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CBN to Roll Over N33.8bn Treasury Bills

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FG Borrows
  • CBN to Roll Over N33.8bn Treasury Bills

The Central Bank of Nigeria is scheduled to roll over maturing bills worth N33.8bn through a primary market auction across the 91- (N3.4bn), 182- (N16.9bn) and 364-day (N13.5bn) tenors this week.

The CBN resumed its liquidity mop-up last week, offering a total of N570bn in three Open Market Operation auctions, with a total bid-to-cover ratio of 2.0x, 0.6x and 2.0x on the short-, medium- and long-term offerings. Thus, most demand was witnessed on the long-term bills despite rate moderations.

At the first auction on Monday last week, N300bn was offered across 108-, 199- and 353-day tenors with a total bid-to-cover ratio of 1.4x, while on Tuesday, N130bn was auctioned across the 93-, 205- and 331-day tenors and with a total bid-to-cover ratio of 1.3x.

At Thursday’s auction, a total sum of N140bn was offered across 91-, 175- and 336-day tenors, respectively, which recorded (2.3x) over-subscription on long-term bills while the short- and medium-term were under-subscribed by 2.0x and 1.0x, respectively.

Overall, the stop rates declined consecutively at each auction last week due to the high level of demand.

Last week, activities in the Treasury bills secondary market sustained a bullish trend on the back of bolstered system liquidity from the Federation Account Allocation Committee’s injections at the start of the week, as well as increased demand from offshore investors towards the end of the week.

Thus, the average yield contracted to settle at 12.9 per cent week-on-week, moving 21 basis points southward. Demand was largely witnessed in the medium- and long-term bills, causing yields to drop by 30bps week-on-week a piece.

On the flip side, the short-term bills advanced by 26bps week-on-week as sell-offs were experienced, especially on the 6-Jun-19 and 13-Jun-19 bills.

Analysts at Afrinvest Securities Limited said going into this week, a boost in system liquidity was expected on the back of T-bills and OMO maturities worth N33.8bn and N107.1bn, respectively.

They said, “In addition, the nomination of the CBN Governor, Mr Godwin Emefiele, will be positive for the fixed income market as we expect continued foreign exchange stability at current levels in the short to medium-term as well as guarantees the naira-settled OTC FX Futures will be sustained.

“Consequently, this will attract more foreign portfolio investors into the fixed income market, which may result in a further moderation in yields. We also anticipate that the CBN will continue its excess liquidity mop-ups via OMO auctions, which may relax yields across the curve.”

The bond market sustained its bullish outlook as average yield trended 20bps southward to settle at 14.1 per cent week-on-week as the medium- and long-term instruments enjoyed significant buying interests.

Consequently, high demand was witnessed on the 27-Apr-23 and 18-Jul-34, respectively.

Afrinvest analysts said the continued improvement in the bond market was anticipated as investors took a position on instruments with attractive yields.

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.

Banking Sector

Sterling Bank Approves Audited Financial Statements for 2020

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Sterling Bank

Board of Sterling Bank Approves 2020 Audited Financial Statements

The Board of Sterling Bank Plc said it has approved the audited financial statements for the year ended 31, December 2020.

The lender said the approval was done at a meeting held on 23rd February 2021.

Details of the financial statements will be released upon approval of the Central Bank of Nigeria (CBN), Sterling Bank stated in a statement filed with the Nigerian Stock Exchange on Thursday.

It said “We are pleased to inform our shareholders and other stakeholders that the Board of Sterling Bank Plc at its meeting of 23rd February 2021 approved the audited Financial Statements for the year ended 31st December 2020 subject to the approval of the Central Bank of Nigeria (CBN).

“Kindly note that details of the Financial Statements will be communicated to you upon approval of same by the CBN.

“Consequently, the closed period for trading in the shares of the Bank by its insiders which commenced from 8th February, 2021 will continue until 24 hours after the Audited Financial Statements for the year ended 31st December, 2020 are released on the floor of the Nigerian Stock Exchange.”

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Banking Sector

CIBN, NIBSS Introduce e-Payment Certification Programmes

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NIBSS

CIBN, NIBSS Introduce e-Payment Certification Programmes

The Chartered Institute of Bankers of Nigeria (CIBN) in collaboration with Nigerian Interbank Settlement Systems Plc (NIBSS) have introduced professional certification programmes on electronic payments for financial service providers and institutions.

