Nigerian bonds to take cue from new government

Nigeria's debt market is expected to take cue from policy changes under the new administration of president-elect Muhammadu Buhari, who is due to be inaugurated on Friday.Traders said most offshore investors remain on the sidelines waiting for the new government to state its economic agenda and a possible removal of tight controls on the forex market.Nigerian financial markets will be closed for business on Friday as Buhari takes the oath of office."Investors will be watching out for clues on the policy direction of the incoming government as the...

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Nigeria's FX reserves rise to $29.6 bln by May 27

Nigeria's foreign exchange reserves rose to $29.61 billion by May 27, up by 0.3 percent from a month ago, data from the central bank showed on Thursday. However, reserves of Africa's biggest economy and top crude exporter fell 20.3 percent year-on-year from $37.14 billi...

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Nigerian interbank rates fall on rising liquidity

Nigeria's interbank lending rate eased slightly to an average of 8.25 percent on Thursday from 8.5 percent last week on the back of increased liquidity after the government paid public workers wages and joint venture partners.The state paid out a total of about 105 billion naira ($528 million) in wages and contributions to partners involved in joint oil production ventures with the government, boosting liquidity levels and forcing down lending rates, dealers said.Traders said though the central bank withdrew around 45.7 billion naira to meet the...

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Kenya's anti-graft body says two ministers should be charged

Kenya's anti-corruption watchdog has recommended two government ministers be charged with abuse of office, the chief prosecutor said on Monday, two months after President Uhuru Kenyatta ordered a crackdown on graft.The Ethics and Anti-Corruption Commission (EACC) said transport and infrastructure minister Michael Kamau should be charged in relation to the involvement of ministry staff in the embezzlement of funds through a road construction project, said Keriako Tobiko. It also wanted labour minister Kazungu Kambi to face similar charges for irregular...

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Malawi forests shrink as power deficit fuels charcoal business

Impoverished villagers are hacking down Malawi's forests to make charcoal, undeterred by government efforts to confiscate the dirty fuel as a power deficit stokes demand.Only 9 percent of the southern African country's population have access to electricity, ensuring a good market for the charcoal produced by communities living near forests. The fuel is sold mainly in urban and semi-urban areas where even those who do have a power connection cannot afford electricity for cooking. Alex Thom, standing by his bags of charcoal on the roadside at Bale...

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Nigeria's banks huge exposure to oil sector threatens operations

First Bank of Nigeria's modest head office is stationed at the marina in Lagos. Beyond the mid-morning traffic on the road in front of the building, past the shores of the marina, are two rather imposing oil rigs. When they first turned up, their presence confused locals. Oil rigs are usually stationed in oil producing regions in Nigeria, close to the Niger Delta, so why were they at the marina? Curious onlookers initially assumed that the rigs, which were owned by indigenous oil company SeaWolf Oilfield Services, were undergoing repairs and need...

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Nigerian interbank rates dip as retired T-bills boost liquidity

Nigeria's interbank lending rate fell to an average of 8.5 percent on Friday from 14.25 percent last week as funds from matured Treasury bills offset the impact of the central bank's new Cash Reserves Requirement (CRR).The central bank on Tuesday harmonised the CRR on public and private sector deposits to 31 percent. Previously the CRR on private sector deposits was 20 percent and 75 percent for public sector deposits. The central bank recalled about 140 billion naira ($704 million) in CRR from the banking system on Thursday in line with its new...

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Nigerian bonds to rise

A further sell-off by some investors booking month-end profits and others covering their short positions could push yields on Nigerian bonds higher. Traders said the market experienced a sell-off this week after the central bank harmonised the Cash Reserves Requirement (CRR) on public and private sector deposits to 31 percent at its rate-setting meeting on Tuesday. Previously the CRR on private sector deposits was 20 percent and 75 percent for public sector deposits. "We are anticipating further a sell-off next week by some investors, especially...

