Access Bank $500m Senior Unsecured Eurobond Launch Records 3X Oversubscription

 

Access Bank
Access Bank

Access Bank Plc says it has successfully launched a $500 million  Senior Unsecured Eurobond, as part of its Global Medium-Term Note Programme.
According to a notice signed by the Company’s Secretary, Sunday Ekwochi, and hosted on the Nigerian Exchange Limited (NGX) website, the transaction recorded a massive interest from investors globally, including the United States, Europe, Middle East, Asia and Africa, anchored by a number of large tickets.
The offering achieved the lowest (outstanding) Nigerian bank Eurobond coupon, supported by an over 3x oversubscribed orderbook of over $1.6 billion, which represents the largest orderbook ever for a Nigerian bank Eurobond transaction.

The bond which will mature on the 21st of September, 2026, was issued with a yield and coupon of 6.125 per cent, with interest payable semi-annually in arrears.

The coupon of 6.125 per cent is another first in the corporate Eurobond issuance space.
Interestingly, the bond is already trading at a premium from issue levels with bids around 5.89 per cent levels whilst offers are around 5.78 per cent as the unmet demand from the auction filtered into the secondary market.

Access Bank revealed that the net proceeds of the Eurobond will be used to provide medium term funding in a bid to enhance its capacity and support its general banking purposes.
Commenting on the Eurobond Issuance, the Group Managing Director of Access Bank, Dr Herbert Wigwe said: ’’At Access Bank we remain committed to our vision to become the World’s Most Respected African Bank and Africa’s Gateway to the World. The success of our US$500 million Senior Unsecured Eurobond is yet another stride towards the realisation of that vision and underscores our investors’ confidence in the Access Bank story. We are pleased with the diversity of the order book and the success of this issuance further strengthens our resolve to deliver on our strategic objectives.’’
The Senior Eurobond is a 5-year unsecured note under the Bank’s $1.5billion Global Note programme
Absa, Barclays Bank, JP Morgan and Standard Chartered acted as Joint Bookrunners on the transaction, and Chapel Hill Denham and Rand Merchant Bank acted as Financial Advisors and Joint Bookrunners.

NNPC Consolidates On Gains, Publishes 2020 Audited Financial Statements

NNPC logo
NNPC logo

Following up on President Muhammadu Buhari’s recent announcement of the
declaration of two hundred and eighty seven billion Naira (N287bn) Profit After Tax (PAT) in year 2020 by the Nigerian National Petroleum Corporation (NNPC), the Corporation has consolidated on the remarkable achievement, by publishing the Audited Financial Statements (AFS) on its official website.

It would be recalled that while announcing the outstanding feat a little over a fortnight ago,
President Muhammadu Buhari, who is also the Minister of Petroleum Resources,
had said: “I have further directed the Nigerian National Petroleum Corporation to timely publish the Audited Financial Statements in line with the requirements of the law and as follow up to our commitment to ensuring transparency and accountability by public institutions.”

In compliance with the President’s directive, the NNPC has fulfilled this very important statutory requirement by publishing its Audited Financial Statements today.

Among the highlights of the 2020 AFS is the Corporation’s
group profit which rose from a loss position of N1.7billion in 2019 to a profit of
N287bn in 2020, for the first time in 44 years.

The Group Managing Director of the NNPC Mal. Mele Kyari, had at various times since the President’s declaration of profit, attributed the turnaround to aggressive cost cutting, automation of the system and renegotiation of contracts downwards by about 30 per cent, among other tough measures.

Further highlights of the AFS revealed that while the Corporation’s group financial
position increased in total current assets by 18.7% compared to that of 2019, its
total current liabilities increased by 11.4% within the same period.

The group’s working capital remained below the line at N4.56trillion in 2020 as
against N4.44trillion in 2019, the AFS further revealed.

Similarly, the Corporation’s group revenue for the 2020 financial year stood at
N3.718trillion as against N4.634trillion in 2019, a decrease that could be attributed to the decline in the production and price of crude oil due to the global impact of the
Covid-19 pandemic.

This is the third consecutive year that the NNPC is publishing its AFS, having done so for 2018 and 2019.

