Eurobonds: FG to appoint two international banks.

The federal government of Nigeria is in the process of appointing two lead managers and a financial adviser to organize the issuance of $1 billion of Eurobonds this year. According to the Debt Management Office (DMO), the sale is the first tranche of a $4.5 billion Nigeria Global Medium-Term Notes Issuance Programme that runs through 2018 Dr Abraham Nwankwo, DG of

DMO Dr Abraham Nwankwo, DG of DMO The government aims to appoint two international banks as joint lead managers and a local lender as financial adviser for the whole program, according to the statement. According to Bloomberg, the DMO has already called for bids are to be submitted latest 12 noon on Monday, September 19 at its Abuja office. The move will enable Nigeria to have the flexibility of quickly taking advantage of favorable market conditions in the international capital market to raise funds if and only when the need arises.” The move is the first time Nigeria is tapping into the Eurobond sales after attempts in 2011 and 2013. The government has since indicated its intention to borrow to shore up the 2016 budget’s 2.2 trillion naira deficit. The government also promised earlier in the year that it will increase spending especially on capital projects to stimulate its already battered economy. The International Monetary Fund had warned that the Nigerian economy could shrink by 1.8 percent in 2016. Two weeks ago, Nigeria’s minister of finance, Mrs Kemi Adeosun told the Nigerian Senate that Nigeria is ”technically in recession” after months of insisting that the economy was doing well. The Central Bank of Nigeria (CBN) governor, Godwin Emefiele set the ball rolling on Wednesday, July 20 during a presentation to the Senate. A seemingly sober Emiefiele told the senators that the country’s economy has been characterised by external shocks, sharp decline in commodity prices and geo-political tensions along important global trading routes among others. Meanwhile, fourteen (14) airlines have withdrawn their services from Nigeria due to low patronage and the bad economy being experienced in the country. The airlines are among the 50 that operated the Nigerian routes some months ago. Some of those listed are Spanish-owned Iberia airlines, United Airlines and Air Gambia among others.

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Collapsed banks in Ghana recovered only $142 million out of $2 billion loans, Bank of Ghana Governor reveals.

The Governor of the Bank of Ghana, Dr Ernest Addison says out of the $2 billion (GHS10.1 billion) worth of loans taken by the receivers of some nine banks which collapsed in the country, only $142 million (GHS731 million) has been received. The Governor of the Bank of Ghana (BoG), Dr Ernest Addison The nine banks were UT Bank, Capital Bank, Sovereign, Unibank, Construction Bank, The Royal Bank, Heritage Bank, Premium Bank and Beige Bank. According to him, the receivership process has been painstakingly slow with other loan defaulters and shareholders of the defunct banks engaging in frivolous legal cases to sabotage the process. “The process has progressed slowly as out of the total loans of $2 billion (GH¢10.1 billion) taken over by the Receivers, total recoveries so far is in excess of $142 million (GH₵ 731 million) and this has been achieved through loan repayments by customers; repayment of placements; sale of vehicles; liquidation of bonds; and from...

BOOM: Nigeria’s External Reserves Drops To Lowest In 11 Years

Nigeria’s foreign exchange reserve fell to $25,780,765,483 (25.78 billion) as of August 16, the lowest we have seen since 2005. The drop was down 2.11% from a month ago. The Nations external reserves dropped below $26 billion for the first time on the 5th of August 2016 after it closed at about $25,971,610,949. In fact, the external reserves has dropped by about $480 million dollars in August alone compared to just $100 million in the whole of July. Ironically, the current balance of $25.9 billion is worth about 80% more than what it was in Naira following the depreciation of the naira after it was floated. The CBN has in the past few days ramped up sales of dollars at the interbank in the hope that it will create liquidity in a market that is yawning gape to swallow forex after nearly almost two years of intense rationing by the CBN. The Naira weakened to its lowest ever at the interbank after it closed at about N362.5/$1 in midday trading. The Naira will eventua...

Alert: Naira Gains A Massive 5% Against the Dollar

The exchange rate rebounded on Friday to close at N308 at the official interbank market. The local currency gained about 5.2% reversing the N325 it closed with on Thursday. According to reports, the gains was mostly due to a sale of forex by the Central Bank of Nigeria providing enough liquidity to meet the demand currently in the market. The naira has closed at an all time low of N364 to the dollar on Thursday following a surge in demand. The central bank has been selling dollars almost daily to boost liquidity and support the naira. Join our BBM channel for instant updates : C0030863D

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