Nigerian interbank rates falls after AMCON retires bonds

Nigeria's interbank lending rates eased to 10.2 percent on average on Friday, from 10.37 percent last week after state-owned 'bad bank' AMCON repaid matured bonds, buoying liquidity in the system, traders said.
Nigeria's state-backed AMCON repaid 867 billion naira ($5.24 billion) worth of bonds on Friday, cutting its liabilities to around 3 trillion naira, bankers said.
Dealers said 30 percent of the repaid bond -- about 260 billion naira -- was expected to enter the system in the form of cash on Friday, while the balance would be in treasury bills, transferring that part of the liability to the central bank.
Dealers said the central bank had also repaid around 160 billion naira in matured treasury bills, while around 320 billion naira in monthly budget allocations to government agencies hit the market this week, further buoying liquidity.
The cash balance that lenders held at the central bank opened around 552 billion naira on Friday, compared with 389 billion naira last week.
The open buy back rate eased to 10.15 percent from 10.25 percent last week -- 1.85 basis points below the central bank's benchmark interest rate of 12 percent.
Overnight placements also fell to 10.25 percent from 10.50 percent last week.
Dealers said interbank lending rates were expected to remain stable at this level next week, with market liquidity set to rise further after the payment of the AMCON bond is reflected on bank balances held at the central bank on Monday.

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Nigerian 'bad bank' AMCON redeems 867 bln naira in bonds

Nigeria's state-backed 'bad bank' AMCON repaid 867 billion naira ($5.24 billion) worth of bonds on Friday, cutting its liabilities to around 3 trillion naira, bankers said.
Dealers said 30 percent of the bond, representing about 260 billion naira, is expected to come in the system in form of cash, while the balance would be in treasury bills, transferring that part of the liability to the central bank.
AMCON was set up to absorb bad debts left over from a 2008/9 financial crisis that nearly bankrupted nine lenders until the central bank bailed them out to the tune of $4 billion, forcing many of them to restructure. There was no immediate comment from AMCON.

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Nigerian Breweries seeks shareholder approval for merger

Nigerian Breweries, said on Friday it would seek shareholder approval on Dec. 4 for its plan to merge with rival Consolidated Breweries.
Heineken, the majority shareholder in Nigerian Breweries, acquired a controlling stake in Consolidated Breweries in 2005 and is seeking to merge both businesses to take advantage of Nigeria's growing market for beer and malt drinks.
In a notice to shareholders, Nigerian Breweries said it planned to exchange four of its shares for five of Consolidated Breweries, involving up to 396.85 million ordinary shares in total.
Nigerian Breweries said two weeks ago it has won Nigeria's Securities and Exchange Commission approval for the merger.
Nigerian Breweries, listed on the Nigerian Stock Exchange, is expected to be the surviving entity after the merger.
The local unit of Heineken said shareholders would be asked to consent to an order of a court sanctioning the merger to allow the deal to go ahead.
The companies have not disclosed the value of the deal.

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Nigeria's forex reserves down 1.9 pct month-on-month to $38.7 bln

Nigeria's foreign exchange reserves fell 1.94 percent month-on-month to stand at $38.76 billion on Oct. 29, the lowest level in more than three months, data from central bank showed on Friday.
The reserves also dropped 14.28 percent year-on-year, compared with $45.22 billion the same time last year. The reserves were last seen at the current level on July 21, when they stood at $38.72 billion.
Since last month Nigeria's central bank has increased the amount of dollars sold at its twice-weekly foreign exchange auction, and also sells dollars directly to banks on the interbank market to provide support for the currency and calm the market.
The naira has been under pressure over the past five weeks from falling global oil prices, which has caused offshore investors to cut back their positions in the debt and stock markets.

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Oil drops below $87 as U.S. GDP and Fed boost dollar

• Dollar hits 3-1/2-week high against currency basket

• U.S. advance Q3 GDP +3.5 percent (consensus +3.0)

• Improved outlook on U.S. economy helps cap losses in oil

Brent crude oil slipped below $87 a barrel on Thursday as expectations U.S. interest rates may rise sooner than expected pushed the dollar to its highest in more than three weeks.
A 3.5 percent annual rise in third-quarter U.S. gross domestic product reported on Thursday came a day after the U.S. central bank gave a surprisingly upbeat assessment of the economy, reinforcing a more hawkish rate outlook.
While faster growth in the world's biggest consumer of oil boosts the outlook for demand, a stronger greenback makes dollar-priced commodities such as oil more expensive for buyers using other currencies.
"Increased expectations about a first increase in rates next year will be dollar positive and a higher dollar will be generally negative for commodities," said Olivier Jakob, energy market analyst at consultancy Petromatrix in Zug, Switzerland.
Brent crude for December fell $1.01 a barrel to a low of $86.11 before recovering to trade around $86.55 by 1440 GMT. U.S. crude fell $1.30 cents to a low of $80.90 before rallying to around $81.30.
Both benchmarks climbed on Wednesday after data showed U.S. crude oil stockpiles rose 2.1 million barrels last week, less than the 3.4-million-barrel increase expected and offering some relief for a market hit hard by a supply glut.
Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt, said he was surprised oil prices had not fallen further on Thursday given the strength of the dollar.

"All commodities are under pressure," he said. "We should see a move back down towards the lows of the early part of the week."

Brent touched a low of $84.55 on Monday. It dropped to $82.60 on Oct. 16, its lowest in almost four years, weighed down by brimming inventories worldwide.

A 25 percent slide in oil prices from June had raised suggestions that the Organization of the Petroleum Exporting Countries would curb output. But some OPEC members have not warmed to the idea of cutting production.

OPEC Secretary-General Abdullah al-Badri said on Wednesday there was not likely to be a big change in OPEC's oil output next year.

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Nigerian naira seen stable next week

Nigeria's naira is seen stable around its current range as more energy companies buy the local currency to fund month end domestic payments and the central bank also provides support.
The naira currency closed at 165.65 to the dollar on the interbank market, compared with 164.80 last Thursday.
The naira has been under pressure over the past five weeks, unnerved by falling global oil prices, which caused offshore investors to cut back their positions in the debt and stock markets.
Traders said demand for hard currency was gradually slowing down, while the central bank's resolve to support the currency had restored confidence and calmed the market.

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Nigerian police withdraw speaker's guards after defection to opposition

Nigeria's police said on Thursday it had withdrawn all security personnel guarding parliament speaker Aminu Tambuwal, the country's fourth most powerful government official, following his defection to the opposition coalition.
Tambuwal defected to the All Progressives Congress (APC) from the ruling People's Democratic Party (PDP) on Tuesday, a move that gave it a much needed boost in its campaign to unseat President Goodluck Jonathan in February 2015 elections.

