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Investment › Re: CBN Bans Rice, Cement Importers, Others From Forex Market by pipz(op): 8:26am On Jun 25, 2015

The CBN released a circular yesterday (23 June) that excludes importers of some goods and services from accessing foreign exchange at the Nigerian FX market. These goods and services include rice, cement, meat, vegetables, poultry and specific building materials (see full list on pg 2 of attached circular).

The last time we saw similar action from the CBN was on November 6, when it excluded some transactions from the official FX (RDAS) window. The difference between this policy decision and the one from November 6, is that then FX demand was diverted to the interbank window – hence the depreciation of the naira on the interbank market at the time, that we saw as a tacit devaluation. This time around the CBN is diverting demand away from the interbank window.

We see this policy move as
1. Confirmation that FX supply remains extremely tight.
2. But more worryingly, it suggests that the central bank remains reluctant to devalue the naira. The central bank is delaying what we think is an inevitable devaluation, that is coming following a $2.3bn drop in FX reserves since the February devaluation, whereafter the naira was essentially pegged.

Implications: The CBN says part of the motivation behind this policy is to encourage local production of the excluded items. But we know part of the reason the excluded items are imported is because of insufficient domestic supply. In this instance, the central bank suggests that importers use their own FX funds to import these goods.

1. The reality is most importers do not have their own FX funds. We thus expect this policy to result in importers of the excluded goods and services turning to the black market for FX. We think this will result in a significant depreciation of the naira on the black market, which means the spread between the interbank and black market exchange rate will widen significantly. (The black market exchange rate is presently c. NGN220/$1 vs interbank rate of NGN199/$1.)

2. As much as the CBN says the excluded items have not been banned, we think the central bank has effectively done so because there is not enough FX liquidity in the black market to support the demand for these imports.

3. Substituting the excluded imports with domestic production will take a while, and in the meantime we expect a shortage of some of these excluded items to develop. As the cost of importing the excluded items will rise and the supply of some these items will fall, we expect their prices to increase sharply. This implies an acceleration of Nigeria’s inflation rate. (Inflation rose to 9.0% YoY in May, from 8.7% YoY in April.) Higher inflation implies tight monetary policy that is already constricting bank lending will be with us for longer.

4. Positive for cement: This policy measure may be positive for cement companies, as it would weed out importers that were importing cement in bulk and repackaging under their own brand.

We think the expectation that the new administration will recover some misappropriated funds that will help shore up FX reserves, may be why the central bank is holding off on a devaluation. We believe this recovery process may be a lot more convoluted and lengthy than is hoped, and the naira may not hold up for that long. Moreover, a widening spread between the interbank and black market rate is likely to increase the amount by which the market expects the naira to devalue (from 10-15% today).

Renaissance Capital

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Investment › Chevron Selling 40 Pct Stakes In Two More Nigerian Oil Blocks by pipz(op): 8:08am On Jun 25, 2015

(Reuters) - U.S. oil company Chevron Corp said on Wednesday it was selling its 40 percent stakes in two Nigerian shallow water offshore oil blocks.

Chevron Nigeria Limited said in a statement it was offering Oil Mining Leases (OML) 86 and 88 in the Niger Delta area of Nigeria for sale

Investment › Nigeria Overtakes Saudi As Number One Exporter Of Crude To India by pipz(op): 7:47am On Jun 25, 2015

In an era where all you hear these days are bad news about Nigeria in the oil industry space we have just been inundated with a rather heart warming news.
Reuters reports, Saudi Arabia lost its spot last month as India’s top oil supplier to Nigeria for the first time in at least four years. This is coming at a time where Nigeria has been finding it difficult to sell its much sort after Bonny Light crude at a premium.
According to the article, Indian refiners have been switching out of long-term contracts with Middle East suppliers in favour of spot purchases, often African oil.

The share of African oil, mainly from Nigeria and Angola, jumped to 26 percent of India’s total imports in May, up from around 15.5 percent in April and the highest in more than four years, according to tracking data on tanker arrivals.

