Central Bank of Nigeria: Half Year Activity Report 2017

Transcription

1. Table of Contents FOREWORD .............................................................................................................................................. vii PREFACE .................................................................................................................................................. viii OVERVIEW ..................................................................................................................................... 1 1.0 1. 1 Global Economy .............................................................................................................................. 1 1.2 Domestic Economy .......................................................................................................................... 3 1.3 Monetary Policy ............................................................................................................................ 4 1.4 Nigerian Financial Markets Operations ........................................................................................ 4 1.4.1 Money Market ....................................................................................................................... 4 1.4.2 Foreign Exchange Market ..................................................................................................... 5 1.4.3 Capital Market Development ................................................................................................ 5 1.5 Federal Government Domestic Debt............................................................................................. 5 1.6 Activities of Internal and Inter-Agency Committees .................................................................... 6 1.7 Other Developments in the Nigerian Financial Markets............................................................... 6 1.8 Guidelines and Circulars ............................................................................................................... 6 DOMESTIC MONEY MARKET OPERATIONS ........................................................................... 7 2.0 Liquidity Management .................................................................................................................. 7 2.1 Open Market Operations ........................................................................................................... 7 2.1.1 2.1.1.1 Open Market Operations Auctions........................................................................................ 8 2.1.1.2 Two-Way Quote Trading ...................................................................................................... 9 Discount Window Operations ................................................................................................... 9 2.1.2 2.1.2.1 Rediscounting ....................................................................................................................... 9 2.1.2.2 Repurchase Transactions..................................................................................................... 10 2.1.2.3 CBN Standing Facilities ........................................................................................................... 10 2.1.2.3.1 Standing Lending Facility ............................................................................................... 10 2.1.2.2.2 Standing Deposit Facility ................................................................................................ 11 2.2 Inter-bank Funds Market............................................................................................................. 11 2.3 Interest Rates Movement ............................................................................................................ 12 2.4 Central Bank of Nigeria Promissory Notes................................................................................. 14 3.0 FOREIGN EXCHANGE MARKET OPERATIONS ..................................................................... 15 i
2. 3 .1 Developments in the Foreign Exchange Market ......................................................................... 15 3.2 Inter-bank Foreign Exchange Market ......................................................................................... 16 3.3 Naira-Settled Over the Counter Foreign Exchange Futures ....................................................... 18 3.4 Bureaux-de-Change .................................................................................................................... 18 3.5 Interbank Foreign Exchange Rate Movement............................................................................. 18 CAPITAL MARKET DEVELOPMENTS ..................................................................................... 25 4.0 Nigerian Stock Market ................................................................................................................ 25 4.1 4.1.1 All Share Index and Market Capitalisation ......................................................................... 25 4.1.2 Market Turnover ................................................................................................................. 26 4.1.3 Sectoral Distribution of Market Activities .......................................................................... 27 4.1.4 New and Supplementary Listings and Delisting ................................................................. 27 4.1.5 Other Developments in the Capital Market ........................................................................ 27 FEDERAL GOVERNMENT DOMESTIC DEBT ......................................................................... 29 5.0 Nigerian Treasury Bills ............................................................................................................... 29 5.1 5.1.1 Structure of Outstanding Nigerian Treasury Bills Holdings ............................................... 30 5.2 Federal Republic of Nigeria Treasury Bonds.............................................................................. 31 5.3 Federal Government of Nigeria Bonds ....................................................................................... 31 5.4 Domestic Debt Charges .............................................................................................................. 32 5.4.1 Over-the-Counter Transactions in Nigerian Treasury Bills .................................................... 32 5.4.2 Over-the-Counter Transactions in Federal Government of Nigeria Bonds ............................ 32 5.5 Asset Management Corporation of Nigeria Bonds ..................................................................... 32 5.6 Federal Government of Nigeria Savings Bonds.......................................................................... 33 ACTIVITIES OF INTERNAL AND INTER-AGENCY COMMITTEES .................................... 34 6.0 6.1 Liquidity Assessment Group ....................................................................................................... 34 6.2 Non-Interest Financial Institutions Product Development Committee ....................................... 34 6.3 Fiscal and Liquidity Assessment Committee .............................................................................. 35 6.4 Financial Stability Report Committee......................................................................................... 35 6.5 Financial Services Regulation Coordinating Committee ............................................................ 35 6.5.1 Workshop on Green Finance............................................................................................... 36 6.5.2 Production of Nigerian Financial System Stability Dashboard .......................................... 36 6.5.3 Fight against Illegal Fund Managers (IFMs) ...................................................................... 36 ii
3. 6 .5.4 Consolidated Examination of the Financial Holding Companies ....................................... 36 6.5.5 Executive Order on the Ease of Doing business in Nigeria ................................................ 36 6.6 FGN Sovereign Sukuk ................................................................................................................ 37 6.7 Resuscitation of the Nigerian Commodity Exchange .................................................................. 37 7.0 MAJOR DEVELOPMENTS IN THE NIGERIAN FINANCIAL MARKETS.............................. 38 7.1 Suspension of the Implementation of the Inter-change Regime ................................................. 38 7.2 Licensing, Regulation and Supervision of Private Asset Management Companies ................... 38 7.3 Revision of the Guidelines on Bancassurance Products- Referral Model .................................. 38 7.4 Code of Corporate Governance for Other Financial Institutions ................................................ 39 7.5 Virtual Currency Operations ....................................................................................................... 39 7.6 Revised Nigerian Clearing System Rules ................................................................................... 39 7.7 Suspension of the National Implementation of the Cash-Less Policy ........................................ 39 Appendix: Index of Financial Markets Regulatory Circulars and Guidelines 2017 ................................... 41 List of Figures Figure 2.1 Open Market Operations, January-June, 2017 .................................................................................. 8 Figure 2.2 Open Market Operations, January-June, 2016 .................................................................................. 9 Figure 2.3 Money Market Rates, 2017 (Monthly Averages) .............................................................................. 13 Figure 2.4 Money Market Rates, 2016 (Monthly Averages)…………………………………………………… 13 Figure 3.1 Inter-bank Transactions, January – June 2017 ................................................................................ 17 Figure 3.2 Inter-bank Foreign Exchange Transactions, 2016 ........................................................................... 17 Figure 3.3 Inter-bank and BDC Rates, 2017 ...................................................................................................... 19 Figure 3.4 Inter-bank and BDC Rates, 2016 ...................................................................................................... 20 Figure 3.5 Average Rate Premium between BDC and Inter-Bank, January-June 2017 ................................... 21 Figure 3.6 Average Rate Premium between BDC and Inter-bank, January - June 2016 ................................. 22 Figure 5.1 NTB Primary Market Auction, January - June, 2017 ...................................................................... 30 Figure 5.2 NTB Primary Market Auction, January – June, 2016 ..................................................................... 30 List of Tables Table 2.1 OMO Subscription and Sale............................................................................................................... 44 Table 2.2 Repurchase Transactions ................................................................................................................... 45 Table 2.3 Standing Lending Facility (=N=) ........................................................................................................ 46 Table 2.4 Standing Deposit Facility (=N=) ......................................................................................................... 46 Table 2.5 Inter-Bank Placements (=N=Billion) .................................................................................................. 47 Table 2.6 Monthly Money Market Rates, 2017 (Per Cent) ................................................................................ 48 iii
4. Table 2 .7 Monthly Money Market Rates, 2016 (Per Cent) ................................................................................ 49 Table 2.8 Promissory Notes ................................................................................................................................ 50 Table 2.9 Rediscounting ..................................................................................................................................... 50 Table 3.1 Inter-Bank/Retail Dutch System, (US$ Million) ...................................................................................51 Table 3.2 Average Inter-Bank and BDC Rates (N/US$) ........................................................................................ 52 Table 4. 1 The Nigerian Stock Exchange Transactions .......................................................................................... 53 Table 4. 2 Quarterly Distribution of Transactions on the Nigerian Stock Exchange .......................................... 53 Table 4. 3 Sectoral Distribution of Transactions on the Nigerian Stock Exchange ............................................. 54 Table 4. 4 Foreign Portfolio Participation in Equity Trading ............................................................................... 55 Table 4. 5 Listings and Delisting in 2017 ................................................................................................................. 56 Table 5. 1 Nigerian Domestic Debt: Composition .............................................................................................. 59 Table 5. 2 Primary Market: Nigerian Treasury Bills Transactions (N'Billion) ................................................ 60 Table 5. 3 Nigerian Treasury Bills Outstanding: Class of Holders ................................................................... 60 Table 5. 4 Federal Republic of Nigeria Treasury Bonds: Class of Holders ....................................................... 61 Table 5. 5 Federal Government of Nigeria Bonds Issue, 2017 ........................................................................... 62 Table 5.5.1 Federal Government of Nigeria Bonds Issue, 2016 ………………………………………………… 63 Table 5.6 Federal Government of Nigeria Bonds Outstanding ......................................................................... 64 Table 5. 7 Federal Government of Nigeria Bonds Outstanding: Class of Holders ............................................ 65 Table 5. 8 Marginal Rates and Range for Successful Bids Schedule ................................................................. 66 Table 5.9 Over the Counter Transactions .......................................................................................................... 67 Table 5. 10 Domestic Debt Charges, 2017 .......................................................................................................... 68 Table 5. 11 Domestic Debt Charges, 2016 .......................................................................................................... 69 Table 5. 12 FGN Savings Bonds Reopening ....................................................................................................... 70 List of Abbreviations ASeM- Alternative Securities Market ASI- All Share Index BDC- Bureau-de-Change BVN- Bank Verification Number BAFM- Building African Financial Markets CBN- Central Bank of Nigeria CGRS- Corporate Governance Rating System CoG- Committee of Governors CRR- Cash Reserve Ratio DHs- Discount Houses DMBs- Deposit Money Banks GRI- Global Reporting Initiative iv
5. DMO- Debt Management Office ETF- Exchange Traded Funds FCT- Federal Capital Territory FED- Federal Reserve Bank FIRS- Federal Inland Revenue Service FLAC- Fiscal and Liquidity Assessment Committee FMD- Financial Markets Department FMDA- Financial Markets Dealers Association FMDQ- Financial Markets Dealers Quotation FMF- Federal Ministry of Finance FRN- Federal Republic of Nigeria FSR- Financial Stability Report FSRCC- Financial Services Regulation Coordinating Committee FSS- Financial System Strategy GDP- Gross Domestic Product ICPC- Independent Corrupt Practices and other Offences Commission ILF- Intraday Liquidity Facility LAG- Liquidity Assessment Group LSEG- London Stock Exchange Group MC- Market Capitalization MPIC- Monetary Policy Implementation Committee MPR- Monetary Policy Rate MPTC- Monetary Policy Technical Committee MSC- Market Support Committee NAICOM- National Insurance Commission NBS- National Bureau of Statistics NCS- Nigeria Customs Service NCX- Nigeria Commodity Exchange v
6. NEFT- Nigeria Electronic Funds Transfer NIBOR- Nigerian Interbank Offered Rate NIBSS- Nigerian Inter Bank Settlement System NIP- NIBSS Instant Payment NNPC- Nigerian National Petroleum Corporation NSE- Nigerian Stock Exchange NTBs- Nigerian Treasury Bills OMO- Open Market Operations OTC- Over-the-Counter PENCOM- Pension Commission PSV- Payments System Vision 2020 RDAS- Retail Dutch Auction System SDF- Standing Deposit Facility SEC- Securities and Exchange Commission SLF- Standing Lending Facility vi
7. FOREWORD The challenges faced by the Nigerian financial system since mid-2014 , following the sharp decline in crude oil price, reduction in external reserves, increased foreign exchange demand pressures and volatility of the exchange rate were ameliorated in the first half of 2017. The path to recovery was daunting, for the mono-product and import dependent economy. The Bank deployed heterodox policies aimed at stabilising the naira exchange rate in order to achieve rate convergence in the various segments of the market. This culminated in the introduction of the Nigerian Autonomous Foreign Exchange (NAFEX) Window, otherwise known as the Investors and Exporters Window. I am, glad to note that the initiatives put in place yielded the desired result as the foreign exchange market became stable and the arbitrage premium between the inter-bank and bureaux de change (BDC) narrowed. The decision to continue with contractionary monetary policy stance was not an easy one, at a time when the economy was in recession. However, the Bank had to focus on its key mandate of maintaining price stability. To curb rising prices, Open Market Operations became the major tool of liquidity management, complemented by statutory reserves requirement, discount window and other monetary operations. Consequently, the inflation rate, which stood at 18.72 per cent in January moderated gradually to 16.10 per cent at end-June 2017. The Financial Markets Department (FMD) played a significant role in the implementation of monetary policy to achieve the foregoing. I hereby commend the staff of the FMD for their unwavering commitment to the realization of the Bank’s mandate. Okwu Joseph Nnanna, Ph.D Deputy Governor, Central Bank of Nigeria vii
8. PREFACE The 2017 half-year Financial Markets Activity Report highlights the activities of the Financial Market Department (FMD), aimed at implementing the Central Bank of Nigeria monetary policy, vis a vis the money, capital, fixed income and foreign exchange markets. The report has eight chapters. Chapter one provides an overview, while chapter two examines the operations in the domestic money market. Chapter three focuses on the developments in the foreign exchange market and chapter four on developments in the capital market. The Federal Government domestic debt activities are captured in chapter five; stakeholder collaborations and related committee activities are detailed in chapter six; while the major developments in the Nigerian financial markets are presented in seven. The appendix contains the list of guidelines and circulars issued in the first half of 2017. On behalf of the staff of the Financial Markets Department, I wish to express our gratitude to the Management of the Central Bank of Nigeria for its continued support of the Department in the achievement of the set goals. Dr. Alvan E. Ikoku Director, Financial Markets Department viii
9. 1 .0 OVERVIEW 1. 1 Global Economy In the first half of 2017, the global economic environment was shaped by the effects of geopolitical developments that followed the United Kingdom’s exit from the European Union (Brexit) elections and the United States of America (USA) presidential elections, both in 2016, and continuing tension in the Middle East. These affected prospects of the relationship between the United Kingdom and the rest of the European Union, and the avowed policy direction of the President of the USA with the rest of the world. Amidst these, commodity prices weakened, with the global oil price in particular, that opened at US$60 slowing to US$42 in June 2017. The decline reflected the increasing supply at the international market due to weak compliance to OPEC production cuts by member states, resilience of the US shale oil industry and improved oil production in Libya and Nigeria, amongst other factors. This had positive effects on oil importing economies, but, negatively impacted oil exporting countries, and precipitated OPEC to extend oil production cuts till the first quarter of 2018, to shore up prices. Headline inflation remained at levels well below central bank targets in most advanced economies, while core inflation in emerging economies remained broadly stable, with a few, such as Brazil and Russia, witnessing strong declines. Capital flows to emerging economies were robust and resilient in the first few months of 2017, with a notable increase in non-resident portfolio inflows and bond issuances. On exchange rates, the U.S. dollar depreciated by about 3.5 percent in real effective terms, while the Euro strengthened by a similar rate against the backdrop of increased confidence in the Euro-area recovery, and a decline in political risk. Exchange rate changes across emerging market currencies were relatively modest, with some strengthening of the Mexican peso on tight monetary policy and reduced concerns about U.S. trade frictions, and a depreciation of the Brazilian currency (real) on renewed political uncertainty. Thus, performance in the USA reflected economic growth of 2.1 per cent in the first half of 2017, higher than the growth of 1.65 per cent recorded in the last half of 2016. Similarly, yields 1
