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Inflation Rate Decline Affects FG Bonds

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13 years ago

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Despite the resurgence of activities in the secondary market triggered by the drop in inflation rate for February released recently by the National Bureau of Statistics (NBS), the expected yield on the FGN Bonds was on the downside last week according to market reports.

Investors that invested in the market earlier in March in anticipation of the surge in inflation rates in February were disappointed as there was decline in most of the liquid bonds. Market analysts say the decline was due to the fact that inflation erodes the power of bond’s future cashflows.

The 7th series bond, for instance, depreciated to 15.25 per cent last Friday as against the 15.46 per cent it opened the week even as the yields on the 5th series 2 bond dropped to 15.19 per cent on Friday from 15.36 per cent that it opened the week.

Also, the yields on the 9th series decreased to 15.41 percent on the same day compared with the 15.44 per cent that it opened the week under review.

In volume terms, activities in the bond market was driven by the monthly auction which took place on Wednesday, 28 March during which two bonds were offered. They were the 7.00 October 23, 2019 (N20 billion ) and 16.39 January 27, 2022 (30 billion). They were re-opened at Marginal rates of 15.30 percent and 15.41 percent while their subscription levels 216.50 per cent and 127.00 percent respectively.

Also, there was an additional (N50 billion of 16.39 January 27,2022 allotted on a non-competitive basis. The marginal rates during auction was at a lower ebb against expectation as yields in the market dipped across several short-to-medium term maturities, the highest being the 12 month treasures that dropped 67 basis points according to market reports.

Transactions over-the-counter Bond Market recorded a total of 116 million units valued at N101.6 billion in 1,029 deals last week up from a total of 91.23 million units in 875 transactions in the week which ended March 22, 2012.

Specifically, the most traded bond which measured by volume was the 16.39 percent  FGN January 2022 (9th FGN bond 2022 series 1) with a recorded volume of 23.25 million valued sold at N24.8 billion 311 transactions.

The 10.50 percent FGN March 2014 (eight FGN Bond 2014 series 1) followed with a traded volume of 22.56 million units at the value of N20.9 billion exchanged in 220 deals.

According to the Nigerian Stock Market report there was no transaction through the Stock Market in the federal government development stocks, State Government Bonds and Industrial Loans/Preference Stocks Sectors. The Equities sector of the market recorded a total transaction of 1.443 billion units of shares valued at N11.53 billion traded in 18,849 deals compared with a total of 1.212 billion units of shares traded at N15.7 billion exchanged in 17,979 deals the previous week.

The financial service sector the report said, accounted for 1.13 billion units of shares at the value of N7.03 billion recorded in 10,896 deals while the consumer Goods Sector followed with 74.34 million shares valued at N2.9 billion traded in 3,324 deals.

On the price movement chart, the NSE All-share Index shed 2.6 percent to close at 20,652.47 basis points while the market capitalisation of listed equities finished lower at N6.55 trillion.

The NSE-30 Index dipped by 3.5 per cent to close at 938.84 points. Only one out of the four sectorial indices appreciated during the week under review.

The NSE-Insurance Index appreciated by 3.4 per cent to end the week at 124.28 points even as the NSE-Consumer Goods Index dropped by 2.23 per cent to close at 1,708.04 points.

The NSE-Banking Index nose dived by 6.6 percent to finish at 283.04 points.

In the quarterly analysis of the nation’s stock market, the market dipped by 0.38 per cent for the first quarter as the index fell from 20,730.63 to close at 20,652.47 points while the market capitalisation of listed equities added N16 billion to close higher at N6.549 trillion.

 

Vivian-Peace Nwinaene

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NIMASA Commits To Creating Enabling Environment For Maritime Business 

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6 days ago

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March 5, 2025

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The Nigerian Maritime Administration and Safety Agency (NIMASA) has affirmed that it is taking strategic steps to enhance local participation and encourage investment in the maritime sector under the supervision of the Ministry of Marine and Blue Economy.
The Director General of NIMASA, Dr. Dayo Mobereola, who disclosed this recently while receiving the Executive Members of the Nigerian Merchant Navy Officers and Water Transport Senior Staff Association, reaffirmed the Agency’s  commitment to fostering a level playing field and creating an enabling environment for businesses in Nigeria’s maritime sector.
Dr. Mobereola revealed that NIMASA is deepening its collaboration with the Nigerian Content Development and Monitoring Board (NCDMB) to explore policies that will boost indigenous involvement and strengthen Nigeria’s maritime sector.
“The Honourable Minister of Marine and Blue Economy is committed to encouraging indigenous players to invest more in Nigeria’s maritime industry. Issues such as national carriers and trade terms remain top priorities under this administration.
“Our focus is to create an enabling environment where private investors can thrive. In this regard, we have initiated discussions with the NCDMB and NNPC Limited to address these critical matters”, he stated.
He said NIMASA remains committed to fostering strategic partnerships that will enhance local investment, create jobs, and drive sustainable growth in the maritime sector.
In response, Comrade John Aleakhue Okpono, Secretary General of the Merchant Navy Officers and Water Transport Senior Staff Association, emphasized the need for closer collaboration between NIMASA and the Merchant Navy.
He also urged the Agency to review waiver clauses to ensure more opportunities for Nigerian seafarers.
Stories by Nkpemenyie Mcdominic, Lagos
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FG Inaugurates Special Committee Against Boat Accident 

