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Nigeria says working hard to resolve gasoline crisis

In a chat with Nigerians from all walks of life on Sunday evening during the stopover, the Vice President noted that the Federal Government was moving as quickly as it could to solve the fuel crisis and reduce the difficulties Nigerians were facing as a result.

How Jonathan’s officials, cousin shared 27bln proceeds of PHCN sale -EFCC

The Economic and Financial Crimes Commission (EFCC) has narrated how top government officials under the administration of former president Goodluck Jonathan shared 27 billion, part of the proceeds of the sale of Power Holding Company of Nigeria (PHCN) in 2014.

- Nigeria unemployment rate climbs up

Four out of every ten people in Nigeria's workforce were unemployed or underemployed by the end of September, National Bureau of Statistics (NBS) said on Friday.

Why is Jerusalem important, what makes Donald Trump's intervention so toxic

What is the status of Jerusalem? Israel set up its parliament in West Jerusalem when the state of Israel was proclaimed in 1948. The move followed the United Nations’ vote to partition Palestine on the basis of the British pledge known as the Balfour Declaration that paved the way for a homeland for the Jewish people.

- Nigeria's dollar reserves at $34.53 bln as of Nov. 24

Nigeria’s foreign exchange reserves stood at $34.53 billion as of Nov. 24, up nearly 3 percent from a month earlier, central bank data showed on Thursday. The bank did not provide a reason for the increase in reserves, which stood at $33.58 billion at the same date last month.

Thursday 31 March 2016

Nigeria's Forte Oil to raise up to 100 bln to fund expansion

Nigeria's Forte Oil said it plans to raise up to 100 billion naira ($503 million) to expand its operations in the country, Africa's biggest economy, and will seek shareholder approval at its annual general meeting on April 26.
The company may raise the funds through a rights issue, bond or share offering, or global depository receipts, according to a statement issued on Thursday.
"The capital raising is part of our preparations to take advantage of opportunities in the economy," Akinleye Olagbende, Forte Oil's chief compliance officer, told Reuters.
Olagbende said the company could explore opportunities in the upstream sector of the oil industry and tap into other viable businesses to bolster its bottom line.
In January, Forte Oil reported a profit before tax of 7.02 billion naira for its 2015 financial year compared with 6.01 billion naira the previous year.

Wednesday 30 March 2016

Nigeria to raise 219 billion naira in Treasury bills

Nigeria plans to raise 218.89 billion naira in short-dated treasury bills on April 7, the central bank said on Wednesday.
The bank said it will sell 55.40 billion naira of three-month and 33.49 billion naira of six-month bills and 130 billion naira of one-year debt, using the Dutch auction system.
The results of the auction are expected to be released on Thursday. According to the central bank's issuing calendar for treasury bills, the same amount of bills on offer will also be due for repayment the day of the auction.
Nigeria issues treasury bills as part of a borrowing plan to finance part of the government budget deficit, help manage liquidity in the banking system and curb inflationary growth.

US, Nigeria in talks on currency control, devaluation

The United States government is ready for talk with its Nigerian counterpart on the need to make the naira exchange rate flexible in a bold move to increase economic activities in Africa’s biggest economy.
President Muhammadu Buhari is slated to travel to the US on Wednesday to join other world leaders on discussion on Nuclear, but American officials are willing to take advantage of the summit to discuss other economic related issue with the Nigerian leader.
President Buhari

Nigeria’s central bank had pegged the local currency at a fixed rate of 197 to the dollar since last year February in the wake of falling global crude oil prices, which has slashed more than half foreign exchange revenue accruing to the West African country.
However global investors, targeting the Africa’s biggest crude producer as investment haven have persistently called for the devaluation of the naira and the open up of the forex market by the government to ease transactions.
President Buhari has for the umpteen time submitted that he was not ready to devalue the naira, hinging his argument on the fact that Nigeria is an import dependant country and as such it could not benefit the common man on the street to devalue the currency.
U.S. Assistant Secretary of State for Africa, Linda Thomas-Greenfield, had told an audience at the U.S. Institute of Peace this week that Nigeria should ensure that the value of the naira currency versus the U.S. dollar was "more realistic."
She said the US would press Nigeria in talks this week to adopt a more flexible foreign exchange rate to boost growth and investment in Africa's largest economy.
"While most people complain about the possibility of there being devaluation, people are already operating on a devalued currency, and the only people who are not, are people who are doing it officially," Thomas-Greenfield said.
"Our recommendation is, and we will have discussions about it ... that they should look at the exchange rate and try to make the exchange rate more realistic to what the value of the naira is to the dollar," she added.
She spoke before talks in Washington to be launched by Secretary of State John Kerry on Wednesday and which will focus on Nigeria's economy, security and development.
Nigeria faces its worst economic crisis in decades as the falling price of oil has slashed revenues, prompting the central bank to peg the currency and introduce curbs to protect foreign exchange reserves, which have fallen to an 11-year low.
Some members of Nigeria's central bank monetary policy committee have said the naira should be devalued.
Thomas-Greenfield said the parallel currency market in Nigeria was "alive and well," warning that a rigid exchange rate, capital controls and import bans could undermine President Buhari's efforts to expand economic growth and fight corruption. Buhari has rejected the idea of devaluing the naira.
"Capital controls that limit access to foreign exchange rewards insiders and undermines the stated goals of Nigeria to increase domestic production because both Nigerian and expat investors alike tell us many businesses are unable to obtain the capital to purchase badly needed intermediate goods," she said.
The naira trades some 40 percent below the official rate on the black market versus the dollar. The central bank last year pegged the exchange rate to curb speculative demand for the dollar and conserve foreign exchange reserves after it restricted access to hard currency for imports of certain items, frustrating businesses.
The International Monetary Fund called on Nigeria to lift the curbs and let the naira reflect market forces more closely, as the restrictions have significantly affected the private sector



Thursday 24 March 2016

Nigeria's overnight interbank closes higher at 13 pct

Nigeria's overnight interbank lending rate closed at 13 percent on Thursday, down from the initial quote of 20 percent after fresh injection of cash call payment to joint crude oil production partners by government hit the banking system.
In early trade, the overnight lending rates was quoted at 20 percent after the central bank recalled some 400 billion naira ($2.02 billion) from the banking system to meet a new cash reserves ratio (CRR) on deposits.
On Tuesday, Nigeria's central bank raised its benchmark interest rate from 11 to 12 percent, and the cash reserve ratio for commercial banks to 22.5 percent from 20 percent, to try to curb rising inflation.
Traders said funds placers in the market were quoting between 20 and 25 percent for overnight placement, while takers are quoting between 7 and 10 percent," one dealer said, adding that no deals had yet been done on the rates being quoted.
"We have some deal done on overnight placement at 10 and 15 percent toward the close of the market," a senior dealer said.
Traders said the payment of cash call to joint oil production partners and expectations of additional cash from budgetary allocations to government agencies further gave the market a breather.
Overnight placement closed at 7.33 percent on Wednesday, while the Open Buy back (OBB) closed at 6.75 percent.
The total commercial lenders' credit balance with the central bank stood at 320.9 billion naira on Thursday, up from 217 billion naira last week.
The interbank rate reflects the level of naira cash liquidity in the banking system.

















