Nigerian naira down 10 pct yr/yr, stocks fall 17 pct

The Nigerian naira closed little changed against the dollar on both the parallel and interbank market on Thursday, while the stock index rose and the interbank rate remained at 1 percent for overnight lending.
The local currency closed on the interbank market at 199.50 to the dollar on Thursday, compared with 181.50 to the dollar a year ago, down 9.91 percent at the official window. On the parallel market, the naira traded at 266 to the dollar, weaker by 39.26 percent from 191 to the dollar at the close last year.
The stock market rose 3.11 percent for the day. But it ended down 17.35 percent for the year.
The stock market, which has the second-biggest weighting after Kuwait on the MSCI frontier market index, was up 3.1 percent, or 28,643 points, on Thursday, touching its highest since Nov. 12.

The central bank had pegged the naira exchange rate at 198 to the dollar in February and scrapped a two-way interbank quote as global oil prices fell, to conserve foreign exchange reserves.
Also in June, the central bank introduced more foreign exchange limits, excluding about 41 items from access to foreign exchange at the official window to further reduce pressure on available dollars.
Nigeria's foreign exchange reserves stood at $29.10 billion by Dec. 30, down 15.62 percent from a year ago after efforts to support the local currency.
Nigeria, Africa's top crude oil exporter and biggest economy, has rejected calls to devalue its currency, saying the naira "is appropriately priced" at the prevailing level.
Cost of borrowing remained held at 1 percent for overnight lending on Thursday, better than around 10.33 percent last year because of increased liquidity.
Market liquidity was around 955 billion naira on Thursday, in spite of efforts by the central bank twice this week to reduce the level by sales of Open Market Operation bills.
The bank sold about 199 billion naira of short-dated OMO treasury bills twice this week to drain liquidity and reduce pressure on the naira.

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Nigeria's forex reserves decline 15.61 pct to $29.13 bln yr/yr by Dec 29

Nigeria's foreign exchange reserves declined by 15.61 percent year-on-year to $29.13 billion by Dec. 29, from $34.52 billion a year ago, data from the central bank showed on Thursday.
The forex reserves of Africa's biggest economy and top crude exporter also dropped by 2.6 percent in one month from $29.91 billion a month earlier.
The forex reserves fell to their lowest since July 1, 2015 when they stood at $29.07 billion because the central bank has been using the reserves to support the ailing naira currency in the wake of falling global oil prices.

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How MTN, Erricsion help pro Biafra to spread campaign on radio

Nigeria said the transmitters for Radio Biafra, which has been accused of spreading secessionist agenda and campaigning for the carving out of a Biafra Republic from Nigeria, were found to be installed on MTN masts in Enugu and Anambra states.
In a court paper filed by the anti-graft agency against the the director of the illegal radio, the installation of the transmitters on the telecommunications company’s masts was to ensure wider coverage for the radio.

The headquarters of the radio station is “presumably in London.”
The report was contained in the government’s case summary of the fresh six counts of treason and other ancillary offences instituted against the founder of Radio Biafra and leader of the Indigenous People of Biafra, Nnamdi Kanu, and two others, before the Federal High Court in Abuja.
One of the two other defendants in the six counts filed by the Federal Government is a field maintenance engineer, David Nwawuisi, charged with the responsibility of maintaining the MTN masts in Enugu State.
The other defendant, Benjamin Madubugwu, was said to be living in Ubilisiuzo, Ihiala Local Government Area of Anambra State, where he allegedly received custody of a container housing transmitters from Kanu.
On December 23, during the accused persons’ appearance in court for their scheduled arraignment, Kanu refused to take his plea due to what he called his lack of confidence in the presiding judge, Justice Ahmed Mohammed.
The judge promptly returned the case file to the Chief Judge of the Federal High Court, Justice Ibrahim Auta, for reassignment to another judge and the three accused persons were returned to the custody of the Department of State Services.
The fresh charges were filed against the three men barely 24 hours after Justice Adeniyi Ademola, in a ruling on Kanu’s bail application on December 17, ordered his unconditional release from DSS custody, having been detained for about two months without any valid charges filed against him.
The Federal Director of Public Prosecutions, Mr. Mohammed Diri, who signed the fresh charges, the case summary and other processes accompanying them on behalf of the government, alleged that Nwawuisi installed the transmitters on MTN masts “on request by an IPOB member, Chidibere Onwudiwe.”
Diri added, “The 3rd defendant (Nwawuisi), a Field Maintenance Engineer, charged with the responsibility of maintaining MTN masts in Enugu State, was also arrested in the course of the investigation.
“He agreed, on the request of an IPOB member, who is at large, Chidebere Onwudiwe, to install and did install IPOB radio transmitters on MTN masts for a consideration.”
The prosecution alleged that the transmitters were smuggled into Nigeria by Kanu and were discovered during a search in Madubugwu’s residence.
While Kanu was accused of treasonable felony, management of an unlawful society (IPOB), and smuggling of goods, including radio transmitters, into the country, Madubugwu and Nwawuisi were accused of assisting in the management of the said unlawful group.
The prosecution alleged, in the six counts, that the transmitters were installed on the MTN masts between April and May 2015.
The sixth count read, “That you, David Nwawuisi, at Enugu and Anambra states, between April and May 2015 assisted in the management of an illegal society by doing an act to wit: you permitted one Chidiebere Onwudiwe, now at large, to install Radio Biafra transmitters with knowledge that the said transmitters were property of the Indigenous People of Biafra, an unlawful society, with the intention to propagate its secession intention and that you thereby committed an offence punishable under Section 6 of the Criminal Code Act, CAP C38, Laws of the Federation of Nigeria.”
Kanu was said to have on many occasions broadcast on the radio, which is said to have as its Mission Statement, ‘The defence of the rights of the Indigenous People of Biafra; and ultimately the actualisation of the Republic of Biafra’, reiterating that “Biafra must be realised.”
The case summary reads, “In one of such broadcasts on August 1, 2015, he called on members of IPOB in the Diaspora to identify children of Nigerian dignitaries, their residences and schools, with a view to taking reprisal action against them in the event of attacks against Biafrans by Nigerian security agents.”
The Federal Government said the proponents of the Republic of Biafra proposed that the republic would consist of “states in the South-East and South-South regions except that in the case of Edo State, only the Igbanke community will be part of the Republic of Biafra as well as the Igalas in Kogi State and the Idomas in Benue State.”
No new date has been fixed for the arraignment of the accused persons.

* First published by Punch Newspaper

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Nigerian naira firms on unofficial market after cbank dollar sales

The Nigerian naira firmed to 266 to the dollar on the unofficial market on Wednesday, gaining 1.5 percent after the central bank sold dollars to exchange houses and as demand for the U.S. currency slowed, traders said.
The central bank sold $10,000 to each of more than 2,000 bureau de change operators, Aminu Gwadabe, the head of Nigeria's bureaux de change association, told Reuters.
He said the intervention would be the last for the year.
The naira fell to a record low of 280 to the dollar last week after the central bank advised commercial banks to limit how much customers could spend abroad using their debit cards.
"The pressure on the market has slowed because most businesses are closing down for the year, while the number of those travelling abroad has fallen," Gwadabe said.
On the official interbank market, the naira closed at 199.50, some 1.26 percent weaker than the central bank's peg rate.
Traders said since the central bank closed its intervention window this week, the naira has been trading at 2 naira above the peg rate.
The Nigerian money market reopens next Tuesday.

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Nigerian interbank rate eases on liquidity boost

Nigeria's overnight lending rate eased marginally to 0.75 percent on Wednesday from 1 percent in the last five weeks after the central bank refunded cash set aside by banks to buy dollars.
Traders said the impact of the refund and anticipated injection of additional cash from November budgetary allocations to states and local government also helped to reduce cost of borrowing among banks.
However, the secured open buy-back (OBB) -- the rate at which lenders can borrow from the interbank market using treasury bills as collateral -- held flat at 0.5 percent it has traded in the last five weeks, far below the central bank's benchmark rate.
Traders said about 300 billion naira additional funds are expected from the budget disbursal before the close of business on Wednesday.
They said although market liquidity dropped to around 230.5 billion naira on Wednesday from 400 billion naira on Friday, it was expected to rise again helped by the refunds and possible budget disbursals.
"We expect the cost of borrowing to stay flat for the rest of the year as most businesses wind down and tidy their books for the financial year ending," another dealer said.
The Nigerian money market reopens next Tuesday.

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Nigeria retains pump price of gasoline at 87 naira, to borrow 1.84 trl naira

Nigerian President Muhammdu Buhari presented the 2016 budget before the national assembly on Tuesday, saying the pump price of petrol will remain at 87 naira per liter for the main time and assuring his determination to fight corruption.