The full document of the NNPC 2020 AFS is available on the Corporation’s website.https://www.nnpcgroup.com/Pages/Home.aspx

Oil In Focus Ahead Of OPEC+ Meeting

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FXTM Logo

By Lukman Otunuga,
Senior Research Analyst at FXTM

August was a turbulent month for oil prices as conflicting themes caused the commodity to appreciate and depreciate on alternate weeks.

Despite bulls dominating the scene last week, both Brent and WTI Crude have posted their first monthly loss since March. Persistent worries over the Delta variant may spell trouble for oil as September kicks off while widespread flooding from Hurricane Ida could keep bears in the vicinity. With these negative themes stacked against oil and clouding the demand outlook, all eyes will be on the highly anticipated OPEC+ meeting on Wednesday afternoon.

Will OPEC+ Stick to Planned Output Hike?

Markets widely expect the cartel to maintain its current plan to increase production by 400,000 barrels per day despite pressure from the United States to pump more.

The question is whether expectations match or differ from reality?

Given the ongoing developments revolving around Covid-19, the cartel may reiterate that the variant poses a particular risk and may tweak production hikes accordingly. This could be in the form of reducing or halting the 400,000 bpd increases if the demand outlook starts to look unfavourable.

On the flip side, the positive vaccine-related developments across the globe have boosted optimism over a pickup in fuel demand. Looking beyond the risk associated with the Delta menace, other factors could fuel the demand recovery – allowing OPEC+ to stick with its production revival plan until the end of December 2022.

Demand outlook set to improve?

It was only a few weeks ago that the International Energy Agency (IEA) cut its forecast for global oil demand for the rest of 2021 due to the Delta variant. Interestingly, OPEC stuck to its prediction of a strong recovery in world oil demand this year and further growth next year.

OPEC could be on the money, especially when factoring in the stalled prospects of renewed Iranian exports, ongoing government stimulus, and improvement in gasoline demand as road and airline travel rebound. It does not end here. Demand is reportedly improving in the world’s second-largest oil consumer with traffic on China’s busy streets recovering as lockdown restrictions ease.

Let’s not forget about the US jobs report

The NFP report is likely to be the biggest market-moving event of the week, especially after Federal Reserve Chair Jerome Powel offered no concrete taper signals at Jackson Hole last Friday.
Investors will closely scrutinize the jobs report for fresh clues to when the Federal Reserve will begin asset tapering. A strong jobs report may boost sentiment towards the US economy and fuel taper bets consequently propelling the dollar higher. As the value of the dollar rises, the prices of both Brent and WTI crude fall. Alternatively, a disappointing jobs report could cool taper talk bets, essentially weakening the dollar – pushing oil prices higher.

Brent & Crude remain in bearish channel

Taking a look at the technical picture, Brent crude remains in a bearish channel on the daily charts. Despite the sharp rebound witnessed last week, the commodity concluded August roughly 4% lower. The recent candlesticks on the daily charts suggest that bulls could be exhausted with sustained weakness below $73 triggering a decline back towards $70.30 – a level where the 100-day Simple Moving Average resides. A break below this point could see Brent sink towards $67.46, $67 and $64.60, respectively. Alternatively, a solid daily close above $73 may pave a path towards $75 and potentially higher.

We see a similar story on WTI Crude trading within a bearish channel on the daily charts. Resistance can be found at around $69.50 with the 50-day Simple Moving Average just above this level. A strong breakout and daily close beyond $69.50 could encourage a move towards $72 and $73.50, respectively. Should $69.50 prove to be reliable resistance, a decline towards $67, $65, and $61.50 could be on the cards.

Ultimately, where oil prices conclude this week is likely to be influenced by the OPEC+ meeting
and NFP report.

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NNPC ₦287bn Profit: Kyari Explains Facts Behind The Figures  …As Sylva, Board Members Hail Corporation

Mele Kyari,GMD, NNPC
Mele Kyari,GMD, NNPC

Following the Presidential applause for the Nigerian National Petroleum Corporation (NNPC) on its posting of ₦287bn profit after tax in the 2020 financial year, the Group Managing Director, Mallam Mele Kyari, has given an insight into the measures adopted by his management to achieve the feat.

Speaking at a press conference Thursday at the NNPC Towers, Abuja, the GMD attributed the turn-around of the Corporation from a loss of ₦803bn in 2018 to profit of ₦287bn in 2020 to the aggressive implementation of cost-cutting measures, improved efficiency through business automation, emphasis on commercially-focused investments and non-interference in the management of the Corporation from any quarters.

