Nigeria raises N125 billion bonds to mature in 2020, 2026, 2036, says DMO

The Federal Government on Wednesday at an auction raised N125 billion worth of bonds to mature in 2020, 2026 and 2036, the Debt Management Office (DMO) has said.

According to DMO’s auction result obtained from its website on Friday, it sold N20 billion of 2020 paper at 11.33 per cent, lower than the 12.19 per cent auctioned in February.

It also sold N40 billion of 2026 paper at 12.09 per cent, lower than 12.39 per cent in February and N40 billion of newly issued 2036 paper at 12.40 per cent.

The summary stated that N5 billion of the 15.54 per cent February 2020 bonds and N20 billion of the 12.50 per cent January 2026 bonds were allotted on non-competitive basis.

Subscriptions from investors for the February 2020 bond, which was reopened, stood at N72.559 billion, while that of January 2026, which was also reopened, stood at N89.358 billion.

Also, subscriptions for the March 2036 bond stood at N100.529 billion.

Lagos To Transform Bus Terminal Into Tourist Attraction

The Lagos State Government on Friday said that arrangements had been concluded to transform the Tafawa Balewa Square (TBS) Bus Terminal to attract more tourists to the edifice.

The Commissioner for Transportation, Dr Dayo Mobereola, disclosed this at a stakeholders’ meeting organised by his Ministry in Lagos on Friday.

According to Mobereola, redevelopment was part of Gov. Akinwunmi Ambode’s efforts to further enhance the state’s mega-city project.

“The reason for this redevelopment is to actualise the vision of Governor Akinwunmi Ambode, in his strive to make the state a real mega-city.

“To affirm this, there are some infrastructure that are to be in place.

“TBS stands for Lagos State. It is a rallying point for us, so we want to beautify it more and make it a tourist centre.

“It is very important and imperative to make the terminal a world-class edifice, so that when anyone comes to this place, they will bow and respect the state,” Mobereola said.

The commissioner said that the purpose of the meeting was to seek the opinion of stakeholders and to carry them along.

“We need your contributions to make it better. We are just going to make the place an ultra-modern terminal for the Bus Rapid Transit (BRT) buses, taxi operators and passengers.

“What we want to do is to protect all during the rainy and hot seasons. Everyone will have its own section: Danfo drivers, BRT and taxi operators, so that passengers are not confused where to go.

“What we are doing is for the benefits of all. When it is completed, it will be enforced,’’ he said.

The Special Adviser to the Governor on Transportation, Mr Anofiu Elegushi, added that the purpose of the project was not to displace the operators.

“We are ready to receive your inputs, comments and advice. Our intention is to re-arrange. It is not an intention to take over your operations, but we need your support to move the state forward,’’ he said.

In his presentation on the project design, Mr Bolaji Bada, the Director Transportation Engineering in the ministry, said that the project would have a hightech fibre to provide shade.

Bada said, “The weight of the material is approximately one per cent of glass, which make it light enough to withstand any weather condition. It is dust and repellant-free and can serve for 40 years.

“This technology has the ability to transmit light when illuminated from above at night, so it will be spectacular, of high architecture and colourful, with a lot of land spacing for a standard terminus.’’

In his reaction, Alhaji Tajudeen Agbede, the Chairman of the National Union of Road Transport Workers (NURTW), who lauded the project, urged that the government should be cautious of disrupting people’s sources of income.

“I want to appeal that you do not displace the operators and traders when the project is eventually completed because they are of immense benefit to both passengers and their families,’’ Agbede said.

Mr Hammed Okunuga, the Chairman, Road Transport Employers’ Association (RTEAN) in Lagos Island, said “we appreciate this as we have been looking forward to it, but let it not be that you want to take over what we feed our families with.’’

A private Park-and-Ride operator at TBS, identified as Alfa Abolore, urged the government not to displace entreprenuers who have been making a living in the area.

In his response, Mobereola, said, “no stakeholder should be fearful. We will not take your source of income. We must do it together.

“We may have to relocate people that might be affected because by the time we are done with TBS, you will tell us to go and repair Obalende. Obalende is not up to standard.

“We need your support because of the inconvenience it will bring during execution.”

He added that the facility would include enhanced security and maintenance features such as Closed Circuit Television and a world-class toilet facility.

The News Agency of Nigeria (NAN) reports that stateholders at the meeting included members and executives of the NURTW and the RTEAN, traders, politicians and residents, among others.

