Banking and Finance

Nigeria central bank devalues official FX rate by 15% after trade with local bank –traders

The Nigerian central bank devalued the official currency rate by 15% on Friday, in a move to converge a multiple exchange rate regime which it has used to manage pressure on the naira, traders said according to Reuters.

The currency in Nigeria, which is Africa’s biggest economy and relies on crude sales for 90% of foreign exchange earnings, has come under pressure after oil prices plunged following a disagreement between Russia and Saudi Arabia over a deeper production cut. The coronavirus outbreak has also hit global demand for oil.

Nigeria to delay non-critical spending, defer Eurobond sale -finmin

Nigeria will postpone all non-critical government spending and wait for better market conditions for a planned $3.3 billion eurobond offering due to the turmoil caused by the coronavirus pandemic, the finance minister said on Monday.

Minister Zainab Ahmed told journalists in Abuja that Africa’s largest economy will prioritize “major capital expenditures,” Reuters reports.

“Any expenditures that are not critical we must defer to do it at a later time when things become more normal,” she said.

COVID-19: CBN reduces interest rates, rolls out other interventions

The Central Bank of Nigeria (CBN) has announced reduction of interest rates in all its intervention facilities from nine percent to five percent per annum for one year to ameliorate the effect of coronavirus pandemic on the nation’s economy.

The CBN Governor, Mr Godwin Emefiele who made this known while addressing newsmen in Abuja on Monday said the reduction of the interest rates took effect from March 1.

He disclosed that the bank had also extended moratorium of all CBN intervention facilities on all principal repayment for one year effective from March 1.

Sovereign wealth, pension funds should be invested in Africa –AfDB

The President of African Development Bank (AfDB), Dr Akinwumi Adesina, calls for a sovereign wealth funds and pension funds of Africa to be invested in the continent, not elsewhere.

The bank’s Communications and External Relations Department in a statement said Adesina stated this at the inauguration of the first report on the implementation of Agenda 2063 ahead of the 33rd African Union Summit in Addis Ababa.

SEC, DFID collaborate on financial technology development

The Securities and Exchange Commission (SEC) says it will partner with the Department for International Development (DFID) to develop the financial technology (fintech) space in the country.

The Head, Corporate Communication, SEC, Mrs Efe Ebelo, said this in a statement in Abuja.

Ebelo said that the partnership agreement was reached when officials of DFID visited the Acting Director-General of the commission, Ms Mary Uduk in Abuja.

Forex: CBN injects $218.41m, CNY 18m into retail secondary market

The Central Bank of Nigeria (CBN) has injected the sum of 218.41 million dollars into the retail Secondary Market Intervention Sales (SMIS).

 

The bank’s Director, Corporate Communications Department, Mr Isaac Okorafor made this known in a statement in Abuja yesterday, the News Agency of Nigeria reports.

 

Okorafor said 18 million Yuan was also injected in the spot and short-tenored forward segment of the inter-bank foreign exchange market.

 

He said the development was in continuation of the CBN intervention in the inter-bank foreign exchange market.

2019 Budget Implementation: Beyond the Miracle of FG’s Special Accounts

In the light of recently released data by the CBN (Q4:2019 quarterly report), we turn our attention to the fiscal performance of Nigeria in 2019. While we note that the data provided by CBN are provisional, history shows that actual numbers do not significantly deviate from the Bank’s estimates. The CBN’s report shows that federally collected revenues, which is shared among the FG, States and Local governments, rose 7.3% y/y to ₦10.2tn in 2019.  While this represents only a marginal boost on the surface, there is noticeable progress when revenue is deconstructed.

CPI Report: Headline Inflation Reaches 20-Month High of 12.0%

Nigeria’s latest Consumer Price Index (CPI) data revealed a rise in headline inflation rate to a 20-month high of 12.0% y/y in December 2019 from 11.9% in the prior month. This means average monthly inflation rate was 11.4% in 2019, below our revised estimate of 11.5% and amoderation from 12.2% in 2018.

Economic Review: 2019 In Retrospect

In 2019, world economies went through an upheaval. Some went from their lowest productive levels while others suffered a case of near economic meltdown.

There was a huge embrace of digital technology in the financial market as well as a high rate of youth participation in political and economic revival.

These are the some of the notable points of that year.

MONETARY POLICY RATE (MPR)

Nigeria’s monthly revenue drops by ₦387.15b

The Nigerian government’s revenue shortfall continues to pose a major challenge as monthly collected revenue dropped by N387.15 billion in November. This is disclosed in the latest Economic Report released by the Central Bank of Nigeria (CBN).

CBN in its latest economic report stated that the Federal Government collected N858.92 revenue in November, as against the monthly budget estimate of N1.24 trillion. This means federally collected revenue fell short of the monthly budget estimate by N387.15 billion (31.1% shortfall).

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