The GMD also added that the Corporation saved a lot of cost through contract renegotiation by up to 30% on the heels of the Covid-19 pandemic, introduction of technology that drastically cut travel cost through reduction in in-person meetings and the general automation of processes that enhanced efficiency across the group’s businesses.

He said Management’s focus on the prioritization of investment and staff welfare also helped in boosting the Corporation’s overall productivity and bottom line.

Speaking earlier while kick-starting the press conference, the Alternate Chairman of the NNPC Board of Directors and Minister of State for Petroleum Resources, Chief Timipre Sylva, who joined the press conference virtually, congratulated the GMD, Management and staff of the Corporation on the feat of posting profit for the first time since its incorporation in 1977.

He said NNPC’s emergence from loss into profitability, coming shortly after the signing into law of the Petroleum Industry Bill, was a proud moment for him, adding that this was a season of achievements for the nation’s oil and gas sector.

Members of the NNPC Board, Chief Pius Akinyelure, Mallam Mohammed Lawal, Dr. Tajudeen Umar and Mrs Lami Onayi Ahmed, who were also present at the event, also echoed the Minister and congratulated the Management and staff of the Corporation on the feat.

H1 2021:Zenith Bank Maintains Growth Momentum Despite Monumental Headwinds

Zenith Bank Plc
Zenith Bank Plc

In clear demonstration of its resilience, Zenith Bank Plc has announced its audited results for the half-year ended 30 June 2021, recording positive growth across key financial metrics despite a challenging macroeconomic environment exacerbated by the COVID 19 pandemic.

According to the bank’s audited half-year financial results presented to the Nigerian Exchange (NGX), the Group recorded a growth in profit before tax of 3% from NGN114 billion reported in H1 2020 to NGN117 billion in H1 2021. The Group also recorded a 9% growth in non-interest income from NGN116 billion in June 2020 to NGN127 billion in June 2021. Overall, the significant reduction in interest expense by 26% and growth in non-interest income by 9% culminated in improved profitability.

The Group’s retail journey continues to deliver positive results as retail deposits grew by NGN38.2 billion from NGN1.72 trillion to NGN1.76 trillion year-to-date (YTD). Savings balances grew marginally by 2% YTD to close at NGN1.18 trillion from NGN1.16 trillion as at December 2020. The drive for increased retail deposits and a low-interest yield environment helped reduce the cost of funding from 2.2% to 1.3% in the current period. Operating expenses grew by 10% YoY, but growth remains below the inflation rate, while the Group improved its Earnings per Share (EPS) which grew 2% from NGN3.30 to NGN3.38 for the half-year ended June 2021.

The Group also increased total customer deposits by 8% to close the period at NGN5.77 trillion, demonstrating growth in the market share. Total assets grew marginally to NGN8.52 trillion as at 30 June 2021 from NGN8.48 trillion recorded as at 31 December 2020. Despite the COVID-19 pandemic induced challenges and the challenging operating environment, the Group grew its risk assets as gross loans were up by 3% YTD, from NGN2.92 trillion to NGN2.99 trillion. This was conservatively achieved at a low Non-Performance Loans (NPL) ratio of 4.51% (FYE 2020: 4.29%) and a reduced cost of risk of 1.3% (June 2020: 1.8%). Prudential ratios such as liquidity and capital adequacy also remained above regulatory thresholds at 69.9% and 22.0%, respectively.

Despite the continued prevalence of the COVID-19 pandemic, there is cautious optimism that the global economy will continue to recover as vaccination programmes are intensified. On the domestic economy, Nigeria’s Gross Domestic Product (GDP) grew by 5.01% in the second quarter of 2021, and the inflation rate, which peaked in March 2021 at 18.17%, is gradually trending down (currently at 17.38% as at July 2021). The Group is well-positioned to maximise the opportunities that these recovering fundamentals present while leveraging technology to expand its retail footprints to deliver improved returns to all its stakeholders.

