Business
Nigerian Banks To Issue $1.2bn Euro Bonds
Some Nigerian banks have indicated interest in the insuance of Eurobonds worth $1.2 billion in the international financial market during the second half of the current financial year.
The banks putting up this offers, according to reports, are the First Bank of Nigeria Plc (FBN), United Bank for Africa Plc (UBA) and Diamond Bank Plc.
The offers, billed to be complete this financial year would have FBN and UBA raising debt capital to the tune of $500 million each while Diamond would issue $200 million Eurobonds.
Market analysts have attributed the move to the high interest rate regime in the domestic market which is not ideal for financing infrastructure and long term projects, and opportunities for expansion on the continent.
There are also plans by the federal government to raise between N210 billion and N290 billion ($1.33 billion-$1.84 billion) in Sovereign bonds ranging between three and 10 years in the second quarter of this year according to the Debt Management Office (DMO).
DMO also disclosed that it is to auction between N30 and N40 billion worth in five-year and 10-year bonds and in June, would raise between N25 to N35 billion in five-year, seven-year and 10-year paper.
Also, the federal government plans to issue N140.61 billion in treasury bills ranging from three months to one year maturities at its monthly debt auction this week while, the DMO plans to raise N90 billion from debt auction.
Last week, the secured Open Buy Back (OBB) dropped by 14 per cent as against 14.50 per cent stood at. Market analysts attributed the drop to the impact of repaid matured treasury bill. The OBB was 200 basis points up from the Central Bank of Nigeria (CBN) benchmark rate and 400 percentage points above the Standing Deposit Facility (SDF) rate.
Overnight placement nose-dived to 14.50 per cent from 15.25 per cent while call money stood at 16 per cent lower than 15.50 per cent.
Meanwhile the Over-The-Counter Bond market, last week saw investors staking N159.47 billion on 183.34 million units of Federal Government bonds in 1,347 transactions up from N51.93 billion staked on 62.32 million units exchanged in 472 deals during the week ended April 13, 2012.
In volume terms, at the close of market on the last trading day of the week ended April 20, 2012, the most active bond was the 16.39 per cent FGN January 2022, (ninth FGN Bond 2012 Series 1) which recorded 36.33 million units valued at N39.54 billion in 288 trades.
It was followed by the 10 per cent FGN July 2030 (Seventh FGN Bond 2030 Series 3) with a traded volume of 35.39 million units worth N26.69 billion in 292 deals.
A total of 14 out of the 26 available FGN bonds were traded during the review week as against the six traded during the preceding week according to the Nigerian Stock Exchange (NSE) weekly report.
In the Equities Market, the bulls were in charge as most stocks were on the upside thus soaring the aggregate market capitalisation by N323 billion to finish at N6.938 trillion compared to the week’s opening value which stood at N6.615 trillion.
The All Share Index (ASI) also surged by 4.89 per cent to close at 21,756.50 basis points as against its index on board of 20,743.16 basis points.
The NSE-30 Index which tracks the 30 most capitalised companies on the Exchange was also on the upside having risen by 5.08 per cent to close at 995.93 points even as the NSE-Consumer Good Index appreciated by 4.52 per cent to close at 1764.26 points. The NSE Banking Index rose by 9.77 per cent to end at 313.95 points.
Vivian-Peace Nwinaene
Business
NCDMB Hails Tinubu’s Oil Sector Executive Orders
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, has commended President Bola Ahmed Tinubu over the announcement of three Presidential executive orders.
The orders, he said, are aimed at providing incentives in the Nigerian oil and gas industry, encourage new investments in the sector, reduce contracting costs and timelines, as well as promote cost efficiency in local content requirements.
According to a statement from the NCDMB’s Directorate of Corporate Communications and Zonal Coordination, the Executive Orders are the “Oil and Gas Companies (Tax Incentives, Exemption, Remission, ETC) Order 2024”, “Presidential Directive on Local Content Compliance Requirements, 2024 (EO 41)”, and the “Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024 (EO 42)”.
Speaking at the Nigerian Content Tower, headquarters of the NCDMB in Yenagoa, Bayelsa State, the Executive Secretary stated that the policy directives had reinforced the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and codified the Service Level Agreements (SLA), which the NCDMB first introduced in May 2017, to fast-track approvals for the Nigeria LNG Limited Train 7 project, before expanding it to the entire industry after signing a Memorandum of Understanding (MoU) with the Nigerian National Petroleum Company Limited (NNPC Ltd), and five international oil-producing companies in September 2023.
Ogbe clarified that the Presidential Executive Orders did not whittle down the powers of the NCDMB or abrogate the schedule of the NOGICD Act.
