Shell to focus future investment in Nigeria on gas - Nigeria MD

Shell will focus its future investments in Nigeria on natural gas for domestic consumption and export, the managing director of the oil major's joint venture in the country said on Wednesday."Our strategy is to invest a lot more in gas, for domestic consumption and export. We want to grow our deep water and constrain our onshore oil production," Osagie Okunbor told reporters in Port Harcourt, the country's oil hub.Shell has been divesting onshore oil-producing assets for the last few years and completed another set near the end of March.The sales...

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Nigeria Cbank adjusts fx peg again, naira firms at unofficial mrkt

Nigeria's central bank adjusted its exchange rate peg on Wednesday to 196.95 naira against the dollar from the 197 set since July, traders said, quoting a broadcast from the regulator.The adjustment is the sixth since the central bank introduced a tight controls on the foreign exchange market in February. Access Bank chief The bank said at the time it would sell dollars only at 198 naira to customers through the interbank based on direct orders...

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Nigeria plans increase capital for SWF, to get $1bn fresh capital

Nigerian Government to increase its Sovereign Wealth Fund (SWF) to $4.5 billion by 2018, erasing earlier fears that the Fund may not receive additional capital, at least in the near term, due to low oil prices.Nigeria’s SWF, managed by the Nigerian Sovereign Investment Authority (NSIA ) still has about $1.5 billion assets under management since 2011 when it was established.The new proposal is coming a few weeks after the fund managers raised concerns...

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Nigerian firms in trouble as central bank measures backfire

* Nigeria imposes forex controls, bans import of 680 items* Manufacturers warn import ban might force closure of plants* Companies wait for weeks to get dollars to pay suppliers* Africa's biggest economy suffers from oil price crashNigerian companies making anything from soap to tomato paste could run out of raw materials and be forced to shut down as Africa's top oil producer has effectively banned the import of almost 700 goods to prevent a currency...

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Fitch: Nigerian Banks' Foreign Currency Liquidity Still Tight

Cutting reserve requirements (CRR) will not add liquidity to the Nigerian banking system because it releases no additional foreign currency,  Fitch Ratings has said. "Substantial government-related foreign currency deposits are exempt from reserve requirements and have already been withdrawn from the system after the government ordered all public-sector deposits to be moved from commercial banks into the centralised Treasury Single Account (TSA) earlier this month,." Fitch said in its latest assessment of Nigerian banks. Nigeria's Monetary...

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Oil up to $50 as U.S. stock-draw balances China data

• U.S. crude inventories fall 1.5 mln barrels - EIA• China factory PMI falls to 6-1/2-year low• Weakening Chinese economy to hit global oil demandThe price of Brent crude oil jumped more than 2 percent to $50 a barrel on Wednesday as a drawdown in U.S. crude oil stocks outweighed the negative impact of weak economic manufacturing data from China. The U.S. Energy Information Administration said U.S. crude inventories fell 1.9 million barrels to...

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Falling oil price raises doubts over Africa's "middle class"

Lower commodity prices hammer African economiesDefinitions of African middle class vary wildlyInvestment focused on affluent countries, citiesGrowth, investment may not benefit masses, as hopedWhether it's selling pensions, pasta or toothpicks, investors in Africa have been targeting the booming middle class. But a year of diving commodity prices has exposed how much the continent, and its consumers, still rely on exporting resources.A decade of growth above five percent in sub-Saharan African economies has drawn a wave of interest in selling consumer...

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Ecobank gets $285 mln loan from Deutsche Bank

The pan-African banking group Ecobank Transnational Incorporated (ETI) said on Wednesday it has obtained a $285 million senior unsecured loan from  Deutsche Bank AB. The lender in a notice to the Nigerian Stock Exchange (NSE) said was obtained through a syndicates of banks led by Deutsche Bank. ETI said it appointed Deutsche Bank to be Initial Mandated Lead Arranger, Book-runner and Facility Agent, together with a syndicate of international banks to arrange the facility.  "Deutsche Bank A.G has successfully closed primary...

