CBN Sells N230b Treasury Bills via PMA as Rates Further Drops

Image
Treasury Bills

By Dipo Olowookere

Yesterday, the Central Bank of Nigeria (CBN) carried out its second primary market auction (PMA) of treasury bills with the exercise recording an oversubscription by 105 percent.

Much of the subscriptions came from the 364-day bill, with a total subscription worth N396.85 billion received from the N193 billion offered by the apex bank.

However, at the close of the auctioning, the central bank allotted N193 billion worth of the 1-year instrument to investors at 13.79 percent, lower than the 14.3 percent it cleared at the last exercise held on January 3, 2018.

Business Post reports that the stop rates for other tenors also dropped at the exercise on Wednesday, though slight oversubscriptions were recorded for the two bills.

For the 91-day bill, the central bank raised N10.25 billion, same amount it offered, but received N44.73 billion worth of subscriptions from traders. However, the rate cleared at 12.10 percent in contrast to 12.55 percent it was at the last PMA.

Also, the apex bank allotted N26.60 billion worth of the 182-day bill after receiving N29.91 billion worth of subscriptions from investors. The amount of the instrument offered for sale by the CBN was N29.60 billion and it cleared at 13.75 percent, lower than 13.93 percent from the last exercise held two weeks ago.

Meanwhile, the money market rates marginally declined on Wednesday as the market looked forward to the N96 billion maturing OMO bills today and N65 billion 2034 bond coupon payment.

At the close of business yesterday, the overnight rate went down to 6.50 percent from 8.50 percent the previous day, while the open buy back (OBB) rate slowed to 6.17 percent from 7.50 percent on Tuesday.

The rates are further expected to drop today as a result of the inflows being anticipated by market players as well as OMO T-bills sale by the central bank.

Share
Related Stories
Image
30-November-2023

NAICOM Asks Insurance Companies to Tackle Unpaid Claims

By Adedapo Adesanya The boards of insurance companies operating in the country have been charged by the National Insurance Commission (NAICOM) to embrace the measures put in place to tackle the challenges of unpaid claims. The Commissioner for Insurance, Mr Sunday Thomas, expressed worry over the number of outstanding claims in the sector despite efforts by the regulator to address the issue. Mr Thomas, who is also the chief executive of NAICOM, said the organisation, in collaboration with members of the Insurers’ Committee, has taken decisions and incepted measures designed to tame the menace of unpaid claims. Speaking at the

Image
01-December-2023

Naira Official Value Now N832/$1, Street Value at N1160/$1

By Adedapo Adesanya The Naira put up a weak performance against the United States Dollar across the various segments of the foreign exchange (FX) market on Thursday. November 30, 2023, the last trading session of the month. In the Nigerian Autonomous Foreign Exchange Market (NAFEM) window, which is the official market, the Nigerian currency lost 0.1 per cent or 85 Kobo against the greenback during the session to settle at N832.32/$1 compared with the preceding day’s value of N831.47/$1. A slight strain in the supply of forex into the spot market was partly responsible for the weakening of the local

Image
01-December-2023

Angola May Exit OPEC Amid Quota Rift

By Adedapo Adesanya  Angola, one of Africa’s top crude oil producers and a key member of the Organisation of the Petroleum Exporting Countries (OPEC), has officially rejected the proposed production quota for the year 2024 and may even exit the group. This was signalled by Mr Diamantino Pedro Azevedo, Angola’s Minister of Energy and Mineral Resources, confirming the nation’s decision and indicating a divergence from OPEC’s suggested allocations for both member and non-member countries. The announcement was made during the 26th OPEC+ Meeting on Thursday, where the organisation proposed 1.11 million barrels of crude oil per day production quota for

