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Economy

Budget financing: DMO lists pioneer Eurobonds on FMDQ platform

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The Debt Management Office  (DMO) on Friday listed its first Eurobonds on FMDQ Securities Exchange platform to fund the budget deficit and other financing needs of the Federal Government.

The listing comprises dual-tranche 2.50 billion dollars and triple-tranche 2.86 billion dollars Eurobonds.

Speaking at the listing in Lagos, Ms Patience Oniha, DMO’s Director-General, said the bonds were raised to refinance the country’s domestic debt.

Oniha said the proceeds of the Eurobonds would be used to fund the fiscal deficit as well as other financing needs of the country.

She said the 2.50 billion dollars Eurobonds issued in February 2018 was meant for refinancing of domestic debt.

Oniha added that the 2.86 trillion dollars Eurobonds floated in Nov, 2018 was purposely for financing of the capital project of the budget.

According to her, the Eurobonds are in line with the Federal Government’s debt management strategy aimed at achieving lower cost.

Oniha noted that listing of foreign currency-denominated debt securities by the Federal Government showed it’s unrelenting commitment to supporting the growth of the Debt Capital Market (DCM) for economic development.

The director-general said the government was committed to achieving a ratio of 60 per cent to 40 per cent between domestic and external debts.

“A  large part of it will be funded by new borrowing of N1.649 trillion and 50 per cent of that is provided as external right there in the appropriation bill Act, which means we will be borrowing externally.

“But this time around, we are trying to explore all the options starting with those that are cheaper, conventional, semi conventional  before we now determine in a very short form the balance that we should take to the international market,” Oniha said.

She said the DMO and its executives could not undertake any borrowing on its own without legislative approval.

“So, whatever borrowings you see here listed in whatever form are borrowings approved in one way or the other either through the budget process or a special process,’’ she said.

On objectives of exploring the international capital market, Oniha said the government wanted to position Nigeria in the market.

She said exploring the market had yielded great gains with many research analysts writing about Nigeria.

She explained that the initiative had opened ways for not only the  Federal Government but states, corporates and the capital market in general.

Mr Bola Onadele, FMDQ Managing Director, commended the federal government for the landmark achievement.

Onadele said, “this is yet another highly exemplary and indeed, positive step towards supporting the growth and development of the Nigeria’s DCM.’’

He said the FMDQ would further deepen and effectively position the Nigerian DCM for growth through consistent collaboration with its stakeholders.

Also, Mr Kobby Bentsi-Enchill, Executive Director & Head, Debt Capital Markets, Stanbic IBTC Capital Limited, lauded the DMO for strengthening the market with an array of products.

“We used to have TBS in the market before but now DMO has brought a lot of products,” he said.

Bentsi-Enchill said the market had been more functional with the activities of DMO.

He commended the agency for all the achievements recorded both locally and internationally.

Mrs Hamba Ambah, Managing Director, FSDH Merchant Bank Limited, said the DMO was playing a critical role in deepening the domestic market.

Ambah said DMO ensured that securities were accessible and traded by retail investors.

She also commended the FMDQ for providing the needed platform for issuers which had developed and widened the DCM.

Economy

Zimbabwe’s mth/mth inflation falls to 21.04 % in July

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Inflation

Harare, Aug. 21, 2019 Zimbabwe’s month-on-month inflation rate fell to 21.04 per cent in July compared to 32.96 per cent the previous month as prices of basic goods increased at a slower pace, statistical agency ZIMSTATS said on Wednesday.

Finance Minister Mthuli Ncube on Aug. 1 suspended the publication of year-on-year inflation figures until February 2020 because adoption of a new currency had impacted the base for calculating the consumer price index.

Annual inflation hit 175.66 per cent in June, the highest rate since runaway money-printing and associated hyperinflation forced the country to abandon its currency in 2009. (Reuters/NAN)

JI/WOJ

 

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Economy

NDIC signs MoU with Korean counterpart to strengthen deposit insurance

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The Nigeria Deposit Insurance Corporation (NDIC) has signed an agreement with the Korea Deposit Insurance Corporation (KDIC) to strengthen the Deposit Insurance System (DIS) in their respective jurisdictions.

In a statement on Wednesday, the spokesman of NDIC, Mr Mohammed Ibrahim, said the signing was done at the KDIC headquarters in Seoul, the South Korean capital.

Ibrahim said the Memorandum of Understanding (MOU) covered a wide range of issues intended to enhance the protection of banks’ depositors.

He listed some areas covered by the MoU as promotion of communication, enhancement of existing cooperation, provision of support and mutual understanding as well as collaboration.

These, according to him,  is necessitated by the “increasing globalisation and complexity of large financial institutions and the unique challenges they pose for regulatory authorities.”

“The MOU also provides for effective international working relationship between both agencies along with the enhancement of their roles in financial regulatory initiatives and policy deliberations.

