By Adedapo Adesanya

FMDQ Securities Exchange has resumed admission services in the Nigerian Commercial Paper (CP) market after an earlier suspension on December 30.

This followed the release of new rules on the issuance of financial instruments by the Nigerian capital regulator, the Securities and Exchange Commission (SEC).

“This Market Notice is issued as an update to MN-50 (Suspension of FMDQ Exchange’s Admission Services in the Nigerian CP Market), to notify all stakeholders of FMDQ Securities Exchange Limited (“FMDQ Exchange” or the “Exchange”) of the immediate resumption of the Exchange’s securities admission services in the Nigerian commercial paper (“CP”) market,” a statement on Friday said.

A commercial paper is short-term, unsecured promissory notes not backed by collaterals issued by companies to raise funds for immediate needs.

The SEC is now stepping in to ensure that there are some efficiencies in the issuance by approved bodies to avoid sharp practices and opacity.

The recent suspension applied to applications for which the filing of all relevant documentation has been completed, applications for which the filing of all relevant documentation is yet to be completed, as well as prospective and ongoing CP offers under active CP Programmes.

Now, FMDQ Exchange will immediately resume its securities admission services in the Nigerian CP market pending the finalisation of the ongoing engagements with the Commission on the operationalisation of the New Rule on the Issuance of Commercial Papers released by the market regulator.

The exchange also announced that it has returned to the status quo prior to the release of MN-50, and thus resumed the processing of new and ongoing applications in respect of prospective CP Programme registrations, revisions/extensions and issuances/quotations.

It added that it would provide relevant updates and further developments in respect of the above to market participants in due course.

By Modupe Gbadeyanka

For the first time in six months, the Nigerian private sector recorded an improvement in business conditions, with a 52.7-point reading in the Stanbic IBTC Bank Purchasing Managers’ Index (PMI) in December 2024.

It was observed that overall business conditions improved as new orders increased for the second month running and renewed expansions were seen in output, employment and purchasing, though the inflation rate remained elevated.

Business Post reports that in the previous month, the index stood at 49.6 points signalling a solid improvement in the health of the private sector that was the most pronounced since January 2024.

“In line with the increase in economic activity usually associated with the festive season in Nigeria, the private sector activity moved above the 50-point psychological threshold for the first time in six months, settling higher at 52.7 in December from 49.6 in November – its most pronounced improvement since January 2024.

“This improved private sector activity reflects renewed expansions in output, purchasing, and employment level. New orders also increased for the second consecutive month, with the latest increase being the highest since May 2024, reflecting an improvement in consumer demand.

“Nonetheless, while some firms increased employment in response to the higher new orders, others reported having to let staff go due to difficulties paying wages.

“Elsewhere, output (54.8 points vs November: 49.6) ended a five-month sequence of decline, with survey participants linking the rise in activity to increased customer numbers. Growth was recorded across each of the four broad sectors covered by the survey. Meanwhile, input prices remained elevated in December – prices increased across all four monitored sectors, with the most pronounced increase in the manufacturing sector.

“As a result, output prices also remained elevated in December and ticked higher from that seen in November,” the Head of Equity Research West Africa at Stanbic IBTC Bank, Mr Muyiwa Oni, said.

“We maintain our expectation that the broad economy is likely to maintain the Q3:24 growth momentum in Q4:24, supported by a festive-induced increase in economic activity and sustained improvement in crude oil production.

“On balance, we estimate the economy to grow by 3.24% y/y in real terms in Q4:24 and adjust our 2024 growth estimate upward to 3.2% (previously: 3.1%). Over the medium term, some firms were optimistic of improvements in access to funding, helping them to invest in business expansions, while others were hopeful of an improvement in economic conditions in 2025, and a softening of inflationary pressures,” he added.

By Aduragbemi Omiyale

The Debt Management Office (DMO) has said the Nigerian government will not default in meeting its domestic and foreign debt obligations in 2025 as there are sufficient budgeting provisions for this in the 2025 Appropriation Bill currently before the National Assembly.

Last month, President Bola Tinubu presented a budget of N47.9 trillion to a joint session of the parliament and it quickly passed the second reading.

The budget is being scrutinised by the legislative arm of government, with the appropriation committees of the Senate and the House of Representatives expected to submit their reports this month for passage and signing into law by Mr Tinubu.

In the 2025 fiscal year, Mr Tinubu projected revenue of N34.82 trillion, with the N13.0 trillion deficits to be financed from fresh borrowings.

The government intends to use N15.81 trillion for debt servicing, with crude oil production at 2.06 million barrels per day, an exchange rate of N1,500/$1, and an inflation rate of 15 per cent.

There have been fears that the government may struggle to repay its debts, but the DMO has allayed such concerns.

In a statement issued on Wednesday in Abuja, the agency said the country’s debt management was in line with relevant laws and international standards.

It noted that the successful pricing of the $2.2 billion last month in the international capital markets, which garnered over $9 billion in subscriptions, was an indication of the confidence investors have in the country.

“Nigeria attracted a wide range of investors from multiple jurisdictions including the UK, North America, Europe, Asia, Middle East and participation from Nigerian investors,” the statement said, adding that, “It is an expression of continued investor confidence in the country’s sound macro-economic policy framework and prudent fiscal and monetary management.”

“One of the landmark achievements of the Eurobond is that it opened up opportunities for banks and other corporate entities in the Eurobond market,” the DMO stated, noting that the growing interest in FGN bonds, Sukuk bonds, and other FGN securities demonstrates the country’s adherence to best practices in debt management.