Nigerian interbank rate falls on increased liquidity

Nigeria's interbank rate dropped to 1.25 percent for overnight lending on Friday, from 3.5 percent last week, supported by increased liquidity from retired treasury bills and an expected injection of cash from December budget allocations.Traders said the central bank injected around 331 billion naira ($1.66 billion) in matured open market operation (OMO) treasury bills into the banking system on Thursday, while additional naira from the budget and refunds from deposits for foreign exchange purchases are expected to hit the system by close of business...

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Nigerian naira heading to further fall on disappointing MPC decision

The Nigerian naira was seen falling back in the week ahead unless a major step is taken to inject liquidity, traders said.On Tuesday, the central bank rejected calls to relax its forex rules, prompting the naira to weaken further to 306 on Thursday from 300 a dollar on Tuesday on the parallel market. The naira remains stable on the official interbank market around the 197 a dollar peg rate."The market was disappointed by the outcome of the MPC meeting. Coupled with the scarcity of dollars in the market, the naira is heading toward another sharp...

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Nigeria's Buhari says he not convinced naira should be devalued

Nigeria's President Muhammadu Buhari is against devaluing the naira, his office said on Thursday, backing the central bank's stance of keeping rates unchanged in the face of sharp falls against the dollar on the black market.The central bank decided on Tuesday to keep the current official exchange rate against the dollar at around 197 compared to street rates as weak as 305.Africa's top oil exporter is in the middle of an economic crisis as a slump in global oil prices has eroded public finances, hit the currency and dried up commercial banks'...

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"Whistleblower" helps Swiss investigation against FIFA's Blatter

An important witness has offered information to help criminal proceedings against long-time president of the world soccer body FIFA, Sepp Blatter, the Swiss attorney general's office said on Thursday.Spokesman Andre Marty said in an interview with TV programme "Morgenmagazin", broadcast on German channel ARD, that it should be clear by the end of 2016 to mid-2017 whether there was evidence to bring a charge against Blatter whose presidency has ended with the worst corruption scandal in FIFA's history."In the name of the office of the attorney general...

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Nigeria's bourse to buy Nasdaq monitoring system after stocks plunge

Nigeria's bourse plans to buy a price monitoring system from Nasdaq to protect against market manipulation, the stock exchange said on Wednesday, after stocks shed 17 percent in the first eighteen days of 2016.Nigeria's financial authorities last made substantial reforms to the stock market after a crash in 2008 stoked worries about inadequate oversight and brought allegations of financial mismanagement including insider trading."This development affirms our continuous commitment to protecting investors by creating a fair and orderly market," the...

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Nigeria to raise 192 bln naira in treasury bills

Nigeria plans to raise 192.39 billion naira ($967 million) in treasury bills with maturities between 3-month and 1-year at an auction on Feb. 3, the central bank said on Wednesday.The bank said it will raise 45.17 billion naira in the 3-month paper, 30 billion naira in the 6-month debt and 117.22 billion naira in the one year bill, using the Dutch Auction System.Nigeria, Africa's top crude exporter, issues treasury bills twice a month to fund the budget deficit and help manage banking system liquidity.Yields on treasury bills on Tuesday closed...

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Time to sell PZ Cussons pending signs of a turnaround

SHARES in PZ Cussons tumbled as much as 13pc to their lowest level in more than six years, as the oil crisis hit the company's African markets.However, Questor wouldn't go bargain shopping, as the group's balance sheet is now looking increasingly stretched after an acquisition binge Down Under.Africa sales slump1 The maker of Imperial Leather soap, Original Source shower gel and Morning Fresh washing powder has been hit hard after the plummeting oil price slashed consumer spending in Nigeria, its largest African market. However, Questor is more...

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Nigeria's MPC adopts Lame Duck Approach - Bismarck Rewane

The MPC met today and as widely expected in line with consensus view, the committee left monetary policy parameters unchanged. This was one of the most anticipated MPC meetings in recent times owing to Nigeria’s slowing growth, higher inflation, dwindling oil prices, depleting external reserves and exchange rate pressures. Also, the exchange rate process has been a subject of intense politicization.The markets expected to gain clarity on the Nigerian foreign exchange rate markets as well as a clearer outlook picture on the direction of monetary...