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6 days ago

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March 5, 2025

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Towards enhancing safety on Nigeria’s inland waterways, the Federal Government, through the Minister of Marine and Blue Economy, Adegboyega Oyetola, has inaugurated a Special Committee on the Prevention of Boat Mishaps in Nigeria.
According to a statement on by the spokesman, National Inland Waterways Authority (NIWA), Suleiman Makama, the event, which was held at the Ministry’s Conference Room in Abuja, confirmed crucial steps taken to address the recurring challenges of boat accidents across the country.
In his address, the Honourable Minister emphasized the urgent need to stem the tide of tragic boat mishaps, which have resulted in significant loss of lives and properties.
He described the country’s waterways as vital to commerce, transportation, and livelihoods, stressing that their safety and efficiency are paramount to the development of Nigeria’s blue economy.
He noted that the establishment of this committee aligns with the 2024 International World Maritime Day theme, “Navigating the Future: Safety First”.
“The task before us is daunting, but with unwavering commitment, we can eliminate boat mishaps and ensure that our waterways remain safe, navigable, and prosperous for generations to come”, Oyetola stated.
The committee comprises key stakeholders, including state government representatives, the Association of Boat Operators in Nigeria, marine safety experts, and academics.
It will be chaired by the Managing Director of the National Inland Waterways Authority (NIWA), Mr. Bola Oyebamiji, while Mr. Adams Offie, Deputy Director of Inland Waterways at the Ministry, will serve as Secretary.
The committee is tasked with conducting an in-depth review of commercial boat operations in Nigeria, identifying the root causes of boat mishaps, and proposing sustainable solutions.
In his acceptance speech on behalf of the committee, Oyebamiji assured the Minister on the dedication of members to deliver on the assignment.
He emphasized that safety on Nigeria’s inland waterways is non-negotiable, adding that NIWA, under the leadership of the Honourable Minister, has been refocused to uphold its mandate without compromise.
Acknowledging the Honourable Minister of Marine and Blue Economy for his proactive leadership, Oyebamiji noted that the establishment of the committee represents a critical step in addressing the persistent safety challenges in inland water transport.
“This is another solution-driven initiative aimed at eliminating boat mishaps on our waterways. I assure you that the confidence reposed in this committee will not be misplaced.
“At NIWA, this is an opportunity for us to intensify our efforts in reducing marine accidents to the barest minimum. On behalf of my fellow committee members, we pledge to work diligently and with utmost focus on the assigned terms of reference.
“Safety on our inland waterways is non-negotiable. NIWA has been refocused to ensure the highest safety standards, and this committee will work diligently to address the causes of boat mishaps and find lasting solutions,” Oyebamiji said.
The committee has been tasked with evaluating the root causes of boat accidents and recommending lasting solutions to enhance safety and operational standards.
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LASG Arrests Illegal Dredgers  … Issues Stop Work Order

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6 days ago

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March 5, 2025

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The Lagos State Government, through the Ministry of Waterfront Infrastructure Development, has launched a massive clampdown on illegal dredgers operating in the State, ordering them to stop work immediately.
This exercise, which was carried out by the officials of the Ministry of Waterfront Infrastructure Development, is aimed at curbing environmental degradation and promoting sustainable development across the waterfront schemes located across the coastal regions of the metropolis.
According to a statement, the enforcement operation, led by the Commissioner for Waterfront Infrastructure Development, Hon. Ekundayo Alebiosu, alongside members of his team, raided several illegal dredging sites which were subsequently shut down by the officials of the Ministry.
Some suspected dredging operators were arrested and a stop-work order was served on erring dredgers for non-compliance with laid-down regulations of the State Government.
Alebiosu warned the operators that failure to comply with extant laws guiding dredging activities could have dire effects and will result in severe penalties, including total closure of the sites.
Reacting to the claim that Dredgers are the major cause of environmental degradation in the state, including erosion and flooding, the Commissioner emphasised the need for dredging activities to be conducted lawfully to preserve roads, public infrastructure, and wetlands.
He explained that the State Government has vowed to streamline the activities of dredgers in the state to meet acceptable international standards.
“The Lagos State Government’s clampdown on illegal dredgers is a significant step towards protecting the environment and promoting sustainable development in the state.
“We will continue to carry out surveillance and raids across the coastal areas to ensure that the activities of a few don’t impact the lives of law-abiding citizens negatively”, Alebiosu stated.
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