In recognition of its track record of excellent performance, Zenith Bank was voted as Best Commercial Bank in Nigeria in the World Finance Banking Awards 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, Best Bank in Nigeria in the Global Finance World’s Best Banks Awards 2020 and 2021, and Best in Corporate Governance ‘Financial Services’ Africa 2020 and 2021 by the Ethical Boardroom. Also, the bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, and Number One Bank in Nigeria by Tier-1 Capital in the “2021 Top 1000 World Banks” Ranking by The Banker Magazine. The bank was also recognised as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, Retail Bank of the year at the 2020 BusinessDay Banks and Other Financial Institutions (BOFI) Awards, and Best Company in Promotion of Good Health and Well-Being as well as Best Company in Promotion of Gender Equality and Women Empowerment at the Sustainability, Enterprise and Responsibility (SERAS) Awards 2020.

Zenith Bank has grown enormously in 30 years to become Nigeria’s largest and one of Africa’s largest financial institutions by tier-1 capital, with shareholders’ funds of NGN1.1 trillion ($2.64 billion) as at 31st December 2020. The Bank continues to distinguish itself in the Nigerian financial services industry through superior service offerings, unique customer experience and sound financial indices. Zenith Bank is the clear leader in the digital space with several firsts in the deployment of innovative products, solutions and an assortment of alternative channels that ensure convenience, speed and safety of transactions.

CSCS Advocates Collective Security Vigilance Over The Cyber Space

CSCS logo
CSCS logo

The Central Securities Clearing System (CSCS) Plc, Nigeria’s capital market infrastructure has called for cyber vigilance by all stakeholders.

This call was made at a webinar on cybersecurity organized by the company recently.

In this year’s annual conference themed: “Cyber Security: The Challenges We Face Today”, CSCS pooled leading industry professionals in Information Technology and Cybersecurity to discuss innovative ways of enhancing security architecture of firms, with emphasis on the role of different stakeholders, especially employees and customers in protecting the integrity of information technology networks and systems.

The conference which was attended by participants from various sectors of the economy was moderated by Mrs. Isioma Lawal, Acting Head, Enterprise Risk Management and Resilience Services at CSCS Plc, with six panelists:  Mr. Harrison Nnaji, Chief Information Security Officer, First Bank Group; Ms. Funmilola Odumuboni, Senior Manager, Cyber Risk Services, Deloitte; Mr. Phil Menny, Regional Director, West and East Africa, Alliance Media Group; Mr. Tobe Nnadozie, Divisional Head, Business Technology and Digital Innovation, CSCS Plc and Mr. Walid Bou Abssi, Business Development Manager, Shelt Global Limited.

In his opening remarks, the Managing Director/Chief Executive Officer of CSCS Plc, Mr. Haruna Jalo-Waziri said: “the conference, the third in the series, is timely given the increasing global incidence of cyber-attacks, especially as network compromise arising from remote connections associated with work-from-home presents new forms of cybersecurity exposures. The prolonged pandemic occasioned by COVID-19 has increased digitization and adoption of new technologies, albeit presenting new risks to cybersecurity”.

According to Mr. Jalo-Waziri: “As we surf the internet and connect to different applications either on our official networks or personal devices, we need to protect ourselves and our ecosystem from the rising vulnerabilities of cybercrimes. At CSCS, we believe everyone’s awareness and conscious practice of best approaches in cybersecurity should be a key aspect of how people live and work in today’s environment, especially as everyone needs to take responsibility for protecting the integrity of networks and systems, not just for our personal interest but also in ensuring the integrity and safety of our ecosystem and broader market. Cybersecurity is not the responsibility of the IT officers, rather it’s a collective responsibility of everyone connected to the system, including customers, who we must continuously educate on best practices to prevent them from being the weakest link in our systems”. 

Responding to a question, Mr. Harrison Nnaji said: “the lingering COVID-19 will lead to increased insider threat, data breaches, and series of home network or work-from-home attack this year.” 
He went further to discuss his perspective regarding cyber threats that are likely to happen in the near future and advocated that everyone should be vigilant to avoid being victims. According to him, “Increased system infiltration, dangerous fileless and ransomware attack, increased attack on key cloud assets (crypto platforms, supply chain, blockchain, Internet of Things, Open API, and interconnected systems), enterprise software and remote communication platforms will be a key target of threat actors.” .

