Nigerian interbank rate tumbles on budget disbursal, matured bills

Nigeria's interbank lending rate fell sharply on Friday amid increased liquidity caused by an injection of funds from matured treasury bills and the disbursal of monthly budget allocations to states and local government, traders said. Emefiele The secured open buy-back (OBB) - the rate at which lenders can borrow from the interbank market using treasury bills as collateral - crashed to 0.5 percent from 7 percent last week, far below the central...

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Nigerian financial watchdog gives Stanbic IBTC 60 days to restate accounts

Nigeria's financial regulator has given banking group Stanbic IBTC 60 days to restate 2013 and 2014 accounts after it ordered the company to withdraw them over "misleading" disclosures relating to expenses, the watchdog said. Emefiele, CBN governor Jim Obaze, head of Nigeria's Financial Reporting Council (FRC), said it had imposed a fine of 1 billion naira ($5.03 million) on the local unit of South Africa's Standard Bank as stipulated in the regulations...

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Nigeria's central bank weakens naira FX peg at interbank

Nigeria's central bank weakened its exchange rate peg to 197 to the dollar on the interbank market on Friday, down from 196.97 on Monday, traders said.Traders said the regulator set the new rate for market closing price on Thursday, making this the 11th adjustment since the bank introduced tight currency controls in February.The central bank has resorted to adjusting the rate on the local currency since pegging it to the dollar in February and abolishing two-way naira quotes to help conserve forex reserves.Traders said the present method of exchange...

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Nigeria's bond yields to rise as offshore investors sell

Yields on Nigeria's local currency denominated bonds are expected to rise next week as offshore investors and some local investors sell holdings."We are anticipating a massive sell off next week from some offshore investors still holding their positions in the market," one dealer said, adding some local pension funds could follow suit.JP Morgan is expected to remove Nigerian bonds from its Emerging Market Government Bond Index (EM-GBI) by the end of October, prompting the shift out.Yields on the benchmark 2024 paper dropped to 13.49 percent on...

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Nigeria's central bank says fraudsters out to dupe bank depositors on BVN

Nigeria’s central bank has issued a fraud alert on its project to ensure the identification of commercial lender customers through biometrics method, saying depositors should not respond to fraudulent email from some unscrupulous individuals out to defraud them. Emefiele In a statement signed by its director of communication, Ibrahim Muazu, that certain unscrupulous individuals have been sending unsolicited mails and text messages to unsuspecting...

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Nigeria gives MTN until Nov. 16 to pay $5.2 billion fine

South African telecoms group MTN has until Nov. 16 to pay a $5.2 billion fine imposed by Nigerian authorities for failing to deactivate unregistered SIM cards before a deadline, Nigeria's communications regulator said on Friday.Top executives from Africa's biggest mobile phone company are in Nigeria to discuss ways of resolving the massive fine, which has knocked around 20 percent off MTN's share price.Nigeria's presidency and internal security agency were also involved in the talks, a regulatory source said."The outcome of the discussion may affect...

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Nigeria planning $25 bln infrastructure fund - official

Nigeria plans to set up a $25 billion infrastructure fund to invest in the transport and energy sectors in Africa's most populous nation, a spokesman for Vice President Yemi Osinbajo said on Thursday. Laolu Akande said money for the planned fund would come from local and international sources including Nigeria's sovereign wealth fund and domestic pension funds."The vice president disclosed that other sovereign wealth funds have already indicated an interest in the fund, which would be used to address the nation's decaying road, rail and power infrastructures,"...

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Nigeria launches televised bidding for oil contracts, to cut deals by a third

Nigeria's state oil firm Nigeria National Petroleum Corporation (NNPC) began auctioning annual crude term contracts on live television on Tuesday and vowed to cut the number of contract holders by a third in a drive to boost transparency at an institution dogged by corruption.The contracts cover the bulk of Nigeria's nearly 2 million barrels per day (bpd) of crude oil exports, which are a key contributor to the country's economy. NNPC HQ President...

