Treasury Bills Rates Rise Across Tenors at Primary Market

Image

By Dipo Olowookere

The Central Bank of Nigeria (CBN) offered treasury bills to investors at attractive rates at the primary market auction (PMA) on Wednesday as the government intends to use the avenue to borrow more money from the local debt market.

The stop rates were increased by the apex bank across the three maturities offered for sale during the session, with the shortest end of the curve witnessing the highest jump.

According to an analysis of the sales, the 91-day bill cleared at 3.50 per cent, 0.70 per cent higher than the previous session’s stop rate of 2.80 per cent. The 182-day tenor was sold to traders at 4.50 per cent, 0.40 per cent higher than the 4.10 per cent offered at the preceding PMA, while the 364-day maturity cleared at 7.45 per cent, 0.45 per cent higher than the 7.00 per cent of the earlier exercise.

Business Post reports that the CBN, which auctioned the debt instruments for the Debt Management Office (DMO) on behalf of the federal government of Nigeria, offered for sale N150.62 billion worth of the T-Bills and it received subscriptions valued at N187.53 billion, with an allotment of N150.62 billion made at the end of the exercise.

A breakdown showed that N1.02 billion worth of the three-month bill was auctioned by the central bank but bids worth N1.80 billion were received and N1.15 billion issued to subscribers, with the range of bid rates between 2.70 per cent and 10.00 per cent.

As for the six-month instrument, N1.82 billion was taken to the market but the appetite for this maturity was low as subscriptions worth N1.69 billion were processed between 4.10 per cent and 7.00 per cent, but the apex bank sold N1.3 billion at 4.5 per cent.

It was observed that the strong demand for higher tenors, ostensibly because of the higher rates, continued during the exercise for the 12-month bill. The CBN approached the market with N147.78 billion worth of the instrument but the demand rose to N184.04 billion, with investors bidding between 6.00 per cent and 12.00 per cent. However, the bank issued N148.15 billion at 7.45 per cent.

This trend is expected to continue at the next PMA as investors shop for investment tools that will fetch them higher yields amid rising inflationary pressures eroding the gains from risk-free assets.

Share
Related Stories
Image
21-February-2024

FX Crisis: Nigeria Mulls Ban on Binance, Other Crypto Firms

By Adedapo Adesanya Nigeria is considering blocking the online platforms of Binance and other crypto firms in the latest string of unorthodox measures to address the lingering foreign exchange (FX) crisis in the country, which has made the Naira unattractive to the citizens. According to Premium Times, officials with knowledge of the policy said this is the next card to be played to halt “the continuous manipulation of the forex market and illicit movement of funds.” Binance, a digital assets platform, serves as a window for peer-to-peer (P2P) transactions allowing users to sell or buy currencies of their choice. Business

Image
20-February-2024

WACOT Rice Concludes Argungu Outgrower Expansion Programme

By Aduragbemi Omiyale An initiative of WACOT Rice aimed at enhancing rice production in Nigeria, the Argungu Outgrower Expansion Programme (AOEP), has been concluded, the company has confirmed in a statement. The scheme was put in place in 2020 by the subsidiary of Tropical General Investments (TGI) Group in collaboration with the USAID-funded West Africa Trade and Investment Hub. It was to leverage WACOT’s existing outgrower programme to improve the livelihoods of smallholder farmers by providing access to essential agricultural inputs, financing, and training on Yield Enhancement Techniques (YET), and Good Agronomic Practices (GAP). At the closing of the scheme

Image
22-February-2024

Dangote Sugar to Borrow N50bn from Commercial Paper Sales

By Aduragbemi Omiyale The management of Dangote Sugar Refinery Plc is requesting about N50 billion from capital market investors for its short-term working capital and funding requirements. The sugar miller will get the funds from investors through the sale of commercial papers and has promised to repay in about nine months’ time. The CP sales will be conducted under its N150 billion commercial paper issuance programme approved by the regulatory authorities. It is the first series the company is selling this time and it specifically has a tenor of 266 days with a discount rate of 15.92 per cent and