10. on fixed income securities rebounded , in anticipation of improved prospects for growth and higher prices, after a sustained period of low bond yields. In the UK, however, the economy weakened due to rising inflation and slow consumer demand as the consequence of Brexit, with the gross domestic product (GDP) growth at 0.3 per cent in the first half of 2017, driven by services such as retail and film production & distribution, as against 0.7 per cent in the last half of 2016. In Europe, the elections in France symbolised a strengthening of reforms in the Euroarea and a restoration of economic integration against the threat of further dismemberment. Thus, growth rate in the 28-member Euro-area was sustained at 0.6 per cent in the first half of the year, same as in the preceding half of 2016. The economies of Germany, France, Spain, Belgium and Austria grew by 0.6, 0.5, 0.9, 0.5 and 0.8 per cent, respectively, in the period under review as against 0.3, 0.4, 0.7, 0.3 and 0.7 per cent, in the preceding half year. In Asia, the Chinese economy expanded by 6.9 per cent in the first half of 2017, against 6.8 per cent in the preceding half year. The observed improvement in the review period was buoyed by a booming property sector and the positive outcomes of ongoing fiscal reforms. The economy of Japan also recorded improved growth marginally at 1.5 per cent in the first half of 2017, attributable to strong domestic demand, over 1.4 per cent expansion in the last half of 2016. Growth in India, however, slowed to 6.0 per cent in the first half of 2017, from 7.3 percent in preceding half year 2016, due to a fall in manufacturing output in the second quarter of 2017, for the first time since November 2015. Growth in the Middle East and North Africa (MENA) region declined due to unending economic and political headwinds as well as subdued crude oil prices and production cuts mandated by the Organisation of Petroleum Exporting Countries (OPEC). Hence, Saudi Arabia with the most oil production cuts experienced stunted growth and Yemen, which has been enmeshed in civil strife since 2015 continued to contract economically. Consequently, the preliminary estimate was that the region’s GDP expanded by 2.4 per cent in the first half of 2017, lower than the 2.9 per cent recorded in the preceding half of 2016. The estimated slowdown in the review period was accounted for, in part, by the economic performance in some of the countries in the region, like Iran and Israel, which had impressive performance in previous quarters. 2
11. In Sub-Saharan Africa , growth rate was positive with stronger performance in non-resource rich countries compared to the resource rich ones that suffered commodity price shocks, foreign exchange shortages and fiscal deficits. Nonetheless, the region was generally faced with other obstacles to growth, including weak foreign direct investment, public debt burdens and political risk, as with other emerging and developing economies. Nigeria, the dominant economy in the region, exited recession in the second quarter of 2017. This resulted in a growth rate of negative 0.09 per cent for the country in the first half of 2017 compared to the negative growth rate of 2.03 per cent in the last half of 2016. In Ghana, the gross domestic product grew by 1.3 per cent in the first half of 2017 as against 0.7 per cent in the last half of 2016. The growth reflected increased output in manufacturing, oil production and agriculture, amongst other sectors of the economy. South Africa, the second largest economy in the region plunged into recession in the first quarter of the review year, following two consecutive quarters of declines from the fourth quarter of 2016. The slowdown was occasioned by sharp fall in both the secondary and tertiary sectors of the economy, particularly in the trade and manufacturing sectors. However, the South African economy exited the recession in the second quarter owing to stellar performance in agriculture amid improved weather conditions, mining and exports. This led to a positive growth of 0.5 per cent or 2.5 per cent annualised seasonally-adjusted growth rate, in the second half of 2017. 1.2 Domestic Economy The Nigerian economy exited its five-quarters recession in the second quarter of 2017, as the real gross domestic product expanded by 0.72 per cent. This resulted in half year growth rate of negative 0.09 per cent in the first half of 2017 as against 1.08 per cent negative growth rate in the preceding half year. The modest recovery was attributable to moderate recovery in the oil prices, increased oil production in the volatile Niger Delta region and a rebound in capital spending as well as in the non-oil sector, particularly agriculture, manufacturing and services, amongst others. The launch of the Federal Government’s Economic Recovery and Growth Plan (ERGP) in the review period, designed specifically to accelerate infrastructure development and diversification of the economy through industrialisation, address unstable energy supply, ensure adequate food security, and promote social investment, further provided support to the economy. 3
12. Inflation also improved during the review period , with five-monthly declines from 18.55 percent in the first quarter to 17.26 per cent in second quarter of 2017. In the foreign exchange market, the foreign exchange rate was relatively stable owing to increased supply that followed various measures adopted by the monetary authority in the review period. The measures included the resumption of sale of foreign exchange to bureaux-de-change (BDCs), introduction of windows for small and medium scale enterprises (SMEs), invisibles and for the investors and exporters (I&E). The measures further brought about reduced premium and arbitrage between the interbank and BDC segments and a convergence in exchange rates. 1.3 Monetary Policy Monetary policy during the period was tight with the Monetary Policy Rate (MPR), Cash Reserve Requirement (CRR) and Liquidity Ratio maintained at 14.00, 22.50 and 30.0 per cent, respectively. The asymmetric corridor around the MPR was retained at +200/-500 basis points, resulting in the maintenance of the Standing Lending Facilities (SLF) and Standing Deposit Facilities (SDF) at 16.00 and 9.00 per cent, respectively. The Central Bank of Nigeria (CBN) intervened regularly at the interbank segment of the foreign exchange market and sustained its sale to bureaux de change (BDCs) and deposit money banks (DMBs) in order to maintain exchange rate stability. 1.4 Nigerian Financial Markets Operations 1.4.1 Money Market The activities in the money market during the period reflected the trend in liquidity flows in the banking system. The interplay of the forces of demand for and supply of funds by authorized dealers in the inter-bank market indicated over reliance on collateralized transactions. This reflected market players’ sentiment on risk management. The fiscal operations of government sustained constant flow of liquidity into the system alongside the discount window operations, repurchase agreement and repayment of maturing obligations from the primary market of government securities. 4
13. 1 .4.2 Foreign Exchange Market The foreign exchange market witnessed persistent demand pressures, resulting in arbitrage between the inter-bank market and BDCs rates. To address the gap, the Bank adopted different measures. These included targeted foreign exchange sales to some critical sectors for raw materials, machinery, agriculture, aviation and petroleum; increased funding of the demand for invisibles (personal and business travel allowances, as well as medical and school fees). Furthermore, a special window was opened for the funding of small and medium scale enterprises to access a maximum of US$20,000.00 weekly for eligible imports. In addition, the CBN actively participated in the Over-the-Counter (OTC) Naira Settled Futures market, and introduced the Investors and Exporters (I&E) window to facilitate independent trade on the Financial Market Dealers Quotations (FMDQ) OTC Exchange. 1.4.3 Capital Market Development Activities at the Nigerian capital market rebounded and transactions on the floor of the Nigerian Stock Exchange (NSE) remained largely bullish. The development was attributable to the liberalization of the foreign exchange market which boosted investors’ confidence and increased capital inflow, coupled with the gradual recovery from the economic recession. 1.5 Federal Government Domestic Debt The total domestic debt outstanding to the Federal Government at end June, 2017 stood at N11,860.77 billion, compared with N10,606.33 billion in the corresponding period of 2016. This indicated an increase of N1,254.43 billion or 11.83 per cent. The debt stock in the period under review comprised FGN Bonds worth N7,962.19 billion or 67.13 per cent, NTBs worth N3,702.83 billion or 31.22 per cent and FGN Saving Bonds worth N4.75 billion or 0.04 per cent. Consequently, the cost of servicing the debt also grew, by 11.34 per cent to N687.37 billion at end-June 2017, compared to N617.36 billion at end-June 2016. 5
14. 1 .6 Activities of Internal and Inter-Agency Committees The Financial Markets Department (FMD) was involved in collaborative activities with internal and external stakeholders to further deepen the financial markets as well as promote timely market interventions towards the achievement of monetary policy objectives. These activities were also undertaken to obtain timely market intelligence reports on the impact of monetary policy decisions and promote the development of efficient markets. 1.7 Other Developments in the Nigerian Financial Markets The actions taken by the various regulatory authorities influenced activities in the Nigerian financial markets. These included the enactment of policies aimed at enhancing financial intermediation, developing the payments system, deepening the capital and commodities markets and ensuring effective management of foreign exchange. 1.8 Guidelines and Circulars The CBN issued new guidelines and circulars to operators in the financial markets to guide their activities. In the same vein, some of the existing guidelines and circulars were revised. The details of the releases can be accessed on the CBN website, www.cbn.gov.ng. Appendix 1 contains a list of the documents. 6
15. 2 .0 DOMESTIC MONEY MARKET OPERATIONS The developments in the money markets reflected the tight monetary policy stance. Contributory factors to the tightness included the frequent OMO auctions, foreign exchange interventions and the adjustments to the operational modalities of CRR. The money market rates recorded wider oscillations in the first half of 2017, compared to the first half of 2016, despite the increased patronage of the discount window. 2.1 Liquidity Management The liquidity in the banking system was influenced by fiscal and monetary operations. The fiscal authorities enhanced cash flows through repayments of maturing debt obligations and releases of Statutory Revenue Allocation (SRA) and Value Added Tax (VAT) to the three tiers of government, while the monetary authorities conducted open market operations and interventions in the foreign exchange market that impacted the cash balances of the DMBs. These activities were complemented by net external flows from the private sector. In view of the restrictive monetary policy stance during the period, the MPR was retained at 14.00 per cent, with the asymmetric corridor at +200/-500 basis points for SLF and SDF, respectively. The CRR and liquidity ratio were equally maintained at 22.50 and 30.00 per cent, respectively. At the foreign exchange market, liquidity was enhanced by the Bank’s increased supply to the various segments of the market, resulting in the appreciation of the naira. 2.1.1 Open Market Operations OMO remained the major instrument for liquidity management in the first half of 2017, and was used to moderate excess liquidity, boost tradable securities, and deepen secondary market activities. 7
16. 2 .1.1.1 Open Market Operations Auctions The CBN Bills that were offered amounted to N3,702.96 billion, while total public subscription and sale amounted to N4,593.93 billion and N3,871.27 billion, respectively. This compared with N1,922.45 billion, N3,869.94 billion and N2,329.75 billion offered, subscribed to and sold respectively, in the corresponding period of 2016 (Table 2.1; Figure 2.1 and 2.2). The tenors of OMO auction ranged from 140 to 364 days, while the stop rates were between 16.00 to 18.60 per cent. In the preceding year, the tenors ranged between 143 and 364 days, while the stop rates were between 7.70 and 13.50 per cent. The increased transactions during the review period were attributable to the greater monetary tightening stance that resulted in increased number of auctions. In addition, CBN Bills maturities and the monthly disbursements to the three tiers of government by the Federation Account Allocation Committee (FAAC) contributed. Thus, the cost of liquidity management amounted to N577.46 billion compared to N122.99 billion in the corresponding period of 2016. Figure 2.1 Open Market Operations, January-June, 2017 8
17. Figure 2 .2 Open Market Operations, January-June, 2016 1,000.00 900.00 800.00 700.00 N'Billion 600.00 500.00 400.00 300.00 200.00 100.00 Offer January 270.00 February 200.00 March 354.86 April 440.00 May 201.65 June 455.94 Subscription 913.26 630.89 706.99 710.30 365.70 540.80 Sales 698.42 509.23 394.63 363.72 64.63 299.12 2.1.1.2 Two-Way Quote Trading There was no transaction at the two-way quote trading segment in the first half of 2017, just as in the first half of 2016, owing to the discretionary stance of the Bank. However, in the last half of 2016, there were transactions amounting to N16.00 billion at a marginal rate of 18.00 per cent for 185-day tenors. 2.1.2 Discount Window Operations 2.1.2.1 Rediscounting At the instance of two DMBs, CBN Bills worth N5.29 billion with tenors ranging from 6 to 129 days were rediscounted at 18.80 to 19.10 per cent. Interest that accrued to the banks was N0.16 billion. In the corresponding period of the preceding year, government securities valued at N35.36 billion with tenors of 27-188 days were rediscounted at rates that ranged from 16.25 to 17.15 per cent. Interest that accrued to the bank was N1.71 billion. Generally, rediscounting activities have been low over the last few years owing to Management’s permissibility and the punitive rate that applies, which acts as a disincentive (Table 2.9). 9
18. 2 .1.2.2 Repurchase Transactions Repurchase (repo) transactions in the period under review amounted to N352.66 billion, while the corresponding interest earned stood at N16.05 billion. The applicable rates ranged from 18.50 to 19.50 per cent at tenors that ranged from 4 to 90 days. The high level of transactions was occasioned by the recurrence of some authorized dealers at the window to bridge liquidity shortfalls. However, there was no repo in the corresponding period of 2016 as eligible institutions utilized the Standing Lending Facility to meet short term funding gaps (Table 2.3). 2.1.2.3 CBN Standing Facilities In the first half of 2017, standing facilities were accessed by the banks to enable them either meet their short-term liquidity needs or place their surpluses. The rates for SDF and SLF remained at 9.00 and 16.00 per cent, respectively. 2.1.2.3.1 Standing Lending Facility SLF was utilized by the banks in order to enable them square up their positions after inter-bank market trading hours. Thus, the total SLF granted in the review period amounted to The patronage of the SLF reflected the liquidity position during the first half of the year. The requests were lowest on January 2 at N83.61 billion and highest on April 18 at N478.54 billion. In view of the 122 transaction days within the period, the daily average request amounted to N225.14 billion. N27,466.58 billion, out of which N20,629.98 billion was conversion from unsettled Intraday Liquidity Facility (ILF). The patronage of the facility reflected the liquidity position during the first half of the year, as requests were at its lowest on January 2, 2017 with N83.61 billion and at its highest on April 18, 2017 with N478.54 billion. In view of the 122 transaction days within the period, average daily request amounted to N225.14 billion. Consequently, the cumulative interest received on the facilities was N21.13 billion at 16.00 per cent (Table 2.3). In comparison with the corresponding period of the previous year, total SLF transactions amounted to N5,079.58 billion, out of which N4,836.61 billion was conversion from ILF. Thus, 10
19. the average daily request stood at N59 .76 billion, while the cumulative interest received on the facilities was N2.92 billion at the applicable rates of 13.00 and 14.00 per cent. The higher level of transactions over the corresponding period in 2016 was occasioned by the tight monetary operations in 2017. 2.1.2.2.2 Standing Deposit Facility The patronage of the SDF reflected the liquidity unease in the system as less funds were deposited compared with the corresponding period of the preceding year. The reduced patronage was due to tighter monetary operations through increased OMO auctions. The foreign exchange interventions, in addition, moderated the cash balances in the banking system. The restriction of N7.50 billion maximum remunerable SDF per bank remained applicable. The total request for SDF in the review period was N5,510.75 billion, indicating a daily average volume of N45.54 billion as against a total SDF of N12,699.74 billion and daily average of N102.42 billion in the corresponding period of 2016. Further analysis of the transactions indicated that the highest amount of SDF was N121.50 billion on February 2, while the lowest was N0.30 billion on March 20. Consequently, the interest paid on SDF amounted to N1.99 billion at the rate of 9.00 per cent in the first half of 2017, as against N2.84 billion at 4.00 per cent from January 1 to March 21 and 7.00 per cent from March 22 to June 30, 2016 (Table 2.4). 2.2 Inter-bank Funds Market The total value of transactions in the funds market stood at N864.93 billion in the first half of 2017, as against N513.11 billion in the corresponding period of 2016. The high level of activity in the review period was attributable to liquidity squeeze occasioned by tight monetary operations. Further analysis of the transactions indicated that open-buy-back (OBB) accounted for 89.42 per cent at N773.42 billion, while the unsecured recorded 10.58 per cent at N91.51 billion. In the preceding year, OBB accounted for less at N203.54 billion or 39.67 per cent compared to the unsecured segment which recorded N309.57 billion or 60.33 per cent (Table 2.5).The shift in patronage in favour of OBB in the review period was attributable largely to greater risk aversion by market participants. 11
20. 2 .3 Interest Rates Movement The movement in money market rates was influenced by liquidity conditions in the banking system. The contributory factors included the fiscal operations of government; effects of CRR maintenance periods; deposits and settlement for foreign exchange interventions, as well as the sale and maturity of CBN Bills. Consequently, the daily inter-bank call rates ranged from 4.43 to 200.00 per cent, while the daily OBB ranged from 2.51 to 162.45 per cent in the review period. The weighted monthly average rates at the call segment was 8.29 per cent in January, peaked at 58.73 per cent in April and moderated to 12.37 per cent in June 2017. Similarly, at the OBB, the weighted monthly average rates was 8.26 per cent in January, peaked at 45.07 per cent in April and moderated to 25.53 per cent in June 2017 (Table 2.6, Figure 2.3). During the first half of 2016, the weighted monthly average rates at the call segment was 2.75 per cent in January and peaked at 29.91 per cent in June 2016. Similarly, at the OBB, the weighted monthly average rates was 2.90 per cent in January and rose to 21.75 per cent in June 2016 (Figure 2.4). 12
21. Figure 2 .3 Money Market Rates, 2017 (Monthly Averages) 70.00 60.00 50.00 Percent 40.00 30.00 20.00 10.00 January February Inter-bank Call March NIBOR (7-Day) April May NIBOR (30-Day) June OBB MPR Figure 2.4 Money Market Rates, 2016 (Monthly Averages) 35.00 30.00 25.00 Percent 20.00 15.00 10.00 5.00 0.00 January February Inter-bank Call March NIBOR (7-Day) 13 April NIBOR (30-Day) May June OBB MPR
22. 2 .4 Central Bank of Nigeria Promissory Notes Promissory notes were not issued in the first half of 2017 as in 2016 (Table 2.8). This was due to the absence of claims in respect of the liabilities of the acquired banks. 14
23. 3 .0 FOREIGN EXCHANGE MARKET OPERATIONS The foreign exchange market witnessed relative stability in the first half of 2017, owing to the policy adjustments by the Bank which improved supply and moderated exchange rate volatility. Some of the measures included sale of foreign exchange to both banks and BDCs for retail demand, introduction of special windows for small and medium scale enterprises, and investors and exporters, and the active participation of the Bank at the OTC Naira Settled Futures market, real sector financing, motivation for local content sourcing and backward integration, amongst others. Consequently, the exchange rate at the BDC segment, which opened high at the beginning of the year and peaked at N515.00/US$ in February, decelerated sharply and stabilized around N366.00/US$ at the end of the half year. Nevertheless, the inter-bank rate remained stable around N305.00/US$ throughout the review period. 3.1 Developments in the Foreign Exchange Market There was a significant improvement in the liquidity in the foreign exchange market as supply increased, leading to exchange rate moderation. This followed the resumption of CBN supply to the BDCs as well as provisioning for invisibles (personal and business travel allowances as well as medical and school fees) that were hitherto funded from autonomous sources. In addition, the Bank introduced special windows for Investors’ and Exporters (Nigerian Autonomous Foreign Exchange, (NAFEX)); SMEs to purchase US$20,000 quarterly for eligible transactions; and direct interventions to some critical transactions (selected raw materials, machinery, agriculture, aviation and petroleum products imports). As a result, the exchange rate at the inter-bank market remained relatively stable, while it appreciated markedly at the BDC segment of the foreign exchange market. The reduction of tenors from a maximum of 180 days to much shorter days in the forward market, mandate to the DMBs to open foreign exchange retail outlets including at major airports, amongst others, contributed to assuaging market expectations. 15
24. 3 .2 Inter-bank Foreign Exchange Market In line with the subsisting foreign exchange management mechanism, the CBN continued to intervene at the inter-bank segment of the market with total sales amounting to US$7,642.61 million. This comprised US$747.89 million spot, US$704.86 million for invisibles, US$441.00 million for SMEs and US$5,748.86 million at the forwards market. On the other hand, the CBN purchased a total of US$1,013.75 million at the interbank market. Consequently, net sales by the Bank amounted to US$6,628.86 million; while the sum of US$5,332.66 million matured at the forward segment of the market, and US$1,988.67 million remained outstanding at end-June 2017. In the first half of 2016, the Bank sold a total of US$9,215.62 million, made up of US$5,727.86 million spot and US$3,487.76 million at the forwards market. However, there was neither purchase nor maturity at the forward market (Table 3.1, Figures 3.1 and 3.2). The introduction of special windows for Investors’ and Exporters (Nigerian Autonomous Foreign Exchange, NAFEX) to execute transactions, sale of US$20,000 quarterly to each SME for eligible transactions, and direct interventions to some critical transactions The sales by the CBN in the first half of 2017 were lower, traceable to the policy adjustments that encouraged larger autonomous inflows into the market. (selected raw materials, machinery, agriculture, aviation and petroleum products imports). 16
25. Figure 3 .1 Inter-bank Transactions, January – June 2017 3000.00 2500.00 2000.00 1500.00 1000.00 500.00 0.00 January February March April May June Amount Sold at the Inter-bank Spot Figure 3.2 Inter-bank Foreign Exchange Transactions, 2016 2700 US$ mIllion 2200 1700 1200 700 200 Inter-bank sales (US$'million) January February March April May June 973.57 895.77 1093.05 727.69 617.5 1423.81 17