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IMF paints gloomy outlook for sub-Saharan Africa

* African growth at lowest in six years, IMF says* Weak commodity prices hitting many countries* Ghana doing "reasonably well" under programmeThis year's slump in commodity prices and the end of a flood of cheap dollars has pegged back African growth to its weakest in six years and things could get worse if the global economy continues to flounder, the International Monetary Fund (IMF) said on Tuesday.In its latest African Economic Outlook, entitled...

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Nigeria's central bank strengthens naira fx peg on interbank market

Nigeria's central bank strengthened its exchange rate peg slightly to 196.97 to the dollar on the interbank market on Monday, from the mark of 197.00 set two weeks ago, traders said.Traders said the regulator had announced the change in currency peg via a message, making this the 10th adjustment since the bank introduced tight currency controls in February."The central bank sent a broadcast today advising 195.97/196.97 as buying and selling rate on the interbank market at its intervention session," one dealer said.Traders said a unit of French...

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MTN confirms Nigerian unit fined $5.2 bln, shares fall

South Africa's MTN confirmed on Monday it was fined $5.2 billion by the Nigerian regulator for failing to disconnect subscribers with unregistered and incomplete SIM cards at its firm in Africa's biggest economy.Shares in MTN extended their losses to more than 10 percent and traded down 9.3 percent lower at 173 rand by 1236 GMT.The Nigerian Communications Commission imposed the fine on MTN Nigeria and it relates to the timing of the disconnection of 5.1 million subscribers in August and September, Africa's largest mobile operator said in a statement."MTN...

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Nigeria’s First Bank to cut deposit rates

*Non-remittance of NNPC funds earned 2 banks fine * Central bank fine First Bank 1.8 bln naira *UBA to cough out 2.9 bln naira fine First Bank, one of Nigeria’s biggest banks may crash its deposit rate to below 5 percent in line with the falling cost of borrowing in the interbank market, which plummeted to 1 percent last week, but climbed to 7 percent at the close of business on Friday. Overnight borrowing among banks opened at 4 percent on...

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Ghana seeks fresh Eurobond this yr of up to $500 mln -finmin

Ghana will seek to issue a fresh Eurobond of up to $500 million by year end if market conditions are right, Finance Minister Seth Terkper told a news conference on Friday.The government launched a $1 billion Eurobond at a 10.75 percent coupon rate on Oct. 7, after having initially targeted a $1.5 billion bond at 9.5 percent."We still have an approval from parliament for $1.5 billion for 2015 so if the opportunity presents itself before the end of the year and since it's part of the budget that was approved we could still go to the market depending...

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Nigerian interbank rate rises, as banks restrict lending on callaterised basis after defaults on overnight

Due to growing rate of defaults at the interbank money market, some banks are no longer willing to give out funds to other banks on overnight basis, banking source said on Friday. "Most fund placers are no longer lending overnight because the default rate is gradually growing, hence the concentration on collateralised lending through OBB," one trader said. Banking source said since the government ordered the transfer of its deposits to a Treasury...

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World's first malaria vaccine delayed as WHO experts urge caution

The world's first malaria vaccine is promising but should be used on a pilot basis before any wide-scale use, given its limited efficacy, World Health Organization (WHO) experts said on Friday.The decision is likely to delay a possible broad roll-out of the shot for between three and five years.GlaxoSmithKline's Mosquirix could, in theory, help stop millions of cases of malaria in young children in Africa at risk of the deadly mosquito-borne disease.However, it is less effective than vaccines against many other diseases and there is uncertainty...

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Nigeria needs to devaluate naira, ease dollar restrictions- former cenbank governor

Nigeria will have to devalue the naira and loosen monetary policy to stimulate Africa's biggest economy hit by a plunge in oil prices, former central bank governor Lamido Sanusi said on Friday, criticising the bank's currency policy. Eemfiele Sanusi was removed in 2010 after he raised concern that tens of billions of dollars in oil revenues had not been remitted to state coffers."It is wrong to think that you can keep the naira at a certain...

