CBN Ignores DMO, Bars Retail Investors from Treasury Bills

Image

By Dipo Olowookere

The Central Bank of Nigeria (CBN) has reportedly directed banks not to honour bids from retail investors in the country for treasury bills from Friday, November 29, 2019.

This directive is coming despite assurances from the Debt Management Office (DMO) that local investors, both individuals and institutional, would be allowed to buy any of the federal government debt securities.

Some days ago, the apex bank stopped the sale of its OMO bills to local investors, but allowed offshore investors to partake in the purchase of the liquidity management tool.

In the midst of the confusion created by that development, the debt office released a statement, clarifying that local traders were not restricted from buying its debt instruments, which include T-bills, bonds and others.

“Following the circular to all banks referenced FMD/DIR/GEN/OGC/14/009 dated October 23, 2019 issued by the Central Bank of Nigeria (CBN), it has become necessary for the Debt Management Office (DMO) to issue this notice on eligible investors for securities issued by the Federal Government of Nigeria (FGN).

“The general public is hereby advised that Open Market Operation Bills (OMO Bills) are securities issued by the CBN for monetary management purposes. Thus, the circular in question which excluded some investor categories from investing in OMO Bills, is limited to OMO Bills and does not apply to securities issued by the FGN.

“The DMO wishes to assure the general public that there is no restriction on persons who can invest in FGN securities. Thus, all investors, local and foreign, including individuals, co-operative societies, social clubs, town associations, local corporates, fund/asset managers, pension funds, insurance companies, banks and others are eligible to invest in FGN Securities.

“The DMO offers a wide range of FGN securities in various tenors to meet the needs of its growing and diverse investor base.

“The securities whose tenors currently range from 91 days to 30 years are: Nigerian Treasury Bills (NTB), Federal Government of Nigeria Bonds (FGN Bonds), Federal Government of Nigeria Savings Bond (FGNSB), Sukuk and Green Bonds,” the debt office had clarified in a notice issued on October 29, 2019.

But in a report published today (Thursday) by Punch, it was reported that the CBN has ordered banks and other financial institutions to stop the sale of treasury bills to individuals and small firms with effect from November 29.

Quoting a bank official, the report said, “Operators are trying to see if the November 29 deadline given for the implementation by the CBN could be extended, so as to create enough awareness. But there is no move for the reversal of the directive.”

An operator said the inaccessibility of treasury bills might lead to an increase in savings deposits of the banks, attracting interest rates below what the treasury bills offered.

Further quoting another source from the CBN, it was noted that this move was to stop the mop-up of funds from the system through the treasury bills.

“Many people with huge cash prefer to keep their funds idle in treasury bills instead of investing the funds. Some people collect huge severance package, have huge funds but they have refused to invest the money.

“We want these funds to be useful in the economy so that they will be available in the banks and can be invested to create more jobs in the country,” the source reportedly said.

Business Post reports that the next treasury bills sale at the primary market is slated for next Wednesday, November 13, 2019 and going by this new development, retails investors would still be eligible to partake in it as well as the last exercise for this month, which comes up on Wednesday, November 27, 2019.

Share
Related Stories
Image
23-February-2024

Naira Falls at NAFEX, Parallel Market as Govt Battles Speculators

By Adedapo Adesanya Despite the unconventional approaches to ease the free fall of the Naira, its value weakened against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, February 22 by 1.9 per cent or N28.73 to close at N1,571.31/$1 compared with the N1,542.58/$1 it was transacted in the midweek session. The domestic currency suffered the loss despite the supply of foreign exchange (FX) improving by 11.7 per cent or $20.11 million to $192.25 million from Wednesday’s $172.14 million. However, the local currency appreciated against the Pound Sterling in the official market yesterday by N142.83

Image
23-February-2024

Oil Prices Up as Houthis Intensify Attacks in Trading Sea Routes

By Adedapo Adesanya  Oil prices went up on Thursday as Iran-aligned Houthis stepped up attacks in the Red Sea near Yemen while the market faced a large build in crude inventories in the world’s largest producer, the United States. During the session, Brent crude futures increased by 66 cents to $83.69 per barrel and the US West Texas Intermediate (WTI) crude futures surged by 76 cents to $78.67 a barrel. Worries came as the Houthis said they would escalate their attacks on ships in the Red Sea and other waters, adding they have introduced “submarine weapons” to reach their goals.

