Wednesday, November 27, 2024
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Nigeria’s Eurobond Yield Surges To 9.6% As Foreign Investors Relax

DMO Set To Auction N150bn Bond On FG's Behalf

In Nigeria’s sovereign Eurobond market, sell pressure on the short, mid, and long ends of the yield curve resulted in a 0.13% increase in the average yield, which reached 9.6% in the previous week.

The market has been responding to US Fed rate cuts, while the local authorities raised the benchmark interest rate to 27. 25% in September, causing some portfolio adjustments in the market.

Macroeconomic data suggests that Nigeria’s economy is improving in terms of disinflation and economic development. attitude drove the risk-off attitude on Nigeria’s sovereign Eurobond.

However, analysts believe that demand for sovereign Eurobonds will expand due to their higher yields in the international capital market compared to US Treasury yields.

U.S. yields fell on Friday after data showed inflation in the world’s largest economy continued to ease, boosting the chances of yet another larger interest rate cut at the Federal Reserve’s November policy meeting.

According to fixed income traders, the African Eurobond market had a positive start last week, driven by optimism following the US Federal Reserve’s interest rate cut.

Analysts have started to project flood of hot monies coming to African economy in the coming months. Additionally, news of China’s stimulus package led to a significant rally in the Asian markets, impacting the African Eurobonds, AIICO Capital Limited said.

The foreign bonds market ended negatively due to a substantial decline in oil prices caused by the possibility of increased oil supplies from Saudi Arabia, overshadowing China’s efforts to stimulate its economy and few profit takings.

Overall, the average mid-yield on the Nigerian bond curve increased by 27 basis points week-on-week, reaching 9.6%. In the FGN bond market, the average yield across tenors rose 7 basis points to 18.5% owing to bearish repricing in the over the counter market.

US 10-Year bonds offer a balance of higher interest rates and lower volatility, suitable for cautious investors seeking long-term gains and portfolio diversification.

The yield on the 10-year US Treasury note held its recent decline to around 3.75% on Monday as soft US economic data reinforced expectations of further Federal Reserve rate cuts. China’s 10-year government bond yield surged to around 2.21%, reaching a three-week high, as investors reacted to the latest PMI reports.

Australia’s 10-year government bond yield held steady at around 3.98% as investors continued to assess the Reserve Bank of Australia’s monetary policy outlook.

FG Releases N350bn To Support Dams, Irrigation Facilities – Minister

FG Releases N350bn To Support Dams, Irrigation Facilities – Minister

Alhaji Atiku Bagudu, Minister of Budget and Economic Planning, says the Federal Government’s Renewed Hope Infrastructure Fund has approved more than N350 billion to fund dams and facility expansion across Nigeria.

Bagudu stated this while fielding queries from journalists shortly after expressing his condolences to former Economic and Financial Crimes Commission (EFCC) Chairman Abul-Rashid Bawa on the death of his mother in Birnin Kebbi on Sunday.

”The flooding is a dramatical change, it is a global challenge, and we saw what happened in Borno, among other states.

”If you watch footages coming from around the world, particularly in Europe, you will see a lot of flooding incidences.

”Climate change is real, lucky enough, President Ahmed Bola-Tinubu, recognised it, and took proactive steps where money was given to states.

”A number of interventions have been approved by the president, in addition to numerous timely release of Federal Allocation Account money.

”The federal government allocated N3 billion to each state of the federation to mitigate the effects of flooding.

”Gov. Nasiri Idris of Kebbi has intimated me that the state has taken possession of its share of the fund.

”The federal government, had in the Federal Executive Council last week, approved over N350 billion under the President’s renewed hope infrastructure fund to support dams and expansion of irrigation facilities,” he said.

Bagudu also announced that the council has approved N900 billion for the Kebbi component of the Sokoto-Badagry High Way, stating, “It is the single biggest contract awarded under the current administration.”

According to him, the state’s Koko/Besse Local Government has given another sanction for the development of the Zaria Kala-Kala road.

The road, he claimed, connected to other roads, including the granted Melando-Warra in Birnin Yauri, Ngaski local government area of the state.

”Kebbi is blessed, we are lucky that infrastructural projects, among other numerous interventions in agriculture, animal husbandry, hospitals, schools, will compliment the ongoing developmental projects taking place in the state,” Bagudu observed.

He commended Gov. Idris, for his positive impact on uplifting the living standard of the people while steering the affairs of the state.

“I am also praising the governor for taking necessary action to bring relief to all communities affected by flooding and encouraging unrelenting cultivation of crops among farmers for self sufficiency in food production”, the minister said.

NGX Drops N267bn As Investors Sell MTN, OANDO Shares

NGX Secures Weight As Investors Wealth Increases By N120bn

Stock Exchange Closes Trading Week With N30bn Gain

The total worth of stocks investors on the Nigerian Exchange (NGX) increased by around N120 billion due to bargain hunting, which pushed key indicators higher.

Despite rising interest rates, investors remain focused on the equity market ahead of earnings season, despite the strong yield on fixed-interest securities investments.

The Lagos bourse All-share index (ASI) climbed 0.21% to close at 98,458.68 points on Friday, up from 98,247.99 the previous week.

Stockbrokers said that bulls dominated three of the five trading sessions. Market capitalization increased to ₦56.7 trillion, with a year-to-date return of 31.7%, up from 31.4% the week before.

Activity level varied on weekly comparison basis as average volume traded rose 42.7% to 663.7 million units while average value traded fell 4.5% to ₦9.2 billion.

The volume chart was led by FIDELITYBK (305.7 million units), TRANSCORP (256.9 million units), and UBA (160.4 million units). Meanwhile in terms of value traded, FIDELITYBK (₦4.9 billion), FBNH (₦4.7 billion), and UBA (₦4.1 billion) topped the chart.

