|Economy|
Third Quarter Trade Dropped by N359bn: Nigeria's total external merchandise trade decreased to N6.29 trillion in the third quarter of 2014 compared to N6.65 trillion in the previous quarter, data from the National Bureau of Statistics (NBS) disclosed. The drop represents a shortfall of N359.6 billion or 5.4 per cent compared to second quarter results. According to the Foreign Trade Statistics for the second quarter released on Sunday by the NBS, decrease in both imports and exports resulted in the fall in total trade. Nevertheless, the Consumer Price Index (CPI), dropped further to 7.9 percent in November compared to 8.1 percent in October, according to the NBS. Total exports in Q3 declined by N202.7 billion or 4.3 per cent to N4.4 trillion, while imports declined by N157 billion or 7.9 per cent to N1.8 trillion. Notwithstanding, the balance of trade remained favourable at N2.6 trillion in the period under review. The value of crude oil exports stood at N2.9 trillion, representing 65.4 per cent total export while the non-crude oil export stood at N1.5 trillion, accounting for 34.6 per cent of total exports. According to the NBS, total trade grew by N641.6 billion or 11.3 per cent relative to N5.6 trillion in the corresponding quarter of 2013. Source: Punch
CBN Begins Mop-up of N1.2trn: The Central Bank of Nigeria (CBN) will commence the withdrawal of N1.2 trillion from the economy in its bid to maintain single digit inflation and reduce demand for foreign exchange. In continuation of its tight money supply policy, the CBN announced that from this week till first week in March of 2015, it would sell N1.22 trillion worth of treasury bills. The TBs come in three variants of 91 days, 182 days and 365 days. This week the CBN intends to sell N248 billion worth of TBs comprising N55.41 billion worth of 91 days TBs, N83.13 worth of 182 days TBs and N110.4 billion worth of 365 days TBs. In January 2015 the apex bank intends to sell N385 billion worth of TBs comprising N80 billion worth of 91 days TBs, N98 billion worth of 182 days TBs and N205 billion worth of 365 days TBs. In February, the apex bank will sell N77.62 billion worth of 91 days TBs, N60 billion worth of 182 days TBs and N197 billion worth of 365 days TBs, totalling N334 billion worth of TBs to be sold in February. In the first week of March, the CBN will sell N254.95 billion worth of TBs comprising N17.85 billion worth of 91 days TBs, N50 billion worth of 182 days TBs and N187 billion worth of 365 days TBs. Source: Vanguard
DMO to Sell N65b Sovereign Bonds Wednesday, Ecobank Eyes $250m: The Debt Management Office (DMO) plans to sell N65 billion worth of sovereign bonds on Wednesday, December 17. It said it would sell N10 billion in three-year paper, N30 billion in 10-year paper and N25 billion in 20-year tenor. All the bonds are a re-opening of previously issued paper. Meanwhile, Ecobank Transnational Inc. (ETI) will sell equity in the first quarter of next year as it seeks to meet regulatory capital requirements for its Nigerian unit. The bank is looking at raising $250 million before the end of March by private placement. The Chairman of ETI, Emmanuel Ikazoboh, disclosed that, the Basel III liquidity regulations call for huge capital and we have to meet the requirement. The Central Bank of Nigeria (CBN) in August ordered largest lenders to boost minimum capital ratios to 16 per cent by March, next year compared with a previous benchmark of 11 per cent. The government is preparing to implement Basel III requirements next year and increase the resilience of banks. Source: The Nation |