Funding Rates Fall to 14.83% as Investors Prepare for OMO Auction

Image

By Dipo Olowookere

The average money market rates marginally depreciated on Wednesday as the recent raising of Cash Reserve Ratio (CRR) by the Central Bank of Nigeria (CBN) continue to have effect on the market.

Business Post observed that the squeeze in financial system liquidity caused by this policy as a result of the debit funding further shrank the funding rates by 0.09 percent to 14.83 percent during the session from 14.93 percent at the previous trading day.

This followed the 0.17 percent decline in the Open Buy Back (OBB), which closed at 14.33 percent against its previous level, 14.50 percent. However, the Overnight (OVN) rate remained flat at 15.33 percent.

Today, Thursday, February 6, the central bank is expected to auction some bills to offshore investors via the Open Market Operations (OMO) and with N310 billion inflows anticipated in OMO maturities, the money market rates are projected to trend lower at the close of transactions.

At the secondary market for treasury bills yesterday, transactions were bearish amid renewed sell pressure during the session across most of the tenors, with the average yields increasing by 0.21 percent to settle at 3.82 percent.

Apart from the one-month instrument, which went down by 0.31 percent to 2.75 percent from 3.06 percent, every other maturity recorded gains at the close of business.

Yield on the one-year bill appreciated by 0.68 percent to settle at 5.44 percent versus 4.76 percent of the previous day, the six-month tenor rose by 0.27 percent to 3.85 percent from 3.57 percent, while yield on the three-month maturity grew by 0.19 percent to 3.23 percent from 3.03 percent.

As expected, attention will be on the OMO sale by the apex today as the offshore investors are expected to rollover their maturities, when the instruments are offered for sale.

The bills will most likely be auctioned in three different tenors and going by the previous exercises, more of the bids will be on the one-year maturity and the bank may decide to further slightly trim the stop rates.

 

Share
Related Stories
Image
04-March-2024

NGX Posts 3.27% W-o-W Loss, MTN Closes as Worst-Performing Stock

By Dipo Olowookere The Nigerian Exchange (NGX) Limited recorded a week-on-week loss of 3.27 per cent last week as a result of profit-taking, especially after the Central Bank of Nigeria (CBN) raised the interest rate to 22.75 per cent from 18.75 per cent to attract hot money and slow down inflation, which is almost at 30.0 per cent. MTN Nigerian ended the trading week as the worst-performing stock after it shed 18.91 per cent to N200.70, and Sunu Assurances declined by 18.18 per cent to N1.71. Nestle Nigeria also dropped 18.18 per cent to sell at N900.00, CWG fell by

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

Image
03-March-2024

Abuja Residents Loot NEMA Warehouse as Hardship Bites Harder

By Adedapo Adesanya As hardships spurred by the rising cost of food, fuel, and other basic needs bite harder, some residents of the Nigerian capital, Abuja, broke into a government warehouse in the city to loot food items on Sunday morning. According to reports, the incident, which involved a warehouse belonging to the National Emergency Management Agency of Nigeria (NEMA), happened around 7 am and continued for about two hours. Amid the current economic realities in the country, there has been a spate of breaks in and looting of both private and public storage units by residents. The warehouse looted

More Stories
Image
03-March-2021

Demand Pressure Pulls Down Naira to N411.63/$1 at Investors’ Window

By Ahmed Rahma, Adedapo Adesanya The Naira witnessed a drop in price against the US Dollar at the Investors and Exporters (I&E) window on Tuesday as it was unable to handle renewed pressure on it. For the second trading session, the value of the Nigerian currency declined by N2.43 or 0.59 per cent to N411.63/$1 from N409.20/$1 it traded on Monday. At the close of the market, transactions worth $59.17 million were recorded in contrast to $24.38 of the preceding session, signifying an increase of not less than $34.79 million or 142.7 per cent in the day’s turnover. However, at