The gaining streak was driven by positive momentum in ELLAHLAKES (+59.74%), REGALINS (+53.33%), and FLOURMILL (+22.89%). Other gainers include FIDELITY (+10.3%), UBA (+6.2%), SUNUASSU (+9.2%), and PRESTIGE (+4.0%).

The losers chart was led by CAVERTON (-27.37%), MULTIVERSE (- 19.64%) and OKOMUOIL (-13.10%).

In a market report, Afrinvest Capital Limited said AFR-ICT and Consumer Goods indices lost 1.5% and 0.1% owing to price depreciation in MTNN (-4.4%), CHAMS (-3.3%), CARDBURY (-9.4%), and INTBREW (-8.9%). instrument declined by 35bps to 22.6%.

Sectoral performance was mixed, as 2 sector indices closed positive. The Oil and Gas (+3.28%), Banking (+2.45%) and Insurance (+1.43%) indices advanced due to buying interest in SEPLAT (+10.00%), UBA (+6.19%) and MANSARD (+1.85%), respectively.

Conversely, the Consumer Goods (-0.15%) and Industrial Goods (-0.04%) indices closed in the red following sell-offs in INTBREW (-8.86%) and WAPCO (-0.68%), respectively.

Overall, the equities market capitalisation of the Nigerian Exchange increased by about N120 billion week-on-week, indicating a positive change of 0.21% to close at N56.58 trillion.

NGX Drops N267bn As Investors Sell MTN, OANDO Shares

FG Presents CNG Buses To Labour, Students

On Sunday, President Bola Tinubu’s government handed 64 Compressed Natural Gas (CNG) buses to Labour and student leaders at the State House in Abuja.

The unveiling of the buses fulfills the government’s commitments made during talks on the increased minimum wage and ways to alleviate people’s suffering.

This is a modal window.The media could not be loaded because the server or network failed, or because the format is incompatible. It should be noted that in July, President Tinubu vowed to provide 36 Compressed Natural Gas (CNG) buses to the country’s trade unions.

The President made the announcement during his meeting with the leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to discuss the new minimum wage for Nigerian workers.

According to the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the move is part of efforts to ameliorate the high cost of living by workers.

He added that the 36 CNG-powered buses have a sitting capacity of 100 each.

The presentation of the buses, as promised, was done on behalf of the federal government by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Sunday, 29th September.

Meanwhile, the Coalition of Northern Groups (CNG) has expressed its disapproval of the recent increase in the price of Premium Motor Spirit (PMS), commonly known as petrol or fuel.

Naija News reports that the latest price adjustments, enacted by the Retail Management of the Nigerian National Petroleum Company Limited (NNPCL), have seen prices rise from ₦568-N617 to a range of ₦855 to ₦897 per litre, depending on the geographical area.

Independent marketers have subsequently revised their prices, setting them between ₦930 and ₦1,200 per litre.

This price surge has significantly affected many Nigerians, leading some to resort to long-distance walking and others to miss work due to the escalated transportation expenses.

In a statement released on Thursday, Comrade Jamilu Aliyu Charanchi, the National Coordinator of CNG, remarked that an increase in fuel prices effectively results in artificial inflation of the costs of goods and services across the nation.

CBN Auctions OMO Bills To Investors At 24.36% Interest Rate

Dangote Set To Transport Refined Products By Sea — Official

Dangote Group has said that it intends to transport refined petroleum products via sea. Fatima Wali-Abdurrahman, Senior Adviser to the Group President on Special Projects and Strategic Relations, made the announcement in a statement released on Sunday. She mentioned the construction of a jetty in the Lekki Free Zone to accommodate bulk cargoes throughout the refinery’s growth.

“Today, we are exporting our products to many African countries through the seaport. We also plan to ease the pressure on the roads from the refinery by transporting finished petroleum products to other ports along the Nigerian coast by sea, for further distribution to the hinterland,” she said.

According to the group, this initiative aims to alleviate pressure on road networks while facilitating exports to other African countries.

The statement also stated that the Dangote Group, a major sponsor of the trade fair organised by the Abuja Chamber of Commerce and Industry, attracted a large crowd eager to learn about its state-of-the-art oil refinery, which recently commenced discharging petroleum products.

The statement added that many attendees explored the company’s various business units, including Dangote Fertiliser, Dangote Sugar, NASCON (Dangote Salt), and Dangote Cement.

Wali-Abdurrahman said participants were keen to discover opportunities within the company. The statement quoted a participant, Peter Ibrahim, as saying, “I am here at the Dangote booth to find out what business and job opportunities are available at the Dangote Refinery. We know the company must have created several opportunities.”

Similarly, cement dealer Sale Sagir, remarked, “Let me be honest. I came to this trade fair because of the Dangote Group. I sell cement, but now I have come to find out what it takes to be a distributor of other products, especially the Dangote Petroleum products.”

Wali-Abdurrahman also highlighted the company’s investment in Compressed Natural Gas, stating, “To reduce our carbon footprint and costs, over the past decade, we have converted about a third of our fleet. This is an ongoing process, till we convert the entire fleet.”

The ACCI President, Chief Emeka Obegolu, commended the Dangote Group for its significant role in Nigeria’s industrialisation.

Represented by Vice President Legal, Aisha Abdullahi, he remarked on the company’s “unwavering commitment to Nigeria’s development, adding, “The taxes paid by the group have contributed significantly to national revenue, funding infrastructure projects and social programmes that benefit millions of Nigerians.”