President Buhari

President Buhari said he is expects a budget deficit of around 2.2 trillion naira in 2016 which would be funded by local and foreign borrowing,
According to him, the budget expenditure of 6.08 trillion naira with about 1.8 trillion budgeted for capital expenditures o make Africa's biggest economy more "competitive", he said.
GDP growth would be 4.4 percent next year, he said, reiterating that the budget was based on an oil price of $38 a barrel. Oil production would be 2.2 million barrels a day.
"The budget proposal seeks to stimulate the economy, making it more competitive by focusing on infrastructural development delivery inclusive growth and prioritise the welfare of Nigerian," the president said.
The government, he said will deploy about 500,000 unemployed graduates as teachers in rural primary schools to boost employment and enhance quality of education at the lower level.
"We have demonstrated a strong will to fight corruption, am sure you will agree that the share scale of corruption and impunity of the past explain in part the economic challenges we now face," President said.
"On this initiative and the more to come, we shall not be deterred, we will pursue the recovery of everyhting that belong to the people of Nigeria. No matter where it is hidden, no matter how long it will take."

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Nigeria's trade balance weakens as oil prices, currency controls bite

Nigerian exports plunged in the third quarter from a year ago and imports also fell, the national bureau of statistics (NBS) said, as currency controls introduced by the central bank this year to support the economy start to bite.
The balance of trade in the third quarter was 645 billion naira, down from 2.87 trillion naira in the third quarter a year ago ($14.42 billion - $3.24 billion).
Africa's biggest economy relies on oil exports for about 58 percent of government revenue. But the price of crude has been falling, reaching its lowest in more than six years last week.
Consequently, Nigeria faces its worst economic crisis in years, since exports of oil also bring in the hard currency that pays for imports. And because of its limited manufacturing, Nigeria imports most of what it consumes.
Nigeria's exports fell by 50.3 percent in the third quarter from a year ago and imports declined 7.3 percent, the NBS said. The fall in crude oil exports, which accounted for 69.1 percent of total domestic exports this year, hit the economy the most.
"The sharp decline in exports and slight decrease in imports contributed to a continued fall in the country's trade balance, by 32 percent," the NBS said in a report.
Crude exports fell 18.8 percent in the third quarter from the second. Imports dropped 1 percent from the second quarter, the NBS said.
Currency controls imposed by the central bank are one reason for the decline in imports. The bank was forced to devalue the naira in November as oil prices plummeted and pegged it to the dollar in February in a de facto devaluation.
In June, it curbed access to the interbank currency market for importers bringing in a variety of goods. In an effort to conserve its dollar reserves, the bank said that importers could no longer get hard currency to buy 41 items, ranging from toothpicks and rice to steel products and private jets.
The bulk of Nigeria's imports were food and beverages, along with machinery and appliances, vehicles and aircraft parts and petroleum products. They came mostly from China, United States, Belgium, the Netherlands and India. Intra African imports accounted for 3.9 percent of the total.
The United States and the European Union in November raised concerns at the World Trade Organization about Nigeria's curbs on access to foreign currency, a WTO official said.

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Nigeria stocks down to 3-year low, tracks global market

Nigerian stocks hit a three-year low on Friday, tracking a fall in global markets as investors digested the impact of this week's U.S. rate hike.
The stock market, which has the second-biggest weighting after Kuwait on the MSCI frontier market index, shed 1.54 percent at the close, dropping to levels last reached in December 2012. The index fell to 26,537 points.

Dada, Anchoria Investment boss

Investors turned cautious on Friday about what a stronger dollar and weak commodity prices could mean for the world economy following Wednesday's 0.25 percent rate hike, the first by the U.S. Federal Reserve since 2006.
Analysts said the current bearish run in Nigerian equities will perhaps be sustained for a while in response to the improving pull of U.S. investments.
"The Fed’s decision to hike rate will indeed impact on asset prices across emerging and frontier markets," said Robert Omotunde an analyst with Lagos-based Afrinvest Securities.
He noted that "the exit of most foreign investors in the Nigerian market appears to have been appropriately priced into stock prices, the weakening domestic currency moderating interest rate, poor corporate earnings, shaky monetary and fiscal policy responses are still likely impacting Buy-sentiment of most investors, Omotunde said.
Top decliners include Dangote Cement, which accounts for a third of total market capitalisation, shed 3.25 percent, Cadbury dropped 5 percent, Flour Mills of Nigeria down 4.63 percent, while Guaranty Trust Bank fell 3.59 percent.

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In spite deep liquidity, Nigerian interbank rate stays flat

Nigeria's overnight lending rate held steady at 1 percent for the fifth consecutive week on Friday, despite lower money market liquidity as the central bank mopped up excess cash from the banking system, traders said.
One dealer said the central bank had sold about 230 billion naira of Treasury bills in open market operations (OMO) in an apparent move to reduce liquidity in the system. That "prompted initial spike in the (overnight) rate, but it later stabilised at the 1 percent level", he added.
Traders said market liquidity dropped to around 400 billion naira on Friday, from 709 billion naira a week earlier, after the OMO sales and payment for Treasury bills bought at an auction on Wednesday.
Nigeria sold 155 billion naira ($779 million) of bills with maturities from three months to one year, at lower yields compared with the previous auction.
The overnight lending rate jumped to around 1.5 percent in early trade as some commercial lenders scrambled for cash to settle their T-bill purchases, but it fell back to 1 percent as the close of trading neared.
Nigeria's central bank last month slashed its benchmark interest rate to 11 percent from 13 percent to stimulate growth, but many banks are not lending to companies and households due to an increased risk of default by borrowers.
Dealers said the cost of borrowing is expected to stay at the prevailing level for the rest of 2015 unless the central bank increases its intervention in the market and mops-up more excess cash from the banking system to rein in inflation.
The secured open buy-back (OBB) -- the rate at which lenders can borrow from the interbank market using treasury bills as collateral -- remained flat at 0.5 percent, far below the central bank's benchmark rate.
The overnight placement rate also closed flat at 1 percent on Friday.

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Dutch ruling on Nigeria could prompt more environmental cases

Shell ordered to provide documents on cause of spills
Shell disappointed court assumes international jurisdiction
Netherlands may be used for cases against Dutch companies abroad
Court has not yet ruled on Shell parent company liability

A Dutch appeals court ruled on Friday that Royal Dutch Shell may be held liable for oil spills at its subsidiary in Nigeria, potentially opening the way for other compensation claims against multinationals in the Niger Delta and elsewhere.
The ruling was hailed by rights groups as a victory for victims of environmental pollution worldwide, while Shell said it was disappointed.
Judges in The Hague ordered Shell to make available to the court documents that might cast light on the cause of the spills and whether leading managers were aware of them.
A lower Dutch court in 2013 had found that Shell's Dutch-based parent company could not be held liable for leakages of oil at its Nigerian subsidiary.
The legal dispute dates back to 2008 when four Nigerian farmers and campaign group Friends of the Earth filed suit against the oil company in the Netherlands, where its global headquarters is based.
"Shell can be taken to court in the Netherlands for the effects of the oil spills," the court stated on Friday. "Shell is also ordered to provide access to documents that could shed more light on the cause of the leaks."
The court still has to decide if Royal Dutch Shell is in fact resposible for the Nigerian spills. The court will continue to hear the case in March 2016.
Judge Hans van der Klooster said the court had also found that it "has jurisdiction in the case against Shell and its subsidiary in Nigeria".
Shell's Nigerian subsidiary, Shell Petroleum Development Company of Nigeria Ltd (SPDC), said in a statement: "We are disappointed the Dutch court has determined it should assume international jurisdiction over SPDC."
"We believe allegations concerning Nigerian plaintiffs in dispute with a Nigerian company, over issues which took place within Nigeria, should be heard in Nigeria," it said.
UNIQUE RULING
Shell has always blamed the leakages on sabotage which under Nigerian law would mean it is not liable to pay compensation. But the Dutch court said on Friday: "It is too early to assume that the leaks were caused by sabotage."
"The ruling is unique and can pave the way for victims of environmental pollution and human rights abuses worldwide to turn to the Netherlands for legal redress when a Dutch company is involved," Friends of the Earth Netherlands said in a statement.
In January 2013, the district court in The Hague ruled that one of the farmers in the original suit was eligible for compensation from Shell's Nigerian division for spills on his land in the Niger Delta, the heart of Nigeria's oil industry.
The farmer appealed over whether the parent company should also be liable.
In a separate case, Shell agreed in January to pay out 55 million pounds ($82 million) in out-of-court compensation for two oil spills in Nigeria in 2008 after agreeing a settlement with the affected community in the Delta.