26. 3 .3 Naira-Settled Over the Counter Foreign Exchange Futures The sum of US$1,830.45 million was traded in the futures market, while US$2,771.24 million matured and US$2,714.41 million remained outstanding at end-June 2017. There was no transaction in the corresponding period of 2016 as the derivative product was introduced on June 20, 2016, while transactions commenced thereafter, with the aim of enhancing market liquidity, promoting futures transactions and minimizing frontloading activities. The product, which is tradable on the FMDQ OTC securities exchange, entitles parties to agree an exchange rate for a non-deliverable forward (notional amount) and settle at maturity on the basis of exchange rate differential, with reference to the spot rate in the local currency. 3.4 Bureaux-de-Change The direct sale of foreign exchange by the Bank to the BDCs resumed in the first half of 2017, in addition to sales by DMBs and Travelex, thereby increasing supply in the retail market and bridging the gap in exchange rate premium with the inter-bank market. Thus, the daily BDC exchange rate, which opened at N490.00/US$ closed at N366.00/US$ at end-June 2017. However, the exchange rate depreciated to N515.00/US$ on February 20, 2017 before appreciating appreciably to N365.00/US$ on June 2, 2017. On monthly basis, the average exchange rate opened at N493.29/US$ in January and closed at N366.25/US$ in June, 2017 (Table 3.2). 3.5 Interbank Foreign Exchange Rate Movement At the inter-bank segment of the market, the daily exchange rate opened at N305.00/US$ and closed at N305.90/US$ at end-June 2017. The rate was relatively stable as a result of increased supply in the market through interventions by the monetary authority. On monthly basis, the average exchange rate opened at N305.20/US$ in January and depreciated gradually to N306.40/US$ in March before closing low at N305.71/US$ in June, 2017. Arising from the improved supply of foreign exchange, the average premium in exchange rate between the inter-bank market and BDC segment decelerated steadily from a high of N189.39 or 18
27. 62 .03 per cent in February, 2017 and closed at N60.54 or 19.80 per cent in June (Table 3.2; Figure 3.3 and3.4). Figure 3.3 Inter-bank and BDC Rates, 2017 19
28. Figure 3 .4 Inter-bank and BDC Rates, 2016 400.00 350.00 N/US$ 300.00 250.00 200.00 150.00 100.00 50.00 0.00 Inter-Bank BDC January 197.00 289.78 February 197.00 329.83 March 197.00 320.93 April 197.00 320.71 May 197.00 336.93 June 231.76 351.82 In the first half of 2017, the average exchange rate premium between the BDC and inter-bank moderated steadily from N188.09 in January to N60.54 in June (Figure 3.5), corresponding to a reduction in the percentage premium from 61.63 to 19.80 per cent. This represented an improvement over the performance during the corresponding period of 2016, when the premium increased from N92.78 to N120.06 between January and June (Figure 3.6). The development in the first half of 2017 was as a result of improved liquidity in the foreign exchange market. 20
29. Figure 3 .5 Average Rate Premium between BDC and Inter-Bank, January-June 2017 21
30. Figure 3 .6 Average Rate Premium between BDC and Inter-bank, January - June 2016 22
31. Box Information - The Federal Government of Nigeria 's Economic Recovery and Growth Plan 2017-2020: Implications for the Central Bank of Nigeria Box Information The Federal Government of Nigeria Economic Recovery and Growth Plan, 2017 – 2020: Implications for the Central Bank of Nigeria In line with the fiscal strategy and medium-term expenditure framework (MTEF), the Federal Government propagated the economic recovery and growth plan (ERGP) to guide its operations within the period, and follow up the Strategic Implementation Plan (SIP) set out in the 2016 Budget of Change. The plan aims to diversify the economy and address its over-reliance on commodity exports and import dependency. It further targets to enhance the realization of government objectives towards curbing corruption, improving security and re-building the economy. In addition, the ERGP proposes to promote a knowledge-based economy, innovation, ease of doing business and market-based solutions through the application of ICT. The guiding principles for the ERGP were driven by the desire to eliminate constraints to growth, leverage the power of the private sector, promote national cohesion and social inclusion, allow markets to function and uphold core values. In this regard, the key execution priorities set out by the ERGP were as follows:  Stabilizing the macroeconomic environment;  Achieving agriculture and food security;  Ensuring energy sufficiency (power and petroleum products);  Improving transportation infrastructure; and,  Driving industrialization, with focus on Small and Medium Scale Enterprises. In view of the principles and objectives of the ERGP, the CBN as the monetary authority, implicitly or explicitly, has a responsibility to take necessary actions to support the plan. Thus, in consideration of the ERGP objective of maintaining a stable macroeconomic environment, price stability is expected to be maintained to support savings, investment and growth. Hence, price stability reduces uncertainty for households and businesses and enables planning to be effective. In that regard, the monetary authorities, charged with the responsibility for monetary management, are expected to moderate the growth in base money appropriate to attain optimal interest, exchange and inflation rates. In recognition of the maintenance of price stability role, the Bank, through the Monetary Policy Committee, consistently maintained the benchmark Monetary Policy Rate at 14 per cent during 23
32. the first half of the year , tightened liquidity management and adopted measures aimed at enhancing liquidity in the foreign exchange market to moderate exchange rate volatility and bridge the gap between the inter-bank and bureau de change segments. To further ensure the achievement of this task, however, intense collaboration is required between the monetary and fiscal authorities in the pursuit of harmonious goals. In view of weak earnings and external reserve position, government expenditure would largely be financed from the domestic and external debt market. The Bank would have to sustain and maintain quality services to government through issuing of appropriate securities, banking and funds management activities, amongst others. The sustenance of a sound and reliable banking sector would also have to be preserved to ensure the financial system provides its intermediary functions of financial resource mobilisation and allocation effectively. It is noteworthy, therefore, to observe that adequate capacity in banking regulation and supervision should be developed and maintained, with particular emphasis on risk management and control, as well as consumer protection. In a like manner, the promotion of financial services has to be enhanced, and consumer awareness of rights and privileges, as well as the provision of complaints or dispute resolution mechanisms would have to be popularized, and seen to be effective. Consequently, the Financial Inclusion Strategy and the various financial literacy programmes of the Bank are expected to drive additional motivation to surpass the earlier targets set. 24
33. 4 .0 CAPITAL MARKET DEVELOPMENTS The activities in the capital market rebounded during the first half of 2017. Consequently, the All Share Index and Market Capitalization rose by 24.42 per cent and 25.00 per cent, respectively. The value and number of deals executed on the exchange also increased, even though the volume of shares traded decreased when compared with the corresponding period in 2016. The marked performance was attributable largely to the liberalization of the foreign exchange market which boosted foreign investor confidence and encouraged capital inflows as well as the gradual recovery of the economy from recession. 4.1 Nigerian Stock Market The activities in the market rebounded during the first half of 2017, as the major indicators, viz Nigeria Stock Exchange (NSE or the Exchange) All Share Index (ASI) and the Market Capitalization (MC) recorded increases. The rebound was attributable to the liberalization of the foreign exchange market which boosted foreign investor confidence and encouraged capital inflows; the gradual recovery of the economy from recession; and the effect of corporate actions recorded on the Exchange that impacted positively. 4.1.1 All Share Index and Market Capitalisation The ASI opened at 26,616.89 and closed at 33,117.48, representing an increase of 6,500.11 points or 24.42 per cent. Similarly, the market capitalization of listed equities increased by N2.29 trillion or 25.00 per cent, from N9.16 trillion at the beginning of January to N11.45 trillion at end-June 2017. The increase in both the ASI and MC was attributable to the listing of new . The value of shares traded increased to N504.70 billion in the review period, from N281.79 billion in the corresponding period of 2016. Similarly, the number of deals increased to 503,929 from 451,547 in the respective periods. The rise in value and number of deals demonstrated the resurgence in investor confidence, competitiveness of the market and signal to the economy recovery. issues, rights issues as well as preponderance of share price gainers during the review period. The re-entry of portfolio investors who exited at the onset of economic slowdown further boosted activities in the market. 25
34. In the corresponding period of 2016 , the ASI increased by 1,227.47 points or 4.33 per cent to 29,597.79 at end-June, from 28,370.32 at the beginning of January. Equally, the MC of equities increased by N0.40 trillion or 4.10 per cent, from N9.76 trillion at the start of January to N10.16 trillion at end-June, 2016 (Table 4.1). The value and volume of transactions oscillated during the review period. Thus, the value of transactions which opened at N3.76 billion in January closed at N3.35 billion in June. Similarly, the volume of transactions declined from 3.37 billion units to 0.35 billion units in the same period (Tables 4.1). 4.1.2 Market Turnover The turnover of activities in the market as reflected in the value and number of deals increased, albeit a decrease in the volume of shares traded when compared with the level in 2016. The value of shares traded increased to N553.27 billion in the review period, from N313.25 billion in the corresponding period of 2016. Similarly, the number of deals increased to 565,948 from 455,283 in the respective periods. The rise in value and number of deals demonstrated the resurgence in investor confidence, competitiveness of the market and signal to the economy recovery. However, the volume of shares traded declined to 56.74 billion shares in the review period as against 61.97 billion in the corresponding period of 2016, owing to the increases in price changes and number of deals (Table 4.2). Foreign investors’ participation in the market, on a monthly basis, stood at an average of 45.43 per cent, compared with the 42.71 per cent in the first half of 2016. Arising from this development, the total value of foreign portfolio inflows into the market stood at N215.97 billion, as against N121.29 billion in the corresponding period of 2016. The value of foreign portfolio outflows stood at N214.26 billion as against N147.92 billion in the preceding period (Table 4.4). In effect, the net flow was slightly positive in 2017 and negative in 2016, 26
35. contributing to foreign exchange accretion during first half of 2017 as opposed to depletion during the corresponding period of 2016 . 4.1.3 Sectoral Distribution of Market Activities The financial services sector was the most active during the first half of 2017, accounting for 83.37 per cent of the volume of equities traded compared with 84.98 per cent in the corresponding period of 2016. The remaining sectors accounted for 16.63 per cent (Table 4.3). 4.1.4 New and Supplementary Listings and Delisting The NSE admitted one company, two corporate bonds, one state government bond, six FGN Bonds and one Exchange Traded Funds (ETF) on the floor of the Exchange between January and June, 2017. In addition, there were sixteen supplementary listings comprising four equities and twelve FGN Bonds on account of bonus issues, rights issues and additional issues. On other hand, there were two ETF redemptions, one each from Vetiva Griffin 30 ETF and Lotus Halal Equity ETF (Table 4.5). The ASI opened at 26,616.89 and closed at 33,117.48, representing an increase of 6,500.11 points or 24.42 per cent. Similarly, the market capitalization of listed equities increased by N2.29 trillion or 25.00 per cent, from N9.16 trillion at the beginning of January to N11.45 trillion at endJune 2017. 4.1.5 Other Developments in the Capital Market Other activities that were observed in the capital market included the following:  Extension of deadline for the stoppage of issuance of physical dividend in the capital market from June 30, to December 31, 2017 in order to allow more investors enroll on the Electronic Dividend Mandate Management System (E-DMMS), strengthen the application of Know Your Customer (KYC) principles, eliminate unclaimed dividend outstanding and check malpractices in the market.  The NSE collaboration with appropriate authorities to enhance foreign exchange availability to companies, eliminate double taxation, to revise and legislate on Companies and Allied Matters Act (CAMA, Investment and Securities Act (ISA), demutualization of the exchange and other bills.  Establishment of an automation process for trading rights issues by the NSE. 27
36.  Launching of X-Academy, which is a financial literacy programme aimed at promoting awareness, opportunities and possibilities in the capital market to the public.  Rebalancing of market indices which affected the review of NSE 30, NSE insurance, NSE Pension and NSE Lotus Islamic, leading to the removal of some companies and the admission of qualified companies into the indices. 28
37. 5 .0 FEDERAL GOVERNMENT DOMESTIC DEBT The government continued to rely on public financing to support its revenue shortfalls. It issued new instruments comprising NTBs, FGN Bonds and Federal Government Savings Bonds, while all the outstanding obligations to previously issued instruments as the Federal Republic of Nigeria (FRN) Treasury Bonds were yet to mature. Consequently, the stock of FGN domestic debt outstanding amounted to N11,860.77 billion at end-June, 2017. This represented an increase of N1,254.44 billion or 11.83 per cent over N10,606.33 billion at end June, 2016, with implications for the cost of servicing, which also escalated by 11.34 per cent to N687.37 billion at end-June 2017, from N617.36 billion at end-June 2016. 5.1 Nigerian Treasury Bills The total NTBs issued and allotted was N2,929.25 billion apiece, indicating an increase of N471.97 billion or 19.21 per cent over the level in the corresponding period of 2016. The increase was attributable to the issuance of fresh NTBs to finance fiscal deficit. Total public subscription, however, stood at N3,966.92 billion, compared to N5,057.39 billion in the corresponding period of 2016. The low level of public subscription was traceable to the liquidity squeeze by the monetary authority around the period of issuances. The structure of holdings of the instrument indicated that DMBs (including foreign investors) took up N1,553.27 billion or 53.03 per cent, mandate and internal funds customers (including CBN Branches) N1,176.14 billion or 40.15 per cent, merchant banks N72.66 billion or 2.48 per cent and CBN take-up of N127.18 billion or 4.34 per cent (Table 5.2; Figures 5.1 and 5.2). The successful bid rates in the market ranged from 13.40 to 14.00 per cent for the 91-day, 17.14 to 17.50 per cent for the 182-day and 18.45 to 18.98 per cent for the 364-day tenors. The range of successful bid rates in the corresponding period of 2016 was lower, between 4.00 and 9.99 per cent for the 91-day, 6.99 and 12.30 per cent for the 182-day and between 8.05 and 14.99 per cent for the 364-day tenors (Table 5.8), largely on account of the level of liquidity in the banking system and the prevailing monetary policy stance 29
38. Figure 5 .1 NTB Primary Market Auction, January - June, 2017 Figure 4 NTB Primary Market Auction, January – June, 2016 5.1.1 Structure of Outstanding Nigerian Treasury Bills Holdings The structure of NTB holdings outstanding indicated that DMBs accounted for 44.60 per cent of the total at end-June 2017 compared with 38.41 per cent in the corresponding period of 2016. Mandate and Internal Account customers (parastatals) accounted for 55.02 per cent, merchant banks 0.33 per cent, while the CBN accounted for 0.06 per cent (Table 5.3). 30
39. 5 .2 Federal Republic of Nigeria Treasury Bonds There was no new issue of the Federal Republic of Nigeria Treasury Bonds (FRNTBs), as the Federal Government relied on the issuance of FGN Bonds to raise needed funds. Hence, the outstanding stock of the instrument at end-June 2017 stood at N190.99 billion, compared to N230.99 billion at end-June 2016. The decline in the amount outstanding was due to the redemption of N40.00 billion at end 2016. A breakdown of the amount outstanding showed that the CBN held N64.65 billion, while N126.34 billion was held in the Sinking Fund (Table 5.4). In 2016, the CBN held N81.81 billion, while N149.18 billion was held in the Sinking Fund. 5.3 Federal Government of Nigeria Bonds The total value of FGN Bonds offered to the public was N785.00 billion, while public subscription and sale stood at N1,237.94 billion and N849.53 billion, respectively (Table 5.5). The amount offered comprised new issues and re-openings of FGN Bonds series 1, 2, 4 and 6. In the same period of 2016, FGN Bonds issues, subscription and allotment amounted to N590.00 billion, N1,183.83 billion and N529.50 billion, respectively. The huge subscription in the bond market against the corresponding period of 2016 was attributable to investor preferences for long tenored instruments and the attractive yields. Consequently, the total value of FGN Bonds outstanding at end-June 2017 stood at N8,614.75 billion, compared The cost of domestic debt instruments of the FGN stood at N687.37 billion at end-June 2017, representing an increase of 11.34 per cent when compared to N617.36 billion at end-June 2016. to N8,153.96 billion at end-June, 2016, indicating an increase of N460.79 billion or 5.65 per cent (Table 5.5.1). The structure of holdings of the FGN Bonds showed that N3,128.39 billion or 36.31 per cent was held by DMBs, N188.66 billion or 2.19 per cent by merchant banks, and the balance of N5,297.70 billion or 61.50 per cent held by non-bank public (Table 5.7). 31
40. 5 .4 Domestic Debt Charges The cost of domestic debt instruments of the FGN stood at N687.37 billion at end-June 2017, representing an increase of 11.34 per cent when compared to N617.36 billion at end-June 2016. The increase in the cost of debt servicing was attributable to the increased stock of the domestic debt instruments, from N10,606.33 billion at end-June 2016, to N11,860.77 billion at end-June 2017, which included the newly introduced FGN Savings Bonds (Table 5.1). A breakdown of the cost showed that FGN Bonds coupon payments accounted for N473.19 billion or 68.84 per cent, while interest on NTBs stood at N201.57 billion or 29.33 per cent, FRN Treasury Bonds, N12.54 billion or 1.82 per cent and FGN Savings Bonds contributed the balance of N0.07 billion or 0.01 per cent (Table 5.10). 5.4.1 Over-the-Counter Transactions in Nigerian Treasury Bills OTC transactions in NTBs during the first half of 2017 amounted to N31,309.56 billion, indicating an increase of N12,714.23 million or 68.37 per cent over the level of N18,595.33 billion in the same period of 2016. The increase was attributed to improved patronage from foreign investors and pension as increasing yield was attractive (Table 5.9). 5.4.2 Over-the-Counter Transactions in Federal Government of Nigeria Bonds OTC transactions in FGN Bonds during the first half of 2017 amounted to N5,353.37 billion, indicating an increase of N378.98 million or 7.26 per cent over the level of N4,974.39 billion in the same period of 2016 The trend was traceable to active participation of investors, both local and foreign (Table 5.9). 5.5 Asset Management Corporation of Nigeria Bonds Asset Management Corporation of Nigeria (AMCON) Bonds were fully repaid to the public in December 2014, in a restructuring exercise that led to the conversion of N3.8 trillion into 6.00% AMCON Notes for the CBN to hold, as sole investor, to maturity in 2023. The move by the CBN was to entrench stability in the banking system. 32
41. 5 .6 Federal Government of Nigeria Savings Bonds In a bid to deepen the bonds market and encourage savings from retail investors, the Federal Government introduced the FGN Savings Bonds (FGNSB), with the first issue to the public on March 22, 2017. Since then, seven issuances were made in the first half of 2017, with a total value of N4.75 billion (Table 5.11). The issues were of 2- and 3-year tenors at fixed coupon rates. The range of coupon rates for the 2-year spanned from 12.794 to 13.189 percent, and 13.794 to 14.189 per cent for the 3- year tenor. 33
42. 6 .0 ACTIVITIES OF INTERNAL AND INTER-AGENCY COMMITTEES The FMD was involved in collaborative efforts with both internal and external stakeholders, with a view to furthering the development of the financial markets. The collaboration with internal and inter-agency committees was expedient, especially in a recessionary period in the light of managing the non-diversifiable risks posed by interest, inflation, and exchange rates. In that regard, the department participated in various committees within the Bank, with other agencies of government and with the private sector. 6.1 Liquidity Assessment Group To assess the liquidity levels in the banking system on a daily basis, the Liquidity Assessment Group (LAG) continued to meet and advise on intervention measures by the Bank. The membership of the committee includes Heads of Division and Office in the Financial Markets Department. 6.2 Non-Interest Financial Institutions Product Development Committee Further to the approval of the “Guidelines for Granting Liquid Asset Status to Sukuk Instruments Issued by State Governments” the Secretariat of the committee facilitated the formulation of implementation procedures, in collaboration with the FMDQ OTC Securities Exchange and the Central Securities Clearing System (CSCS). Consequently, a handson workshop was organized for desk officers in the Financial Markets and Banking and Payments System Departments, with the aim of developing the capacity for effective and efficient implementation of established procedures. 34 The FSR Committee produced a status report on the Nigerian financial system for the period July to December 2016 and January to June 2017. The report dwelt on the soundness of the financial system, potential risks and efforts made at sustaining its safety and stability.