For Ms. Funmilola Odumuboni “the major tenets of cybersecurity are confidentiality, integrity and availability.” Speaking to these tenets, Ms. Odumuboni said: “the information meant to be kept secure are indeed secure and kept out of public domain; the information at hand is correct and the systems are available to use when one wants to use them.”  She noted: “A cyber-attack occurs every 39 seconds and cybercrimes increased by nearly 300% following the COVID-19 outbreak. Also, human error is the primary cause of cybersecurity breaches, accounting for 95% of all data breaches; 86% of breaches were financially motivated and 10% were motivated by espionage and 36% of breaches involved phishing, 11% more than last year”.

Also, speaking from the financial markets and investor protection perspectives, the Head, Start-Up Operations at CSCS Plc, Mr. Folagbade Adeyemi said; “the Nigerian market has not been exempted, as fraudsters continue to attempt exploitation of probable vulnerabilities to cause significant investor loss. According to him “In order to prevent fraudsters from exploiting systemic gaps by assuming an individual identity, investors should take ownership of their identity and increase the effort level for identity theft by carrying out account updates such as contact information, strengthen access controls and periodically reviewing their accounts to ensure safety”.

 

COVI-19: CMSCC Donates 2000 Protective Suits To Lagos

SEC
SEC
The Capital Market Support Committee for COVID-19 (CMSCC) has donated 2000 protective suits to the Lagos State Government to help battle the current third wave of COVID-19 pandemic in the state.

The CMSCC is a Securities and Exchange Commission (SEC) led committee, comprised of the capital market community and set up to galvanize the capital market ecosystem to play an active role in curbing the spread of COVID-19 in Nigeria. 

 Chief Executive Officer of NASD and member of  CMSCC, Mr. Bola Ajomale, while presenting the donation at the Ministry Health, Secretariat, Alausa, Ikeja Lagos commended the government’s sustained efforts to fighting the virus in the state.

“We thank God for continuous safety and for your team for protecting Lagos. CMSCC take the issue of fighting COVID-19 seriously and we believe that all stakeholders must work together to fight this pandemic. We are donating these 2000 protective suites to continue our commitment and collaboration with the Lagos State to fight the scourge,” he said.

Ajomale noted that CMSCC had in the past donated ambulance and other protective devices to Lagos State Government to support fight against COVID-19.

The Commissioner for Health, Lagos state, professor Akin Abayomi, while receiving the donation, lauded the efforts of CMSCC  and other private sector organisations for the way they have rallied around the government with their support in the fight against this pandemic.

Abayomi observed that the donation of the protective suites will go down very well with health workers because they are personal protective equipment for the people in the frontlines, saying “this is something that we appreciate.”

“We are happy that you know that we are not yet out of woods, the battle still on. We are under stress as government not only on human resources but financially. As regards economy and health, the whole world is under stress too. Managing the economy and health is very delicate, if economy is sick, it can lead to breakdown of law and order. We really appreciate the donation and we will deploy and use it effectively to battle the third wave,” he said

Zonal coordinator Securities and Exchange Commission, Ben Adams and the Team lead, Corporate Sustainability and Responsibility, Nigerian Exchange Limited (NGX), Mr. Olude Onajin were among the dignitaries that witnessed the donation.

SEC Harps On Accelerate Domestic Production And Employment Via Resilient Capital Market

DG, SEC, Lamido Yuguda
DG, SEC, Lamido Yuguda
The Securities and Exchange Commission has expressed the need for the capital market to be strengthened to accelerate domestic production and employment given the direct correlation between increase in production and job creation. 

To achieve this, Director General of the SEC, Mr. Lamido Yuguda said there is the need to leverage the capital market for intermediation by facilitating access to capital. 

This he said can be done by making it easy for corporates to access long-term finance in an efficient manner, the capital market enhances the production levels of companies, thereby improving the capacity of such companies to expand their operations and employ additional labour. 

Lamido spoke at the Annual workshop of the Chartered Institute of Stockbrokers with the theme “Leveraging the Financial markets to achieve double digit economic growth for Nigeria” held in Abuja Thursday.

The SEC boss posited that it should truly not be difficult to achieve double digit growth in Nigeria given that most key factors of production like a large vibrant youthful population, arable land, abundant rainfall, good drainage, and a large and growing pool of savings are available. 

He said “Infrastructure is the area where we have a major problem, and here I mean roads and rail transportation, power generation and distribution, health infrastructure, and the like. I believe the capital can play a vital role in the financing of infrastructure and forums such as this one would do well to dwell on this important subject.