He has not yet resigned as speaker.
The withdrawal of Tambuwal's security detail indicates how bitter the contest between Jonathan and his APC opponent could become. The top two contenders for the ticket are former military ruler Muhammadu Buhari and recently defected vice president Atiku Abubakar.
The polls are expected to be Nigeria's most closely contested since the end of military rule in 1999.
Jonathan's office confirmed on Wednesday that he will seek a second term to rule Africa's largest economy and leading energy producer.
"In view of the recent defection by the Right Honourable Aminu Waziri Tambuwal ... the Nigeria Police Force has redeployed its personnel attached to his office," force spokesman Emmanuel Ojukwu said in a statement.
After the vice president and senate president, the speaker of the lower legislative house is third in the presidential line of succession.
Senior Nigerian politicians usually travel with a whole convoy of police cars and armed protection that provide security and help them push through traffic. Wealthy Nigerians often simply hire federal police privately for this purpose.
Officials at the ruling People's Democratic Party (PDP) have hinted that he should resign as speaker, since he was elected on a PDP platform.
"The speaker knows full well what is needful and honourable of him since his new party is in the minority," PDP spokesman Olisa Metuh said in a statement on Tuesday.
Tambuwal's defection added to signs that the elections may be becoming more polarised around religion -- Tambuwal is an northern aristocrat from the powerful Sokoto Caliphate, Nigeria's highest Islamic authority, while Jonathan is a Christian southerner.
Such polarisation could lead to violence if it ignites sectarian tensions after the results, analysts say, as happened in 2011 when 800 people were killed in riots after Buhari lost.

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Nigeria’s Mobile-Phone Companies to list on stock exchange soon

The Nigerian Stock Exchange said it’s making headway in persuading the four mobile-phone companies in Africa’s largest economy to sell their shares.
“The stance has moved from them not wanting to list to them looking at how to deal with the issues that would make it unattractive to list,” Chief Executive Officer Oscar Onyema said by phone fromSeoul today. “We’re gaining traction.”
Africa’s second-biggest bourse after the Johannesburg Stock Exchange is trying to entice more companies to place initial public offerings to better mirror the make-up of the Nigerian economy. As well as lacking telecommunications groups, the NSE has few utilities and oil companies even though Nigeria is the continent’s top crude producer. The NSE All Share Index has dropped 7.7 percent this year, the worst-performer among 14 African benchmark gauges monitored by Bloomberg after Zimbabwe.
While none of the operators have come with applications to list stock, the companies did highlight “structural issues” hindering initial public offerings, Onyema said, adding that the bourse is working with Nigerian authorities to address any shortcomings.
“Some don’t need to raise capital, but some do,” he said. “If any one of the four carriers wanted to raise capital on the NSE, I don’t see that not being successful.”
The companies had 177.5 million lines between them at the end of August, according to theNigerian Communications Commission. South Africa’s MTN Group Ltd. (MTN), which has a 49 percent market share, didn’t immediately respond to an e-mailed request for comment. Emeka Opara, a spokesman for Airtel Nigeria, a unit of Bharti Airtel Ltd., couldn’t immediately comment, while calls to spokesmen at Globacom Ltd. and the local unit of Emirates Telecommunications Corp. weren’t answered.

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Nigeria naira firms 0.18 pct as oil companies sell dollars

The Nigerian currency firmed 0.18 percent to 165.40 naira against the U.S. dollar on Wednesday, after two multinational oil companies sold the greenback on the interbank market, dealers said.
Dealers said the local unit of ExxonMobil sold $50 million, while French oil firm Total sold $88 million, to boost dollar liquidity on the interbank market.
The naira has been under pressure over the past five weeks, unnerved by falling global oil prices, which caused offshore investors to cut back their positions in the debt and stock markets. Nigeria is northeast of Africa's biggest oil producer.
Dealers expect the naira to stabilise within the current level as more energy companies sell dollars as part of their month-end sale.
The currency closed at 165.70 naira on Tuesday.

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Nigeria grants 5-year VAT exemption on capital market fees

Nigeria granted market transaction fees a five-year exemption from value added tax (VAT) on Tuesday as part of measures to encourage investment in the share market of Africa's top economy.
The exemption from the 5 percent VAT rate covers commissions on bond as well as equity trades.
"The elimination of VAT on stock market transaction fees will ultimately reduce the cost of transactions for investors, and will encourage investments in the Nigerian capital market," Nigerian Stock Exchange (NSE) Chief Executive Oscar Onyema said in a statement.
The local bourse has declined around 7.5 percent year-to-date as offshore investors cut back on their holdings on currency concerns and falling global oil prices.
The NSE said in a separate statement that it had been admitted into the World Federation of Exchanges (WFE) at a meeting of the WFE in Seoul on Tuesday.
"This membership status reflects the exchange's commitment to implementing the highest standards of international best practices," Onyema said.
Nigeria announced a waiver on 0.075 percent stamp duty for all capital market transactions in 2012, which it has not yet implemented, Onyema said, without giving a reason. He added that he hoped it would be introduced soon.
Government officials were not immediately available for comment.

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Nigeria further limits banks' foreign currency borrowings

• Bank trying to ease pressures on naira, stem dollar demand
• Naira down almost 4 percent this year as oil prices fall
• Lenders tap international debt markets to shore up capital

 Nigeria's central bank has cut the limit on banks' foreign currency borrowings to 75 percent of shareholders’ funds from 200 percent, according to a central bank circular seen by Reuters on Tuesday.
The regulation replaces a 2001 rule capping foreign borrowings, including Eurobonds, at 200 percent of shareholders’ funds as Nigeria tries to manage exchange rate risks and curb pressures on the naira from excess demand for dollars.
The new rule also requires banks to have adequate liquid foreign assets including cash and government securities to cover maturing foreign obligations and a contingency arrangement with other financial institutions to cover loan repayment.
The central bank has moved towards strengthening rules and tightening capital requirements since the near collapse of eight banks in 2009 that forced it to implement a $4 billion bailout.
Nigerian banks have raised over $1.1 billion this year from issuing Eurobonds and other types of debt instruments as lenders rush to take advantage of loose monetary policies by global central banks to shore up their capital bases.
The central bank is trying to ease pressure on the naira as banks borrow more dollars to cover interest payments offshore and as demand for imported goods stays high at 80 percent of all non-food consumption.
The local currency -- down almost 4 percent this year to 165.35 against the dollar -- has taken beating since June as the price of crude oil, Nigeria’s main foreign currency earner, has dropped more than 25 percent.
"The central bank of Nigeria has noted with concern the growth in foreign currency borrowings of banks through foreign lines of credit and issuance of foreign currency denominated bonds (Eurobonds). The lower interest rate on foreign debt has created an incentive for banks to borrow abroad,” the document dated Oct. 24 and sent to all lenders said.
"This has the advantage of providing fairly stable and long term funds to extend credit facilities in foreign currency and enhance their capital base. However, this also exposes banks to foreign exchange risks and other risks," it said.
Banks in Africa's biggest economy have been heavy borrowers of long-dated dollar securities over the past several years to fund industries such as oil and gas, power and telecoms whose need for manufactured good cannot be met locally.
In the first half, Zenith Bank sold $500 million in Eurobonds, Access Bank  raised $400 million and Diamond Bank secured $200 million, according to Citibank which acted as lead arranger.