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Nigeria's NNPC awards new crude for product swap deals to four refiners

> New swaps will begin in February
> NNPC to create new framework for product imports
> Says no need to budget money for fuel subsidies in 2016
Nigerian state oil firm NNPC will award new crude for product swap agreements to Total, Varo Energy, Cepsa and ENI, the head of its crude marketing unit said on Friday.
The deals, which are expected to begin in February, differ from the former "offshore processing" agreements as they are directly with refineries who can use the crude oil to produce the oil products the country needs, NNPC's Mele Kyari told reporters.

NNPC said there was no need to budget money for fuel subsidies in 2016, as the country can reduce the cost of imported fuel below the current retail price.
NNPC cancelled the initial bidding process for crude swap agreements in November, choosing to go directly to refineries that could process the oil themselves in order to eliminate middlemen.
Varo Energy is a joint venture refining company between global oil trader Vitol and private equity firm Carlyle Group Cepsa, ENI and Total are all integrated oil companies with refineries in Europe.
NNPC reached interim swap agreements in September with its trading subsidiary Duke Oil and NNPC joint-venture companies Calson, which is with Vitol, and Napoil, which is with commodities trader Trafigura.
These could be extended as NNPC works to finalise the details of the new swaps.
Despite exporting some 2 million barrels per day (bpd) of crude oil, Nigeria is almost wholly reliant on imported gasoline, kerosene and other petroleum products.
Its four ageing oil refineries produced nothing in October, despite a goal from the company to produce 30 percent of its own gasoline in 2016.
In addition to the swap arrangement, it also relies on an import subsidy scheme that is itself expensive.
But Nigeria has struggled to make timely subsidy payments to traders due to the sharp drop in crude oil prices that have hammered the country's revenue. There were as a result periodic fuel shortages across the country.
Bello Rabiu, NNPC's head of corporate planning, said the company would create a new framework for fuel imports that could reduce the cost of delivering gasoline to stations by 10-15 naira per litre, which would bring gasoline below the price cap of 87 naira per litre and eliminate the need to pay subsidies.

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Nigeria Sterling Bank says open to merger to build scale

Nigeria's Sterling Bank is open to merger or acquisition talks to build scale to counter weak market conditions caused by slow economic growth this year which could continue into 2016, its chief executive said.

Yemi Adeola

Africa's biggest economy relies on oil exports for about 58 percent of government revenue and faces its worst economic crisis in years because of the fall in crude prices, which tumbled to their lowest in more than six years last week.
CEO Yemi Adeola said late on Thursday the slowdown in the economy couple with currency weakness provided opportunities for a market consolidation to build scale and cut costs, adding that one or two foreign banks were having discussions about possible acquisitions in Nigeria.
"You could see ... one or two international banks taking over one or two Nigerian banks ... in 2016 from the look of things," he said, declining to name the lenders.
"As for us at Sterling, we are always open, anything that will give us scale, we will pursue."
Sterling Bank, which itself is the product of a merger of six local banks, was the target of a takeover in 2011 by South Africa's No.2 banking group FirstRand. Acquisition talks collapsed after the two sides failed to agree on terms.
Shares in the bank, which have fallen 25.9 percent this year, are trading at less than 1 times its book value, analysts say. The stock shed 4.79 percent on Friday to 1.79 naira, giving it a market value of 51.5 billion naira ($259 million).
Adeola expects investment flows to reverse after the U.S. Federal Reserve raised interest rates this week for the first time in almost a decade, a move that could also hurt borrowers exposed to the dollar.
The naira, which is pegged to the dollar, has been hitting new lows among retail bureaux de change operators since last week with the central bank trying to curb demand to conserve its reserves, hurting commercial banks' trade business.
Sterling Bank said on Thursday it would raise 35 billion naira ($177 million) in Tier II debt early next year to expand its loan book and saw no need to tap equity markets.

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MTN Cameroon launches 4G mobile network in major cities

MTN Cameroon, one of the central African country's main cell phone providers, has announced the launch of a 4G mobile network, which the company said would help boost Cameroon's economy and access to basic services.
MTN Cameroon says it has nearly 10.4 million subscribers out of a population of about 22.8 million.
"The 4G of MTN Cameroon is an evolution," Linda Kouam, MTN's chief marketing officer, told journalists on Thursday.
"Cameroon's economic growth will change. It's access to education for millions of young people; it's access to healthcare, to sanitation programmes in the whole world."
The network will be rolled out in Yaounde, the capital, and to regional hubs Douala, Bamenda and Buea.
Valentin Simeon Zinga, a spokesman for Orange Cameroon, MTN's chief competitor, said it had the technical and technological capacity to roll out its own 4G network but was waiting on government regulation.
Cameroon's Telecommunications Regulation Agency was unable to comment immediately. Gabon's Airtel launched a 4G network last month.

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Nigeria's Sterling Bank plans $177 mln capital boost to increase lending

Nigeria's Sterling Bank plans to raise 35 billion naira ($177 million) in so-called Tier II capital between January and February to expand its loan book next year but sees no need to tap equity markets, it said on Thursday.
"We are pursuing Tier II capital, we are at the end of it and hopefully between January to February we would have additional debt capital," the mid-tier lender's chief executive, Yemi Adeola, told reporters in Lagos.
Adeola said he saw no need to raise fresh equity capital, adding that the commercial lender had 90 billion naira in shareholders' fund with a capital adequacy ratio of 19 percent, above the 10 percent regulatory requirement.
Shares in the bank, which have fallen 25 percent this year, shed 1.1 percent on Thursday to 1.88 naira.
Sterling intends to expand its loan book by 20-25 percent next year as the Nigerian government looks to reinvigorate the economy after the plunge in oil prices more than halved growth this year and battered public finances.
Loan growth in the first half of this year was 3.2 percent.
Rival lenders including United Bank for Africa (UBA) , Diamond Bank and Stanbic IBTC Bank have reduced lending this year, citing regulatory uncertainty and weak economic growth.

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Nigeria raises 155 bln naira in bill sale at lower yields

Nigeria sold 155 billion naira  in Treasury bills with maturities from three months to one year at an auction on Wednesday, at lower yields than at previous auctions, the central bank said on Friday.
The result of the auction showed that the bank sold 60 billion naira worth of three-month paper at 4 percent, down from 5.61 percent at a sale on Dec. 2.
It also sold 25 billion naira worth of six-month debt at 6.17 percent against 7 percent previously, and 70 billion naira of one-year paper sold at 7.45 percent compared with 8 percent.
Total demand for the paper rose to 554.55 billion naira compared with 407.53 billion naira demanded by investors at the last auction.

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Naira at new lows on unofficial market as banks cut dollar limit

Nigeria's naira fell to a new range of between 274 to 280 in volatile dollar trades on the unofficial market on Thursday, after local lenders cut the amount individuals traveling abroad can spend on their bank cards, traders said.
The naira has been hitting new lows among retail bureaux de change operators on renewed drop in oil prices and central bank's efforts to curb demand to conserve its dwindling foreign reserves. The currency closed at a low of 270 naira on Wednesday.
Commercial banks in Africa's biggest economy this week cut the amount individuals can spend abroad to between $100 to $150 per day or $12,000 annually, down from $50,000 set by the central bank in April.

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Naira at new low on unofficial market, cenbank rations dollars

Nigeria's naira fell 1.5 percent to a new low of 265 to the dollar on the unofficial market on Wednesday after the central bank rationed dollar supplies this week, traders said.
The bank cut the amount it sold to each of the 2,270 retail money exchange brokers that participated in Wednesday's weekly sale to $10,000, down from the $30,000 each it sold last week, Aminu Gwadabe, the head of Nigeria's bureaux de change association told Reuters.

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Nigeria's Egbin Power plans to double generating capacity - CEO

Egbin to spend $1.8 bln to double capacity
Gas, transmission network major drawbacks
Power cuts to remain as new projects spur demand

Nigeria's biggest power company Egbin Power Plc plans to double its generation capacity to 2,640 megawatts (MW) over the next three to four years at a cost of $1.8 billion to tap growing demand, its chief executive said.
CEO Dallas Peavey said the utility company, operated by state-run Korea Electric Power Corp (Kepco), was also looking at investments in solar energy and transmission lines to help address gaps that have held back the sector.