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Nigeria raises 111 bln naira in T-bills, yields lower

Nigeria sold 110.99 billion naira ($558 million) in Treasury bills at lower yields across all tenors compared with the previous sale on May 6, the central bank said on Friday. Investors submitted a total of 243.39 billion naira in bids at the auction held on Wednesday, compared with 329.97 billion bids at the previous auction. The yield on the 3-month bill fell to 9.95 percent from 10.09 percent at the previous auction, the central bank said, adding that it sold 32.43 billion naira of the 3-month paper. The bank sold a total of 22.82...

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IFC, SECO launch corporate governance for Nigerian business

The International Finance Corporation ( IFC), a member of the World Bank Group, andthe State Secretariat for Economic Affairs, Switzerland on Wednesday jointlylaunched the Africa Corporate Governance Program for Nigeria, to supporteconomic and business expansion.The program aims to improve the performance of businesses by helping themadopt good corporate governance practices and standards that are adapted toregional priorities. Improved corporate governance helps businesses attractand retain investment, among other benefits.This formal program...

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Nigerian local debt yield up on new cash reserves rule

Yields on Nigeria's local bonds rose slightly on Wednesday after central bank's harmonisation of the Cash Reserves Requirement (CRR) on public and private sector deposits triggered a sell-off by some investors.At it's rate-setting meeting on Tuesday, the (CRR), the amount the central bank requires banks to set aside, was revised to 31 percent for both public and private sector deposits. Previously the CRR on private sector deposits was 20 percent and 75 percent for public sector deposits. Some banks that held more of the private sector deposits...

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INTERVIEW-Martell cognac chief says aims to double sales

Martell, the cognac brand of French drinks group Pernod Ricard is betting on recovering demand in China, and growth in the U.S., travel retail and Africa to double sales within 10 years, its chief executive told Reuters.Martell numbers alongside Ballantine's whisky and Absolut vodka among Pernod Ricard's 14 strategic brands and is the top sales and operating profit contributor at the world's second-largest spirits maker after Diageo "Over 10 years we have doubled our sales volume," Philippe Guettat, CEO of Martell Mumm Perrier-Jouet, said in a...

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2,000 MTN workers on strike

About 2,000 workers at MTN Group went on strike on Wednesday demanding higher pay, union leaders said, threatening a prolonged walkout at South Africa's second-biggest telecoms firm by subscribers.Zodwa Kubeka, spokeswoman for the Communication Workers Union (CWU), said its members at MTN want a 10 percent pay rise and higher allowances for work done over weekends and holidays. "We will remain on strike on until our demands are met," Kubeka said. MTN, Africa's biggest mobile phone network, employs about 6,500 people in its home market, where it...

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Nigeria's foreign exchange reserves rise by 1 pct by May 15

Nigeria's foreign exchange reserves rose marginally by 1.05 percent month-on-month to $29.80 billion by May 15 from $29.49 billion a month earlier, data from the central bank showed on Tuesday.     The forex reserves of Africa's biggest economy and top crude exporter have been on the decline since last year when the central bank used the reserves to support the ailing naira currency, which has depreciated by 7.5 percent so far this year due to falling global oil prices.     The reserves were however down 20.6 percent year-on-year,...

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S.Africa to start 9,600 MW nuclear procurement process this year

South Africa will start the process to procure a nuclear fleet to generate 9,600 megawatts of power this year, the energy minister said on Tuesday, as Africa's most advanced economy battles an energy crunch.To meet its targeted nuclear generation capacity, South Africa plans to build six new nuclear power plants by 2030 at a cost estimated between 400 billion rand and 1 trillion rand ($34-$84 billion)."We expect to present the outcome of this procurement process to cabinet by year-end," Energy Minister Tina Joemat-Pettersson told parliament, adding...