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Nigerian naira falls 0.15 pct despite oil firm dlr sales

Nigeria's naira currency weakened marginally by 0.15 percent against the dollar on the interbank market on Monday, on a renewed surge in dollar demand despite about $112 million in sales by an oil company.
A unit of French oil major Total sold about $112 million to some lenders on Monday, but was insufficient to support the naira.
The local currency fell to 165 to the dollar compared with 164.74 it closed at on Friday, due to increased dollar demand from importers and corporations stocking up for year-end sales.
The naira had recovered from a 7-month low last week, as the central bank took steps to it prop up.
The local currency has come under pressure in the last five weeks owing to concerns over falling global oil prices, which led to offshore investors cutting back their positions in the local debt market and repatriating their funds.
"We are expecting more oil companies to sell dollars in the market this week and a direct intervention by the central bank, which could keep the currency within range in the short term," one dealer said.

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Nigerian bond yields seen rising

Increased demand for Nigerian government bonds from local pension funds this week buoyed debt note prices after four weeks when falling global oil prices and a rapid decline in the value of the naira currency had forced offshore investors to gradually exit.

Traders said most offshore investors stayed on the sidelines this week, while the pension funds took the front seat in the local debt market of Africa's biggest economy.

"The offshore investors might further cut back on their bond holdings as we gradually approach the year end, but this will depend on the broader outlook for the local economy and the performance of global oil prices," another dealer said.

The naira currency weakened to 166.15 to the dollar on Thursday, hovering around a 7-month low before the central bank intervened by selling an undisclosed amount of dollars in the market, strengthening it to 164.70 to the dollar on Friday.

Yields on the benchmark 2024 bond fell 19 basis points to 12.62 percent on Friday, against 12.81 percent last week. The 2022 paper traded at 12.66 percent, down from 12.88 percent last Friday.

"The market experienced increase in local demand for bonds this week, due largely to improved liquidity and a slowdown in the sell-off of offshore investors," one dealer said. 

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Nigeria central bank to regulate bank dividend payments

* Central Bank's decision could hurt banking stocks

* Banks must meet capital adequacy ratio, have cash reserves

* Central bank wants banks to loan to real economy

Nigeria's central bank has introduced new rules to prevent banks that do not meet minimum capital requirements from paying dividends in a bid to shore up the sector, according to a document seen by Reuters.
The central bank said in a circular dated Oct. 8 sent to lenders and discount houses that the amount banks can pay in dividends would depend on their capital levels, statutory reserve requirements and the proportion of non-performing loans.
In the past, lenders paid out a high proportion of net profit as dividends, despite their risk profiles and capital levels. The regulator said it wanted to correct this situation with the new rules.
"There shall be no regulatory restriction on dividend payout for banks that meet the minimum capital adequacy ratio, have a cash reserve requirement of 'low' or 'moderate' and a non-performing loan ratio of not more than 5 percent," the regulator said in the circular.
The central bank has vowed to prevent a repeat of the circumstances that led to a bailout in 2009 and has moved towards strenghtening rules and tightening capital requirements.
Since last year, Nigerian lenders have also been facing a profit squeeze as a result of regulatory measures put in place partly designed to get banks to lend more to domestic businesses and consumers.
The banking sector had been making bumper profits by mopping up government deposits and using the cash to buy high-yielding treasury bonds and declaring huge dividends. As a result, banks had little incentive to lend to the real economy.

BANK STOCKS MAY SUFFER
Analysts welcomed the new rules on dividends but said they might hurt banking stocks if cash payments to investors fall. The rules may also lower loan growth as banks try to conserve more cash, which in turn could hit profits.
Banks have also had to adopt stricter international capital requirements, which has seen capital ratios for most lenders drop by 100-400 basis points to near the regulatory minimum of 16 percent under the new rules.
Analysts at Renaissance Capital said FBN Holdings, United Bank for Africa (UBA) and FCMB have capital ratios close to the minimum requirement.
But some have also been shoring up their balance sheets. Access Bank got the nod from shareholders to raise up to 68 billion naira this month, while Sterling Bank plans to seek approval to raise $320 million.
Rival lender UBA has announced plans to raise capital while Diamond Bank and Unity Bank have just concluded rights issues.
"We do not think GT Bank, Zenith and Stanbic get affected much by these directives ... we expect them to consider lowering payout ratios from 2014. Other banks in a less favourable capital position are likely to have deeper dividend cuts," Renaissance Capital said.
Nigeria's banking sector index, which accounts for around 40 percent of total market capitalisation, has gained 32 percent so far this year. It lost 10 percent last year, owing to heavy burden from tight regulation which cramped profits.

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Nigeria interbank rates stay flat as cenbank cancels T.bill sale

Nigeria's interbank lending rates remained unchanged at 10.37 percent for the fourth week on Friday after the central bank cancelled the sale of fresh open market (OMO) bills as investors demanded higher yields.
The central bank had offered to sell treasury bills in the week, but withheld the auction due to demand for high yields by investors as the risk of holding Nigerian assets has risen with falling oil prices and a weakening naira currency, dealers said.
Instead it repaid 170 billion naira ($1.03 billion) worth of matured OMO bills this week, increasing interbank liquidity. Banks were also expecting monthly government revenue disbursements to hit the system from next week.
The cash balance that lenders held at the central bank opened around 389 billion naira on Friday, down from 431 billion naira last week.
Nigeria's debt office sold 171.26 billion naira worth of treasury bills with the six month and one year paper fetching higher yields than at a previous auction on Sept. 24.
The open buy back rate was unchanged at 10.25 percent this week, 1.75 basis points below the central bank's benchmark interest rate of 12 percent.
Overnight placements also remained flat at 10.50 percent for the forth consecutive week.
Dealers expect interbank lending rates to remain flat next week as more liquidity flows into the banking system.

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MTN shares hit after cuts Nigerian growth forecast

Sees Nigeria user additions at 3.5 mln
Adds 1.4 mln users in South Africa
Shares down more than 4 pct

MTN Group Africa's largest mobile telecoms operator, slashed its full-year forecast for Nigerian subscriber growth by nearly a third on Thursday, raising concern about its ability to fight off competition in its top market and sending its shares sliding.