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Nigerian bonds yields fall, interbank lending rates go up

Yields on Nigerian bonds declined on Wednesday after the central bank slashed its cash reserve ratio by 6 percentage points to boost liquidity in the banking system but interest rates remained high at the interbank market, traders said."We have seen yields dropping this morning in response to the expected increase in liquidity," one dealer said. Emefiele, central bank governor Nigeria's central bank kept its benchmark interest rate on hold at 13...

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Nigeria's says TSA drains less cash from banks than speculated

The central bank said the amount transferred from the banking system to government treasury Single Account (TSA) was less than the figures being speculated by some analysts. Some analysts had put the amount transferred from the banking system at around 1.2 trillion naira or 10 percent of banking system total deposits, However a banker says the amount actually transfer was in the region of 345 billion naira. Dapo Olagunju, head of treasury Access Bank said on a TV programme that net cash transferred was about 2.5 billion naira in the course of moving...

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Nigeria's distributable revenues fell in August to 442.606 bln naira

Nigeria's distributable revenues to the three tiers of government fell in August to 442.606 billion naira, down 69.193 billion naira from July, the finance ministry said on Tuesday."A drastic drop in crude oil export, shut down and shut-in of production for maintenance at different times and terminals during the month of July were the major issues that negatively impacted crude oil revenue," Anastasia Nwoabia-Daniel, the permanent secretary, said.She added that the country's rainy day fund, the Excess Crude Account, totalled $2.257 billion as of...

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Nigeria central bank cuts reserve ratio to boost liquidity

Nigeria's central bank kept its benchmark interest rate on hold at 13 percent on Tuesday but loosened monetary policy by cutting banks' cash reserve ratio to 25 percent to ease liquidity shortages, governor Godwin Emefiele said.The vote to cut the cash reserve requirement from 31 percent was by 7 to 3 votes of the monetary policy committee, he said, adding that the committee had voted unanimously to keep the main rate unchanged.Liquidity on the interbank market has dried up since authorities last week forced commercial banks to move government...

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Nigeria to inject dollars again into interbank market-traders

Nigeria's central bank will inject dollars into the banking system again on Wednesday to ease a shortage of foreign currency and take some pressure off the local unit, traders and banking sources told Reuters on Tuesday."There was a broadcast from the central bank yesterday (Monday) that we should provide cash backing for dollars sale on Wednesday," one dealer said. Emefiele, central bank chief The central bank also intervened in the market on...

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Nigerian interbank overnight rates at 15 pct, liquidity down

Nigeria's interbank overnight lending rate was 15 percent on Monday but liquidity was low as banks had transferred government revenues to a central bank account, traders said.Trading on the interbank market has seen disruptions for a week as authorities have ordered lenders to move government funds to a "Treasury Single Account" (TSA) at the central bank, part of an anti-corruption campaign. Emefiele, central bank governor "Market liquidity has...

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Oil prices up 2 pct after U.S. drilling falls

Oil prices rose more than 2 percent on Monday after data showed U.S. drilling slowed and a report said $1.5 trillion worth of planned production was uneconomic at current prices.Crude has halved in value over the last year as soaring global production overwhelmed demand and the much lower prices have now begun to hit drilling, particularly in the United States. U.S. drillers have cut the number of rigs in operation for three straight weeks. NNPC...

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Nigeria central bank to hold interest rate on Sept 22

Central bank to hold key rate at 13 pct on Sept. 22 Bank to hike benchmark rate to 14 pct in Nov C.bank needs to relax fx controls and devalue naira                                                                       Nigeria's central bank will wait until November to hike...

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Nigerian interbank market not trading as banks pay for bonds

Nigeria's interbank money market halted trading for the fourth consecutive day on Friday as commercial lenders made provision to pay for 45 billion naira of bonds auctioned on Wednesday, draining cash from the banking system."All we have is indicative quotes of between 15-20 percent for Open Buy-Back (OBB) and overnight lending, no trading is taking place for now," one dealer said.Nigeria sold the naira-denominated bonds maturing in 2020 and 2034 at an auction on Wednesday, and payment was due to be effected on Friday.There were some deals done...