Image
01-December-2023

Crude Oil Falls as OPEC+ Agrees Voluntary Output Cuts

By Adedapo Adesanya Crude oil prices fell on Thursday members of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) agreed to voluntary output cuts for the first quarter of next year, falling short of market expectations. As a result, Brent crude futures lost 27 cents or 0.3 per cent to close at $82.83 per barrel, and the US West Texas Intermediate (WTI) crude futures went down by $1.90 or 2.4 per cent to $75.96 a barrel. On a monthly basis, Brent fell by 5.2 per cent while WTI was down by 6.2 per cent. Saudi Arabia, Russia

More Stories
Image
24-April-2017

Hilton Powers GCC Hotel Expansion

By Dipo Olowookere Chief Executive Officer of Hilton, Mr Chris Nassetta, will be heading to the Arabian Hotel International Conference in Dubai this year, underlining the importance of the region to his company’s ambitious expansion plans. Following another year of landmark growth under the leadership of Carlos Khneisser, Hilton has over 21,000 rooms in its pipeline across the Gulf more than 16,000 of which are already under construction and scheduled to open before 2020. The six markets of the GCC contribute more than a third of Hilton’s pipeline rooms across the Europe Middle East Africa – where the company is

Image
17-March-2019

NIMASA Wants Fixed Fire-Fighting Systems on Fishing Vessels

By Dipo Olowookere The Nigerian Maritime Administration and Safety Agency (NIMASA) has said it would recommend fishing vessels on the nation’s territorial waters to have fixed fire-fighting systems. Head of Maritime Safety and Seafarers Standards Department at NIMASA, Captain Sunday Umoren, dropped this hint while reacting to reports that the agency failed to provide assistance to a distressed fishing vessel; MV ORC4, resulting in the sinking of the vessel and loss of lives. In a statement issued on the matter, NIMASA said it actually saved the vessel through its Search and Rescue Operations alongside the Nigerian Liquefied Natural Gas company

Image
19-August-2021

FG Seeks Private Sector’s Involvement in Vaccine Production

By Sodeinde Temidayo David The federal government has once again called on the private sector to provide support in vaccine production, even as it also lauded the efforts of the sector to support its response to COVID-19. The Vice President, Mr Yemi Osinbajo, represented by the Director-General of Nigeria Centre for Disease Control (NCDC), Dr Chikwe Ihekweazu, said this at the Guild of Medical Laboratory Directors’ 23rd National Conference and Annual General Meeting in Abuja, on Wednesday. He said, “We keep learning from our successes and challenges and strategising on ways for better preparedness for other emerging diseases. “The pandemic

Image
12-March-2020

CSCS Helps Unlisted Securities Market into Positive Territory

By Adedapo Adesanya The unlisted securities market in Nigeria closed in the positive territory on Wednesday, thanks to the contribution of Central Securities Clearing System (CSCS) Plc. The 13 kobo added to the share price of the Nigerian central securities depository company during yesterday’s trading session influenced the 0.13 percent growth achieved by the market. Business Post reports that the share price of CSCS consequently finished at N12 per unit at the midweek session on the floor of the NASD Over-the-Counter (OTC) Securities Exchange. The market capitalisation increased yesterday by N650 million to N508.76 billion from N508.11 billion, while the

Image
15-September-2021

Confusion as Dollar Sells at N557/$1, Pound at N760/£1, Euro N645/€1

By Adedapo Adesanya The current situation of the Naira seems to be like the proverbial dog that is destined to be lost, which will never hear the hunter’s whistle. This is because, despite efforts by the Central Bank of Nigeria (CBN) to salvage the situation, its value against the United States Dollar at the parallel market is worsening with each passing day. At the unofficial window of the foreign exchange (FX) market on Tuesday, the local currency further depreciated by N7 against the greenback to sell at N557/$1 compared with the preceding day’s N550/$1. The outcome of the domestic currency

Image
11-December-2017

Will Credit to Private Sector Rebound in 2018?

