The Central Bank of Nigeria (CBN) has published its Treasury Bills programme for January–March 2020, indicating that it planned to raise about ₦847.4 billion in cash.
The disclosure was made by the CBN in the Treasury Bill programme document released on its website, covering the first quarter of 2020. The N847.4 treasury bill issued for Q1 2019 represents a drop by N155.2 billion when compared to the over 1 trillion issued in Q4 2019.
The details: The breakdown of the document shows that N86.6 billion will be raised in the 91-day maturity period, N163 billion for 182 days and N597.7 billion for 364 days maturity period.
Basically, the CBN sells T-bills on a bi-weekly basis to investors and is one of the safest investments available. Interests are paid upfront and the principal paid in full upon maturity.
The CBN’s policy: T-billa are mostly sourced from financial institutions. Once again, the bank issues treasury bills regularly as a control measure to help banks mop up excess liquidity and control the money supply.
Following an earlier report that the CBN had ordered commercial banks and other financial institutions not to sell treasury bills to individuals and small firms from November 29, 2019, the apex bank has said its directive only affects the Open Market Operations. The development means that the treasury bill is still open to individuals and small firms.
Understanding Treasury Bills: Basically, when the government is going to the financial market to raise money, it can do it by issuing two types of debt instruments – treasury bills and government bonds. Treasury bills are issued when the government needs money for a short period while bonds are issued when it needs debt for more than say five years. The issuance of treasury bills is also used as a mechanism to control the circulation of funds in the economy.
Treasury bills have a face value of a certain amount, which is what they are actually worth. However, they are sold for less. For example, a bill may worth N10,000, but you would buy it for N9,600. Every bill has a specified maturity date which is when you receive the money back.
The government then pays you the full price of the bill (in this case N10,000), giving you the opportunity to earn N400 from your investment. The amount that you earn is considered as the interest, or your payment for lending your money to the government. The difference between the value of the bill and the amount you pay for it is called the discount rate and is set as a percentage.
AXA Mansard emerges Best Health Insurance Product Winner 2021
The winning product was the AXA Platinum Plus Cover which has been specially designed to provide a world-class health cover for the insurer’s customers.
Health Management Organization, AXA Mansard Health Limited, recently announced that it has emerged as the winner of the best health insurance product of the year in the Insurance Product & Process section of the just concluded 11th Annual Global Banking and Finance Awards 2021.
The winning product was the AXA Platinum Plus Cover which has been specially designed to provide a world-class health cover for the insurer’s customers. With access to roam over 1,700 hospitals locally, care in India, UAE and South African hospitals and limited in-patient cover in the UK, France, and Germany for up to $1000 in healthcare benefits.
The product provides enrolees with benefits such as twenty-four-hour dedicated Telemedicine service, home vaccination service, free home delivery of special medications, partnership with healthy eating restaurants, and smarter budget-friendly discounts on healthy meals.
Speaking on the award, Chief Executive Officer, AXA Mansard Health Limited, Tope Adeniyi, said “We thank our highly esteemed customers for this prestigious award, as they are the reason, we passionately drive to improve our product offerings and execute innovative initiatives. This award is recognition of our unflinching commitment to our customers and an affirmation of our current position as the leading health insurance company in the country.”
AXA Mansard Health has a twenty-four-hour call centre, a team of highly trained and dedicated professionals, service portals at all AXA Mansard Welcome Centres nationwide and has deployed state-of-the-art technology to attain operational excellence while contributing to prompt service delivery and overcoming of challenges being encountered in the Nigerian health insurance industry.
Whilst thanking the organizers, Adeniyi noted that “the company is counting on the continued support of our stakeholders to continuously provide superior customer experience and to develop more innovative and value-adding products. We will continue to innovate, create new products, improve our product offering and refine our service delivery to ensure we continuously meet the changing needs of our customers”.
AXA Mansard Health Limited is the Health Maintenance Organization (HMO) arm of the AXA Mansard group of companies. The HMO is geared to promote her members’ wellbeing.
The HMO serves all clients across the country virtually and has established functional offices in Lagos (the head office), Abuja, Port-Harcourt, Enugu, with ongoing plans to open offices in other locations.
Global Banking & Finance Review is a leading Online and Print Magazine, which has evolved from the growing need to have a more balanced view, for informative and independent news within the financial community.
Since its inception in 2011, The Awards reflect the innovation, achievement, strategy, progressive and inspirational changes taking place within the Global Financial community. According to the magazine’s publishers the awards were created to recognize companies prominent in their areas of expertise and excellent in financial service delivery.
NNPC to boost power generation with additional 5,000 megawatts to national grid
The NNPC has revealed plans to boost power generation with additional 5,000 megawatts of electricity to the national power grid.
The Nigerian National Petroleum Corporation (NNPC) has announced plans to boost power generation with additional 5,000 megawatts of electricity to the national power grid once the ongoing gas projects throughout the country are completed.
This follows progress being made on several gas projects, including the NLNG Train 7, with a foreign direct investment of between $3 billion and $5 billion.
According to a report from Thisday, this disclosure was made by the Group Managing Director of NNPC, Mallam Mele Kyari, while speaking at a virtual event organised by the Nigerian Gas Association (NGA), themed: “Powering Forward: Enabling Nigeria’s Industrialisation Via Gas,”
Kyari, who was represented by the Chief Operating Officer, Gas and Power, Mr Yusuf Usman, said the NNPC was committed to fulfilling President Muhammadu Buhari’s directive to boost domestic gas supply.
Other gas projects listed by the NNPC boss include the AKK, which he described as one the largest and most aggressive gas infrastructure that has ever been embarked upon in Nigeria, stretching 614 km from Ajaokuta, Abuja, Kaduna and Kano, and Lot B of the OB3 gas project, which is already producing 125 mmscfd of gas.
He said the NNPC hopes to establish 2 gas hubs, one at Oben and the other at Brass, adding that one of the presidential mandates is to deliver on gas and power and create a market in the domestic environment that will consume the planned 4.5bcf of gas.
Kyari pointed out that the state oil giant and its partners are able to raise about $260 million within Nigerian merchant banks and 2 African banks for the Asa North gas project.
What the Group Managing Director of NNPC is saying
Kyari in his statement said, “At the moment, the power sector is challenged and all efforts have to be put in to unlock the liquidity in the downstream sector and expand the transmission network. This will enable us to sell the gas we have already invested in and enhance the economic prosperity of the country.
“Within the NNPC, we are looking to establish about five gigawatts of additional power into the network. So, NNPC is engaging with the stakeholders to resolve the power sector issue so that investment that has been made in generating gas can be realised.”
He also stated that the NNPC had started creating a link between the domestic gas pipelines infrastructure and export gas pipelines to establish an outlet into the export route which will make the projects more bankable.
What this means
- The actualization of this plan by the NNPC will give a much-needed boost to the power sector which has been facing serious crisis despite the rapidly growing economy.
- Despite the power sector reform, which saw the Federal Government give up control of power generation and distribution but still retained transmission, the crisis in the sector still persists, with serious negative impacts on the agricultural, industrial and mining sectors. Even the Micro Small and Medium Enterprises are not saved from its crippling effects.
- The addition of 5,000 megawatts of electricity, which is about half of what the country generates at the moment, will go a long way to help reduce the crisis in the power sector and boost the economy, which is still very fragile.
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