At the same time, the Middle East share fell to 54 percent in May from 61 percent, with Saudi Arabia supplying some 732,400 barrels per day (bpd) compared with Nigeria’s 745,200 bpd.
Despite this good news, danger lurks on the horizon as Saudi is not relenting on its efforts to regain market share. The Oil rich Gulf Nation is said to have promised Indians free shipping provided they purchase their oil an offer that Nigeria is unlikely to match.

http://nairametrics.com/huray-nigeria-overtakes-saudi-as-number-1-exporter-of-crude-to-india/?utm_source=ReviveOldPost&utm_medium=social&utm_campaign=ReviveOldPost

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Investment › Re: CBN Bans Rice, Cement Importers, Others From Forex Market by pipz(op): 6:00am On Jun 25, 2015

See the full list below

http://i2.wp.com/nairametrics.com/wp-content/uploads/2015/06/CBN-Banned-Items-1.png

http://i0.wp.com/nairametrics.com/wp-content/uploads/2015/06/CBN-Banned-items-2.png

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Investment › Re: CBN Bans Rice, Cement Importers, Others From Forex Market by pipz(op): 3:31pm On Jun 24, 2015

NairaQuest:
This is a very poor policy. Those affected will resort to the black market to get the dollar they need and that will put pressure on the naira. I see the Naira trading at 250 to the dollar by December

The price of uncle Ben's rice will increase and the prices of the other affected items and thar may fuel inflation

Unless there is an alternative for those things, Nigerians are in for a bad season

Na only Uncle Ben's rice huh

? Rice in Nigeria is 95% imported so your normal cost for Dangote rice will surely increase.

Building materials will increase as well.

They say this is to encourage local production of these products. Local production with No power. No light, No NEPA.

I'm scared for this country.

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Investment › CBN Bans Rice, Cement Importers, Others From Forex Market by pipz(op): 9:32am On Jun 24, 2015

In order to beef up the fast depleting external reserves, the Central Bank of Nigeria on Tuesday stopped the sales of foreign exchange to importers of rice, private jets, textiles, tomato paste, poultry products and 35 other times.

The CBN, in a circular dated June 23, 2015, stated that the implementation of the policy would help to conserve foreign reserves and facilitate the resuscitation of domestic industries as well as generate employment.

The circular, which was signed by the Director, Trade and Exchange, CBN, Mr. Olakanmi Gbadamosi, stated that it was imperative to exclude importers of some goods and services from accessing foreign exchange at the Nigerian foreign exchange market in order to encourage local production of the items.

It read in part, “In the continuing efforts to sustain the stability of the forex market and ensure efficient utilisation of forex and the derivation of optimum benefits from goods and services imported into the country, it has become imperative to exclude importers of some goods and services from accessing foreign exchange at the Nigerian forex markets in order to encourage local production of these items.

“The implementation of the policy will help conserve foreign reserves as well as facilitate the resuscitation of domestic industries and improve employment generation.

“For the avoidance of doubt, please note that the importation of these items are not banned, thus importers desirous of importing these items shall do so using their funds without any recourse to the Nigerian foreign exchange market.”

The list of 40 items include cement, margarine, palm kernel, vegetable oil, poultry products (chicken, eggs and turkey), Indian incense, tinned fish in sauce (Geisha, Sardines), cold rolled steel sheets, galvanized steel, roofing sheets, wheelbarrows, head pans, metal boxes and containers, and enamelware.

Others are steel drum, steel pipes, wire mesh, steel nails, wire rods, security wire, wood particle and board, wood fibre boards and panel, plywood board and panel, wooden doors, toothpicks, glass and glassware, kitchen utensils, tableware, tiles and wooden fabrics, plastic and rubber products, and soap and cosmetics.

The CBN Governor, Mr. Godwin Emefiele, had a few months ago said the bank would bar importers of toothpicks, rice and other products from accessing forex at the nation’s forex markets.