By United Capital Research After the Nigerian economy slipped into recession in Q2-16, policy efforts have been broadly geared at restoring business confidence and sustainable growth. To stimulate economic activities, fiscal authorities opted for a large budget, embarking on a massive borrowing scheme to reflate the economy. The monetary authority on the flip side took a hawkish stance, raised policy rate to 14% and embarked on an aggressive mop-up exercise, determined to arrest FX liquidity crisis and galloping inflation. A combination of huge government borrowing and tight monetary policy drove yields to record levels, averaging 17.0% in 2017 (vs. 13.4%

Image
23-June-2023

Naira Slumps to N765.13/$1 at I&E as Pound Sterling Nears N1000

By Adedapo Adesanya The Naira continued its price discovery on Thursday in the Investors and Exporters (I&E) segment of the foreign exchange market, looking to close the disparity in its value in the other windows of the market. In the official market, it depreciated against the US Dollar during the session, while it appreciated in the Peer-2-Peer (P2P) and the parallel market at the close of transactions. Business Post reports that the domestic currency succumbed to forex demand pressure yesterday as it lost N1.76 or 0.26 per cent against the greenback to sell at N765.13/$1, in contrast to the preceding

Image
17-January-2023

Nigerian Currency Sells N461.50/$1 at I&E, N743/$1 at Black Market

By Adedapo Adesanya The Nigerian currency gained on the US Dollar at the Investors and Exporters (I&E) segment of the foreign exchange (FX) market on Monday but lost in the Peer-2-Peer (P2P) and black market segments of the market. In the official exchange rate window, the value of the local currency yesterday was bolstered by 0.09 per cent or 40 Kobo against the greenback to N461.50/$1 from last Friday’s value of N461.90/$1. The strengthening of the Naira happened despite a surge in the demand for forex at the spot market during the session by 175.1 per cent or $126.42 million

Ad
Ad
Recent Stories
Image
02-December-2023

Sanwo-Olu Assures Businesses More Incentives, Commissions New Godrej Factory

By Modupe Gbadeyanka Business owners in Lagos have been assured of more incentives by the state governor, Mr Babajide Sanwo-Olu, who added that this is part of his administration’s commitment to reforms aimed at improving the ease of doing business and enhancing investment opportunities. Speaking at the commissioning of the newly-built wet hair production factory of Godrej Nigeria Limited, the Governor said his government would continue to pursue actions that would eliminate red tapes and regulatory impediments hindering the growth of businesses in the state, thereby demonstrating his willingness for continued collaboration with the private sector to improve the livelihood

Image
02-December-2023

Nigerian Exchange Begins December With 0.08% Growth

By Dipo Olowookere The Nigerian Exchange (NGX) Limited commenced the first trading session in December 2023 on a bullish note, with a marginal growth of 0.08 per cent. Sustained buying pressure kept Nigerian stocks in the positive territory, extending the dominance of the bulls on Customs Street, though the turnover waned. Business Post observed that investors cherry-picked equities in the banking and the energy sectors during the session, leaving them rising by 1.14 per cent and 0.05 per cent, respectively. However, the insurance counter lost 1.10 per cent, the consumer goods index depreciated by 0.08 per cent, and the industrial

Image
01-December-2023

CBN Orders Banks to Place PND on Accounts Without BVN, NIN

By Adedapo Adesanya All bank accounts without Bank Verification Number (BVN) and National Identification Number (NIN) will from April 2024 have “Post No Debit (PND)” placed on them. This is the latest directive of the Central Bank of Nigeria (CBN) to financial institutions operating in the country. In a circular issued by the apex bank and sent to all deposit money banks (DMBs) on Friday evening, the CBN said all the BVN or NIN attached to and/or associated with AL accounts/wallets must be electronically revalidated by January 31, 2024. In the circular seen by Business Post, the central bank said

Image
01-December-2023

LCCI Demands Transparency in CBN Recapitalisation Plan

By Adedapo Adesanya The Lagos Chamber of Commerce and Industry (LCCI) has urged the Central Bank of Nigeria (CBN) to strengthen its banking supervision to prevent some crucial Nigerian banks from failing due to its planned recapitalisation. Last Friday, the Governor of CBN, Mr Olayemi Cardoso, said the CBN would be directing banks to increase their capital base to serve a $1 trillion economy to be achieved by 2030. In a statement signed by Mrs Chinyere Almona, the director general of LCCI, the chamber said, “On recapitalisation of banks, we commend the plan of the apex bank to review the