43. 6 .3 Fiscal and Liquidity Assessment Committee Activities of the inter-agency Committee continued to focus on the examination of funds flow in the economy to determine its effects on interest, exchange and inflation rates and proffer measures to keep them at desired levels. The membership of the Committee comprises the Nigerian National Petroleum Corporation (NNPC), Office of the Accountant General of the Federation (OAGF), Federal Ministry of Finance (FMF), Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), Debt Management Office (DMO), Budget Office of the Federation (BOF), CBN and the newly admitted Ministry of Mines and Steel. 6.4 Financial Stability Report Committee The Committee produced a status report on the Nigerian financial system for the period January to June 2017. The report dwelt on the soundness of the financial system, potential risks and efforts made at sustaining its safety and stability. It also assessed scenarios of results of stress testing on financial soundness indicators with the view to providing direction on policy options. The membership of the Committee was made up of departments of the Bank: Financial Markets, Financial Policy and Regulation, Statistics, Research, Monetary Policy, Banking and Payments System, Reserve Management, Strategy Management, Risk Management, Banking Supervision, Other Financial Institutions Supervision and Development Finance. 6.5 Financial Services Regulation Coordinating Committee The FSRCC sustained efforts towards enhancing the regulatory environment of the financial services sector. The membership of the Committee comprises SEC, Debt Management Office (DMO), National Pension Commission (PENCOM), National Insurance Commission (NAICOM), Corporate Affairs Commission (CAC), FIRS, FMF, Nigerian Commodity Exchange (NCX), NSE and the CBN (Financial Policy and Regulation Department and FMD).The activities included the under mentioned. 35
44. 6 .5.1 Workshop on Green Finance As part of efforts to successfully drive sustainable finance in the Nigerian financial services industry, the FSRCC in collaboration with the International Finance Corporation (IFC) organized a two-day workshop on Green Finance for staff of member agencies. A majority of the member agencies had setup their implementation steering committees to ensure that every member agency achieves full implementation of the National road map on sustainable finance, particularly the development of sector-specific sustainability principles, by 2018 6.5.2 Production of Nigerian Financial System Stability Dashboard The Financial Sector Soundness Sub-Committee (FSSSC) of the FSRCC produced the Nigerian Financial System Stability Dashboard (NFSSD) in the first half of 2017. The dashboard, which shows at a glance the condition of the Nigerian Financial System, will be produced quarterly. 6.5.3 Fight against Illegal Fund Managers (IFMs) An interdepartmental ad-hoc committee setup to investigate the activities of ‘MMM’ and other Ponzi schemes had concluded its work and presented its recommendations on ways to prevent the future occurrence of such fraudulent activities to the FSRCC at its 58th meeting held on May 25, 2017. The recommendations which included the immediate shutdown of the websites of the IFMs are being implemented. 6.5.4 Consolidated Examination of the Financial Holding Companies A Knowledge of Business (KOB) and Risk Assessment Summary (RAS) Sessions for examiners of member agencies of the FSRCC was carried out in preparation for consolidated examination of the three Banking Groups (FCMB, FBN, and Stanbic IBTC) and its entities. The examination commenced during the review period. 6.5.5 Executive Order on the Ease of Doing business in Nigeria Following the decision of the FSRCC to review the Executive Order on the Ease of Doing business in Nigeria as it affects the Financial system, an ad-hoc Committee was setup during the period under review. 36
45. 6 .6 FGN Sovereign Sukuk Under the auspices of the Debt Management Office (DMO), the department was involved in the process of developing a framework for the issuance of a sovereign Sukuk, to complement existing government debt instruments. The objective of the new product was to innovate a new financing mechanism for government, enhance financial inclusion, accelerate capital formation and enhance growth and development. 6.7 Resuscitation of the Nigerian Commodity Exchange In line with the Federal Government’s drive to promote agriculture and enhance food security, efforts were made to strengthen the Nigerian Commodity Exchange (NCX) with private sector participation. In that regard, the Bureau of Public Enterprises coordinated a bid evaluation exercise for the appointment of a Transaction Advisor, with the Financial Markets Department representing the Bank. The outcome of the exercise resulted in the recommendation and eventual appointment of Lead Capital Limited as the Transaction Advisor. 37
46. 7 .0 MAJOR DEVELOPMENTS IN THE NIGERIAN FINANCIAL MARKETS Actions taken by the various regulatory authorities impacted the Nigerian financial markets and influenced the conduct of transactions. These included policies aimed at enhancing financial intermediation, developing the payments system, deepening the capital and commodities markets and ensuring effective management of foreign exchange. 7.1 Suspension of the Implementation of the Inter-change Regime The CBN suspended the Implementation of the inter-change regime, which was scheduled to take off on 1st May, 2017, to replace the Merchant Service Charge (MSC). The MSC was introduced to facilitate Point of Sale (PoS) Card Acceptance Services at the onset of the CashLess Nigeria Project. The change was intended to allow merchants and acquirers negotiate the MSC, while the CBN will control the interchange fees paid by the acquirers to the card issuer and other regulated service providers. 7.2 Licensing, Regulation and Supervision of Private Asset Management Companies The developments in the Nigerian banking industry necessitated the licensing of private Asset Management Companies (PAMCs) to play complementary roles in the management of nonperforming assets of the industry. Consequently, an exposure draft of the framework was issued on June 14, 2017 which is awaiting comments and inputs from banks and other financial institutions. 7.3 Revision of the Guidelines on Bancassurance Products- Referral Model In furtherance of the Bank’s efforts to ensure that banks comply with the regulation on the scope of banking activities and ancillary matters, No.3, 2010, the “Guideline on the Bancassurrance Products- Referral model” was revised and published on March 31, 2017. The new guideline became effective on April 1, 2017 and seeks to address developments in both the banking and insurance sectors. It replaced the one issued in March 2015. 38
47. 7 .4 Code of Corporate Governance for Other Financial Institutions On February 27, 2017, the CBN published an exposure draft on a distinct code of corporate governance for other financial institutions such as primary mortgage banks, microfinance banks, mortgage refinance companies, development finance institutions, bureaux de change and finance companies. The code was developed to strengthen governance practices, ensure high standard of ethical conduct and provide minimum acceptable governance standards. 7.5 Virtual Currency Operations The CBN by its circular issued on January 12, 2017 cautioned banks and other financial institutions against transacting in virtual currencies (VCs). It emphasised that VCs, such as Bitcoin, Ripples and Monero are not legal tenders in Nigeria, thus any bank or institution that transacts in them does so at its own risk. The risks associated with VCs are heightened because they are traded in unregulated exchanges. The CBN strongly advised that pending the issuance of substantive regulation or decision, banks should refrain from using, holding, trading and/or transacting in VCs as well as ensure that banks have effective AML/CFT controls, for existing customers that are virtual currency exchangers, that enable them to comply with customer identification, verification and transaction monitoring requirement. 7.6 Revised Nigerian Clearing System Rules The Bank, in furtherance of its mandate for the development of the electronic payments system in Nigeria released an Exposure Draft Guideline for the Nigerian Clearing System Rules, 2016 on 30th January, 2017. The deadline for review and comments from the public was fixed as 24th February, 2017. The provisions in the guidelines include the conditions for membership and suspension, management of clearing system, eligible financial instruments, duration of holding instruments, settlement rules and procedures, obligations of settlement and non-settlement banks, cheque truncation model, clearing duration and return periods, general procedures, and responsibilities of members, amongst others. 7.7 Suspension of the National Implementation of the Cash-Less Policy The CBN vide its circular dated April 20, 2017 suspended the new withdrawal and lodgment fees above allowable cash limits in accordance with the policy on cash withdrawals and deposit 39
48. processing . Thenceforth, processing fees have been reverted to 3.00 per cent and 5.00 percent for withdrawals above N500,000.00 and N3,000,000.00 for individual and corporates, respectively. In line with the reversion to the status quo ante, there are no processing charges for lodgments. 40
49. Appendix : Index of Financial Markets Regulatory Circulars and Guidelines 2017 S/N Date Issued Reference Nos. Title 1 10-Jan-17 FPR/DIR/GEN/CIR/06/00 6 List of Microfinance Banks (MFBs) in Nigeria as at January 9, 2017 FPR NEW 2 10-Jan-17 FPR/DIR/GEN/CIR/06/00 9 List of Licensed Representative Offices of Foreign Banks in Nigeria as at January 9, 2017 FPR NEW 3 10-Jan-17 FPR/LAD/GEN/DAB/01/0 58 List of Bureaux De Change In Nigeria as at January 9, 2017 FPR NEW 4 10-Jan-17 FPR/LAD/GEN/DAB/01/0 58 List of Finance Companies in Nigeria as at January 10, 2017 FPR NEW 5 17-Jan-17 FPR/LAD/CON/BDC/01/0 06 Payment of Annual License Renewal Fee Through Electronic Channels Published FPR NEW 6 17-Jan-17 FPR/DIR/GEN/CIR/06/01 0 Circular to Banks and Other Financial Institutions on Virtual Currency Operations in Nigeria FPR NEW 7 30-Jan-17 BPS/DIR/CIR/01/017 Exposure Draft of the Guidelines for Nigerian Clearing System Rules, 2016 (Revised) BPS NEW 8 30-Jan-17 BPS/DIR/CIR/016 Exposure Draft of the ''Guidelines for the Direct Debit Scheme and Bills Payments in Nigeria BPS NEW 9 1-Feb-17 FMD/DIR/GEN/CIR/08/0 01 Amendment of S4 Business Rules and Guidelines FMD NEW 10 3-Feb-17 BPS/DIR/CIR/01/019 Exposure Draft of the Guidelines on Instant (Interbank) Electronic Funds Transfer Services in Nigeria BPS NEW 11 6-Feb-17 BSD/DIR/GEN/LAB/10/0 06 BSD NEW 12 13-Feb-17 BSD/DIR/GEN/LAB/10/0 09 Application of International Standard on Auditing (ISA) 701 (Communicating Key Audit Matters in the Independent Auditor's Report) in the Banking Sector Review of the Limit on Foreign Borrowing by Banks BSD NEW 41 Department Remark
50. 13 21-Feb-17 FMD-DIR-CIR-GEN-08003 Guideline on The Operationalization of The New Policy on PTA and School Fees Exposure Draft of the Codes of Corporate Governance for Other Financial Institutions in Nigeria FMD NEW 14 1-Mar-17 FPR /DIR/CIR/GEN/06/01 1 FPR NEW 15 1-Mar-17 FPR/DIR/GEN/CRM/06/0 13 Circular to all Commercial, Merchant and Non-Interest Banks on Identification of some Borrowers' Records without BVN or TIN Migrated from the Stop-Gap to the Redesigned Credit Risk Management System (CRMS) FPR NEW 16 1-Mar-17 FPR/DIR/GEN/CRM/06/0 12 Circular to all Banks on Regulatory Guidelines for the Redesigned Credit Risk Management System (CRMS) for Commercial, Merchant and Non-Interest Banks in Nigeria, FPR NEW 17 5-Mar-17 FMD/GEN/08/005 Circular to all Authorized Dealers on improved Foreign Exchange Liquidity FMD NEW 18 29-Mar-17 FPR/DIR/CIR/GEN/06/01 4 Re: Exposure Draft of the Codes of Corporate Governance for Other Financial Institutions in Nigeria FPR REVISED 19 31-Mar-17 BSD/DIR/GEN/LAB/10/0 16 Revised Guidelines on Bancassurance ProductsReferral Model BSD REVISED 20 6-Apr-17 FPR/DIR/GEN/CIR/06/01 6 FPR NEW 21 10-Apr-17 TED/FEM/FPC/GEN/01/0 02 Guidelines on the Regulation and Supervision of NonInterest (Islamic) Microfinance Banks in Nigeria Foreign Exchange Payment for Small Scale Importation TED NEW 22 18-Apr-17 TED/FEM/FPC/GEN/01/0 03 Re: Foreign Exchange Payment for Small-Scale Importation TED REVISED 23 20-Apr-17 BPS/DIR/GEN/CIR/04/00 3 BPS REVISED 24 20-Apr-17 TED/FEM/FPC/GEN/01/0 04 Re: Circular on the Implementation of Interchange Fee Revised Import and Export Documentation and Timeline for Processing Form "NXP" TED REVISED 42