Sales Pressures Pushes Yield On Nigerian Bond To 18.74%

Nigerians Now Enjoy 20 Hours Of Daily Electricity Supply- Minister

Govt. To Electrify 5m Households By 2030 - Buhari

The Minister of Power, Adebayo Adelabu, has said that more than 40% of Nigerians now enjoy over 20 hours of electricity daily. He said this in a statement on Sunday detailing a review of the Ministry of Power’s activities over the past year.

Adelabu emphasized that these achievements are part of the government’s broader effort to provide stable electricity to households and industries across the country.

Power generation hits 5,500 megawatts

Adelabu detailed the steps taken by the Ministry of Power to accomplish this goal. One important accomplishment is increased power generation, which now exceeds 5,500 megawatts.

He explained that the ministry is dedicated to making additional improvements by the end of the year.  

He said: “Upon resumption, we had an installed generation capacity of 13,000 megawatts, but we were only producing, transmitting, and distributing about 4,000 megawatts of power to the entire country.  

“This was quite low and unacceptable given our population and level of economic activities. Therefore, we were determined to improve the situation.

“At that time, there was an epileptic supply. Almost all customers, both residential and commercial, could not be guaranteed 12-15 hours of supply. Additionally, the adoption of renewable energy was skeletal in terms of solar or wind sources of energy.

“Between then and now, which is about a year, there has been significant improvement. Today, our installed capacity is over 14,000 megawatts of power due to the addition of the newly commissioned Zungeru hydroelectric power plant and improved capacity of some of the existing power plants.

“Moreover, the major achievement is the fact that today we generate over 5,500 megawatts of power, we transmit and distribute it, and over 40% of customers today enjoy over 20 hours of regular power supply across the nation. You can see that there is a significant improvement between when we came in and now, which we intend to improve further.”

He attributed the success to various infrastructural upgrades, such as the completion of the Zungeru hydroelectric power plant and the implementation of the Presidential Power Initiative. The minister also highlighted the signing of the new Electricity Act in June 2023, which decentralized and liberalized the power sector, allowing states and private entities to participate in electricity generation, transmission, and distribution.

10 million Meters In Five Years- Plan

Despite the progress made, Adelabu acknowledged the challenges the sector faces, such as the significant metering gap, where millions of Nigerians remain without meters.

He highlighted the Presidential Metering Initiative, which aims to install 10 million meters over the next five years to address the issue.

Adelabu said: “There is the issue of the meter gap that we have. We all know that out of almost 13 million customers that we have in the industry, over 7 million customers are still without meters and are on estimated billing. We said this is not the way to go.

“We must correct this, which is why President Bola Ahmed Tinubu set up the Presidential Metering Initiative, which has the mandate of installing over 10 million meters within the next five years, at least 2 million meters every year. We are making progress on this. The funds are being provided, and we will soon go into the acquisition of these meters. This would reduce the meter gap.”

He added that the initiative, along with support from the World Bank and the African Development Bank (AfDB), is expected to improve the transparency and efficiency of billing.

Adelabu affirmed that the Ministry of Power remains dedicated to improving Nigeria’s electricity supply further.

Sales Pressures Pushes Yield On Nigerian Bond To 18.74%

Only 26% of Nigerian Workers Have Pension And Health Insurance- NBS

7 Things To Know About Contributory Pension Scheme

According to the Nigeria Labour Force Survey published by the National Bureau of Statistics (NBS), only 26.3% of Nigerian workers will have pension and health insurance in 2023. According to the survey, Zamfara state in the Northwest had the highest number of employees with health insurance and pension plans, at 65%, while Abia had the lowest, at 3.9%.

According to the survey, 26.3% of Nigerian employees are eligible for pension and health insurance plans. Zamfara state had the highest (65.9%) and Abia had the lowest (3.9%) among wage workers.

The low number of employees with pension and health insurance plans in Nigeria is due to the country’s large informal industry. According to the study, about 92% of Nigeria’s employed population are engaged in informal employment.

The informal sector is made up of firms with open entry and exit, complete market information, and market forces that operate outside of formal restrictions, similar to a competitive market. These businesses often lack formal organizational structures, generate low and unpredictable earnings, confront business uncertainty, and do not provide social benefits such as pensions to employers or employees. In addition, they frequently fail to keep proper records.

According to the IMF, Nigeria’s informal sector would account for 57.7% of the country’s GDP in 2022, demonstrating its importance to the economy. However, millions of Nigerians in this industry are still excluded from traditional pension schemes, making them exposed to poverty in retirement.

Health insurance, pension plan in Nigeria 

Employee benefits like health insurance, pensions, annual leave, and work-life balance initiatives play a crucial role in enhancing job satisfaction, which can lead to higher productivity and employee loyalty.

The Pension Reform Act mandates that employers with at least 15 employees must participate in a contributory pension scheme. Under this scheme, employers are required to contribute a minimum of 10% of an employee’s monthly salary, while employees contribute up to 8%.

Similarly, the National Health Insurance Authority Act requires health insurance for all employees residing in Nigeria. Employers with more than five staff members must enroll in a health insurance scheme, ensuring contributions are made to the public health insurance scheme of the state where they operate. Alternatively, employers can opt to provide private health insurance for their employees under the same act.

However, enrolment in health insurance has been low when compared to the total population as around 18.7 million people are enrolled according to the National Health Insurance Agency (NHIA).

Stanbic IBTC Transforms Education Landscape With Its Adopt-A-School Initiative In Lisabi Grammar School, Abeokuta

9-Year Bond Yield Surges On Selloffs As DMO Slashes Spot Rates

Next President To Inherit ₦77trn Debt - DMO

Benchmark yields on Nigerian government bonds rose in the secondary market as fixed-income investors reduced their portfolio holdings. Investors responded strongly to the downward spot rate adjustment on new papers at the month’s primary market auction.