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Nigeria central bank keeps benchmark interest rate, naira exchange rate

Nigeria's central bank kept its benchmark interest rate at 11 percent on Tuesday and left the naira exchange rate fixed despite a dive on the parallel market.Central Bank Governor Godwin Emefiele said the 12 members of the bank's Monetary Policy Committee voted unanimously to keep the rate unchanged. The bank also held the cash reserve ratio for commercial banks at 20 percent.Sixteen of 18 analysts polled by Reuters in the run-up to the Monetary Policy Committee meeting had expected the central bank to hold interest rates steady at 11 percent....

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Nigerian minister tells MTN to drop lawsuit over fine

South African cellphone operator MTN should drop its legal action over a $3.9 billion fine imposed in Nigeria to help facilitate talks on a possible settlement, the Nigerian telecommunications minister said on Tuesday.The Nigerian Communications Commission (NCC) slapped a $5.2 billion fine on MTN in October for failing to disconnect users with unregistered SIM cards but after weeks of negotiations reduced it by 25 percent.MTN, which makes about 37 percent of its revenue from Nigeria, then filed a suit in the West African country questioning NCC's...

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Nigerian naira flat, stock gains ahead of Cbank MPC meeting

Nigeria's naira traded flat on Monday while stocks gained for the fourth day as domestic investors snapped up banking and oil shares in anticipation of the central bank's decision on rates and any word on forex controls on Tuesday, traders said. The stock index, which has the second-biggest weighting on the MSCI frontier market index after Kuwait, rose 0.58 percent to 23,965 points. The index has lost 16.8 percent in 15 days of trading this year. Investors are closely watching Tuesday's central bank meeting to see whether authorities will ease...

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Nigeria to extend stamp duties collection to food, drugs, events

Barely a week of announcing the enforcement of its stamp duties law on financial transactions across commercial banks, Nigeria may be on the road to extend the enforcement of same law to retailers of drugs, food and other commodities in the commercial hub of Lagos. In a notice on Monday, an agent of the government announced that stamp duties will now be collected from fast food joints, event center and drug stores in the commercial hub of the Africa's biggest economy. "Please be informed that we have been appointed as an...

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Nigeria considering tax changes to ease economic crisis -vice president

Nigeria's government is considering changes to the tax regime as part of efforts to overcome the crisis in Africa's biggest economy brought on by falling oil prices, Vice President Yemi Osinbajo said on Friday.The sharp drop in crude revenues, which provide 95 percent of foreign earnings, has led to the naira hitting record lows on the parallel market as foreign exchange reserves dwindle. Nigeria is Africa's top oil producer.Crude prices have fallen in the last few days to their lowest levels since 2003, at just over $27 a barrel, although they...

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Nigerian interbank rate eases after central bank injects liquidity

Nigeria's interbank overnight lending rate fell 3.5 percentage points on Friday after the central bank injected naira deposits from commercial lenders into the market. The overnight rate closed at 3.5 percent on Friday, from 5 percent the previous day after the central bank drained naira liquidity when it sold Treasury bills. The rate had initially spiked to 7 percent, its highest since October. Nigeria sold 85.83 billion naira in naira-denominated bonds maturing in 2020 and 2026 in Wednesday's auction with payment due on Friday. The central...

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Nigeria plans up to $5 bln borrowing from sources including Eurobonds - finance minister

Nigeria plans to borrow up to $5 billion from multiple sources, including the Eurobond market, to plug its deficit as it tries overcome its worst economic crisis in years through a record budget, its finance minister said on Thursday.Africa's biggest economy and top oil producer is reeling from the fall in crude revenues, the source of 95 percent of foreign earnings, which has led to the naira hitting record lows on the parallel market amid dwindling foreign exchange reserves."Our total borrowing expectations are now at 1.8 trillion naira ($9.1...

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Commodity market turbulence to take its toll on Africa's economic giant- Bismarck Rewane

The bible says in Genesis 41:29-30 that, seven fat years in Egypt will be followed by seven lean years in the time of Joseph. It was to warn the profligate children of Egypt to reduce their ostenta-tious and extravagant ways. They were advised to save some wheat or grain in preparation for the tough times ahead. Rewane Even in biblical times, the cyclicality of economics was acknowl-edged. Therefore, it is surprising that various Nigerian admin-istrations...

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INTERVIEW-S&P may cut oil countries' ratings to reflect "new reality"

Credit rating agency Standard & Poor's signalled on Friday that oil-exporting countries face fresh downgrades as crude prices fall further and that it could repeat last year's move when it made a big group of cuts all at once.The plunge in oil prices since mid-2014 has brought a blizzard of downgrades, including for Russia and Brazil, which have been stripped of investment grade, number one producer Saudi Arabia, and Venezuela, where the oil rout has raised fears of a sovereign default. But a further 20 percent slump since the start of the...