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Nigerian banks face challenge to refinance loans - TRLPC

Nigerian banks could start facing financial restructurings within six months, with some banks now unable to repay their debt as depressed oil prices continue to weaken balance sheets, bankers said.The continuing low oil prices and the Nigerian government& rsquo;s slowness to react to the country’s looming bank crisis could create difficult financial situations for Nigerian banks increasingly unable to repay their debt. Dollars In...

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Without a cabinet, Nigeria is stuck "on hold"

Senate wrangling delays cabinet nominationsLack of state spending raises pressure on economyPoverty widespread despite Nigeria's energy wealthSeven months after Muhammadu Buhari was elected president on a promise to "fix" Nigeria, a policy vacuum has brought decision-making to a halt, hampering everything from national budget planning to new roads and art exhibitions. President Buhari Late on Thursday, the Senate ended yet another session screening...

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Nigeria's anti-graft agency says banks to strengthen e-platforms

The Economic and Financial Crimes Commission (EFCC) has urged banks to protect customers' transactions by strengthening their e-platforms.EFCC said enacting the Cybercrime Act will help monitor electronic transactions and investigate real and potential cyber attack, as is done in countries like Britain.The Commission recommended this through Ibrahim Shazali of its Bank Fraud Section at a presentation at the ongoing Nigerian Deposit Insurance Corporation (NDIC) workshop for financial correspondents in Ilorin, Kwara Sta...

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Nigeria to raise electricity tarrif by 40 pct to off-set increase cost

Nigeria plans to raise electricity tariff by as much as 40 percent for some customers next month on the back of falling local currency value and increasing costs hinder efforts to end daily blackouts in Africa’s largest economy.“We are working on the numbers and going through the processes,’’ Sam Amadi, chairman of the Nigerian Electricity Regulatory Commission, said in a phone interview late Wednesday from the capital, Abuja. Some bills will increase 5 percent while others will see prices raised as much as 40 percent depending on the power provider...

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MTN Cuts Subscriber Target as Nigeria Customer Numbers Slide

Africa’s largest wireless operator, MTN group has cut its full-year forecast for subscriber numbers after more than 5 million Nigerian customers were disconnected following the regulator review the process of sim registration by the company.The company will add 14.8 million net subscribers this year, compared with a previous forecast of 16.75 million, Johannesburg-based MTN said in a statement on Thursday. The carrier’s customer base grew 0.9 percent to 233 million in the three months through September compared with the previous quarter.MTN, which...

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Ghana in talks to head off Nigeria threat to cut gas supply

* President has vowed to end blackouts by New Year* Loss of Nigeria supply could raise gas costs* Threat shows strain of reforming Ghana energy sector Ghana held emergency talks in Nigeria on Thursday to avert a threat to cut gas supply drastically, which could worsen the country's electricity blackouts and present an extra headache for the government.The Nigerian National Petroleum Corporation (NNPC) said it will cut gas supply by 70 percent to Ghana's main power generation company by Friday due to unpaid debts of $181 million. Ghana already suffers...

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Nigeria's central bank weakens naira FX peg on interbank market

Nigeria's central bank weakened its exchange rate peg slightly to 197 naira to the dollar on the interbank market on Thursday from 196.98 it set on Monday, traders said.Traders said the regulator sent a message announcing the adjustment which is the ninth since the bank introduced tight currency controls in February. Emefiele, CBN Gov "The central bank sent a broadcast today advising us on its buy and selling rate on the interbank market at its...

