Economy

CBN Sells 363bn OMO Bills Thursday, Cuts Stop Rates

Published

6 years ago

01/11/2019

By Dipo Olowookere

The Central Bank of Nigeria (CBN) auctioned its liquidity control tool to investors on Thursday via an Open Market Operations (OMO). The exercise was mainly for foreign portfolio investors.

During the sale of the OMO bills, the apex bank offered for sale the debt instrument worth N330 billion in three different maturities; 96 days, 187 days and 362 days.

Business Post reports that the central bank auctioned N50 billion worth of the 96-day bill, another N50 billion worth of the 187-day tenor and N230 billion worth of the 362-day bill.

However, the bank had subscriptions valued at N447.09 billion across the three tenors, while N363.09 billion was allotted at the close of the exercise, with the stop rates for the mid and long tenors slightly slashed by the apex bank, while the stop rate for the short-dated maturity was left intact.

Results of the OMO sale showed that the central bank received bids worth N16.50 billion for the 96-day instrument. This same amount was allotted to traders at 11.55 percent.

For the 187-day tenor, the bank got subscriptions valued at N11.50 billion, but only N10.50 billion was sold at 11.75 percent, lower than 11.79 percent of the previous OMO auction.

For the 362-day bill, the central bank received offers worth N419.09 billion from subscribers yesterday, but N336.09 billion worth of the instrument was allotted to investors at stop rate of 11.32 percent, lower than the 11.34 percent at the October 24 exercise.

Meanwhile, at the secondary market for treasury bills on Thursday, the market came under a buy pressure, which consequently pushed the average yields lower as a result of the decline posted by the benchmark maturities.

The six-month instrument was the most pressured as its yield went down by 0.50 percent to settle at 11.90 percent against the previous day’s 12.40 percent. The three-month tenor followed as its yield went down by 0.31 percent to 11.72 percent from 12.03 percent. Yield on the one-year bill depreciated by 0.21 percent to 14.72 percent from 12.93 percent, while yield on the three-month instrument fell by 0.03 percent to 11.48 percent from 11.51 percent.

At the close of business, the average yields of the four bills went down by 0.26 percent to finish at 12.46 percent.

Meanwhile, activities at the money market yesterday were upbeat as the average rates increased by 1.75 percent to close at 5.00 percent. This came on the back of the 1.86 percent rise posted by the Open Buy Back (OBB) rate and the 1.64 percent growth recorded by the Overnight (OVN) rate.

At the close of transactions, the OBB rate increased to 4.64 percent from 2.79 percent, while the OVN rate appreciated to 5.36 percent from 3.71 percent.

It was observed that the rates still closed in the single-digit region despite a robust system liquidity in the interbank market, which was at N500 billion positive as the apex bank mopped up N3623 billion from the market via an OMO sale.

Economy

NASD Exchange Falls 0.22% After Investors Lose N4.8bn

Published

2 hours ago

29/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange weakened by 0.22 per cent on Tuesday, April 28, with the market capitalisation down by N4.8 billion to N2.420 trillion from N2.425 trillion, and the NASD Unlisted Security Index (NSI) down by 9.01 points to 4,044.96 points from 4,053.97 points.

During the session, the price of Central Securities Clearing System (CSCS) Plc went down by N1.82 to N767.05 per share from N78.87 per share, while FrieslandCampina Wamco Nigeria Plc appreciated by N1.90 to N100.00 per unit from N98.10 per unit.

According to data, the value of trades increased by 265.7 per cent to N27.1 million from N7.4 million units, and the volume of transactions surged by 305.2 per cent to 1.3 million units from 319,831 units, while the number of deals decreased by 6.9 per cent to 27 deals from 29 deals.

Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with the sale of 3.4 billion units valued at N8.4 billion, followed by CSCS Plc with 59.8 million units exchanged for N4.0 billion, and Okitipupa Plc with 27.8 million units traded for N1.9 billion.

GNI Plc also finished as the most traded stock by volume on a year-to-date basis, with a turnover of 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units sold for N1.2 billion.

Economy

Naira Crashes to N1,380/$ at Official Market, N1,390/$1 at Black Market

Published

2 hours ago

29/04/2026

Adedapo Adesanya

By Adedapo Adesanya

Pressure is beginning to mount on the Nigerian Naira in the different segments of the foreign exchange (FX) market despite an oil windfall triggered by the Middle East crisis.