Traders said there was additional cash outflow for premium payments to the Nigerian Deposit Insurance Corporation (NDIC), which further put pressure on liquidity in the system and forced lending rates up.

Nigeria raises 115 bln naira in Treasury bills at higher yields

Nigeria sold 114.97 billion naira ($579.05 million) worth of three-month to one-year treasury bills on Wednesday at higher returns than in its previous auction, the Debt Management Office (DMO) said on Thursday.
The debt office said 18.12 billion naira of three-month paper was sold at 5.99 percent, up from 5.74 percent at a sale on March 3.
Emefiele, CBN Gov

It raised 13.68 billion naira of six-month debt at 8.30 percent against 7.95 percent, while a total of 83.17 billion naira of one-year paper was sold at 9.55 percent compared with 9.15 percent previously.
Total subscription fell to 323.47 billion naira from 409.84 billion naira at the previous auction.
The central bank on Tuesday raised its benchmark rate to 12 percent from 11 percent, having cut rates only four months ago by 2 percentage points, and lifted the cash reserve ratio for commercial banks to 22.5 percent from 20 percent.
Yields on fixed income paper rose after the central bank rate hike. Three-month bills closed at 7.28 percent on the secondary market on Wednesday, up from 4.92 percent before th rate rise.
Six-month paper traded at 8.97 percent, up from 6.84 percent on Tuesday, while one-year paper closed at 10.01 percent against 7.77 percent previously.
Africa's biggest economy issues treasury bills to banks and non-financial institutions to help ease government cash flow, manage banking system liquidity and curb inflation.

Wednesday 23 March 2016

Nigerian bond yields rise after rate hike aimed at luring investors

Nigerian bond yields spiked across the curve on Wednesday after the central bank unexpectedly tightened monetary policy in an about-turn to curb inflation and attract foreign investors.
The central bank on Tuesday raised its benchmark rate to 12 percent from 11 percent, having cut rates only four months ago by 2 percentage points, and lifted the cash reserve ratio for commercial banks to 22.5 percent from 20 percent.
Yields on the benchmark 20-year bond rose 55 basis points (bps) to 12.7 percent while the 10-year yield climbed 45 bps to 12.65 percent. The yield on five-year paper, the most liquid maturity, gained 41 bps to 11.7 percent.
"The MPC has signalled a tightening and rates have gone up. Lenders can place their funds with the central bank at 7 percent so why buy treasury bills at lower yields?" one trader said.
On Tuesday, central bank governor, Godwin Emefiele, said extra liquidity had not translated into more lending and cited inflation, at a 3-1/2-year high of 11.4 percent last month, and well above the central bank target of 6 percent to 9 percent.
Nigeria is going through its worst economic crisis for years due to a slump in crude prices which has weakened its naira currency and slashed government revenue. Oil exports account for about 70 percent of national income.
Banks were quoting 10 percent on the interbank overnight lending market, a jump from Tuesday's 4.8 percent before the central bank rate decision. There were no deals on Wednesday.
The stock market, which has the second-biggest weighting after Kuwait on the MSCI frontier market index, bucked two day of gains to shed 1.19 percent, as domestic funds switch to bonds, traders said.
Traders estimated the new cash reserve requirement will soak up between 350 billion and 400 billion naira. The central bank is also selling 114.97 billion naira in treasury bills to further drain liquidity.
The central bank vowed to keep the exchange rate stable despite sharp falls on the black market - some 40 percent below the official rate - due to a shortage of dollars.
"Part of the central bank's intention in the rate hike is to attract foreign portfolio flow (FPI). However, I do not think this will be achieved because the forex policy is unchanged. Until this happens, we will
 see very little FPIs," Vetiva Capital's head of research, Pabina Yinkere, said.

Tuesday 22 March 2016

Nigeria central bank raises benchmark interest rate to 12 pct

Nigeria's central bank raised the benchmark interest rate from 11 to 12 percent, Central Bank Governor Godwin Emefiele said on Tuesday.
The bank also raised the cash reserve ratio for commercial banks to 22.5 percent from 20 percent. And it held the liquidity ratio at 30 percent.

IFC, EIB and Ecobank Deepen Partnership to Boost SME Finance across Africa‏

The International Finance Corporation (IFC), a member of the World Bank Group, the European Investment Bank (EIB) and Ecobank Transnational Incorporated (ETI), parent company of the Ecobank Group and leading pan-African full-service banking group, today signed a landmark
risk-sharing agreement that will help fill the gap in financing for small and medium sized enterprises in some of Sub-Saharan Africa’s poorest and most fragile countries.
Under the agreement, EIB, which is already a key partner in IFC’s Global SME Finance Facility, will join IFC’s existing risk-sharing facility with ETI. The two institutions launched that facility in May 2015. EIB and IFC will share 25 percent of the risk in the $110 million facility, alongside ETI. The facility is designed to overcome the challenges of lending to smaller businesses which have a higher risk profile.
Speaking at the sidelines of 2016 Africa CEO Forum in Abidjan, IFC’s Director for Western and Central Africa Vera Songwe said “SMEs in Africa face a huge funding gap, and partnerships like this between IFC, EIB and ETI are critical to helping these SMEs and economies to grow and create
jobs. By leveraging IFC’s wide network of partners, the unique structure of the Global SME Finance Facility is able to target the finance gap more effectively than a single IFI, DFI or donor can on its own.”
Ambroise Fayolle, Vice President, EIB, said “As the EU bank, the European Investment Bank is strongly committed to supporting private sector investment in Africa. The new agreement signed today will directly benefit SMEs across Sub-Saharan Africa, including in Côte d’Ivoire, fostering
sustainable development and job creation. Every year, the European Investment Bank invests Euro 2.5 billions in Africa to enhance access to finance for SMEs and micro-enterprises, to develop social and much needed economic infrastructures, and to promote climate action”
Ade Ayeyemi, Group Chief Executive Officer of Ecobank, said “This agreement buttresses our continued commitment at Ecobank to supporting small and medium scale enterprises in Africa. Their financing and growth is an important part of the development of the private sector in Africa and the
overall growth of our economies.”
The risk-sharing facility agreement signed today will see IFC, EIB and EIB collaborate in countries where more than 50 percent of the population live in poverty, unemployment is high and infrastructure is poor, which exacerbat the operating conditions for smaller businesses. The facility
will target SMEs in Burundi, Chad, Côte d’Ivoire, Democratic Republic of the Congo, Guinea, Mali and Togo.
IFC and Ecobank enjoy a long-standing collaboration dating back to 1993.
ETI’s unparalleled network across Africa has helped extend financial access in difficult environments at a scale that few other IFC-partner financial institutions can match.
The EIB is the long-term lending arm of the EU and a key IFC partner. IFC and EIB co-invest in many projects around the world and developed a particularly strong partnership during the 2008 financial crisis. EIB contributed $100 million to the Global SME Finance Facility in 2014, with
the particular objective of targeting SMEs in Africa.
The Global SME Finance Facility is a blended finance vehicle which integrates both investment and advisory services to help banks reach more SMEs, launched in April 2012 in response to a call from the G-20 to bridge the trillion dollar SME financing gap. The Facility is truly unique as it mobilizes funding from donors, international finance institutions and the private sector, to help banks de-risk and scale up SME lending.
The facility targets SMEs that don’t have access to finance, including women-owned SMEs, agriculture and climate-related businesses and those in fragile states.
The facility has a wide geographic focus covering all IDA countries, and has already committed to 92 projects in 27 countries, 15 of which are classified as fragile and conflict affected states. By the end of December 2015, the facility had already made more than 100,000 SME loans, worth a total of $6,4 billion. Its unique structure has allowed it to make some life-changing investments. The United Kingdom’s Department for International Development (DFID) was the facility’s first partner, with a
$120 million contribution to both advisory services and blended finance.
Since then, IFC has committed $595 million to projects under the Facility, up from its original commitment of $200 million.