Image
16-October-2020

Allocation to FG, States, LGAs Drops 6.2% in September 2020

By Adedapo Adesanya The amount shared by the Federation Accounts Allocation Committee (FAAC) to the three tiers of government and relevant agencies dropped 6.2 per cent to N639.9 billion in September 2020 from N682.1 billion in August 2020. This was disclosed in a communiqué after the physical meeting of the committee for the month of October held at the Federal Ministry of Finance headquarters, Abuja. The meeting was the first since May due to the coronavirus pandemic and was chaired by the Permanent Secretary, Federal Ministry of Finance, Mr Aliyu Ahmed. The total distributable revenue of N639.9 billion comprised statutory

Image
02-September-2019

Pulse Invasion: Nigeria’s Biggest Campus Experience Returns

Nothing describes youthfulness like music, dance and a fun-filled party. And if last year was a measure, it was one of the ‘bombest’ years for students of Moshood Abiola Polytechnic (MAPOLY); Federal University of Agriculture, Abeokuta, (FUNAAB); University of Calabar (UNICAL), etc. Are you asking what happened? If you just asked that question, then it must be one of two things. The first is that you are an ‘oldie’ in which case we will respectfully tell you to read to the end to catch up on what the young ones have been up to. The second is that you are

Image
13-July-2019

More GSM Subscribers Join 9mobile

Award-winning telecommunications network, 9mobile, has been affirmed yet again as the preferred number one choice of customers with the latest Mobile Number Portability (MNP) chart showing 9mobile as gaining highest ports-in consistently over the past one year. The Nigerian Communications Commission (NCC) in its most recent MNP report shows that 62 percent of the 10,781 numbers that ported, moved to 9mobile network as at May 2019. The regulator in the industry report covering the period June 2018 to May 2019 posted on its website, indicated that from June 2018 up till May 2019, 9mobile has consistently maintained double or triple

Image
02-April-2018

BREAKING: Alan Pardew Quits West Brom

By Dipo Olowookere Head Coach of West Bromwich Albion, Mr Alan Pardew, has left the English club battling with relegation. The former Crystal Palace manager parted ways with West Brom on Monday morning. The club is presently at the bottom of the EPL table. On Saturday, the Baggies lost their home match against Burnley by two goals to one, leaving the club 10 points from safety with six games remaining. It was the eighth successive league defeats for Mr Pardew, who was appointed by Albion on November 29, 2017 after the club sacked its former handler, Mr Tony Pulis, who

Image
22-September-2021

Fire Destroys N3trn Properties in Q2 2021

By Ashemiriogwa Emmanuel The Federal Fire Service (FFS) received a total of 638 distress calls from Nigerians across the country in the second quarter of 2021, with 82 persons rescued by firefighters and properties worth N3.017 trillion destroyed. The Minister of Interior, Mr Rauf Aregbesola, who disclosed this at the commissioning of fire-fighting trucks deployed by the federal government to complement firefighting in Taraba State, further stated that in the period under review, 27 persons sadly lost their lives. Present at the Government House, Jalingo, the Minister said that, “It is noted that 2020 into 2021 has witness frightening fire

Image
31-August-2023

Tinubu Promises to Resolve Nigeria’s LNG Challenges

By Adedapo Adesanya President Bola Tinubu has promised to fix the challenges, including pipeline vandalisation, which have constrained Nigeria’s LNG (NLNG) production, resulting in a consequent loss of revenue to the government. This came as the Board of Directors and Management of NLNG Limited visited the president to discuss the potentials and constraints in its operations. The MD/CEO of the firm, Mr Philip Mshelbila, stated that besides, multiple taxation from various government agencies and the Finance Act, which is being amended yearly, distorts corporate planning and puts business on the back foot, stifling investor confidence and investment opportunities in the

Image
27-December-2016

Growing Asthma Rate Fuelling Call for Respiratory Inhaler Devices

By Dipo Olowookere Future Market Insights (FMI) has delivered key insights on the global respiratory inhaler devices market in its upcoming outlook titled, ‘Respiratory Inhaler Devices Market: Global Industry Analysis and Opportunity Assessment, 2015 – 2025’. In terms of value, the global respiratory inhaler devices market is projected to register a healthy CAGR of 4.3 percent during the forecast period due to various factors. This FMI report offers vital and detailed insights regarding these factors. The respiratory inhaler devices market is segmented on the basis of product type, disease indications, technology and region. Based on the product segmentation, the overall

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