The Johannesburg-based company has been fighting to stay in the lead in Nigeria, Africa's most populous country, ahead of competitors such as the UAE's Etisalat , India's Bharti Airtel and privately-owned local firm Globacom (GLO).

It now expects to add 3.5 million users in Africa's biggest economy this year, from its previous forecast of 5 million. In total it has 58.4 million customers in Nigeria, a slight decrease from three months ago.

"That comes as a bit of a surprise. Many participants in the market were looking for a correction in Nigeria," said Nadim Mohammed, a telecoms industry analyst at First Avenue Investment Management, referring to MTN's revision to its subscribers forecast.

"You've got a very capable regulator in the country now and they are doing the right things to promote competition, better costs to communicate and a better experience for the consumer. I am actually worried," he added.

Nigerian authorities this year fined MTN and two other operators a combined $4 million and banned them from selling SIM cards, for poor service.

Its Nigerian user base was also hit after Islamist group Boko Haram burnt down some radio masts.

MTN's shares were down 4.6 percent at 232.99 rand at 1237 GMT, on track for their biggest one-day fall in over a year.


STRINGENT REGULATION

"Performance was impacted by continued aggressive competition and stringent regulatory requirements," Chief Executive Sifiso Dabengwa said in a statement.

Because of its dominant position, Nigerian regulators require MTN to offer both its customers and those of competing operators similar tariffs when using its network.

To counter this MTN relied on short-term promotions to drive sales, but this too was banned.

"These regulatory actions are quite severe and it will be hard for MTN to resume anything close to double-digit (growth) again. At best, it will be single-digit positive revenue growth for the next while in Nigeria," Mohammed said.

MTN booked revenue growth of 10.7 percent in the six months to end-June. Nigeria accounted for nearly half of its earnings before interest, taxation, depreciation and amortisation (EBITDA) in that period and 37 percent of its revenue.

The company reported 2 percent growth in total users in the three months to end-September, bringing its customer base to 219 million users across its 22 markets in Africa and the Middle East.

In its home market of South Africa, where it lags behind rival Vodacom MTN said it added 1.4 million new subscribers.

Data revenue was up 34 percent so far this year, and now contributes to nearly 18 percent of its total revenue.

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Nigeria naira hits 8-month low as firms hedge currency risk

Nigeria's naira eased to an 8-month closing low of 165.55 against the dollar on Tuesday, due to strong dollar demand from importers and companies reducing their exposure to the local currency, dealers said.
The naira fell 0.16 percent from Monday's close of 164.28 to the dollar, a level last seen on Feb. 21, a day after the president suspended the central bank governor, sending financial markets into a tailspin.
Concerns about the falling price of oil, Nigeria's main source of foreign currency earnings, contributed to the drop. The local subsidiary of Chevron sold $45 million to Nigerian banks, dealers said, but that was not enough to support the naira.
"At the current level, we expect the central bank to step in or else the naira will fall further," one dealer said
The currency has lost 4.1 percent against the dollar so far this year and is trading above the central bank's target range of within 3 percent of 155 naira to the dollar.
Demand for hard currency was coming from local importers and companies worried about the risk of a devaluation, dealers said.
"We admit that prospects of a near-term devaluation have risen, thanks largely to the recent decline in oil prices," economists at Morgan Stanley said in a note, adding that the authorities would be reluctant to devalue ahead of an election due in February.
Brent crude held gains around $86 a barrel on Tuesday as news of robust Chinese oil demand buoyed the market, although prices were capped by oversupply and concerns about the health of the rest of the global economy.

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Why I will not support a Buhari presidency again‏

I am aware that the statement I'm about to make will surely attract range of rage from many of my friends across the globe, nonetheless am compelled to go ahead with my decision to renounce my support for the great general.
In the last couple of weeks, I have been ruminating over my ardent support for a General Mohammudu Buhari presidency since his foray into the political arena. My conclusion has been that under the prevailing circumstances in our country today, a Buhari presidency remains a mirage, especially with the successful transformation agenda of incumbent president Goodluck Ebele Jonathan across all sectors of the economy.
Let me start by confessing that my decision to turn a torn coat was informed by the need to grab my own portion of the national cake being brazenly shared in Abuja by GEJ in his quest to retain the presidency at all cost for the second time. A Buhari presidency will surely upset the apple cart at this point in time because those of us who are yet to participate in the looting of the nation commonwealth may never be opportune to do so in the foreseeable future, knowing Buhari’s antecedent.
From my vantage position as an observer of the economy and the political development in the country, I have come to recognise the futility of a change promised by the possibility of a Buhari presidency. Many Nigerians today are eager to fill their stomach because of the widespread unemployment and hunger in the land caused by the massive concentration of our common wealth in the bank accounts of a few. Yet, of what use will be a government that promised to fight corruption, when corruption has come to stay in the country and the only option left for some us to grab our own portion of the commonwealth is to team up with team Jonathan. If you can't beat them, the saying goes, you join them. Our president is doing a good job by concentrating the wealth of the nation in the hands of few scoundrels, why then should I want to deliberately deprive myself of the privilege of joining the elite club. With the way and manner fuel subsidy scammers are protected and shielded from prosecution, it is obvious Nigeria is not ready for an egalitarian society being promised by a Buhari presidency. Of what use is my continue romance with poverty when only what it takes to belong to the club of those who borrowed money from banks and refused to pay back without any dire consequences is to hobnob with the Jonathan presidency. When corrupt government officials are not corrupt but mere thieves that can be forgiven. Boko Haram insurgency is having an upper hands, displacing thousands of peasants across the North eastern part of the country today, but the good news is that many of the fat cats in the military and the few lucky contractors are smiling to the bank, no thanks to the sustained increased in budgetary allocation for defence. Why would I want to deny myself of the privilege to be among those few fat cats then?
As long as the insurgency is concentrated in the north, Jonathan presidency is secured, and if the Boko Haram warriors chose to extend their battle beyond the north east, the better for the GEJ campaigners, the options are enormous. The government could postponed 2015 election or better still, increase defence budget to fight the insurgents, thereby creating opportunity for more of the commonwealth to enter into few people's pockets.
Waiting for a Buhari presidency who could crush the insurgency in no time is a bad business and I have learnt not to be part of such transaction because it will only favour just a section of the populace.
I have been in the army of the masses for too long, and it’s like there will never be an opportunity to be in the league of private jet owners if I continue to support a Buhari presidency. Of what use is a war against indiscipline, when all we need is a bunch of unruly power mongers, wiping up ethnics sentiments to justify their holds on power?
Billions of our commonwealth is being pumped into a bottomless pit of amnesty programme and since am from Ondo State, one of the so-called Niger delta region, I stand a better chance to partake in the largesse without fear of being exposed or prosecuted, provided I remain in the caucus.
Nigerian gross domestic products (GDP) has expanded exponentially since the presidency under GEJ, at least from the large pool of private jets owners, defence contractors, self perpetuating campaigners and hanger-on’s, the evidence of prosperity in the land remain glaring, not withstand the army of unemployed graduates and large scale deprivation in the land. For me, more opportunities still abound in the field of turncoat business to scoop off some billions of naira in lurch campaign funds, etc.
I don't want to die waiting for a reformed banking sector, when GEJ option of giving back the banks to the same people who ruin them initially is taking shape and working. The Central Bank of Nigeria (CBN) is now well positioned with the new helmsman to correct all the damages done by the previous administrator of the apex bank. The reintroduction of charges on the use of ATM of other banks is a well thought out decision to put more money in the hands of the few bank owners. Now, the bankers have one of their owns at the helm of affairs at CBN, while there will no longer be anybody to disturb the serene peace in Aso rock about an imaginary missing $20 billion oil revenue again. The sack of the former Nigeria National Petroleum Corporation (NNPC) group managing director has successfully sealed the mouth of those who are still thinking any money is missing. I have come to realise that those who are still clamouring for change are the few who are yet to partake in the delicious transformation stew. Once you have the opportunity to buy your own private jet, or at least make enough money from over inflated bullet proof cars supplied to ministers and the retinue of special advisers, you won't have the time to clamour for good roads or improve environment. Sending your children to a public school is no longer fashionable, why worry about improvement in the standard of education then, when you can send your wards to a private school either here or abroad? Tell me, of what use is an improved health sector when you too can join the president in travelling to a German hospital to treat mere malaria? Why do I need a reformed police force, when I can employ army of militants to guide my abode day and night and be on my convoy on the road?
I have also come to realise that its vain asking government to create incentive to resuscitate the manufacturing sector, when there is a vast field for investing in the politics of boot-licking of those in power and reap bountiful thereafter. I have also come to a conclusion that an average Nigerian does not seek a change from the prevailing ruts. Check out the campaign rallies of the politicians, the mammoth crown of the masses in attendance demonstrates our sense of value. Everyone is waiting for his/her own turn to share in the commonwealth.
Again, the willingness of some people to be used to counter progressive advocacy simply because of a morsel of meal is enough evidence that giving the opportunity, even the majority of the so called masses will opt for a portion of the largess than support a popular change. It is evidence that the 2015 election will be fought and won by the use of inducement, and I don't want to be left behind. In this wise, PDP and Jonathan has the upper hands because of its free access to our commonwealth and their desperation to use whatever means to hold on to power.
Even though I recognise that a Buhari presidency would be of immense benefits to the majority of the people, but why should I wait on the queue when I can jump it with impunity to enrich myself, my family and sprinkle some around.
Please help me tell the whole world, that I have jump the ship, because I need stomach infrastructure, let them hold on to the real development. Like Spiderman said, no matter what you do, they will still hate you. So let them start hating me now, because it’s my turn to chop.