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Angolan central bank looks to stem currency slump

Angola's central bank tightened currency liquidity at an emergency meeting on Thursday, after the currency of Africa's second largest oil exporter weakened a further 6 percent this week. The kwanza has shed nearly 30 percent against the dollar this year as a steep fall in oil prices has hit Angola's economy, the third largest in sub-Saharan Africa. Dollars Currencies across the continent have been hammered by a broad-based slump in commodity prices.Several...

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EXCLUSIVE-"Don't panic," Nigerian central bank governor urges banks

By Reuters Nigerian central bank Governor Godwin Emefiele ruled out on Thursday a naira devaluation and told people not to panic about the government shifting its bank accounts to the central bank, a move that drains billions of dollars from the financial system.In an interview with Reuters, Emefiele said he was ready to inject liquidity if needed into the interbank market, which dried up this week following a directive to government departments...

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Nigerian interbank market still not trading on low cash liquidity

Nigeria's interbank money market halted trading for the third consecutive day on Thursday amid a continued decline in liquidity in the banking system after new government directives triggered huge cash outflows. Wigwe, Access Bank chief “We only have indicative quotes of about 20-30 percent in the market for overnight lending, but no bank was willing to do any deal even at that rate yet,” one dealer said.Dealers said system liquidity has continued...

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Nigeria raises 45 bln naira in 5-, 20-yr bond sales; yields rise

Nigeria sold 45 billion naira worth of naira-denominated bonds maturing in 2020 and 2034 at an auction on Wednesday, paying higher yields than at its previous auction in August, the Debt Management Office said on Thursday.The amount raised at the auction was short of the 70 billion naira initially proposed by the debt office. Traders said the debt office was constrained by the higher yields that investors demanded and reduced the amount of debt sold. Emefiele,...

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Nigeria's forex reserves down 3 pct in month to Sept 14 -c.bank data

Nigeria's foreign exchange reserves fell 2.97 percent to $30.69 billion by Sept. 14, from $31.63 billion a month earlier, data from the central bank showed on Wednesday. Dollars The reserves of Africa's top crude exporter were down 22.42 percent from a year earlier. The central bank has used the reserves to support the local currency, selling dollars to bureau de change operators twice weekly in a bid to narrow the gap between the official and...

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Nigerian President says 'does not think naira should be devalued'

Nigerian President Muhammadu Buhari has ruled out possible devaluation of the naira currency in the near term, putting paid to speculations of an imminent relaxation of the current foreign exchange rule by the central bank.Buhari said on Thursday in an interview with France 24 that he does not think the country's currency, the naira, should be devalued again. President Buhari "I don’t think it is healthy for us to have the naira devalued further....

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Nigeria's interbank trading halted again as rule for forex funding change

Nigeria's interbank money market was halted for a second day on Wednesday after the central bank told commercial lenders to provide cash backing for foreign exchange purchases at its proposed intervention on Friday. Dollar currency  Trading on the interbank market was also halted on Tuesday as banks complied with a directive to transfer government revenues into a single account with the central bank. President Muhammadu Buhari had ordered...

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Benin GDP growth to slow to 5.5 percent on Nigeria woes - IMF

Economic growth in Benin will ease to 5.5 percent this year and in 2016 due to a sharp slowdown in its giant West African neighbour Nigeria linked to falling oil prices, the International Monetary Fund (IMF) forecast.  Lagarde, IMF chief “This is a moderate slowdown compared to 2014, due to negative spillovers from Nigeria - Benin’s main trading partner," Christine Dieterich, who headed a recent IMF mission to Benin, said in a statement released...

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Nigeria's Dangote shrugs off slump with new plants, mines in Africa

Africa's richest man upbeat on continent's growth prospects Billionaire to open new cement plants across Africa Dangote bets on construction boom, demand for sugar Africa's richest man, Aliko Dangote, plans to launch several new cement and sugar plants as well as mines across the continent, accelerating an expansion outside his Nigerian home market and shrugging off a downturn in Africa. Aliko Dangote A slump in commodity prices, lower demand...

