• Friday, June 14, 2024
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Five things to know to start your Thursday


Lagos pays N2bn to 644 retirees in August

The Lagos State Government disbursed N2.02 billion in retirement benefits to 644 retirees in August.

During the 101st retirement bond certificate presentation event, Babalola Obilana, Director-General of the Lagos State Pension Commission, emphasized that these certificates symbolized trust and confidence in retirees.

He praised the retirees for their dedication and contributions, setting high standards for the state’s future. Obilana also commended Governor Babajide Sanwo-Olu for consistent pension payments and commitment to the Contributory Pension Scheme, noting that the ceremony was an opportunity to recognize retirees’ remarkable contributions.

This event underscores Lagos’s ongoing support for its retired workforce.

Read also: Gabon coup: Rwanda, Cameroon carry out major changes in military

DMO sold N406bn T-bills in July – Report

In July 2023, the Debt Management Office (DMO) in Nigeria recorded a slight increase in treasury bill sales, totaling N406.10 billion, up 0.39 percent from June’s N404.51 billion.

The FMDQ Exchange’s financial markets report revealed this data, noting that the DMO also reopened various Federal Government bonds, raising N657.84 billion, with an oversubscription of 182.73 percent compared to June’s N473.16 billion.

During this period, the Central Bank of Nigeria did not conduct any public OMO bill auctions. Average FGN bond coupon rates decreased for 10-year, 15-year, and 30-year segments. Corporate bond listings in July amounted to zero, maintaining the total outstanding value at N1.76 trillion.

Coup triggers steepest decline in Gabon’s dollar-denominated bonds

Gabon witnessed a sharp decline in its dollar bonds following a military coup that occurred just weeks after a pioneering debt-for-nature swap.

Senior military officers in Gabon took control after President Ali Bongo’s controversial third-term victory.

Bond prices, especially the 2025 maturity, initially dropped by as much as 14 cents but recovered slightly, trading at 83.41 cents.

The coup’s success could lead to sanctions affecting financial transactions and further hinder access to finance in the region.

Investors are reevaluating their interest in Gabon, and lenders might reconsider concessional lending. Oil producers in Gabon, like TotalEnergies Gabon and Maurel et Prom, also suffered stock declines.

Gabon’s recent “debt for nature” swap involved Eurobonds but faced uncertainty due to the coup.

Fuel queue predictions rise amid vandalized pipelines

Persistent petrol queues plagued Lagos and Ogun states, and oil marketers anticipate prolonged product scarcity. Motorists faced queues at filling stations, and oil sector insiders suggest that the shortage may persist.

Akin Akinrinade, Chairman of the Satellite Depot, Independent Petroleum Marketers Association of Nigeria, noted the situation was deteriorating, attributing it to stock issues.

National Controller Operations, IPMAN, Mike Osatuyi, advised waiting for NNPC’s assurance that there’s no reason to panic.

The president of IPMAN, Elder Chinedu Okonkwo, stated that depots are loading, but the quantity in stock remained unspecified. Despite reassurances, queues persisted as some stations faced shortages or shut down.

Oil dips as China factory activity slows, market eyes US data

Oil prices experienced a decline following China’s fifth consecutive month of manufacturing activity contraction in August, heightening concerns about the country’s weak economic expansion.

Brent crude futures for October fell by 12 cents to $85.74 per barrel, with the more active November contract down 6 cents at $85.18. U.S. West Texas Intermediate crude futures for October eased 5 cents to $81.58.

Despite a recent tightening in U.S. oil supplies and fears of crude oil supply disruptions due to a military coup in Gabon, demand conditions are hampering price stability.

Investors are awaiting U.S. personal consumption expenditure data for further market direction.