Mayowa is a Lagos based financial journalist

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Naira firms against dollar as investors eye Nigeria assets

Nigeria's naira firmed against the U.S. dollar on Monday as financial markets got a breather following weeks of sell-offs and two oil companies sold the greenback to some lenders, dealers said.
The unit closed at 165.28 naira to the dollar, firmer than Friday's close of 165.35 naira, its lowest level since March.
Nigeria's stock index ended a 10-day losing streak to gain 1.2 percent on Monday, with renewed buying after investors viewed the market as oversold.
"The recovery in the debt and equity markets impacted positively on the forex market," one dealer said, adding that some oil companies also sold dollars to lenders.
Dealers said yields fell across the board in the bond market with the 10-year benchmark bond down 20 basis point on Monday to 12.75 percent, as buying pressure mounted from some pension funds.
Oil firm Seplat sold about $20 million while the local unit of China's Addax Petroleum sold $8 million, to boost dollar liquidity on the interbank market.
The naira had been under pressure with the price of crude oil, Nigeria's main source of foreign exchange earnings, resuming a downward move to fall below $86 a barrel on Monday as supply overwhelmed weak demand in several key markets.
The weakness in the local currency had triggered a sell-off in naira assets, as foreign investors, who make up more than half of trades on the local bourse, repatriated funds.

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Nigeria's SEC investigating share price freeze on Access Bank

Nigeria's Securities and Exchange Commission (SEC) said it was investigating last month's price freeze on the shares of top tier lender Access Bank ahead of its planned 68 billion naira ($415 million) rights issue.
The Nigerian Stock Exchange (NSE) in September suspended the shares for a week after the bank applied to the bourse, arguing that information on its capital raising was not publicly available and that it wanted to avoid speculation in its shares.
The SEC, the main securities market regulator said in a statement it was aware of last month's price freeze on Access shares, but it had issued a directive five years ago that no listed company should have its share price frozen for reasons of fund raising.
"The commission is ... investigating the circumstances surrounding the action of the NSE in imposing the technical suspension on Access Bank Plc shares as no such suspension was placed on the shares of other listed companies who undertook capital raising recently," the SEC said in a statement.
It said it directed the bourse to lift the freeze on September 23.
Former Access Bank CEO Aigboje Aig-Imoukhuede became president of the bourse in September, replacing Africa's richest man cement tycoon Aliko Dangote.
The SEC said rival firms such as Diamond Bank and Unity Bank had their shares trading while they were raising funds.
Access Bank earlier this week said it had filed for regulatory approval to raise fresh capital after its shareholders backed the plan.
Shares in the bank closed at 8.35 naira each on Thursday, more than 11 percent below the pre-suspension price.

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Nigerian interbank rates flat, more cash flows expected

Nigeria's interbank lending rates were unchanged for the third straight weeks at 10.37 percent on Friday, supported by a large pool of naira liquidity and expected large cash flows in the coming weeks.
Traders said the central bank repaid 218 billion naira($1.32 billion) in matured open-market Operations bills this week. Expectations that monthly budgetary allocations will soon be disbursed to government agencies put the market in a comfortable position.
Although market liquidity opened with a cash balance of around 431 billion naira on Friday, lower than the 550 billion naira surplus last Friday, traders said more cash flow from budget allocations and planned retirement of about 978 billion naira at the end of October by the country's "bad" bank calmed the market.
"The expectation of additional cash flow from budget allocations next week, and AMCON's (Assets Management Company of Nigeria) plans to retire about 978 billion naira bonds by Oct. 31,helped to stabilise interest rate," one dealer said.
The open buy-back rate was flat at 10.25 percent this week, 1.75 basis points below the central bank's benchmark interest rate of 12 percent.
Overnight placements also remained flat at 10.50 percent for the third consecutive week.
Traders said state-owned energy company NNPC recalled a portion of its deposits with some banks to its account with the central bank this week, while cash flows to OMO bills and bond auctions led to reduction in system cash balance.