Investors continue to expect higher yields on government bonds as a result of the recent increase in benchmark interest rates. However, rates have stayed low as the government works to lower borrowing costs from the domestic market.

According to fixed income specialists, 9-year government bonds experienced the largest selloffs in the secondary market as risk sentiment hampered buying appetite throughout the curve.

Yield on 9-Year FGN bond crossed 21% as investors took profit. Subsequently, the average yield inched higher by 8 basis points to settle at 18.7%, according to Cordros Capital Limited.

The market attributed uptick yield adjustment to recent 50 basis points increase in monetary policy rate. Across the benchmark curve, the average yield expanded at the short (+22bps), mid (+12bps) and long (+5bps) segments.

Investment analysts noted that investors sold off the MAR-2025 (+102bps), FEB-2031 (+38bps) and MAR-2050 (+45bps) bonds, respectively.

Last week, Debt Management Office (DMO) conducted its monthly bond auction told investors, notably banks, pension fund administrators and other market participants.

At the auction, the debt office reopened bond papers worth ₦150 billion, offered a 5-year bond worth N70 billion, 9-year FGN bond worth N50 billion and 9- year bond worth N30 billion.

However, the bid-to-cover ratio dampened to 1.05x from 1.23x in August with a total subscription of ₦414.9 billion while DMO allotted ₦395.1 billion worth of bonds to investors.

Auction results showed that the spot rate on the 5-year bond declined to 19% from 20.3% at the previous auction. Spot rate on FEB 2033 bond plunged to 19.9% from 20.19%, while spot rate for MAY 2033 FGN bond fell to 20% from 21.50% in August.

Analysts anticipate local participants in the bonds secondary market to continue to reprice yields higher to reflect the elevated benchmark interest rate.

In the medium term, Cordros Capital Limited maintains expectation of elevated yields consequent to anticipated monetary policy administration globally and domestically, and sustained imbalances in the demand and supply dynamics.

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Nigeria Must Boost Production To Achieve $1tn Economy — BOI

311,000 Beneficiaries Benefit From Payroll Support Programme - BOI

According to the Bank of Industry, Nigeria needs increase its manufacturing capacity in order to reach a one trillion-dollar economy by 2026.

Isa Omagu, Divisional Head of Services at the BoI, stated this on Saturday at the 2024 annual conference of the Finance Correspondents Association of Nigeria in Lagos, with the theme “Nigeria’s Journey Towards a $1 trillion Economy: Impact of Banks’ Re-capitalisation, Opportunities for Fintechs and the Real Sector”.

He emphasized that the country’s economy was strongly reliant on fiscal and monetary policy, and urged both sides to work together. He also stated that Nigeria’s existing output levels were insufficient, cautioning against overreliance on imports if the country is to attain economic stability.

“To reach a $1tn economy, we must focus on boosting production capacity,” Omagu said, calling for investment in agriculture, infrastructure, and services, which would reduce import dependence and ease forex pressure.

Mr Bello Hassan, Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation, and other stakeholders emphasized the importance of collaboration between banks and Fintech startups in driving real sector growth.

He stated that the current recapitalization program of the Central Bank of Nigeria must be efficiently implemented.

According to Hassan, this is vital to improve Nigerian banks’ resilience, solvency, and capacity to absorb shocks while continuing to assist the nation’s economic development by properly fulfilling their role as the fulcrum of financial intermediation.

He noted the role of strong and well-capitalised banks in supporting the current administration’s bold vision of growing Nigeria’s economy to a $1tn must be appreciated by the relevant players in the financial sector.

“The opportunities and potentials for growth of the real sector depend, among others, on the availability and affordability of financing the economy. To achieve the desired level of financing required by the real sector, the window offered by banks in partnership with fintechs must be adequately harnessed,” he said.

He, however, stressed the need for supervisors to understand the interconnection among the various financial services providers and how their policies and actions can affect the efficiency and optimality of the overall financial system.

The Group Managing Director of United Bank for Africa Plc, Mr Oliver Alawuba has said Nigeria’s journey to a $1tn economy is not just a vision but also a shared responsibility.

Alawuba, who was represented by the Executive Director of Finance and Risk Management, UBA, Ugo Nwaghodoh, called on the banking sector, fintech innovators, the real sector, and regulatory institutions to work hand-in-hand to drive this transformation.

“We are on the cusp of a new era, one that will be defined by innovation, resilience, and sustainable growth. Let us take this opportunity to collectively shape the future, ensuring that the Nigeria of tomorrow is one where prosperity is shared, opportunities abound, and our economy stands as a beacon of growth on the global stage,” he said.

According to him, Nigeria has the largest fintech market in Africa, populated by a rapidly growing number of start-ups offering solutions that address the inefficiencies of the traditional banking sector.

Sales Pressures Pushes Yield On Nigerian Bond To 18.74%

Nigerian Treasury Bills Yield Increases As Discount Rates Spikes

LBS Discloses FG's Targets With Naira Redesigning

The average yield on Nigerian Treasury bills rose as investors in the secondary market profited from the rate hike. Sell side activity was observed throughout the Nigerian Treasury bill tenors as investors sought higher returns on naira assets due to rising interest rates and an inflationary environment.

Cordros Capital Limited reported a 45 basis point increase in the average yield across all instruments, to 25.1%, in its market update. Traders also noticed that the average yield in the Nigerian Treasury bills category jumped by 34 basis points, to 25.2%.

A similar selloff trend in the OMO bills category increased the average yield by 64 basis points, closing the week at 25.0%. Last week, the apex bank conducted a primary market auction for Treasury and OMO bills despite tight liquidity conditions in the financial markets.

