- FG’s Preference for Borrowing Slashed Savings Bonds by 50% – CBN
The Federal Government of Nigeria’s savings bonds reduced by 50.18 per cent at the end of the 2018 financial year.
According to a report by the Central Bank of Nigeria on its 2018 activities, “a total of N3.59bn was allotted during the review period, indicating a decline of N3.61bn or 50.18 per cent when compared with N7.20bn at the end of December 2017.
“The decrease was attributable to a fewer number of successful bids and FGN’s preference for foreign borrowing in the period under review.
“The new issues were for two and three years and the coupon rate applied ranged from 9.48 to 12.40 per cent and 10.48 to 13.40 for the two and three years, respectively.”
The range of coupon rates in 2017 was higher, between 11.74 to 13.82 per cent and 12.74 to 14.82 for the two and three years respectively.
Consequently, the total value of FGN savings bonds outstanding at the end of December 2018 was N10.75bn.
The CBN stated that there was no new issue of FGN green bond in the review period.
Consequently, it added that the total value outstanding at the end of December 2018 remained at N10.69bn, same as reported in 2017.
The bank said a N100bn seven-year Sukuk was issued and allotted during the review period.
The Sukuk had a rental rate of 15.74 per cent payable semi-annually.
Consequently, the total value of Sukuk outstanding at the end of December 2018 increased to N200bn, representing a 100 per cent increase from N100bn in 2017.
It stated that the Over-the-Counter transactions for Nigerian Treasury bills amounted to N72.122tn, indicating an increase of N11,801.93bn or 19.57 per cent over N60,320.6bn recorded in 2017.
The development was attributable largely to increased transactions by foreign and other institutional investors.
It also stated that during the review period, the OTC transactions in FGN bonds amounted to N11.8tn, indicating an increase of N1.96bn or 19.97 per cent over N9.836tn recorded in 2017.
The trend was traceable to the active participation of investors, both local and foreign.
According to the CBN report, financial market conditions were influenced largely by global economic and political developments in 2018.
On the economic front, the interest rate hikes in the United States indicated that normalisation of monetary policy was more rapid than initially anticipated.
The impact of these rate hikes largely weakened the currency, bond and equity market of emerging economies.
The US-China trade war continues to exert strains on both economic and political grounds, further increasing the uncertainties in the global financial markets.
In view of these developments, reinforced by country-specific factors of tightening financial conditions, higher oil import bills and geo-political tensions, global growth projection was downgraded to 3.7 per cent from an earlier projection of 3.9 per cent.
Prepaid Meter is Free, Buhari Warns DisCos, Agents
President Muhammadu Buhari once again warned Power Distributing Companies (DisCos) and their agents selling prepaid meters to electricity customers against the Federal Government directive that meter is free.
Ahmed Rufai Zakar, the Special Adviser to the President on Infrastructure, who represented Buhari at the FGN/NLC-TUC ad-hoc committee on electricity tariff stakeholders held in Ibadan, Oyo State on Wednesday, said President Buhari understood people’s concerns on issues surrounding electricity and was determined to curb and deal with unscrupulous individuals in the power sector.
He said, “We have made it very clear through the regulators direct order as well as intervention from the Ministry of Power that the meters are to be provided to Nigerians at no cost.
“Even for meters that were paid for, there is the directive from the regulator to the discos that they would need to find a way to reimburse those citizens over time.
“In cases where we find any disco or disco representative selling the meters or exploiting Nigerians to be able to get meters by paying, we would take the full measures of the law.
“The President has mandated that these meters must be free. We have also said that they must come from local manufacturers.
“This would create jobs and revive our industry.”
Nigeria’s Real Estate Sector Shrinks by 8.06% in the Third Quarter -NBS
Economic uncertainty plunged Nigeria’s real estate sector by 8.06 percent in the third quarter of the year, according to the National Bureau of Statistics (NBS).
Nigeria’s statistics office said “In nominal terms, real estate services recorded a growth rate of –8.06 per cent in the third quarter of 2020, indicating a decline of –11.78 per cent points compared to the growth rate at the same period in 2019, and by 9.12 per cent points when compared to the preceding quarter.
“Quarter-on-quarter, the sector growth rate was 18.92 per cent.
“Real GDP growth recorded in the sector in Q3 2020 stood at -13.40 per cent, lower than the growth recorded in third quarter of 2019 by –11.09 per cent points, but higher relative to Q2 2020 by 8.59 per cent points.
“Quarter-on-quarter, the sector grew by 17.15 per cent in the third quarter of 2020.
“It contributed 5.58 per cent to real GDP in Q3, 2020, lower than the 6.21 per cent it recorded in the corresponding quarter of 2019.”
Nigeria’s economy contracted by 2.48 percent in the first nine months following a 6.10 percent and 3.62 percent contraction in the second and third quarters respectively.
Nigeria Requires N400 Billion Annually to Maintain Federal Roads -Senator Bassey
The Chairman of the Senate Committee on road maintenance, Senator Gersome Bassey, on Friday said Nigeria requires about N400 billion annually to maintain federal roads across the country.
The Senator, therefore, described the N38 billion budgeted for road repairs in the 2021 proposed Budget as grossly inadequate. According to him, nothing meaningful could be achieved by the Federal Roads Maintenance Agency (FERMA) with such an amount.
He said, “For the 35 kilometres federal roads in the country to be motorable at all times, the sum of N400bn is required on yearly basis for maintenance.”
Bassey “What the committee submitted to the Appropriation Committee in the 2021 fiscal year is the N38bn proposed for it by the executive which cannot cover up to one quarter of the entire length of deplorable roads in the country.
“Unfortunately, despite having the power of appropriation, we cannot as a committee jerk up the sum since we are not in a position to carry out the estimation of work to be done on each of the specific portion of the road.
“Doing that without proposals to that effect from the executive, may lead to project insertion or padding as often alleged in the media.”
Business2 months ago
Npower News on Permanency for Batch A, B
Business2 months ago
Buhari Budgets N420 Billion for Npower, Other Social Investment Programmes in 2021 Budget
Forex2 months ago
Naira Improves Against Global Counterparts on Black Market
Forex3 months ago
Zenith Bank Joins Other Banks to Cap International Spend Limit at $100/Month
Cryptocurrency3 months ago
Bitcoin Gains 1.67 Percent to $11,050 Per Coin Amid Liquidity Issue
Business3 months ago
FG to Absorb Exited N-power Beneficiaries into New Program
Business3 months ago
FG Approves Stipends for Exited N-Power Beneficiaries
Stock Market3 months ago
Zenith Bank Declares 30 Kobo Interim Dividend for H1 2020