Image
21-February-2024

FG Completes $70m Yearly Concessionaire of Zungeru Plant to Penstock

By Adedapo Adesanya The federal government has completed the transfer of the operations of the Zungeru Hydroelectric Power Plant (ZHPP) to a concessionaire, Penstock Limited, in a move that will see the country earn $70 million yearly from the deal. The Vice President, Mr Kashim Shettima, confirmed this during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja on Tuesday. A concession is a kind of partnership between the public sector and often private companies that have shown its added value in a specific area, for example developing infrastructure. The

Image
22-February-2024

Lagos Plans Daily Free Meal for Residents, Markets for Cheap Food Items

By Modupe Gbadeyanka About 1,500 residents of Lagos State will have access to one free meal per day to cushion the effect of the economic hardship in the country, Governor Babajide Sanwo-Olu has declared. Mr Sanwo-Olu, while answering questions from journalists during a media chat on Thursday, said his administration would establish at least 42 Sunday Markets across the metropolis for cheap food items, though the commencement of this initiative is yet to be revealed. There has been a pocket of demonstrations across the country over the rising hunger in Nigeria as a result of high inflation and the devaluation

More Stories
Image
29-August-2022

Neimeth Extends N3.67bn Rights Issue by 15 Days

By Dipo Olowookere The rights issue of Neimeth International Pharmaceuticals Plc aimed to raise about N3.67 billion from the capital market has now been extended by 15 days. The extension was approved by the Securities and Exchange Commission (SEC) after the healthcare organisation submitted a request to that effect. Neimeth said it needs the money to build a new multi-products facility in Anambra State that would meet the current standards of Good Manufacturing Practice of the World Health Organisation (WHO). The company is selling a total of 2,373,947,500 units of its stocks at a unit price of N1.55 and the

Image
21-September-2022

Improved Investor Confidence Lifts NGX Index by 0.01%

By Dipo Olowookere For the first time in seven trading sessions, the Nigerian Exchange (NGX) Limited closed on a positive note on Tuesday after it appreciated by 0.01 per cent. Improved investor confidence inspired by renewed bargain hunting raised the All-Share Index (ASI) of the bourse by 5.10 points to 49,445.31 points from 49,440.21 points, while the market capitalisation rose by N3 billion to close at N26.670 trillion in contrast to the preceding day’s N26.667 trillion. Buying pressure was witnessed in the financial stocks, with the banking index growing by 0.22 per cent and the insurance counter expanding by 0.15

Image
22-May-2020

Mobil, BUA Cement Moderate NSE Year-to-Date Loss to 7.76%

By Dipo Olowookere The year-to-date loss of the Nigerian Stock Exchange (NSE) on Thursday moderated to 7.76 percent on the back of the gains posted by Mobil Oil Nigeria, BUA Cement and others. The two stocks and 27 others sustained the rally by 1.25 percent. While Mobil appreciated by N17.60 to settle at N194.50 per share, BUA Cement gained N3.20 to sell at N35.60 per unit. In addition, Unilever Nigeria grew by N1.40 to trade at N16.45 per share, Guinness Nigeria appreciated by 55 kobo to trade at N17.55 per unit, while Zenith Bank increased by 50 kobo to settle

Image
18-September-2018

Stanbic IBTC Urges Students to Imbibe Savings Culture

By Dipo Olowookere No fewer than 600 students of Covenant University, Ota, Ogun State attended a financial literacy forum was organised by Stanbic IBTC Bank in partnership with Creative Youth Community Development Initiative, a Wole Soyinka Foundation. The event, which took place on Wednesday, September 12, 2018, fitted perfectly into the financial literacy initiative of the Central Bank of Nigeria (CBN) designed to encourage children and young adults in schools to understand quite early in life the rudiments of money and its uses. This is part of efforts to impact financial knowledge on Nigerian youths. During the programme, participants were

Image
31-December-2019

Shares on NASD Exchange Record no Price Movement

By Adedapo Adesanya The prices of stocks listed on the NASD Over the Counter (OTC) Securities Exchange posted no movement at the close of transactions on Monday, December 30, 2019. This occurred as the major indicators of the unlisted securities market in Nigeria; the market capitalisation and the NASD Unlisted Securities Index (NSI) closed flat after the day’s trading. Business Post reports that on the first trading day of the new week, the market capitalisation remained unchanged at N501.14 billion, while the index stayed at 697.24 points. The market was relatively quiet during the day as investors rebalance their portfolio

