Connect with us


Why we are phasing $5.5bn foreign borrowing – DMO



Debt Management Office
  • Why we are phasing $5.5bn foreign borrowing – DMO

The Debt Management Office on Wednesday explained that the Federal Government could not raise $5.5bn as contained in the borrowing plan approved by the National Assembly in a single tranche despite the thirst for it in the market in order to moderate the cost.

The Director-General, DMO, Patience Oniha, who said this in an interview with journalists in Abuja, stated that the oversubscription of the $3bn Eurobond recently issued by the Federal Government was a confirmation of the faith of the international community in the Nigerian economy and policies of the government.

The Eurobond issue recorded about 366.67 per cent subscription as foreign investors staked $11bn on it.

Oniha said, “The demand of over $11bn from international investors is a demonstration of their confidence in the policies and reform initiatives of President Muhammadu Buhari as well as the economic outlook of Nigeria.

“Like those investors, we ourselves can attest to the economic improvements in Nigeria as demonstrated by higher external reserves, stable exchange rate, Gross Domestic Product growth of 1.44 per cent in the third quarter of 2017 and improvement in the ease of doing business.”

Oniha stated that the intention of the government was not to raise the $5.5bn at once but to get the $2.5bn required to support the 2017 budget first, while the $3bn required to refinance local debts would be raised in phases.

From a technical perspective, she added that the government also phased the borrowing in order to moderate the cost in the international capital market by managing the supply of Nigeria’s Eurobonds in the market.

The DMO boss said by raising the funds, the office was fulfilling its mandate in financing budget deficits as provided in annual appropriation Acts to enable budget implementation and the attainment of the government’s economic targets.

She stated, “The $2.5bn is specifically targeted at fulfilling the DMO’s mandate in this regard. On the $3bn for refinancing domestic debt, there are several benefits for the action, one of which is that it will reduce the crowding out of the private sector from the domestic market.

“It also has the potential to bring about a reduction in lending rates, which will make the cost of production of goods and services by the private sector cheaper and more price competitive. Another major benefit of external capital raising is a lower cost of borrowing to the government and a moderation in debt service costs.”

Oniha added, “The other part of the argument about debt becoming a burden is the issue of Nigeria’s revenue base, which at six per cent of the GDP, is not only low but well below that of peer countries. Thankfully, government’s revenue is now being given proper attention.

“The measures to increase revenues are already yielding some results and as this trajectory continues, the need for borrowing is expected to reduce, while debt service will become an increasingly smaller portion of revenue.”

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


Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020




Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.

The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.

Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.

It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.

Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website:, complete and submit to the Registrar or their respective Banks.

Continue Reading

Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank



Executive Director of Zenith Bank Plc Buys 2 Million Shares of Zenith Bank at N53.6 Million

Executive Director of Zenith Bank Plc, Dennis Olisa, has invested a combined N53.58 million in shares of Zenith Bank.

The leading financial institution stated in a disclosure statement filed with the Nigerian Stock Exchange (NSE) on Monday.

Olisa carried out the purchase in two different transactions on February 24, 2021 at the Nigerian Stock Exchange in Lagos, Nigeria.

He purchased 1 million units of Zenith Bank at N26.60 each and another 1 million shares at N26.50 per share.

On aggregate, Olisa purchased 2 million shares of Zenith Bank at N26.79 per share or N53.58 million. See the details below.

Dennis Olisa was appointed as Zenith Bank’s executive director three years ago.

Prior to his appointment, Mr. Olisa was the Chief Inspector at Zenith Bank Plc and served as its Director from March 3, 2017 until March 16, 2017.

He also served as General Manager and Heads of the Energy Oil & Gas Group at Zenith Bank Plc and served as its Deputy General Manager. He served as Head of Internal Control & Audit Group at Zenith Bank Plc

Continue Reading


Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth



Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

Continue Reading