Power Base

Power shortages are a major brake on growth in Nigeria, pushing up manufacturing costs and making it uncompetitive as an investment destination, despite a population of 170 million that makes it one of the world's largest frontier markets.
Egbin Power won its thermal plants with a total capacity of 1,320 MW two years ago under a government-led privatisation scheme which was meant to end decades of blackouts which have blighted Africa's most populous nation and biggest economy.
The company is 70 percent owned by a joint venture between Kepco and Nigerian conglomerate Sahara Group, which also has interests in power distribution, with the other 30 percent held by the government.
Egbin, which has six 220 MW gas-fired power plants, was producing just 440 megawatts of electricity after it was privatised, Peavey told Reuters in an interview in Lagos.
"We are going through and into the process of developing phase II, to double the capacity of Egbin. In three to four years it would be completed," Peavey said in his office, overlooking the 30-year-old plant.
He said the company had not turned a profit since Egbin took over, partly due an unpaid government debt of 44 billion naira ($221 mln) for electricity bills. Peavey said he expected Egbin to take up to three years to get into the black.
Egbin provides a third of Nigeria's electricity, Peavey said, adding that the company was also targeting an increase in renewable energy supplies to the grid over the next 18 months.
He said talks with U.S. Exim Bank, the World Bank and African Development Bank were ongoing to fund the phase II expansion plan and that it has spent $250 million to commission engineering analysis and evacuation studies for transmission.
Nigeria needs 7,000 to 10,000 megawatts of electricity to keep the lights on, and another 3,000 megawatts over the next three to six months as new infrastructure projects come online, but it produces less than 4,000 megawatts, Peavey said.
Nigeria broke up its monopoly on power generation and distribution by privatising the sector in 2013, hoping to attract foreign investors.
But a lack of investment in gas pipelines and transmission lines still owned by government means the amount of power produced has stagnated at about half total capacity.
"The power that we give to the grid is not getting to the (distribution companies). The biggest issue is the transmission constraints ... and the gas, and the government is going to have to lead us out of it."
*First published by Reuters

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Etisalat Benin unit ordered to pay $451 mln in damages

An African subsidiary of Etisalat has been ordered to pay 413 million euros ($450.9 million) in damages to a minority shareholder in Telecel Benin, the Abu Dhabi-listed telecom operator said on Wednesday.
Atlantique Telecom, which is also a shareholder in Telecel Benin, must pay the amount to SARCI, a statement to Abu Dhabi's bourse said, adding Atlantique would seek to have the award cancelled.
SARCI has sought damages relating to the period 2002-2007, taking its claim to arbitration, the statement said without elaborating.
A decision is pending to make the award enforceable, Etisalat said, adding two earlier arbitration proceedings on the same issue were cancelled at Atlantique's request in 2008 and2013.
In January, Etisalat sold its operations in several African countries including Benin and which were mostly held via wholly-owned subsidiary Atlantique Telecom to another subsidiary Maroc Telecom.

* First published by Reuters

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Nigeria interbank rate stays flat on ample liquidity

Nigeria's overnight lending rate held steady at 1 percent for the fourth consecutive week on Friday, as the money market remained sufficiently liquid, traders said.
"The market has been trading flat because of huge liquidity in the banking system without any major cash outflow from the market," one dealer said.
Nigeria's central bank last month slashed its benchmark interest rate to 11 percent from 13 percent to stimulate growth through lending to producers, but many banks are not lending due to an increased risk of default by borrowers.
Dealers said that although about 50 billion naira ($253 million) was debited from commercial lenders' accounts by the central bank on Friday for bond purchases, the market opened at about 708 billion naira, leaving plenty of liquidity.
The secured open buy-back (OBB) - the rate at which lenders can borrow from the interbank market using treasury bills as collateral - remained flat at 0.5 percent, far below the central bank's benchmark rate.
The overnight placement rate also closed flat at 1 percent on Friday.
"We expect the system to remain liquid next week and interbank rate trading at the prevailing level because of possible refund of an unspecified amount from cash banks had deposited with the central bank for forex purchases," another trader said.

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Nigeria to raise 1.2 trl naira T-bills in Q1 2016

Nigeria's plans to raise 1.22 trillion naira ($6.13 billion) from treasury bills in the first quarter of 2016, the central bank said on Friday.
The bank said it would auction 245.77 billion naira worth of 91-day bills and 238.51 billion naira worth of 182-day paper between Dec. 17 this year and March 3, 2016.
It will raise 735.54 billion naira worth of 364-day treasury bills in the same first quarter of next year.
Nigeria, Africa's biggest economy, issues treasury bills regularly as part of monetary control measures to help lenders manage their liquidity and fund government revenue shortfalls.
Yields on local denominated debt have plummeted since the central bank slashed its benchmark interest rate to 11 percent from 13 percent last month.

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Nigeria tightens rules for retail bureaux de change, naira falls

Nigeria's central bank on Friday revised the rules for operating retail bureaux de change in a bid to tighten regulation to curb speculation the long slide in oil prices hits its dollar reserves and currency.
The circular, which will come into effect in January in Africa's biggest economy, orders retail money exchanges to deposit a mandatory cautionary deposit of 35 million naira in an account with the central bank, in addition to a minimum capital requirement of 35 million naira.
The naira was trading at a new low of 260 to the dollar among most bureaux de change agents on Friday as against 255 on Thursday

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Nigerian naira weakens 0.59 pct on dollar shortage

Nigeria's naira weakened further in the parallel market on Thursday, down 0.59 percent after the central bank's exclusion of some bureaux de change operators from its dollar sale on Wednesday created a shortage of dollars.
The local currency was quoted at an unofficial 253 to the dollar, down from 251.5 at the previous day's close.
The local currency was trading at 198.97 to the dollar on the official interbank market at 1117 GMT, close to a rate at which it has been pegged since February.
The central bank had sold $30.5 million to 1,017 bureaux de change agents on Wednesday but excluded around 1,801 others from its weekly sale. That led to a shortage of dollars on the unofficial market and pushed the naira lower, said Aminu Gwadabe, president of Nigeria's bureau de change association.
"We are in contact with the central bank to resolve issues around the exclusion of some of our members from the forex sales and we are expecting positive response," Gwadabe said.

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OPEC says cheap oil to hit rival supply harder in 2016

OPEC forecast on Thursday that oil supply from non-member countries will fall more sharply next year, a development that would suggest its strategy reaffirmed last week of defending market share not prices is working.
The Organization of the Petroleum Exporting Countries said in a report that supply outside OPEC would decline by 380,000 barrels per day (bpd) in 2016, as output falls in regions such as the United States and former Soviet Union.

Last month, OPEC predicted a drop of 130,000 bpd.
OPEC's report follows its acrimonious meeting on Dec. 4, where it rolled over a policy of pumping crude without restraint. A year ago, Saudi Arabia pushed though an OPEC decision to defend market share instead of cutting output, hoping to slow growth in rival supplies.
The report also said OPEC members pumped more oil in November, adding to a supply glut, and forecast global oil demand growth would slow next year.
OPEC production, which has surged since the policy shift of November 2014 led by record Saudi Arabian and Iraqi output, rose by 230,000 bpd in November to 31.70 million bpd, the report said, citing secondary sources.

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Fitch expects Nigerian naira devaluation, warns on budget

Ratings agency Fitch expects a devaluation of Nigeria's naira currency in the first half of 2016, and warned that the country's expansionary budget was potentially negative for its credit rating.
"We see the central bank trying to do three things at once – (have an) active interest rate policy, trying to stop the flow of hard currency (out of the country) and defend the naira,” said Jermaine Leonard, a sovereign analyst at Fitch.
"The most likely place to let give is probably the currency," he said, adding he expected to see this happen in the first half of 2016.
In September, Fitch kept Nigeria at 'BB-' with a negative outlook. Earlier this week it warned that low oil prices would continue to weigh on the sovereign credit profiles of major exporters in 2016.
The administration of President Muhammadu Buhari said on Monday it had decided on a 6 trillion naira ($30.3 billion) budget for 2016, a 1.5 trillion naira rise on last year despite low oil prices that have hit Africa's biggest economy hard.

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South African markets slide after Zuma sacks finance minister

South Africa's rand edged towards a record low and stocks opened weaker on Thursday, a day after President Jacob Zuma removed Finance Minister Nhlanhla Nene and replaced him with a relatively unknown member of parliament.
Stocks opened 0.35 percent lower at 44,669 points on South Africa's blue-chip Top-40 index
By 0714 GMT the rand had weakened 0.37 percent to 15.03 per dollar compared to its close of 14.9750 in New York.
Nene's dismissal sent the rand to a record low of 15.30 on Wednesday as sentiment soured in an economy that is barely growing, squeezed by low commodity prices and the near certainty of an interest rate rise in the U.S. next week.
"The timing of this decision and what it entails is very negative for the rand and credibility of the finance ministry and sound financial institution framework," said Standard Bank trader Oliver Alwar.
"Investor sentiment will struggle given its timing so soon after ratings agencies met last Friday."
Fitch downgraded Africa's most advanced economy to just one notch above sub-investment grade last Friday, citing the slowing economy and rising debt.
South Africa could struggle to fund crucial infrastructure projects and help put the economy on a more robust growth path as its investment grade credit rating is under serious threat.
The rand also touched record lows against the pound and euro, reaching 23.1900 and 16.8104 respectively.
Government bonds, however, held on to their gains, with the yield on the benchmark paper due in 2026 shedding 0.05 basis points to 8.830 percent. a level last seen in February 2014.