Both organisations disclosed that the programme was designed to enhance the electronic payment skills and knowledge of financial practitioners in order to equip them with efficient tools and information required to upscale innovation and services.

Speaking to journalists at a media briefing in Lagos, yesterday, the Chief Executive Officer, Chartered Institute of Bankers of Nigeria, Mr. Seye Awojobi, said the initiative is an international programme, well grounded in the local realities of the Nigerian e-payment industry and captures the current dynamics, as well as aspects of digital financial services practices.

“This programme would set the standards for e-payment expertise in Nigeria; foster a category of high performing professionals in the industry and build a resilient, safe and secured payment technology driven platform.

“The curriculum for the programme adequately covers recent methods required, which are in line with global practices.

“The introduction of the scheme cannot be more timely than now considering the COVID-19 pandemic, which created serious disruptions in our professional and personal lives,” he added.

On his part, Chief Executive Officer, Nigerian Inter-Bank Settlement Systems Plc, Premier Oiwoh explained that the introduction of the programme would determine the capacity and work experience criteria required to recognise beginners, intermediate and advanced.

“It would create a growth roadmap for fledging e-payment workers, including the unemployed who has the desire to make a career in the electronic sector.

“Also, it would enable us continue to tackle the issue of insecurity within the financial technology payment and banking space,” he added.

The institutions also noted that in order to maintain a certification credential, the practitioners must earn some recertification credits over a three year span and valid for three years after it has been issued.

The CIBN last week has reintroduced its mentoring scheme. The initiatives aims at up-scaling the leadership capacity and productivity of workers within the financial and banking sector.

Speaking during the virtual forum, Director General, Securities and Exchange Commission, Lamido Yuguda, had explained that mentoring schemes are essential for the sustenance and development of the sector as it is built upon values such as trust and professionalism.

“These values can be taught. But are reinforced when practiced by the senior co-workers and emulated by junior colleagues. Such initiatives enable workers to avoid being distracted by the material, prestigious and monetary incentives the space presents.

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Finance

Stanbic IBTC Offers Low-Interest Agric Loans

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Stanbic IBTC Bank

Stanbic IBTC Offers Low-Interest Agric Loans

Stanbic IBTC Bank Plc has reaffirmed its commitment to the growth of Nigeria’s agriculture sector by supporting farmers and other players in the agricultural value chain.

As the demands on agribusinesses change seasonally, the financial institution provides financing solutions for agricultural enterprises to suit their requirements.

A statement explained that the needs range from availability of resources, to farming equipment, as well as enhancement of seasonal cashflow, amongst others.

Stanbic IBTC Bank offers various low-interest credit facilities across the agricultural sector that will help clients to cushion the impacts of the Covid-19 pandemic.

Speaking on this, Head, Agribusiness, Stanbic IBTC Bank, Wole Oshin, said the agribusiness financial solution was geared towards ensuring that players in the agriculture space are not hindered by lack of finance.

He said: “The bank’s suite of agribusiness solutions minimises risks, ensures maximum control and optimises profits associated with international trade by making transactions smoother, simpler and safer for all parties involved.

“Some benefits of the Stanbic IBTC Agribusiness Finance include: availability of gap-funding for unforeseen financial needs, maintenance of cash flow and flexibility of repayment terms based on the type of funding. This facility is also versatile and can be utilised for funding resources, vehicles and farming equipment.”

Oshin noted that agricultural enterprises could access overdraft to finance their short-term cash flow and working capital needs.

“With quick and flexible processes, funds are available when needed and interest is paid only on funds utilised, not on the full amount on which the limit is set,” he added.

He further reiterated that the asset finance solution could aid in the financing of all farming vehicle and implement needs, with a wide range of packages to suit business’ cash flow and tax requirements.

“Vehicles and assets such as tractors, harvesters, irrigation equipment and so on, to enhance production,” he said.

Other available facilities are Business Revolving Credit Loan, Agricultural Production Loan and Medium-Term Finance.

These are suitable for grain farmers, individual farmers, groups and entities in the agricultural sector. Our loans are designed to accommodate the purchase of various agricultural inputs (like seeds, fertilizers etc), livestock, agriculture-related products and asset acquisition.

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