Image
21-February-2024

FG Completes $70m Yearly Concessionaire of Zungeru Plant to Penstock

By Adedapo Adesanya The federal government has completed the transfer of the operations of the Zungeru Hydroelectric Power Plant (ZHPP) to a concessionaire, Penstock Limited, in a move that will see the country earn $70 million yearly from the deal. The Vice President, Mr Kashim Shettima, confirmed this during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja on Tuesday. A concession is a kind of partnership between the public sector and often private companies that have shown its added value in a specific area, for example developing infrastructure. The

More Stories
Image
03-January-2023

Motorists Demand Reversal of New Third-Party Insurance Policy

By Adedapo Adesanya The Insurance Consumers Association of Nigeria (INSCAN), which includes motorists, has called on the National Insurance Commission (NAICOM) to reverse its directive on the increase of third-party motor insurance premium in Nigeria. NAICOM recently issued a policy directive on the increase of third-party insurance policy in Nigeria by 200 per cent. INSCAN, in a letter signed by its National Coordinator, Mr Yemi Soladoye, demanded the reversal of the directive, saying it amounted to a deliberate breach of the fundamental Principle of Utmost Good Faith and other decent regulatory principles guiding Insurance practice. “We hereby write with respect

Image
13-May-2022

GHG Protocol Standards that You Should Know

The earth is warming up faster than any other moment in the past, and it is time to rethink our strategies for cooling it down. During the 2015 Paris Climate Conference (COP21), countries committed to limiting further global warming by cutting down greenhouse (GHG) emissions. Corporates have a bigger role in addressing global warming, and their leadership needs to understand the GHG protocol to help them measure and manage their emissions. So, how well do you know the GHG protocol? Here is a deeper look, outlining the scopes of GHG emissions and the main standards that you should know about. What

Image
04-December-2023

Russian Language: Too Little, Too Late for Africa

By Kestér Kenn Klomegâh Russian language study is hitting magnificent roadblocks in Africa. For several years after the Soviet collapse, Moscow has been stepping up efforts to strengthen Russian language study and its culture across Africa. But there have been few tangible results largely due to low motivation towards the language, its usefulness is blurry compared to other foreign languages including French, English language and now Chinese. In the previous years, there has been an increasing concern about Russia’s extremely low presence in Africa. Russia’s initial interest was to become part of Europe and construct business ties from Lisbon to

Image
08-October-2016

DSS Arrests Two Supreme Court Justices

By Dipo Olowookre Two Justices of the Supreme Court, Justices Sylvester Ngwuta and John Okoro, were apprehended by men of the Department of State Service (DSS) in the early hours of Saturday at their official residences in Abuja. The two men were said to be currently in the DSS custody in Abuja. Media aide to the Chief Justice of Nigeria (CJN), Mr Ahuraka Isah, confirmed to our correspondent the arrest of Justices Nwgwuta and Okoro. He however said the reasons for the arrest were still not known to him. He clarified that Justice Walter Onnoghen, the next in rank to

Image
18-October-2016

Why We Are Championing Crusade For NIMMA—Odiakose

Lead Consultant of Nigeria’s leading and fastest growing Independent PR measurement and evaluation agency, Mr Philip Odiakose, has been in the forefront of establishing the Nigerian Media Monitoring and Measurement Association (NIMMA). In this interview with BrandArena, Mr Odiakose explained why he is backing this and also the benefit of having that body to regulate the activities of Independent Media Monitoring and Measurement Agencies in Nigeria. You have been a strong advocator for an Independent Media Monitoring and Measurement body in Nigeria for a year now, what has been the reaction of the IMC industry at large to your advocacy?