The latest policy is expected to make the prices of the listed items to shoot up in the market as importers of the items will now source for foreign currencies on the street market also called black market.

The naira, which goes for 199 against the dollar at the interbank market, now sell for 222 at the street market.

http://www.punchng.com/news/cbn-stops-forex-sales-to-rice-private-jet-importers/

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Investment › Re: Treasury Bills In Nigeria by pipz(m): 8:48am On Jun 23, 2015

Hi All,

There's a Primary auction holding tomorrow.

Politics › Re: FG Appeals Orders On Kashamu’s Arrest, Extradition by pipz(m): 3:19pm On Jun 20, 2015

nortcentrallord:
These are not matters for road side argument and petty gossip experts to pass verdict. What is the statutory right of the agency? Really, you know nothing about the constitution on extradition. Stop exposing your ignorance.

Barrister, educate us please.

Politics › Re: FG Appeals Orders On Kashamu’s Arrest, Extradition by pipz(m): 3:17pm On Jun 20, 2015

ikaboy:
This man for just stay away from politics. Your hand know clean, u de run mouth.

From my Grandma's words. They hide u in a wardrobe then u go eating crackers....

Kashamu, u need to listen to 10 Crack Commandments. #LayLow

Crime › Re: I Never Imagined My Three Friends Could Gang Rape Me(Pictures) by pipz(m): 9:04am On Jun 20, 2015

londongal03:
YoLuba peeps and Rape is like akara and bread ......INDIANs of Nigeria

Those monsters that raped Cynthia Osukogu to death are they yoluba huh

Please please .... U shld be condemning this act not spread more hate

Investment › Re: Nigeria Capital Market. by pipz(op): 8:42am On Jun 19, 2015

Bilfinger Says It Will Sell Its Entire Stake In Julius Berger

The largest single shareholder of Julius Berger Plc, Bilfinger has announced it is planning to dispose of its shares in Julius Berger Plc.

Bilfinger owns (as at March 2015) 30.3% shares in Julius Berger with the next largest single shareholder being Watertown Energy Ltd with 10%.

According the press statement, the reason for their exit is based on Bilfinger’s strategic realignment from a construction company to an engineering and services group in the last decade which saw Bilfinger SE divest totally from its construction activities.

This is also not the first time, Julius Berger is selling down its stakes in Nigeria as it sold off 10% to Watertown Energy Ltd (owned by Nestoil) in 2012. Julius Berger in 2014 also appeared to have sold about 3.1% of its equity to Goldstone Estates Ltd another shareholder of Julius Berger.

This however, is confirmation that it is exiting the company completely even though they didn’t confirm if they will be coming back to Nigeria in any form apart from construction.

A 33% sale at current prices (N50) will cost any purchaser about N20 billion and very well within the range of interested acquirers.

http://nairametrics.com/we-quit-bilfinger-says-it-will-sell-its-entire-stake-in-julius-berger/