Image
01-December-2023

IFC, ACP to Scale Emerging Market Climate Investments

By Adedapo Adesanya  The International Finance Corporation (IFC) has announced a collaboration with Allied Climate Partners (ACP) that will help create a pipeline of viable climate investments in emerging markets including Southeast Asia, Africa, the Caribbean and Central America, and India. ACP’s new platform is backed by philanthropic capital and designed to mobilize investment in climate-related projects in emerging economies to create significant environmental, economic, and social impact. In a statement seen by Business Post, the parties said the collaboration with IFC will provide advisory and structuring support, technical assistance, and sustainability and impact-management support as needed to help bring

Image
01-December-2023

Obaseki Wishes Rema Speedy Recovery

By Bliss Okperan The Edo State Governor, Mr Godwin Obaseki, has wished Afrobeats singer, Divine Ikubor, popularly known as Rema, a speedy recovery. In a message via his X (formerly Twitter) handle on Thursday, the Governor said the people of Edo State, where the singer hails from, are proud of him and remain behind him every step of the way. “We are extremely proud of you and remain behind you every step of the way,” a part of his post read. Mr Obaseki said the remarkable achievements of the artiste “over the years fill us with immense pride and joy.”

Image
01-December-2023

Nigeria Customs Service Develops App to Automate Transire

By Bliss Okperan The Tincan Island Port (TCIP) Command of the Nigeria Customs Service (NCS) has created a mobile application to automate its bond and license unit, Transire. At the unveiling of the app on Thursday, the Customs Area Controller, Comptroller Dera Nnadi, said the need to automate the Bond and License Unit had become imperative for administrative and procedural ease of doing business in the command. Speaking at a sensitization program on the automation process, Mr Nnadi informed participants that the application was developed by Superintendent of Customs Samuel Bello, to reduce the volumes of documents being deployed in

Image
01-December-2023

Nasarawa Assembly Elects New Speaker, Deputy

By Bliss Okperan The Nasarawa State House of Assembly has announced its election of Danladi Jatau, representing Kokona West Constituency, as the new Speaker. The state parliament also disclosed on Friday that it now has a new Deputy Speaker, who is Mohammed Oyanki, the lawmaker representing Doma North Constituency. The election of the two principal officers of the legislative arm of the state followed the sacking of its former Speaker, Mr Ibrahim Abdullahi, by the Appeal Court sitting in Abuja on Tuesday. While the new Speaker is a member of the All Progressives Congress (APC), his deputy is a member

Image
01-December-2023

Nico Williams Signs Contract Extension With Athletic Bilbao

By Bliss Okperan A 21-year-old Spanish international winger, Nico Williams, has extended his current deal with Athletic Bilbao, which expires in June 2024, by three seasons. He agreed to remain with the Spanish football outfit until 2027, the La Liga club confirmed this action on Friday. Nico Williams, whose elder brother, Inaki Williams, also plays for Athletic Bilbao, scored nine goals in 43 games in all competitions for the club last season. He represented Spain in the last World Cup in Qatar, while his brother played for their home country, Ghana. The younger Williams has reportedly been targeted by league

Image
01-December-2023

12 LASTMA Officials Face Disciplinary Panel

By Bliss Okperan Twelve officials of the Lagos State Traffic Management Authority (LASTMA) have faced a disciplinary panel constituted to look into the allegations of unethical misconduct against them. The Acting General Manager of LASTMA Mr Olalekan Bakare Oki, confirmed on Thursday that the affected personnel of the agency could be dismissed or demoted if found guilty. He disclosed that the disciplinary panel was statutorily constituted with three Permanent Secretaries as guided by the Lagos State Civil Service Rules and Regulations. Mr Oki said one of the 12 persons was exonerated, while the others have been recommended for dismissal and