Oil Prices Under Pressure as China Considers Russian Crude – OIR 200522
China added some downward pressure to oil prices this week when it clearly signaled its intent to buy more discounted Russian oil. Between China and India, Russia is racing to pivot towards Asia as the EU attempts to ditch its oil. Source Tom Kool of Oilprice Read More
Nigeria, Germany Sign Bilateral Agreement on Job Creation, Others
The Federal Government of Nigeria and the Republic of Germany have signed a bilateral agreement for job creation and achieving the goals of the National Development Plan (NDP) 2021-2015. Source Daily Trust Read More
Age of Scarcity Begins With $1.6 Trillion Hit to World Economy
Russia’s invasion of Ukraine and China’s Covid Zero lockdowns are disrupting supply chains, hammering growth and pushing inflation to forty-year highs. They’re the chief reasons why Bloomberg Economics has lopped $1.6 trillion off its forecast for global GDP in 2022. Source Economic Times Read More
Amid Massive Funding of Govt’s Deficits, CBN Refuses to Publish Annual Reports
In gross contravention of its own laws, the Central Bank of Nigeria (CBN) has repeatedly failed to release its annual reports showing details of its operations and financial obligations. Source Premium Times Read More
Buhari Appoints Anamekwe Nwabuoku to Oversee Accountant General’s Office
His appointment follows the ongoing investigation of Ahmed Idris, Accountant-General of the Federation (AGF) for financial impropriety by the Economic and Financial Crimes Commission (EFCC). Source BusinessDay Read More
Factbox: The Great Rebrand: Western Business Reborn in Russia Under New Names
McDonald’s Corp (MCD.N) is selling its restaurants in Russia to one of its current local licensees, who will reopen the branches under a new name yet to be decided – the most high-profile rebranding so far of companies extricating themselves from Russia. Source Reuters Read More
Subscribers Kick as FG Slams N90.49bn New Tax on Phone Calls
Telecommunication subscribers are kicking against a new Federal Government directive to impose a tax on telephone calls in the nation to fund free healthcare for the vulnerable. Source Punch Read More
Cyber-Attack: Enable Automatic Updates on Anti-Virus Products to Prevent Vulnerabilities, Says NCC
The Nigerian Communications Commission (NCC) says enabling automatic update features for AVAST and AVG anti-virus applications could prevent cyber vulnerabilities. Source TheCable Read More
FCCPC, NDPB Establish Joint Desk to Strengthen Data Protection
The Federal Competition and Consumer Protection (FCCPC) and the Nigerian Data Protection Bureau, NDPB, have established Joint Mutual Enforcement Desk (JED) to strengthen data protection and privacy in Nigeria. Source LeadershipNG Read More
NNPC, Sahara Group Invests USD300m in Gas Carriers to Drive Clean Energy Access in Africa
The Nigerian National Petroleum Company Limited (NNPC) and leading energy and infrastructure conglomerate, Sahara Group today took delivery of two 23,000 CBM Liquefied Petroleum Gas (LPG) vessels at the Hyundai MIPO Shipyard in Ulsan, South Korea, with plans to add 10 vessels in 10 years to enhance Africa’s transition to cleaner fuels.
The new vessels, MT BARUMK and MT SAPET have increased NNPC and Sahara Group’s joint venture investment to over $300million, approaching the JV’s $1billion gas infrastructure commitment by 2026. The fleet previously comprised MT Sahara Gas and MT Africa Gas. All the four vessels were built by Hyundai MIPO Dockyard, a foremost global manufacturer of mid-sized carriers.
WAGL Energy Limited, the JV company between NNPC and Oceanbed (a Sahara Group Company) is driving NNPC’s five-year $1 billion investment plan announced in 2021to accelerate the decade of Gas and Energy transition agenda over the period.
NNPC’s GMD, Melo Kyari disclosed to the delight of guests that an order of three additional new vessels was being finalised, adding, “we have a target of delivering 10 vessels over the next 10 years. The NNPC and our partners stand out with integrity in our energy transition quest and our commitment environmental sustainability is unwavering.”
MT BARUMK and MT SAPET are WAGL and Sahara Group’s injection into the JV. WAGL is shoring up its gas fleet and terminal infrastructure, while Sahara Group continues to make remarkable progress in the construction of over 120,000 metric tonnes of storage facilities in 11 African countries, including Nigeria, Senegal, Ghana, Cote d’Ivoire, Tanzania, and Zambia, among others.
Bearish Turn as Average NT-Bills Yields Expand 3bps WoW to Close at 3.70%
Last week, the Nigerian Treasury Bills (“NT-Bills“) secondary market witnessed mixed sentiments across the curve as investors reacted to the outcome of the last Primary Market Auction (“PMA”). Consequently, the average yield in the local market rose 3bps to close at 3.70% (from 3.67% the previous week).
In more detail, the average yield on the mid and long-tenored instruments advanced 10bps and 2bps W-o-W respectively due to sell-offs on the 29-Sep-22 (+53bps W-o-W), and 26-Jan-23 (+14bps W-o-W) instruments.
This week, the Apex bank is scheduled to roll over maturing bills worth N153.02bn through the NT-Bills PMA across the 91– (₦5.36bn), 182- (₦3.78bn) and 364-Day (₦143.88bn) tenors.