He said, rather, the Executive Order 41 mandates the Board to ensure the patronage of local companies with domiciled proven capacities and capabilities to achieve cost competitiveness and project delivery within schedule.
He also noted that Executive Order 42 re-emphasized NCDMB’s obligation to fast-track approval processes as required by the SLA and section 23 of the NOGICD Act, which mandates the Board to review projects’ documentation within 10 days and advise the concerned operating company.
The Board’s helmsman assured that the NCDMB would comply with the terms of the Presidential Executive Orders, insisting that the Board had always been pragmatic with its implementation of the NOGICD Act, and mindful of the cost competitiveness of projects and schedules.
He also stated that the objectives of the Executive Orders and the SLAs were directed to shorten the oil industry’s contracting cycle to six months or less, engender speedy development of new projects, contribute to increased oil production, and improve the national economy.
The Executive Secretary expressed delight that President Tinubu had put his stamp of authority on the noble objectives of the SLAs, and commended him for acknowledging the giant strides recorded in Nigerian Content development.
Particularly, he noted the impressive capacities built by local oil and gas service companies in key areas of the industry and the substantial benefits that had accrued to the Nigerian economy and her citizens through local content implementation.
The NCDMB boss assured that the agency would continue to serve as a business enabler and maintain the recognition conferred by the Presidential Enabling Business Environment Council (PEBEC), which awarded the Board the most efficient agency amongst all Federal Government’s MDAs in 2022, and the PLATINUM rating by the Bureau for Public Service Reforms in recognition of the self-imposed reforms of the Board’s processes.
Ariwera Ibibo-Howells, Yenagoa
Business
Nigeria Opens Land, Air Borders With Niger Republic
President Bola Tinubu has directed the opening of Nigeria’s land and air borders with the Republic of Niger.
He also directed the lifting of other sanctions against the country with immediate effect.
A statement signed by the President’s Special Adviser on Media and Publicity, Ajuri Ngelale, said “President Tinubu has also approved the lifting of financial and economic sanctions against the Republic of Guinea”.
The statement is titled “Nigeria opens land and air borders with Republic of Niger, lifts other sanctions”.
The President’s directive has come just days after the ECOWAS Authority of Heads of State and Government lifted economic and travel sanctions on Niger, Mali, and Guinea at its extraordinary summit on February 24, 2024, in Abuja.
ECOWAS leaders had agreed to lift economic sanctions against the Republic of Niger, Mali, Burkina Faso, and Guinea.
Consequently, the President directed that sanctions imposed on the Republic of Niger be lifted immediately alongside others.
The sanctions are: “Closure of land and air borders between Nigeria and Niger Republic, as well as ECOWAS no-fly zone on all commercial flights to and from Niger Republic.
“Suspension of all commercial and financial transactions between Nigeria and Niger, as well as a freeze of all service transactions, including utility services and electricity to the Niger Republic.
“Freeze of assets of the Republic of Niger in ECOWAS Central Banks and freeze of assets of the Republic of Niger, state enterprises, and parastatals in commercial banks.
“Suspension of Niger from all financial assistance and transactions with all financial institutions, particularly EBID and BOAD.
“Travel bans on government officials and their family members”, the statement read.
Business
FG Targets Standards For Electric, CNG Vehicles
The National Automotive Design and Development Council (NADDC) has announced plans to validate its National Occupational Standards for the conversion and maintenance of electric vehicles and Compressed Natural Gas (CNG)vehicles.
The Director-General of NADDC, Joseph Osanipin, disclosed this during the validation workshop exercise for the draft of the national standards for auto gas vehicles in Nasarawa recently.
He stated that the primary objective of the workshop was to develop a blueprint for skills development and standardised operational procedures in the conversion, calibration, and maintenance of those new automotive energy sources, aligning with the government’s renewed hope agenda.
Osanipin noted that upon approval of the draft by the National Assembly, it would facilitate job creation and reduce greenhouse gas emissions, as ongoing plans include the establishment of more CNG gas stations in Abuja.
He said, “If we achieve what the Federal Government wants us to achieve with autogas, it will reduce the dependency on PMS and diesel and mitigate environmental concerns. It will also create more jobs and wealth for the nation”.
According to Osanipin, the essence of the workshop was to ensure that the input of all relevant stakeholders was captured in the making of this national document.
“This is in line with international best practices. It is expected that the document will come out of this effort at international standards and help to drive the auto sector to global standards”, he added.
He emphasised the significance of the Nigerian Automotive Industry Development Plan 2023 – 2033, relaunched by the Federal Government in 2023, aimed at revitalising the automotive industry and fostering sustainable growth through technological and skills development.
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