Nigeria’s quoted Commercial Papers value decreases by 26.33% in March

The total value of Commercial Papers (CPs) quoted on FMDQ Exchange in March 2022 was N72.06billion, representing a month-on-month (MoM) decrease of 26.33percent (N25.76billion) from the value of CPs quoted in February 2022 (N97.82billion), according to FMDQ Exchange financial markets monthly report for March. The quoted CPs varied across financial services (6), agriculture (1) and manufacturing (4) sectors.

Also on non-sovereign securities, the total value of corporate bonds listed on FMDQ Exchange in March 2022 was N45.30billion representing a 51.03percent (N47.20billion) month-on-month (MoM) decrease from the value of corporate bonds listed in February 2022 (N92.50billion) despite the MoM increase in the number of listings from two (2) to three (3) bonds.

Corporate bond listings varied across Oil & Gas (2) and Transportation and Logistics sectors (1). In March 2022, total outstanding value for corporate bonds and CPs increased MoM by 3.28percent (N32.58billion) and 21.84percent (N50.86billion) to N1.026trillion and N283.75billion respectively, according to the recently released report.

On sovereign securities, the report shows that the Debt Management Office (DMO) sold T.bills valued at N410.72billion across its auctions in March 2022. Although, this exceeded the amount offered (N237.29billion) indicating the sustained demand for T.bills, it represents a 13.16percent (N62.25billion) MoM decrease in T.bills sold relative to February 2022 (N472.97billion).

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Similarly, the DMO sold 10Y and 20Y FGN Bonds valued at N297.01billion indicating its sustained demand although it represents a 28.50percent (N118.41billion) MoM decrease from the N415.42billion sold for the same issues in February 2022. In March 2022, the CBN sold OMO Bills worth N170billion representing 100percent of the amount offered (N170billion) and 37.04percent (N100billion) decrease from N270billion worth of OMO bills sold in February 2022.

Turnover in FMDQ markets for the month ended March 31, 2022 was N15.16trillion, representing a MoM increase of 6.54percent (N930billion) and YoY decrease of 22.46percent (N4.39trillion), respectively. Foreign Exchange (FX) and Money Market transactions were the highest contributors to the FMDQ markets turnover in March 2022, jointly accounting for 53percent of the total FMDQ markets turnover.

Total market turnover for all products traded in the spot market was N13.12trillion in March 2022, representing a MoM increase of 5.04percent (N630billion) from the turnover recorded in February 2022 (N12.49trillion). The MoM increase in total spot market turnover was driven by the 18.18percent (N420billion) and 14.34percent (N410billion) increase in FX market and money market (MM) turnover despite the 2.61percent (N190billion) decrease in fixed income (FI) market turnover in March 2022.

The MoM decrease in FI market turnover was driven by the MoM decrease in T.bills and FGN Bonds by 13.77percent (N190billion) and 13percent (N260billion) respectively despite the 1.93percent (N60billion), 25.32percent (N200billion) and 33.33percent (N10billion) increase in OMO Bills, CBN Special Bills and Other Bonds respectively.