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Nigeria raises 50 bln naira 2020, 2024 bond at higher yields

Nigeria sold 50 billion naira ($251.93 million) worth of naira-denominated bonds maturing in 2020 and 2024 at an auction on Wednesday, at higher yields thanks its previous auction, the Debt Management Office said on Thursday.
The debt office issued 30 billion naira in the 2020 debt at 10.95 percent, up from 10.24 percent at the previous auction in November. The same tenor bond closed at 10.80 percent at the secondary market on Wednesday.
A total of 20 billion of the benchmark bond maturing in 2024 was issued at 11 percent compared with 10.01 percent same tenor debt attracted at the November auction. The 2024 paper closed at 10.99 percent at the secondary market on Wednesday.

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IFC, Alten boost renewable energy supply in Nigeria

The International Finance Corporation (IFC), a member of the World Bank Group, has signed a Joint Development Agreement with Alten’s Middle Band Solar One Limited, a Nigerian solar power project company, to co-develop a 120 Mega Watt peak photovoltaic solar power project with a consortium of developers. 

The project is expected to provide renewable energy supply to about 175,000 people and nearby industrial clusters, support job creation, and boost economic growth in the country. The project is based in Lokoja, Kogi State and benefits from the support of the host state government.
Under the agreement IFC InfraVentures, IFC’s Global Infrastructure Project Development Fund, will provide development funding and commercial and technical support to a developer consortium to co-develop the solar power project via the Middle Band Solar One project company. 

The consortium consists of Alten Renewable Energy Developments Africa, B.V., Green
Continent Partners Holding B.V. and Nemoante Ltd, The project is expected to reach financial close by the fourth quarter of 2016.
Arjen Pen, Founding Partner of Green Continent, said, “The key strategy of Middle Band Solar One is to harness the abundant all-year-round supply of sunlight and become one of Nigeria’s leading providers of renewable energy".

 Erabor A. Okogun, from Nemoante and Co-Founder/Managing Director of Middle Band Solar One Limited, said, "We will leverage our local knowledge with the long-term experience and technical expertise of Alten and IFC in developing solar power projects globally, to build a world class
solar project that not only increases the country’s energy supply and diversifies its energy mix but also helps mitigate climate change, fundamental for the sustainable development of Nigeria.”
Luis Castellanos, CEO of Alten Africa, said “We are proud to lead one of the biggest solar projects in Africa. From Alten, we'll contribute our vast experience in the design, development, funding, construction and management of utility-scale photovoltaic power plants. Developing this project fits
with our strategy to provide access to power for the millions of people who currently have low or no access to electricity, especially in developing economies.”
“The World Bank Group’s core focus is to support the development of infrastructure in the country”, said Eme Essien Lore, IFC Country Manager for Nigeria. “This project supports our commitment to the Federal Government of Nigeria under our Energy Business Plan, a comprehensive World
Bank Group approach to support each segment of the energy value chain in the country. IFC InfraVentures allows us to get involved in the project at a relatively early stage and collaborate with our partners to ensure that the project meets the highest technical and environmental standards.
Through this project, IFC is also supporting the Federal Government’s strategy to add more renewable energy generation, especially solar, to the energy mix in Nigeria.” she added.
This project would be IFC’s first solar project in Nigeria and is expected to have a considerable demonstration effect in the region, support the growth of renewable energy, increase private sector participation and ease the high dependence on gas-fired power generation.

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Nigeria stocks hit 3-year low as oil prices tumble, naira, fx reserves fall

Nigerian stocks shed 2.4 percent to hit a new three-year low on Wednesday after global oil prices tumbled to their lowest in more than six years.
The stock market , which has the second-biggest weighting after Kuwait on the MSCI frontier market index, fell for the second day on thin volumes to levels not seen since December 2012.
The bourse, which is down 20.6 percent year-to-date, broke below the psychologically key 27,000 point line on Wednesday. Banking shares fell the most, down 3.1 percent as investors sold off relatively liquid financial stocks.
On Tuesday, Brent crude touched its lowest levels since February 2009. Oil plunged after OPEC last week failed to agree a cut in production quotas in the face of slumping prices and a mounting global supply glut. Brent traded at $40.68 on Wednesday.
Nigeria, which relies on oil exports for 70 percent of government revenue, faces its worst economic crisis in years brought on by the sharp fall in crude prices.
Nigeria's cabinet on Monday agreed a 6 trillion naira budget proposal for 2016, up by 1.5 trillion naira on last year despite low oil prices that have hammered Africa's biggest economy.
Budget and Planning Minister Udoma Udo Udoma said the cabinet was assuming a conservative oil price of $38 a barrel and oil production at 2.2 million barrels per day. Lawmakers passed the 2015 budget at $53 a barrel in April.
Top decliners include Transcorp, down 8.55 percent, Zenith Bank 7.53 percent and Dangote Cement which accounts for a third of total market capitalisation, shed 5.0 percent.
Meanwhile, Nigeria's naira fell 2 percent to a low of 251 to the dollar on the unofficial market on Wednesday as the central bank reduced dollar supplies to bureaux de change operators due to incomplete documentation, traders said.
The bank sold $30.5 million to 1,017 bureaux de change agents, excluding around 1,801 others from its weekly sale. Wednesday's sale was lower from the $84.5 million it offered two weeks ago.
On the official interbank market, the naira traded at 199.47 at 1139 GMT, close to a rate at which it has been pegged since February. Nigeria's dollar reserves shed 1.1 percent in a week to $29.59 billion as of Dec. 7, central bank data showed on Wednesday.

*First published by Reuters

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Ghana Nov consumer inflation rose to 17.6 pct yr/yr -stats office

Ghana's annual consumer price inflation rose to 17.6 percent in November from 17.4 percent the month before, the statistics office said on Wednesday.
The figure is an indication of the economic problems faced by the West African nation, which is following a three-year aid programme with the International Monetary Fund in an attempt to restore fiscal balance.
Food inflation inched up to 7.9 pct from 7.8 in October while non-food inflation was 23.2 percent compared to 23.0 percent the previous month, said deputy government statistician Baah Wadieh.
"Non-food commodities, mainly education and recreation, were the key price drivers," Wadieh told a news conference.
Inflation will fall slightly to 10.1 percent next year from an initial forecast of 11.5 percent in 2015, according to November's budget. It will likely rise in December, however, after a sharp rise in utility prices this week.
The central bank projected it will top 17 percent this year.
Once among Africa's fastest growing economies, the gold, cocoa and oil exporter has seen growth slow due to lower global commodity prices and a fiscal crisis in which its debt-to-GDP ratio has risen to around 70 percent.
*First published by Reuters

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Nigeria says China is strategic partner in changing content of governance

Nigerian President Muhammadu Buhari has said that China remains a strategic and dependable partner in his administration's determination to change the direction and content of governance.
Buhari in a statement by presidential spokesman Femi Adesina said the partnership includes the management of Nigeria's resources with priority on accountability, transparency and result-orientation in governance.
Adesina quoted Buhari as saying this yesterday in South Africa in his address at the round-table of Chinese and African leaders at the conclusion of the Johannesburg Summit of the Forum on China-Africa Cooperation (FOCAC).
President Buhari said he was confident that China would always stand shoulder to shoulder with his administration in its quest to fulfil the aspirations of Nigerians to propel them to prosperity.
He commended the theme of the Second Summit, "China-Africa Progressing Together: Win-Win Cooperation for Common Development" and expressed optimism that it would engender the right platform to engage Africa in such fields of human endeavours as provision of essential infrastructure, skills development and capacity building, diversification of economies and beneficiation of resources.
He specifically lauded China for the vision behind the establishment of FOCAC as a platform for higher level Africa-China relationship.
According to him, "Africa expects Chinese investment flows to the real sector of our economies to promote African enterprises. Our over-riding objectives are to tackle the challenge of unemployment, wealth creation, food security and industrialization."
He drew the attention of the summit to the threat posed by global challenges such as fresh political conflicts, terrorism and other forms of extremism; trans-border crimes; illegal arms trade; irregular migration and cybercrimes.
*Source: Daily Trust website

