Naira Expected To Rise Next Week

Naira, dollar, Market FX marketThe Naira is expected to appreciate on the street next week, following the Central Bank of Nigeria’s plan to increase dollar sale to retail currency bureaus.

The Central Bank is planning to raise dollar sales to Bureau De Change to $40,000 from the present $20,000, which will improve liquidity and help support the local currency.

The local currency was quoted at 410 to the dollar on the street, compared with 398 to the dollar, last week.

At the inter-bank market the local unit closed at 306.10 to the dollar on Wednesday compared with 306.20 last week.

CBN To Task Banks On 24hr FX Sale

CBN To Task Banks On 24hr FX SaleNigeria’s Central Bank says it will direct commercial banks to sell business and personal travel allowances to retail customers within 24 hours of filing a demand request.

This follows complaints that some banks are delaying the sale of fx to retail customers in contrast to the new forex policy issued by the CBN recently.

The apex bank also says that banks would be compelled to open forex transaction compartments in all branches across the country, to enhance the ease of forex transactions to Nigerians.

A source also told Channels Television that all commercial banks will be asked to have electronic fx rate display system in all their branches.

This is expected to promote transparency and disclosure of rate to retail customers of the banks.

OPEC Loses $1trn To Oil Decline In Two Years

OPECThe Secretary General of the Organization Of Petroleum Exporting Countries (OPEC), Mr Mohammed Barkindo, says member countries have lost one trillion dollars worth of oil revenue to the fall in global oil prices between 2014 and 2016.

The OPEC scribe, added that these losses were in terms of deferred and outright cancellations of projects across its entire value chain.

Barkindo, who revealed this during a visit to the Minister of State for Petroleum, Doctor Ibe Kachikwu, commended his measures to solve Nigeria’s longstanding challenges with joint venture cash-call obligations.

Naira Drops As CBN Announces New FX Policy

Naira, Central Bank of Nigeria, CBN, Nigerians,The Central Bank of Nigeria (CBN) on Monday announced its first policy actions in the Foreign Exchange (FX) market.

The announcement by the financial regulator comes less than a week after the National Economic Council asked the CBN to revisit its policies on the FX market, as the value of the local currency unit (Naira) dips almost on a daily basis.

The apex bank also announced direct additional funding of foreign exchange to banks for onward sales to Nigerians for their personal, basic travel, medical needs and school fees.

The bank stated in statement that the new directive takes immediate effect.

The apex bank, however, stipulated that such retail transactions should be settled as a rate not exceeding 20% above the interbank market rate, which finished on Monday at 305 Naira, 25 Kobo to the U.S. dollar.

In addition to this, the central bank also announced a significant reduction in the tenor of its forward FX sales from the current maximum cycle of 180 days, to not more than 60 days from the date of transaction.

This move, the financial regulator said would further increase the availability of foreign exchange to all end users.

As the bank seeks to increase efficiency of the FX market that has come under intense local and international criticisms, the apex bank said immediate steps were being taken to clear all unfilled orders at the interbank market, remove imposition of allocation/utilisation rules on commercial banks, as well as implement an effective programme to support the interbank market.

The operator of the interbank FX market, the FMDQ OTC Securities Exchange, was therefore advised to activate its FX order-book systems as soon as possible.

The agency was also asked to fast-track the on-boarding of foreign exchange clients on the FX relationship systems, in order to ensure total transparency of the foreign exchange market.

CBN To Disburse More Funds To Banks

 CBN To Disburse More Funds To BanksThe Central Bank of Nigeria says it would provide direct immediate additional funding to banks in order to meet the personal, business, medical as well educational demands of Nigerians.

According to a statement released on Monday by the regulator, it expects such transactions to be settled at a rate not exceeding 20 per cent above the interbank market rate.

The CBN says the exercise is part of efforts to ease the difficulties faced by Nigerians while trying to access Forex for transactions.

The Central Bank, however warns that it would sanction any bank or staff involved in unscrupulous and fraudulent transactions on the FX market.

Nigeria’s External Reserves Increase Further

Nigeria’s External Reserves Increase FurtherNigeria’s forex reserves have increased further, this time to 27.82 billion dollars as at January 25.

According to data from the Central Bank, the reserves grew from 27.76 billion dollars on January 24 and 27.4 on January 23.

This means that the reserves have increased by 3.1 billion dollars within the first three weeks of 2017.

Economic analysts attribute the increase to a rise in oil prices and production output as well as slowdown in foreign exchange allocation by the CBN.

Moody’s Predicts 2.5% GDP Growth For Nigeria

Moody's Predicts 2.5% GDP Growth For NigeriaOne of the world’s leading credit rating agencies, Moody’s Investor Services, has predicted a 2.5 per cent GDP growth for Nigeria in the new year 2017.

The agency’s Vice President and lead analyst for Nigeria, Lucie Villa, told Sunday Punch, that Nigeria’s economy would bounce back this year, supported by on ongoing recovery in oil production.

The rating agency’s chief said: “the government’s balance sheet is strong, with debt at around 16.6 per cent of Gross Domestic Product in 2016.

“Also, despite its interest burden rising to 19.8 per cent of revenue, Nigeria’s capital markets remain a reliable and captive source of liquidity and funding for the government.”