Investment › Re: Nigeria Capital Market. by pipz(op): 8:40am On Jun 19, 2015

Foreign investor divests from Julius Berger Nigeria

Bilfinger SE, the majority core investor in Julius Berger Nigeria Plc, would sell its entire equity stake in the Nigerian company this month, it was learnt yesterday.
A regulatory filing obtained yesterday by The Nation indicated that Bilfinger SE, which holds 33.4 per cent in Julius Berger Nigeria, has decided to sell its equity stake and exit the company.
Bilfinger SE has already informed the Nigerian directors of Julius Berger Nigeria of the decision to dispose the equity stake on or before the end of this month.
The equity sale, according to the emerging details, will be offered to long-term Nigerian investors and will lead to the exit of the representative of Bilfinger SE from the board of Julius Berger Nigeria.
The equity sale might not be unconnected with Bilfinger’s strategic realignment from a construction company to an engineering and services group in the last decade which saw Bilfinger SE divesting totally from its construction activities.
Julius Berger Nigeria, in a confirmation, the board and management of Julius Berger Nigeria yesterday said they strongly believed that the exit of Bilfinger SE will not impact negatively on the company.
According to the company, ongoing strategic business directions being undertaken by the board and management would sustain and increase Julius Berger Nigeria’s efficiency and responsiveness as well as set basis for a future of long lasting success.
In 2011, Bilfinger, which then held 49.87 per cent equity stake in Julius Berger Nigeria, had sold down its equity stake. Julius Berger Nigeria then had 1.2 billion ordinary shares of 50 kobo each with market capitalisation of N56.59 billion out of which Bilfinger Berger held 598.4 million ordinary shares of 50 kobo each. Other substantial shareholders in Julius Berger Nigeria included the Lagos State and Benue State, which hold 6.99 per cent and 5.27 per cent respectively through their investment companies.
In order to strengthen its corporate independence, Julius Berger Nigeria had enhanced its on shore and off shore technical and logistic capacities by the establishment of a newly incorporated subsidiary, Prime Technology Design and Engineering Nigeria Limited for the provisions of design and engineering support services to the company.
The company also acquired a controlling majority share of the technical and logistic business and operations of Bilfinger Berger Nigeria GmbH, Wiesbaden, Germany, which assures Julius Berger Nigeria Plc of total control of all required services such as planning, procurement, recruitment and capacity building.
The share price of Julius Berger Nigeria remained unchanged at N52.39 per share.

http://thenationonlineng.net/new/foreign-investor-divests-from-julius-berger-nigeria/

Investment › Re: Nigeria Capital Market. by pipz(op): 9:31am On Jun 18, 2015

T-BILL AUCTION DATE: 17-Jun-15
NGN T-Bill Auction Result

TENOR MATURITY AMOUNTS SOLD CUT OFF [Yield] BID/COVER PREV DISC (Yield)
91 DY 17-Sep-15 NGN 26.30B 10.00% (10.26%) 1.01 9.7999% (10.04%)
182 DY 17-Dec-15 NGN 25.00B 12.70% (13.56%) 1.31 12.70% (13.56%)
364 DY 16-Jun-16 NGN 92.34B 12.80% (14.67%) 2.34 12.9999% (14.94%)

Investment › Re: Investing In Federal Government Bonds In Nigeria by pipz(m): 9:27am On Jun 18, 2015

NGN BOND AUCTION RESULT
NGN BOND AUCTION DATE : 17-JUN-15

FGN BOND AMOUNT SOLD CUT OFF RANGE OF BIDS BID/COVER PREV. CUTT OFF
5YR 15.54% FGN FEB 2020 NGN 40 B 14.4290% 13.0000% - 14.8990% 1.26 13.8450%
10YR 14.20% FGN MAR 2024 NGN 15.22 B 13.5000% 12.0000% - 15.5999% 2.39 13.4800%
20YR 12.1493% FGN JUL 2034 NGN 25 B 14.2490% 13.4945% - 15.9000% 1.76 13.8800%

Investment › Re: Nigeria Capital Market. by pipz(op): 9:27am On Jun 18, 2015

NGN BOND AUCTION RESULT
NGN BOND AUCTION DATE : 17-June-15

FGN BOND AMOUNT SOLD CUT OFF RANGE OF BIDS BID/COVER PREV. CUTT OFF
5YR 15.54% FGN FEB 2020 NGN 40 B 14.4290% 13.0000% - 14.8990% 1.26 13.8450%
10YR 14.20% FGN MAR 2024 NGN 15.22 B 13.5000% 12.0000% - 15.5999% 2.39 13.4800%
20YR 12.1493% FGN JUL 2034 NGN 25 B 14.2490% 13.4945% - 15.9000% 1.76 13.8800%

Investment › Re: Treasury Bills In Nigeria by pipz(m): 9:26am On Jun 18, 2015

Investment › Re: Treasury Bills In Nigeria by pipz(m): 9:21am On Jun 18, 2015

Investment › Nigeria Capital Market. by pipz(op): 10:08pm On Jun 15, 2015

Hi Guys,

I'm growing and getting more interested in the Nigeria capital market.