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Nigerian court orders GTB to refund 5.3 bln naira to a customer

A Nigerian Court has ordered Guaranty Trust Bank (GTB) to refund 5.3 billion naira illegally withdrawn from the account of one its customers, Dr. Ted Edwards. In a ruling on the case brought by Edwards against the bank, by Justice Valentine Ashi, directed that the sum to be refunded will also attract 10 per cent interest from a week after the day the judgement was delivered, till the time the money was paid back to the owner. The court also ordered that the money should attract another 21 per cent interest from December 12, 2014 when GTB allowed...

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Fuel truck drivers in Nigeria go on strike

The Petroleum Tanker Drivers arm of the Nigeria Union of Petroleum and Natural Gas Workers, has suspended loading of petroleum products in the entire South West zone, including Ilorin, a situation that has aggravated the scarcity of the product in Lagos and its environs. The action will worsen the petrol supply situation because products for most parts of the country are usually loaded from the zone for delivery to other parts. Sources in Apapa, Lagos said the suspension of product loading by the drivers would be for a long time. “This is,...

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Nigerian interbank rates rise on energy firm's NNPC cash recall

Nigeria's interbank lending rates rose to 14.25 percent on average on Friday from 9.25 percent last week, after state-owned energy company NNPC recalled some of its deposits from banks.NNPC sells dollars to some lenders on a monthly basis and transfers a portion of the naira proceeds to its account with the central bank, leading to a rate spike. Banks had a balance of 214 billion naira at the central bank by Friday compared with 494 billion naira last week. In addition, cash outflows to bonds and Treasury bills purchases totalling 202 billion...

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S.Africa can expect three more years of power outages, against privatisation -minister

South Africa can expect three more years of power cuts, a cabinet minister said on Thursday, as utility Eskom struggles with supply shortages that have hobbled key mining and manufacturing sectors in the worst outages since 2008.South Africa's only nuclear plant is expected to add more than 900 megawatts of power to the national grid by the end of May after undergoing maintenance, Public Enterprises Minister Lynne Brown told reporters.Meanwhile, Brown, who oversees state-owned power utility Eskom, said on Thursday she was not in favour of privatising...

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Nigeria sells 60 bln naira bonds, yields dip across all tenors

Nigeria sold bonds worth a total of 60 billion naira ($302 million) at lower yields on all tenors at an auction on Wednesday, the Debt Management Office said on Thursday.The debt office said in a statement that investors submitted total bids of 183.34 billion naira compared with 184.72 billion naira at the last auction. The lower yields reflected the trend in the secondary market, which remain at below 14 percent following a sharp rise immediately after Nigeria's peaceful elections in March.The 5-year, 10-year and 20-year tenors each received a...

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Ghana's consumer inflation rises to 16.8 pct in April

Ghana's annual consumer price inflation rose to 16.8 percent in April from 16.6 percent in the previous month due in part to a rise in the price of utilities, the statistics office said on Wednesday.The year-on-year non-food inflation rate for April was 23.2 compared with 23.1 percent in March, while the food inflation rate that stood at 7.2 percent, said government statistician Philomena Nyarko.Housing water, electricity, gas and other fuels rose at 25.0 percent, she told a news conference.The West African nation started a three-year aid program...

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Kenya's Equity Bank plans Nigeria, 9-nation Africa expansion

Expansion will be via acquisition or new operations CEO given 10 more years to oversee expansion Equity to formally launch mobile banking service in July  Kenya's Equity Bank plans to expand its operation to 10 more African countries, including Nigeria in the next 10 year, in addition to the five it already serves, by building operations from scratch or acquiring existing lenders, its chief executive said on Wednesday. James Mwangi told Reuters the bank, Kenya's largest by number of customers, had extended his contract by 10 years...

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Nigerian interbank rates rise on Treasury bills sales

Nigeria interbank lending rates rose 3.25 percentage points week-on-week on Friday to 9.25 points on average, driven by large treasury bills sold at both primary and secondary market by the central bank, which soaked up liquidity from the system. The central bank sold about 250 billion naira ($1.26 billion) in the open market operations bills and 150.6 billion naira worth at an auction on Wednesday."The market has been very liquid from the spillover from budget allocations and large matured bonds two weeks ago, but the outflows to fresh treasury...