51. 25 21-Apr-17 FMD /DIR/CIR/GEN/08/0 07 Establishment of Investors and Exporters FX Window FMD NEW 26 21-Apr-17 FPR/DIR/GEN/CIR/06/01 7 The Guide to Charges by Banks and Other Financial Institutions in Nigeria 2017 (Updated) FPR NEW 27 21-Apr-17 BPS/DIR/GEN/CIR/04/00 4 Re: Circular On National Implementation of The CashLess Policy BPS REVISED 28 24-Apr-17 FPR/DIR/GEN/CIR/06/02 0 Updated List of Licensed Finance Companies (FCs) in Nigeria as at 24/04/2017 FPR NEW 29 24-Apr-17 FPR/DIR/GEN/CIR/06/01 9 Updated List of licensed Microfinance Banks (MFBs) in Nigeria as at 24/04/2017 FPR NEW 30 24-Apr-17 FPR/DIR/GEN/CIR/06/01 8 Updated List of Confirmed Bureaux De Change in Compliance with New Requirements FPR NEW 31 17-May-17 TED/FEM/FPC/GEN/01/0 07 Clarification On Items Valid For Foreign Exchange In The Nigerian Foreign Exchange Markets TED NEW 32 5-Jun-17 FMD/DIR/CIR/GEN/08/0 08 Further Liberalization of the Inter-Bank Foreign Exchange (FX) Market FMD NEW 33 6-Jun-17 TED/FEM/FPC/GEN/01/0 09 Exports From Nigeria Compliance With Memorandum 11 of The Foreign Exchange Manual TED NEW 34 14-Jun-17 FPR/DIR/GEN/CIR/06/02 1 Exposure Draft of the Framework for Licensing, Regulation and Supervision of Private Asset Management Companies in Nigeria FPR NEW 43
52. Table 2 .1 OMO Subscription and Sale Period Offer (N’Billion) Subscription (N’Billion) Sales (N’Billion) Bid Rate (%) Stop Rate (%) Average Tenor (Days) Cost of Liquidity Management (N'Billion) 2017 January 420.00 1,237.87 700.52 17.9500 - 18.6000 18.0000 - 18.6000 143-352 108.19 February 250.00 621.15 619.14 17.9700 - 18.6000 18.0000 - 18.6000 181-342 96.78 March 550.00 418.19 391.16 18.0000 - 18.6000 18.0000 - 18.6000 142-360 65.21 April 455.00 376.66 319.09 18.0000 - 18.6000 18.0000 - 18.6000 167-364 53.34 May 744.76 585.90 580.08 18.0000 - 18.6000 18.0000 - 18.6000 154-364 73.97 June 1,283.20 1,354.16 1,261.28 16.0000 - 18.6000 16.0000 - 18.6000 140-364 179.97 Total 3,702.96 4,593.93 3,871.27 270.00 913.26 698.42 7.2500-10.0000 7.7450-7.9000 147-224 25.83 200.00 630.89 509.23 7.2000-8.5000 7.7500-7.8000 143-206 20.67 354.86 706.99 394.63 7.5000-11.0000 7.7000-9.0000 181-280 18.96 440.00 710.30 363.72 8.3000-11.0000 8.8000-9.5000 205-261 20.00 201.65 365.70 64.63 9.5000-12.0000 9.5000-10.0000 212-364 4.70 455.94 540.80 299.12 9.5000-13.5000 10.0000-13.5000 206-363 32.83 1,922.45 3,867.94 2,329.75 577.46 2016 January February March April May June Total 122.99 44
53. Table 2 .2 Repurchase Transactions Period Amount (N’Billion) Interest (N’Billion) Total (N’Billion) Range of Rate (%) Range of Tenor (Days) 2017 January 19.51 0.31 19.82 18.50-19.00 4-36 February 31.89 0.39 32.28 18.50-19.00 Sep-40 March 33.62 0.47 34.09 18.50-19.50 17-90 April 126.82 11.02 137.84 18.50-19.50 25-90 May 75.22 1.71 76.93 18.50-19.50 14-90 June 65.60 2.15 67.75 18.50-19.50 13-90 Total 352.66 16.05 368.71 Average 58.78 2.68 61.45 January 0.00 0.00 0.00 0.00 N/A February 0.00 0.00 0.00 0.00 N/A March 0.00 0.00 0.00 0.00 N/A April 0.00 0.00 0.00 0.00 N/A May 0.00 0.00 0.00 0.00 N/A June 0.00 0.00 0.00 0.00 N/A Total 0.00 0.00 0.00 Average 0.00 0.00 0.00 2016 45
54. Table 2 .3 Standing Lending Facility (=N=) Date Direct SLF (N) ILF Conversion (AREPO) N Total Interest (N) Transaction Days Average SLF 2017 January 108,537,500,000.00 3,272,031,261,554.00 3,380,568,761,554.00 2,680,542,001.62 21 160,979,464,835.91 February 726,708,332,400.00 3,751,791,143,615.17 4,478,499,476,015.17 3,407,326,841.79 19 235,710,498,737.64 March 1,135,308,202,150.00 3,917,256,048,202.92 5,052,564,250,352.92 3,811,217,393.36 23 219,676,706,537.08 April 2,217,778,810,500.00 3,528,898,101,616.27 5,746,676,912,116.27 4,664,036,042.19 18 319,259,828,450.90 May 1,351,618,584,450.00 3,245,369,176,227.85 4,596,987,760,677.85 3,304,896,376.81 21 218,904,179,079.90 June 1,296,643,767,850.00 2,914,634,099,931.38 4,211,277,867,781.38 3,257,371,461.82 20 210,563,893,389.07 Total 6,836,595,197,350.00 20,629,979,831,147.60 27,466,575,028,497.60 21,125,390,117.59 122 1,365,094,571,030.50 Monthly 1,139,432,532,891.67 3,438,329,971,857.93 4,577,762,504,749.60 3,520,898,352.93 20.33 113,757,880,919.21 56,037,665,552.05 169,098,195,337.28 225,135,860,889.32 173,158,935.39 37.17 Daily Date Direct SLF (N) ILF Conversion (AREPO) N Total Interest (N) 11,189,299,762.55 Transaction Days Average SLF 2016 January - 81,376,500,300.00 81,376,500,300.00 33,824,954.07 8 February - 4,113,497,135.88 4,113,497,135.88 2,135,942.27 3 1,371,165,711.96 470,991,451,250.00 475,314,985,250.00 247,290,479.10 11 43,210,453,204.55 39,420,134,123.81 March 4,323,534,000.00 April - 827,822,816,600.00 827,822,816,600.00 488,991,602.68 21 May - 930,571,984,150.00 930,571,984,150.00 481,769,438.31 20 2,521,730,480,672.62 4,836,606,730,108.50 806,101,121,684.75 56,901,255,648.34 2,760,381,726,022.62 5,079,581,509,458.50 846,596,918,243.08 59,759,782,464.22 1,668,941,997.26 2,922,954,413.69 487,159,068.95 34,387,698.98 June Total Monthly Daily 238,651,245,350.00 242,974,779,350.00 40,495,796,558.33 2,858,526,815.88 10,172,062,537.50 46,528,599,207.50 22 85 14.17 27.00 125,471,896,637.39 266,174,311,422.71 22,181,192,618.56 3,131,462,487.33 *Daily average SLF includes converted ILF Table 2.4 Standing Deposit Facility (=N=) Date 2017 January February March April May June Total Monthly average Daily Average Date 2016 January February March April May June Total Monthly average Daily Average Total SDF Interest (N) 1,855,978,000,000.00 804,071,000,000.00 889,350,000,000.00 593,790,000,000.00 665,280,000,000.00 702,278,000,000.00 5,510,747,000,000.00 918,457,833,333.33 45,543,363,636.36 Total SDF 633,313,479.45 233,543,095.89 338,190,410.96 247,687,397.26 235,760,547.95 299,189,095.89 1,987,684,027.40 331,280,671.23 16,427,140.72 Interest (N) 2,435,532,000,000.00 2,553,845,000,000.00 1,624,780,000,000.00 2,503,269,392,660.07 1,760,057,000,000.00 1,822,255,490,661.20 12,699,738,883,321.30 2,116,623,147,220.21 102,417,249,059.04 Transaction Days 21.00 20.00 22.00 17.00 21.00 20.00 121.00 Transaction Days 408,848,524.59 395,314,972.68 273,570,491.80 745,873,599.69 511,181,120.22 500,987,990.02 2,835,776,699.00 472,629,449.83 22,869,166.93 88,379,904,761.90 40,203,550,000.00 40,425,000,000.00 34,928,823,529.41 31,680,000,000.00 35,113,900,000.00 270,731,178,291.32 45,121,863,048.55 2,237,447,754.47 Average SDF 20.00 21.00 21.00 21.00 20.00 21.00 124.00 46 Average SDF 121,776,600,000.00 121,611,666,666.67 77,370,476,190.48 119,203,304,412.38 88,002,850,000.00 86,774,070,983.87 614,738,968,253.39 102,456,494,708.90 4,957,572,324.62 Average Interest Total 30,157,784.74 11,677,154.79 15,372,291.41 14,569,846.90 11,226,692.76 14,959,454.79 97,963,225.39 8,163,602.12 Average Interest 20,442,426.23 18,824,522.51 13,027,166.28 35,517,790.46 25,559,056.01 23,856,570.95 137,227,532.44 11,435,627.70 88,410,062,546.64 40,215,227,154.79 40,440,372,291.41 34,943,393,376.31 31,691,226,692.76 35,128,859,454.79 270,829,141,516.71 22,569,095,126.39 Total 121,797,042,426.23 121,630,491,189.18 77,383,503,356.75 119,238,822,202.85 88,028,409,056.01 86,797,927,554.82 614,876,195,785.83 51,239,682,982.15
55. Table 2 .5 Inter-Bank Placements (=N=Billion) Period Call Tenored Call+Tenored OBB Total January 7.07 4.41 9.28 158.21 167.49 February 7.45 0.00 7.24 133.63 140.87 March 6.4 8.42 7.75 104.52 112.27 April 47.13 20 48.79 118.07 166.86 May 11 0.00 11 122.14 133.14 June 7.45 0.00 7.45 136.84 144.29 Total 86.5 32.83 91.51 773.42 864.93 January 69.67 0.00 69.67 122.59 192.26 February 27.60 0.00 27.60 63.95 91.55 March 72.50 0.00 72.50 8.20 80.70 April 24.80 0.00 24.80 0.00 24.80 May 39.00 0.00 39.00 1.80 40.80 June 76.00 0.00 76.00 7.00 83.00 309.57 0.00 309.57 203.54 513.11 2017 2016 Total 47
56. Table 2 .6 Monthly Money Market Rates, 2017 (Per Cent) Item Inter-Bank Call Range of Bid Rate Weighted Average Rate Inter-Bank (Tenored) Range of Bid Rate Weighted Average Rate Call NIBOR Open-Buy-Back (OBB) Range of Bid Rate Weighted Average Rate January February March April May 4.50-13.04 4.50-133.84 6.00-14.49 4.50-200.00 3.00-20.00 8.29 27.68 12.16 58.73 18.40 June 4.43-20.00 12.37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.89 26.18 21.79 57.4 36.58 24.71 2.51-14.56 5.03-111.97 10.67-97.90 3.89-162.45 3.24-120.75 8.26 23.81 22.85 46.07 33.46 4.18-104.22 25.53 OMO Issue Rates (%) Tenor (days) NTB Primary Issue Rates (%) MPR 16.664100 14.00 16.479600 14.00 48 16.460700 14.00 16.580400 14.00 16.504000 14.00 16.481000 14.00
57. Table 2 .7 Monthly Money Market Rates, 2016 (Per Cent) Item Inter- Bank Call Range of Bid Rates Weighted Average Rates January February March April May 0.50-7.50 2.75 0.50-3.00 2.00-7.00 2.00-3.00 3.50-11.60 2.33 4.32 4.00 7.68 June 1.50-120.00 29.91 Inter-Bank (Tenored) Range of Bid Rate Weighted Average Rates Call NIBOR 30-Day NIBOR 10.62 13.72 31.63 15.19 16.45 15.89 22.44 15.02 16.64 14.64 14.05 15.38 10.00-10.00 10.00 3.50-40.00 21.75 Open-Buy-Back (OBB) Range of Bid Rates Weighted Average Rates 0.50-10.77 0.50-9.67 1.83-5.00 2.90 3.18 3.77 OMO Range of Issue Rate Range of Tenor (Days) 7.745-7.9007.750-7.800 7.700-9.0008.800-9.5009.500-10.00010.000-13.500 147-224 143-206 181-280 205-261 212-364 206-363 NTB Primary Issue Rate 6.71 7.26 7.61 8.57 9.64 10.53 MPR Savings Time Deposits Lending Tenored 11.00 3.29 11.00 3.29 12.00 3.26 12.00 3.54 12.00 3.57 12.00 3.61 16.54 16.72 16.82 16.77 16.13 16.78 49
58. Table 2 .8 Promissory Notes Beneficiary Assumed Bank Tranche Issue Date Issue Amount (N) Applicable Rate (%) Nill Nill Nill Nill Nill Nill Nill Nill Nill Nill Redemption Date Interest Pay Date Nill Nill Nill Nill Nill Nill 2017 2016 Table 2.9 Rediscounting Amount (N’Billion) Interest (N’Billion) Rate (%) Tenor (Days) January February March April May June Total 0.00 1.89 0.00 3.40 0.00 0.00 5.29 0.00 0.01 0.00 0.16 0.00 0.00 0.16 0.00 18.00 0.00 18.90-19.10 0.00 0.00 N/A 6 N/A 59-129 N/A N/A 2016 January February March April May June Total 0.00 0.00 0.00 0.00 0.00 35.36 35.36 0.00 0.00 0.00 0.00 0.00 33.64 33.64 0.00 0.00 0.00 0.00 0.00 1.71 1.71 0.00 0.00 0.00 0.00 0.00 16.25-17.15 0.00 Period 2017 50
59. Table 3 .1 Inter-Bank/Retail Dutch System Period 2017 January February March April May June Total Period 2016 January February March April May June Total Invisible Sales 0.00 74.56 172.00 173.40 182.90 102.00 704.86 Invisible Sales SME Sales 0.00 0.00 0.00 156.00 176.00 109.00 441.00 SME Sales Amount Sold at FWD Amount Sold at the Inter-bank 737.26 31.50 753.32 48.60 1098.03 39.41 1347.03 167.62 1075.75 293.83 737.47 166.93 5,748.86 747.89 Amount Amount Sold at Sold at the Inter-bank FWD Spot 3,487.76 3,487.76 972.04 895.77 1,092.05 727.69 616.50 1,423.81 5,727.86 51 Total Sales 768.76 876.48 1,309.44 1,844.05 1,728.48 1,115.40 7,642.61 Total Sales 972.04 895.77 1,092.05 727.69 616.50 4,911.57 9,215.62 Amount Purchased at the Inter-bank Amount Matured at FWD 705.14 53.96 54.62 187.02 12.38 0.63 1,013.75 Amount Purchased at the Inter-bank 217.34 368.23 801.75 823.18 1853.91 1268.25 5,332.66 Amount Matured at FWD 0.00 0.00
60. Table 3 . 2 Average Inter-Bank and BDC Rates (N/US$) Period Percentage Premium b/w Premium b/w Inter-Bank Inter-bank and BDCs and BDC Inter-Bank BDC 493.29 494.70 429.48 392.89 384.48 366.25 188.09 61.63 189.39 62.03 123.08 40.17 86.84 28.37 78.94 25.84 June 305.20 305.31 306.40 306.05 305.54 305.71 60.54 19.80 Average 305.70 426.85 121.15 39.64 197.00 197.00 197.00 197.00 197.00 231.76 289.78 329.83 320.93 320.71 336.93 351.82 92.78 47.09 132.83 67.43 123.93 62.91 123.71 62.80 139.93 71.03 202.79 325.00 120.06 122.21 51.80 60.51 2017 January February March April May 2016 January February March April May June Average 52
61. Table 4 . 1 The Nigerian Stock Exchange Transactions Period All Share Index 2017 Open Close January 26,616.89 26,026.24 February 25,903.55 25,329.08 March 25,183.10 25,516.34 April 25,273.03 25,758.51 May 25,965.18 29,498.31 June 30,314.14 33,117.48 2016 January 28,370.32 23,916.15 February 23,826.76 24,570.73 March 24,838.31 25,306.22 April 25,507.09 25,062.41 May 25,865.50 27,663.16 June 26,910.23 29,597.79 Source: The Nigerian Stock Exchange Market Capitalisation (N'Trillion) Value Traded (N'Billion) Volume Traded (Billion) Deals Open 9.16 8.93 8.72 8.74 8.97 10.48 Close 8.98 8.77 8.83 8.91 10.20 11.45 Open 3.76 1.57 2.39 0.68 2.13 4.63 Close 2.76 3.65 9.43 2.88 3.34 3.35 Open 3.37 0.03 0.02 0.01 0.02 0.04 Close 0.02 0.04 0.06 0.04 0.03 0.35 Open 2,033 2,620 2,958 2,634 3,392 5,107 Close 2,914 3,336 3,159 3,598 4,905 4,797 9.76 8.19 8.54 8.77 8.90 9.24 8.23 8.45 8.70 8.62 9.50 10.16 0.70 5.09 1.10 1.01 1.50 3.85 2.00 1.49 1.93 1.50 3.15 3.70 0.09 0.26 0.16 0.21 0.22 0.35 0.24 0.47 0.26 0.23 0.34 0.44 2,307 3,887 3,080 2,377 3,474 5,024 3,270 2,549 3,298 3,493 4,301 5,565 Table 4. 2 Quarterly Distribution of Transactions on the Nigerian Stock Exchange Period Volume Traded Value Traded (N) Deals 2017 Quarter 1 26,770,804,747.91 261,030,788,427.92 267,014 Quarter 2 29,971,045,078.09 292,234,977,633.80 298,934 56,741,849,826.00 553,265,766,061.72 565,948 Quarter 1 29,249,928,848.81 147,851,688,509.56 214,894 Quarter 2 32,720,259,390.19 165,393,414,264.93 240,389 61,970,188,239.00 313,245,102,774.49 455,283 Total 2016 Total 53
