CAPITAL MARKET
FG to auction N150bn bonds in October
The Debt Management Office said on Tuesday that the Federal Government will offer N150bn bonds for subscription in October. A circular by the DMO on its website showed that the breakdown of bonds consisted of three bonds worth N50bn each. They are 10-year re-opening bond to be offered at the rate of 12.50 per cent and mature in January 2026; a 20-year reopening bond to be offered at 16.2499 per cent and mature in April 2037; and a 30-year reopening bond to be offered at 12.98 per cent and mature in March 2050. According to the DMO, the bonds, which will be auctioned on October 20, have a settlement date of October 22. Punch
Dangote Cement, MTN Nigeria Lead Others in N289bn Income, Education, NITDA Tax Expense
Dangote Cement Plc led 13 other companies listed on the Nigerian Exchange Limited (NGX) to remit a total tax of N289.4billion to the Federal Inland Revenue Service (FIRS) and other agencies in first half of 2021. Aside paying the statutory 30 per cent income tax, companies operating in the country are meant to pay Education tax, National Information Technology Development Agency (NITDA) tax and Nigeria Police Trust Fund levy. Analysis of the companies results revealed that Dangote Cement, followed by MTN Nigeria Plc are the most tax paying companies in the country, while Ecobank Transnational Incorporated (ETI) leads the banking sector in tax expenses during the period. This Day
BANKING
CBN threatens to go tough on BVN violators
The Central Bank of Nigeria has said in its revised regulatory framework for Bank Verification Number operations that violators will be sanctioned. It said this in a circular to all deposit money banks, mobile money operators, super agents and payment service providers titled ‘Issuance of revised regulatory framework for Bank Verification Number operations and watch-list for the Nigerian banking industry’. Part of the circular said, “The following infractions by participants shall attract appropriate penalties: “Misuse of the BVN watch-listing process for victimization; improper linking of accounts/wallets (except Tier 1); and other infraction(s), as may be determined by the CBN.” Punch
ECONOMY
Nigeria’s economy to shrink in Q4 2022 –IMF
The International Monetary Fund (IMF) has predicted Nigeria’s economy would shrink by 0.5 percentage point in fourth quarter (Q4) of 2022. The IMF put Nigeria’s economic outlook for Q4 of 2021 at 2.4 per cent while it projected 1.9 per cent for Q4 of 2022, representing a decline of 0.5 percentage point. The global financial body equally lowered its global growth projection for 2021 to 5.9 per cent while retaining 2022 figures at 4.9 per cent. The 5.9 per cent figure is 0.1 percentage point lower for 2021 than in the July forecast. The latest growth figures are contained in the IMF World Economic Outlook released yesterday which finds that, “although global recovery continues, momentum has weakened, therefore , there is a slight downward revision for global growth this year and an unchanged projection for next year (4.9 percent).” The Sun
Growing cryptocurrency adoption poses risk to global economy – IMF
The International Monetary Fund has said the growing adoption of cryptocurrencies pose risks to the global economy. The IMF said this in its ‘Global Financial Stability’ report released on Tuesday. It said the adoption of crypto assets and stablecoins in emerging markets and developing economies could pose a challenge to those countries’ macroeconomic and financial stability. According to the fund, while the risks are contained for now, regulators have to monitor cryptocurrencies to keep them in check. “As the crypto ecosystem expands and evolves, new sources of risk will emerge such as stablecoins and decentralized finance,” it said. The IMF said the risks included hacking, lack of transparency around issuance and distribution of tokens, and operational risks including outages during periods of extreme volatility. Punch
ABCON advocates measures to curb naira depreciation, FX challenges
The Association of Bureaux De Change Operators of Nigeria (ABCON) has advocated measures to curb the continued depreciation of the naira. The measures were contained in the ABCON Quarterly Economic Review for the third quarter of 2021. ABCON noted that recent developments in the foreign exchange market have proven that the suspension of dollar sales to BDCs is not the solution to the continued depreciation of the naira in the parallel market. It added that the continued depreciation of the naira has also proven that BDCs are indispensable in Nigeria’s context of the foreign exchange market. To address the continued depreciation of the naira in the parallel market, ABCON called on the Central Bank of Nigeria (CBN) to restructure the BDC sub-sector. Guardian