At the Treasury bills auction, the Central Bank offered N227.54 billion across standard maturities to investors for subscription last week. The offer was split into N28.15 billion for the 91-day, N25.58 billion for the 182-day, and N173.81 billion for the 364-day bills, according to auction details

Analysts said aggregate subscription settled lower at N304.27 billion versus N563.17 billion demanded level seen in the previous auction, with a bid-to-offer of 1.3x. The CBN allocated exactly what was offered across standard maturities to investors. The spot rate on 91-day Treasury bills was priced higher to 17%, from 16.63%.

Auction results also showed that spot rate on 182-day bills was priced at 17.50%, up from 17.00% at the previous auction. One year Treasury bills was sold at spot rate of 20.00%, up from 18.59%.

Meanwhile, the CBN also conducted an OMO auction on Thursday, offering instruments worth N500.00 billion. The OMO auction was split across standard maturities as N75.00 billion for the 96-day, N75.00 billion for the 194-day, and N350.00 billion for the 362-day—to investors.

Details from the auction results showed that total subscription settled at N252.90 billion for the 362-day, while no demand was seen for the 96-day and 194-day tenors. Naira Rises against US Dollar Ahead of Sept. FX Auction

Eventually, the Central Bank allotted exactly the size of its offer to investors who sought to bet at a stop rate of 24.36%, up from 21.80%.

Sales Pressures Pushes Yield On Nigerian Bond To 18.74%

FG Makes Plans For Tax Incentives For MSMEs

SME

The federal government has reaffirmed its commitment to assisting micro, small, and medium-sized businesses with tax breaks designed to promote growth and sustainability in the sector.

This was recently revealed by the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji, who was represented by his special adviser, Collins Omokaro, at the inaugural MSME Finance Awards hosted by The Economic Forum Series in collaboration with Nairametrics and DigiComm Enterprises.

He explained that the federal government was committed to create an environment that would support MSMEs by giving tax breaks and exemptions.

“The Federal Government, through FIRS, has introduced reforms to reduce the financial burden on MSMEs. Small businesses, as classified under the Company Income Tax Act, are exempt from companies income tax and are also exempt from the obligation to collect value-added tax,” the FIRS boss said.

He noted that the government’s tax policies were designed to support MSMEs by reducing the complexity of tax compliance, encouraging greater participation in the formal economy, and ensuring that more businesses benefit from tax incentives.

He also revealed that FIRS was considering proposals to further raise the threshold for tax exemptions to bring more MSMEs into the fold.

The MSME Finance Awards, which celebrated excellence in MSME finance, underscored the role MSMEs play in the Nigerian economy.

The Chief Executive Officer of Nairametrics, Ugochukwu Obi-Chukwu, said, “MSMEs are the backbone of the Nigerian economy, employing over 80 per cent of the workforce and driving innovation across various sectors. It is crucial that we continue to support this sector through policies, incentives, and collaboration between the private and public sectors.”

At the event, several organisations were recognised for their contributions to the MSME sector during the awards ceremony. Access Bank was named MSME Bank of the Year for its financial services tailored to small businesses.

Moniepoint emerged as the MSME Microfinance Bank of the Year for its innovative solutions in the microfinance space.

E-Tranzact was recognised as the best in payment security, data protection, and fraud prevention.

Meanwhile, Mastercard won the award for Best in MSME Financial Inclusion, acknowledging its efforts in expanding access to financial services for small businesses.

The CEO of The Economic Forum Series, Jude Ndu, noted that MSMEs are crucial drivers of our economy, and through strategic partnerships, citizens can bridge the gap by providing necessary financial support, mentorship, and capacity building.

In his remarks, the Senior Special Assistant to the President on job creation and MSME; Temitola Adekunle-Johnson, stated that MSMEs were already leveraging digital platforms like WhatsApp, Instagram, and YouTube to expand their reach and drive revenue.

Sales Pressures Pushes Yield On Nigerian Bond To 18.74%

Credits To Government Increased By Over N11tn In August — CBN

Tinubu Orders Osayande To Investigate CBN, Related Affairs

The Central Bank of Nigeria (CBN) said that credit to the Federal Government climbed by N11.33 trillion, or 57.11 percent, to N31.15 trillion in August from N19.83 trillion in July.

According to the CBN’s most recent Money and Credit Statistics, the three tiers of government have borrowed from commercial lenders in varying amounts over the last few months. In June, the credit figure was N23.93 trillion, up from N19.98 trillion in April but less than the N28.38 trillion reported in May.

The first quarter of the year also saw varied levels of borrowing, with credit hitting N23.52 trillion in January, peaking at N33.93 trillion in February, and falling to N19.59 trillion in March.

The steady borrowing trend highlights the Federal Government’s growing reliance on CBN facilities to fund capital projects, debt servicing, and other fiscal obligations. Economic analysts have raised concerns about the long-term sustainability of this borrowing, saying it could further strain the economy and contribute to inflationary pressures.

The report also revealed a dip of N777.13bn or 1.03 per cent in credit to the private sector, which stood at N74.73tn in August, down from N75.51tn in July. In January, private sector credit was N76.48tn but rose to N80.86tn in February.

However, credit dropped to N71.21tn in March. In the following months, it showed modest growth, rising to N72.92tn in April, N74.31tn in May, and settling at N73.19tn by June. In terms of currency in circulation, the total rose to N4.14tn in August from N4.05tn in July, reflecting an increase of N91.08bn or 2.25 per cent.

The combined total for government and private sector credit, along with money in circulation, amounted to N110.03tn in August, up from the previous month’s total, underscoring the ongoing fiscal and monetary dynamics in the Nigerian economy, with government borrowing dominating credit activities, crowding out the private sector. Afrinvest research explained that the CBN was in a difficult position, trying to balance inflation control with growth stimulation.