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Nigerian interbank rate flat as mkt liquidity rises

Nigeria's overnight lending rate remained flat at 1 percent for a third consecutive week on Friday, as money market liquidity rose to over one trillion naira ($5.05 billion) after budgetary disbursal to government agencies, traders said.
Nigeria, Africa's biggest economy, disburses revenue from crude exports among its three tiers of government - federal, states and local - on a monthly basis and a portion of state and local government funds passes through the banking system.
Dealers said over 221 billion naira belonging to state and local governments hit the banking system this week. Market liquidity was also boosted by central bank refunds on Friday of about 400 billion naira cash set aside by banks to buy dollars.
Traders said the central bank for the first time in three month sold about 47 billion naira this week in Open Market Operation (OMO) bills, but the impact on market liquidity was minimal due to further cash inflows from other sources.
"Since the central bank has shown willingness to resume issuance of OMO bills, we expect an aggressive mopping up of liquidity next week to further reduce excess cash in the system," one trader said.
The secured open buy-back (OBB) - the rate at which lenders can borrow from the interbank market using treasury bills as collateral - closed at 0.5 percent, far below the central bank's benchmark rate.
Overnight placement closed flat at 1 percent on Friday.
Banking system credit stood at about than 1.2 trillion naira on Friday, up from 571 billion naira last week.
The central bank had last week lowered the cash reserve ratio for commercial banks to 20 percent from 25 percent, in a move to encourage banks to lend money to the productive sector and stimulate growth.

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China to support African development with $60 bln

China's President Xi Jinping told African presidents on Friday at a summit that his country would provide $60 billion over three years to fund development on the continent.
Xi, who is co-chairing the Forum on China-Africa Cooperation where several African heads of state were attending, outlined a broad ten-point development plan driven by the Asian economic giant, saying he wanted to build a relationship of equals.
"To ensure the successful implementation of these ten cooperation plans, China decides to provide a total of $60 billion of funding support," Xi told the summit.
Despite its own slowing economy, Xi said China would step up investment in factories manufacturing goods for export in Africa, in addition to building roads, ports and railways on a continent long seen as a major commodities source for China.
China would cancel existing debts with zero interest loans for least developed countries that mature by end 2015, he said.
China will strengthen its cooperation with Africa in the fight against violent extremism and would not interfere with the political choices of countries in the continent, Xi said.
"China will implement ten cooperation plans with Africa in the next three years," Xi said. "These plans (are) aimed at addressing three issues holding back Africa's development, namely inadequate infrastructure, lack of professional and skilled personnel and funding shortage."
Africans broadly see China as a healthy counterbalance to Western influence though Western governments charge China of turning a blind eye to conflicts and rights abuses on the continent as they pursue trade and aid policies there.

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Nigeria sells 129 bln naira in Treasury bills, yields mixed

Nigeria raised 129.17 billion naira ($649.10 million) in Treasury bills with maturities from three months to a year at an auction on Wednesday, with mixed yields compared to returns at previous auctions, the central bank said on Friday.
The result of the auction showed that the bank sold 57.85 billion naira worth of three-month paper at 5.61 percent, up from 5.34 percent at the Nov. 18 auction.
It also sold 18 billion naira worth of six-month debt at 7 percent against 7.2 percent previously, and 53.32 billion naira of one-year paper sold at 8 percent compared with 8.5 percent.
Total demand for the paper rose to 407.53 billion naira compared with 301.04 billion naira demanded by investors at the last auction.

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Paris climate deal to start green development charge-UNDP

A United Nations (UN) deal on climate change in Paris should fire the starting gun for a global push on sustainable development in 2016, with no time to lose in shifting to greener, more resilient economies, the head of the U.N. development agency said.
Together with an international accord on reducing disaster risk in March and September's adoption of 17 new global goals, a comprehensive agenda will be in place for tackling global warming and eradicating poverty, said Helen Clark, administrator of the United Nations Development Programme (UNDP).
"This an opportunity not to be missed," she told the Thomson Reuters Foundation in an interview from New York. "The direction is very, very clear."
Building a low-carbon economy that can also withstand climate shocks, such as extreme weather, will be a source of economic growth, creating jobs, exports and innovation, she emphasised.
Money, including large amounts of private-sector funding, will increasingly flow into sustainable infrastructure and utilities, she added.
She urged poorer countries to "be a fast mover" in taking advantage of new technology and funding.
The UNDP has worked with many developing countries to put together their national climate action plans, which 185 governments have now submitted as the building blocks for an agreement in Paris, due to be sealed next week.
Clark said these plans - to be implemented from 2020 - would put countries on a path to clean development, and tied in with their existing strategies.
"Let's all work to get developing countries into the very best position they can to access the financing that's there to do things that are vital for development," she added.
'CLIMATE JUSTICE'
In addition, more government grants - rather than commercial loans - are needed to help the most vulnerable countries overcome the rising risks they face from climate change impacts including intensifying droughts, floods and storms, and rising sea levels, she stressed.
"We do feel that basic climate justice requires support for adaptation for those who have been harmed by events they didn't cause," she said.
Developing countries - which have low historical responsibility for planet-warming carbon pollution - are calling in Paris for more cash from wealthy states to help them live with warming, and curb their emissions as they grow.
"There is a fundamental injustice in countries being set back time and time again, and having to incur greater debts and exposure to financial liability," Clark added.
But she acknowledged that budgets in many industrialised nations were tight, and large humanitarian emergencies like the Syria crisis were soaking up money that could otherwise go to longer-term development.
Clark said it was important that any agreement in Paris should include a review mechanism for emissions reductions pledges to make countries increase them regularly.
Current promises add up to warming that is "nowhere near" keeping within an internationally agreed limit of 2 degrees Celsius, she noted.
"This really can't wait too long," she said. "Paris is vital, but we need to know the next steps will be taken."
*First published by Reuters

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Nigeria naira falls on unofficial market on limited dollar sales

Nigeria's naira fell 1.22 percent against the dollar on the unofficial market on Thursday after nearly half of bureaux de change operators failed to secure dollars at a central bank sale due to incomplete documentation, traders said.
The currency was quoted at 246 against the dollar on the unofficial market, weaker than 243 the previous day. On the official interbank market the naira, which has been pegged against the greenback since February, traded at 198.97 by 1204 GMT.
About 1,599 bureaux de change agents out of 2,818 operators were denied access to the foreign exchange sale on Wednesday, limiting dollar supply, Aminu Gwadabe, president of Nigeria's bureau de change association, told Reuters.
"The bureaux de change operators were denied access to the forex window because of their failure to file documentation backing previous purchases," said Gwadabe.
The central bank last week asked all bureaux de change operators to submit accounts showing their dollar usage at the start of each week before they can access future sales, a move traders say was aimed at curbing speculation.
The unofficial market accounts for less than 5 percent of total dollar trades in Nigeria. The bank sells around $30,000 to each operator every week.

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Nigeria slashes MTN fine by more than a third to $3.4 bln, CEO quits

NCC gives MTN until Dec. 31 to pay
MTN says to talk to NCC before responding
MTN shakes up management structure to boost governance
Nigeria has cut a fine imposed on MTN Group by more than a third to $3.4 billion and given the South African mobile phone operator until the end of the year to pay it, the company said on Thursday.
The Nigerian Communications Commission handed Africa's biggest mobile phone company the penalty in October after MTN failed to cut off users with unregistered SIM cards from its network.

MTN Nigeria

Nigeria, MTN's biggest market, has been pushing telecoms firms to verify the identity of subscribers amid worries unregistered SIM cards were being used for criminal activity in a country facing the insurgency of Islamic militant group Boko Haram.
The fine, originally $5.2 billion, prompted MTN to hold talks with the NCC over the past five weeks seeking a reduction.
"After further engagements with the Nigerian authorities, the NCC has reduced the imposed fine," MTN said in statement.
The company, which makes about 37 percent of its sales from Nigeria, said it was considering the NCC's decision.
"Executive Chairman Phuthuma Nhleko will immediately and urgently re-engage with the Nigerian authorities before responding formally," it said.
Nhleko, who took charge for up to six months after the abrupt resignation last month of Sifiso Dabengwa, led the company for nine years before stepping down in 2011.
The fine came months after Muhammadu Buhari swept to power in Africa's biggest oil producer, after a campaign in which he promised tougher regulation and a fight against corruption.
It also came after the kidnapping on Sept. 21 of Olu Falae, former Nigerian finance minister, by people whom the regulator said had used MTN phone lines to negotiate a ransom.
Some analysts have said the size of the fine risked damaging Nigeria's efforts to shake off its image as a risky frontier market for international investors. Others said the fine showed Africa's biggest economy was keen to enforce the law.
Separately, MTN announced a shake-up of its senior management structure in an effort to strengthen oversight, governance and regulatory compliance across its operations in 22 countries in Africa and the Middle East.
MTN's Nigeria head Michael Ikpoki and the head of regulatory and corporate affairs Akinwale Goodluck have resigned with immediate effect, MTN said.
The company named Jyoti Desai, a 14-year veteran of the Johannesburg-based firm, as chief operating officer with effect from Dec. 1. Desai's replacement as Group Chief Technology and Information Officer will be announced soon, MTN said.