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Nigeria raises 120 bln naira in 2020, 2024 bonds at lower yields

Nigeria issued 120 billion naira worth of naira-denominated bonds maturing in 2020 and 2024 at an auction on Wednesday, at lower yields than the returns at its previous auction, the Debt Management Office said on Thursday. Nwankwo, Debt office boss The returns on the paper reflected the prevailing low yields on local bonds at the secondary market. The debt office raised 40 billion naira in the 2020 debt at 13.11 percent compared with 15.95 percent...

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Nigeria threatens to cut gas supplies to Ghana

Nigeria's N-Gas on Wednesday threatened to reduce by 70 percent its gas supplies to Ghana's main power generation company on Friday over unpaid debts that total $181 million, the West African Pipeline Company (WAPCo) said.Any curtailment of gas would lead to an "ugly situation" for power generation in Ghana, said Walter Perez, the managing director of WAPCo, which is itself owed $103 million by the Volta River Authority (VRA) power company.Ghana already faces crippling power shortages and electricity blackouts that have hurt the economy, raised...

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Nigeria revamps oil exploration firms in first step to reform

* Reuters exclusiveJoint ventures to be given budget controlNNPC reform a priority as oil slump hammers economyLetter gives details of restructuringNigerian President Muhammadu Buhari has taken his first steps towards overhauling the troubled state oil firm by giving its exploration joint ventures control over their own budgets as a way to overcome chronic cash shortages. NNPC HQ Corruption and mismanagement at the Nigerian National Petroleum Corporation...

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South African regulator wants Shoprite fined for reckless lending

South Africa's credit regulator has asked a consumer tribunal to impose a fine on grocer and furniture retailer Shoprite for reckless lending, it said on Wednesday. A branch of Shoprite The National Credit Regulator (NCR) said Shoprite should also not have sold retrenchment and occupational insurance to pensioners and consumers receiving government welfare grants."The sale of retrenchment and occupational disability covers to pensioners and consumers...

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Ghana Sept consumer inflation rises to 17.4 pct yr/yr -stats office

Ghana's annual consumer price inflation rose slightly to 17.4 percent in September from 17.3 percent the previous month, the statistics office said on Wednesday.The figure reflects fiscal problems facing the country, which is following a three-year aid programme with the International Monetary Fund aimed at restoring economic stability.Inflation among non-food items declined to 23.2 percent in September from 23.4 percent in August while food inflation increased to 7.8 percent last month from 7.7 percent in August, government statistician Philomena...

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ANALYSIS- A $70 oil floor? Fat chance, but OPEC price plan may be first step

The safe money for oil traders is betting that Venezuela's plan to resurrect OPEC's old price band mechanism, attempting to set a $70 floor for the battered market, will be doomed from the start.Saudi Arabia, the group's de facto leader, has shown zero interest in returning to a strategy of supporting prices; big producers outside the Organization of Petroleum Exporting Countries, namely Russia, have essentially ruled out cuts. And most analysts...

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Nigerian inflation edges up to 9.4 pct in September

Nigeria's consumer inflation was at 9.4 percent year-on-year in September, up 0.1 percentage point from August and staying above the central bank's target ceiling, the National Bureau of Statistics said on Wednesday.Food inflation rose marginally to 10.2 percent year-on-year in September versus 10.1 percent in August.Inflation in Africa's biggest economy has been rising this year as the effects of a weaker currency filters through the economy via imports. Due to its inadequate manufacturing capacity, Nigeria imports the bulk of what it consumes."The...

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Nigerian Stock Exchange appoints advisors to prepare possible IPO

The Nigerian Stock Exchange has appointed South African bank FirstRand and local investment firm Chapel Hill Denham to advise it on a possible share flotation, it said on Tuesday.The bourse, which has the second biggest weighting on the MSCI frontier market index after Kuwait, is a major entry point to invest in Africa.The stock exchange said in November that it was considering an initial public offering to attract more foreign investors. As a first step, the stock market plans to change its ownership structure from a mutual company of 240 brokers...