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Nigeria hikes government bond yields to draw investors

Nigeria priced its 3-year government bond at 12.14 percent at Wednesday's auction, up 102 basis points from the previous sale, to attract foreign investors unnerved by falling oil prices and a weakening naira.
The Debt Management Office said on Friday that yields on its longer-term 10-year and 20-year government bonds were priced for sale at more than 30 basis points higher than at its last debt auction, in September.
The foreign investors who are significant buyers of Nigerian debt were not rolling over bonds at maturity, analysts said. Instead, they were sending their money abroad to safe havens as interest rates in the United States begin to normalise.
Demand for government notes from Africa's biggest economy dropped to 116.31 billion naira from 174.01 billion naira in September.
"There was some buying interest as the market sold off yesterday. Some domestic investors took advantage to take position," one dealer told Reuters.
At the secondary market, yield on the 3-year most liquid bond rose 7 basis points to 12.81 percent. The 10-year stood at 12.91 percent, up 14 basis point.
Financial markets in Nigeria have been under pressure as foreign investors exit naira assets because of declining global oil prices and a weaker local currency, which has lost 3.7 percent since the beginning of the year.
The naira closed at 165.35 to the U.S. dollar, its weakest in at least eight months, as investors rushed to repatriate money to safe havens, dealers said.
The debt office raised 30 billion naira in 10-year debt at 12.79 percent, up 57 basis points. The 20-year paper fetched 12.69 percent to raise 25 billion naira, up 31 basis point from September's auction.
It raised 18.6 billion naira in 3-year debt.
The debt office sold an additional 10.33 billion naira in 10-year bonds on a non-competitive basis at 14.20 percent, it said.
All the debt notes were re-openings of previous issues.

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Nigerian bond yields seen further up

Nigerian bond yields are expected to rise next week as concern about falling global oil prices and a weakening currency persists.
Offshore investors have been cutting back on their local debt holdings since last month, putting the local currency under pressure and sending bond yields higher.
Traders said yields has gone up by around 30 basis points since last week as more investors dumped the local debt and repatriated their funds back to their home countries.
At the primary auction this week, the debt management office (DMO) sold about 83.94 billion naira($509.62 million) in bonds of maturities between 3 and 20 years. It offered higher yields to attract foreign investors unnerved by falling oil prices and a weakening naira.
"With the prevailing market sentiment, yields will continue to rise in the near term. More investors are cautious at this point because of the falling oil price, which has implications on the local economy," said one dealer.
Yield on the benchmark 2024 bond rose to 12.81 percent on Friday, compared with 12.59 percent last week, while 2022 paper was trading around 12.88 percent against 12.60 percent last Friday.
The local currency has fallen more than 3.65 percent year-to-date as pressure on the naira persisted.

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Nigeria naira sheds 0.24 pct as demand for dollars grows

The Nigerian naira fell 0.24 percent against the dollar on Wednesday as demand for the U.S. currency strengthened despite the sale of large amounts of dollar by the local unit of Royal Dutch Shell, dealers said.
The naira closed at 164.58 to the dollar, weaker than Tuesday's close of 164.18.
Shell sold an undisclosed amount of dollars to some lenders, but dealers said high demand countered its effect. Hard currency is in demand in Nigeria on concern that lower oil prices <LCOc1> will weaken the naira and widen the current account of Africa's biggest economy.
The naira firmed against the U.S. currency on Monday, after state-owned oil company NNPC, the source of most of the dollar liquidity traded on the interbank market, sold dollars to lenders. But that has since dried up, dealers say.
"We hope the central bank will continue to intervene, otherwise the naira might depreciates further," one dealer said.

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Nigeria to open up power market for competition

After series of postponements, all is now set for the Federal Government to declare the Transitional Electricity Market, which will mark the commencement of full competition in the industry.

One significant change under the new arrangement is that participants in the market will commence full trading by contracts. During this stage of the market, institutional and normative structures of a competitive and efficient electricity market will be put in place.

The Nigerian Electricity Regulatory Commission said it had successfully satisfied all the conditions precedent for the commencement of the TEM as prescribed by the electricity market rules.

The declaration of the TEM had been postponed last year due to the fact that certain conditions had not been met and it was slated to commence on March 1, 2014. It, however, did not commence on that date.

But speaking in Abuja on Monday during the inauguration of members of the Dispute Resolution Panel of the Nigerian Electricity Supply Industry, the Chairman, NERC, Dr. Sam Amadi, said, “By today’s event, we have met the last condition precedent for the commencement of the TEM as prescribed by the market rules.

“Now that we have completed the last of the formal conditions precedent and we are effectively handling the informal conditions precedent, NERC is poised to recommend to the Minister of Power to declare the commencement of the TEM at a named date.”

In 2011, NERC established an industry wide Transition Steering Group to manage the efforts of stakeholders in the power sector to achieve the conditions precedent for the commencement of the TEM.

The Electric Power Sector Reform Act, 2005 prescribes that the market will enter into a transitional stage before the beginning of full competitive electricity market.

Some of the conditions, which are expected to be met during the interim period between the completion of the privatisation process and the start of the TEM include the execution of the market participation agreement, market operations system regulations, market settlement system, and the procedures for registration and admission processes for market participants.

The Federal Government had on March 17, 2014 announced the indefinite suspension of the implementation of the TEM, saying that it was not concerned about the declaration of the TEM but was bothered about putting the right market conditions in place for the sector to thrive.

The Minister of Power, Prof. Chinedu Nebo, while speaking at the Nigerian Power Conference in Abuja, had stated that the new owners of the distribution companies carved out of the defunct Power Holding Company of Nigeria were responsible for the delay in the declaration of the TEM.

According to him, the new owners of the distribution companies needed to be sure of their ability to recoup their investment, especially through revenue collection.

Amadi, while inaugurating the DRP on Monday, pointed out some informal conditions precedent that were not listed in the market rules, but were necessary for the optimal working of the market.

He said, “For this stage of the market, certain formal and informal conditions precedent need to be met. The formal conditions precedent include the approval of grid codes and market rules, the establishment of an independent regulator, the establishment of market operation and system operation with functional capabilities, and the establishment of a market dispute resolution mechanism.”

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Nigeria’ll lose Africa’s top oil producer status – IEA

Nigeria will be overtaken as Africa’s largest crude oil producer by Angola from around 2016 to the early 2020s, as crude theft and regulatory uncertainties persist in the Nigerian oil industry, the International Energy Agency says in a new report published on Monday.

The report entitled: ‘Africa Energy Outlook’, a special package in the 2014 World Energy Outlook series, stated that during the period, Angola was also likely to be Africa’s largest crude oil exporter.