“Recall that at independence in 1960 the domestic savings pool was rather limited, yet the new nation was able to mobilise adequate funds from both domestic and foreign sources to fund the construction of highways, railways and large power projects. These same projects are in a dismal state today when the population has grown more than threefold. The Commission is increasingly focusing its attention on this subject because of its impact on economic development and the quality of life of our citizens”.

According to Yuguda the theme of the workshop “Leveraging the Financial Markets to Achieve Double Digit Economic Growth for Nigeria” is very relevant, particularly for a developing economy like Nigeria. With a GDP growth rate of -1.92% in 2020 and an IMF growth forecast of only 2.5% for 2021, Nigeria requires higher and preferably double-digit growth rate to be able to reduce poverty and provide for the welfare of its citizens. In addition, he said there is a need to urgently address the country’s high unemployment rate which currently stands at over 30%.

The SEC DG said by serving these functions, the financial sector often facilitates domestic production and employment, especially when capital flows efficiently into the production process, leading to employment generation, increase in household disposable income, improved purchasing power and ultimately resulting in higher economic growth. 

Yuguda disclosed that the Securities and Exchange Commission, as the apex body responsible for regulating and developing the Nigerian capital market undertakes specific activities to ensure investor protection, preserve the integrity of the market and improve its overall efficiency through registration, surveillance and enforcement activities.

The Commission he stated, also supports market development through investor education and the introduction of robust frameworks for new products and processes in collaboration with market stakeholders adding “the activities of the Commission are necessary to ensure a well -regulated, effective, deep and liquid capital market which is crucial for promoting optimal capital allocation and intermediation to finance productive investment and generate much needed employment in the Nigerian economy”. 

According to him, “Over the past decade, the Nigerian capital market has grown significantly with major uptick in activities both in the equity and bond markets, including leaps in the growth and size of Collective Investment Schemes. The growth however slowed in the past 3 to 4 years owing to a recessionary trend experienced in the economy. This is because the Nigerian capital market closely mirrors the Nigerian economy and feels the full effect of the prevailing economic situation of the country. 

“To further increase the capital market’s contribution to the growth and development of the Nigerian economy, the Commission is currently implementing its 10-year Capital Market Master Plan (2015-2025). The Commission is midway into the implementation and has embarked on a review of the Plan – in collaboration with the relevant market stakeholders – to reflect new realities and sharpen its focus. 

He therefore assured that the Commission will continue to work assiduously towards achieving its mission of developing and regulating a capital market that is dynamic, fair, transparent and efficient, to contribute to the nation’s economic development.

“I believe that if we all contribute our quota, we can achieve a Nigeria characterized by sustainable growth and increased job creation through efficient intermediation and allocation of resources in the financial market” he added. 

In his remarks, Mr. Olatunde Amolegbe President/Chairman of Council of CIS said Nigeria is blessed with immense human and natural resources, but expressed dismay that the country is listed among the poorest countries in the world in term of per capita income. 

“Just recently, in 2020, the country fell into its second economic recession in 5 years, although largely attributed to the covid-19 pandemic which affected all countries in the world. We exited the recession in the fourth quarter of the same year 2020

“However, the critical point we have to note is that, historically, it has been observed that poorer countries need a much faster rate of GDP growth than the advanced economies of the world in to maintain standards of living as well as keep up with higher population growth rate.

Amolegbe said the theme for this year’s workshop has become imperative to drive the Nigerian economy as driving the economy will require financing of the right form, type, and mix. 

He said despite governments best efforts, the local financial market cannot be said to have been utilized optimally as at yet adding that the trend must be reviewed and reversed. 

“Not long ago the Capital Market use was the fulcrum of Fund Raising by all the different tiers of government. Such fund is always utilized for infrastructure development. Full subscription to government’s revenue bond which is a form of borrowing is was widely used as the risk level is almost nil.

“Besides, governments’ participation in the market is a win-win affairs for the government, the market, and investors. The time has come for all tiers of government to stage a comeback to the financial market to enhance capital raise for infrastructure development. Our seasoned facilitators shall surely do justice to this time-tested Theme today.