Image
15-March-2023

NMRC Triggers Marginal 0.01% Appreciation at NASD Exchange

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange recorded a marginal rise of 0.01 per cent on Tuesday, March 14, to remain in positive territory. This saw the NASD Unlisted Securities Index (NSI) grow by 0.04 points at the close of transactions to 729.79 points from the 729.75 points achieved in the previous session, while the market capitalisation of the bourse was jerked higher by N60 million to N958.96 billion from N958.90 billion. The improvement in the key performance indices of the unlisted securities market was influenced by the day’s single price mover, Nigeria Mortgage Refinance Company (NMRC) Plc,

Image
10-October-2018

Excitement as African Alliance Insurance Moves Headquarters to Ikoyi

By Modupe Gbadeyanka Ahead of its brand refresh, foremost Nigerian life insurance specialist company, African Alliance Insurance Plc, has moved its headquarters from its former Marina location to the heart of Ikoyi in Lagos State. It was gathered that the decision to move the insurer’s headquarters to Ikoyi was propelled by the pressing need for business expansion and re-positioning the brand for success in the 21st century. It is one of the many activities that would follow in the last quarter of the year as the company rolls out its newly refreshed look and activities. Information at our disposal disclosed

Image
19-December-2017

FG Begins Sale of N10.69b Debut Green Bond

By Dipo Olowookere The issuance of the debut FGN Green Bond worth N10.69 billion has commenced. The exercise kicked off on Monday, December 18, 2017 and will end on Wednesday, December 20, 2017. According to information released by the Debt Management Office (DMO) yesterday on the exercise, the 5-year FGN Green Bond due in 2022 is offered at 13.48 percent. Proceeds from the sale will be used solely for Green projects in the 2017 Appropriation Act already identified and certified. The debt office, which is supervising the exercise on behalf of the Nigerian government, explained that investors can subscribe for

Ad
Ad
Recent Stories
Image
22-February-2024

AFCON 2023: Nigerian Content Creators See 200% Rise in Revenue, Views

By Adedapo Adesanya Content creators in Nigeria saw a 200 per cent increase in views and revenue between December 2023 and February 2024, a new study shared with Business Post showed. According to new data released by StarNews Mobile, an African video streaming platform, content creators across Africa experienced a 300 per cent surge in revenues during the 2023 Africa Cup of Nations (AFCON) held between January 13 and February 11, 2024, reaffirming the massive surge in consumption of hyper-localized content from the continent. Based on metrics from StarNews Mobile’s platform, creators in Nigeria were only outshone by their peers

Image
22-February-2024

Two Die, 15 Rescued in Ikoyi-Lekki Link Bridge Boat Mishap

By Modupe Gbadeyanka Two persons have been confirmed dead in a boat accident that occurred on Wednesday night at the Ikoyi-Lekki Link bridge in Lagos. The Lagos State Emergency Management Agency (LASEMA), which confirmed the incident, stated that 15 persons were rescued in the mishap. The agency stated that the boat, which was conveying 17 passengers, was heading to the Ikorodu area of the metropolis from its take-off point, Sandfil, when it capsized at the Powerline area of the popular bridge. It said the body of a female passenger, who drowned, was recovered, while the corpse of the male passenger

Image
22-February-2024

NPPAN Targets $10bn Contribution to Nigeria’s GDP via Palm Biomass

By Adedapo Adesanya The federal government will sign a Memorandum of Understanding (MoU) with the Malaysian government to develop palm biomass in the country as part of efforts to utilise one of the undertapped farm produces in the country. Mr Alphosus Inyang, President of the National Palm Produce Association of Nigeria (NPPAN), made this disclosure, saying palm biomass is a multi-billion dollar economy. “Biomass simply means agricultural waste and we are talking about turning waste into wealth,’’ he said in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja. The president said NPPAN was working with

Image
22-February-2024

Salesforce Introduces Clean Energy Programme Management

By Modupe Gbadeyanka A new solution to help electric, gas, and water utilities increase customer participation in clean energy programmes has been introduced by Salesforce. The initiative known as Clean Energy Programme Management for Energy & Utilities Cloud streamlines the launch, management, and oversight of energy efficiency, conservation, electrification, and EV charging programs. It helps utilities manage clean energy initiatives with connected data — like energy usage and billing information — and personalised engagement to promote relevant programmes. This platform also digitises and simplifies the application process for customers, participating contractors, and utility program staff to help increase clean energy