Moody’s, however, said Nigeria’s weak institutional framework, especially in terms of “the rule of law, government effectiveness and control of corruption,” would have a significant impact on its economic growth and fiscal strength, and thereby constrain the country’s b1 rating.

NIPOST Submits New Bill For Amendment Of Stamp Duty Act

NIPOST posting agenciesThe Nigerian postal service has submitted a new bill for the amendment of the stamp duty act, 2004 to the National Assembly.

The bill is aimed at modifying certain ambiguities in the act and legalising all collections through commercial banks from January 2017.

NIPOST says the amendment follows the ruling of a Lagos appeal court, nullifying stamp duty on electronic transfers.

Commercial banks had commenced the deduction of 50 Naira on electronic transfers following a Central Bank of Nigeria (CBN), directive issued in January.

Channels Television Closes Nigerian Stock Exchange Trading

Channels Media Group – Closing Gong Ceremony

Nigeria’s leading broadcaster, Channels Television, on Wednesday, closed trading at the Nigerian Stock Exchange.

This was part of a week-long line up of events to celebrate the station’s 21st anniversary.

Channels Television began the daily reportage of the domestic stock market and the entire financial markets in April 1996, just about a year after it started operations.

Over the past two decades, the broadcaster has been an integral part of Nigeria’s market evolution, and development, covering the automation of the stock market, the banking sector, and the ongoing transformation of the entire financial system.

The closing gong was sounded by the Chairman of the Channels Media Group, Mr John Momoh, at 2:30 pm.

Mr John Momoh in his address of  welcome, said, “today is a great day for us. It is a very significant day in the sense that it is serving as a pivot for the celebration of our 21st anniversary”.

Chairman CEO of Channels Television , Mr John Momoh (M), the Vice Chairman, Mrs Sola Momoh and officials of the Nigerian Stock Exchange

According to him, “it is the first time on this stage, not the first time on the floor, I have been here 20 years ago, in 1996.

“It is more like déjà vu for me.”

He went on to assure the Nigerian Stock Exchange of continued partnership in order to realise the kind of economy that the nation envisions.

CEO Nigerian Stock Exchange, Oscar Onyema, also congratulated the management and staff of Channels Television for its efforts over the years and for emerging as the best Television Station for the year, for over 10 years.

Nigeria’s Trade Balance Improves By 16.3% In Third Quater

Nigeria’s Trade Balance Improves By 16.3% In Third QuaterA new set of data released on Thursday by the Bureau of Statistics, shows Nigeria’s trade balance improved by 16.3% in the third quarter to 4.721 trillion Naira.

In the three months which ended September, total trade balance was in improvement of 661.5 billion Naira, over the second quarter.

In terms of exports, crude oil was said to have contributed 84.2% for 1.944 trillion Naira to the headline figure of 2.308 trillion Naira.

Total exports was higher 29.1% in the quarter under review.

Nigeria’s imports grow by 6.2% to 2.413 trillion Naira by September ending, higher by 140.7 billion Naira.

Trade deficit was therefore much lower at 104.144 trillion naira in the third quarter, against 484.238 trillion Naira in second quarter of 2016.

NEC Endorses Alternative Funding For Oil & Gas

NEC, Alternative funding, Oil and gasThe National Economic Council (NEC), presided over by Nigeria’s Vice President, Professor Yemi Osinbajo, has endorsed a new funding regime for the oil and gas industry.

This will in turn, eliminate the often arduous and onerous cash call regime which has stalled  growth in the industry.

The alternative funding stream had been approved earlier this week at the Federal Executive Council meeting and then presented to NEC, as the body mandated to come up with “measures necessary for the coordination of the economic planning efforts of the various governments of the federation”.

Minister of state for Petroleum, Ibe Kachikwu, who briefed State House
Correspondents after the meeting, said:

“the current upstream joint venture arrangement in Nigeria’s oil and gas industry, is unincorporated, meaning that NNPC and the International Oil Companies (IOC’s) partner in each joint venture as unique and separate.”

NEC, Alternative funding, Oil and gasAccording to the minister, from January to November 2016, under-funding of the NNPC cash calls is estimated at USD $2.3 billion.

This is in addition to the inherited arrears estimated at USD $6.8 billion for 2015 year ending.

Other highlights of the meeting included how to energize the MSME’s as a major economic growth driver in the country.

On the other hand, council observed that there are over 37 million MSME’s in Nigeria, contributing over 84% of the job opportunities in the country, with Lagos as the highest contributor.

The Central Bank Governor, Mr Godwin Emefiele, then told council that the CBN has a fund in excess of 200 billion Naira to provide affordable loans to MSME’s in the country.

Minister of Finance, Mrs Kemi Adeosun however reported to council that as at November 2016, the balance of excess crude proceeds stands at $2, 455,790,144- which is about $2.4 bln

Nigeria To Raise N952 Billion In Treasury Bills

Nigeria-NairaNigeria will raise about 952.04 billion naira ($3.02 billion) with new issues of Treasury bills from September 15 to December 1, 2016.

This is according to the Central Bank of Nigeria (CBN) said on Wednesday in its latest issuance calendar.

The CBN said it would sell 264.47 billion naira worth of three-month bills, 204.88 billion of six-month bills and 482.69 billion of one-year bills.

Nigeria is expected to borrow around 900 billion naira from the local market to bridge its budget deficit, which is estimated at 2.2 trillion naira in this year’s budget.