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<p>Traders at UBA expect continued bearish sentiments in the bonds secondary market to linger for the rest of this month. Meanwhile, investors are taking position ahead of next week’s 211 billion naira treasury bills auction. Chuka Nwachukwu, Head of ALM &#038; Balance Sheet Management at UBA joins CNBC Africa for more market updates.</p>


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UBA: Bond market to remain bearish through November


<p>ABUJA, May 24 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank on Tuesday raised the benchmark interest rate by 150 basis points to 13%, its first hike in more than two years, to combat rising inflation, sending markets tumbling.</p>



<p>The move surprised analysts and traders who expected the Monetary Policy Committee (MPC) to keep the rate on hold.</p>



<p>But&nbsp;Governor Godwin Emefiele told a news briefing&nbsp;that&nbsp;the rate hike was necessary to tame inflation, which quickened to 16.82% in April, its highest in eight months, amid a fragile economic recovery.</p>



<p>Six members of the MPC voted to increase the main lending rate by 150 basis points, four of them by 100 basis points and one by 50 basis points.</p>



<p>It was the biggest rate hike since&nbsp;July&nbsp;2016 when the central bank increased rates by 200 basis points.</p>



<p>&#8220;(MPC members) felt that tightening will help rein in inflation before it assumes a galloping trend,&#8221; Emefiele said.</p>



<p>&#8220;The committee decided to raise monetary policy rate for the first time in two and a half years to rein in the current rise in inflation as members were of the view that the continued uptrend may adversely impact growth.&#8221;</p>



<p>Food and energy prices are rising in Africa&#8217;s most populous country after Russia&#8217;s invasion of Ukraine pushed up oil prices and disrupted supplies of commodities like corn and wheat.</p>



<p>The rate hike sent the yield on Nigeria&#8217;s longest 30-year bond soaring 75 basis points to 13.8%.&nbsp;Overnight lending rates climbed 200 basis points to 14% while the main share index&nbsp;.NGSEINDEX&nbsp;fell to a two-week low.</p>



<p>Razia Khan, chief economist for Africa and the Middle East at Standard Chartered, said the rate increase raised questions about whether this could be a precursor to a change in the central bank&#8217;s policy on foreign exchange.</p>



<p>&#8220;This could be the most important signal yet of eventual FX policy intentions &#8230; but we will not really know until we see whether and how much market rates reprice,&#8221; she said.</p>



<p>The naira recovered from a record low of 609 on the black market&nbsp;NGNP=&nbsp;to 606 naira against the dollar after the hike but it weakened to 443.50 naira on the official market&nbsp;NGN=&nbsp;from 413.80 naira and later traded at 417 naira.</p>



<p>The central bank governor, who ended his presidential ambition on Monday, said the economy was expected to expand 3.25% this year, lower than the federal government&#8217;s projection of 4.2% growth.</p>



<p>(Writing and additional reporting by MacDonald Dzirutwe and Estelle Shirbon; Editing by Catherine Evans, Mark Potter and Mark Porter)</p>


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Nigeria’s central bank surprises with rate hike, cites inflation

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<p>The Central Bank of Nigeria has instructed all Bureau De Change applicants with pending licenses to request for a refund of the 35 million naira capital deposit and the one million naira license fee payment immediately. This follows the decision of the apex bank to suspend processing license for BDC operators. Sam Chidoka, the CEO at Kairos Capital joins CNBC Africa for more.</p>


CBN to refund capital deposits & licensing fees of Bureau De Change operators

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<p>The Central Bank of Nigeria has announced the discontinuation of foreign exchange sales to Bureau De Change operators stressing that the dealers have been greedy and recalcitrant at th expense of ordinary Nigerians. Egie Akpata, Director at UCML Capital Limited joins CNBC Africa for more.</p>


Understanding Nigeria’s new Fx policy regime

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<p>The Central Bank of Nigeria plans to begin the pilot phase of the digital currency initiative on the first of October. Tagged &#8220;GIANT&#8221; the digital currency will use the Hyperledger Fabric Blockchain. Hakeem Disu, CEO of KOINWA joins CNBC Africa for more.</p>


Nigeria’s planned digital currency: Who benefits?

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<p>Nigeria will launch the pilot scheme of its digital currency as it marks its 61st year of Independence on the first of October.</p>


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Nigeria to launch digital currency by October 1st

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<p>The Central Bank of Nigeria has issued a Supervisory Framework for Payment Service Bank. According to the Apex Bank the framework provides a set of regulations that are targeted at streamlining the operations of PSBs and , ensuring transparency in their operations. Ade Atobatele,  Technology Entrepreneur joins  CNBC Africa for more.</p>


CBN publishes framework for payment service banks

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<p>Governor of the Central Bank of Nigeria, Godwin Emefiele hinted of plans to launch a digital currency at the last MPC meeting, but how ready is Nigeria for this? Buchi Okoro, CEO of Quidax joins CNBC Africa for more.</p>


Is Nigeria ready for a digital currency?

