The Central Bank of Nigeria’s (CBN) second Treasury Bills Auction of the year worth N154.38 was oversubscribed by 46% yesterday, with marginal fall in rates on the 91 and 180-day tenors.
The apex bank recorded N287.8 billion in total subscription during the auction. T-bills worth N154.38 billion were provided across the 91-day, 182-day and 364-day tenors at the primary auction.
The apex bank had offered N4.38 billion for the 91-day tenor and recorded a total subscription of N29.83 billion, making it an oversubscription of N25.45 billion. The 182-day tenor did great also like the N10 billion offered was over-subscribed by N42.49 billion, receiving a total subscription of N52.49 billion.
Meanwhile, the highest subscription among the treasury bills was the 364-day tenor which experienced a total subscription of N205.48 billion from an offering of N150 billion. That means it was oversubscribed by N55.48 billion.
The treasury bills were auctioned in a Dutch auction, which is a public offering auction structure, where the price of the offering is set after taking in all bids to determine the highest price at which the total offering can be sold. Investors place a bid for the amount they are willing to buy in terms of quantity and price.
The following were reportedly the range of bid rates, with 90-day tenor doing 2.2500 and 5.9116 for the 91-day tenor; 2.8000 and 9.5000 for the 182-day tenor; 5.4000 and 13.1800 for the 364-day tenor. The Central Bank’s stop rates stood at 3, 4 and 6.54 for the 91-day, 182-day, and 364-day tenorss respectively.
The CBN reserved the right to reject bids and the allotment letters and payment for successful bids were reportedly issued last Thursday. The apex banks had processed all money market dealers’ bids through the CBN’s s4 web interface as at 11 am on Wednesday.
However, though economic fundamentals might not necessarily support a low-interest rate regime, the CBN is sticking to its guns and keeping rates low. Though rates dropped marginally on the 90-day and 180-day tenors, there was also a marginal increase on the 364-day tenor, which could mean the CBN is ready to keep the rate low and steady as it continues to watch reactions in the money market space.
COVID-19: CACOVID spent N43.27 billion to support 3 key priorities – CBN
The Central Bank of Nigeria (CBN) has revealed that the Coalition Alliance Against COVID-19 (CACOVID) has so far incurred an expenditure of N43.27billion on the acquisition of, not only medical equipment and supplies but also food palliatives for vulnerable Nigerians.
The recent press release noted that the funds raised by CACOVID was used to support 3 key priorities – Medical facilities and equipment, food relief programs and communications plans.
The breakdown of the expenditure in the aforementioned areas are:
- Medical Facilities and equipment: In collaboration with other stakeholders, CACOVID developed 39 fully equipped isolation centers across the 36 States of the Country including the Federal Capital Territory (FCT). The sum of N4.19billion was spent in Building Isolation Centers. In addition, medical equipment such as PCR test kits for suspected cases of COVID-19 were procured along with other required medical items at a cost of N9.02billion.
- Food relief programs: As a way of cushioning the impact of the lockdown on vulnerable citizens, CACOVID provided palliatives in the form of essential food items to 1.7million households, which is equivalent to supporting 8 million Nigerians. A total of N28.76billion was spent procuring these food supplies.
- Communication plans: CACOVID also worked to improve awareness in rural communities on the COVID-19 virus, and the measures community health workers and other members of society should take when someone in the community is suspected of having symptoms similar to that of COVID-19. In lieu of this, expenses were incurred on Print, TV, radio, and social media as part of CACOVID communication plans.
Why this matters
The recent disclosure is in line with the principle of accountability and transparency, as the organization seeks to lay bare facts regarding expenditure incurred so far; thereby, nipping in the bud, suspicions and unfounded rumor.
What you should know
Due to the sudden global health challenge (COVID-19), which wreaked havoc on most economies of the world, coupled with declining oil prices and declined government revenue; the Bankers Committee, comprising the Central Bank of Nigeria and the Deposit Money Banks, as well as key stakeholders in the private sector came together to set up an alliance in March 2020, known as the Coalition Alliance Against COVID-19 (CACOVID).
The ultimate objective is working with the government to provide support in areas that would result in improved health and welfare for vulnerable Nigerians.
PZ Cusson announces retirement of Chairman, Kola Jamodu
PZ has announced the retirement Chief Kola Jamodu as Non-Executive Director and Chairman of the Board of the company.
The Board of Directors of PZ Cussons Nigeria Plc has announced the retirement of Chief Kola Jamodu as Non-Executive Director and Chairman of the Board of the company.
This disclosure was made in a notification signed by the Company’s Secretary, Jacqueline Ezeokwelume, and sent to the floor of the Nigerian Stock Exchange.
According to the notification issued by Mrs. Ezeokwelume, Chief Kola Jamodu will retire as a Non-Executive Director and Chairman of the Board effective 11 December 2020 to enable him to pursue other personal endeavours.
What you should know
Chief Jamodu joined PZ Cussons Group in 1974 and served in Executive positions for 24 years rising to the position of Chief Executive Officer of the Company, a position he held until he retired in 1999.
He thereafter continued as a Non-Executive Chairman of the Board until 2001 when he was appointed as the Honourable Minister of Industry of the Federal Republic of Nigeria, a position he held until 2003.
He was reappointed as the Chairman of the Board of PZ Cussons Nigeria Plc in November 2014.
Abbey Mortgage Bank announces appointment of 6 Directors
The Central Bank of Nigeria has approved the appointment of 6 Directors of Abbey Mortgage Bank.
Abbey Mortgage Bank has announced the appointment of 6 Directors, including Mr. Madu Hamman as the substantive Managing Director.
The disclosure is contained in a notification, signed by the Bank’s Secretary, Geoff Amaghereon Esq. and sent to the Nigerian Stock Exchange market today, as seen by Nairametrics.
What you should know
Five (5) other Directors were appointed by the CBN – 2 Executive and 3 Non-Executive Directors.
The names and portfolios of the Directors are; Mr. Mobolaji Adewumi – Executive Director; Mr. Oladipupo Ayodele Adeoye – Executive Director; Mr. Nonso Okpala – Non-Executive Director; Professor Marius N. Umego – Non-Executive Director; and Brigadier-General John Obasa (rtd) – Non-Executive Director.
The notice also mentioned that all appointments have been approved by the Central Bank of Nigeria.