I do investments everyday Basically Offshore bonds & mutual funds and recently Local FGN bonds due to the scarcity of FX. Hence, my interest now in our capital market.

I try to read everyday .... E no easy and want to share these links with you and expect the gurus to comment and educate others.

If u need advise on local FGN bonds and T bills and offshore bonds and mutual funds I may help.

What The N40billion WAMCO NASD OTC Deal Signifies

http://nairametrics.com/what-the-n40billion-wamco-nasd-otc-deal-signifies/?utm_source=ReviveOldPost&utm_medium=social&utm_campaign=ReviveOldPost

List Of Dividends Declared So Far In 2015 (Updated June 12, 2015)

http://nairametrics.com/list-of-dividends-declared-so-far-in-2015/

Celebrities › Re: Nigerians Drag Annie Idibia Into The Toke Makina Mess by pipz(m): 8:54pm On Jun 14, 2015

Setaje:
adekennis.....

If both of u stop cheating. U won't die. Staying faithful doesn't kill. U guys seem not to know women. Hmmmmn. U don't no what it means to have a good mother, wife and a sister. You better stop it. How do u even look at your wife and kids eye knowing that you are cheating. It's not fair. Just stop it

Ta Le Le yi. huh

Education › Re: Industrial Chemistry Vs Chemical Engineering by pipz(m): 4:09pm On Jun 12, 2015

Hi House,

Can i please, get a link to any lecturer preferably UNILAG from the Chemical Engineering Dept. to take private coaching classes in

1. Separation Processes & Multi-component Separation

2. Mass & Energy Balance calculations.

Please, the person can be a PHD student or possess an M. Eng & at least one year lecturing experience in this field and must also be lecturing currently.

Location. Island, Lagos.

Period is going to be for 20 days. maximum of 4 hrs per day.

Interested person can drop me a mail on adeola0072003@yahoo.com or send a msg here.

Fees: Negotiable.

thanks

Education › Re: Chemical Engineering Vs Petroleum Engineering by pipz(m): 4:08pm On Jun 12, 2015

Jobs/Vacancies › Chemical Engineering Lecturer Urgently Needed by pipz(op): 2:53pm On Jun 12, 2015*

Education › Re: Unilag PG 2015/2016 ADMISSION DISCUSSION HERE by pipz(m): 2:26pm On Jun 12, 2015*

Education › Chemical Engineering Lecturer Urgently Needed by pipz(op): 2:23pm On Jun 12, 2015*

Investment › Re: What Could Happen If JP Morgan Ejects Nigeria From Its Index by pipz(m): 8:34pm On Jun 08, 2015

There is no way out. The currency has to be further de-valued

Investment › Re: Jp Morgan Says It Could Remove Nigeria From Key Bond Index by pipz(op): 8:31pm On Jun 08, 2015

Nice 1 @Nairaquest tanx I think the CBN should just let the Naira find its cause. The Banks and business are being starved of FX.

Investment › Re: Jp Morgan Says It Could Remove Nigeria From Key Bond Index by pipz(op): 12:01pm On Jun 08, 2015

Can the house please shed more light on the impact of this i.e. (if the State is removed from the index) what is the effect on a retail investor who is invested on one of these Bonds (29-Jun-19 16%) and the State as a whole I know for sure high liquidity risk will come to play. Decline in foreign investors purchasing these instruments. please, help with more.

Investment › Jp Morgan Says It Could Remove Nigeria From Key Bond Index by pipz(op): 10:05am On Jun 08, 2015

JPMorgan will eject Nigeria from its Government Bond Index (GBI-EM) by the year-end unless it restores liquidity to currency markets in a way that allows foreign investors tracking the benchmark to transact with minimal hurdles.