The Monetary Policy Committee of the CBN recently raised the monetary policy rate by 50 basis points to 27.25 per cent on Tuesday, the fifth consecutive rate hike this year.

Additionally, the cash reserve ratio for commercial banks was raised to 50 per cent and for merchant banks to 16 per cent. Those moves, it was said, were aimed at curbing excess liquidity and stabilising the exchange rate.

“While these policies may help control inflation, they also risk further tightening liquidity in the private sector and increasing borrowing costs, which could slow down economic growth,” Afrinvest warned.

The firm further advised that Nigeria needed a more balanced approach to fiscal management, stressing the need to stimulate private sector activity to achieve sustainable economic development.

Additionally, Nigeria’s total public debt reached N121.67tn in June 2024, up 24.99 per cent from N97.34tn recorded in December 2023.

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FG Starts Electricity Subsidy For All Public Hospitals

FG Guarantees Support for Surgeons
FG Guarantees Support for Surgeons

The federal government said on Sunday that it has begun implementing electricity subsidies for public hospitals across the nation. This comes as Governor of Ogun State, Dapo Abiodun, declared that eliminating the subsidy on Premium Motor Spirit, also known as petrol, saved Nigeria N5.4 trillion.

Tashikalmah Hallah, Senior Adviser of Media and External Relations to the Coordinating Minister of Health and Social Welfare, informed one of our correspondents on Sunday that a power subsidy for public hospitals had begun. Hallah also stated that the government intends to subsidise electricity for private hospitals nationwide.

In August, the Federal Government granted a 50% subsidy for power consumed by public hospitals and tertiary education institutions across the country.

The Minister of State for Health and Social Welfare, Dr. Tunji Alausa, announced that the Federal Government had approved the 50 percent electricity subsidy for public hospitals. According to Alausa, the gesture aims to reduce the running costs for public hospitals and alleviate the impact on patients.

Alausa stated this at the National Neo-Psychiatric Hospital in Barnawa, Kaduna State, while unveiling the Electronic Health Records and Alternative Power Supply at the Lawal Jafaru Isah Emergency Complex.

In April, the Nigerian Electricity Regulatory Commission announced an increase in electricity tariff paid by Band A customers from N68/KWh to N225/KWh, which represented a 300 percent increase.

Band A customer enjoys electricity supply for at least 20 hours per day. Most public tertiary hospitals and education institutions in Nigeria are under this band.

However, many of those institutions had cried out over soaring electricity bills following the new policy.

After a report by The PUNCH on the excruciating effects of these unaffordable bills, the Federal Government, through the Minister of Power, Adebayo Adelabu, promised that the Federal Government would subsidise electricity in hospitals and government-owned education tertiary institutions, even if they are on Band A feeders.

The President of the Nigerian Medical Association, Prof Bala Audu, earlier commended the subsidy but urged the government to consider subsidising electricity for private hospitals.

When contacted on the development on Sunday, Hallah said, “The subsidy for all federal teaching hospitals and medical centres has been started. The issue now is how to subsidise electricity for the private sector. The government is thinking of bringing the private sector into the picture.

“So the subsidy for public hospitals has started, but I can’t confirm what percentage because I don’t have those details, but I’m aware that subsidies for public hospitals have started. There is a plan that private hospitals will also be incorporated, but it has not been finalised,” he said.

Sales Pressures Pushes Yield On Nigerian Bond To 18.74%

Standard Bank Group Limited And MiDA Advisors Partner Nigeria Mortgage Refinance Company (NMRC) In A $228 Million Blended Finance Deal For Mortgage Refinancing in Nigeria

A member of the Standard Bank Group Limited – Stanbic IBTC Capital – and MiDA Advisors join Nigeria Mortgage Refinance Company (NMRC), in announcing a $228 million blended finance deal for mortgage refinancing in Nigeria. The proceeds will be used to make new loans to eligible primary lending institutions by refinancing or prefinancing qualified mortgage loans to borrowers across Nigeria.

This marks the second, large scale housing finance transaction in Africa led by Standard Bank Group Limited and MiDA Advisors within the past two years, securing around $500 million in total capital raise.

To help expand the availability of affordable mortgages in Nigeria; in 2022, NMRC partnered with Johannesburg-headquartered Standard Bank Group Limited, and its member company, Stanbic IBTC Capital Limited, together with U.S. headquartered MiDA Advisors to co-create a $228 million blended finance solution to mobilise long-term financing at scale, out of which will include a $200 million loan from the U.S. International Development Finance Corporation (DFC) to NMRC and a $28 million financing sourced from local financial markets.  Stanbic IBTC Capital Limited and MiDA Advisors are the joint Financial Advisors on this landmark transaction.

This financing will enable NMRC to finance new loans to primary lending institutions that will refinance or prefinance mortgage loans to eligible mortgage borrowers across Nigeria with at least 20% of the loan proceeds targeting informal markets segments. An estimated 40% of the mortgages to be refinanced or prefinanced will be those underwritten to women as borrowers or co-borrowers. Reacting to the approval of this financing, the Managing Director, and Chief Executive Officer of NMRC, Mr. Kehinde Ogundimu, expressed his gratitude and noted that it is a clear proof of NMRC’s positioning as a key institution within the housing ecosystem. “This transaction will certainly enhance our efforts to provide affordable long-term housing finance in a manner that will impact the overall sector. The keen focus on low-income earners, the informal sector, and women is indicative of the direction of our efforts. As an institution, we are committed to driving equitable access to housing credit facilities thus enabling vulnerable Nigerians to achieve their homeownership dreams,” he said.