Image
21-October-2016

Over 200 Migrants Rescued Off Libyan Coast

By Dipo Olowookere Save the Children’s search and rescue ship, the Vos Hestia, is returning to Italy with more than 200 refugees and migrants rescued in two separate operations off the North African coast. Sadly, among them are the bodies of five people who perished before rescuers could reach the first boat in distress. “We received a call to assist in the rescue of a wooden boat in distress,” said Ms Gillian Moyes, Save the Children’s team leader on the Vos Hestia. “When we arrived on the scene, five people had already died. The bodies and the survivors were transferred

Image
20-November-2018

Money Market Rates Inch Higher as T-Bills Trade Flat

By Modupe Gbadeyanka On Monday, the money market rates from to double digits at the close of business as market participants made provisions for the forex wholesale intervention by the Central Bank of Nigeria (CBN). Specifically, the Open Buy Back (OBB) rate moved from 6.67 percent to 10.17 percent yesterday, while the Overnight (OVN) rate jumped to 10.83 percent from 7.33 percent. The rise in these market rates followed a drop in system liquidity levels during trading yesterday. “We expect rates to remain at these levels after the break, with some respite expected later via OMO maturities,” analysts at Zedcrest

Image
27-September-2016

The World’s Top 10 Economies

The inequitable distribution of income is present at the global level where the nominal gross domestic product (GDP) of the top 10 economies adds up to over 66% of the world’s economy, and the top 15 economies add up to over 75%. The remaining 172 countries constitute only 25% of the world’s economy. Here’s the list of the top 10 economies based on the criteria of GDP, current prices (US dollars) which is simply known as nominal GDP. The rankings differ if the same list is prepared using the GDP based on purchasing-power-parity (PPP). As a general rule, developed countries

Ad
Ad
Recent Stories
Image
23-February-2024

Applications Open for AIG Public Leaders Programme

By Aduragbemi Omiyale Eligible African public servants have been urged to submit their applications for the AIG Public Leaders Programme Cohort 4 before Tuesday, April 30, 2024. This call for entries was made by Aig-Imoukhuede Foundation and the applications are to be filed through www.aigimoukhuedefoundation.org/leaders-programme, a statement disclosed. Applicants must be working in the public sector in Africa, with a minimum of seven years of active service, at grade levels 12-17, and aged between 35-50 years at the time of application. The AIG Public Leaders Programme is tailored for senior public leaders and delivered in partnership with the Blavatnik School

Image
23-February-2024

Okpe Leaders Want Completion of Sapele Polytechnic, University in Orerokpe

By Henry Ovie The Delta State Governor, Mr Sheriff Oborevwori, has been tasked to make efforts to complete the Sapele Polytechnic, which was started by the administration of Mr Emmanuel Uduaghan. This call was made by some prominent leaders from the Okpe kingdom, who said the completion of the school and the establishment of a university in Orerokpe would assuage, “to some extent,” the people of the areas, who they said have been “historically neglected.” On Thursday, the leaders held a crucial meeting of the National Executive Council (NEC) of the Okpe Union worldwide. They commended Mr Oborevwori for responding

Image
23-February-2024

HabariPay Take-on-Squad Hackathon 1.0 Produces Three Winners

By Modupe Gbadeyanka Three winners have emerged in the inaugural Take-on-Squad Hackathon 1.0 coding event organised by HabariPay Limited after intense collaboration, innovation, and problem-solving at the GTCO Training Complex, Tayo’s Plaza, Abeokuta, Ogun State, from January 18 to 20, 2024. Business Post reports that the three winning teams are Team Within, Team X, and Team Storepoint. Each team was selected based on real-world applicability, technical creativity, user experience, and teamwork. Team Storepoint, represented by Haruna Faruk and Ladipo Samuel from the University of Lagos, secured third position and a prize of N1 million. Their winning solution, Storepoint, facilitates quick