The bank said late on Friday it had extended the deadline to eject Africa's biggest economy by another six months to take into account the arrival of President Muhammadu Buhari.

Nigeria held closely-fought presidential elections in March, in which opposition leader Buhari defeated incumbent president Goodluck Jonathan, in the country's first transition of power through the ballot box.

JPMorgan, which runs the most commonly used emerging debt indexes, placed Nigeria on a negative index watch in January and then said it would assess its place on the index over a three to five months period.

"Nigeria's status in the GBI-EM series will be finalized in the coming months but no later than year-end," JPMorgan said.

Removal from the index would force funds tracking it to sell Nigerian bonds from their portfolios, potentially resulting in significant capital outflows. This in turn would raise borrowing costs for Africa's largest economy, already suffering from a sharp drop revenue following a plunged in oil prices.

Nigeria's forex and bond markets have come under pressure after the price of oil, Nigeria's main export, plunged. In response, the central bank fixed the exchange rate in February after devaluing the naira last year and tightened trading rules to curb speculation. The naira has lost 8.5 percent this year.

"If we are unable to verify these factors, a review of Nigeria's status within the benchmark for removal will be triggered," it said in report, adding that the factors included a liquid currency market.

Analysts did not expect JPMorgan to remove Nigeria.

JPMorgan added Nigeria to the widely followed index in 2012, when liquidity was improving, making it only the second African country after South Africa to be included. It added Nigeria's 2014, 2019, 2022 and 2024 bonds.

The bank said Nigeria continues to remain eligible for the GBI-EM index, which has around $210 billion in assets under management benchmarked to it, with a weight of 1.8 percent.

The central bank last week made a tiny adjustment to its exchange rate peg to the dollar, which one analyst said may indicate that it is beginning to think about how to loosen its currency regime.

Source: http://www.reuters.com/article/2015/06/07/nigeria-bonds-index-idUSL5N0YT0GS20150607

http://www.bloomberg.com/news/articles/2015-06-08/nigeria-buys-time-to-boost-naira-liquidity-on-jpmorgan-reprieve

http://www.bloomberg.com/news/articles/2015-02-05/emefiele-expects-nigeria-to-stay-in-jpmorgan-s-em-bond-indexes

http://www.cnbcafrica.com/news/western-africa/2015/01/17/jp-morgan-nigeria-bond-index/

Politics › Re: The Billionaires Dangote, Femi Otedola, Jim Ovia At The Inauguration by pipz(m): 8:57pm On Jun 01, 2015

mascot87:
A thread on the front page that shows that Aisha Buhari's Wrist watch cost £34,500 is a scam, lie from the pit of hell & this is very annoying that SaTANoids don't have anything tangible to say but to bank on propagandas a game they played till they lost the last election to APC. It's quite unfortunate that they haven't learnt from the last election that propaganda is not a wise & reasonable way of playing opposition & winning the heart of the people. From what I'm seeing, PDP may never attain the apex position AGAIN in Nigeria if they play politics filled with bitterness and propaganda. The wrist watch that the SaTANoids says it's £34,500 actually cost $129 @ http://www.kowatches.co/cartier-baignoire-folle-manual-watch-wb520034-watch-5403.html

SaTANoids please get a life

That which u posted the link is a replica, what we cannot tell is if she is wearing the original or a replica. Left for me, it could have been a gift or she bought it for herself. She is a biz owner.

Investment › Re: Treasury Bills In Nigeria by pipz(m): 10:09pm On May 18, 2015

Svelteb:
SCB, which bank is dat pls?

Standard chartered bank. Also note that the over 20 maturities I stated earlier are traded at the secondary market. New Bills are issued forthnightly and these just have 3 Diff. Tenures 91, 182 & 364 days.

Investment › Re: Treasury Bills In Nigeria by pipz(m): 7:08pm On May 18, 2015

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