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Nigerian bond yields seen falling at auction

Nigerian bond yields are likely to fall at auction next week after the debt office slashed the amount of debt it will borrow.Nigeria plans to sell 60 billion naira ($301.51 million) of 5, 10 and 20-year Treasury bonds next week, short of the usual 70 billion naira worth of bonds sold at the previous auction last month."The bond market has been active all week, with yields trending down to 13.60 percent levels as some investors taking position in the market ahead of next week's auction after the debt office slashed amount on offer," one dealer said.Traders...

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Nigerian naira to remain flat on CBN tight control

Nigeria's naira is not seen making any dramatic moves in the near term as the central bank sustains its tight control over the local currency, though there have been some dollar flows from month-end sales by some oil companies.     The local currency has held flat at 197-199 to the dollar since February when the central bank introduced controls to halt rapid depreciation in the wake of a sharp fall in global oil prices.     Traders said each bank now depended on dollar flows from oil companies to augment supply from the central...

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Nigeria raises 150.6 bln naira in Treasury bills

Nigeria raised 150.60 billion naira in Treasury bills, with yields mixed compared with the previous sale last month, the central bank said on Thursday. The yield on the 3-month bill was stable at 10.09 percent, the same as at the April 22, auction. The central bank sold 45.17 billion naira in the 3-month paper. A total of 23.43 billion naira was sold in the six months paper at 12.89 percent, higher than the 12.80 percent yield at the last auction, while 82 billion worth of the one-year paper was sold at 13.39 percent against 12.99 percent last...

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Angola says to end petrol subsidies as oil drop bites

Fuel price rises since Oct saved Angola $1 bln - finmin Lower oil prices hit spending in major crude exporter Angola slashed budget, increased borrowing this year Angola will end petrol subsidies and increase the price of other fuels, the finance ministry said, after last year's plunge in global oil prices hammered the finances of Africa's second largest crude exporter. In February, Angola slashed spending in its 2015 budget, widened its fiscal deficit projections and said it would sharply increase borrowing. Angola imports most of its fuel...

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World food prices fall to near 5-year low in April - UN FAO

Global food prices fell in April to their lowest since June 2010, as dairy led most commodities down, the United Nations food agency said on Thursday.The U.N. Food and Agriculture Organization's (FAO) price index, which measures monthly changes for a basket of cereals, oilseeds, dairy, meat and sugar, averaged 171 points in April, 1.2 percent below its reading in March. High global production, a strong U.S. dollar and cheaper crude oil have helped cap food prices for the past year and the index has been declining since April 2014. There are no...

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Nigeria borrows N473 bln in four months to fund budget -fin minister

Nigeria has borrowed 473 billion naira in the first four months to fund its 2015 budget, which was approved by the parliament last month, finance minister, Ngozi Okonjo-Iweala said at a press briefing on Tuesday.The Senate had last week approved 4.493 trillion naira budget, while the house of representatives had earlier approved 4.42 trillion naira, 51 billion naira more than the senate's approval. The budget was presented to both chamber of the parliament about five months ago by Okonjo-Iweala. The minister finance minister said in spite of the...

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Nigeria to sell 60 bln naira in bonds on May 13

Nigeria plans to sell 60 billion naira ($300 million) of 5, 10 and 20-year sovereign bonds on May 13, its fifth debt auction of the year, the Debt Management Office (DMO) said on Tuesday.The DMO said it would sell 20 billion naira each of the papers, due to mature in 2020, 2024 and 2034 respectively.The papers are re-openings of previous issues and the results of the auction will be published the following day.Nigeria, sub-Saharan Africa's biggest economy, issues sovereign bonds monthly to support the local bond market, create a benchmark for...

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