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DMO continues FGN securities issuance awareness in Ibadan



The Debt Management Office (DMO) is set to hold its Southwest edition of its Federal Government of Nigeria (FGN) Securities Issuance Awareness programme in Ibadan on Tuesday.

This is coming after the Office held its inaugural securities awareness programmes in Lagos on March 24, followed by the Southeast edition in Enugu on March 31.

Director-General of the DMO, Patience Oniha, told journalists that the programme in Ibadan would be followed immediately by a the Northwest edition on June 28, in Kano.

Oniha said that the programme was in collaboration with CSL Stockbrokers Limited, which is the stockbroker of the FGN.

She said that it was designed to create awareness about the various financial offerings and investment opportunities of the FGN amongst the Nigerian public, mainly targeting retail investors.

Oniha said that the aim was to sell the various existing FGN securities to the Nigerian public.

She said that the objective was to ensure that many more Nigerians became aware of the huge investment opportunities and take advantage of them.

“The purpose is to introduce DMO to the people because the Nigerian people are a very important set of stakeholders we must engage.

“Also, we have to educate the general public about the various products that we offer.

“We are talking of investment products similar to shares, but this is the other side of shares.

“The needs of government are growing and becoming different, so, we need to get more stakeholders involved in what we are doing,” she said.

Oniha said that the idea of getting more Nigerians to invest in government securities was to also promote and encourage financial inclusion.

“It is good to keep bank accounts, but it is also good to get actively involved in the financial market, either by buying shares or bonds,” she said.

According to her, the various FGN securities constitute the local component of government borrowings which go into providing some  critical needs  of the  citizens.

“One of our objectives is to prove our ability to raise the funds that government will use to fund these projects  that will benefit all of us.

“We will like you to support us by subscribing to our products so that we can transfer the funds to the government,” she said.

She said that the DMO was saddled with the responsibility of managing public debt, which also involved borrowing.

“While managing the public debt, we also want to ensure that it is sustainable, so there are  some World Bank and International Monetary Fund (IMF) tools that we use.

“We have a range of products like the FGN Bond, the Nigeria Treasury Bills, FGN Savings Bond,  the Sovereign Sukuk and the Green Bond,” she said.

She said that the FGN savings bond was deliberately designed for the retail investors to benefit, while supporting government to raise funds and also supporting development of the financial market.

Recall that FGN securities are financial instruments issued by the DMO on behalf of the FGN.

They are mostly Fixed Income Securities, which makes the borrower or issuer obliged to make payments of a fixed amount on a fixed schedule.

Amongst benefits of FGN securities, according to the DMO, are that they are backed by the “full faith and credit” of the Federal Government.

“The interest income earned on FGN securities are tax exempt.

“Investors can use their investments in FGN Securities as collateral to borrow from banks and other financial institutions, and investors can use them to diversify their portfolios, reduce risk and achieve stability in value.

“Investors can earn a fixed, predictable, and regular cashflow on their investments,” the DMO said.

Money market

FBN Holdings’ market capitalisation hits $2.6bn after week of growth



FBN Holdings, one of Nigeria’s oldest banks on Wednesday has achieved a market capitalisation of N1.06 trillion ($2.6 billion) after a week of growth, with the share price rising by around 10 per cent.

The surge began in 2022 after billionaire investor Femi Otedola acquired a majority stake in the bank, triggering investor enthusiasm and a flurry of stock purchases.

At the time of Otedola’s acquisition, FBNH traded at just under N6 per share, meaning the stock price has quadrupled since the announcement.

In its third-quarter financial statements for the period, FBN Holding’s profit after tax (PAT) was N236.4 billion, a 159.2 percent increase from the N91.2 billion recorded in the corresponding period in 2022.

By surpassing the N1 trillion market cap, FBNH joins the exclusive group of Nigerian publicly traded companies known as SWOOTs (Stocks Worth Over One Trillion).

Other members of the SWOOTs group include Dangote Cement, Airtel Africa, MTN, BUA Cement, BUA Foods, Seplat, Zenith Bank, and GTCO.

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Money market

W’ Bank commits $5bn to expand electricity access in Africa by 2030



The World Bank has announced plans to allocate $5 billion towards bringing electricity to 100 million people in Africa by 2030.

The announcement was made by the President of the World Bank, Ajay Banga, during his speech at the mid-term review of the International Development Association’s $93 billion replenishment package in Zanzibar, Tanzania.

Banga highlighted the importance of providing support to low-income countries through the bank’s IDA, which offers zero- or low-interest loans.

He cited the initiative to bring electricity to millions of people in Africa as an example of how the funds from IDA will be used.

The World Bank’s plan to bring electricity to 100 million people in Africa by 2030 is a significant step towards improving the quality of life for millions of people on the continent.

The lack of access to electricity has been a major hindrance to economic development in many African countries, and this initiative will help to address this issue.

The allocation of $5 billion towards this project is a clear indication of the World Bank’s commitment to supporting sustainable development in Africa.

Banga said World Bank shareholders, donor countries and philanthropies needed to dig deeper to help IDA deliver better development outcomes to low-income countries.

He said, “The truth is we are pushing the limits of this important concessional resource and no amount of creative financial engineering will compensate for the fact that we need more.”

He also said the World Bank needs to revamp how it evaluates its performance to focus on improved outcomes, not numbers of projects or dollars disbursed.

That means moving towards platforms that can be replicated, such as an IDA-financed mini-grid that delivers electricity to rural communities in Nigeria.

“But this is just one example, I want to see 100,000 – 200,000 – half a million more,” he said, adding that IDA was investing $5 billion to deliver affordable renewable electricity to 100 million Africans before 2030.

The World Bank boss added, “But how can we hope to make even adequate progress while 600 million people in Africa – 36 million of whom live here in Tanzania – still don’t have access to reliable electricity? Put simply: We can’t.”

The current, 20th IDA funding round is due to be completed on June 30, 2025, with the Zanzibar conference aimed at adding to that funding.

Banga used to launch his campaign for the subsequent round of funding to well exceed $93 billion.

The World Bank President in Zanzibar said, “The truth is we are pushing the limits of this important concessional resource and no amount of creative financial engineering will compensate for the fact that we need more funding. This must drive each of us to make the next replenishment of IDA the largest of all time.”

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Money market

CBN approves reviewed service charter to enhance business facilitation



By Sodiq Adelakun

The Central Bank of Nigeria (CBN) has announced the approval of its reviewed Service Charter by Governor Olayemi Cardoso.

The Service Charter is a requirement of the Business Facilitation Act (BFA) 2022 and aims to improve the ease of doing business in Nigeria.

It also enables the Bank to comply with SERVICOM Nigeria’s directives on improving customer service delivery.

The Charter outlines the Bank’s promises to work with its external customers to meet their service expectations, as well as what the Bank expects from them.

In the foreword, the Governor reiterated the Bank’s “commitment to providing more responsive and citizen-friendly governance through quality service delivery that is efficient, accountable and transparent,” the CBN stated on its website.

The document outlines the Bank’s mandates, vision, mission, and core values. It contains the services the Bank offers through its various departments and the service standards for each service.

The Service Charter also includes a standardised customer complaints form for reporting service failure and a mechanism for addressing service failure in any of the Bank’s services.

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