On Monday, April 27, the domestic currency further weakened against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) by N16.47 or 1.2 per cent to N1,380.71/$1 from the previous day’s N1,364.24/$1.

It was not different against the Pound Sterling in the same market window, as it lost N16.04 to trade at N1,863.76/£1 versus Monday’s closing rate of N1,847.72/£1, and against the Euro, it slipped by N12.72 to close at N1,615.01/€1 versus N1,602.29/€1.

The Naira also depreciated against the Dollar at the black market yesterday by N5 to quote at N1,390/$1 compared with the previous price of N1,385, and at the GTBank forex counter, it further crashed by N9 to settle at N1,379/$1 compared with the preceding session’s N1,370/$1.

The continued decline of the Naira comes as traders increasingly seek other safe-haven currencies amid continued global disruptions.

The benefit awash in the global market is making foreign portfolio investors stay short in Nigerian markets. Despite this, the daily FX publication released showed that interbank turnover rose to $98.829 million across 78 deals, up from $76.65 million.

Meanwhile, the cryptocurrency market remained cautious, with Bitcoin (BTC) trading at $77,216.66 despite surging oil prices and geopolitical tensions over a potential extended US naval blockade of the Strait of Hormuz.

Analysts say the supply overhang has finally dried up, and the sellers who were spooked by macro shifts or quantum fears have already exited, leaving the market much thinner on the sell-side.

Investors will await decisions made by central banks this week. The US Federal Reserve will announce its rate decision later on Wednesday, while the European Central Bank (ECB) follows on Thursday.

Ethereum (ETH) gained 1.5 per cent to trade at $2,324.59, Dogecoin (DOGE) chalked up 1.4 per cent to sell for $0.1016, Solana (SOL) appreciated by 0.6 per cent to $84.85, Cardano (ADA) grew by 0.5 per cent to $0.2483, and Binance Coin (BNB) advanced by 0.2 per cent to $627.15.

However, TRON (TRX) depreciated by 0.6 per cent to $0.3224, and Ripple (XRP) lost 0.03 per cent to sell at $1.39, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) were unchanged at $1.00 each.

Economy

Oil up 3% as Hormuz Disruption Outweighs UAE OPEC Exit

Published

3 hours ago

29/04/2026

Adedapo Adesanya

By Adedapo Adesanya

Oil was up by nearly 3 per cent on Tuesday as persistent worries about supply constraints from the closed Strait of Hormuz continued, with Brent futures for June rising by $3.03 or 2.8 per cent to $111.26 a barrel, and the US West Texas Intermediate (WTI) crude futures growing by $3.56 or 3.7 per cent to $99.93 a barrel.

An earlier round of negotiations between the United States and Iran collapsed last week after face-to-face talks failed.

Ship-tracking data showed significant disruptions in the region, with six Iranian oil tankers forced to turn back due to the US blockade, but some traffic is still moving.

Prices trimmed some of the advances after the United Arab Emirates (UAE), the fourth-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), said on Tuesday it would exit the group on this Friday, May 1, 2026.

This dealt a blow to the oil-exporting group and its de facto leader, Saudi Arabia.

The UAE could quickly ⁠add between 1 million and 1.5 million barrels per day of output. However, with the Strait of Hormuz effectively closed, analysts said that there’s nowhere for that supply to go.

The UAE joined OPEC in 1967, but tension with Saudi Arabia over production quotas has been building for years.

Under the OPEC+ deal, the country has been held to roughly 3 million barrels per day while sitting on capacity above 4 million. It has been pushing toward 5 million barrels per day by 2027, and that target is hard to achieve with quotas built around someone else’s view of the market.

The war in Yemen broke whatever was left of diplomatic patience.

President Donald Trump said he was unhappy with the latest Iranian proposal to end the war. The proposal would avoid addressing the nuclear programme until hostilities cease and Gulf shipping disputes are resolved.

The Idemitsu Maru, ‌a Panama-flagged ⁠tanker carrying 2 million barrels of Saudi oil, and an LNG tanker managed by the Abu Dhabi National Oil Company (ADNOC) crossed the Strait on Tuesday, shipping data showed.

Vortexa data showed that the amount of crude oil held around the world on tankers that have been stationary for at least seven days rose to 153.11 million barrels as of April 24.

The American Petroleum Institute (API) estimated that crude oil inventories in the United States fell by 1.79 million barrels in the week ending April 24. The official data from the US Energy Information Administration (EIA) will be released later on Wednesday.