“It is obvious that an accelerated development of infrastructure will bring about job creation and employment opportunities with multiplier effects on the nation’s GDP. China’s GDP grows at an average of 10% per year. This has lifted over 800 million people out of poverty in recent years” He stated.

 

Nigerian Inflation Slows…What Next?

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FXTM Logo
In an encouraging development, inflation in Africa’s largest economy fell for the fourth consecutive month in July.

Consumer prices rose 17.4% from a year earlier, lower than the 17.8% witnessed in June and below the 17.5% estimates in a Bloomberg survey. While other major countries across the world are grappling with rising inflationary pressures, Nigeria seems to be experiencing a period of cooling prices. This is a welcome development for the Central Bank of Nigeria and offers more room to leave interest rates unchanged for the time being in an effort to stimulate economic growth.

USD on the rise after Fed taper steps

We wrote yesterday about how the FOMC Minutes would offer clues on when the bank might start tapering its bond purchases. Well, officials confirmed that inflation was now comfortably above their average 2% target and one or two more strong job reports will now be required for “substantial progress” to be made in the economy.

The Fed is still split on timing, but most members judged tapering could start this year. The minutes do not seem to set up a taper as early as next month. But the timetable is well within the consensus on Wall Street. This means with the bumper July payrolls already working their magic (and notably after these minutes), a solid August report could see a taper pathway announced at the September meeting.

Markets reacted quite modestly to the minutes initially. But this morning, dollar bulls are emboldened and have pushed to new long-term highs. The DXY breached the March top at 93.43 so a strong weekly close is probably needed to really rubber stamp the next leg higher for the greenback. Bulls will aim for last year’s November peak at 94.28, while long-term buyers may have the September high at 94.74. in their sights.

Oil sinking on broader market selloff

Commodities and oil have come under more pressure this morning with Brent off nearly 1% today and below $67. The spread of the Delta variant is clouding the demand picture. Output data from China also showed the least crude is being processed by Chinese refiners in 14 months. No doubt OPEC+ will be keeping their eye on prices and the demand side. The group recently left its forecasts unchanged and any rollback in the easing of production cuts could spark ire from the US.

Regarding technicals, May lows look like next major support at $64.60 with the 200-day moving average just below $64.

For more information, please visit: FXTM

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Written by Lukman Otunuga, Senior Research Analyst at FXTM. on 19/08/2021

SEC To Collaborate On Dispute Resolution In Capital Market 

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SEC Nigeria
SEC Nigeria
The Securities and Exchange Commission has expressed its readiness to collaborate with relevant Alternative Dispute Resolution professionals as a means to ensuring effective dispute resolution in the capital market.

Director General of the SEC, Mr. Lamido Yuguda said this is key in sustaining investment in the capital market.

The SEC DG stated this when the Abuja Chapter of the Chartered Institute of Arbitrators (CIArb) led by its chairman, Mr Sola Ephraim-Oluwanuga held a meeting with him in Abuja Wednesday.

Yuguda stated that the need for a veritable dispute resolution mechanism has long been recognised in the capital market. He said that traditional litigious and adversarial dispute resolution mechanism has fallen short of achieving its purpose, adding that investment in the sector would suffer if disputes among investors are not well resolved. 

According to the SEC DG:  ” The whole nature of the market is that people come together to make investments. But along the line, something happens and the same people actually fall out.

“And the problem with investment is that if the true parties to an investment fall out, investment falls. We understand that both parties usually cling to their positions but there is a superior situation which could benefit both parties. This is where an arbitrator is needed to actually bring them to that position. And that arbitrator, who is seen as independent, performs his professional duty by talking to the parties.”

He said the visit by the members of the institute could not have come at a better time, assuring that the commission partnering with institute whose members are specialised in area of dispute resolution is actually highly beneficial to both the SEC and practitioners in the capital market. 

Earlier, the CIArb Chairman, Mr. Ephraim-Oluwanuga said the institute was desirous of partnering with SEC to deepen the access to justice in the Securities Industry.  

He said CIArb has trained competent International arbitrators with demonstrable experience in capital market issues, adding that the institute can also assist the SEC in training and capacity building of its personnel. 

“CIArb can train subject matter experts on securities dispute resolution. Also, industry may also put CIArb in its agreement as an Appointing authority to any dispute involving Arbitration, whilst preferring its members to serve as party nominated arbitrators in the sector” He added.

 
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