Business

CBN sells another N1.58 trillion in Treasury Bills, interest rate at 19% for 364-day bill

Published

10 months ago

February 23, 2024

CBN sells another N1.58 trillion in Treasury Bills, interest rate at 19% for 364-day bill

The Central Bank of Nigeria (CBN) has sold an impressive N1.58 trillion in its latest Treasury Bills auction as the apex bank continues its ongoing effort to manage liquidity in the financial system.

The auction, held on the 21st of February, attracted substantial interest from investors, with the CBN setting stop rates as high as 19%.

The auction was broken down into three categories based on tenors: 91-day, 182-day, and 364-day bills.

The apex bank offered N11.96 trillion in 91-day bills, with a stop rate of 17.00%, which was a significant attraction for short-term investors.

The 182-day bills saw N10.21 trillion on offer at a 17.50% stop rate, while the 364-day bills had the highest rate at 19.00% on a N243.32 trillion offer.

Allotments

Subscription levels were robust across all tenors, reflecting heightened investor appetite amidst the current economic landscape.

The 91-day bills received a subscription of N368.03 billion, far exceeding the offer amount, which resulted in an allotment ratio of 27.7x with N331 billion allotted.
This indicates that for every unit offered, there were almost 28 units requested – a clear sign of the high demand for short-term government securities.

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The 182-day bills had a subscription of N98.69 billion, with an allotment ratio of 6.5x, while the 364-day bills witnessed a whopping N1.77 trillion subscription, leading to an allotment ratio of 4.9x.
A total of N66.2 billion and N1.19 billion were allotted for the 182-day and 364-day bills respectively.

Bids ranged from 11.4400% to 21.0000% for the 91-day bills, 13.0000% to 20.3399% for the 182-day bills, and 15.0000% to 26.0000% for the 364-day bills.

These ranges show the variability of investor expectations regarding yield, with some investors willing to accept lower rates, while others aimed for the higher end of the spectrum.

A total of N2.5 trillion sold in two weeks

This recent Treasury Bills auction mirrors the outcomes of the last auction where a total of N1 trillion was on offer but was oversubscribed as investors staked a whopping N2.3 trillion. The one-year bill also attracted a 19% interest rate.

The CBN has now sold about N2.5 trillion in the last two weeks sucking out over N2.1 trillion in 364-day auctions likely to cost the apex bank around N398 billion in interest payments.
The CBN’s strategy to tighten liquidity through these auctions is consistent with its monetary policy stance aimed at curbing inflation and stabilizing the currency.
The increased interest rates on Treasury Bills are likely to influence borrowing costs across the economy.

The CBN’s moves are critical amidst the current global economic uncertainties, and their implications are sure to be a point of discussion in financial circles in the coming weeks.

CBN sells another N1.58 trillion in Treasury Bills, interest rate at 19% for 364-day bill

Railway

Lagos Rail Mass Transit part of FG free train ride – NRC

Published

9 hours ago

December 21, 2024

Trends Admin

Lagos Rail Mass Transit part of FG free train ride – NRC

The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.

The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).

This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.

While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.

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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.

“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.

Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.

He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.

Lagos Rail Mass Transit part of FG free train ride – NRC

Business

NNPC denies claim of Port Harcourt refinery shutdown

Published

10 hours ago

December 21, 2024

Trends Admin

Port Harcourt refinery

NNPC denies claim of Port Harcourt refinery shutdown

The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.

The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.

Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.

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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.

“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”

He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”

NNPC denies claim of Port Harcourt refinery shutdown

Business

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

Published

2 days ago

December 20, 2024

Trends Admin

CBN Governor, Olayemi Cardoso

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).

This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.

The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.

The arrangement will be in effect from December 19, 2024, to January 30, 2025.

Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.

Transactions to occur at the prevailing NFEM rate

The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.

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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.

The circular read in part:

“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).

This window will be open between December 19, 2024 to January 30, 2025.

“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”

The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”

These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.

This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.