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Headlines

Vaccine production seen helping Nigeria beyond COVID

Nigeria’s bid to establish its own COVID-19 vaccine production plant could serve as a catalyst to research and produce vaccines for other endemic diseases beyond the current needs of the pandemic, analysts have said.

Overnight rate shoots up on FX, bond auction, CRR debit

Overnight interbank rate, the interest rate that banks charge each other for overnight lending, increased to 14 percent on Friday from 0.5 percent the previous day, due to effect of foreign exchange (FX), bond auction and Cash Reserve Ratio (CRR) debi

Fuel subsidy keeps Nigeria sinking

A week ago today, President Buhari wrote to the Senate, seeking the approval of a supplementary budget of ₦2.557 trillion. According to the President, the amendment is meant to provide for subsidies on petroleum products from June to December this year.

COREN’s concern over unskilled Nigerian engineering graduates

The Council for the Regulation of Engineering in Nigeria (COREN) recently expressed its worries about the quality of engineering graduates in the country. In the process, the Council tasked academic staff on outcome-based teaching of Nigerian engineering programmes in the nation’s universities.

Nigerian banks boost private sector loans to escape low asset yields

Credit to the private sector is a top option for Nigerian banks as they seek to diversify their sources of income away from Treasury Bills (T-Bills) amid low yields, BusinessDay findings show. Banks’ credit to the private sector increased by 5.3 percent in the fourth quarter of 2021 as against the 1.4 percent reported

Buhari still scrutinising electoral amendment bill – Presidency

President Muhammadu Buhari is still reviewing the recently passed Electoral Amendment Bill with his legal team, eight days to the 30 days’ window allowed under the constitution for him to sign the bill into law, the Presidency said on Monday. The bill which was passed recently was sent to the President for his assent

Oil surges near $100 but Nigeria is not at the party

Oil and gas prices are climbing on fears that the Ukraine-Russia crisis will disrupt supplies across the world but Nigeria and its economy remain un-impacted, thanks to years of poor spending. The price of Brent crude, an international benchmark, reached a seven-year high of $99.38 a barrel on Tuesday

Airfare hike: Why we did not increase fares – Green Africa

Green Africa, one of Nigeria’s domestic carriers, has said its quest to remain a value carrier, serving the Nigerian market has kept it from not increasing its base fare as other airlines. Few days ago, almost all domestic airlines operating in Nigeria increased the cost of economy flight tickets for domestic routes

Investors Gain N6.99bn as NGXASI Inches Up Marginally by 0.03%; Maintains Positive Posture

Equities market closed on a positive note, as NGXASI appreciated by +0.03% to close at 47,246.90 basis points as against +0.20% appreciation recorded previously. Its Year-to-Date (YTD) return currently stands at +10.61%.       

Market breadth closed positive as NIGERINS led 29 Gainers as against 18 Losers topped by ELLAHLAKES at the end of today’s session an improved performance when compared with previous outlook.         

Market turnover closed positive as volume moved up by +0.09% as against -0.76%  downtick recorded in the previous session. UBCAP, TRANSCORP and ZENITHBANK were the most active to boost market turnover.  ZENITHBANK and UBCAP topped market value list.

CAPHOTEL leads the list of active stocks that recorded impressive volume spike at the end of today’s session.

Ahead of Next T-Bills Auction Scheduled for 23rd Feb 2022

Offer Summary

The Central Bank of Nigeria (CBN) will hold a Treasury Bills (T-Bills) Primary Market Auction (PMA) on the 23rd of February 2022. At the PMA, existing T-Bills totaling NGN115.28bn (NGN2.04bn, NGN22.86bn, and NGN90.38bn across the 91-day, 182- day, and 364-day instruments, respectively), will mature and be rolled over.

 Outlook on Yields

At the last PMA, the stop rates on the 91-day and 182-day instruments were unchanged at 2.48% and 3.30% respectively. However, the rate on the 364-day instrument declined to 5.20% from 5.24% at the previous auction. With system liquidity at a robust level, the auction was met with strong investor demand. Thus, overall subscription was 4.55x amount offered (vs. 3.68x at the previous auction). Furthermore, there was only a marginal change in the overall bid to cover ratio (at 1.98x from 2.13x), explained by lower amount offered (NGN98.01bn vs. NGN129.33bn at the penultimate auction). Altogether, we think the high level of participation supported by high liquidity continues to give impetus to the Government to lower rates. 

In the coming auction, we expect stop rates across the 91-Day and 182-Day instruments to remain unchanged. However, we expect the rate on the 364-Day instrument to decline further. In our opinion, the Government will continue to strive to manage its debt costs despite its funding needs. In addition, the OMO maturities and coupon payments might also filter into the NTB auction, further enhancing system liquidity and exerting downward pressure on stop rates. Supporting our view, so far this year, the Government has raised more than the amount offered at PMAs (total of NGN506.26bn as against offer size of NGN304.96bn).

 Meanwhile, in the secondary market, average Treasury Bills yields declined from 4.24% (as of February 09, 2022 at the last auction) to 4.17% (as at February 21st, 2022) owing to high demand in the secondary market to fulfill unmet needs at the PMA. In the near term, we expect the high liquidity in the system to drive a higher demand in the secondary market. Thus, we expect the current bullish mood to persist, further anchored on our expectation of a moderation in PMA rates.

 In view of the above, our rate guidance is informed by the need to strike a balance between the goals of maximizing investment returns and having a successful bid. Thus, the recommended stop rates for the respective instruments are as follows:

Sterling Bank Plc Declares N12.9bn PAT in Q4 2021 Unaudited Results,(SP:N1.65k)

STERLING Bank Plc released its Q4 2021 Unaudited results for the period ended December 31st, 2021.

Key Highlights

  • Interest Income grew by 0.04% from N111.452bn to N111.501bn
  • Profit before tax stood at N13.98bn
  • Profit after tax stood at N12.90bn
  • Share Price Currently Stands at N1.65k

                  12months UNAUDITED REPORT FOR PERIOD ENDED 31 DEC

 2021 N’m2020 N’m% Change
 DECDEC 
Interest Income111,501111,4520.04%
PBT13,97612,37213.0%
Taxation(1,080)(1,130)-4.4%
PAT12,89611,24214.7%
Basic EPS(k)453915.4%

            BALANCE SHEET INFORMATION

Net Asset137,226135,7531.1%

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First Ideas Limited is an investment and financial advisory company established in 1994 to provide advisory services to high net worth individuals, trust funds, financial institutions and medium sized companies in growth sectors.

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