Tanzania searches for "ghost workers" on public sector payroll

Tanzanian authorities have launched a national audit to find "ghost workers" and remove them from civil service payrolls under a corruption crackdown ordered by the president, a minister said.
The public sector wage bill has escalated sharply over the past few years, analysts say, partly because of the numbers of people registering fake names to collect extra wages.
A 2015 audit found the government had paid 141.4 billion shillings ($64.80 million) to fake workers over that year.
"We are conducting an audit of employees across the entire civil service to establish the scale of the problem and cut ghost workers from the payroll," Angellah Kairuki, Tanzania's minister for public service management told Reuters.
Businesses have long said corruption and government inefficiency were major obstacles to investing in Tanzania, which ranked 117 out of 168 countries in Transparency International's 2015 index of least corrupt countries. No. 1 is deemed the least corrupt.
Tanzanian President John Magufuli promised to focus on fighting corruption after taking office in November. Last week he threatened to sack cabinet ministers who do not declare their assets or failed to sign an integrity pledge.
He has already dismissed several senior officials, including the head of the government's anti-graft body, the chief taxman, a senior rail official and the head of the country's port authority.
Last month, the government spent 573.7 billion Tanzanian shillings ($263 million) to pay the salaries of 556,418 civil servants - equivalent to more than half the government revenues taken in over the same period.
*First published by Reuters

Nigeria's parliament to start debating petroleum bill next week

Nigeria's Senate president said on Monday that the country's parliament would start debating next week an amended Petroleum Industry Bill (PIB), a much-delayed plan to overhaul the vital energy sector hit by graft and mismanagement.
President Muhammadu Buhari has made it a priority to get approval for the PIB, which has been in the works for a decade. The bill is meant to change everything from taxes to overhauling state oil firm NNPC, environmental rules and revenue sharing, but its comprehensive nature has caused disputes among lawmakers.
Senate President Bukola Saraki said the House of Representatives and Senate would discuss the bill simultaneously from next week on to speed up its passage, according to a statement from his media office.
"The message from this is that the National Assembly, the Senate and House of Representatives, are working closely together," he said in the statement. "For the first time we are both committed to work together as one to achieve results."
He gave no details on the PIB.
Last month, state Oil Minister Emmanuel Ibe Kachikwu told Reuters that NNPC was in talks with the Senate to speed up the process by splitting the PIB into three parts covering governance, taxation and business items such as oil block licensing.
*First published by Reuters

Nigeria's NNPC withheld $25 bln between 2011 and 2015 - RMAFC

Nigeria's state oil company failed to remit 4.9 trillion naira ($25 billion) to the public purse between January 2011 and December 2015, the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) said on Tuesday.
It is the latest announcement on the issue of remittance by the Nigerian National Petroleum Corporation (NNPC) in recent days. Last Monday the auditor-general said 3.2 trillion naira was not remitted in 2014, which NNPC later denied. nL5N16O5CM
President Muhammadu Buhari took office in Nigeria last May, saying he would end corruption and mismanagement.
"Records at the Commission's disposal indicate that between January 2011 and December 2015, the total indebtedness of NNPC to the Federation Account was 4.9 trillion naira," said RMAFC, an independent body, in a statement.
Constitutionally, NNPC must hand over its oil revenue - which makes up about 70 percent of national income - and money is then paid back based on a budget approved by parliament. But the act establishing the state oil company allows it to cover costs before remitting funds to the government.
RMAFC said its figure for the money that had not been remitted "included NNPC's claims for subsidy on petroleum products, crude and product losses, strategic reserves and the pipeline maintenance cost".


Friday 18 March 2016

Nigerian interbank rate rises on bonds settlement

Nigeria's overnight interbank lending rate inched up marginally week-on-week to an average 6 percent on Friday, up from 5.5 percent last week, as the naira cash level dropped after payment for bonds and treasury bills purchases.
Nigeria raised 125 billion naira worth of bonds with maturities ranging between 5 and 20 years this week, with settlement due on Friday, while 166.58 billion of treasury bills were issued at the primary market on Wednesday.
Traders said the central bank offered 50 billion naira in the open market operations (OMO) bills on Friday, but had yet to release results.
Liquidity levels dropped further on Friday as commercial lenders scrambled for funds to settle bond purchases and bids for short-dated treasury bills on offer at the open market operations (OMO) window.
Traders said although about 172 billion naira in retired matured treasury bills was repaid on Thursday, cash outflows to settle bonds on will Friday further drain liquidity.
Cost of funds among commercial lenders rose to around 7 percent on overnight placement on Wednesday, but eased to around 5.7 percent on Thursday after the matured treasury bills were repaid.
The total commercial lenders' credit balance with the central bank stood at 217 billion naira by Wednesday from 242 billion naira last Thursday.
"We expect the interbank rate to rise slightly by the middle of next week when banks are expected to make provision for foreign exchange purchase at the central bank intervention by Tuesday, but could ease toward the weekend after budgetary allocation disbursal," one dealer said.
The interbank rate reflects the level of naira cash liquidity in the banking system.

Nigeria raises 125 bln naira in 5-, 10-, 20-yr bonds at lower yields - debt office

Nigeria raised 125 billion naira in local currency-denominated bonds maturing in 2036, 2026 and 2020 at an auction on Wednesday, paying lower yields than at the previous auction on Feb. 10, the Debt Management Office (DMO) said on Friday.
The office said it had sold 40 billion naira of 2036 paper at par with 12.40 percent yield, 40 billion naira of the 2026 debt at 12.09 percent returns against 12.39 percent at the previous auction in February.
It also sold 20 billion naira of the 2020 debt at 11.33 percent against 12.19 percent previously.
The debt office also allocated an additional 5 billion naira of the 2020 maturing debt and 20 billion naira of the 2026 paper to investors in a non-competitive bid outside the auction.
Subscriptions from investors stood at 262.42 billion naira compared with 234.25 billion naira at the last auction.
Africa's biggest economy issues local bonds as part of measures to finance the government budget deficit and also help to manage liquidity in the banking system.
Nigeria said it would borrow about 900 billion naira locally to finance part of the 2.2 trillion naira deficit in its 2016 budget