It noted that Angola had a taste of the position in May 2014 when monthly exports from Nigeria dipped below hers due largely to theft and sabotage-related outages

“Signs of this role reversal between Nigeria and Angola have been present for a while. Upstream investments have been flowing more readily to Angola in recent years,” the IEA said, adding that a telling comparison was the extent of the “pipeline” of major offshore projects in the two countries.

Although Angola has seen some slowing of commitments to new projects since a tightening of fiscal terms in 2006, more than 1.3 million barrels per day of nameplate capacity is due to come into operation between 2014 and 2020, compared with 0.9 million bpd in Nigeria, according to the report.

“More telling still is that only 40 per cent of the planned capacity in Nigeria has passed the final investment decision, whereas 70 per cent of the planned capacity in Angola has already passed this milestone,” the Chief Economist of the IEA, Fatih Birol, stated in the report.

The report noted that only Total had taken a final investment decision in Nigeria on the Egina project in the last year, adding that a key obstacle in the country was uncertainty over regulatory provisions, with the much-delayed passage of the Petroleum Industry Bill.

The IEA said that a Senate committee had estimated that $28bn of upstream investment was dependent on the passage of the legislation.

“Until commercial decision makers are in a position to evaluate their projects against a more-or-less well-defined set of fiscal and regulatory conditions, continued project delays are inevitable,” it further said. Culled from Punch Newspaper

Nigeria has not held a licensing round for new exploration acreages since 2007 (a promised round of marginal fields has not materialised so far in 2014), whereas Angola has held pre-salt rounds, offshore in 2011 and onshore in 2013, the IEA said.

“In the 10 years to 2013, Angola drilled 166 exploration and appraisal wells in deep water, while Nigeria drilled 144.”

The IEA, however, said it expected the Nigerian crude output to edge higher to 2.2 million bpd by 2040 and total liquids production, buoyed by natural gas liquids, reaching three million bpd, helping the country to reclaim the top oil producer position.

“For the moment, uncertainty persists, but our projections assume that a more stable regulatory and fiscal environment, reflecting the key aims of the PIB, is achieved by 2020, providing a stimulus for upstream investment and a particular boost to the gas sector,” the agency said.

The IEA estimated that Nigeria is currently losing 150,000 bpd to oil theft, the equivalent of $5bn a year.

“Uncertainty over the regulatory environment is only one of the challenges facing Nigeria’s oil sector. A more pressing immediate concern is the impact of unrest and militancy in the Niger Delta region, which results both in oil theft and sabotage to the energy infrastructure. This has been a problem in Nigeria for many years, but the scale has increased,” it said.

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Nigerian naira firms on NNPC dollar sales

The Nigerian naira firmed against the dollar on the interbank market on Monday, gaining 0.48 percent, after state-owned energy company NNPC sold an undisclosed amount of U.S. currency to lenders.
The naira closed at 163.85 to the dollar, compared with 164.65 at Friday's close.
The naira has been slipping since last month, weakened by falling global oil prices and low inflows of hard currency into Nigeria's debt and equity markets.
Traders said the NNPC's dollar sales brought a temporary relief to the market, but the naira is seen depreciating again, to the 164 to the dollar level, before Friday on persistent demand from mainly offshore investors selling down their bonds and equity holdings.
"As long as the oil price continues to slip, the naira will remain under pressure from those who will want to hedge against further loss," one dealer said.
Nigeria is Africa's biggest oil producer. Oil prices have fallen by more than 20 percent since June, touching a four-year low on Monday below $88 a barrel, and oil analysts forecast further falls.

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Nigerian Breweries to merge with Consolidated

Nigerian Breweries (NB) said on Monday it won regulatory approval to merge its operations with rival Consolidated Breweries, majority owned by its parent firm Heineken.
Heineken, the majority shareholder in Nigerian Breweries, acquired a controlling stake in Consolidated Breweries in 2005 and said it would seek approvals to merge both businesses to take advantage of Nigeria's growing market for beer and malt drinks.
Nigerian Beweries, a unit of the world's third biggest brewer, said it has won Nigeria's Securities and Exchange Commission approval for the merger and said it would now seek shareholders' vote on the deal.
Neither firm disclosed the value of the deal. Nigerian Breweries listed on the Nigerian Stock Exchange will be the surviving entity after the merger.

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Sierra Leone eyes tenfold power sector expansion

Sierra Leone is aiming to increase its power capacity tenfold by 2017, a plan the energy minister said should be driven by foreign investors despite the outbreak of Ebola and a history of bureaucratic difficulties.

Sierra Leone has recorded strong economic growth rates in recent years as major mining projects came online, but the broader recovery from years of conflict during the 1990s has been slow and risks being derailed by an Ebola outbreak that has gripped the country.

"We are open for business," Henry Macauley told a packed conference room in the London offices of Herbert Smith Freehills, a law firm advising the government.

The plan aims to increase power capacity to 1,000 MW by 2017, from a current level of 100 MW.

"The political will is there and the appointment of a new minister of energy will likely inject some impetus into an often challenging negotiating environment," said Shah Jahan Khandokar of law firm Norton Rose Fulbright, which advised on a $220 million deal to build a 128 MW power plant in the capital Freetown by 2017.

Some critics doubt the government could approve deals quickly enough to ramp up production in such a short timeframe.

President Ernest Bai Koroma appointed Macauley in July after dismissing his predecessor, Oluniyi Robin-Coker, in February on charges of incompetence.   Continued...

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Nigerian bonds seen steady

Nigerian bond yields eased marginally this week after the debt management office announced a cut in the amount of bonds it plans to raise this month.

The debt office had announced plans to raise about 73.61 billion naira ($448 million) in bonds with maturities ranging between 3 years and 20 years at an auction next Wednesday, lower than the usual 100 billion naira offer.

"We expect strong demand at the auction on Wednesday because of the low volume of bonds on offer. But we see yields settling around the prevailing market level," one dealer said.

Traders said the secondary market was under some pressure from the falling naira and global oil prices, which forced some offshore investors to sell down a portion of their debt.

While yields on the 2022 debt paper closed at 12.60 percent, down from 12.65 last week, the 2024 note closed at 12.59 percent, up from 12.50 percent last week.

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Nigeria interbank rates stay flat for second consecutive week

Nigeria's interbank lending rates stayed flat for the second consecutive week at 10.37 percent on Friday, after the central bank paid off open market bills to boost liquidity, dealers said.

The central bank repaid about 130 billion naira ($790.27 million) in matured OMO bills and injected around 70 billion naira in net credit from cash reserves.

The market liquidity opened with a cash balance of around 550 billion naira surplus, marginally lower than 560 billion last Friday.

The open buy-back rate was flat at 10.25 percent this week, 1.75 basis points below the central bank's benchmark interest rate of 12 percent.

Overnight placements also remained unchanged at 10.50 percent for the second consecutive week.