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South Africa's rand to track global markets as market awaits rate call

South Africa's rand was mostly flat against the dollar in early Friday trade, with traders and analysts expecting it to take its steer from global trends as investors await next week's domestic monetary policy statement.The local bourse looked set for a strong start at 0700 GMT, as indicated by a 1.7 percent jump in the Top-40 futures index.The rand was changing hands at 16.5400 to the greenback by 0655 GMT, just 0.13 percent firmer than its 16.5610 Thursday close in New York.The rand has had a turbulent start to 2016, shedding 7 percent after...

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Pressure on the Nigerian naira is ahead Tuesday's MPC meet - NKC

Pressure on the Nigerian naira is building ahead of the crucial Monetary Policy Committee (MPC) meeting scheduled for Tuesday. The policy committee will convene for the first rate decision meeting this year amid a deepening oil price rout and increased calls for a devaluation.  We are not optimistic that the MPC will provide a clear strategy for the normalisation of FX conditions, although we expect a partial reversal of recent months’ accommodative actions. Due to its growth-oriented bias, we remain cautious of further unconventional policy...

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Nigeria sells 195 bln naira Treasury bills at higher rate

Nigeria sold 195.95 billion naira ($975 million) in Treasury bills with maturities from three months to one year in its second auction of the year on Wednesday, at higher yields than previously, the central bank said on Thursday.The bank sold 36.78 billion naira of three-month paper at 4.29 percent, up from 4 percent at a sale on Jan. 6.It also sold 39.17 billion naira of six-month debt at 7.59 percent against 6.99 percent, and 120 billion naira of one-year paper at 9.32 percent compared with 8.05 percent.Demand totalled 288.98 billion naira compared...

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Nigerian interbank rate rises on drop in liquidity

Nigerian overnight interbank lending rate rose sharply to five percent on Thursday, its highest since October, after the central bank drained naira liquidity through sales of (OMO) treasury bills, traders said.There was no official comment on the sudden rate rise, but higher rates could support the naira. The government, fighting intense pressure on the currency from the collapse in prices for Nigeria's oil exports, has pegged the currency at around 198 per dollar on the official interbank market.The market closed at 3.5 percent for overnight borrowing...

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Nigeria's currency market eyes MPC decision on naira

Trade on Nigeria's naira may be cautious ahead of a rate-setting meeting by the Monetary Policy Committee (MPC) next Tuesday, as traders expect the local currency to take its cue from the outcome of the MPC meeting.Traders said the rate-fixing MPC meeting, the first this year, is expected to outline whether it favours devaluation of the local currency or not. The naira weakened to its lowest last week after the central bank halt dollar sales to Bureaux de change operators. The local currency has since stabilised at 300 to the dollar on the parallel...

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Nigeria's stocks in 2-day consecutive rally

Nigerian stocks closed higher on Thursday for the second consecutive day, lifted by shares in banking, cement and food firms.Nigeria's all-share index which has the second-biggest weighting after Kuwait on the MSCI frontier market index, rose 1.5 percent to 23,686 points, its highest level in a week.The market fell to its lowest level in 3-1/2 years on Monday as stock markets around the world suffered due to declining oil prices and concerns over China's economy. Nigeria's central bank reduced dollar sales to foreign investors exiting the market,...

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Nigeria will have to devalue in 2016 - S&P

Ratings agency Standard & Poor's reiterated on Thursday that Nigeria will have to devalue its currency, saying it expected this to happen at some stage in 2016 and in gradual adjustments.Investors have seen a devaluation of the naira as long overdue for Africa's largest economy and biggest oil exporter, which has been battered by the tumble in crude prices.Despite growing pressure, Nigeria's government has kept the naira pegged at around 198 to the dollar on the official interbank market, while restricting access to dollars. "Their line has...

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MTN denies wrongdoing following Cameroon's tax claim

South Africa's MTN Group said on Thursday it was compliant with Cameroonian laws, a day after the central African nation said the mobile phone company owes money in taxes.Cameroon's National Anti-Corruption Commission (CONAC) said on Wednesday the local units of MTN and France's Orange owed Cameroon nearly $166 million in unpaid taxes. "MTN Cameroon is not and has never been implicated in corruption-related actions, in the exercise of its activities," MTN said in a statement.Cameroonian authorities have also accused MTN of benefiting from illegal...