“There will also be periodic exchange of staff between both institutions and bilateral meetings on regular basis.

“This is to enhance mutual understanding that promotes development of the DIS in both Nigeria and South Korea,” he said.

Ibrahim said the Chairman of KDIC, Mr WI Seongbak, and the Managing Director of NDIC, Mr Umaru Ibrahim, signed for their respective bodies.

 

 

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Economy

Monarch urges Nasarawa Govt on devt of his community

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Alhaji Usman Abdullahi, the Ohimege Opanda in Nasarawa State, has appealed to the state government to provide Toto Local Government area with basic infrastructure to boost socio-economic and agriculture in the area.

This, he said, would enhance the standard of living of residents and overall development of the country.

Abdullahi, a first class traditional ruler, made the call on Wednesday during an interview with the Nigeria News Agency in his palace in Umaisha in Toto Local Government area of the state.

He said that provision of infrastructure was key to the development of every society, hence the need for the state government to provide  roads, schools, electricity and other amenities in  the area.

The Igbura traditional ruler said that the provision of basic amenities would also attract investments to the area, thereby creating jobs opportunities and boosting their revenue base.

“I want to use this medium to appeal to the state government to link our area with Kogi State with road to improve on our standard of living and to boost our socio-economic activities.

“Look at Toto Local Government, we are not developed; no electricity, no good portable water, no good roads, among other social amenities.

“We also want the government to establish a higher institution in this area in the interest of the education of our children and other Nigerians considering the importance of education to the development of the society.

“If these are done,it will go a long way in bringing in development, boosting agricultural activities, thereby improving on our standard of living,”  Abdullahi said.

Abdullahi also called on his subjects and other Nigerians to pray and support leaders at all levels to enable them succeed in the tasks ahead of them.

“I want my people and Nigerians at large to pray for leaders at all levels as prayer is key to success. Our leaders need our prayers and support to succeed while discharging their duties.

“So, I want my people to give their maximum support and cooperation to President Muhammadu Buhari, Engr.Abdullahi Sule and other leaders to succeed so that they will bring us more dividends of democracy, “he said .

The first class traditional ruler  enjoined his subjects and Nigerians to live in peace, be law abiding and respect constituted authorities for the overall development of the country.

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Economy

Gov. Ishaku disburses N500m for devt. projects in 50 communities

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Economy

LAPO microfinance, deliberate concept to challenge poverty in Nigeria – Ehigiamusoe

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The Managing Director, Lift Above Poverty (LAPO) Microfinance Bank, Mr Godwin Ehigiamusoe, on Tuesday said the bank would not relent in its vision of financing Nigerians in need to end poverty in the country.

Ehigiamusoe made this known at a media chat organised by the microfinance bank in Lagos.

Nigeria News Agency reports that the chat was held to commemorate  the bank’s 32 years of existence and to  reiterate the bank’s continuous commitment to Nigerians.

“LAPO was established in 1987 to assist low income earners and grant low interest loans to Micro, Small and Medium Enterprises (MSMEs)

According to the bank’s boss, a prudent methodology of extensive networking enabled the bank to reach its over four million Nigerians with 495 branches in the country.

He said, “LAPO Microfinance Bank had a humble beginning that kicked off in 1987.

““In 1986, General Ibrahim Banbagida adopted Structural Adjustment Programme (SAP).

“Its central components were devaluation of the national currency, gradual removal of subsidy, liberalisation of export and rationalisation of workforce in public service.

““The cumulative effect of these measures was an increase in spread of poverty level.

“”This was the exact scenario in 1986 in Ogwashi-Uku, Delta, where I gave N100 each to three women namely, Mrs Felicia Monye, Mrs Monica Igwebuike and Mrs Obiageli Nwoko.

“”This was the scenario that berthed LAPO microfinance bank.

“The name LAPO was a product of deliberate thought because I conceptualised poverty as an Octopus with the tentacles of material deprivation, poor health and social exclusion.”

Speaking on some of the bank’s achievements, Ehigiamusoe said the financial institution partnered Lafarge Cement Company and African Development Bank (AfDB) in 2013 to pioneer affordable housing programme in the country.

““Because of the veritable achievements, LAPO won a Grameen foundation award of excellence in 2006 with the crash prize of $10,000.

““The $10,000 was used as seed fund for a scholarship scheme for children of our clients.

“As we speak over 3,000 children have benefited from the scheme,” he said.

Speaking on the bank’s financials for 2018, Ehigiamusoe said the cumulative loan of the bank as at December 2018 stood at N137 billion and total deposit of N14 billion in the same financial year.

He said the Profit after Tax (PaT) of the bank stood at N2.8 billion at the same period.

The bank’s boss said the bank had 1,273 agents in over 30 states in the country .

Edited by Donald Ugwu

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