NSE market capitalisation appreciates by N5bn

The market capitalisation of the Nigerian Stock Exchange (NSE) on Friday appreciated by N5 billion to close at N8.838 trillion.

The News Agency of Nigeria (NAN) reports that this was against the N8.833 trillion posted on Thursday.

Also, the All-Share Index which opened at 25,679.03 improved by 15.76 points or 0.06 per cent to close at 25,694.79.

An analysis of the price movement showed that Nigerian Breweries recorded the highest price gain to lead the gainers’ table, appreciating by N5 to close at N105 per share.

It was trailed by Unilever with N1.40 to close at N29.45, while Zenith Bank chalked 50k to close at N12.79 per share.

Berger Paint increased by 45k to close at N9.46, while Union Bank garnered 27k to close at N5.77 per share.

On the other hand, Seplat topped the losers’ chart shedding N20 to close at N330 per share.

Lafarge Africa came second with a loss of N3 to close at N81, while GT Bank dipped 68k to close at N15.67 per share.

ETI declined by 65k to close at N14.35 and Dangote Sugar shed 41k to close at N5.90 per share.

NAN reports that GT Bank was investors’ delight with an exchange of 46.52 million shares valued at N733.37 million.

Zenith Bank followed with 33.31 million shares worth N437.11 million, while Access Bank traded 16.37 million shares valued at N64.99 million.

UBA sold 14.69 million shares worth N53.89 million and FBN Holdings exchanged 13.73 million shares valued at N45.73 million.

In all, investors bought and sold 222.25 million shares worth N1.89 billion achieved in 3,558 deals.

NAN reports that this was in contrast with 6.87 billion shares valued at N7.68 billion traded in 3,632 deals.

Nigeria’s trade declines by 30.6

The National Bureau of Statistics on Friday released the merchandise trade figures for the 2015 fiscal period, stating that Nigeria recorded a huge decline of N7.25tn in trade from N23.49tn in 2014 to N16.42tn. It said the N7.25tn decline represents a drop of 30.6 per cent over what was recorded in the 2014 financial period. The bureau in the report a copy of which was made available to our correspondent attributed the drop to a 40.3 per cent decline in the value of exports from N16.3tn in 2014 to N9.72tn.

It, however, said that a decrease of N676.4bn or 9.2 per cent in the total imports in 2015 helped to mitigate the declining trade balance. The report said, “The total value of Nigeria’s merchandise trade during the fourth quarter of 2015 stood at N3.65tn or 9.2 per cent lower than the value of N4.02tn recorded in the preceding quarter. “For the 2015 calendar year, the country’s total trade was recorded at N16.42tn, amounting to N7.25tn or 30.6 per cent less than the total trade value recorded for 2014.

“This development arose largely due to sharp decline the value of exports; from N16.3tn in 2014 to N9.72tn in 2015, a decline of 40.3 per cent. “A decrease of N676.4bn or 9.2 per cent in the total imports in 2015 helped to mitigate the declining trade balance, which stood at N3.03tn, N5.89tn less than the value in 2014.” The NBS in the report said the crude oil component of total trade decreased by N4.94tn or 41.6 per cent as against the level recorded in 2014. It said the country’s imports were dominated by the importation of Boilers, machinery and appliances, which accounted for N1.5tn or 23.6 per cent of the total value of imports in 2015.

Other commodities which contributed noticeably to the value of imports in 2015 were Mineral Products at N1.27tn (19 per cent), Vehicles, aircraft and associated parts at N608.5bn (9.1 per cent) and products of the chemical and allied industries at N578.9bn (8.6 per cent). In terms of imports by region, the report revealed that the country consumed goods largely from Asia with an import value of N2.8tn or 42.3 per cent. Nigeria also imported goods valued at N2.5tn or 37.3 per cent from Europe, and N871.3bn or 13 per cent from The Americas. Imports from within the continent of Africa, it added, totaled N420.4bn or 6.3 per cent, while imports from the region of ECOWAS amounted to N213.8bn.

Osun State Will Not Pay State Workers March Salaries

According to Governor Rauf Aregbesola, the government will not be able to pay the State Secretariat’s electricity bills, let alone its N2.6bn wage bill.

The Osun State government has announced that it will be unable to pay State workers their March salaries.

Osun State received only N6.23m in funding for the month of March. According to Governor Rauf Aregbesola, the government will not be able to pay the State Secretariat’s electricity bills, let alone its N2.6bn wage bill.