Thursday 17 March 2016

Africa's richest man Dangote bids for Peugeot Nigeria stake

Aliko Dangote, Africa's richest man, has teamed up with two Nigerian states to bid for a majority stake in Peugeot Automobile Nigeria (PAN) Limited, a local joint venture with the French automaker, the governor of Kaduna State said on Thursday.
Image result for aliko dangote
Dangote

Governor Nasir El-Rufai said the states of Kaduna and Kebbi, along with development lender Bank of Industry (BoI) and Dangote had submitted bids for the stake which AMCON, Nigeria's state-backed "bad bank", is looking to sell.
PAN, the Nigerian assembly plant located in Kaduna State, has Peugeot Citroen as its technical partner with a capacity to assemble 240 cars a day, PAN said on its website.
"We have submitted bids for the carmaker ... with Aliko Dangote on board together with BoI, Kebbi and Kaduna State, we are confident our bid will sail through," El-Rufai told a conference.
El-Rufai did not provide further details. Bids for AMCON's stake closed on Jan. 26.
The billionaire tycoon's Dangote Group is active in cement, oil, food and sugar business, and is also expanding into farming.
Peugeot's executive vice president for Africa and the Middle-East, Jean-Christophe Quemard, met President Muhammadu Buhari in November to discuss reviving local production. Buhari is keen to promote a "Made in Nigeria" industrial policy.
PAN Nigeria Limited was set up in 1972 as a joint venture between the Nigerian government and France's Peugeot, with an annual production of 90,000 cars by the 1980s.
But operations nosedived and debt racked up shortly after the government sold its stake to local core investors in 2006, as cheap, imported, second-hand vehicles from Asia and poor manufacturing infrastructure hurt profits.
Asset Management Corporation of Nigeria, the state-owned "bad bank," owns 79.3 percent of PAN Nigeria Limited, having bought the company's debt and taken some as equity.
The Nigerian government has been pushing automakers to build cars locally, ordering local car distributors in 2014 to come up with plans for new assembly plants and threatening to impose prohibitive import duties.
Rival automakers, Renault-Nissan, South Korea's Kia Motors and Germany's Volkswagen have announced plans to assemble vehicles in Africa's biggest economy.
U.S. carmaker Ford Motor Co <F.N> has partnered with a local car dealer to set up a 5,000 annual capacity assembly plant in Nigeria in November. It plans to produce 10 vehicles a day initially for the domestic market and then develop an export trade across West Africa.

Tuesday 15 March 2016

Nigeria inflation at almost 3-1/2 year high in Feb - Stats office

Nigeria's annual consumer inflation rate rose 11.4 percent in February, 176 basis points higher than in January, to near a three-and-a-half year high, data from the National Bureau of Statistics (NBS) showed on Tuesday.
Africa's biggest economy is facing its worst economic crisis in decades fuelled by the collapse in crude prices, which has slashed government revenues, weakened the currency and caused growth to slow. The economy grew 2.8 percent last year, its slowest pace in decades.
Food prices, which account for the bulk of the inflation basket, climbed by 11.3 percent in February compared with 10.6 percent the previous month, the NBS said.
"All major food groups which contribute to the food sub-index increased at a faster pace during the month," the NBS said in a report.
The NBS expects inflation to end the year at 10.16 percent, above the central bank's target upper limit of nine percent. The price index ended at 9.55 percent last year.
The rate of inflation steadied in January after rising for two consecutive months towards the end of last year.
*First published by Reuters

Monday 14 March 2016

Egypt announces more flexible exchange rate policy as it devalues pound

Egypt's central bank devalued the pound on Monday and said it would move to a more flexible exchange rate policy in an effort to rebalance markets and ease a foreign exchange shortage that had stifled business activity and hit confidence.
Egypt devalued the pound to 8.85 per dollar from 7.73 and simultaneously pumped nearly $200 million into the dollar-starved banking system in a surprise sale.
Dollars

"The Central Bank of Egypt has decided to follow a more flexible policy with regard to the exchange rate, aiming to resolve imbalances in the exchange rate system and restore the circulation of foreign currency inside the banking system in an orderly way," it said in an extensive statement.
It did not explain how the new approach would work but said it expected to rebuild foreign currency reserves to $25 billion by year-end from about $16.5 billion now.
Economists said the moves would encourage foreign investment in Egyptian stocks and treasuries, which have seen an exodus of foreign money in recent years.
"This is great news. You've made my day," said Hany Genena, head of equity research at Beltone Financial, who had long predicted a shift to a more flexible exchange rate.
Cairo's main stock index was up 5.4 percent by 0937 GMT.
Egypt, heavily dependent on imports, has been short of foreign currency since a 2011 uprising ended Hosni Mubarak's 30-year rule, scaring off foreign investors and tourists. Since then, reserves have more than halved, weighing on the pound.
But with tens of millions living in poverty, the central bank had been reluctant to devalue for fear of sparking inflation.
A black market in dollars boomed, which then-central bank governor Hisham Ramez tried to stifle in February 2015, by restricting deposits and withdrawals of foreign currency.
But the move only exacerbated the dollar shortage, making it hard for firms to clear imports, which piled up at ports, while factory output was disrupted by a lack of imported components.
The gap between the official and black market rates widened to unprecedented levels. Having fallen to almost 10 to the dollar in recent weeks, the pound's black market rate was back closer to the official rate on Monday.
Two black market traders told Reuters they would now sell dollars at around 9 pounds. They did not give figures for the volumes of trade.
In the three-month non-deliverable forward (NDF) market, the pound was down almost 13 percent to 9.75 per dollar as expectations of future depreciation receded.
“On the micro level it is not good for me because I have liabilities in dollars, but for the country it will be good for foreign direct investments,” said a financial manager at an investment firm.
Central bank governor Tarek Amer, who took the helm in November, had taken several steps to prepare for devaluation and a more flexible approach.
He initially appreciated the currency by 20 piasters, a move that economists at the time said was aimed at breaking the downward cycle of bets against the pound.
Amer then introduced measures to regulate trade in an effort to cut imports by 25 percent this year and reduce demand for foreign currency. Soon after, he eased the restrictions on the deposit and withdrawal of foreign currency.
To attract currency from abroad, state banks have introduced new dollar- and euro-denominated certificates of deposit for Egyptian expatriates. According to local media, Amer also met investors in London last week to offer a currency hedging option to entice them into Egyptian treasuries.
As markets digested Monday's devaluation, Egypt's two largest state-owned banks said they would offer pound-denominated investment certificates at 15 percent yields in exchange for hard currency.
London-based Capital Economics said the move might cause short-term pain by boosting inflation. "But over time, it should lay the foundations for a period of stronger economic growth," it said in a note.
The devaluation raised expectations of a bigger hike in interest rates at the central bank's next Monetary Policy Committee meeting on Thursday to stabilise the exchange rate and avert dollarisation.
"The central bank affirms that it will follow all developments closely and will not hesitate to use all the tools and authority at its disposal to maintain order in the currency market and stability in price levels in the medium term," the bank said in its statement.
*First published by Reuters

