• Tuesday, July 16, 2024
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NBS to release FAAC disbursement as DMO set for N450 billion bond auction

NBS to release FAAC disbursement as DMO set for N450 billion bond auction

The federal, state, and local governments are expected to get their share from the federal account allocation committee (FAAC) for May 2024.

The National Bureau of Statistics revealed that FAAC distributed N1.87 trillion in April 2024 from the total revenue collected in March 2024 among the three tiers of government.

Meanwhile, the Debt Management Office is set to issue three tranches of FGN bonds worth N450 billion today.

Read also: DMO banks on market makers’ bigger appetite for N6trn bond

Monday, June 24

DMO to issue N450bn FGN bonds

The Debt Management Office will be issuing three tranches of FGN bonds worth N450 billion on Monday.

The issuance includes a new five-year N150 billion bond alongside reopenings of seven- and nine-year bonds, each valued at N150 billion.

At the last auction in May, DMO sold N378 billion across the three bonds offered, with the stop rates of the longest tenure at 20.45 percent.

The new 9-year bond took centre stage, attracting N373.875bn in subscriptions. Of this amount, N285.124bn was allotted, including N179.00bn under non-competitive bids. Bids ranged from 16.95 percent to 22.00 percent, eventually settling at a marginal rate of 19.89 percent.

The 7-year bond received N76.875bn in bids, with N62.975bn allotted. Non-competitive allotments accounted for N85.80bn. Bids spanned from 17.20 percent to 20.80 percent, resulting in a final marginal rate of 19.74 percent.

The 5-year bond attracted bids totaling N100.56bn, with an allotment of N32.67bn. An additional N36.500bn was allocated through non-competitive bids. Bids ranged from 17.50 percent to 21.00 percent, and the marginal rate was set at 19.29 percent.

The government frontloaded a substantial part of its 2024 borrowings in the first quarter. The second quarter bond auction calendar suggests that the government aims to raise between N300 billion and N600 billion monthly compared to the 2.5 trillion borrowings in the first quarter.

Tuesday, June 25

NBS to release Electricity Report Q1

The National Bureau of Statistics will release the Nigeria Electricity Report for the first quarter of 2024.

The report will detail energy bills, revenue generated, and customers served by DisCos in the first three months of 2024.

According to NBS, the total customer numbers in Q4 2023 stood at 12.12 million, up from 11.71 million in Q3 2023, showing an increase of 3.46 percent.

Similarly, metered customers stood at 5.61 million in Q4 2023, indicating a decrease in the growth rate of 1.32 percent from 5.68 million recorded in the preceding quarter.

In addition, estimated customers during the quarter were 5.83 million, showing a decrease of 3.34 percent from 6.03 million in Q3 2023.

Revenue collected by the DISCOs during the period was N294.95 billion, up from N260.16 billion in Q3 2023. Electricity supply was 6,432. GWh in Q4 2023, up from 5,732 GWh in the previous quarter.

BusinessDay reported that with a revenue of N294.95 billion in the fourth quarter of 2023, the 11 DisCos in Nigeria have amassed a cumulative total of N1.07 trillion for the full year.

“The FAAC accrual has been on the rise since the second quarter of 2023 after the implementation of the twin policy reform of the President Bola Tinubu administration – subsidy removal and liberalisation of the foreign exchange market.”

Friday, June 28

Federation Account Allocation Committee (FAAC) May 2024 Disbursement

The National Bureau of Statistics (NBS) will release its report on the Federal Account Allocation Committee for the month of May 2024.

According to the Bureau, the Federal Account Allocation Committee (FAAC) distributed N1.87 trillion in April 2024 from the total revenue collected in March 2024 among the Federal Government, States, and Local Government Councils.

Read also: DMO sells N378bn FGN Bond despite higher demand

It stated that the amount disbursed comprised N1.02 trillion recorded from the Statutory Account, N282.52 billion from Exchange Gain, N15.37 billion from Electronic Money Transfer Levy, EMTL and N549.70 billion from Value Added Tax.

The FAAC accrual has been on the rise since the second quarter of 2023 after the implementation of the twin policy reform of the President Bola Tinubu administration – subsidy removal and liberalisation of the foreign exchange market.

The allocations to the three tiers of government for April 2024 were: Federal Government with a total of N345.89 billion, states with a total of N398.69 billion, and Local Governments with a total of N288.69 billion.

The sum of N90.12 billion was shared among the oil-producing states from the 13 percent derivation fund.

The revenue generating agencies comprising Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) received N23.53 billion, N30.13 billion, and N15.87 billion respectively, as cost of revenue collections.

Nigeria Capital Importation Report

The National Bureau of Statistics (NBS) will release its report on the Nigeria Capital Importation Report for the first quarter of 2024.

Total capital importation into Nigeria stood at $3.89 billion in the 2023 fiscal year, representing a $1.53 billion decline from $5.42 billion recorded in 2022.

The total capital importation in the fourth quarter of 2023 stood at $1.08 billion, slightly higher than the $1.06 billion recorded in Q4 of 2022.

In Q3 2023, total capital importation into Nigeria stood at $654.65 million, lower than the US$1.159 billion recorded in Q3 2022, indicating a decline of 43.55 percent.

In Q2 2023, total capital importation into Nigeria stood at $1.03 billion, lower than the $1.53 billion recorded in Q2 2022, indicating a decrease of 32.90 percent. When compared to the preceding quarter, capital importation fell by 9.04 percent from $1.132 billion in Q1 2023.

By type, other investments ranked top at $2.37 billion of total capital importation in the year, followed by portfolio investments at $1.15 billion and foreign direct investment (FDI) at $377.37 million.

Lagos State remained the top destination in 2023 with $2.56 billion, followed by Abuja (FCT) with $1.17 billion. Abia State and Rivers recorded $150.09 million and $6 million, respectively.

Kenya expects an inflation rate report.

Kenya’s National Bureau of Statistics is expected to release the country’s headline inflation for June on Friday.

The annual headline inflation rate, as measured by the Consumer Price Index (CPI), increased to 5.1 percent in May 2024 from 5.0 percent in April 2024.

This means that the general price level in May 2024 was 5.1 percent higher than that of May 2023.

According to the KNBS, the price increase was mainly driven by the rise in prices of commodities under transport (8.1%); food and non-alcoholic beverages (6.2%); and housing, water, electricity, gas, and other fuels (4.4%) between May 2023 and May 2024.

The East African nation’s CPI has been on the decline until May, when it rose slightly to 5.1 percent from the 5.0 percent it stood in April.

Analysts forecast a mild increase in June on the back of harsh climatic conditions affecting agricultural production, which would in turn see food prices increase.

Naira remains weak despite rising external reserves

Nigeria’s naira has remained weak even as the country’s foreign reserves continue to see a marginal increase.

As of Thursday, the naira exchanges at N1,485.36 per US dollar at the official market, while it trades at N1,490 per dollar on the parallel market, popularly called the black market.

Nigeria’s foreign currency reserves rose further to $33.58 billion as of June 19, 2024, from $33.159 recorded on June 11, 2024, according to data from the Central Bank of Nigeria (CBN).

BusinessDay reported that about $5.95 billion from the World Bank and Afreximbank entered the Nigerian economy, helping to strengthen Nigeria’s external reserves but failing to lift the value of the naira.

Analysts say the naira is expected to moderate around N1,350 to N1,450 per US dollar as the local currency continues to struggle to strengthen against the greenback.