March’s federal allocation represents a significant decline from February’s allocation of N1.677bn. Additionally, Osun State received N19.418m and N726.1m from the exchange rate gain and value added tax, bringing the total February allocation to N2.423bn.

The reason for Osun State’s insufficient funding comes from debt obligations amounting to over N2bn. The debt payments included external debt and an irrevocable standing payment order (ISPO).

Every other state was granted a March allocation of at least N1bn, with Akwa Ibom, Delta, Lagos, and Rivers States topping the list with N8.557bn, N6.062 bn, N6.612 bn and N5.427bn, respectively.

Dangote Group sponsors 800 Nigerians to understudy refinery operations in India

Aliko Dangote, president of Dangote Group and Africa’s richest man, is sending about 800 Nigerians to India, to learn the operations of a petrochemical refinery.

The 800 Nigerians will travel to the Asian country over the next 24 months in a batch of fifties, to learn from the nation with the largest refinery in the world.

India is home to the world’s largest refinery – Jamnagar Refinery Reliance Industries, Jamnagar – which refines as much as 1.2 million barrels per day.

A source in the company confirmed the development to TheCable on Friday, adding that the first batch to be trained will leave for India on Sunday, March 20, 2016.

“About 800 will be trained in batches within 24 months. The first batch of 50 is leaving for India on Sunday,” she said.

Dangote is looking to creating employment within the Nigerian economy, rather than importing expatriates to run the first private refinery in Nigeria.

The refinery, projected to worth $9 billion, is being built to have a refining capacity of about 500,000 to 650,000 barrels per day.

“After receiving a private licence to build a refinery, Dangote has commenced the building of a 650,000 barrel per day (BPD) petroleum refinery, which will be the single largest in the world,” the conglomerate said in a statement more than a year ago.

“The refinery would have a larger capacity than all of Nigerian National Petroleum Corporation (NNPC) refineries put together.”

Dangote, who hosted Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), at the site of the refinery in January, assured Nigerians that the refinery would be ready to meet the nation’s need by 2018.

“Today, Nigeria imports 100 percent of its fertilizer, but when we finish, Nigeria will be the largest exporter of Urea and Ammonia in Africa,” Dangote said in January.

“The refinery is the largest single line in Africa and it will meet our total domestic requirement and save foreign exchange. Thirty-eight per cent of CBN’s foreign exchange is spent on importation of petroleum products.

“We can serve the whole West African market. We are going to serve the whole domestic market in the next 10 years and also export. We have actually been doing this for a very long time to diversify the economy.”

Dangote to ‘acquire’ Peugeot Nigeria

Aliko Dangote, Africa’s richest man, is teaming up with the Bank of Industry (BoI) and the Kaduna and Kebbi state governments to acquire majority stake in Peugeot Automobile Nigeria (PAN) Limited.

This disclosure was made by Nasir el-Rufai, governor of Kaduna state, at the launch of the Bank of Industry youth empowerment scheme (YES).

“We have submitted bids for the car maker … with Aliko Dangote on board together with BoI, Kebbi and Kaduna state; we are confident our bid will sail through,” he was quoted by Reuters to have said.

Peugeot is a local joint venture with the French automaker, with a long history in Nigeria, the anticipated hub of automotive assembling on the Africa continent.

El-Rufai said that Kaduna and Kebbi, along with development lender Bank of Industry (BoI) and Dangote, had submitted bids for the stake which AMCON is looking to sell.

Peugeot Nigeria assembly plant located in Kaduna state has Peugeot Citroen PEUP.PA as its technical partner “with a capacity to assemble 240 cars a day”.

Though conceived in 1969, Peugeot found its roots in Nigeria only two years later, after winning a bid during the Yakubu Gowon-led government.

In November 2006, PAN was privatized in line with government’s agenda to build a stronger, more competitive and diversified economy.

ASD Motors emerged as the successful core investor and took over management of the company (Peugeot) in January 2007, with a 54.78 percent stake, making Sani Dauda, CEO of both ASD Motors and Peugeot Nigeria.

The expectation was that the privatization of PAN would create a quantum leap in performance, but that has not happened, the company confirmed.

“Following the accumulation of huge non-performing loans (NPL) indebtedness to banks, in October 2012, the Asset Management Company of Nigeria (AMCON) acquired the debts of the company and converted a portion to equity to help restructure the firm,” Peugeot had said.

The planned acquisition is expected to revamp the presence of the company in Africa’s largest economy.