Friday 11 March 2016

Nigerian interbank rate rises on cash shortage

Nigeria's overnight interbank lending rate rose week-on-week to an average of 5.5 percent on Friday, up from 3.5 percent last week, as naira cash dries up in the banking system after payment for dollar and treasury bills purchases.
Nigeria issued 160 billion naira worth of 213-day treasury bills at an open market operations (OMO) auction on Monday at 7.75 percent returns.
The central bank also directed commercial lenders on Tuesday to pay for their dollar purchases 48 hours in advance of its Thursday intervention in the official interbank forex market, which further drained cash from the system and led to a hike in the cost of borrowing among banks.
The central bank usually intervenes once a week in the official interbank foreign exchange market to provide dollars for eligible importers, while it requires commercial lenders to fund its naira account 48 hours ahead of the intervention.
The total commercial lenders' credit balance with the central bank stood at 242 billion naira by Thursday, down from 439 billion naira last week.
"Interbank lending rate is expected to rise slightly early next week because of treasury bills and bond auctions on Wednesday, which may further drain liqudity from the banking system," one trader said.
Nigeria plans to raise 100 billion naira in local currency denominated bonds with maturities ranging between 5 and 20 years on March 16 and around 166.59 billion naira in treasury bills same day.
The interbank rate reflects the level of naira cash liquidity in the banking system.
*First published by Reuters

Nigerian tribunal adjourns asset declaration case against senate president

A tribunal considering false asset declaration charges levelled at Nigeria's Senate President Bukola Saraki, the third most powerful person in the country, was adjourned on Friday to deal with questions over its authority.
Image result for Bukola Saraki
Saraki
Saraki, who heads the upper house of parliament, has pleaded not guilty to charges that he falsely declared his assets when he was governor of the central Nigerian state of Kwara from 2003 to 2011. The hearing has just begun.
The 13 charges he faces at the national Code of Conduct Tribunal, a special court that tries asset declaration misdemeanours, mostly relate to the ownership of land held by his company Carlisle Properties Ltd during that period.
Other allegations include transferring $3.4 million to an account outside Nigeria while he was governor, and sending 1.5 million pounds ($2.1 million) to a European account to cover a mortgage for a London property.
On Friday, Saraki's legal team said the attorney general did not have the power to mount a criminal trial against him.
"We have filed a motion challenging your jurisdiction," Saraki's lawyer, Mr Kanu Agabi told the tribunal.
Rotimi Jacobs, the government's lawyer, called the move a deliberate attempt to "scuttle" the court case.
The case was adjourned until March 18. If found guilty, Saraki would be removed as Senate president, barred from holding any public office for up to 10 years and could be jailed.
*First published by Reuters



Lower fuel costs, savings to narrow Kenya Airways losses

Kenya Airways expects to report an improvement in operating profit and narrower losses for the year ending in March because of savings made by reducing the size of its fleet and lower fuel costs, its chief executive officer said.
Image result for Kenya Airways
Kenya Airways

Mbuvi Ngunze also told Reuters that the airline expects to receive the second $100 million tranche of its $200 million bridging loan within a month, part of a broader plan to keep the carrier flying after three and a half years of financial losses.
The airline, one of Africa's biggest carriers, is also considering cutting the number of staff after a review of staffing needs, he said without giving details.
Kenya Airways, which is 26.7 percent owned by Air France KLM AIRF.PA, reported a pretax loss of 29.7 billion shillings ($293 million) for its financial year to end of March 2015, the third straight year of losses. But losses narrowed in the six months to September.
"The loss will reduce but we will of course have some big hits," the CEO said in an interview, citing the weakening of the Kenyan shilling by more than 10 percent against the dollar last year.
Operating profit "will see an improvement this year," he said. "Fuel is a big driver clearly but we have also been working a lot on cost reduction, we have cut back capacity."
Last year, the airline drew down $100 million of a bridging loan from Cairo-based Afreximbank. Ngunze said the airline was in final discussions to release the second tranche. "In the next month we should be able to draw down," he said.
Ngunze said he expected transaction adviser PJT Partners to outline a plan for new debt and equity funds by the end of April, with cash raising to take six to nine months after that.
Kenya Airways previously said it would need about 70 billion shillings but Ngunze said that number could shift after the transaction adviser's review. "That number might change to higher or lower," he said.
Shareholders, including the Kenyan government with a 29.8 percent stake, broadly supported the plan so far, he said.
It has already sold two Boeing 777-200s, and sub-leased three Boeing 777-300s and two Boeing 787 planes. "We have taken some painful decisions," he said.
But Ngunze said the airline still offered almost the same number of available seats per km (ASK) with fewer planes. "We are sweating our assets more," he said, adding the fleet reduction had saved $7 million a month.
Kenya Airways offered capacity of 15.4 billion available seats per km at the end of March 2015, and Ngunze said it had only fallen by 2 to 3 percent since despite a smaller fleet.
He said flights to West Africa were seeing higher demand as Ebola cases had come to an end in the region. He also said he was confident of a rise in tourist numbers to Kenya, which has suffered a number of militant attacks in recent years.
*First published by Reuters

