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The Debt Management Office says the Federal Government Savings Bond has received a total subscription of N45.135 billion between 2017 and 2022.

The Director General of the DMO, Patience Oniha disclosed this in Lagos on Tuesday.

She said that the savings bond was specifically designed to encourage retail investors who had done well across the six geo-political zones of the country, going by the numbers.

According to her, it is a product that the DMO introduced in March 2017 to enable retail investors participate in the federal government securities market and promote financial inclusion.

She said that the stakeholders meeting was arranged to review the performance of the FGN Savings Bond and to present the portal.
Oniha said that the DMO worked with the Central Securities Clearing System to develop the portal.

“This explains why the Primary Dealers Market Makers, Central Bank of Nigeria, Securities and Exchange Commission, Nigeria Exchange Limited and stockbroking firms have been invited.

“The DMO believes that the product has more potential than what has been achieved so far, and has for now, identified two ways to achieve much higher volumes and numbers of investors,” she said.

In 2022, the DMO embarked on investor sensitisation programmes across a number of cities in Nigeria.

“This strategy proved successful as total subscription almost doubled from N8.396 billion in 2021 to N16.589 billion in 2022.

“Given this outcome, the DMO plans more of such sensitisation, as well as wider publicity.

“The other strategy is to deploy technology to the process to make the subscription fast, easy and overall, more convenient,” she added.

She said that the portal had been tested with distribution agents for the Savings Bond, adding that the presentation was to expose it to a wider group of stakeholders.

In a paper presentation, Bose Olafisoye from the DMO, said it was introduced as part of market development initiatives of the office.

According to Olafisoye, there is a higher and increasing investor appetite for the three-year FGN Savings Bond relative to the two-year bond, based on level of subscription.
“This could be due to the 100 basis points difference in the coupons and investors preference for longer maturities,” she said.

She said that there was the need to build on gains recorded over the years in the efforts to develop the retail segment of the bond market.

The country’s external reserves fell by $427.14m in one month, figures obtained from the Central Bank of Nigeria revealed on Monday.

This is as the crisis in the country’s currency worsened over the scarcity of the new naira notes.

Figures obtained from the CBN on the movement of foreign reserves showed that the reserves, which stood at $37.21bn as of January 18, fell to $36.79bn as of the end of February 16, 2023.

Last year, the CBN Governor, Godwin Emefiele, after announcing the plan to redesign the naira notes, said one of the objectives of the policy was to mop up currency outside the bank vaults.

He urged Nigerians to make use of alternative payment channels that would drive the digital payment systems in the country.

But due to the scarcity of the new naira notes after the deadline, the President, Major General Muhammadu Buhari (retd.), directed that the old N200 note should be re-circulated, adding that it would remain legal tender until April 10, 2023.

The Deposit Money Banks also commenced the collection of old N500 and N1,000 on Friday, this was even without giving the depositors new naira notes in return.

Due to the hardship ocassioned by the scarcity, pockets of protests triggered in the country which had led to the loss of lives and property.

The Nigeria Employers’ Consultative Association had said in a statement that, “In the last few weeks, with the cash squeeze and the purchasing ability of Nigerians greatly impaired by the shameless implementation of the policy, the economy has witnessed a significant bashing with a report stating that the real sector witnessed about 40 per cent drop in productive activities. As the cash crush continues, thousands of productive hours are lost daily on queues by employees and many cannot even get to work.”

The Governor, CBN, Godwin Emefiele, in 2022, launched the ‘RT200 FX Programme’ to boost forex supply in the country through the non-oil sector in the next three to five years.

“The RT200 FX Programme is a set of policies, plans and programmes for non-oil exports that will enable us to attain our lofty yet attainable goal of $200bn in FX repatriation, exclusively from non-oil exports, over the next three to five years,” he said.

 

Three banks’ stocks – Sterling Bank Plc, Fidelity Bank Plc and Access Holdings Plc – dominated activities in the financial service sector of the Nigerian Exchange Limited (NGX) last week.

With the development, the financial sector maintained its control in volume terms with 508.5 million shares valued at N6.2 billion traded in 6,8771 deals, contributing 67 per cent to the total equities turnover.

Specifically, trading in the top three equities—Sterling , Fidelity and Access-Holdings, accounted for 249.6 million shares worth N3.9 billion in 1,984 deals, contributing 33.2 per cent to the total equities’ turnover.

Following the banking sector in volume terms, last week, was the consumer goods industry with 86.3 million shares worth N4.8 billion in 2,562 deals.

