Cost Of Funds To Fall As N1.1tr Boost Interbank Market
Cost of funds is expected to fall this week in the interbank money market in response to inflow of N1.05 trillion from maturing treasury bills (TBs).
Last week, cost of funds rose sharply above 20 percent following aggressive liquidity mop up by the Central Bank of Nigeria (CBN) in response to liquidity inflow of N1.47 trillion.
The liquidity inflow comprised statutory allocation funds of N788.14 billion and N684.84 billion from matured TBs.
To mop up the huge liquidity injection, the CBN conducted Open Market Operations (OMO) from Monday to Thursday where it offered N1.6 trillion OMO TBs.
The offers were however undersubscribed with total public subscription at N935.3 billion while the CBN sold N932.7 billion.
As a result short term interest rate rose sharply by over 800 basis points (bpts).
Data from the FMDQ showed that interest rate on Collateralised (Open Buy Back, OBB) lending rose by 776 btpts to 24.33 percent on Friday from 16.57 percent the previous week.
Similarly, interest rate on Overnight lending rose by 872 bpts to 26.08 percent last week Friday from 17.36 percent the previous week. Analysts at Lagos based Cowry Assets Management Limited and Afrinvest Limited projected that the expected inflow of N1.05 trillion billion will lead to downward moderation in cost of funds this week. “In the coming week, OMO of N498.7 billion and T-bills of N551.4 billion maturities are expected to hit the system and as a result, we believe the CBN will sustain the bout of mop ups.
Nevertheless, we expect subscription rates to continue to lag as investors take advantage of more attractive rates at the secondary market. We also anticipate that money market rates will remain within a single digit band”, said Afrinvest analysts.
Meanwhile the naira depreciated to its lowest level this year in the Investors and Exporters (I&E) window due to increased foreign exchange demand by foreign investors.
Data from FMDQ showed that the indicative exchange rate for the window rose to N365.33 per dollar on Friday, the highest level this year, from N364.1 per dollar the previous week.
Furthermore, the volume of dollars traded in the window (turnover) dropped by 15 percent to $1.3 billion last week from $1.4 billion the previous week. Meanwhile the I&E window recorded inflow of $1.98 billion in November, the lowest since August 2017.
This according to analysts at FSDH Merchant Bank indicates foreign investors’ careful approach to investing in Nigeria.
However, the naira appreciated by N6 in the parallel market where the exchange rate dropped to N363 per dollar on Friday from N369 per dollar the previous week, reflecting the impact of the $15,000 additional weekly sale to each bureaux de change (BDC) by the CBN, which commenced last week. Banks’ current account deposits rise by 4.94% in Oct In another development, the CBN revealed that banks current account deposits (demand deposits) rose by 4.94 percent to N9.2 trillion in November.
The apex bank disclosed this in its Depository Corporation survey released last week. The report showed that Broad Money rose by 1.73 percent m-o-m to N25.71 trillion in October 2018.
This resulted from a 6.10 percent m-o-m increase in Net Domestic Assets (NDA) to N16.38 trillion which offset a 0.43 percent m-o-m decrease in Net Foreign Assets (NFA) to N18.74 trillion.
On domestic asset creation, the increase in NDA resulted from an increase of 2.55 percent in Net Domestic Credit (NDC) to N26.63 trillion which was accompanied by 2.67 percent m-o-m fall in Other Liabilities (net) to N10.25 trillion.
Further breakdown of the NDC showed a 14.60 percent m-o-m rise in credit to the government to N3.90 trillion as well as an increase of 0.70 percent in credit to the private sector to N22.72 trillion.
On the liabilities side, 1.73 percent m-o-m rise in Broad Money supply was driven by 4.20 percent m-o-m growth in Narrow Money to N11.13 trillion as Demand Deposits which rose by 4.94 percent to N9.52 trillion was accompanied by a 0.01 percent rise in currency outside banks to N1.61 trillion.
However, Quasi Money (near maturing short term financial instruments) fell by 0.08 percent m-o-m to N14.58 trillion. Reserve Money (Base Money) increased m-o-m by 7.74 percent to N7.33 trillion as bank reserves and Currency in circulation rose m-o-m by 10.97 percent and 1.54 percent to N5.02 trillion and N1.96 trillion respectively.Read More
Man Catches Wife With Female Lover, Beats Her To Stupor
Residents of Ekotedo area of Ibadan metropolis were reportedly woken up from sleep by the distress cry of a middle-aged woman, Martha, being beaten by her husband, who allegedly caught her with her female lover in a hotel.
It was gathered that the couple, who is based in Benin City, Edo State, were reportedly invited to Ibadan by her step-father for a discussion over a misunderstanding between them, which was amicably settled.
