one-year T-bills was not the only tenor offered for sale yesterday by the central bank as there were the two other usual maturities; 91-day and 182-day bills.

The CBN offered for sale N10.0 billion worth of the three-month bill and N17.6 billion worth of the six-month bill. However, these two tenors did not receive the huge interest the 12-month instrument had.

From results of the exercise, only N11.8 billion was staked on the 91-day bill, while the 182-day bill got subscriptions valued at N19.2 billion.

Despite the slightly low subscription rate for these two maturities, the central bank still sliced their stop rates during the session.

While the CBN allotted the exact amount it offered for sale for the 91-day and 182-day instruments, it cut the rates to 1.08 per cent and 1.49 per cent respectively.

At the previous PMA, the stop rate of the three-month instrument cleared at 1.09 per cent, while that of the six-month bill cleared at 1.50 per cent.

Recall that last month, the CBN, after its Monetary Policy Committee (MPC) meeting, announced a cut in the benchmark interest rate in the country, the Monetary Policy Rate (MPR), to 11.50 per cent from 12.50 per cent.

This subsequently reduced the annual interest rate on savings deposit in the country to 1.15 per cent at a time when the inflation rate (for August 2020) jumped by 13.22 per cent, according to the National Bureau of Statistics (NBS) and recession is just at the doorstep knocking after the gross domestic product (GDP) for the second quarter of the year slipped by 6.1 per cent.

Share
Related Stories
Image
03-March-2024

Dangote Cement’s African Subsidiaries Contribute 41.2% to FY 2023 Sales

By Dipo Olowookere Dangote Cement Plc has revealed that sales from its factories outside Nigeria, its base, improved in the 2023 fiscal year by 12.7 per cent, contributing about 41.2 per cent to its total volume for the period under review, with its Nigerian operations accounting for the rest. In its audited financial statements for the year ended December 31, 2023, filed to the Nigerian Exchange (NGX) Limited, the cement maker said revenue generated from its pan-African operations increased by a record 123.2 percent to N925.9 billion, while EBITDA surged by over four-fold to N263.7 billion. Business Post reports that

Image
03-March-2024

Alake Lures Qatari Investors With Nigeria’s Lithium Reserves

By Adedapo Adesanya Nigeria has called on Qatari investors to tap into the country’s Lithium, with comprehensive data on its reserves, available at the Nigerian Geological Survey Agency, according to the Minister of Solid Minerals Development, Mr Dele Alake. The Minister disclosed this in Doha, Qatar, on Saturday, at a meeting with Qatari businessmen on the sidelines of the visit of President Bola Tinubu to the Arab country. He is part of the delegation that accompanied President Tinubu on the visit to Doha, Qatar to strengthen cooperation between the nations in several sectors, including economic development. In a statement by

Image
01-March-2024

Transcorp Power to List Shares on Nigerian Exchange March 4

By Dipo Olowookere Another power generating company will join Geregu Power Plc on the Nigerian Exchange (NGX) Limited, Business Post has gathered. The new firm joining the nation’s flagship stock exchange is Transcorp Power Plc, a company owned by businessman and Chairman of UBA Plc, Mr Tony Elumelu. Information reaching this newspaper is that Transcorp Power is listing its shares on the NGX by introduction on Monday, March 4, 2024. The organisation is taking to the stock market about 7,500,000,000 units of its equities at N240.00 each, increasing the total value of the local equity market by N1.8 trillion. Its

Image
01-March-2024

CBN Revokes Operational Licences of 4,173 BDC Operators [FULL LIST]

By Aduragbemi Omiyale The operational licences of 4,173 Bureaux De Change (BDC) operators have been revoked by the Central Bank of Nigeria (CBN). A statement signed by the acting Director of the Corporate Communications Department of the apex bank, Mrs Hakama Sidi Ali, on Friday disclosed that the action was taken because the affected BDCs did not adhere to regulatory provisions. The central bank said the BDCs did not pay all necessary fees, including licence renewal, within the stipulated period in line with guidelines. It also said they failed to give account of returns in line with the guidelines, and