* First published by Reuters

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Oil falls on U.S. stockpiles, expected unchanged OPEC stance

Oil fell below $44 a barrel on Wednesday as a rise in U.S. inventories added to the global glut and investors discounted the possibility of OPEC cutting output at this week's meeting.
Brent crude was down 53 cents at $43.91 a barrel by 1122 GMT, falling for a fifth consecutive session. It dropped as low as $43.75, its weakest level since Nov. 23, and was on track for its lowest close in two weeks.

U.S. crude traded 50 cents down at $41.35 a barrel.
Current oil production is substantially outpacing demand and the growing global surplus has sent prices tumbling by more than 60 percent since June 2014.
The Organization of the Petroleum Exporting Countries (OPEC), however, is not expected to budge from its stance of keeping output high to defend market share against producers such as Russia and North America.
"The market ascribes an extremely low probability to a change in OPEC policy," said Bjarne Schieldrop, chief commodity analyst at SEB in Oslo.
"If investors thought there was even the slightest risk, we would have seen prices rise in the run up to the meeting."
Beyond OPEC's meeting, oil traders remained focused on growing stockpiles and high production.
Russia continued extracting oil at a post-Soviet record of 10.78 million barrels a day (bpd) in November despite low oil prices, Energy Ministry data showed on Wednesday.
Data from the American Petroleum Institute (API) showed a 1.6 million-barrel rise in U.S. crude inventories last week to 489.9 million barrels.
The U.S. government's Energy Information Administration's inventory report will be published at 1530 GMT.
Low oil prices in combination with high debt levels are putting heavy pressure on corporate energy earnings.
"The global oil and gas sector is heavily indebted, with upstream companies holding about $1.1 trillion in dollar-denominated corporate bonds and loans," BMI Research said.
"While the current debt load does not pose a systemic threat to the industry, a pullback in low-cost financing will be a necessary precursor to the broader rebalancing of the physical oil market."
Many analysts are sceptical of oil prices recovering into 2016.
"We maintain our bearish or sideway move in oil prices in the next 2-3 months as things haven't really changed fundamentally, despite data showing a decline in stocks builds by end of next year," Natixis oil analyst Abhishek Deshpande told the Reuters Global Oil Forum.

* First published by Reuters

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Nigeria to raise 50 bln naira in 2020, 2024 bonds

Nigeria plans to raise 50 billion naira in local currency denominated bonds maturing in February 2020 and March 2024 at its last debt auction of the year on Dec. 9, the Debt Management Office said on Wednesday.
The debt office said it would sell 30 billion naira of the 2020 debt and 20 billion naira of the benchmark 2024 paper.
The bonds are a reopening of previously issued paper. Results of the auction will be published the following day, the debt office said.
The 2020 bonds closed with a yield of 11.73 percent on Wednesday and the 2024 at 11.85 percent, with dealers predicting yields would fall at the auction next week.

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Nigeria to understudy Australian mining sector – Fayemi

Fayemi

Determined to drive the diversification of Nigeria’s economy through the a more structured and focused exploitation of the solid minerals, the Federal Government is understudying the Australian mining sector, which has made significant headway in that area, Kayode Fayemi, Minister of Solid Minerals Development has said.
Fayemi says government will also be learning how the Australian government has been able to achieve synergy between communities, states and the government in resolving the recurrent conflicts between communities and miners and settling the royalties due to states.
He further said Nigeria needed to learn how Australia has been able to drive its country’s mining sector, which accounts for 8.5 per cent of the country’s GDP and employs about two per cent of the work force, as the Federal Government is set to improve the nation’s economy through the sector.
Speaking in Abuja during a courtesy visit by the Australian High Commissioner to Nigeria, Jonathan Richardson, to his office on Friday, Fayemi said the increasing interest of the government is geared towards understanding the Australian mining sector and coming up with an approach that will be profitable to Nigeria.
He said: “We need to learn how you have been able to particularly drive the Australian mining industry. The president is really very focused in this sector; not that we have choices anyway, with the prices for petrol dollar dwindling, so we have to look at alternatives for raising revenue for the country and clearly for the president, agriculture and solid minerals appear to be the most realistic or fastest way to begin to raise additional revenue for the economy.
“The increasing interest of our government has made me get in touch and connect with what you are doing in your mining sector. Everything I have heard in the last 10 days of being in this position points in the direction of Australia. Everybody is saying it to me factually, technically, commercially, I keep hearing, you get Australia, you fix the mining sector.
“Another area that we really can learn from Australia is you are a federal entity like us, we do have significant tension between what the constitution says about mineral resources belonging exclusively to the federal authority and the management of land belonging to the state government.
“So, we need to find a sharing formula mechanism, what royalties comes to those who own the land, the community, state government and then the federal in order to achieve synergy and co-operation because increasingly, I am hearing stories of those trying to explore minerals from local communities and facing a number of challenges there. We will be interested to know what Australia has done about it.”
Earlier, the Australian High Commissioner said his country would like to co-operate with Nigeria in the areas of technical training and support, as well as other areas the government might require. He added that over 100 Nigerians had taken advantage of short professional courses in specialised areas in Australia since 2010.
Richardson who stressed that Nigeria is well endowed with mineral resources, stated that security, rule of law, law enforcement, policy consistency as well as cheaper and reliable power supply would play significant roles in building and sustaining investors confidence in the Nigerian mining sector.

*First published in Businessday

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Nigeria's Stanbic IBTC signs first international syndicated loan

Nigeria's unit of South Africa's Standard Bank Group, Stanbic IBTC Bank has secured its debut syndicated term loan facility in an amount of $103 million . The one-year transaction that was solely-led by Mashreqbank, psc as Coordinating Bank and Sole Bookrunner, was oversubscribed, Stanbic IBTC said in a statement.

Nigeria's Cbank gov, Emefiele

 Stanbic IBTC closed the syndication within six weeks of launch at a competitive pricing threshold given the prevailing market conditions.
The 8-bank syndicate comprised of long-standing relationship banks of Standard Bank Group, Stanbic IBTC Holdings' parent company, that included Mashreqbank psc, The Commercial Bank (Q.S.C.) and ING Bank N.V. as Mandated Lead Arrangers & Bookrunners, while Al Ahli Bank of Kuwait K.S.C.P., Al Khaliji France S.A. Commerzbank Aktiengesellschaft, Filiale Luxemburg, SBM Bank (Mauritius) Ltd and Doha Bank Q.S.C. participated in the Facility as Mandated Lead Arrangers. Mashreqbank psc is also acting as the Facility Agent for the transaction.
CEO Standard Bank of South Africa, Rassem Zok stated that, "This transaction has a special significance for us being the debut deal of Stanbic IBTC. We are delighted with the response received on this facility for our Nigerian subsidiary; this is yet another successful transaction this year where our partner banks have again endorsed their trust and confidence in the Standard Bank Group."
In a statement, Chief Executive, Stanbic IBTC Bank, Yinka Sanni stated that "Stanbic IBTC Bank is delighted with the reception of the syndicate banks to its debut deal. We appreciate the confidence that the syndicate has in Stanbic IBTC, as it reinforces our market leadership position in corporate and transactional banking and our commitment to supporting Nigeria's economic growth. It will also help boost our operations in Nigeria in line with our business objective of organically growing our footprint in the retail banking space.
Chiradeep Deb, Managing Director and Head of Corporate Finance at Mashreq, said, "It's been a privilege to lead book run and coordinate the maiden syndicated loan transaction for Stanbic IBTC Bank . To have a fully subscribed deal in such challenging market conditions, against the backdrop of the fall in prices of commodities is a testament to Stanbic IBTC's financial strength and Standard Bank Group's (SBG) strong relationship with its banking partners across the region. Mashreq values its long-standing association with SBG and it is a pleasure to feature in multiple financings for the Group's subsidiaries in Africa."