Image
23-February-2024

Group Mourns OAU’s Veterinary Technologist Olabode Olawuyi

By Modupe Gbadeyanka The Nigeria Biodiversity Conservation Alliance (NBCA) has expressed sadness over the death of the Veterinary Technologist of the Obafemi Awolowo University, Ile-Ife, Osun State, Mr Olabode Olawuyi, a few days ago. Mr Olawuyi was fatally mauled by a lion at the Zoological Garden of the institution. In a statement signed by the National President of the Nigerian Association of Zoological Gardens and Wildlife Parks (NAZAP), Mr Dipo Bali, the group said the deceased was a man who was dedicated to his job and the organisations he belonged to in his lifetime. Mr Olawuyi, apart from being a

Image
23-February-2024

NUPENG Seeks EFCC Support to Tackle Illegal Oil Bunkering

By Adedapo Adesanya Following its fight against foreign exchange speculators and hoarders, the National Union of Petroleum and Natural Gas Workers (NUPENG) has sought the collaboration of the Economic and Financial Crimes Commission (EFCC) in the fight against illegal oil bunkering in the country. The collaboration was sought when the National President of NUPENG, Mr Williams Akporeha, led members of his executive council to the corporate headquarters of the anti-graft agency on a courtesy visit. Mr Akporeha mentioned the challenges involved in the movement of petroleum products across the country and appealed to the EFCC to always come to the

Image
23-February-2024

SON Launches Facility to Test Quality of Generators, Transformers

By Adedapo Adesanya The Standards Organisation of Nigeria (SON) has inaugurated a facility to test generators and power transformers sold in the Nigerian electricity market. Speaking at the inauguration of SON Mobile Generators Testing Laboratory and Mobile Transformer Equipment on Thursday, the Director-General of the agency, Mr Ifeanyi Okeke, said it was no longer business as usual for assemblers and importers of these products. He said it was important for these products to meet the quality benchmarks, stressing that buyers must have value for their money. According to him, all information supplied on generators and transformers will be verified and

Image
23-February-2024

Port Harcourt Refinery to be Fully Operational Soon—FG

By Adedapo Adesanya  The federal government has disclosed that the Port Harcourt Refinery should become operational very soon as it has attained 80 per cent completion. The Minister of State for Labour and Employment, Mrs Nkeiruka Onyejeocha, during a tour of the facility, disclosed that the refinery would produce two million litres of Premium Motor Spirit, otherwise known as petrol, and 2.2 million litres of diesel per day upon resuming operations. In a statement by the Director of Press and Public Relations in the Federal Ministry, Mr Olajide Oshundun, it was further stated that the old plant should produce 54,000

Image
23-February-2024

Nigeria Moves to Crash Cooking Gas Price

 By Adedapo Adesanya Nigeria is considering taking a major step aimed at crashing the price of Liquefied Petroleum Gas (LPG), also known as cooking gas, to ease the sufferings of its citizens. The Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo, speaking at the opening of its Internal Stakeholders’ Workshop on Thursday in Abuja, disclosed that the government would most likely ban the exportation of the commodity to keep the price lower than its current level. Currently, prices range between N1,300 per kg to N1,400 per kg. “All LPG produced within the country will have to be domesticated and

Image
23-February-2024

How MultiChoice Empowers Nigerian Youth Through Creative Investment

As global populations age, Africa remains a bastion of youthful promise, with around 70% of the continent’s population below the age of 30. This youthful demographic can be an asset – but only if it is developed, by empowering young people through training, and by giving them a stake in the growth of their countries’ economies. Helping to develop young people’s abilities and expanding the pool of skills is also in the interests of industry and big business. Over the years, the Federal government of Nigeria embarked on youth empowerment initiatives to harness the skills and energy of Nigerian youths

Image
23-February-2024

Eva Adelaja Girls’ At 60: Old Students Donate to Orphanage, Thrill Students

By Adedapo Adesanya It has been an eventful celebration at the ongoing 6oth Anniversary of Eva Adelaja Girls’ Secondary Grammar School, Bariga, Lagos. The event was planned to celebrate the institution established by the late educator, Mrs Evangeline Adebayo Adelaja, in 1964. Particular resplendent in this celebration are the alumni of the school, the Eva Adelaja Girls’ Secondary Grammar School Old Girls’ Association, which have been on the ground to ensure that the planned activities go smoothly. The event, which kicked off with the Praise Day and Community Hymn Singing held at Chapel of Christ the Light in Alausa, Ikeja,