Please see below our PMA expectations:
| TENOR | 91- DAY | 182 – DAY | 364 – DAY |
| Offer Amount(₦bn) | 5,360,000 | 3,780,000 | 143,880,000 |
| Term to maturity | 1.74% | 3.00% | 4.70% |
| Expected Stop Rate Range (%) | 1.70% – 2.00% | 3.00%- 3.60% | 4.65%-5.00% |
We anticipate stronger demand levels in the NT-Bills secondary market given the expected increase in liquidity levels (which stood at –₦100.5bn short as of Friday, 20-May-22), boosted by maturing NT-Bills worth ₦153.0bn. Thus, we advise investors to trade on relatively attractive maturities across the curve and look out for available commercial paper and other corporate issues on offer.
Please see indicative secondary market NT-Bills rates below:
| Maturity | Tenor (Days) | Gross Rate (%) p.a. | Yield (%) p.a. |
| 30-Jun-22 | 38 | 4.00 | 4.02 |
| 11-Aug-22 | 80 | 4.90 | 4.95 |
| 25-Aug-22 | 94 | 5.60 | 5.68 |
| 8-Sep-22 | 108 | 5.96 | 6.07 |
| 10-Nov-22 | 171 | 5.83 | 5.99 |
FGN Bonds Update: Bullish Performance as Average Yield Declines 10bps W-o-W to 11.15%
Last week, the FGN bonds secondary market furthered its bullish run into another week on the back of lost PMA bids and as market players continued to take position in relatively attractive offers across the curve.
The average yield across all tenors declined by 10bps W-o-W to settle at 11.15% from 11.25% the previous week, with the medium-term maturities enjoying the most demand. Particularly, the 26-Apr-29, 22-May-29 and 20-Nov-29 maturities witnessed the most buying interest, declining 37bps, 37bps and 34bps W-o-W respectively.
Last week, the Debt Management Office (“DMO”) conducted a PMA on Monday, offering a total of N225.0bn across the re-opened bonds.This week, we expect improved activity in the secondary market as unmet primary market bids continue to trickle into the secondary market and investors look to invest in relatively attractive offers in the market. Thus, we advise investors to take position in maturities across all offers with yields that have advanced on the week in the secondary market and remain alert for fundamentally sound corporate primary issues.
MTN, Airtel’s jostle for 40m unbanked Nigerians intensifies
Making choices between two similar things can be really tough at times. Like British author J. K. Rowling said, “it is our choices that show what we truly are, far more than our abilities.” This is the dilemma investors and subscribers find themselves in as Nigeria’s telecommunication giants, MTN and Airtel apply numerous approaches to reward loyal customers while also attracting new customers by offering them mouth-watering promotional deals and offers.
From the very beginning, both companies have contended toe to toe for revenue, for-profit and for a customer base, rivalling at the peak of Nigeria’s telecom space
Imports, Customs revenue seen dropping on food crisis
The volume of imported commodities into Nigerian ports will decline by 35 percent in the second half of the year following the inability to export commodities from Ukraine and Russia due to the blockade of the Ukrainian Port by Russian troops and the European Union’s ban on Russian vessels, analysts have said. Consequently, many Nigerian manufacturing companies, particularly the producers of Fast Moving Consumer Goods that rely on wheat to make flour and chemicals for production, would find it difficult to source raw materials.
According to analysts, the development would further heighten inflation and food pricing as importers and manufacturers would be forced to pay more for wheat, chemicals, and other critical inputs.The development, analysts say, will result in a decline in Customs revenue as the volume of bulk carriers coming into the country drops while many Customs Licensed Agents, who depend on clearing and forwarding business to earn a living, would be out of a job.
Nigeria’s economy expands 3.11% in Q1 2022
Nigeria’s Gross Domestic Product (GDP) grew by 3.11% (year-on-year) in real terms in the first quarter of 2022, despite a sharp contraction in the oil sector. The oil sector contracted by 26.04% (year-on-year) in Q1 2022 indicating a decrease of 23.83% points relative to the rate recorded in the corresponding
There will be no food crisis in Africa, says AfDB’s President
Contrary to the fears that the impact of the Russian –Ukraine war could trigger a food crisis in Africa in 2022, Adewumi Adesina, president of the African Development Bank has said Africans will not go hungry for a lack of food to buy. Adesina who spoke at a pre-opening media briefing of the AfDB Annual Meeting…
Analysts see CBN holding rates ahead of crunch meeting
Ahead of the Monetary Policy Committee (MPC) meeting, starting today, analysts have said the Central Bank of Nigeria (CBN) will keep interest rates unchanged despite growing pressure brought on by the tightening of monetary policy by global central banks.
ExxonMobil asset sale setback mirrors Chevron’s in 2017
The federal government’s decision to halt the $1.3bn planned deal between Seplat Energy Plc and US-based ExxonMobil bears a resemblance to what it did to the 2017 farm-out agreement between Chevron and Transnational Energy Limited.
Nigeria’s Real GDP Grows by 3.11% in Q1 2022
Overview of GDP in Quarter One 2022
Nigeria’s Gross Domestic Product (GDP) grew by 3.11% (year-on-year) in real terms in the first quarter of 2022, showing a sustained positive growth for the sixth consecutive quarter since the recession witnessed in 2020 when negative growth rates were recorded in quarter two and three of 2020. The first quarter 2022 growth rate further represents an improvement in economic performance. The observed trend since Q4 2020 is an indication of a gradual economic stability. The Q1 2022 growth rate was higher than the 0.51% growth rate recorded in Q1 2021 by 2.60% points and lower than 3.98% recorded in Q4 2021 by 0.88% points. Nevertheless, quarter-on-quarter, real GDP grew at -14.66% in Q1 2022 compared to Q4 2021, reflecting a lower economic activity than the preceding quarter.