Image
22-February-2024

Dangote Sugar to Borrow N50bn from Commercial Paper Sales

By Aduragbemi Omiyale The management of Dangote Sugar Refinery Plc is requesting about N50 billion from capital market investors for its short-term working capital and funding requirements. The sugar miller will get the funds from investors through the sale of commercial papers and has promised to repay in about nine months’ time. The CP sales will be conducted under its N150 billion commercial paper issuance programme approved by the regulatory authorities. It is the first series the company is selling this time and it specifically has a tenor of 266 days with a discount rate of 15.92 per cent and

Image
22-February-2024

NASD Unlisted Security Index Depreciates by 0.77%

By Adedapo Adesanya A 0.77 per cent loss was suffered by the NASD Over-the-Counter (OTC) Securities Exchange on Wednesday, February 21 following profit-taking in three stocks. Aradel Holdings Plc went down by N49.50 during the session to close at N2,476.50 per share versus the previous day’s N2,526.00 per share, Central Securities Clearing System (CSCS) Plc depreciated by 37 Kobo to end the day at N19.63 per unit compared with Tueday’s closing price of N20.00 per unit, and FrieslandCampina Wamco Nigeria Plc deflated by 7 Kobo to settle at N74.43 per share, in contrast to the N74.50 per share it traded

Image
22-February-2024

Naira Appreciates at Official Market, Falls at Black Market

By Adedapo Adesanya The Naira appreciated against the United States Dollar in the official market and the and the peer-to-peer (P2P) windows of the foreign exchange (FX) market but depreciated in the parallel market on Wednesday, February 21 as several scare tactics to ease the weakening local currency continues. In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the domestic currency gained 0.6 per cent or N8.66 on the greenback to close at N1,542.58/$1 compared with the previous day’s N1,551.24/$1. However, the Naira maintained stability against the Pound Sterling and the Euro in the spot market in the midweek session at

Image
22-February-2024

Crude Oil Jumps as Geopolitical Tensions Persist

By Adedapo Adesanya Crude oil appreciated on Wednesday as geopolitical tensions continued in the Middle East and traders assessed signs of near-term supply tightness. Brent crude was up by 69 cents or 0.8 per cent to $83.03 a barrel while the US West Texas Intermediate (WTI) crude jumped by 87 cents or 1.1 per cent to settle at $77.91 per barrel. Houthi attacks on commercial vessels in the Red Sea and Bab al-Mandab strait have continued to stoke concerns over freight flows through the critical waterway. The Iran-aligned Yemeni Houthis have carried out repeated drone and missile strikes since November in

Image
22-February-2024

Investors Recover N165bn as FBN Holdings, BUA Cement, Others Gain

By Dipo Olowookere The bulls recaptured the Nigerian Exchange (NGX) Limited on Wednesday after the bears dominated for two straight days as a result of panic selling due to the macroeconomic environment, especially with the poor performance of the Naira in the foreign exchange (FX) market. During the midweek session, the local bourse finished higher by 0.30 per cent on renewed bargain-hunting activities by investors. This raised the market capitalisation of the domestic exchange by N165 billion to N55.464 trillion from N55.299 trillion, as the All-Share Index (ASI) grew by 301.71 points to 101,362.38 points from 101,060.67 points. Business Post

Image
21-February-2024

Tinubu Appoints Kemi Nanna Nandap as Comptroller-General of Immigration

By Modupe Gbadeyanka The Deputy Comptroller-General (DCG) of the Nigeria Immigration Service (NIS), Ms Kemi Nanna Nandap, has been elevated to the post of the Comptroller-General of the agency. This followed her appointment by President Bola Tinubu, according to a statement issued by his spokesman, Mr Ajuri Ngelale, on Wednesday. The presidential aide disclosed in the statement today that the appointment of Ms Nandap will take effect from Friday, March 1, 2024. She is taking over from Mrs Caroline Wura-Ola Adepoju, whose term in office expires on February 29, 2024, the disclosure said. “President Bola Tinubu has approved the appointment