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CBN to Borrow N129.6bn Via Tbs Wednesday

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CBN

The Central Bank of Nigeria is planning to borrow N129.67bn ($403.01m) in short-dated Treasury bills at an auction on Wednesday.

The CBN said it would raise N28bn in three-month paper, N33.49bn in six-month bills and N68.18bn in one-year bills.

According to a public notice by the lender, payment for the purchases will be made on Thursday.

The Federal Government issues Treasury bills to raise cash to fund the budget deficit, manage banking system liquidity and curb rising inflation.

The nation’s interbank lending rates were flat at around 15.25 per cent for overnight lending on Friday, even as market liquidity dropped significantly because of persistent Treasury bill sales by the central bank.

Traders said market liquidity should be below N100bn due to consistent cash withdrawal by the CBN via Treasury bill sales, although data on commercial lenders’ cash balance with the central bank was not available on Friday, Reuters reported.

Traders said the CBN had sold around N1.2tn ($3.73bn) in Open Market Operations Treasury bills at 14 auctions in one month in its bid to reduce liquidity in the banking system and curb pressure on the foreign exchange market.

“Market liquidity is very thin,” one dealer said.

According to the traders, banks have been resorting to the central bank’s standing lending facility to cover their positions.

The naira fell to an all-time low of 490 against the dollar at the parallel market early on Friday before recovering to 475 amid the lingering dollar shortage.

At the official market, the naira closed flat at 305.25 to the dollar, the same level it has held for the last two weeks, thanks to support from the central bank.

“We expect the interbank lending rate to remain at the present level next (this) week as the central bank is expected to continue its liquidity management strategy to curb pressure on the forex market,” one told Reuters.

The CBN had borrowed N140.88bn ($448m) via short-dated Treasury bills at an auction last Wednesday, attracting lower yields across the board, except on the three-month debt that was flat.

Traders said yields on the local debt were expected to gradually trade lower after the CBN’s Monetary Policy Committee retained its benchmark interest rate at 14 per cent.

The central bank had borrowed N183.24bn via Treasury bills at an auction two Wednesdays ago, with mixed yields on all the tenors.

The Federal Government has estimated that it will borrow around N900bn from the local debt market this year to fund a budget deficit projected at N2.2tn.

The CBN said it was planning to borrow N1.77bn via Treasury bills in the last three months of the year.

In its fourth quarter Treasury bill issue programme, the apex bank said it would raise about N815.37bn, comprising 91 days, 182 days and 364 days’ debt instruments.

In addition to the above, the central bank is also planning to raise about N952.05bn as rollover in the three categories of the instruments.

The Federal Government distributes revenues from crude exports and taxes among the three tiers of government every month.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Ecobank To Pay Customers N5 For Every Dollar Received

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ecobank

Ecobank To Pay Customers N5 For Every Dollar Received

Ecobank has implemented the CBN scheme which offers N5 for every Dollar received into domiciliary accounts or as cash over the counter. Korede Demola-Adeniyi; Head, of Consumer Banking, Ecobank Nigeria, who announced this in Lagos stated that the decision is in line with the CBN directive and fully aligns with efforts to encourage the inflow of diaspora remittances into the country.

She noted that the “CBN Naira 4 dollar scheme” is an unprecedented incentive for senders and recipients of international money transfers.

Korede Demola-Adeniyi said that the scheme takes effect from 8th March and will run till 8th May 2021. “Ecobank will pay N5 on every Dollar so beneficiaries will not only get the foreign currency sent from their family and friends abroad, but they will also get extra Naira”, she stated.

Only recently, Ecobank had a first-of-its-kind virtual Diaspora Summit to discuss opportunities for Nigerians living abroad and the various platforms available to assist them with their investment decisions and remittance needs. The event had major players in the remittance space, diaspora audience, government officials and notable stakeholders in attendance.

Further, the Managing Director, Ecobank Nigeria, Patrick Akinwuntan has disclosed that apart from consistent engagement with Nigerians in the diaspora, Ecobank is leveraging its digital technology to make remittances to Nigeria and Africa easy, convenient and affordable.

Mr. Akinwuntan stated that growing evidence has shown a positive relationship between diaspora remittances and economic growth.

“Ecobank will continue to pursue its mandate of helping to enhance the economic development and integration of Africa, through the 33 countries where the bank operates on the continent. Ecobank’s Rapidtransfer and mobile app (Ecobank Mobile) enable Africans, wherever they are, to easily and instantly send money to bank accounts, mobile wallets and agent locations across 33 African countries”, he stated.

Ecobank Nigeria, a member of the Pan African Banking Group is committed to supporting Africans in the diaspora by providing advisory services, remittance solutions, investment options and financial planning schemes. The bank also offers mortgages, treasury bills, capital market instruments, among others.

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Banking Sector

Peter Obaseki Retires as Chief Operating Officer of FCMB Group Plc

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The Board of Directors of FCMB Group Plc has announced the retirement of Mr. Peter Obaseki, the Chief Operating Officer of the financial institution, with effect from March 1, 2021. He was also an Executive Director of the Group.

His retirement was approved at a meeting of the Board of the Group on February 26, 2021. This has also been announced in a statement to the Nigerian Stock Exchange (NSE) by the financial institution.

The Chairman of FCMB Group Plc’s Board of Directors, Mr Oladipupo Jadesimi, thanked Mr. Obaseki for his valuable service and excellent support to the Board for many years.

FCMB Group Plc is a holding company divided along three business Groups; Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers Limited); as well as Asset & Wealth Management (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited).

The Group and its subsidiaries are leaders in their respective segments with strong fundamentals.

For more information about FCMB Group Plc, please visit www.fcmbgroup.com.

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Banking Sector

COVID-19: CBN Extends Loan Repayment by Another One Year

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Central Bank Extends One-Year Moratorium by 12 Months

The Central Bank of Nigeria (CBN) has extended the repayment of its discounted interest rate on intervention facility by another one-year following the expiration of the first 12 months moratorium approved on March 1, 2020.

The apex bank stated in a circular titled ‘Re: Regulatory forbearance for the restructuring of credit facilities of other financial institutions impacted by COVID-19’ and released on Wednesday to all financial institutions.

In the circular signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, CBN, the apex bank said the role-over of the moratorium on the facilities would be considered on a case by case basis.

The circular read, “The Central Bank of Nigeria reduced the interest rates on the CBN intervention facilities from nine per cent to five per cent per annum for one year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy.

“Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020.

“Following the expiration of the above timelines, the CBN hereby approves as follows:

“The extension by another 12 months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities.

“The role-over of the moratorium on the above facilities shall be considered on a case by case basis.”

It would be recalled that the apex bank reduced the interest rate on its intervention facility from nine percent to five percent and approved a 12-month moratorium in March 2020 to ease the negative impact of COVID-19 on businesses.

To further deepen economic recovery and stimulate growth, the apex bank has extended the one year-moratorium until February 28, 2022.

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