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Nigeria pipeline attacks cause $2.4 mln gas, power loss each day-govt

Attacks on pipelines in Nigeria over the weekend have cost Africa's biggest economy around 470 million naira ($2.4 million) each day in lost gas and electricity, the government said on Thursday. The attacks in the southern oil-producing Niger Delta region followed years of relative calm in that part of Africa's biggest crude producer after a 2009 amnesty halted a spate of attacks on oil installations and kidnappings of expatriate workers.On Wednesday, the state oil company said it had closed two of its four refineries due to crude supply problems...

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Nigeria sells 85.8 bln naira in naira-denominated bond at higher yields

Nigeria sold 85.83 billion naira ($431 million) in naira-denominated bonds maturing in 2020 and 2026 at an auction on Wednesday, paying higher yields than at the auction held in December, the Debt Management Office (DMO) said on Thursday.The debt office said it sold 40 billion naira of 2020 paper at 12.24 percent compared with 10.95 percent at last month's auction, while it issued 35 billion naira at par in the 2026 debt with a return of 12.50 percent.An additional 10.83 billion naira of the 2026 paper was allotted on a non-competitive basis to...

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South Africa rate hike likely after retail sales, inflation edge higher

South Africa's retail sales grew more than expected while consumer inflation also accelerated, official data showed on Wednesday, making an interest rate hike very likely next week despite weak overall economic growth.The South African Reserve Bank raised its benchmark lending rate by 50 basis points last year, and some analysts expect another increase on Jan. 28, as a sharply weaker rand and rising food prices due to drought, fuel inflation.Retail sales rose by 3.9 percent year-on-year in November after expanding by a revised 3.4 percent in October,...

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Shell's profits hit by further slide in oil prices

Royal Dutch Shell expects to report a near halving in profits in the last three months of 2015 following the further slide in oil prices, it said on Wednesday, a week before shareholders meet to vote on its $47 billion deal to take over rival BG Group. Giving preliminary estimates for results ahead of the meeting, Shell said its underlying fourth-quarter earnings on a current cost of supplies basis would be between $1.6-1.9 billion, down from $3.26 billion a year ago. Oil prices fell by another 24 percent in the fourth quarter, as global...

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Nigeria's stocks rise 3 pct in early trade, bucking global trend

Nigerian stocks closed almost 4 percent higher on Wednesday, a dramatic recovery after two weeks of declines, as bargain hunters took positions in the market.The gains bucked the trend by global stocks, which sank to their lowest levels since July 2013 as oil prices slumped to 13-year lows. The losses left equity markets on track for one of their worst monthly performances ever,Nigeria's all-share index, which has the second-biggest weighting after Kuwait on the MSCI frontier market index, rose to 23,335 points, up 3.91 percent. It had dropped...

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Arise: London-based global news network goes off air, leaving UK staff unpaid

Just before 5pm on 14 January, something strange happened to television channel Arise, a small African television network operating out of London – it suddenly vanished from the airwaves.The message beneath logo of the station, which is broadcast on Sky channel 519 and which operates from prime studios overlooking Trafalgar Square, Buckingham Palace and Big Ben, simply read: "Normal service will resume as soon as possible." Obaigbena But those...

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Nigeria's SEC, DMO aim for debut sovereign sukuk in 2016

Nigeria's debt management office (DMO) and capital market regulator have agreed to collaborate on a debut issuance of sovereign Islamic bonds (sukuk) before the end of the year, the two bodies said.The move could spur wider issuance of sukuk in one of Africa's most liquid debt markets, following similar sovereign deals from Senegal and Ivory Coast.Issuance of a sovereign sukuk was part of a strategic plan developed by the DMO three years ago and it will now seek help from Nigeria's Securities and Exchange Commission in areas such as capacity building,...

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Shell attacked for its part in 'extraordinary' £2.3bn Nigerian tax break

Royal Dutch Shell has come under fire for being part of a consortium that accepted an "extraordinary" $3.3bn (£2.3bn) tax break in Nigeria – twice the poverty-stricken country's annual health budget.In a new reportActionAid estimated the consortium, which also includes France's Total and Italy's Eni, received this benefit between 2004 and 2012 on top of Nigeria's standard five-year tax holiday to encourage investment. The charity says the cost of the tax breaks could have been better spent on improving health and education systems at the same pace...

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