Economy
Fixed Income, Currencies Markets Transactions Drop 7.6% in 2020
By Adedapo Adesanya
The Fixed Income and Currencies (FIC) markets recorded a total transaction turnover of N215.1 trillion in 2020, a year-on-year decline of 7.6 per cent compared with N232.7 trillion recorded in 2019.
This was disclosed in the latest FMDQ Exchange’s FIC Monthly Report for December 2020, which indicated that the period ended December 31, 2020, total contribution was N19.9 trillion, representing a Month-on-Month (M-o-M) increase of 35.3 per cent and YoY 20.9 per cent respectively.
It was explained that Foreign Exchange (FX) and Money Market transactions were the highest contributors to the FIC markets in December 2020, jointly accounting for 59.2 per cent of the total FIC market turnover, while OMO Bills and Money Market transactions accounted for the majority of turnover in 2020, jointly contributing 50.5 per cent to total turnover.
Giving a further breakdown, the turnover indicated that FX market turnover in December 2020 stood at $19.72 billion (N7.79 trillion), representing a m-o-m increase of 81.3 per cent ($8.84billion) from the turnover recorded in November 2020 – $10.88 billion (N4.21 trillion).
This was majorly driven by increased FX intervention sales by the Central Bank of Nigeria (CBN) to Dealing Member Banks to reduce the build-up of unmet clients’ FX demand in December 2020.
Analysis of the growth in FX market turnover indicated that FX Spot and FX Derivatives turnover increased m-o-m by 60 per cent ($2.55 billion) and 94.9 per cent ($6.29 billion) respectively in December 2020, with 71.2 per cent of the increase in turnover driven by the turnover growth in FX Derivatives.
In the Over-the-Counter (OTC) FX Futures market, the FMDQ report stated that near month contract (NGUS DEC 30 2020) recorded a total outstanding notional value (NV) of $2.2 billion matured and was settled, while a new long-term (60-month or 60M) contract, NGUS DEC 31 2025 was introduced at a Futures price of N608.10/$1, representing 3.24 per cent ($/N19.07) m-o-m increase in the futures price, compared to the offer rate (N589.03/$1) of the previous 60M contract (NGUS NOV 26 2025).
The total notional value of open OTC FX Futures contracts as at December 31, 2020, stood at $8.09 billion, representing a further decrease of 9.5 per cent ($0.85 billion) from its value as at November 30, 2020 ($8.94 billion), and continuing its downward the trend since May 2020.
The average CBN Official Spot Naira/US Dollar exchange rate remained constant at N379/$1 in December 2020.
Conversely, the Naira depreciated against the US Dollar at the Investors’ and Exporters’ (I&E) FX Window, losing 2.07 per cent (N8.01/$1) to close at an average of N394.92/$1 in December 2020 from N386.91/$1 recorded in November 2020.
Also, the Naira depreciated against the US Dollar in the parallel market, losing 0.17 per cent (N 0.81/$1) to close at an average of N476.05/$1 in December 2020 from N475.24/$1 recorded in November 2020.
However the average spread between the exchange rates in the formal (I&E FX Window) and unregulated (parallel) FX markets reduced by 8.2 per cent to N81.13/$1 in December 2020, from N88.33/$1 in November 2020 due to the higher depreciation of the Naira in the I&E FX Window.
Consequently, the primary markets, average discount rates for the 91-day, 182-day and 364-day Treasury bills increased m-o-m by an average of 0.68 percentage points (ppts), to close at a range of 0.03 per cent – 1.85 per cent in December 2020, while the discount rates for CBN OMO bills decreased m-o-m by an average of 1.01 ppts to close at a range of 1.78 per cent – 6.07 per cent in December 2020.
Similarly, the coupon rates of the 15Y and 25Y FGN Bond issuances increased by an average of 1.58 ppts to close at a range of 6.95 per cent – 7.00 per cent in December 2020.
Meanwhile, the total value of T-bills and OMO bills outstanding as at December 31, 2020, remained constant m-o-m at N2.72trillion and N5.37 trillion respectively, whilst the total value of FGN Bonds outstanding as at December 31, 2020, increased M-o-M by 0.28 per cent (0.03 trillion) to N10.70 trillion from N10.67 trillion recorded as at November 30, 2020.
By Aduragbemi Omiyale
One of the paint makers in Nigeria, Premier Paints Plc, is currently in talks with a new investor, Xenergi Limited, for the purchase of 51 per cent stake in the company.
Xenergi Limited intends to acquire shares of Clover Global Resources Limited and TGHL Capital Limited in the organisation.
Business Post gathered that the new investor will buy 39.02 per cent from Clover Global Resources Limited and 15.20 per cent from TGHL Capital Limited.