*First published in Reuters

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Nigerian assembly passes $2.9 bln extra budget, mostly for gasoline

Nigeria's national assembly on Tuesday approved a supplementary budget for 2015 of 574.53 billion naira ($2.89 billion), mainly to cover fuel subsidies and ensure gasoline supplies across the vast country into the new year.

NNPC station

Despite being Africa's biggest oil producer, Nigeria imports almost all its gasoline needs because its refineries have been neglected for years. Fuel queues have been growing over the past weeks as importers found their credit lines shrinking and awaited payment from the government.
The supplementary budget is 108.9 billion naira more than President Muhammadu Buhari requested in November, and lawmakers said it would cover fuel subsidies into next year.
"We decided to approve the additional 108 billion naira in order to have an uninterrupted supply of fuel across the country throughout the Christmas, New Year and beyond," Senator Danjuma Goje said after the vote.
Buhari approved a payment of 413 billion naira ($2.1 billion) in early November for gasoline importers, before sending the request to the Senate on Nov. 18.
Under the administration of his predecessor Goodluck Jonathan, the supplementary budget to cover subsidies was slashed by 90 percent, as government revenues had shrunk dramatically with the slump in world oil prices.
The 2016 budget is expected to be presented before the end of the year and it is unclear whether the expensive subsidies will be kept.
More than 90 percent of the supplementary budget will be spent on the subsidy. Part of the rest will go to fund a military operation to crush militant Islamist group Boko Haram in the northeast of the country.

*First published by Reuters

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Nigeria's Ecobank raise closes $170 mln loan

Nigeria's unit of Ecobank Transnational Incorporation (ETI) has signed a $170 million loan, marking only the second internationally syndicated loan this year for a Nigerian bank, as depressed oil prices bite into the country’s liquidity. 

Standard Chartered acted as sole coordinator and documentation agent on the deal, which raised $20 million more than the borrower's inaugural $150 million October 2014 facility that it refinances.despite the adverse market conditions,

Ecobank also managed to attract four new lenders into the syndicate group, but pricing on the deal was hiked to 525 basis points over Libor, up 100 basis points from the 425 basis points margin paid on last year's loan. The bank had initially hoped to raise $200 million but lowered the target amount to $150 million at launch.

“Ecobank 's goal was $200 million before launch but we felt that $150 million was more reflective of what was available in the Nigerian market. It’s a difficult market,” said Charles Corbett, managing director, loans syndication at Standard Chartered.

Ecobank had also initially hoped to build on last year's success by reducing pricing and extending the tenor on the second loan, said Corbett.“The margin is higher than Ecobank paid on its previous deal, but the bank was very mature when approaching its lenders. It is extremely rare for a Nigerian bank borrower to come to the market this year and Ecobank did not want to push beyond what is acceptable in this market, which is reflected in the success of the deal. They called it correctly,” says Corbett.
Commerzbank, First Gulf Bank, Mashreqbank and Standard Chartered Bank were mandated lead arrangers and bookrunners. African–Export Import Bank was mandated lead arranger, while BMCE Bank International acted as lead arranger. British Arab Commercial Bank, Ghana International Bank and SMBC acted as arrangers, with Banque Libano-Francaise as lead manager. Commercial Bank of Qatar, which contributed US$10m to the 2014 facility, did not participate in the new deal reflecting how the squeeze on Middle Eastern liquidity is having a knock on effect in other regions. However, the slack was taken up by the four new lenders to the group -- Afreximbank, GIB, SMBC and Banque Libano-Francaise.Ecobank Nigeria’s managing director, Mr Jibril Aku said: “The transaction is driven by a need to have longer-term funding available for corporate clients. We appreciate the confidence that the international markets have in Ecobank Nigeria, backed by our strong reputation in the country and across the continent. It proves our strategy works.” 

The only other loan for a Nigerian bank agreed this year was First City Monument Bank's US$77m deal that signed in November.Ecobank, a subsidiary of Togo-based Ecobank Transnational Incorporated has a customer base of over seven million people and is listed on the Lagos, Accra and Abidjan stock exchanges

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Nigeria naira firmer on unofficial market as c.bank tightens forex rules

The Nigerian naira strengthened 2.1 percent to 235 per dollar on the unofficial market on Thursday after the central bank moved to enforce documentation requirements on bureau de change operators prior to dollar sales, traders said.

Dollars

In a circular seen by Reuters on Thursday, the central bank asked all bureau de change (BDCs) operators to submit accounts showing their dollar usage at the start of each week before they can access future sales, a move traders say was aimed at curbing speculation.
The naira had fallen sharply on Wednesday, a day after the central bank unexpectedly cut interest rates to stimulate lending in Africa's biggest economy, traders said.
The currency was quoted at the pegged rate of 197 naira on the official interbank market on Thursday.
"It has been observed that a good number of bureaux de change purchased foreign exchange from the central bank without rendering returns on their utilisation," the bank said
The central bank has introduced currency controls to stop the naira weakening, defying calls to further devalue the currency hard hit by the plunge in global crude prices.
The bank asked BDCs to immediately return all forex bought at its Wednesday auction without documents to show how they used previous purchases. It cut dollar supply to BDCs last week to conserve its dwindling foreign exchange reserves.

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Oil falls as spotlight returns to glut, dollar up

Crude oil futures fell back towards $45 per barrel on Wednesday as the dollar gained and investor focus shifted back to a deep global supply glut.
Brent was down 94 cents at $45.18 a barrel at 1241 GMT, having touched a low of $45.11.
The benchmark hit its highest since Nov. 11 at $46.50 on Tuesday after Turkey shot down a Russian jet. It had risen for five consecutive days, its longest run of positive sessions since April.
U.S. West Texas Intermediate (WTI) futures fell 78 cents to $42.09 a barrel, having gained $1.12 to $42.87 on Tuesday.

An oil rig

Data from industry group the American Petroleum Institute (API) on Tuesday showed that U.S. crude stocks rose by 2.6 million barrels in the week to Nov. 20, more than double analysts' expectations for an increase of 1.2 million barrels.
"Inventories surprised on the upside and it will draw back attention to the supply that hangs over the market," said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam.
A gain in the dollar, which rose to an eight month high against a basket of currencies, also weighed on prices as oil, priced in the U.S. unit, became less affordable to holders of other currencies.
The API data came ahead of figures from the Energy Information Administration, due at 1530 GMT (1030 EST) and expected to show crude oil stocks rose for a ninth consecutive week.
OPEC is determined to keep pumping oil vigorously despite the resulting financial strain -- even on the policy's chief architect, Saudi Arabia -- alarming weaker members who fear that prices may slump further towards $20.
President Tayyip Erdogan said on Wednesday that Turkey did not want any escalation of tension over the downing of the Russian warplane, and that it had acted simply to defend its own security and the "rights of our brothers" in Syria.

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AfDB chief says Africa needs to manage budgets carefully

African countries will have to manage their finances carefully to repay dollar debt raised in recent years as weak currencies push up servicing costs and oil and commodity revenues tumble, the new head of the African Development Bank said.

Adesina

From oil-rich Nigeria and copper producing Zambia to fast-growing Rwanda and Ghana, African nations have taken advantage of historically low yields and strong investor appetite to issue Eurobonds or raise other funds on international markets.
Africa's foreign currency bond issues between 2000 to 2014 totalled $20.5 billion, with $7.4 billion of that raised in 2014 alone, Akinwumi Adesina, who took over as president of the 50-year-old AfDB in September, told Reuters in an interview.
"You are going to be financing high-cost debt using a devalued currency -- it just means it is more difficult for you to finance your debt," he said in Addis Ababa late on Tuesday.
"One does have to make sure that it is within sustainable debt limit. We have to manage our finances well."
An expected interest rate hike by the U.S. Federal Reserve has strengthened the dollar globally and hit emerging market currencies, including in Africa, where many governments are also feeling the squeeze from low commodity and oil revenues.
A development economist with a doctorate from Purdue University in the United States, 55-year-old Adesina was elected in May to head the Ivory Coast-based institution for five years.
In Addis Ababa for talks with African Union Commission head Nkosazana Dlamini-Zuma and Ethiopian Prime Minister Hailemariam Desalegn, he urged African states to manufacture more rather than rely so heavily on volatile raw commodity exports.
"I personally believe that the way to address this is to first and foremost make sure that African countries stop exporting primary commodities. I have not seen any country in the world that has prospered from this," he said.
"African countries need to develop value chains whether it is in oil and gas, minerals or metals, or whether it is agriculture - everything that Africa has," he added.
Adesina said greater trade within Africa, which now stands at 10 percent of total trade on the continent, would help reduce exposure to global fluctuations.

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