A source disclosed that after the intervention of the step-father, the woman was said to have lodged at a hotel for the night because her husband had other engagements in town.
However, trouble started when the husband, Dickson, who had checked on her early in the morning, allegedly caught her in the act of lesbianism.
Angry Dickson reportedly pounced on his wife and beat her to stupor. It was the noise of the woman that woke up the people in the area, who expressed surprise when they got the hint of what led to the scuffle.
The battered woman, who denied the allegation, reportedly went to Iddo Police Station to lodge complaints before going to a nearby private hospital for treatment.Read More
N800bn Subsidy Debts: DAPPMA Insists On Strike To Stop Fuel Loading
There are indications that fuel distribution will be destabilised as the Depot and Petroleum Products Marketing Association, DAPPMA, Sunday, insisted on embarking on strike to distrupt lifting from depots nationwide.
But oil workers, under the aegis of Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN and Nigerian Union of Petroleum and Natural Gas Workers, NUPENG, Sunday, warned their members against participating in the strike.
DAPPMA in a statement signed by its Executive Secretary, Mr Olufemi Adewole, said: “We don’t have any written agreement based on recent discussions. It is only when we have a written agreement that it will be possible for us to present to owners of depots to convince them to postpone the planned strike.
“As a union, there is nothing that we can do. But if we have a written agreement from the Ministry of Finance, which we have been discussing with in order to pay depot owners, then we will discuss with the owners in order to call off or postpone the strike.”
The statement read: “We refer to the press release from the Federal Ministry of Finance on December 6 following the meeting with marketers under the aegis of Major Oil Marketers Association of Nigeria, MOMAN, and DAPPMA, and Independent Petroleum Marketers Association of Nigeria, IPMAN, stating that the marketers had agreed to resume operations.
“We did not sign the purported document with government as claimed. We still stand by our ultimatum.
“DAPPMAN reiterates that there was no agreement reached because offers by government failed to meet the legitimate demands of the association and we did not sign the purported document. Hence, our ultimatum stands as we cannot continue to borrow from banks to pay staff salaries.”
Meanwhile, oil workers in the country, under the aegis of PENGASSAN and NUPENG, yesterday, waded into the ongoing disagreement between the Federal Government and oil marketers over the outstanding fuel subsidy claims and called for a speedy resolution of the issue before it plunges the country into another round of crisis. Addressing newsmen after meeting with officials of Nigerian National Petroleum Corporation, NNPC and its subsidiary, Petroleum Products Marketing Company, PPMC, as well as Major Oil Marketers Association of Nigeria, MOMAN and Depot and Petroleum Products Marketing Association, DAPPMA, the oil workers also assured that their interests were aligned with Nigerians.
Speaking in the same vein, National President of NUPENG, Comrade William Akporeha, said: “This regime of NUPENG believes in dialogue. Until we are pushed to the wall, we do not take strike as the first option.
‘’So far, between now and December ending, I can assure Nigerians that there won’t be shortage of petroleum products in our streets.
“We agreed that the oil marketers have legitimate claims and demands. However, we are also happy to say that the Federal Government is at this moment engaging them on how to resolve all the issues at stake.”Read More
Gabon’s President Ali Bongo, out of the country since falling ill in October, suffered a stroke, his vice president said, providing the first official details of his illness.
The 59-year-old leader left hospital in Morocco earlier this month and is recovering at a private residence in the capital Rabat after weeks of silence about his condition.
Vice President Pierre Claver Maganga Moussavou said Bongo had suffered a cerebrovascular accident or CVA, commonly known as a stroke.
“Nobody should rejoice over the death or illness of another, those who have never known a CVA, pray to God that they never know one,” Moussavou said in a speech in Franceville in the south of the country on Saturday.
“I would not wish it on anyone, not even my worst enemy.”
A lack of official news after Bongo fell ill at an economic forum in Saudi Arabia on October 24 sparked speculation the Gabonese leader was incapacitated or even dead.
The vice president was part of a delegation of high-ranking officials who visited Bongo on Tuesday in Morocco, where he flew at the end of November after a stay in hospital in Riyadh.
A presidential spokesman had initially talked briefly of severe fatigue when referring to Bongo’s illness.
Official statements did not give details of his condition, though some sources had referred to a possible stroke.
A photograph of Bongo and two videos without sound have been published since his arrival in Morocco, further fuelling rumours about his state of health.
The Bongo family has governed the oil-rich equatorial African nation for five decades and long maintained close ties with former colonial master France.
Diplomatic ties cooled after Ali Bongo was elected in 2009 following his father’s death and French authorities launched a corruption investigation into the family’s assets.Read More
ASUU Warns Of Imminent Anarchy In UNILAG Over Alleged Pro-Chancellor Autocratic Rule
The Academic Staff Union of Universities, ASUU, University of Lagos, UNILAG chapter has warned of imminent anarchy in the institution over an alleged Pro-Chancellor’s autocratic handling of the school.