Zimbabwe looks to the sun as drought hits hydropower

Zimbabwe is pushing forward with plans to build four new solar power plants, amid a drought that has battered its ability to generate hydroelectricity.
Severe dry conditions - linked to the El Niño weather phenomenon bringing extreme weather around the world - are affecting big and small producers of hydropower alike.
Phillip Muwungani of Chipendeke village, 70 km southeast of Mutare city, said his community’s vision of producing its own clean electricity using water is fading.
Drought has affected water levels in Chitora River which powers the Chipendeke micro hydro plant, making electricity generation erratic.
The plant, which supplies electricity to villagers, a school, a clinic and a business centre, was built under a sustainable energy initiative backed by the ZERO Regional Environment Organisation, the Zimbabwe Energy Council and international development groups.
“The situation doesn’t look good,” Muwungani said. “We are not sure if it will improve any time soon.”
At the national level too, drought has taken its toll on hydroelectric production.
Experts say the Kariba Dam on the border with Zambia, which provides almost 60 percent of Zimbabwe’s power, could lose its ability to generate electricity in around six months’ time unless water levels improve. nL8N16231R
With an installed capacity of 750 megawatts (MW), Zimbabwe's Kariba power plant is now generating less than 285 MW.
Lake Kariba - the world's largest manmade reservoir - is a little over 10 percent full, down from around half at the same time last year, according to the Zambezi River Authority.
Zimbabwe currently imports power from South Africa and Mozambique to help meet demand.
But to lower the risk of a crippling long-term energy crisis, the government has stepped up efforts to lure investors into solar power.
SOLAR HEATS UP
The Zimbabwe Power Company says feasibility studies and engineering procurement are underway for three solar projects at Gwanda, Insukamini and Munyati.
Construction is expected to start this year, at a combined cost of $635 million. Each solar power plant will generate 100 MW.
The projects have been on the cards for some time now as part of government efforts to boost solar energy, but the tenders were cancelled in 2014 due to irregularities in the bidding process. The contracts were re-issued to new companies last year, as the current drought-induced power crisis jolted the government into action.
In October, the government signed a deal with Intratrek Zimbabwe to construct the Gwanda solar project in partnership with Chinese company CHINT Electrics, backed by a $202 million loan from the Export-Import Bank of China.
Tenders to build solar power plants at Munyati and Insukamini have also been awarded to Chinese firms.
Construction at a fourth solar power project in Marondera, about 70 km east of the capital Harare, will start in September. De Green Rhino Energy, a Zimbabwean joint venture set up by a London-based consultancy, will invest $400 million from German investors in the project, which will start selling electricity to the national grid from the end of 2017 if all goes to plan.
The Marondera solar project should be able to generate 150 MW when it reaches full capacity, but will start with an initial investment of $113 million to produce 50 MW, according to De Green Rhino Energy CEO Francis Gogwe.
The head of the Zimbabwe Energy Regulatory Authority, Gloria Magombo, told an energy conference in Harare in December that Zimbabwe needs investment of at least $9 billion to increase its power generation capacity to 5,000 MW by 2030 from around 1,300 MW now.
The country aims to ensure access to affordable, reliable and modern energy services for all citizens by 2030, in line with U.N. goals, Magombo said.
Meanwhile, the government plans to produce 300 MW from solar by 2018. Other energy projects to be completed by that date include extensions at Hwange Thermal Power Station and Kariba South Hydro Power Station, a new hydropower plant at Gairezi, and refurbishment of small thermal plants.
SKY-HIGH COSTS
According to the Ministry of Energy and Power Development, Zimbabwe has high solar irradiation which can be harnessed for pumping drinking water and powering lights and appliances in rural communities, generating electricity, and heating water in urban areas.
There is high demand for solar energy systems, especially in remote off-grid areas. But economist Eddie Cross, who is also a legislator for Bulawayo South, says the cost remains prohibitive as much of the equipment is imported, and storage options for solar power are limited.
The government is encouraging local production of solar systems to make them cheaper.
In Zimbabwe, hydro is the most cost-effective way to produce electricity at a cost of 1.5 US cents per kilowatt hour, followed by coal at a cost of 8 to 12 cents per kilowatt hour, Cross said. That compares with 20 to 30 cents per kilowatt hour for solar.
De Green Rhino Energy says its solar project will augment government efforts to expand clean power sources and reduce Zimbabwe’s reliance on energy imports, bringing wider benefits.
“Our project will help accelerate economic development in the country,” said boss Gogwe.
*First published by Reuters

South Africa's MTN offers $1.5 bln to settle Nigeria fine

South African telecoms firm MTN Group has offered $1.5 billion to settle a much larger fine from Nigerian regulators for missing a deadline to disconnect unregistered SIM card users, a document seen by Reuters shows.
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MTN

Africa's biggest mobile phone group has been in talks with Nigerian authorities to have the $3.9 billion penalty reduced and last month made a "good faith" payment of $250 million towards a settlement.
In a letter to the Nigerian government from MTN's lawyer, former U.S. Attorney General Eric Holder, the company proposed a 300 billion naira ($1.5 billion) settlement to be paid through a combination of government bond purchases, cash instalments and network access to the Nigerian government.
Holder said in the letter, dated Feb. 24, the offer "ultimately is in the best interest of the FGN (Federal Government of Nigeria) and MTN Nigeria."
Johannesburg-based MTN said on Friday talks with the Nigerian government were ongoing.
"MTN has previously advised shareholders not to make decisions based on press reports and MTN again urges its shareholders to refrain from doing so," it said.
Nigeria's telecoms ministry had no immediate comment.
In its annual results last week, MTN said it had put aside $600 million to cover a deal over the fine, which was originally set at $5.2 billion on the basis of charging $1,000 for every unregistered SIM card.
Nigeria imposed a deadline on mobile operators to cut off unregistered SIM cards, which MTN missed, amid fears the lines were being used by criminal gangs, including militant Islamist group Boko Haram.
The fine, equating to more than twice MTN's annual average capital expenditure over the past five years, came months after Muhammadu Buhari was swept to power after an election campaign which pledged tougher regulation and a fight against corruption.
Shares in MTN, which makes about 37 percent of its sales in Nigeria, were little changed at 147.53 rand at 0839 GMT, after rising more than 2 percent shortly after the market opened.
*First published by Reuters

IEA says oil prices might have bottomed out

Oil prices might have bottomed as production declines in the United States and other non-OPEC producers are accelerating and an increase in supply from Iran has been less than dramatic, the International Energy Agency said on Friday.
The IEA, which coordinates energy policies of industrialised nations, said it now believed non-OPEC output would fall by 750,000 barrels per day (bpd) in 2016 compared to its previous estimate of 600,000 bpd.
U.S. production alone would decline by 530,000 bpd this year, it said.
"There are clear signs that market forces ... are working their magic and higher-cost producers are cutting output," the Paris-based IEA said.
Oil prices hit their lowest since 2003, below $30 per barrel, in January on a supply glut stemming from booming U.S. output in recent years and a decision by OPEC to ramp up supply to fight for market share against higher-cost producers.
Prices have since recovered to $40 after the Organization of the Petroleum Exporting Countries' leader, Saudi Arabia, and top non-OPEC producer Russia said they could freeze output.
The IEA said OPEC output fell by 90,000 bpd in February due to production outages in Nigeria, Iraq and the United Arab Emirates, which lost a combined 350,000 bpd.
"Meanwhile, Iran’s return to the market has been less dramatic than the Iranians said it would be; in February we believe that production increased by 220,000 bpd and, provisionally, it appears that Iran’s return will be gradual," the IEA said.
Iran has promised to add as much as 1 million bpd to global supply after clinching a deal with the West in January to ease sanctions imposed on the Islamic Republic over its nuclear programme.
The IEA said inventories in industrialised member countries of the Organisation for Economic Cooperation and Development (OECD) had declined in February for the first time in a year although crude in floating storage increased.
The IEA said it nevertheless saw global oil and product stocks rising heavily in the first half of 2016 in the area of 1.5-1.9 million bpd but slowing to just 0.2 million bpd in the second half, versus estimates of a build of 0.3 million bpd in its previous report.
"For prices there may be light at the end of what has been a long, dark tunnel, but we cannot be precisely sure when in 2017 the oil market will achieve the much-desired balance. It is clear that the current direction of travel is the correct one, although with a long way to go," the IEA said.
INDIA SUPPORTS DEMAND GROWTH
The IEA kept its estimate for 2016 growth in global oil demand unchanged at 1.17 million bpd, or 1.2 percent of the total 95.8 million bpd.
Demand growth has slowed significantly from the
near five-year high of 2.3 million bpd in the third quarter of 2015, which was spurred by low oil prices, but it nevertheless remains near the averages of recent decades.
"The risks to global oil demand growth are almost certainly on the downside," the IEA said.
It forecast flat demand this year in the United States, the world’s biggest consumer: "But if prices maintain their recent upward momentum there could be further weakness."
China, the world's second-biggest source of demand, will see growth of only 330,000 bpd this year, well below the 10-year average of 440,000 bpd.
"We expect India and other smaller non-OECD Asian economies and the Middle East to provide most of the 2016 growth. The foundations for global demand growth are sound, but not rock-solid," the IEA said.
*First published by Reuters