62. Table 4 . 3 Sectoral Distribution of Transactions on the Nigerian Stock Exchange Sector January to June 2016 January to June, 2017 Category Volume Value (=N=) No of Deals Percentage Volume Contribution Volume Value (=N=) No of Deals Percentage Volume Contribution Main Board Agriculture 391,370,181.00 1,783,468,306.37 6,073.00 0.63% 569,738,063.00 17,898,985,529.50 9,313.00 1.00% 2,178,522,502.00 4,511,659,158.22 19,931.00 3.52% 2,645,800,493.00 6,196,043,686.95 25,455.00 4.66% 57,985,208.00 980,317,584.73 3,011.00 0.09% 288,811,334.00 1,698,053,687.39 6,310.00 0.51% Consumer Goods 4,881,277,177.00 63,940,285,370.89 70,925.00 7.88% 2,413,779,766.00 93,828,054,214.48 89,643.00 4.25% Financial Services 52,662,744,211.00 194,371,522,623.33 283,096.00 84.98% 47,308,121,965.00 250,663,453,555.26 329,757.00 83.37% 227,401,284.00 1,404,538,926.45 6,430.00 0.37% 406,906,406.00 2,432,907,297.62 8,450.00 0.72% Conglomerates Construction/Real Estate Healthcare Information and Communication Industrial Goods Natural Resources 55,984,379.00 72,213,521.72 538.00 0.09% 133,096,694.00 446,506,641.31 712.00 0.23% 375,984,430.00 26,923,753,077.06 22,198.00 0.61% 532,925,535.00 30,254,436,313.98 24,441.00 0.94% 21,963,874.00 14,536,821.23 256.00 0.04% 2,417,958.00 2,569,645.95 388.00 Oil and Gas - - - - 1,618,227,870.00 147,726,204,194.53 58,716.00 2.85% Services - - - - 749,536,975.00 1,210,501,928.01 12,259.00 1.32% 56,669,363,059.00 552,357,716,694.98 565,444.00 99.87% Sub-Total ASeM Construction/Real Estate 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Industrial Goods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Oil and Gas 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Consumer Goods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Sub-Total Total (Equities) 61,966,421,786.00 312,205,062,622.75 454,296.00 99.99% 56,669,363,059.00 552,357,716,694.98 565,444.00 99.87% Government Bonds (Federal) Long Dated 657,135.00 744,850,250.40 118.00 17.45% 326,344.00 307,080,245.03 220.00 0.45% Government Bonds (Federal) Short Dated 0.00 0.00 0.00 0.00% 0.00 0.00 0.00 0.00% 52,760.00 58,588,469.27 3.00 1.40% 0.00 0.00 0.00 0.00% Bonds Government Bonds (State) ETFs Sub-Total (Bonds) Grand-Total 3,056,558.00 236,601,432.07 866.00 3,766,453.00 1,040,040,151.74 987.00 61,970,188,239.00 313,245,102,774.49 455,283.00 81.15% 72,160,423.00 72,486,767.00 908,049,366.74 504.00 100.00% 56,741,849,826.00 553,265,766,061.72 565,948.00 54 600,969,121.71 284.00 99.55% 100.00%
63. Table 4 . 4 Foreign Portfolio Participation in Equity Trading Month Total Total Foreign Total Foreign Transactions (N' Inflow (N' Outflow (N' billion) billion) billion) Total Domestic Foreign Transaction Transactions % (N' billion) 2017 January 95.32 22.61 21.40 51.31 46.17 February 74.11 16.10 18.44 39.57 46.61 March 285.05 23.64 108.87 152.54 46.49 April 54.90 14.54 7.91 32.45 40.89 May 205.61 73.15 22.04 110.42 46.30 June 220.27 65.93 35.60 118.74 46.09 Total 935.26 215.97 2016 January 84.10 17.01 February 117.27 10.94 March 96.31 15.40 April 66.96 14.52 May 103.92 20.96 June 155.85 42.46 Total 624.41 121.29 Source: The Nigerian Stock Exchange 214.26 505.03 45.43 26.36 31.84 19.04 13.76 19.62 37.30 147.92 40.73 74.49 61.87 38.68 63.34 76.08 355.19 51.57 36.48 35.76 42.23 39.05 51.18 42.71 55
64. Table 4 . 5 Listings and Delisting in 2017 New Listings, Supplementary Listing and Delisting in 2017 Company Amounts/Units Listed Date Listed New Listing A total volume of 5,970,000 units at N100 each belonging to The Traded at the exchange on 24th SIAML Pension 40 were admitted to trade at the Exchange on January, 2017. Tuesday 24th January, 2017. A total volume of 9,750,649,400 ordinary shares at N1.50 each Traded at the exchange on 31st Medview Airline Plc belonging to Medview Airline Plc were admitted to trade at the January, 2017. Exchange on Tuesday A total volume of 1,000,000 units of 7.875% FGN FEB 2032 $1 Traded at the Exchange on 2nd of 7.875% FGN FEB 2032 $1 billion Eurobond billion Eurobond were admitted March, 2017. FG Savings Bond (FGSB) APR 2019 and 868,690 A total volume of 419,327 units of 12.794% FGSB APR 2019 and Traded at the Exchange on 21st of units of 13.794% FGSB APR 2020 868,690 units of 13.794% FGSB APR 2020 were admitted. April, 2017. A total volume of 56,250,000 units of 16.2499% FGN APR 2037 Traded at the Exchange on 26th of 16.2499% FGNB APR 2037 were admitted April, 2017. A total volume of 7,965,000 units at N100 each belonging to Sterling Traded at the Exchange on 12th May, Bond: Sterling Investment Management SPV Plc Investment Management SPV Plc were admitted. 2017. 13.189% FGSB MAY 2019 and 483,199 units of A total volume of 307,647 units of 13.189% FGSB MAY 2019 and Trade at the Exchange on 24th of May, 14.189% FGSB MAY 2020 483,199 units of 14.189% FGSB MAY 2020 were admitted 2017. Bond: 16.50% Lagos State Government Bond (LAB) A total volume of 47,000,000 units of 16.50% LAB Dec 2023 were Traded at the Exchange on Wednesday Dec 2023 admitted 17th May, 2017. SIAML Pension 40 ETF Mixta Real Estate Plc N4.5 billion 17% Guaranteed Fixed Rate Bond Company Supplementary Listing A total volume of 4,500,000 units of Mixta Real Estate Plc N4.5 billion Traded at the Exchange on 29th May, 17% Guaranteed Fixed Rate Bond Due January 2022 were admitted 2017. Additional Shares Reason Sequel to the bonus issue of 1 for 10, a total volume of 156,955,133 Traded at the exchange on 31st units were added to Neimeth International Pharmaceutical Plc, thus January, 2017. bringing its total outstanding shares to 1,726,506,461 units. A total volume of 74,896,820, 105,100,320, 34,951,440 units were 12.50% FGNB JAN 2026, 12.40% FGNB MAR added to the following bonds 12.50% FGNB JAN 2026, 12.40% 31st January, 2017. 2036 and 14.50% FGNB JUL 2021 FGNB MAR 2036 and 14.50% FGNB JUL 2021 respectively. A total volume of 30,000,000, 70,000,000, 60,000,000 units were 12.50% FGNB JAN 2026, 12.40% FGNB MAR added to the following bonds 12.50% FGNB JAN 2026, 12.40% 22nd February, 2017. 2036 and 14.50% FGNB JUL 2021 FGNB MAR 2036 and 14.50% FGNB JUL 2021 respectively. A total volume of 34,040,100 units were added to 16.2884% FGNB 26th of April 16.2884% FGNB MAR 2027 MAR 2027 A total of 373,769,642 units of were added to 14.50% FGNB JUL 14.50% FGNB JUL 2021 2021. A total volume of 206,237,723 ordinary shares were added to the outstanding shares of Meyer Plc. This additional shares arose from the Equity : Meyer Pharmaceutical Plc 25th of April 2017. rights issue of 291,489,840 ordinary shares of 50 kobo at 75 kobo per share. A total volume of 393,415,535 ordinary shares were added to the outstanding shares of Portland Paints and Product Nigeria Plc on . This Traded at the Exchange on 12th May, Equity :Portland Paints and Product Nigeria Plc additional shares arose from rights issue of 600,000,000 ordinary 2017. shares of 50 kobo at N1.70 per share. A total volume of 500,000,000 units were added to 7.875% FGNB 7.875% FGNB FEB 2032 FEB 2032 on the 3rd of May 2017. A total volume of 15,848,874 units of 50 kobo each arising from the consideration for 56,161,661 Ashaka Cement Ordinary Shares of 50 Traded at the Exchange on 18th May, Equity : Ashaka Cement Plc kobo tendered by 2,535 shareholders of AshakaCem were added to 2017. the shares of Lafarge Africa Plc and admitted A total volume of 10,000,000, 35,000,000, 65,000,000 units were 14.50% FGNB JUL 2021, 16.2884% FGNB MAR added to the following bonds 14.50% FGNB JUL 2021, 16.2884% 16th May, 2017. 2036 and 16.2499% FGNB APR 2037 FGNB MAR 2036 and 16.2499% FGNB APR 2037 respectively. Neimeth International Pharmaceutical Plc 56
65. Company Reason DeListing Price Adjustment ETF Redemption and Addition The equity price of Neimeth International Pharmaceutical Plc was adjusted for a scrip issue of 1 for 10 as declared by the board of Adjusted on 31st of January 2017 directors . The last close price was N0.70, hence the ex.scrip price was N0.64. A total volume of 1,000,000 units of Vetiva Griffin 30 ETF were on the 13th of February, 2017, redeemed thus bringing its total outstanding units to 149,400,000. A total volume of 14,000,000 and 200,000 units of Lotus Halal Equity ETF were redeemed and added respectively thus bringing its total on the 13th of February, 2017 outstanding units to 48,200,000. ETF ETF Company New Listings, Supplementary Listing and Delisting in 2016 Amounts/Units Listed Date Listed New Listing FGN Bond Benue State Government Zamfara State Government Bond 45,838,333 units belonging to 12.50% FGN Jan 2026 were admitted to trade at the Exchange on Friday 29th January, 2016. A total volume of 4,950,000 units belonging to 16.5% BNU Feb 2022 were admitted to trade at the Exchange on Thursday 4th February, 2016. N7 Billion 17% Fixed Rate Development Bonds due 2022 was trade at the Exchange on January 29th, 2016 trade at the Exchange February 4th, 2016 trade at the Exchange on February 19th, 2016 admitted to trade at the Exchange on Friday, 19th February, 2016. Cornerstone Insurance Plc, Equity Transorp Hotels Plc FGN Bond of 12.40% Mar 2036 FGN Bond The Initiates Plc, Equity ETF ARM FUND Memorandum Listing Lafarge Africa Plc 5,909,497,252 ordinary shares of 50 kobo were added to the trade at the Exchange on March 15, outstanding shares of Cornerstone to serve as Purchase Consideration 2016 for Acquiring 96.68% Stake in FIN Insurance Plc Company Ltd. 9,758,000 unit of Transorp Hotels Plc valued at N9,758,000,000 trade at the Exchange on March 20, (Series 2) 5 Year 15.50% Fixed Rate Unsecured Bonds Due 2020 2016 40,000,000 units valued at N40,000,000,000.00 of 12.40% FGN trade at the Exchange on march 23, Mar 2036 were admitted to trading on 23rd of March, 2016 2016 30,000,000 units of 14.50% FGN JUL 2021 Bond was admitted to trade at the Exchange July 27, 2016 trade at the Exchange on Wednesday, 27th July, 2016. 889,981,552 ordinary shares of 50k each belonging to The Initiates Plc at N0.85 were admitted to trade at The Exchange by introduction trade at the Exchange on October 26, on Tuesday 25th of October, 2016. The security was listed on the 2016 ASeM. 5,070,359 units belonging to Vetiva S &P Nigerian Sovereign Bond trade at the Exchange on October 26, ETF were admitted to trade at the Exchange on Monday 24th 2016 October, 2016. 13,305,279,997 at N1.00 per unit of ARM Money Market Fund trade at the Exchange on November 28, under Memorandum listing were admitted by introduction on the Daily 2016 Official List of the Exchange on the 28th of November, 2016. 26,386,000 units (Series1) 3 Year 14.25% Fixed rate Bonds due 2019 (14.25% LAF JUN 2019) and 33,614,000 units (Series 2) 5 Year 14.75% Fixed rate Bonds due 2021 (14.75% LAF JUN 2021) trade at the Exchange November 29, under a N100 billion bond issuance programme were admitted to trade 2016 at the Exchange on the 29th of November. (All issued by Lafarge Africa Plc) 57
66. Company Supplementary Listing FGN Bond FGN Bond Cornerstone Insurance Plc FGN Bond FGN Bond Fortis Microfinance Bank Plc (FORTISMFB) FGN Bond FGN Bond FGN Bond FGN Bond Staco Insurance FGN Bond United Cement Equity DeListing Intercontinental Bank Plc Wema Bank Plc Vono Products Plc Lennards (Nigeria) Plc P.S Mandrides & Company Plc Premier Breweries Plc Costain (W.A) Plc Navitus Energy Plc Nigerian Ropes Plc Source: Nigerian Stock Exchange Additional Shares Reason 491,930,000 units were added to 15.54% FGN Feb 2020 on Friday, additional 28 January 2016. 50,000,000 units were added to 12.50% FGN Jan 2026 bonds on additional 17th February, 2016. 40,000,000 units were added to 15.54%FGN Feb 2020, 17th additional February, 2016. 5,909,497,252 ordinary shares of 50 kobo were added to the additional outstanding shares of Cornerstone Insurance Plc. 25 million and 60 million units were added to the following Federal Government Bonds: 15.54% FGN Feb 2020 and 12.50% FGN Jan additional 2026, respectively 20 million, 110.180 million and 40 million units were added to the following bonds: 15.54% FGN Feb 2020, 12.50% FGN Jan 2026 additional and 12.40% FGN Mar 2036 respectively. Ordinary shares of 656,666,668 units of (FORTISMFB) which arose from the conclusion of the Special Placing exercise by the Bank were special placement admitted to trading on 12th May, 2016. 7,500,000, 20,000,000, and 25,000,000 units were added to the following bonds: 15.54% FGN Feb 2020, 12.50% FGN Jan 2026 additional and 12.40% FGN Mar 2036 respectively on Tuesday 17th May, 2016. 20 million, 40 million and 50 million units were added to the following bonds: 15.54% FGN FEB 2020, 12.50% FGN JAN 2026 and additional 12.40% FGN MAR 2036 respectively on Tuesday 21st June, 2016 A total volume of 35,000,000 and 55,000,000 units were added to the following bonds 12.50% FGN JAN 2026 and 12.40% FGN MAR additional 2036 respectively on the 27th of July, 2016. A total of 30,000,000, 40,000,000 and 149,585,000 units were additional added to the following bonds: on the 29th of August, 2016. A total of 3,200,000,000 units of Staco Insurance Plc which arose special Placement from a Special Placing shares of the company to 9,341,087,609 units. A total of 47,000,000, 42,000,000 and 15,000,000 units were added additional to the following bonds: on the 19th of October, 2016. A total of 413,175,709 ordinary shares were added to the outstanding shares of shareholding of United Cement Company Ltd. By this action additional the total outstanding shares of the company now stood at 5,423,567,700. Reason Non Existence (Now Access Bank) Non compliance with post-listing requirement Non Existence (as a result of the merger between Vitafoam Nigeria Plc and Vono Products Plc). Non compliance with post-listing requirement (on 1st Dec, 2016) Non compliance with post-listing requirement (on 1st Dec, 2016) Non compliance with post-listing requirement (on 1st Dec, 2016) Non compliance with post-listing requirement (on 1st Dec, 2016) Non compliance with post-listing requirement (on 1st Dec, 2016) Non compliance with post-listing requirement (on 1st Dec, 2016) 58