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Kellogg stakes $450 mln in Nigeria's Indomie noodle manufacturer

Kellogg Company has announced the acquisition of 50 percent stakes at a cost of $450 million in Multipro, a premier sales and distribution company in Nigeria and Ghana in a new long-term partnership with leading food company Tolaram Africa. Tolaram presently holds 49 percent stake in Dufil Prima manufactures and markets several leading food brands, including Indomie noodles. Indomie Noodles The acquisition has significantly increased Kellogg's...

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Nigeria’s interbank market frozen as banks move govt revenue to cenbank

Nigerian banks made no bids on the interbank money market on Tuesday as they awaited instructions on how to comply with a directive to transfer government revenues into a single account with the central bank, dealers said. Emefiele and Buhari in hands shake President Muhammadu Buhari has ordered that all revenues be paid into the "Treasury Single Account" (TSA) from Tuesday, as part of a drive to fight corruption and aid transparency."No trading...

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Nigerian inflation edged up to 9.3 pct in August

Nigeria's consumer inflation was at 9.3 percent year-on-year in August, up 0.1 percent from July, and staying above the central bank's target upper limit, the national bureau of statistics (NBS) said on Sunday. Food inflation rose marginally to 10.1 percent year-on-year in August versus 10.0 percent in July. "The marginal increase was as a result of slower increases in alcoholic beverages, tobacco and kola, health, transport and recreation and culture divisions," the NBS said. "On a month-on-month basis, the pace of increases of food prices ......

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Ghana's central bank raises benchmark rate to 25.0 pct

The Bank of Ghana raised its main policy rate by 100 basis points to 25.0 percent on Monday to offset the risk of inflation, its governor Henry Kofi Wampah said. Inflation in the West African nation stood at 17.3 percent in August, down from 17.9 percent the previous month, and Wampah said the Bank tightened its rate in order to reach the full-year target of 13.7 percent. Ghana flag "It (the decision) is based on what we expect within the next...

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Nigerian stocks gain, naira falls on dollar shortage

Nigerian stocks gained almost two percent in early trade on Monday, while the local currency weakened on the parallel market amid a shortage of dollars.The Nigerian stock index gained 1.73 percent to 30,202 points, lifted by rising prices of banking, breweries, cement and petroleum shares. Onyeama, NSE boss The naira fell 0.67 percent on the unofficial market on concern about possible devaluation of the naira in the weeks ahead. It was quoted at...

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OPEC sees higher demand for its oil in 2016 as rival output slows

OPEC on Monday predicted higher demand for its crude oil next year, sticking to its view that a strategy of letting prices fall will curb supply from the United States and other rival producers.The monthly report from the Organization of the Petroleum Exporting Countries, however, trimmed its estimate for 2016 global oil demand growth and predicted a less dramatic slowdown in non-OPEC supply than the International Energy Agency.  OPEC said...

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Much ado about the JP Morgan Emerging Market Bond Index

By Obadiah MailafiaJP Morgan, one of the world’s leading investment bankers, recently announced that, come October ending, they might remove Nigeria from their list of emerging market sovereign bonds index. The announcement was not altogether a surprise. Since January this year they had let it be known that they had placed Nigeria “under watch” and would soon consider whether our country would be fit enough to remain on that “A” list of sovereign...

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Nigerian interbank lending rate down as liquidity rises

Nigeria's interbank lending rates fell 75 basis points to an average of 6.50 percent on Friday from 8.25 percent last week, as cash built up in the banking system.Traders said about 101 billion naira in matured treasury bills was repaid on Thursday and 45 billion naira in cash-reserve-requirement refunds also flowed into the banking system. The greater liquidity lowered the cost of borrowing among banks. Emefiele, central bank chief Also, Nigeria's...

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Nigeria bond yields seen flat at auction next week

Yields on Nigerian bonds are seen stable at the next debt auction on Sept. 16 after central bank declined to sell its short-dated Treasury bills to commercial lenders who were asking for higher returns in the last two weeks. Okonkwo, DMO boss Nigeria plans to raise about 70 billion naira ($351.76 million) in bonds with maturities of 5 years and 20 years on Sept. 16. But dealers said yields may not be far from the last auction given government reluctance...

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