Traders said rates should hover around the same level next week, because cash outflow remain insignificant.

"We don't expect much change in the liquidity level in the market next week and rates should stay flat unless the central bank increase the intensity of its mopping-up exercise," one dealer said. 

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Skye Bank signs Agreement for the purchase of Mainstreet Bank,

Skye Bank PLC has signed the Agreement for the purchase of 100 per cent shares of Mainstreet Bank from the Asset Management Corporation of Nigeria (AMCON). The Agreement was signed at the Lagos office of AMCON on Wednesday, October 8, 2014.

The Bank's executive Management team led by the Group Managing Director and Chief Executive Officer, Mr. Timothy Oguntayo, signed on behalf of the Bank, while AMCON was represented by its executive Management.

It wass also gathered that Skye Bank had paid the mandatory deposit of 20 per cent for the acquisition of the target Bank. The payment, which was made well ahead of the deadline, confirms Skye Bank’s commitment and ability to consummate the transaction.

The Bank has also confirmed its ability to meet the remaining financial commitment on the acquisition within the specified time frame.

AMCON had announced Skye Bank as the preferred bidder for the acquisition of all its interest in Mainstreet Bank, representing the entire capital of the bridge bank. Skye Bank emerged the preferred bidder after a rigorous bidding exercise that spanned five months, with over 20 bidders contending.
The acquisition of Mainstreet Bank is part of Skye Bank’s strategic plan for growth.

It will be recalled that Skye Bank emerged from the very successful merger and integration of five banks in 2006, following the first phase of the banking industry consolidation. The Bank intends to leverage its wealth of experience from the successful integration of five banks to drive efficiency, increase market share and ultimately ramp up stakeholder value from the acquisition of Mainstreet Bank.

The acquisition will avail the bank many benefits, including cost leadership, business optimisation, and greater ability to offer business convenience to its teeming retail and commercial customers, with a combined branch network of over 450, across all the states of the Federation.  

Skye Bank, a leading tier 2 Bank in Nigeria, was among the 8 banks recently designated as ‘Systemically Important Banks’, which reflects its industry leadership, strong market share, diverse location spread, and strong brand equity.

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Nigeria naira closes at 7-month low, despite cenbank intervention

* Stocks at 1-month low as funds exit

* Benchmark 10-year bond down 27 basis point

* Oil price worry investors holding Nigerian assets

Nigeria's naira currency eased to a 7-month closing low against the U.S. dollar on
Wednesday, despite a central bank intervention to prop it up, as falling oil prices pushed investors out of domestic debt and equity markets, dealers said.
The unit closed at 164.50 naira to the dollar, a level last seen on March 6, but down just 0.1 percent from the 164.35 naira it closed at on Friday. Financial markets were closed on Monday and Tuesday to mark a two-day Muslim holiday.
The naira had slipped to 165.30 intraday, which prompted the central bank to step in with an undisclosed amount of dollars to try to satisfy demand.
Nigeria's beleaguered currency has come under pressure in the past two months from falling global oil prices, dampening appetite for assets in Africa's biggest economy.
Though the central bank has been intervening since this year to prop up its value, it has lost 3.5 percent since January 2.
The local unit of China's Addax petroleum also sold around $3 million on Wednesday, which was not sufficient to support the naira, dealers said.
Dealers said yield on the 10-year benchmark bond rose 27 basis points to 12.80 percent on Wednesday while the all-share index fell to a one-month closing low of 40,995 points, down 0.3 percent.
Brent crude oil fell to a fresh 27-month low under $91 a barrel on Wednesday, as gloomy economic growth forecasts prompted concerns about global oil demand and U.S. inventory data confirmed abundant supply.

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Nigeria bonds seen rising on concerns for naira

Yields on Nigerian bonds climbed this week by around 20 basis points across the board, caused by selling pressure from some offshore and local pensions. That trend is expected to continue next week.

Traders said some investors were selling off their bond positions over concerns that the central bank could hike the benchmark interest rate to support the falling naira currency.

The naira has been slipping for the past three weeks, weakened by declines in global oil prices and low inflows of hard currency into Nigeria's debt and equity markets.

"The impact of the falling naira is weighing on the bond market... some investors believe the central bank could hike interest rates to stem the rapid depreciation of the local currency," one dealer said.

Yields on the most active tenor 2022 rose to 12.65 percent, higher than 12.28 percent last Friday.

The 2024 bond closed at 12.56 percent, up from 12.39 percent, while the 2034 bond closed at 12.43 percent compared with 12.29 percent.

Nigeria's central bank kept its benchmark interest rate at 12 percent at its last meeting on Sept. 19 on concerns over increased liquidity and rising inflation in Africa's biggest economy. However, its governor said that given high levels of bank liquidity, interest rates should be going up, but the bank had to weigh the impact on businesses of higher rates.

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Nigeria interbank rates ease as cenbank pays off matured T. bills

Nigeria's interbank lending rates eased marginally to an average of 10.37 percent on Friday, down from 10.50 percent last week, after the government paid off open market treasury bills and retired matured bonds, dealers said.

The bank repaid about 308 billion naira ($1.88 billion) in matured open market bills, while the debt office retired 100 billion naira in matured bond this week, boosting liquidity and lowering the cost of borrowing among lenders.

The market opened with a cash balance of around 516 billion naira made up of government budgetary allocations, oil company cash call payments and matured open market bills, before it paid off treasury bills this week, dealers said.

Lenders' cash balance with the central bank opened in surplus of around 560 billion on Friday, compared to around 300 billion naira last week.

The open buy-back rate eased by 25 basis points to 10.25 percent this week compared with 10.50 percent last week, 1.75 basis points below the central bank's benchmark interest rate of 12 percent.

Overnight placements remained unchanged at 10.50 percent, the same level as last week.

Traders said rates should climb marginally next week with the central bank expected to enforce its cash reserve requirement on bank balances next week, while possible cash flow to foreign exchange purchases could also curb liquidity. 

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S.Africa's Nedbank to take 20 pct stake in Ecobank for $493 mln

Nedbank Group said on Thursday it will acquire a 20 percent stake in pan-African lender Ecobank for $493 million, ending months of speculation the South African bank would walk away from the deal over governance concerns.
Nedbank, South Africa's fourth-largest lender, had a right to acquire the stake under the terms of a 2011 loan to Ecobank. But a crisis over corporate governance and the departure of Ecobank's chief executive in March raised questions about whether Nedbank would go through with the deal.
Nedbank will pay $493.4 million in cash for new Ecobank shares, it said in a statement.
Nedbank Chief Executive Mike Brown told Reuters in August that Ecobank had made "enormous progress" on resolving its governance issues.
Togo-based Ecobank has a presence in over 30 sub-Saharan countries, meaning the deal would broaden Nedbank's reach well beyond its core South African market.

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