Nigeria's state oil firm NNPC makes more management changes

Nigeria's state oil company, the main revenue earner in Africa's biggest crude producer, has appointed more senior managers in a continued overhaul of the firm, it said on Friday.
The announcement comes a day after unions ended a strike to protest against government plans to restructure the Nigerian National Petroleum Corporation (NNPC) which will be split into upstream, downstream, gas power marketing, refinery groups, and ventures divisions. nL5N16I1RB
President Muhammadu Buhari, who took office last May, has prioritised overhauling Nigeria's oil sector, which accounts for around 90 percent of foreign earnings, in an effort to improve efficiency while cracking down on corruption.
NNPC said it had appointed seven group executive directors who will report to its head Emmanuel Ibe Kachikwu, who was appointed by Buhari last year along with other senior managers to lead corporate reforms.
More than 40 other managers have been appointed, seconded or redeployed into key positions, the statement said.
The group executive directors will be responsible for upstream, downstream, refineries, gas and power, ventures, finance and accounts, as well as corporate services.
New heads of NNPC's strategic business units and corporate service units were also announced, along with details of managers who had been seconded to other departments.
NNPC said the appointments take effect immediately and the new unit heads are expected to resume fully by April 1.
*First published by Reuters

Thursday 10 March 2016

Nigeria to raise 1.07 bln naira from T-bills in Q2

Nigeria plans to raise 1.07 trillion naira from treasury bills issuance in the second quarter of 2016, the central bank said on Thursday.
The bank said it would auction 303.77 billion naira worth of 91-day bills, 169.98 billion naira worth of 182-day paper and 599.63 billion of one-year paper between March 17 and June 2.
Africa's biggest economy raised 1.22 trillion naira from treasury bills in the first quarter.

Nigeria's electricity generation sinks to 1,580MW

General power failure across African biggest economy in the past few days may worsen as reports showed a partial system collapse at the Transmission Company of Nigeria (TCN), while a major drop in electricity generation due to vandalisation of pipelines that supply gas to the power plants.
according to the latest report, power generation has dropped to 1,580.6 megawatts by Wednesday, deeming hope of restoration of power supply in many home across the West African country.
Data from the Nigeria Electricity System Operator has showed that power generation has plummeted massively this week, leading to total blackout in major cities and towns across the country.
Electricity transformer
Information also showed that the reduction in power generations has translated to cut in the electricity load allocated to the distributions companies.
It was learnt that the partial system collapse that occurred on Tuesday happened at the Shiroro Power Plant and dragged down electricity generation to as low as 1,233.4MW from a peak of 3,207.7MW recorded on the same day.
Data from NESO showed that by 9.48am on Wednesday, power generation was 1,580.6MW, with the Ikeja Electric getting 237.09MW; Abuja, 181.77MW; Eko, 173.87MW; Benin, 142.25MW; and Enugu, 142.25MW.
Others are Ibadan, 205.48MW; Jos, 86.93MW; Kano, 126.45MW; Kaduna, 126.45MW; Port Harcourt, 102.74MW; and Yola, 55.32MW.
One of our correspondents gathered that prior to the partial collapse of the system, the Abuja, Ikeja and Eko distribution firms were getting over 350MW each to meet the power needs of a considerable number of their customers.
In fact, it was learnt that the normal baseline allocation for the Abuja Disco was 450MW, but on Wednesday, the firm got 181.77MW around 9.48am, according to data from NESO, and this further dropped to 131.77MW by 1.25pm.
On reason for the slump in electricity generation, officials at the power arm of the Federal Ministry of Power, Works and Housing told one of our correspondents that the same old issue of gas pipeline vandalism had continued to pose challenge to adequate electricity generation and distribution.
An official, who spoke on condition of anonymity, said, “Gas is vital for power generation and most of the electricity being generated in Nigeria is produced by gas-fired power plants. Both the ministers of power and petroleum have often called on Nigerians to help safeguard these infrastructure, but we keep recording explosions of gas pipelines.
“Currently, repairs are ongoing on some of the ruptured pipelines and once they are completed, we believe generation will pick up again.”
Last week, the acting Chief Executive Officer of the Nigerian Electricity Regulatory Commission, Dr. Anthony Akah, lamented the incidences of vandalism that led to the reduction in peak power generation and supply from the national grid.
Akah, who spoke in Abuja, solicited the support of members of the public and the Consumer Protection Council to collaborate with electricity service providers and security agencies in ensuring adequate protection of power installations across the country.
Similarly, the Minister of Petroleum Resources, Dr. Ibe Kachikwu, told journalists in Abuja on Tuesday that vandalism had been a serious challenge to not just the oil and gas sector, but also the power sector.
Meanwhile, the management of Ikeja Electric has apologised to its customers for the epileptic power supply across its network in the past three days.
The Head of Corporate Communications, Ikeja Electric, Mr. Felix Ofulue, made the apology through a statement on Wednesday.
Ofulue attributed the poor service to the ongoing activities by labour unions picketing the facilities of the company over the purported sacking of 400 workers.
He said the company’s employees were not on strike, but that they had been prevented by the protesting labour unions from gaining access to its facilities and “are, therefore, not in a position to provide any consistent service to our valued customers.”
Ofulue noted that the situation had impacted negatively on power supply as well as the purchase of recharge units because all the substations, business units and undertakings had been taken over by members of the protesting unions.
He said, “Ikeja Electric regrets all inconveniences this action may have caused its customers and appeals to all its customers to please bear with us.
“We assure our customers that the company is doing its best to normalise the situation within the shortest possible time. We thank all our customers for their patience and understanding.”
Power sector workers under the aegis of National Union of Electricity Employees and Senior Staff Association of Electricity and Allied Companies had on Monday picketed the head office of the Ikeja Electric over the sacking of 400 workers of the company.
The union had issued a seven-day ultimatum to the management of the company last week Tuesday to recall the disengaged workers or face industrial action.
*First published by Punch Newspaper

Nigeria's anti-graft agency discovers $1 mln cash in ex-military chief mansion

The Economic and Financial Crimes Commission told a Federal High Court in Abuja on Thursday that its operatives found cash sum of $1m in the bedroom of an Abuja mansion of the former Chief of Defence Staff, Air Marshal Alex Badeh (retd).
Badeh, ex-CDS
The anti-graft agency alleged that the ex-CDS purchased the house in which the money was found with dollar equivalent of N1.1bn said to have been fraudulently removed from the accounts of the Nigerian Air Force in 2013.
It said although, Badeh had denied ownership of the property, his belongings, including photographs were found in it during a search by the operatives of the commission.
This was part of the submission of EFCC’s lawyer, Mr. Rotimi Jacobs (SAN), while opposing the bail application filed by Badeh, who is currently on remand in Kuje prison with respect to his ongoing trial for alleged diversion of about N3.97bn belonging to the Nigerian Air Force.
Justice Okon Abang had on March 7 ordered that Badeh be remanded in prison shortly after the EFCC arraigned the former military chief and a company, Iyalikam Nigeria Limited, on 10 counts of money laundering.
The judge had fixed Thursday for hearing of the bail application.
Prison authorities did not produce the the former Chief of Defence Staff in court on Thursday, but the judge later ruled that his presence could be dispensed with under section 266 of the Administration of Criminal Justice Act, since the proceedings were for the hearing of an interlocutory application.
Jacobs while opposing the bail application on Thursday urged the trial judge, Justice Okon Abang, not grant bail to Badeh, who was said to have perpetrated the alleged fraud while he was the Chief of Air Staff.
*First published by Punch Newspaper

