Top News Update 15/06/2017
1. External reserves down to 3-month low
2. Nigeria regains Africa’s top oil producer status
3. Nigeria to sell 100 bln naira debut sukuk this month – DMO
4. NSE to launch Exchange Traded Derivative
5. Nigeria’s economy threatened by increasing U.S. oil exports, price volatility
6. FG to raise $600m from SWF, NSE for mining
7. ExxonMobil, others to empower 10,000 people
8. United Nations Commends Nigeria on SDGs Implementation
External Reserves Down To 3-Month Low
The nation’s external reserved has dropped to $30.22 billion, the lowest level in three months. The Central Bank of Nigeria (CBN) disclosed this Wednesday on its website. The apex bank revealed that the external reserve dropped to $30.222 billion on Tuesday June 13th, representing a weekly decline of $68 million when compared with the $30.290 billion achieved the previous Tuesday of June 6th. Vanguard revealed that the new level of $30.22 billion represents the lowest level since March 14th, or 13 weeks ago, when the reserve was $30.23 billion. The reserve has been on the downward trend since May 4th when it reached a peak of $30.99 billion. Since then, the reserve has dropped by $770 million.
Nigeria Regains Africa’s Top Oil Producer Status
Buoyed by the return of the Forcados export terminal, the nation’s oil production has surpassed that of its rival, Angola, the latest data from the Organisation of Petroleum Exporting Countries has shown. Nigeria, which again lost its Africa’s top oil producer status to Angola in January after it regained it in November last year, recorded the biggest increase in output among its peers in the OPEC last month. For nine months in 2016, Nigeria lagged behind its southern African counterpart in oil production on the back of the resurgence of militant attacks on oil facilities in the Niger Delta.
Nigeria To Sell N100b Debut Sukuk This Month – DMO
Nigeria plans to sell a 100 billion naira ($328 mln) debut sovereign sukuk in the local market this month to help fund road projects, the Debt Management Office (DMO) said on Tuesday. The Islamic bond with a 7-year tenor will go on sale on June 28 for three days via book building, the DMO said. The bond will be tradable on the Nigerian Stock Exchange and on FMDQ over-the-counter platform. Nigeria is home to the largest Islamic population in sub-Saharan Africa, with about half of its 180 million people Muslims. It is also home to one of Africa’s fastest-growing consumer and corporate banking sectors. The DMO said the issue was “part of the plan to fast track the development of infrastructure and engage in … project-tied capital raising.” It said Nigeria has challenges with road, railway and power infrastructures. In 2013, Nigeria’s Osun State issued 10 billion naira worth of sukuk, but no other sukuk transaction followed. The latest issuance is part of plans to develop alternative funding sources for government and to establish a benchmark curve for corporates to follow, the debt office said.
NSE To Launch Exchange Traded Derivative
The Nigerian Stock Exchange (NSE) has concluded arrangements to introduce Exchange Traded Derivatives (ETDs) into the market to expand its various investment instruments. Speaking at a training on legal and risk aspects of derivatives and central counterparty clearing in Lagos, First NSE’s Vice President, Mr. Abimbola Ogunbanjo, said the Exchange would launch the ETDs into the market later this year. ETDs are variants of derivatives traded on an organised securities exchange as against those other derivatives traded through informal over-the-counter (OTC) market. Derivatives derive their values from their underlying assets, such as commodities, stocks, bonds, interest rates and currencies as well as other derivatives and indices. The introduction of ETDs is expected to further enhance the complexity and breadth of the capital market, following the introduction and listing of an Exchange Traded Fund (ETF) in 2011.
Nigeria’s Economy Threatened By Increasing U.S. Oil Exports, Price Volatility
Nigeria’s oil based economy may be living on borrowed time, as the global market, especially the United States (U.S.), becomes less dependent on Africa’s crude and prices face more and more volatility, The Guardian reports. Rystad Energy, the energy data warehouse, predicts oil production in the U.S. is growing so fast that an all-time high of 10 million barrels per day could be reached before December 31. Until recently — when it was upstaged by China and India — the U.S. was a major destination for Nigeria’s crude. But ramped-up production of shale is providing an alternative.
FG To Raise $600m From SWF, NSE For Mining
The Federal Government has started the process of raising $600m for the development of the solid minerals sector, Acting President Yemi Osinbajo has said. Osinbajo said this in a keynote address delivered at the opening of the National Mining Summit in Abuja on Tuesday. According to him, the fund will be raised through the Nigerian Sovereign Wealth Investment Authority and the Nigerian Stock Exchange. He said, “We are currently working with the Nigerian Sovereign Wealth Investment Authority, the Nigerian Stock Exchange and others to assemble a $600m investment fund for the sector. “We have secured funding from both domestic and international sources for investment in the solid minerals sector. From the public purse, the Ministry of Mines and Steel Development has been granted access to the mining sector component of our Natural Resources Development Fund for the sum of N30bn, an intervention fund from the Federal Government. This is to help provide cheap loans and grants to industry participants as well as for directly investing in foundational infrastructure.
ExxonMobil, Others To Empower 10,000 People
The fourth edition of a youth development programme organised by ExxonMobil, National Basketball Association and Africare, is expected to empower 10,000 beneficiaries drawn from schools and vulnerable communities. A statement on Wednesday said the Power Forward programme would teach and mentor 300 students from 10 secondary schools annually in Abuja on health literacy and life skills such as leadership, respect and personal responsibility through basketball and other programming to positively impact the students.
United Nations Commends Nigeria On SDGs Implementation
The efforts of the Federal Government to effectively domesticate and implement the Sustainable Development Goals (SDGs) got a big boost in Abuja recently with the United Nations pledging its partnership and support to Nigeria to deliver on the implementation of the SDGs. The pledge was made when the Global Director of the United Nations SDG Action Campaign, Mr. Mitchell Toomey paid a courtesy visit to the Senior Special Assistant to the President on the SDGs, Princess Adejoke Orelope-Adefulire.