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<p>The Central Bank of Nigeria say they have not devalued the naira, but rather are running a managed float regime that benchmarks all FX transactions against the NAFEX rate.</p>


CBN adopts NAFEX rate as Nigeria’s official exchange rate

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<p>Nigeria’s Presidential Economic Advisory Council has urged President Muhammadu Buhari to adopt a pricing regime to reflect the cost of petrol and remove subsidy on the commodity. Meanwhile, data from the Central Bank of Nigeria shows that Nigeria&#8217;s trade deficit rose to $2.5 billion as at January this year. As we await a flurry of economic data this month, Tilewa Adebajo, CEO of CFG Advisory joins CNBC Africa for more.</p>


Nigeria’s Economic Advisory Council calls for petrol subsidy removal

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<p>The Central Bank of Nigeria says it will continue the Naira 4 Dollar Scheme until further notice. Meanwhile, Nigeria’s first quarter GDP report is expected on the 24th of this month according to the publishing calendar of the National Bureau of Statistics. So, can Nigeria sustain its growth momentum after exiting recession in the fourth quarter of 2020? Lukman Otunuga, Senior Research Analyst at FXTM Market joins CNBC Africa for more.</p>


CBN to continue ‘Naira 4 Dollar’ scheme until further notice

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<p>Tilewa Adebajo, CEO of CFG Advisory and Kayode Akindele, Partner at TIA Capital join CNBC Africa for more.</p>


CBN appoints new board for FBN Holdings

CBN appoints new board for FBN Holdings, restores ousted CEO Sola Adeduntan

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<p>Nigeria is working on a National Dairy policy and consultations with stakeholders have begun. Speaking on the need for the policy, Minister of Agriculture and Rural Development says it will reduce Nigeria’s dairy imports which accounts for 60 per cent of dairy products consumed in Nigeria. Meanwhile, the Central Bank of Nigeria says the policy will save about $1.8 billion annually. Muhammadu Abubakar, National President of Commercial Dairy Ranchers Association of Nigeria, CODARAN joins CNBC Africa for more.</p>


Nigeria looks to boost dairy value chain with national policy

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<p>Governor of the Central Bank of Nigeria, Godwin Emefiele says the Naira depreciated at the official window and now hovers around 410 naira per dollar.</p>


Naira depreciates to N410/$ at official window

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<p>The Central Bank of Nigeria says its recent directive to regulated financial institutions to desist from dealing in cryptocurrencies and identify people and organisations transacting in cryptocurrency exchanges and close their accounts.</p>


Nigeria’s Central Bank reiterates position on closure of crypto accounts

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<p>Governor of the Central Bank of Nigeria Godwin Emefiele, says plans are on-going to commence operations of a commodities exchange within the next 90 days once the necessary approvals are obtained. Joining CNBC Africa to discuss the implication of this and for an outlook on Nigeria’s Agric sector this quarter is Kola Masha, Managing Director of Babban Gona.</p>


Nigeria’s Central Bank plans to set up commodities exchange

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<p>Fitch Ratings says sustained use of direct monetary financing from the Nigerian government&#8217;s Ways and Means Facility with the Central Bank of Nigeria could raise risks to macroeconomic stability and highlights weaknesses in Nigeria&#8217;s public finance management. Jan Friederich, Senior Director at Fitch Ratings joins CNBC Africa for more.</p>


Central bank of Nigeria

UBA: Bond market to remain bearish through November

Nigeria’s central bank surprises with rate hike, cites inflation

CBN to refund capital deposits & licensing fees of Bureau De Change operators

Understanding Nigeria’s new Fx policy regime

Nigeria’s planned digital currency: Who benefits?

Nigeria to launch digital currency by October 1st

CBN publishes framework for payment service banks

Is Nigeria ready for a digital currency?

CBN adopts NAFEX rate as Nigeria’s official exchange rate

Nigeria’s Economic Advisory Council calls for petrol subsidy removal

CBN to continue ‘Naira 4 Dollar’ scheme until further notice

CBN appoints new board for FBN Holdings, restores ousted CEO Sola Adeduntan

Nigeria looks to boost dairy value chain with national policy

Naira depreciates to N410/$ at official window

Nigeria’s Central Bank reiterates position on closure of crypto accounts

Nigeria’s Central Bank plans to set up commodities exchange

Fitch flags macro-stability risks on Nigeria’s deficit monetisation

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Central bank of Nigeria

UBA: Bond market to remain bearish through November

Nigeria’s central bank surprises with rate hike, cites inflation

CBN to refund capital deposits & licensing fees of Bureau De Change operators

Understanding Nigeria’s new Fx policy regime

Nigeria’s planned digital currency: Who benefits?

Nigeria to launch digital currency by October 1st

CBN publishes framework for payment service banks

Is Nigeria ready for a digital currency?

CBN adopts NAFEX rate as Nigeria’s official exchange rate

Nigeria’s Economic Advisory Council calls for petrol subsidy removal

CBN to continue ‘Naira 4 Dollar’ scheme until further notice

CBN appoints new board for FBN Holdings, restores ousted CEO Sola Adeduntan

Nigeria looks to boost dairy value chain with national policy

Naira depreciates to N410/$ at official window

Nigeria’s Central Bank reiterates position on closure of crypto accounts

Nigeria’s Central Bank plans to set up commodities exchange

Fitch flags macro-stability risks on Nigeria’s deficit monetisation

News Tips

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