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CBN to auction N58.5bn Treasury bills this week - PUNCH

APRIL 16, 2019

BY  Femi Asu

A former Head of State, Gen. Yakubu Gowon (retd), said on Monday that there was a plan by his government to build five export-oriented refineries in the country but it did not materialise.

Gowon, who was the Head of State from 1966 to 1975, stated this during the annual international conference of the Oil and Gas Trainers Association of Nigeria in Lagos.

“During our time, our plan was to build five export-oriented refineries to be able to export refined fuel instead of giving the crude to various countries,” he said while addressing journalists on the sidelines of the event.

The nation’s refineries, which are located in Port Harcourt, Kaduna and Warri, have a combined installed capacity of 445,000 barrels per day but have continued to operate far below the installed capacity for many years.

Gowon expressed the hope that the introduction of modular refineries in the country would bring about improvement.

“So, I hope with the modular refinery scheme, things will improve and we don’t have to be sending our crude abroad to be refined and then they come here with all the subsidies, and the problem it has created,” he added.

A former Nigeria’s High Commissioner to the United Kingdom, Dr Christopher Kolade, in his presentation, stressed the need to unlock Nigeria’s potential through comprehensive human capital development.

Kolade, who is the founder of Chris Kolade Foundation, said Nigerians had not yet agreed on “values we cherish as a nation.”

“Does this nation have a culture on which noble ideas can flourish? Those who want to pursue a noble cause must know that only noble people can achieve noble causes,” he said.

The President, OGTAN, Dr Mayowa Afe, said human capital development in any chosen endeavour had been identified as a tool to promote economic growth and development in a nation.

“Its significance and relevance through acquisition of necessary skills is a prerequisite for socio economic transformation. So, our wealth is not oil and gas but the human capital that we are endowed with by God,” he said.

Afe described the Nigerian Content Act as one of the best things to have happened to the nation’s oil and gas industry.

He said, “Improvements are still needed, but the Act practically created the oil and gas training industry as it is today. Ten years ago, there were very few indigenous trainers, doing very little; but that has greatly changed today. The implementation of the law has been acclaimed to have attracted investments worth $2bn into the country and created about 38,000 job opportunities.

“This created opportunities for our members to be more involved in providing content. Some of our members were saddled with the responsibility for managing various compliance issues that arose from the implementation of Nigerian content initiatives in their companies. This was quite impactful as it has resulted to the growth and development of our members.”

CBN to auction N58.5bn Treasury bills this week - PUNCH

APRIL 16, 2019

BY   Feyisayo Popoola

The Central Bank of Nigeria will conduct a primary market auction on Treasury bills this week, offering a total of N58.5bn across the 91-day (N5.8bn), 182-day (N29.2bn) and 364-day (N23.4bn) tenors.

The 91-day tenor recorded the last stop rate of 10.29 per cent on Friday, the 182-day tenor recorded the last stop rate of 12.6 per cent, while the 364-day tenor had the last stop rate of 12.85 per cent.

 

The Treasury bills secondary market sustained its bullish run into the second trading week of the second quarter of 2019.

Analysts at Afrinvest Securities Limited said the bullish trend was sustained due to the absence of Open Market Operation auctions as well as N33bn worth of maturities that bolstered the system last week.

Consequently, average yields across all tenors declined by seven basis points week-on-week to settle at 13.3 per cent from 13.4 per cent the previous week.

Although buying interests were witnessed across all tenors, more investors positioned at the shorter end of the curve, causing yields on short-term instruments to contract by 20bps week-on-week, while the medium- and long-term bills depreciated by 17bps and 10bps week-on-week, respectively.

Analysts at Afrinvest said, “Going into the week, we expect to see a boost in system liquidity on the back of OMO and T-bills maturities worth N107.4bn and N58.5bn, respectively.

“On the back of these inflows, we anticipate that the CBN will resume its liquidity management via OMO auctions, which will keep yields around current levels across the curve.”

Investors were advised to take advantage of T-bills with attractive yields, as well as available OMO bill offerings.

In view of the moderating T-bills yields, the commercial papers from corporates resumed last week as Nigerian Breweries Plc announced its plan to raise N15bn in the first and second series of its N100bn commercial paper programme to support its short-term funding requirements.

Meanwhile, activities in the bond market maintained a bearish outlook as the average yield trended northwards by 12bps to settle at 14.2 per cent last week due to sell-offs experienced across most segments of the curve.

However, major sell-offs persisted on the May-19 and Jul-21 instruments.

Analysts said a quiet trading session in the bond market was anticipated as investors await clearer policy directions.

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