Also commenting on the transaction, Oladele Sotubo, Chief Executive of Stanbic IBTC Capital Limited, the wholly owned investment banking subsidiary of Stanbic IBTC Holdings PLC said, “Stanbic IBTC Capital is delighted to have worked alongside MiDA Advisors to facilitate this landmark financing to be aimed towards enhancing accessibility and affordability of mortgages in Nigeria. The objectives of the transaction are well within the Standard Bank Group’s purpose in driving Africa’s growth, and we are extremely proud to be party to the transaction.

“This landmark transaction marks a turning point in financing affordable housing in Nigeria” said Mr. Aymeric Saha, CEO of MiDA Advisors. “MiDA Advisors is proud to partner with NMRC and a member of the Standard Bank Group – Stanbic IBTC Capital Limited – to enhance liquidity needs in Nigeria’s affordable housing sector.”

Foreign Investors Interest in Nigerian Eurobonds Increases

Stanbic IBTC Transforms Education Landscape With Its Adopt-A-School Initiative In Lisabi Grammar School, Abeokuta

Stanbic IBTC Holdings Plc has completed a major renovation of Lisabi Grammar School in Abeokuta, Ogun State, as part of its Adopt-A-School initiative. This marks the sixth school to benefit from the company’s commitment to educational development in Nigeria.

The historic Lisabi Grammar School, founded in 1943, has undergone extensive upgrades, including the provision of new computer systems, renovation of science laboratories, construction of a new vocational center which houses ICT, Technical Drawing, Art, Cook and Bake, and Sewing Rooms. These improvements will benefit over 3,400 students and 100 staff members.

Dr. Demola Sogunle, Chief Executive of Stanbic IBTC, emphasized the long-term nature of the programme. “Our Adopt-A-School programme is a marathon, not a sprint,” he stated. “We deliberately chose Lisabi Grammar School for adoption, committing to ongoing refurbishment, revamping, repair, and maintenance of infrastructure over the coming years.”

The renovation project aims to create a more conducive learning environment for students and improve working conditions for staff. Dr. Demola also highlighted the initiative’s focus on human capital development. “Over the next five to seven years, teachers and staff members will be exposed to the latest training techniques, ensuring they are fully empowered to guide the next generation,” he explained.

Professor Abayomi Arigbabu, Ogun State’s Commissioner for Education, Science and Technology thanked Stanbic IBTC for its contribution to education in the state. He encouraged students and teachers of Lisabi Grammar School to make full use of the new facilities.

Stanbic IBTC’s Adopt-A-School initiative has already made significant impact across Nigeria. Prior to Lisabi Grammar School, Stanbic IBTC had adopted schools in Akwa Ibom, Ekiti, Sokoto, Borno, and Gombe states; demonstrating a commitment to diverse geographic representation in their educational support.

The Adopt-A-School initiative is part of Stanbic IBTC’s commitment to corporate social responsibility. By investing in education, the company aims to improve the quality of life for communities across Nigeria.

Foreign Investors Interest in Nigerian Eurobonds Increases

Sales Pressures Pushes Yield On Nigerian Bond To 18.74%

FGN Bond For Jan. 2021 Oversubscribed

Sustained risk-off sentiment on the Federal Government of Nigeria (FGN) bond remained in the secondary market, despite low yields. The Debt Management Office has maintained control over interest rates on FGN bonds as part of its ongoing efforts to keep Nigerian debt servicing costs under control.

Some market critics perceive this as financial repression, pointing out that inflation (33.15%) outperformed the benchmark interest rate (27.25%) in terms of portfolio returns.

The rate of yield repricing has slowed in the fixed income market, and the market expects disinflation to continue in the remaining part of the year in the absence of a shock.

In the secondary market for the FGN Bond market, there was negative trading activity, resulting in a 0.01% increase in the average yield to 18.74%. Bondholder investor selloff activities were observed at the mid-segment of the curve, particularly in the MAY-33.

Fixed income analysts said yields increased on selected papers, specifically the 2031 and May 2033 FGN bonds. Fixed income market analysts at AIICO Capital Limited said most participants remained pessimistic due to the recent interest rate hike.

However, towards the close of the market, a few buyers resurfaced. As a result, the average mid-yield rose by 6 bps. “We expect a similar play at tomorrow’s session, though coupon inflows should drive some buying interest,” analysts said.

Collaborating the sell side activities, Cordros Capital Limited said in a note that the average yield expanded slightly at the short (+1 bp) end following the selloff of the JAN-2026 (+1 bp) bond but closed flat at the mid and long segments.

NGX Drops N267bn As Investors Sell MTN, OANDO Shares

Foreign Investors Interest in Nigerian Eurobonds Increases

DMO Set To Auction N150bn Bond On FG's Behalf

With the intention of maintaining optimal returns, the Nigerian Eurobond attracted foreign investors’ attention in the international market due to improved sentiment. Following the difference in monetary policy between the US Federal Reserve and the Nigerian Central Bank, portfolio adjustments were made across tenures.

Gross domestic product growth in the second quarter, falling inflation, and increased FX inflows have all influenced investor sentiment toward the sovereign Eurobond. While the US cut Fed fund rates by 50 basis points, the Apex Bank increased its interest rate tightening at the same time, a departure from previous trends.

Nigeria’s monetary policy decision has often mirrored the direction of the US Federal Reserve at any particular point in time – a defensive strategy to reduce capital flight.

In Nigeria’s sovereign Eurobonds market, buy pressure at the short, mid, and long ends of the yield curve led to a 0.01% decrease in the average yield to 9.43%, according to Cowry Asset Limited.