67. Table 5 . 1 Nigerian Domestic Debt: Composition Instrument Amount Outstanding Proportion (%) 2017 FGN Bonds 7,962,193,046,934.68 67.13 4,754,075,000.00 0.04 Nigeria Treasury Bills 3,702,831,679,000.00 31.22 FRN Treasury Bonds 190,988,000,000.00 1.61 FGN Savings Bonds Total 11,860,766,800,934.70 100.00 FGN Bonds 7,473,539,169,592.51 70.46 Nigeria Treasury Bills 2,901,807,046,000.00 27.36 FRN Treasury Bonds 230,988,000,000.00 2.18 2016 Total 10,606,334,215,592.50 59 100.00
68. Table 5 . 2 Primary Market: Nigerian Treasury Bills Transactions (N'Billion) Allotment Period Issues Subscription Repayment Ave. Rates % DMBs Merchant Banks Mandate & CBN CBN/MMD Internal Branches Take-up Customers Total 2017 January 441.81 636.40 321.81 16.66 329.15 11.60 92.94 8.12 0.00 441.81 February 504.83 1,017.23 384.83 16.48 380.96 7.45 106.82 9.60 0.00 504.83 March 698.97 778.65 615.71 16.46 322.85 7.93 343.48 10.57 14.13 698.97 April 402.41 417.09 402.41 16.58 155.99 7.52 116.74 9.12 113.05 402.41 May 367.61 496.35 261.56 16.50 145.23 12.78 199.10 10.49 0.00 367.61 June 513.63 621.19 464.77 16.48 219.09 25.38 257.80 11.36 0.00 513.63 2,929.25 3,966.92 2,451.09 1,553.27 72.66 1,116.88 59.26 127.18 2,929.25 January 332.21 600.57 332.21 6.71 262.08 8.72 56.00 5.41 0.00 332.21 February 384.83 914.57 334.83 7.26 306.28 5.68 66.40 6.47 0.00 384.83 March 611.51 1,546.88 494.60 7.61 328.69 6.94 263.58 12.30 0.00 611.51 April 386.41 699.08 386.41 8.57 348.82 7.22 24.01 6.37 0.00 386.41 May 261.56 478.05 261.56 9.64 157.91 9.09 88.07 6.48 0.00 261.56 June 480.75 818.24 403.75 10.53 275.91 28.56 141.64 6.64 28.00 480.75 2,457.28 5,057.39 2,213.36 1,679.69 66.22 639.71 43.67 28.00 2,457.28 Total 2016 Total Table 5. 3 Nigerian Treasury Bills Outstanding: Class of Holders 2017 Customer Class Banks Merchant Banks Parastatals CBN Total January N'Million % 1,246,340.82 36.69% 38,469.12 1.13% 2,109,423.93 62.09% 3,044.97 0.09% 3,397,278.83 100.00% February N'Million % 1,489,005.49 42.33% 14,750.62 0.42% 2,011,736.17 57.20% 1,786.56 0.05% 3,517,278.83 100.00% March N'Million % 1,427,873.40 39.66% 17,026.62 0.47% 2,153,509.26 59.81% 2,124.97 0.06% 3,600,534.24 100.00% April N'Million % 1,571,434.94 43.64% 17,026.62 0.47% 2,009,947.72 55.82% 2,124.97 0.06% 3,600,534.24 100.00% May N'Million % 1,621,369.73 44.05% 14,791.83 0.40% 2,030,797.72 55.18% 13,574.97 0.37% 3,680,534.24 100.00% June N'Million % 1,651,340.77 44.60% 12,091.83 0.33% 2,037,274.11 55.02% 2,124.97 0.06% 3,702,831.68 100.00% January N'Million % 974,842.72 35.16% 50,466.18 1.82% 1,527,698.37 55.09% 219,859.77 7.93% 2,772,867.04 100.00% February N'Million % 989,204.52 35.04% 33,874.40 1.20% 1,572,968.35 55.72% 226,819.76 8.04% 2,822,867.04 100.00% March N'Million % 1,015,519.73 35.95% 48,869.16 1.73% 1,517,578.41 53.72% 242,839.75 8.60% 2,824,807.05 100.00% April N'Million % 1,055,828.54 37.38% 31,920.32 1.13% 1,512,638.42 53.55% 224,419.77 7.94% 2,824,807.05 100.00% May N'Million % 1,126,487.81 39.88% 59,320.95 2.10% 1,608,998.32 56.96% 29,999.97 1.06% 2,824,807.05 100.00% June N'Million % 1,114,660.95 38.41% 67,321.92 2.32% 1,688,744.10 58.20% 31,080.08 1.07% 2,901,807.05 100.00% 2016 Customer Class Banks Merchant Banks Parastatals CBN Total 60
69. Table 5 . 4 Federal Republic of Nigeria Treasury Bonds: Class of Holders S/N Treasury Bond Issue Amount CBN Holdings FGN Treasury Bond S/Fund Holding FGN Bond S/Fund Holding 2017 1 5% T/Bond 2018 15,000,000,000 1,000 14,999,999,000 0.00 2 12.50% T/Bond 2018 25,000,000,000 1,730,952,000 23,269,048,000 0.00 3 12.50% T/Bond 2019 25,000,000,000 4,418,063,000 20,581,937,000 0.00 4 12.50% T/Bond 2020 25,000,000,000 6,748,173,000 18,251,827,000 0.00 5 12.50% T/Bond 2021 25,000,000,000 10,649,579,000 14,350,421,000 0.00 6 12.50% T/Bond 2022 25,000,000,000 12,193,628,000 12,806,372,000 0.00 7 12.50% T/Bond 2023 25,000,000,000 13,543,287,000 11,456,713,000 0.00 8 12.50% T/Bond 2024 Total 25,988,000,000 15,361,707,000 10,626,293,000 0.00 190,988,000,000 64,645,390,000 126,342,610,000 0.00 2016 1 5% T/Bond 2017 15,000,000,000 1,000 14,999,999,000 0.00 2 5% T/Bond 2018 15,000,000,000 1,222,090,000 13,777,910,000 0.00 3 12.50% T/Bond 2017 25,000,000,000 1,931,249,000 23,068,751,000 0.00 4 12.50% T/Bond 2018 25,000,000,000 4,648,140,000 20,351,860,000 0.00 5 12.50% T/Bond 2019 25,000,000,000 6,995,961,000 18,004,039,000 0.00 6 12.50% T/Bond 2020 25,000,000,000 9,031,859,000 15,968,141,000 0.00 7 12.50% T/Bond 2021 25,000,000,000 12,469,062,000 12,530,938,000 0.00 8 12.50% T/Bond 2022 25,000,000,000 13,814,767,000 11,185,233,000 0.00 9 12.50% T/Bond 2023 25,000,000,000 14,991,055,000 10,008,945,000 0.00 10 12.50% T/Bond 2024 Total 25,988,000,000 16,702,803,000 9,285,197,000 0.00 230,988,000,000 81,806,987,000 149,181,013,000 0.00 61
70. Table 5 . 5 Federal Government of Nigeria Bonds Issue, 2017 Tranche January 14.50% FGN JUL 2021 12.50% FGN JAN 2026 12.40% FGN MAR 2036 Sub-Total February 14.50% FGN JUL 2021 12.50% FGN JAN 2026 12.40% FGN MAR 2036 Sub-Total March 14.50% FGN JUL 2021 16.2884% FGN MAR 2027 12.40% FGN MAR 2036 Sub-Total April 14.50% FGN JUL 2021 16.2884% FGN MAR 2027 16.2499% FGN APR 2037 Sub-Total May 14.50% FGN JUL 2021 16.2884% FGN MAR 2027 16.2499% FGN APR 2037 Sub-Total June 14.50% FGN JUL 2021 16.2884% FGN MAR 2027 16.2499% FGN APR 2037 Sub-Total Grand Total Tenor Issue (N'Billion) Subscription (N'Billion) Allotment (N'Billion) 5 Year 10 Year 20 Year 40.00 50.00 40.00 130.00 39.15 83.00 112.90 235.05 34.95 74.90 105.10 214.95 5 Year 10 Year 20 Year 45.00 20.00 45.00 110.00 108.96 88.17 139.9 337.03 60.00 30.00 70.00 160.00 5 Year 10 Year 20 Year 45.00 50.00 35.00 130.00 38.21 75.99 102.18 216.38 30.00 50.00 80.00 160.00 5 Year 10 Year 20 Year 35.00 50.00 50.00 135.00 20.93 37.54 71.00 129.47 15.03 34.04 56.25 105.32 5 Year 10 Year 20 Year 40.00 50.00 50.00 140.00 17.29 52.94 91.67 161.90 10.00 35.00 65.00 110.00 5 Year 10 Year 20 Year 40.00 50.00 50.00 140.00 785.00 12.52 57.35 88.24 158.11 1,237.94 4.22 30.25 64.79 99.26 849.53 62
71. Table 5 .5.1 Federal Government of Nigeria Bonds Issue, 2016 Tranche January 15.54% FGN FEB 2020 12.50% FGN JAN 2026 Sub-Total February 15.54% FGN FEB 2020 12.50% FGN JAN 2026 Sub-Total March 15.54% FGN FEB 2020 12.50% FGN JAN 2026 12.40% FGN MAR 2036 Sub-Total April 15.54% FGN FEB 2020 12.50% FGN JAN 2026 12.40% FGN MAR 2036 Sub-Total May 15.54% FGN FEB 2020 12.50% FGN JAN 2026 12.40% FGN MAR 2036 Sub-Total June 15.54% FGN FEB 2020 12.50% FGN JAN 2026 12.40% FGN MAR 2036 Sub-Total Grand Total Tenor Issue (N'Billion) Subscription (N'Billion) Allotment (N'Billion) 5 Year 10 Year 40.00 40.00 80.00 74.44 74.99 149.43 40.00 35.00 75.00 5 Year 10 Year 40.00 50.00 90.00 122.16 111.6 233.76 40.00 50.00 90.00 5 Year 10 Year 20 Year 20.00 40.00 40.00 100.00 72.559 89.358 100.529 262.45 20.00 40.00 40.00 100.00 5 Year 10 Year 20 Year 20.00 40.00 50.00 110.00 58.529 78.591 69.609 206.73 20.00 40.00 40.00 100.00 5 Year 10 Year 20 Year 15.00 40.00 50.00 105.00 35.40 51.71 72.49 159.60 7.50 20.00 25.00 52.50 5 Year 10 Year 20 Year 15.00 40.00 50.00 105.00 590.00 32.880 66.860 72.130 171.87 1,183.83 22.00 40.00 50.00 112.00 529.50 63
72. Table 5 .6 Federal Government of Nigeria Bonds Outstanding Auction ID Bond Tranche New Nomenclature Issue Amount (N) Redemption Date Interst Pay Date 27/07/2017 27 JAN & 27 JUL. Interest Rate Issue Date FGB.2007-000039 4TH FGN BOND 2017 SERIES 8 9.85% FGN JUL 2017 9.85% 27/07/2007 20,000,000,000.00 FGB.2007-000040 4TH FGN BOND 2017 SERIES 9 9.35% FGN AUG 2017 FGB.2012-000067 5TH FGN BOND 2018 SERIES 2 10.70% FGN MAY 2018 9.35% 10.70% 31/08/2007 30/05/2008 100,000,000,000.00 300,000,000,000.00 31/08/2017 29 FEB & 31 AUG. 30/05/2018 30 MAY & 30 NOV. FGB.2010-000060 5TH FGN BOND 2028 SERIES 5 15.00% FGN NOV 2028 FGB.2009-000053 6TH FGN BOND 2029 SERIES 3 12.49% FGN MAY 2029 15.00% 12.49% 28/11/2008 22/05/2009 75,000,001,000.00 150,000,000,000.00 28/11/2028 28 MAY & 28 NOV. 22/05/2029 22 MAY & 22 NOV. FGB.2011-000064 6TH FGN BOND 2019 SERIES 4 7.00% FGN OCT 2019 7.00% 23/10/2009 233,896,698,000.00 23/10/2019 FGB.2009-000055 6TH FGN BOND 2029 SERIES 5 8.50% FGN NOV 2029 FGB.2013-000073 7TH FGN BOND 2030 SERIES 3 10.00% FGN JUL 2030 8.50% 10.00% 20/11/2009 23/07/2010 200,000,000,000.00 591,568,208,000.00 20/11/2029 20 MAY & 20 NOV. 23/07/2030 23 JAN & 23 JUL FGB.2013-000072 9TH FGN BOND 2022 SERIES 1 16.39% FGN JAN 2022 FGB 2012-000069 9TH FGN BOND 2019 SERIES 3 16.00% FGN JUN 2019 16.39% 16.00% 27/01/2012 29/06/2012 605,310,000,000.00 351,300,000,000.00 27/01/2022 29/06/2019 27 JAN & 27 JUL 29 JUN & 29 DEC NGFB0010Y00058/MN 11TH FGN BOND 2024 SERIES 1 14.20% FGN MAR 2024 14.20% 14/03/2014 719,994,128,000.00 14/03/2024 14 MAR & 14 SEP NGFB0020Y00060/MN 11TH FGN BOND 2034 SERIES 2 12.1493% FGN JUL 2034 NGFB0005Y00063/MN 12TH FGN BOND 2020 SERIES 1 15.54% FGN FEB 2020 12.15% 15.54% 18/07/2014 13/02/2015 1,075,920,115,000.00 606,430,000,000.00 18/07/2034 13/02/2020 18 JAN & 18 JUL 13 FEB & 13 AUG NGFB0010Y00064/MN 12TH FGN BOND 2025 SERIES 2 12.00% FGN MAR 2025 NGFB0010Y00065/MN 12TH FGN BOND 2025 SERIES 3 9.00% FGN MAY 2025 12.00% 9.00% 3/3/2015 22/05/2015 263,600,000,000.00 190,000,000,000.00 3/3/2025 3 MAR & 3 SEP 22/05/2025 22 MAY & 22 NOV. NGFB0015Y00066/MN 12TH FGN BOND 2030 SERIES 4 9.00% FGN AUG 2030 NGFB0010Y00067/MN 13TH FGN BOND 2026 SERIES 1 12.50% FGN JAN 2026 9.00% 12.50% 24/08/2015 22/01/2016 98,522,000,000.00 611,915,153,000.00 24/08/2030 22/01/2026 24 FEB & 24 AUG 22 JAN & 22 JUL NGFB0025Y00071/MN 13TH FGN BOND 2041 SERIES 2 6.00% FGN FEB 2041 6.00% 1/2/2016 402,639,507,796.00 1/2/2041 1 FEB & 1 AUG NGFB0030Y00072/MN 13TH FGN BOND 2046 SERIES 3 6.00% FGN FEB 2046 NGFB0020Y00068/MN 13TH FGN BOND 2036 SERIES 4 12.40% FGN MAR 2036 6.00% 12.40% 1/2/2016 18/03/2016 402,639,507,796.00 668,100,320,000.00 1/2/2046 18/03/2036 1 FEB & 1 AUG 18 MAR & 18 SEP NGFB0030Y00070/MN 13TH FGN BOND 2046 SERIES 5 6.00% FGN APR 2046 NGFB0005Y00073/MN 13TH FGN BOND 2021 SERIES 6 14.50% FGN JUL 2021 6.00% 14.50% 22/04/2016 15/07/2016 224,601,000,000.00 387,984,942,000.00 22/04/2046 15/07/2021 22 APR & 22 OCT 15 JAN & 15 JUL NGFB0010Y17327/MN 14TH FGN BOND 2027 SERIES 1 16.2884% FGN MAR 2027 16.29% 17/03/2017 149,292,302,000.00 17/03/2027 17 MAR & 17 SEP NGFB0020Y18437/MN 14TH FGN BOND 2037 SERIES 2 16.2499% FGN APR 2037 Total 16.25% 18/04/2017 186,039,000,000.00 8,614,752,882,592.00 18/04/2037 18 APR & 18 OCT New Nomenclature Interest Rate Issue Date Redemption Date Interst Pay Date 9.85% FGN JUL 2017 9.35% FGN AUG 2017 10.70% FGN MAY 2018 15.00% FGN NOV 2028 12.49% FGN MAY 2029 7.00% FGN OCT 2019 8.50% FGN NOV 2029 10.00% FGN JUL 2030 16.39% FGN JAN 2022 15.10% FGN APR 2017 16.00% FGN JUN 2019 13.05% FGN AUG 2016 14.20% FGN MAR 2024 12.1493% FGN JUL 2034 15.54% FGN FEB 2020 12.00% FGN MAR 2025 9.00% FGN MAY 2025 9.00% FGN AUG 2030 12.50% FGN JAN 2026 6.00% FGN FEB 2041 6.00% FGN FEB 2046 12.40% FGN MAR 2036 6.00% FGN APR 2046 9.85% 9.35% 10.70% 15.00% 12.49% 7.00% 8.50% 10.00% 16.39% 15.10% 16.00% 13.05% 14.20% 12.15% 15.54% 12.00% 9.00% 9.00% 12.50% 6.00% 6.00% 12.40% 6.00% 27/07/2007 31/08/2007 30/05/2008 28/11/2008 22/05/2009 23/10/2009 20/11/2009 23/07/2010 27/01/2012 27/04/2012 29/06/2012 16/08/2013 14/03/2014 18/07/2014 13/02/2015 3/3/2015 22/05/2015 24/08/2015 22/01/2016 1/2/2016 1/2/2016 18/03/2016 22/04/2016 27/07/2017 31/08/2017 30/05/2018 28/11/2028 22/05/2029 23/10/2019 20/11/2029 23/07/2030 27/01/2022 27/04/2017 29/06/2019 16/08/2016 14/03/2024 18/07/2034 13/02/2020 3/3/2025 22/05/2025 24/08/2030 22/01/2026 1/2/2041 1/2/2046 18/03/2036 22/04/2046 27 JAN & 27 JUL. 29 FEB & 31 AUG. 30 MAY & 30 NOV. 28 MAY & 28 NOV. 22 MAY & 22 NOV. 23 APR & 23 OCT 20 MAY & 20 NOV. 23 JAN & 23 JUL 27 JAN & 27 JUL 27 APR & 27 OCT 29 JUN & 29 DEC 16 FEB & 16 AUG 14 MAR & 14 SEP 18 JAN & 18 JUL 13 FEB & 13 AUG 3 MAR & 3 SEP 22 MAY & 22 NOV. 24 FEB & 24 AUG 22 JAN & 22 JUL 1 FEB & 1 AUG 1 FEB & 1 AUG 18 MAR & 18 SEP 22 APR & 22 OCT 2017 Auction ID Bond Tranche 2016 FGB.2007-000039 4TH FGN BOND 2017 SERIES 8 FGB.2007-000040 4TH FGN BOND 2017 SERIES 9 FGB.2012-000067 5TH FGN BOND 2018 SERIES 2 FGB.2010-000060 5TH FGN BOND 2028 SERIES 5 FGB.2009-000053 6TH FGN BOND 2029 SERIES 3 FGB.2011-000064 6TH FGN BOND 2019 SERIES 4 FGB.2009-000055 6TH FGN BOND 2029 SERIES 5 FGB.2013-000073 7TH FGN BOND 2030 SERIES 3 FGB.2013-000072 9TH FGN BOND 2022 SERIES 1 FGB.2013-000075 9TH FGN BOND 2017 SERIES 2 FGB 2012-000069 9TH FGN BOND 2019 SERIES 3 FGB 2013-000076 10TH FGN BOND 2016 SERIES 1 NGFB0010Y00058/MN 11TH FGN BOND 2024 SERIES 1 NGFB0020Y00060/MN 11TH FGN BOND 2034 SERIES 2 NGFB0005Y00063/MN 12TH FGN BOND 2020 SERIES 1 NGFB0010Y00064/MN 12TH FGN BOND 2025 SERIES 2 NGFB0010Y00065/MN 12TH FGN BOND 2025 SERIES 3 NGFB0015Y00066/MN 12TH FGN BOND 2030 SERIES 4 NGFB0010Y00067/MN 13TH FGN BOND 2026 SERIES 1 NGFB0025Y00067/MN 13TH FGN BOND 2041 SERIES 2 NGFB0030Y00068/MN 13TH FGN BOND 2046 SERIES 3 NGFB0020Y00068/MN 13TH FGN BOND 2036 SERIES 4 NGFB0030Y00069/MN 13TH FGN BOND 2046 SERIES 5 Total 64 Issue Amount (N) 20,000,000,000.00 100,000,000,000.00 300,000,000,000.00 75,000,001,000.00 150,000,000,000.00 233,896,698,000.00 200,000,000,000.00 591,568,208,000.00 605,310,000,000.00 480,133,082,000.00 351,300,000,000.00 581,386,704,000.00 719,994,128,000.00 1,075,920,115,000.00 606,430,000,000.00 263,600,000,000.00 190,000,000,000.00 98,522,000,000.00 326,018,333,000.00 402,639,507,796.26 402,639,507,796.25 155,000,000,000.00 224,601,000,000.00 8,153,959,284,592.51 23 APR & 23 OCT