More Stories
Image
23-February-2022

10 Essential Office Equipment You Should Have in Your Office

By Esther Adeniji One aspect of branding that many SMEs in Nigeria often overlook is the internal appearance of their office. Your business needs to be conducted in a conducive environment. A conducive office environment has the necessary equipment put in place for the day to day business operations. There is essential office equipment in your office as a Nigerian business owner. If you plan on opening a new office for your startup in Nigeria, you can check out these 10 essential office equipment. 10 essential office equipment you should have in your office Photocopiers When it comes to keeping

Image
07-July-2020

Buhari Suspends Magu as Acting EFCC Chairman

By Adedapo Adesanya President Muhammadu Buhari has suspended the acting chairman of the Economic and Financial Crimes Commission (EFCC), Mr Ibrahim Magu. The anti-graft agency boss had reportedly been arrested on Monday by agents of the Department of State Security (DSS) and was whisked away to face the Presidential Advisory Committee Against Corruption (PACAC) over allegations of corruption, a panel led Mr Ayo Salami, retired president of the appeal court. Business Post had reported on Monday that Mr Magu was arrested at the Wuse II office of the EFCC in order to prevent him from damaging documents meant for the

Image
22-November-2019

Naira Depreciates to N362.85/$ at I&E Segment Thursday

By Adedapo Adesanya  Transactions at the Investors and Exporters (I&E) segment of the foreign exchange (forex) market ended negative on Thursday, November 21, 2019 with the Naira depreciating against the Dollar. Data obtained from FMDQ showed that the local currency lost 33 Kobo of its value against the American currency at the investors window at the close of business yesterday. Business Post reports that when market activities were wrapped up at the I&E segment of the FX market on Thursday, the domestic currency ended at N362.85/$1 in contrast to N362.52/$ on Wednesday. The local currency had appreciated to N362.52 per

Image
04-November-2016

How To Identify Fake Naira Notes

Con men cannot produce a real Naira note. That’s a fact. Even if they can, they can’t produce real note without bloating overhead cost. In view of this, there are always obvious differences between a real Naira note and its counterfeit. These differences are not hidden; they are there only if you look well enough, even for an untrained eye. You should also avail yourself of the fact that the use of counterfeits is punishable under the Nigerian constitution whether you’re aware or note because “ignorance is not an excuse in the court of law.” Taking advantage of the marked

Image
10-May-2017

Global Economic Uncertainty Threatens FDI Flows to Africa

By Modupe Gbadeyanka The flow of Foreign Direct Investment (FDI) into Africa is being threatened by global economic uncertainty and if nothing is done promptly about this, the continent may continue to suffer economic hardship. For African governments, part of what is at stake are much needed foreign direct investments and access to affordable financing necessary to spur development and, specifically, to close the estimated $900 billion infrastructure gap. Equally, the private sector stands to lose billions of Dollars in lost opportunities if the requirements for a favourable investment environment are not adequately addressed. To address this problem, a roundtable

Image
22-March-2022

Adesina to Visit South Africa for Trade, Investment Talks

By Adedapo Adesanya President of the African Development Bank (AfDB), Mr Akinwumi Adesina, will pay a three-day official visit to South Africa to discuss trade and investment in Africa’s second-largest economy. He will meet the South African President, Mr Cyril Ramaphosa, and various government and industry leaders to discuss important global and regional concerns which include the bank’s development agenda and the country’s potential for increased trade and investment with the rest of Africa. On Thursday, March 24, Mr Adesina will make a speech at the opening ceremony of the South Africa Investment Forum. The South Africa Investment Forum convenes