The selling mood was driven by declining oil prices and some profit-taking activities, said AIICO Capital Limited. Earlier, the market witnessed selling interests in Nigeria and Angola driven by lower oil prices and some profit-taking.

Nigeria’s debt reached $108 billion, which represents an increase of +123% from 2012, a rate roughly 6x their GDP growth rate. Most of this new debt has been externally obtained, leading to an increase in the risk of the burden of that debt becoming unsustainable.

In 2025, $2.5 billion equivalents are due, including $1 billion+ in US dollars, according to Datagram. In 2027, another $1.5 billion will be due. Global financial pressures have weakened the naira to 1,600 per US dollar, while it was barely above 400 two years ago.

“So, the cost of servicing USD debt in real terms has soared, and this is part of why the central bank is panic-hiking 50bp, causing a tightening that seems poised to be limited, as there is no reason to saber champagne yet.”.

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CBN Auctions OMO Bills To Investors At 24.36% Interest Rate

Tinubu Orders Osayande To Investigate CBN, Related Affairs

At Thursday’s primary market auction, the Central Bank of Nigeria (CBN) sold OMO bills to investors at a spot rate of 24.36%. At the OMO auction, the CBN offered ₦500 billion in conventional maturities: 96-day, 194-day, and 362-day notes.

CardinalStone Securities Limited reported minimal demand, with only ₦252.90 billion offered for the longest-dated product in an emailed communication to investors.

The investing firm noted that investors’ wagers on CBN OMO bills resulted in a bid-to-offer ratio of 0.51x, with the stop rate set at 24.36%.

Crude Oil Prices Drop As Demand Concerns Surpass Supply Risk

NGX Drops N267bn As Investors Sell MTN, OANDO Shares

NGX Records N256bn Loss Last Week

Following days of gains, equity investors lost over N267 billion as a result of sell-side actions on the Nigerian Exchange (NGX). On Thursday, equities market performance indicators fell due to post-rate hike profit taking on stocks that had lately seen considerable price appreciation.

Stockbrokers reported a 0.47% drop in key performance metrics, while year-to-date returns declined due to significant market selloffs. The NGX All-Share Index fell by 463.86 basis points, or 0.47%, to 98,523.56.

This fall ended the market’s four-day winning streak, with investors profiting in several medium- and large-cap firms. Negative equities market drivers include CADBURY, OKOMUOIL, MTNN, OANDO, and others.

Stock analysts said market activities inched lower as the total volume and total value traded for the day dropped by 42.92% and 47.44%, respectively. In its note, Atlass Portfolios Limited said approximately 344.36 million units valued at ₦6,609.14 million were transacted across 9,005 deals.

UBA was the most traded stock in terms of volume, accounting for 8.53% of the total volume of traded in the market. Other volume drivers include ACCESSCORP (7.88%), HONYFLOUR (7.45%), STERLINGNG (7.39%), and ZENITHBANK (4.33%) to complete the top 5 on the volume chart.

UBA also emerged as the most traded stock in value terms, accounting for 11.46% of the total value of trades on the exchange.

FTNCOCOA topped the advancers’ chart with a price appreciation of 9.82 percent. Other gainers include ELLAHLAKES with (+9.80%) growth, DEAPCAP (+9.78%), REGALINS (+8.62%), RTBRISCOE (+8.11%), CONHALLPLC (+5.67%) and twenty-three others.

Trading data showed that twenty-six stocks depreciated on the Nigerian Exchange. CAVERTON was the top loser, with a price depreciation of -9.73%. Other decliners include CADBURY (-9.39%), OKOMUOIL (-7.63%), HONYFLOUR (-5.79%), MTNN (-4.40%), and OANDO (-2.67%).

Despite the downward pressure, the market breadth closed positive, recording 29 gainers and 26 losers. On the other hand, the market sector performance was negative, as three of the five major market sectors went down.

The Banking sector dropped by -0.40% followed by the Oil & Gas sector, down by 0.13% while the Industrial sector lost -0.05%. The Insurance and Consumer goods sectors grew by 0.57% and 0.21% respectively.

Overall, equities market capitalisation of the Nigerian Exchange fell by ₦266.55 billion to close at ₦56.61 trillion.

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Money Market Rates Rises Despite FGN Sukuk Entry

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Money market rates rose significantly despite the fact that inflows from matured FGN Sukuk impacted the financial sector. Transactions remained restricted due to the market’s desire to allocate financing effectively among major players.

According to AIICO Capital Limited, opening system liquidity rose on Thursday as a result of inflows from the FGN Sukuk 2024 maturity. According to Cordros Capital Limited, FGN bond coupon payments resulted in N335.78 billion in inflows into the financial system.

Even with this, interbank rates closed higher as outflows for OMO auction sales during the day by the Central Bank of Nigeria (CBN) weighed on liquidity level in the financial system. The CBN offered ₦500 billion across 96-day, 194-day, and 362-day papers at the primary market auction conducted to drive inflows from foreign portfolio investors into the market.

However, demand was weak, with offers totaling ₦252.90 billion only seen for the longest-dated instrument. Analysts at CardinalStone Securities Limited said this resulted in a bid-to-offer ratio of 0.51x, with the stop rate settling at 24.36%.

In a note, Cowry Asset Limited said the Nigerian interbank offered rate (NIBOR) increased across all maturities, signaling liquidity strain in the financial system on Thursday. Data from the FMDQ platform confirmed that the open repo rate (OPR) and the overnight rate (O/N) increased by 169 bps and 172 bps to 21.97% and 22.67%, respectively.

“We expect the interbank rates to be elevated tomorrow due to the recent OMO auction sale, though the anticipated FGN coupons should support system liquidity,” AIICO Capital Limited said in a note.

Yahaya Bello Faces New N110bn Fraud Charges
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