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Nigeria's Buhari asks head of biggest private equity firm to join cabinet

Nigeria's President Muhammadu Buhari has asked the head of the country's biggest private equity firm to join his cabinet, Senate President Bukola Saraki said on Tuesday, as lawmakers started screening candidates for a long-awaited government. Enelamah Saraki did not specify a portfolio for Okechukwu Enyinna Enelamah, head of African Capital Alliance (ACA), as he read out a second batch of Buhari's cabinet nominees that need to be approved by the...

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Oil glut to persist as global growth demand slows - IEA

• Slower demand, possible Iran return weigh on 2016 outlook• Non-OPEC supply growth disappearing fast on low prices• OPEC output rises in September, seen remaining elevatedA global oil supply glut will persist through 2016 as demand growth slows from a five-year high and key OPEC members maintain near-record output, the International Energy Agency said, even as low prices curb supply outside the producer group. Oil tangle The IEA, which advises...

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Nigerian interbank rates fall to average of 0.75 pct on excess cash

Nigeria's interbank lending rates fell further to an average of 0.75 percent on Friday, down from 1 percent the previous day and from 3 percent a week ago, after the central bank made a large cash injection into the banking system. Dada, Anchoria Investment boss The cost of funds fell to 1 percent for overnight lending and 0.5 percent for the secured Open Buy Back (OBB) on Friday after additional cash in banks' deposits with the central bank were...

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Nigeria's bonds to attract lower yields at next week's auction

Nigerian bonds are seen attracting lower yields at an auction next week amid a liquidity boost in the money market arising from fresh injection of cash by the central bank. Nigeria plans to issue 80 billion Nigerian naira ($402.01 million) worth of local currency-denominated bonds with a maturity range of between 5-years and 10-years on Oct 14. Dealers said yields on local bonds have dropped this week since the central bank injected fresh cash into the banking system from retired Treasury bills, refunds from cash reserve requirements (CRR) and...

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StanChart CEO plans to cut about 1,000 top staff - memo

Standard Chartered's new Chief Executive Bill Winters plans to cut up to a quarter of the bank's most senior staff to reduce costs, according to a memo sent to staff, which is likely to see about 1,000 top jobs go.Winters said he planned to reduce the number of staff who are graded in bands 1-4 by a quarter, according to an internal memo seen by Reuters. Those bands cover bankers at director level and higher, and include about 4,000 staff."Our situation requires decisive and immediate action. Each member of the management team has a mission to...

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Nigeria interbank overnight rate falls to 5-year low as funds buy bonds

Nigeria's interbank overnight lending rate fell to a five-year low on Thursday, hit by excess liquidity in the market that spurred renewed bond buying from commercial lenders and pension funds, traders said. Emefiele, CBN chief The overnight lending rate halved to 1 percent from the previous day. It had hovered around a three-month low of 3 percent last week after the central bank repaid matured open market bills and did not issue fresh ones...

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Nigeria raises 127 bln naira in T-bills at lower yields

Nigeria raised 127.07 billion naira ($638.86 million) selling Treasury bills with maturities of between three months and one year at lower yields compared with the previous auction, the central bank said on Thursday.The bank sold 25.40 billion naira of the 91-day paper at a yield of 10 percent, down from 10.50 percent at the previous sale last month. It sold 33.49 billion naira worth of six-month paper at a yield of 12.20 percent, down from 13.39 percent 0n Sept. 2, and paid 12.50 percent to sell 68.18 billion naira of one-year debt less than the...

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Nigeria overnight rate at record lows as central bank eyes lending

 Nigeria's overnight lending rate fell to record low 2 percent on Wednesday, as the central bank refunded excess withdrawals from lenders before it loosened monetary policy last month to spur credit growth, traders said.The regulator has been injecting cash into the banking system in a bid to ease liquidity and stave off recession in Africa's biggest economy, which has suffered as oil prices fell.It cut cash reserve requirements for lenders to 25 percent from 31 percent two weeks ago and left interest rates on hold at 13 percent. Liquidity...

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