Image
20-November-2018

Wike Tasks Corporate Organisations to Step up CSR

By Dipo Olowookere Corporate organisations have been urged to step-up their corporate social responsibility (CSR) projects for the benefit of the people. This call was made by the Rivers State Governor, Mr Nyesom Ezenwo Wike, during a courtesy visit by MTN Foundation at Government House, Port Harcourt last Thursday. The Governor said that small scale projects by high-profile corporate organisations were a disservice to the people, calling on corporate organisations to liaise with the state government for the initiation and execution of projects. He commended MTN Foundation for introducing Market Doctor, which will assist traders to access quality medicare. He

Image
27-February-2017

FG Plans $20b Ogidigben Gas Industrial Project

By Modupe Gbadeyanka In what is called a ‘Gas Revolution,’ and following the renewed interactive engagements of the Federal Government with oil-producing communities in several states in the Niger Delta region, a plan to put in place a gas industrial park that is valued at about $20B through a Public-Private Partnership model is now in process. Tagged the Gas Revolution Industrial Park (GRIP), Ogidigben, and envisaged to be a regional hub for all gas-based industries, the project will cover 2700 hectares with fertilizer, methanol, petrochemicals, & aluminium plants located in the park that has already been designated as a Tax

Ad
Ad
Recent Stories
Image
04-March-2024

UK Announces £37.3m to Boost Livelihoods in Nigeria, Others

By Adedapo Adesanya The United Kingdom has announced new funding for the Mobile for Development Programme to help more people access mobile and digital technologies to find new opportunities and boost their livelihoods in Nigeria and other developing countries. UK’s Minister for Development and Africa, Mr Andrew Mitchell MP, during a speech at Mobile World Congress last week, announced that the UK is providing £37.3 million of new support for the Mobile for Development Programme. The new UK funding for innovative mobile phone technology will help change lives in developing countries around the world by harnessing AI technology to provide

Image
04-March-2024

Newly-Listed Transcorp Power Targets N500bn Revenue by 2031

By Adedapo Adesanya The latest company to join the Nigerian Exchange (NGX) Limited, Transcorp Power Plc, has announced a revenue target of N500 billion by 2031, tapping opportunities in the capital market and sustainable energy. This was disclosed by the Managing Director of the firm, Mr Peter Ikenga, during the Facts Behind the Listing held at bourse on Monday. The firm, owned by businessman and Chairman of UBA Plc, Mr Tony Elumelu, listed its stocks on the Main Board of the nation’s flagship exchange by introduction. It listed 7,500,000,000 ordinary shares of 50 Kobo each at N240.00 per share. Speaking

Image
04-March-2024

DisCos Must Promptly Respond to Customers’ Complaints—FCCPC

By Aduragbemi Omiyale Electricity distribution companies (DisCos) in the country have been charged to respond to customers’ complaints quickly for better service delivery. This task was given to the energy firms by the Federal Competition and Consumer Protection Commission (FCCPC), which said the companies must design a quick response mechanism to address issues from their customers. Speaking last Saturday at a four-day one-stop-shop for addressing billing, metering, transformer, connection, disconnection, customer service and other electricity consumer issues in Ikeja Electric coverage areas, the acting executive chairman of FCCPC, Mr Adamu Abdullahi, said the highest number of complaints received by the

Image
04-March-2024

Omokungbe Wants Implementation of Initiatives on Women’s Entrepreneurship

By Aduragbemi Omiyale A former Rector of Yaba College of Technology (YabaTech), Lagos, Mr Obafemi Omokungbe, has called for the implementation of programmes and initiatives designed to promote women’s entrepreneurship in Africa. Speaking at the just-concluded 10th anniversary of the African Women Foundation for Nation Building (WINBAFRICA) in Lagos, Mr Omokungbe, a fellow of the Nigerian Society of Engineers (NSE), also appealed to African countries to renew their commitment to women’s empowerment, saying it is a crucial step towards nation-building. According to him, the journey toward women’s empowerment in Africa involves a comprehensive approach that spans various sectors, including education,