The deal, according to a regulatory notice issued on Tuesday on the Nigerian Exchange (NGX) Limited, will involve about 63 million shares of Premier Paints.
At the current share price of the paint producer, this should be about N630 million as it closed at N10.00 per unit on NGX on December 16, 2025.
“Subject to obtaining required regulatory approvals, the transaction is expected to close before January 31, 2026.
“The company will continue to inform the public of the progress of the transaction,” the disclosure signed by the company secretary, Alozie Nwokoro, said.
By Adedapo Adesanya
The Naira was flat against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, December 16, retaining the previous closing value of N1,451.82/$1.
In the same vein, the local currency saw no movement against the Pound Sterling and the Euro in the spot market during the session at N1,943.98/£1 and N1,705.74/€1, respectively.
Also, the Nigerian Naira remained unchanged in the black market yesterday at N1,475/$1 and was N1,460/$1 at the GTBank forex counter.
The Central Bank of Nigeria (CBN) has strengthened US Dollar supply with $250 million to authorised dealer banks at the official window cumulatively as foreign portfolio investors, exporters and non-bank corporate supply dripped.
The spread between official and other non-regulated markets decreased to N30.59$/1 from N44.57/$1, from the previous week, research subsidiary of Coronation Merchant Bank Limited said in a report.
FX analysts said foreign exchange inflows through the Nigerian Foreign Exchange Market decreased to $716.3 million from $844.70 million in the previous week , a 15 per cent drop in a week.
Foreign portfolio investors accounted for the highest share of inflows at 32.98 per cent, followed by exporters at 30.84 per cent, the CBN (17.36 per cent), Non-bank Corporates (16.94 per cent), others (0.72 per cent) and Individuals (0.63 per cent).
On Monday, Nigeria’s headline inflation rate eased to 14.45 per cent in November 2025, down from 16.05 per cent recorded in October, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS), representing a decrease of 1.6 percentage points month-on-month and marks a significant moderation compared to the same period last year.
As for the cryptocurrency market, there was some recoveries after overall capitalization falling below $3 trillion for the third time in a month. Large-cap assets, particularly those with Exchange Traded Fund (ETF) exposure, are experiencing selling pressure as institutional investors reassess risk.
Ripple (XRP) appreciated by 1.5 per cent to $1.92, Litecoin (LTC) expanded by 1.5 per cent to $78.91, Dogecoin (DOGE) rose by 0.8 per cent to $0.1308, Solana (SOL) went up by 0.4 per cent to $127.60, Binance Coin (BNB) grew by 0.3 per cent to $865.40, and Bitcoin (BTC) gained 0.2 per cent to sell at $86,735.17.
On the flip side, Cardano (ADA) depreciated by 1.0 per cent to $0.3802 and Ethereum (ETH) slumped by 0.4 per cent to $2,935.85, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) were flat at $1.00 each.
By Dipo Olowookere
A marginal 0.01 per cent rise was recorded by the Nigerian Exchange (NGX) Limited on Tuesday. This was different from the flattish mode of the market the previous day.
Investor sentiment remained bullish as Customs Street finished with 31 price gainers and 26 price losers, implying a positive market breadth index.
Aluminium Extrusion topped the gainers’ log after it improved its price by 10.00 per cent to N9.35, Guinness Nigeria appreciated by 9.98 per cent to N263.40, Multiverse expanded by 9.95 per cent to N12.15, MeCure Industries also soared by 9.95 per cent to N45.85, and Sovereign Trust Insurance advanced by 9.89 per cent to N4.11.
Conversely, Haldane McCall led the losers’ chart after it shed 9.93 per cent to settle at N3.72, Veritas Kapital lost 9.09 per cent to close at N1.60, LivingTrust Mortgage Bank also declined by 9.09 per cent to N3.50, and Linkage Assurance depreciated by 5.71 per cent to N1.65.
During the trading day, the All-Share Index (ASI) went up by 21.23 points to 149,459.11 points from the previous day’s 149,437.88 points and the market capitalisation increased by N14 billion to N95.281 trillion from N95.267 trillion.
Yesterday, traders transacted 1.0 billion equities for N21.8 billion in 23,701 deals compared with the 553.1 million equities valued at N13.3 billion traded in 28,907 deals on Monday, representing a decline in the number of deals by 18.01 per cent, and a surge in the trading volume and value by 80.80 per cent and 63.91 per cent apiece.
Access Holdings traded 385.8 million stocks worth N7.7 billion, Champion Breweries transacted 111.8 million shares valued at N817.8 million, Sterling Holdings exchanged 85.5 million equities for N589.9 million, FCMB sold 74.7 million shares valued at N791.5 million, and First Holdco transacted 51.9 million equities worth N1.8 billion.
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