Wednesday 9 March 2016

Nigerian policymaker advised central bank to devalue naira -MPC minutes

A member of Nigeria's central bank monetary policy committee(MPC) has said the naira should be devalued and allowed to trade within a band, saying that the fixed exchange rate would not work alongside a planned rise in government borrowing.
Adedoyin Salami, an academic, said the naira was 10-percent over-valued and voted to move the exchange rate band to plus or minus five percent from 220, minutes from the 12-member MPC January meeting showed.
Nigeria faces its worst economic crisis for decades as the falling price of oil has slashed revenues, prompting the central bank to peg the currency and introduce curbs to conserve foreign exchange reserves which have fallen to a more than 11-year low.
The naira - pegged at 197 - trades some 40 percent below the official rate on the black market versus the dollar. Africa's biggest economy grew by 2.8 percent last year, its slowest for decades.
Salami said his proposal gained no support at the meeting and that the central bank was focused on exchange rate stability at the expense of inflation.
"The absence of an exchange rate management policy has diminished Nigeria's attractiveness as a destination for international capital flows," he said.
Other policymakers voiced concerns that tight liquidity in the currency market could threaten economic growth this year as businesses struggle to get dollars for imports. They all voted to keep benchmark interest rate at 11 percent in January.
The central bank last year pegged its exchange rate to curb speculative demand for the dollar and conserve its dwindling foreign reserves after it restricted access to hard currency for imports of certain items, frustrating businesses.
Last month, the IMF called on Nigeria to lift the curbs imposed by the central bank in 2015 and let the naira reflect "market forces" more closely, as the restrictions had significantly affected the private sector.
However, President Muhammadu Buhari has rejected calls by the International Monetary Fund to lift foreign exchange curbs and allow a more flexible rate for the naira currency, backing the central bank's actions.

The tight controls have forced domestic lenders to delay hard currency loan and trade repayments to foreign banks and increased the risk of default, bankers say.

Nigeria wants to borrow up to $5 billion to fund its 2016 budget deficit but the minutes showed that all 12 committee members warned that spending should not increase after the loss of vital oil revenues to curb inflation and enhance debt ratios. (Additional reporting by Oludare Mayowa; Editing by Alexis Akwagyiram and Louise Ireland)

Nigeria aims to end refined petroleum imports within 18 months

 Nigeria, Africa's top oil producer, wants to remove the need for imported petroleum products within 18 months, Minister of State for Petroleum Emmanuel Ibe Kachikwu said on Tuesday.
Nigeria's four refineries have never reached full production because of sabotage and poor maintenance, causing the country to rely on expensive imported fuel for most of its energy needs.
"We must target between the next 12 to 18 months we should be able to get out of importations of refined products," Kachikwu, who is also head of the Nigerian National Petroleum Corporation (NNPC), told reporters in the capital, Abuja.
Kachikwu said between $250 and $500 million would be invested in the country's refineries over the next 18 months "to keep them going optimally".
President Muhammadu Buhari has made reforming Nigeria's oil sector a priority as a sharp fall in global oil prices has prompted the country's worst economic crisis in years. Crude exports account for around 95 percent of its foreign earnings.
Kachikwu said Buhari had approved a restructuring of state oil company NNPC. "We intend to unbundle ourselves into five components: the upstream, the downstream, gas power marketing, refinery groups, and ventures," he said.
The minister's comments come a week after he said NNPC would be split into 30 independent companies.
Last year Buhari, a former military ruler, fired the NNPC board and brought in Kachikwu to lead corporate reform efforts.
*First published by Reuters

Ghana consumer inflation slows to 18.5 pct in February

Ghana's annual consumer price inflation fell to 18.5 percent in February from 19.0 percent the month before, helped by the stability of the local currency, the statistics office said on Wednesday.
Consumer prices could fall further if the cedi holds steady and in the absence of any external shock, deputy government statistician Anthony Amuzu told reporters in Accra.
After weakening nearly 4 percent in January on seasonal high corporate dollar demand, the cedi GHS=, has remained firm in recent weeks. It was trading at 3.8500 to the greenback on Wednesday, down 1.3 percent year-to-date.
"The stability of the cedi was the major driver in February," Amuzu said, adding that it drove down prices of imported items.
The commodities exporter is implementing a three-year aid programme with the International Monetary Fund (IMF) in an attempt to remedy fiscal problems including inflation persistently above government targets.
The IMF projects that inflation will peak before slowing to around 10 percent at the end of the year and the central bank has been tightening monetary policy in order to contain it.
Analyst say the easing in February CPI showed that the central bank's tight monetary policy had been effective.
"The deceleration in year-on-year inflation also relieves the pressure on the Bank of Ghana to raise interest rates in the near term," said Standard Chartered's head of Africa research Razia Khan.
Year-on-year non-food inflation for February, which comprises imported goods, was 24.5 percent, compared with 25.5 percent the month before. Food inflation was 8.3 percent, from 8.2 percent in January.
*First published by Reuters

IFC and Fidelity Bank to expand digital financial services in Ghana‏

The International Finance Corporation (IFC), a member of the World Bank Group, said on Wednesday it has signed an advisory agreement with Fidelity Bank Ghana to expand agent and
mobile banking in Ghana. 
The agreement is designed to make financial services more easily available to low-income customers, small-scale entrepreneurs and rural communities, according to a statement by the two organisations.
Fidelity Bank was the first bank in Ghana to deploy agent banking to expand formal financial services to previously unbanked customers. It launched its inclusive banking service Smart Account in 2014 with the goal to reach 5.0 million customers.
The initiative is intended to help increase the rate of financial inclusion in Ghana, currently at an estimated 35 percent of the adult population.
“As the leading bank promoting financial inclusion in Ghana, we understand the needs of the unbanked and we are dedicated to finding innovative solutions to help them. This project will help us promote our agency banking service to help more Ghanaians access basic financial services, ” Dr. William Derban, Director for Inclusive Banking at Fidelity Bank said,.
As part of the three-year advisory project, IFC will provide Fidelity Bank with strategic and technical advice for the expansion of the agent banking service. This will include advice on risk management related to deploying digital financial services and on customer acquisition with a focus on the unbanked.
Ronke Ogunsulire, IFC Country Manager for Ghana, said, “Fidelity Bank is a mobile banking pioneer in its market, and its Smart Account service has already made real impact. There is considerable potential to further advance digital financial services in Ghana, with benefits for individuals as well as the overall economy.”
 The project is funded by the Partnership for Financial Inclusion, a $37.4 million joint initiative of IFC and The MasterCard Foundation to expand microfinance and advance digital financial services in Sub-Saharan Africa.
The program works with microfinance institutions, banks and mobile network operators across the continent to further financial inclusion.