Image
04-March-2024

NGX Group Declares 75 Kobo Final Dividend Amid 57.4% Surge in FY’23 Earnings

By Aduragbemi Omiyale A final dividend of N1.5 billion, amounting to 75 Kobo per share has been declared by the board of the Nigerian Exchange (NGX) Group Plc for the 2023 financial year. This brings to N1 the total dividend to be paid by the company after paying 25 Kobo (N495.5 million) as interim dividend at mid-year. In its audited financial statements for the year ended December 31, 2023, the NGX Group said its gross earnings increased by 57.4 per cent to N11.8 billion in FY 2023 from N7.5 billion in FY 2022 because its performances in core revenue and

Image
04-March-2024

Red Line Rail: Labour Party Demands Value for Money

By Aduragbemi Omiyale The Lagos State chapter of the Labour Party has tasked Governor Babajide Sanwo-Olu to ensure the recently commissioned Red Line Rail does not turn out to be another failure due to poor maintenance culture. In a statement by its Publicity Secretary, Mrs Olubunmi Odesanya, the opposition party appealed to the state government to ensure its sustainability. While greeting residents of the metropolis on the project, which was commissioned last Tuesday by President Bola Tinubu, the Labour Party faulted the timing of its completion, saying the ruling All Progressives Congress (APC) ought to have put the initiative in

Image
04-March-2024

Access Bank to Give 700,000 MSMEs Access to N50bn Via YouThrive

By Modupe Gbadeyanka An initiative known as YouThrive designed to give entrepreneurs in the micro, small and medium enterprises (MSMEs) access to a N50 billion credit facility has been introduced by Access Bank Plc. The lender disclosed at a media briefing in Lagos that about 700,000 MSMEs would benefit from this programme, which is open to business owners between the ages of 21 and 40 years. YouThrive is a transformative initiative designed by Access Bank to empower, uplift, and accelerate the next generation of MSMEs. According to the Deputy Managing Director of Access Bank, Mr Victor Etuokwu, who addressed journalists

Image
04-March-2024

Peter Obi Laments Nigeria’s Dependence on War-Torn Ukraine for Food

By Adedapo Adesanya The presidential candidate of the Labour Party in the 2023 polls, Mr Peter Obi, has lamented Nigeria’s dependence on Ukraine, a country ravaged by war, for food aid. Mr Obi, in a statement on Monday, expressed dissatisfaction at the current economic realities and recounted times when the Nigerian economy was faring better than that of Ukraine in 2015. “Ukraine cultivates over 60 per cent of its arable land, whereas Nigeria has over 60 per cent uncultivated arable land. “Despite the conflict, Ukraine feeds itself, and exports agricultural products worth over $25 billion which is about the same

Image
04-March-2024

AfDb Injects $134m Into Rice, Maize, Cassava, Soybean Production in Nigeria

By Adedapo Adesanya The African Development Bank (AfDB) is supporting Nigeria in the cultivation of rice, maize, cassava and soybean to boost food production with the provision of $134 million to achieve this. The president of the multilateral lender, Mr Akinwunmi Adesina, said on Saturday after visiting the Centre for Dryland Agriculture (CDA) at Bayero University, Kano, that the bank would support Nigeria to cultivate 300,000 hectares each of rice and maize, 150,000 hectares of cassava and 50,000 hectares of soybeans during the 2024 planting season. The CDA is a World Bank-supported centre established to serve as a regional training

Image
04-March-2024

Salesforce Unveils Conversational AI Assistant Einstein Copilot

By Modupe Gbadeyanka A new customisable, conversational, and generative AI assistant for CRM, Einstein Copilot, has been launched by Salesforce. The system was unveiled at the Mobile World Congress in Barcelona, Spain, and it will use adequate company data to generate useful responses. The Einstein Copilot enables Salesforce customers to generate responses using their private and trusted data, while maintaining strict data governance and without requiring expensive AI model training. As a result, Einstein Copilot can answer questions, summarise content, create new content, interpret complex conversations, and dynamically automate tasks on behalf of a user, all from a single, consistent