The industrial goods industry ranked third with a turnover of 34.3 million shares worth N3.6 billion in 1,305 deals.

On the whole, a total turnover of 751.9 million shares worth N20.5 billion was recorded in 15,822 deals by investors on the floor of the exchange, in contrast to a total of 944.3 million units valued at N22.7 billion that changed hands in 18,615 deals during the preceding week.

On the price movement chart, the market closed the week negative for the first time in seven weeks following sell pressure on Airtel Africa (-6.0.per cent), Fidelity (-14.7 per cent), and Zenith (-0.8 per cent).

Consequently, the NGX All-share index and market capitalisation depreciated by 0.96 per cent and 0.95 per cent to close the week at 53,804.46 points and N29.31 trillion respectively.

Similarly, all other indices finished lower except NGX Premium, NGX Insurance, NGX MERI Growth, NGX Consumer Goods, NGX Oil and Gas, NGX Industrial Goods and NGX Growth indices which appreciated by 0.54 per cent, 1.18 per cent, 0.44 per cent, 0.67 per cent, 0.91 per cent, 0.06 per cent and 7.15 per cent respectively while the NGX ASeM and NGX Sovereign Bond indices closed flat.

Further breakdown of last week’s transactions showed that a total of 2,895 units valued at N452,808.58 were exchanged in 29 deals compared with a total of 16,674 units valued at N11.9 million transacted last week in 44 deals.

A total of 24,298 units valued at N25.4 million were traded in 12 deals compared with 45,882 units valued at N46.200 million transacted last week in 22 deals. Thirty-six equities appreciated during the week higher than 24 equities in the previous week.

Twenty-seven equities depreciated lower than 45 in the previous week, while 94 equities remained unchanged, higher than 88 equities recorded in the previous week.

The Managing Director, International Energy Insurance, Mr Olasupo Sogelola, has said the company will expand its retail and corporate businesses, and rebuild its capacity in the oil and gas sector.

Sogelola said this while speaking on the five-year growth plans of the company during a press briefing in Lagos. He noted that IEI Plc was set for expansion after its acquisition by Norrenberger, an integrated Financial Services Group.

Recalling that IEI used to be a major player in the oil and gas sector, he said, “We are going to reach out to all our energy sector stakeholders; we served them well and we will claim them back.”

He said the company would expand its alternative channels to attract the retail market including the small and medium enterprises, educational institutions, religion societies and market women associations among others.

The company, he added, would create new products to meet their needs and attract market penetration.

He noted that the corporate market had been contributing largely to the company’s premium and it would ensure that it continued to gain more expansion.

Sogelola said, “We are not leaving our corporate services. In the past years, the corporate has been expanding our operations, we will be expanding it.”

According to him, the retail sales offices of IEI would be better equipped to meet the needs of its customers.

He also said that the company would ensure a robust system that would deliver what it required.

“As at today, we have paid all brokers all outstanding claims excluding the foreign-denominated claims which we have started to pay but for the currency fluctuation. But by June, they will be fully paid.”

The managing director also revealed that its new investors paid N5bn in cash deposit into the company and all it required was for the National Insurance Commission’s approval, a move that would enhance the capital base of the company.

 

The Association of Senior Staff of Banks, Insurance and Financial Institutions has announced that banks should begin operations from Monday, February 20, 2023.

The association disclosed this while suspending its plans to commence strike action on Monday.

It will be recalled there had been several cases of protests and destruction of bank facilities across the country over the naira scarcity.

The President of the association, Olusoji Oluwole, disclosed this on Sunday.

However, he cautioned members to, without further instruction, shut their doors and gates against customers whenever their lives are under threat.

He said: “Following the recent unwarranted attacks on members of ASSBIFI, other bank workers, and the destruction of several branches across various states, we were forced to issue a stay-at-home order to our members to safeguard their lives, and properties of their various organisations.

“Based on the outcome of our discussion, we hereby release the following statements: while our members will resume at their functional branches immediately, the safety and security of their lives remain paramount to us and we continue to demand that visible and adequate security is provided in all operational areas. particularly places that are traditionally known to be volatile.

“In the event of any threat of attack by the public without visible protection, they have been advised to shut down and move to safe locations until such a time that their safety can be guaranteed,” he said.

However, he advised members to assess the security situation in their environments before opening for business.

Oluwole said the association is concerned by the inciting and threatening statements following the initial inability of banks to accept old N1000 and N500 notes based on instruction of the banking regulator, the Central Bank of Nigeria.