Chairman, ASUU-UNILAG in a release and signed by the ASUU Lagos Zone chapter chair, Professor Olusiji Sowande said: “The Pro-Chancellor and Chairman of the University of Lagos Governing Council, Dr. Wale Babalakin, SAN, activities since assumption of office are best described as autocratic, meddlesome and dictatorial.” He said: “For example, he not only brooks no opposition during Council meetings because of his over bloated sense of personal importance and intellectual capability.
“He acted like an Imperial Majesty by ordering the reinstatement of the Director of Sports, contrary to the recommendations of a Senate Committee set up to investigate the various cases of malfeasance against the Director of Sports.
“In addition, the Pro-Chancellor tyrannically ordered the seal- off of an apartment allocated to the immediate past Registrar of the University, without any humane consideration for the family of that person, who has right to respect for her person and family.
“Contrary to extant laws and established traditions of the University, the Pro-Chancellor illegally called a “Town Hall Meeting” on the 26th of September 2018 with the Non Academic Staff of the University and on the same day overreached his mandate and legal limits as a political appointee by addressing the University Senate in violation of the academic autonomy of the University.
“The latest in the Pro-Chancellor’s antics is his letter to Deans and Head of Departments inviting them to a meeting on the 11th of December 2018. This represents another violation of the University norm and a rabid desire to scuttle the ongoing strike action by our Union.
“This meeting is calculated at instigating disaffection, division, discord and disharmony amongst the generality of staff in the University. This is, to say the least, undignifying of a Pro-Chancellor in the University that is often touted as the University of First Choice and the Nation’s Pride”
“In view of the foregoing illegal and untoward activities of an individual whose professional calling is the defence of law and order, but who has suddenly turned a meddlesome interloper, an unrepentant law breaker, who lacks the value of intellectual humility and respect for contending views, our Union wishes to put the general public and well-meaning Nigerians on notice that the continuation of Dr. Wale Babalakin as the Pro-Chancellor represents present and future danger to the existence of the University of Lagos.
“Our union shall vehemently resist this real threat to well-being of our University. Consequently, should there be a breakdown of law and order on account of our resistance in the University of Lagos, whether now or in the foreseeable future, the Pro-Chancellor and Chairman Governing Council, Dr. Wale Babalakin SAN, should be held singularly and squarely responsible.”Read More
C’ River Govt. Invites Presidential Candidates To Calabar Carnival
Cross River Government has invited all the presidential candidates of the political parties for the 2019 general elections to take a week-long vacation from campaigns and participate in the 2018 Calabar Carnival.
Cross River Governor, Ben Ayade, extended the invitation to the presidential candidates on Sunday, while flagging off the third and last dry-run of the carnival with the titled: “Africanism.’’
Ayade, represented by his deputy, Prof. Ivara Esu, noted that the event scheduled for Dec. 28, had no political or religious undertone. “This is the final dry-run and the event is looking as if today is the grand finale. This shows that our first and second dry run was successful.
“I want to use this opportunity, on behalf of the state governor, to invite all the presidential candidates of various political parties to come for this year’s carnival.
“We want them to take off one week rest from their campaigns and come to enjoy themselves. Carnival Calabar does not know any political party or religion.
“When you come to Calabar for the carnival, you are as free as air.
‘’I will like to invite them to come here and relax and as the people see them, maybe those who are able to dance better may attract more votes.
“So, we want to see the candidates who can come here and rock it better in such a way that some people may be encouraged to vote for them,’’ he said.
Earlier, the Chairman of the Calabar Carnival Commission, Mr Gabe Onah, said that the event had become the melting pot of Africa’s hospitality.
Onah said that the `wonders on wheels’ had earlier had their dry-run where over 200 bikers participated.
He said that the state had sustained the hosting of the largest street party in Africa for a record of 14 years.
The chairman said the event had promoted the talents of budding artistes and had equally united the people of Cross River and Nigeria at large.
He said that the five competing carnival bands and others were designed to tell the African story from the African perspective. He commended DSTV and MTN Nigeria for their partnership with and support for the carnival over the years.
The President of Federation of Tourism Association, Alhaji Sabo Saleh, said that the association was in the state to understudy the event with a view to finding areas of partnership and support. Saleh said that tourism played an important role in the economy of any nation or state.
According to him, the association under his leadership will continue to support Calabar carnival because Cross River had placed Nigeria’s tourism on the world map.
“This is one of the biggest events that are coming out of Africa and it is sponsored by the Cross River Government.
“They are doing this to support the local people because tourism is multi-faceted and this helps the local economy to grow,’’ he said.Read More
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