73. Table 5 . 7 Federal Government of Nigeria Bonds Outstanding: Class of Holders Bond Tranche Banks Merchant Banks Brokers Pension Fund Parastatals Corporate Bodies Insurance Companies Trust/Inv./Tax Fund CBN Individuals Total 4TH FGN BOND 2017 SERIES 8 14.40 0.20 - 2.01 - 3.39 - - - - 20.00 4TH FGN BOND 2017 SERIES 9 73.50 7.23 - 7.09 - 9.80 0.20 - 2.18 0.00 100.00 Sub-Total 5TH FGN BOND 2018 SERIES 2 5TH FGN BOND 2028 SERIES 5 87.90 7.43 - 9.09 - 13.19 0.20 - 2.18 0.00 120.00 150.16 14.48 13.61 99.94 - 7.75 0.90 10.26 2.30 0.60 300.00 29.34 6.26 - 37.46 - 1.31 - 0.56 - 0.07 75.00 179.51 20.74 13.61 137.40 - 9.06 0.90 10.82 2.30 0.68 375.00 6TH FGN BOND 2029 SERIES 3 50.42 29.85 6.20 53.71 - 2.60 - - 7.22 0.00 150.00 6TH FGN BOND 2019 SERIES 4 89.07 17.15 24.80 62.85 - 19.27 0.70 11.88 8.15 0.03 233.90 6TH FGN BOND 2029 SERIES 5 109.45 46.44 2.00 12.60 - 4.75 0.10 8.10 16.50 0.05 200.00 Sub-Total 248.94 93.44 33.00 129.16 - 26.62 0.80 19.98 31.87 0.08 583.90 7TH FGN BOND 2030 SERIES 3 169.14 8.62 23.16 255.34 - 100.12 8.45 14.46 12.10 0.18 591.57 Sub-Total 169.14 8.62 23.16 255.34 - 100.12 8.45 14.46 12.10 0.18 591.57 9TH FGN BOND 2022 SERIES 1 195.31 14.01 54.99 99.86 130.61 81.78 12.61 15.93 - 0.21 605.31 9TH FGN BOND 2019 SERIES 3 150.82 7.35 24.89 56.18 38.80 62.96 7.78 1.89 - 0.63 351.30 Sub-Total 346.12 21.36 79.89 156.04 169.41 144.74 20.38 17.82 - 0.84 956.61 11TH FGN BOND 2024 SERIES 1 161.55 16.36 119.85 122.81 133.60 108.79 19.13 34.53 - 3.37 719.99 11TH FGN BOND 2034 SERIES 2 775.15 9.99 73.83 130.72 45.19 15.21 16.68 - 9.16 1,075.92 Sub-Total 936.70 26.35 193.67 253.53 133.60 153.98 34.34 51.21 - 12.53 1,795.91 12TH FGN BOND 2020 SERIES 1 215.21 10.05 97.38 105.48 119.73 19.56 15.88 1.03 5.00 17.12 606.43 12TH FGN BOND 2025 SERIES 2 - - - - 49.81 - - - 213.79 - 263.60 12TH FGN BOND 2025 SERIES 3 - - - - - - - - 190.00 - 190.00 Sub-Total 12TH FGN BOND 2030 SERIES 4 - - - - - - - - 98.52 - Sub-Total 215.21 10.05 97.38 105.48 169.54 19.56 15.88 1.03 507.31 17.12 1,158.55 13TH FGN BOND 2026 SERIES 1 271.53 0.50 107.09 77.41 81.02 9.65 12.27 0.80 2.00 49.65 611.92 13TH FGN BOND 2041 SERIES 2 402.64 13TH FGN BOND 2046 SERIES 3 13TH FGN BOND 2036 SERIES 4 0.18 122.69 11.55 22.23 1.78 168.86 Sub-Total 771.91 Sub-Total Grand Total 43.64 21.92 144.74 1.91 13.53 2.50 21.00 13.53 387.98 261.51 344.84 23.11 48.03 5.08 1,054.88 106.82 2,697.88 23.24 16.02 0.50 14.61 12.00 149.29 224.60 13TH FGN BOND 2021 SERIES 6 14TH FGN BOND 2037 SERIES 2 2.00 402.64 132.50 13TH FGN BOND 2046 SERIES 5 14TH FGN BOND 2027 SERIES 1 402.64 402.64 331.52 0.68 82.92 90.04 172.96 3,128.39 98.52 34.36 38.59 - 57.59 54.61 188.66 759.81 1,445.50 65 81.02 19.55 553.58 0.50 34.16 - 490.88 163.15 120.40 1,610.64 668.10 224.60 3.50 186.04 15.50 335.33 153.75 8,614.75
74. Table 5 . 8 Marginal Rates and Range for Successful Bids Schedule 91 Range of Bids January 13.0000 – 18.0000 13.0000 – 18.5900 February 12.0000 – 17.5000 9.0000 – 25.0000 March 13.0000 – 18.0000 12.0000 – 13.6000 13.2999 – 17.0000 April 13.1500 – 14.5000 13.4990 – 17.0000 May 13.4500 – 14.0000 13.4990 – 16.5000 June 13.4000 – 16.5000 13.3000 - 15.5000 13.4000 - 13.4999 91 Range of Bids January 3.0000-9.0000 3.2500-6.5990 February 3.0000-9.0000 3.0000-7.0000 March 4.0000-7.2000 4.5000-11.0000 5.0000-10.0000 April 5.0000-10.0000 5.0000-10.0000 May 6.0000-10.0000 6.0000-13.0000 June 6.0000-12.1250 6.7500-10.0000 7.5000-13.0000 Stop Rates 2017 182 Range of Bids Stop Rates 364 Range of Bids Stop Rates 14.0000 16.5000 – 18.0000 13.8999 13.5000 – 19.2200 17.5000 17.0000 – 19.6900 17.2500 17.0000 – 22.0000 18.6850 18.6499 13.7990 15.5000 – 18.8220 13.6900 16.0000 – 18.6642 17.2491 17.0000 – 22.0000 17.1500 17.0000 - 19.4666 18.5400 18.4495 17.2000 17.0000 – 21.0000 17.2000 18.0000 – 21.5000 17.2000 18.0000 – 19.8890 18.4965 18.5598 18.6900 13.5511 16.9000 – 18.0000 13.5980 16.7000 – 18.0000 17.2121 18.0000 – 21.0000 17.4000 17.0000 – 22.0000 18.7411 18.9800 13.6000 16.5000 – 18.0000 13.5000 16.5000 – 18.0000 17.2600 18.0000 – 22.0000 17.1490 18.0000 – 20.0000 18.8150 18.7000 13.4000 17.0000 – 18.0000 13.5000 16.9000 - 18.0000 13.4999 17.0000 - 17.5000 2016 182 Stop Rates Range of Bids 17.1390 18.0000 – 19.0000 17.3000 18.0000 - 19.6099 17.5000 18.0000 - 18.8000 18.6500 18.6899 18.6499 13.6500 13.6000 13.5500 16.0000 – 21.0000 16.9000 – 19.2122 17.0000 – 19.2122 Stop Rates 364 Range of Bids Stop Rates 4.0000 5.0000-9.0000 4.2900 4.0000-10.0000 6.9900 6.0000-10.8300 7.5900 6.5000-14.5000 8.0500 9.3285 4.9500 6.0000-10.0000 4.8500 6.2500-9.5000 7.9780 8.0000-15.0000 7.3000 8.4895-14.0000 9.4900 8.9800 5.1860 6.1250-12.0000 5.7490 6.0000-11.0000 5.9999 7.0000-10.9365 7.5700 7.7000-10.9800 7.9500 8.0000-13.2521 8.3000 8.5000-14.3584 9.0000 9.1500 9.5585 6.1000 7.0000-10.0235 7.8802 6.0100-10.0235 8.6900 8.0000-13.2521 8.9900 8.9900-14.2521 9.4880 10.2485 7.9990 7.0000-11.5000 8.1000 7.5000-13.3048 9.0000 9.0000-14.2521 9.2000 8.0000-17.1521 11.0500 12.4800 7.9900 8.0000-10.6905 8.0000 7.5000-13.0948 9.9948 8.5000-17.9988 9.0500 10.1200-14.5521 9.3500 9.0000-13.8027 12.3000 10.5000-21.9456 11.1000 11.9900 14.9990 66
75. Table 5 .9 Over the Counter Transactions 2017 January February March April May June Total (N'billion) (N'billion) (N'billion) (N'billion) (N'billion) (N'billion) (N'billion) NTBs 5,260.17 6,340.15 6,668.97 3,716.10 3,867.06 5,457.10 31,309.56 FGN Bonds 1,258.26 1,094.30 1,085.75 632.48 497.20 785.38 5,353.37 Total 6,518.43 7,434.45 7,755 4,348.58 4,364 6,242.49 36,662.93 2016 January February March April May June Total (N'billion) (N'billion) (N'billion) (N'billion) (N'billion) (N'billion) (N'billion) NTBs 2,132.93 2,394.28 3,282.99 3,962.62 3,253.29 3,569.23 18,595.33 FGN Bonds 1,187.67 842.10 914.35 886.69 689.45 454.14 4,974.39 Total 3,320.60 3,236.38 4,197.33 4,849.31 3,942.73 4,023.37 23,569.72 67
76. Table 5 . 10 Domestic Debt Charges, 2017 Interest and Sinking Fund Charges January February March April May June Total Nigeria Treasury Bills {i} 91 2.23 2.70 3.24 2.49 2.65 3.15 16.46 {ii} 182 5.33 9.74 11.60 5.80 3.99 7.76 44.21 {iii} 364 14.66 17.82 34.99 24.67 15.61 33.14 140.90 FRN Treasury Bonds 0.00 0.00 2.17 3.13 3.13 3.13 11.55 S/Fund on FRN Treasury Bonds 0.00 0.00 0.00 0.37 0.33 0.29 0.99 9.85% FGN JUL 2017 0.99 0.00 0.00 0.00 0.00 0.00 0.99 9.35% FGN AUG 2017 0.00 0.00 4.63 0.00 0.00 0.00 4.63 10.70% FGN MAY 2018 0.00 0.00 0.00 0.00 15.91 0.00 15.91 15.00% FGN NOV 2028 0.00 0.00 0.00 0.00 5.58 0.00 5.58 12.49% FGN MAY 2029 0.00 0.00 0.00 0.00 9.28 0.00 9.28 7.00% FGN OCT 2019 0.00 0.00 0.00 8.16 0.00 0.00 8.16 8.50% FGN NOV 2029 0.00 0.00 0.00 0.00 8.42 0.00 8.42 10.00% FGN JUL 2030 29.75 0.00 0.00 0.00 0.00 0.00 29.75 16.39% FGN JAN 2022 49.90 0.00 0.00 0.00 0.00 0.00 49.90 15.10% FGN APR 2017 0.00 0.00 0.00 36.11 0.00 0.00 36.11 16.00% FGN JUN 2019 0.00 0.00 0.00 0.00 0.00 28.03 28.03 14.20% FGN MAR 2024 0.00 0.00 50.62 0.00 0.00 0.00 50.62 12.1493% FGN JUL 2034 24.16 0.00 0.00 0.00 0.00 0.00 24.16 15.54% FGN FEB 2020 0.00 47.41 0.00 0.00 0.00 0.00 47.41 12.00% FGN MAR 2025 0.00 0.00 15.66 0.00 0.00 0.00 15.66 9.00% FGN MAY 2025 0.00 0.00 0.00 0.00 8.47 0.00 8.47 9.00% FGN AUG 2030 0.00 4.46 0.00 0.00 0.00 0.00 4.46 12.50% FGN JAN 2026 17.05 0.00 0.00 0.00 0.00 0.00 17.05 6.00% FGN FEB 2041 0.00 12.15 0.00 0.00 0.00 0.00 12.15 6.00% FGN FEB 2046 0.00 12.15 0.00 0.00 0.00 0.00 12.15 12.40% FGN MAR 2036 0.00 0.00 41.02 0.00 0.00 0.00 41.02 6.00% FGN APR 2046 0.00 0.00 0.00 6.71 0.00 0.00 6.71 14.50% FGN JUL 2021 36.58 0.00 0.00 0.00 0.00 0.00 36.58 16.2884% FGN MAR 2027 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16.2499% FGN APR 2037 0.00 0.00 0.00 0.00 0.00 0.00 0.00 COUPON PAID ON ALL FGNSB 0.00 0.00 0.00 0.00 0.00 0.07 0.07 COUPON PAID ON ALL SPECIAL FGN BOND 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 180.64 106.43 163.92 87.44 73.38 75.56 687.37 Cumulative Total 180.64 287.07 450.99 538.43 611.81 687.37 68
77. Table 5 . 11 Domestic Debt Charges, 2016 Interest and Sinking Fund Charges January February March April May June Total 2016 Nigeria Treasury Bills {i} 91 1.38 1.02 1.45 0.88 0.86 1.32 6.92 {ii} 182 4.02 3.86 5.68 3.75 1.64 2.43 21.39 {iii} 364 29.98 28.27 57.02 30.06 18.01 28.28 191.62 FRN Treasury Bonds 0.00 1.90 3.13 3.13 3.13 3.13 14.40 S/Fund on FRN Treasury Bonds 0.00 0.49 0.43 0.37 0.33 0.29 1.90 3RD FGN BONDS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4TH FGN BONDS 0.99 4.66 0.00 0.00 0.00 0.00 5.65 5TH FGN BONDS 0.00 0.00 0.00 0.00 21.57 0.00 21.57 6TH FGN BONDS 0.00 0.00 0.00 8.19 17.78 0.00 25.98 7TH FGN BONDS 29.81 0.00 0.00 0.00 0.00 0.00 29.81 8TH FGN BONDS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9TH FGN BONDS 49.99 0.00 0.00 36.29 0.00 28.11 114.38 10TH FGN BONDS 0.00 38.22 0.00 0.00 0.00 0.00 38.22 11TH FGN BONDS 24.22 0.00 50.92 0.00 0.00 0.00 75.14 12TH FGN BONDS 0.00 46.11 15.76 0.00 8.51 0.00 70.38 13TH FGN BONDS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 140.39 124.54 134.39 82.67 71.82 63.55 617.36 Cumulative Total 140.39 264.93 399.32 481.99 553.81 617.36 69
78. Table 5 . 12 FGN Savings Bonds Reopening Bond Tranche s Issue Date Te nor Al l otme nt (N'Bi l l i on) C oupon Rate Bi ds Succe ssful Maturi ty Date March 13 -17, 2017 13.01% FGNSB MAR 2019 22/03/2017 2 Year 2.07 Sub-Total 13.010 2575 22/03/2019 2.07 Apri l 3-7, 2017 12.794% FGNSB APR 2019 12/4/2017 2 Year 0.42 12.794 841 12/4/2019 13.794% FGNSB APR 2020 12/4/2017 3 Year 0.87 13.794 957 12/4/2020 Sub-Total 1.29 May 8-12,2017 13.189% FGNSB MAY 2019 17/05/2017 2 Year 0.31 13.189 581 17/05/2019 14.189% FGNSB MAY 2020 17/05/2017 3 Year 0.48 14.189 652 17/05/2020 Sub-Total 0.79 June 5-9, 2017 13.189% FGNSB JUNE 2019 14/6/2017 2 Year 0.27 13.189 425 14/6/2019 14.189% FGNSB JUNE 2020 14/6/2017 3 Year 0.34 14.189 496 14/6/2020 Sub-Total 0.61 Grand Total s 4.75 2016 12.50% FGN JAN 2026 10 Year 40.00 14.4000 71 22/01/2026 12.40% FGN MAR 2036 20 Year 50.00 14.9800 92 18/03/2036 Sub-Total 90.00 Jul y 13, 2016 14.50% FGN JUL 2021 5 Year 30.00 14.5000 96 15/07/2021 12.50% FGN JAN 2026 10 Year 35.00 14.9000 52 22/01/2026 12.40% FGN MAR 2036 20 Year 55.00 14.9830 84 18/03/2036 Sub-Total 120.00 August 17, 2016 14.50% FGN JUL 2021 5 Year 40.00 15.0800 79 15/07/2021 12.50% FGN JAN 2026 10 Year 30.00 15.2848 44 22/01/2026 12.40% FGN MAR 2036 20 Year 40.00 15.5300 62 18/03/2036 Sub-Total 110.00 Se pte mbe r 14, 2016 14.50% FGN JUL 2021 5 Year 15.00 15.1430 35 15/07/2021 12.50% FGN JAN 2026 10 Year 30.00 15.5357 46 22/01/2026 12.40% FGN MAR 2036 20 Year 60.00 15.5974 97 18/03/2036 Sub-Total 105.00 O ctobe r 12, 2016 14.50% FGN JUL 2021 5 Year 10.00 15.2990 45 15/07/2021 12.50% FGN JAN 2026 10 Year 45.00 15.4771 59 22/01/2026 12.40% FGN MAR 2036 20 Year 40.00 15.4880 53 18/03/2036 Sub-Total 95.00 Nove mbe r 16, 2016 14.50% FGN JUL 2021 5 Year 5.00 15.4888 21 15/07/2021 12.50% FGN JAN 2026 10 Year 14.00 15.9800 30 22/01/2026 12.40% FGN MAR 2036 20 Year 20.00 15.9499 46 18/03/2036 Sub-Total 39.00 De ce mbe r 14, 2016 14.50% FGN JUL 2021 5 Year 3.20 15.9900 20 15/07/2021 12.50% FGN JAN 2026 10 Year 25.00 16.2400 33 22/01/2026 12.40% FGN MAR 2036 20 Year 41.00 16.4348 49 18/03/2036 Sub-Total 69.20 Grand Total s 628.20 70