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FG’s Domestic Debt Rose To N13.4trn H1 2019 ― CBN

Published

5 years ago

October 8, 2019

The Gleamer

FG’s Domestic Debt Rose To N13.4trn H1 2019 ― CBN

…as apex bank makes N21.211bn profit on SLF, rediscounting, repo

Total domestic debt of the Federal Government of Nigeria (FGN) rose to N13.4 trillion by the end of June 2019.

The Central Bank of Nigeria (CBN) Financial Markets Half Year Report noted that the figure was ₦1,261.36 billion or 10.38 per cent higher than the ₦12,151 billion domestic debts position during the corresponding period of 2018.

The debt stock during the review period comprised FGN Bonds worth ₦9.691 trillion or 72.26 per cent, Nigerian Treasury Bills (NTBs) worth ₦2.651 trillion or 19.77 per cent and FRN Treasury Bonds of ₦125.99 billion or 0.94 per cent.

Others included FGN Promissory Notes of ₦707.76 billion or 5.28 per cent, FGN Sukuk worth ₦200.00 billion or 1.49 per cent, FGN Green Bonds worth ₦25.69 billion or 0.19 per cent and FGN Savings Bonds of ₦10.43 billion or 0.08 per cent.

In spite higher debt stock, however, the cost of debt servicing declined by 15.00 per cent to ₦800.73 billion at end-June 2019, compared to ₦941.99 billion in the corresponding period of 2018 due to declining yields in the fixed income market during the review period.

CBN also reported the average daily volume of standing lending facility (SLF) to banks to be ₦95.63 billion in 121 transaction days, of which Intraday Liquidity Facility (ILF) conversion constituted ₦35.50 billion or 37.12 per cent of the total request.

“As a result, the average daily interest income amounted to N66.87 million, totalling N5,372,400,000 during the period under review.”

This contrasted an average daily SLF volume of ₦57.36 billion in 123 transaction days of the first half of 2018 of which ILF conversion constituted ₦45.54 billion or 79.39 per cent of the total request.

Consequently, the average daily interest income was ₦44.40 million.

It explained that the higher patronage at the window in 2019 reflected the impact of the prevailing liquidity conditions in the banking system.

Patronage at the Standing Deposit Facility (SDF) window reflected an average daily amount of ₦67.64 billion for the 121 business days in the first half of 2019, representing a decrease from ₦88.30 billion for the 121 transaction days out of 123 business days in the corresponding period of 2018.

Similarly, the average daily interest payments on the deposits decreased to ₦22.48 million in the review period, from ₦30.43 million in the corresponding period of 2018.

The decreased volume of transactions reflected in the review period was due to the tight liquidity conditions in the banking system.

Patronage at the SDF window was low in 2019 with a daily average of ₦67.64 billion, compared to ₦88.30 billion in the corresponding period of 2018. The reduction in transactions was due to the tight liquidity conditions in the banking system.

According to the report, CBN also re discounted Bills worth ₦54.44 billion with 170 to 352 days to maturity at 13.50 per cent, and in the process, earning an interest totalling ₦6.59 billion.

I addition, total value of repurchase (repo) transactions in the first half of 2019 amounted to ₦611.30 billion, with interest rates ranging from 18.50 to 19.50 per cent from January to March 25, 2019, and 18.00 to 19.00 per cent from March 26 to June 2019, following the downward review of MPR.

“The tenors were for 4- to 90-days and the total interest earned amounted to ₦19.25 billion.”

Tribune

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Nigeria Will Take Good Shape In No Distant Time- Olawande

Published

5 hours ago

September 16, 2024

The Gleamer

Joel Ajayi

The Minister of State for Youth Development, Ayodele Olawande has urged the citizens of the country to be patient with the Administration of President Bola Ahmed Tinubu in transforming the lives of its citizens through various policies and programs of the federal government.

The Minister made this submission while delivering his speech at the Joint Union Negotiating Council’s week of the Federal Ministry of Youth Development branch. This is the first edition since both Ministries of Youth and Sports had been damaged. The JUNC week which was held at Atiku Hall, Office of Head of Civil Service of the Federation in Abuja had its theme: “The working people in a volatile, uncertain, and complex economy”

In the words of the Honourable Minister: “I urge you to be patient with this administration. In no distant time, the country will take good shape and the lives of its citizens will be transformed”.

“President Bola Ahmed Tinubu is not a pauper, he is an acknowledged epitome of wealth, and so it cannot be said of him that he desires to loot the treasury of Nigeria. He has seen money and as a result of this, he is not interested in looting the nation’s treasury”, Olawande explained.

He emphasized that “leadership is all about being committed to serve. If you are a Minister now, tomorrow you will be addressed as a former Minister, likewise a Director because there is no permanent position but the impact that you made while in that office will speak after you”, the Minister reiterated.

Olawande expressed his gratitude to the workers of the Ministry for being supportive of the government policies and programs. He promised that the welfare of the staff would not be compromised, adding that workers deserve remuneration for being hardworking.

Earlier in his address, the Permanent Secretary of the Ministry, Mr. Olubunmi Olusanya admonished the staff of the Ministry to put in their best as “Performance Management System” which replaces APER is the criteria to be used for promotion effective next year. This, according to him is because the Performance Management System (PMS) records the best efforts and input of each staff which will in turn be used to grade such staff.

Olusanya who disclosed that the welfare of the staff is his priority as workers deserve the best for the services rendered. He opined that “the hungry man is angry and as a worker, if you are not treated fairly and properly, it is impossible to get the best out of you. As a result, all staff will be treated properly as motivation to propel the best in you”, he concluded.

The Head of the Civil Service of the Federation, Mrs. Esther Didi Walson-Jack, OON, MNI, in her address, informed that the activity to reinvigorate the Civil Service in a bid to ensure that Civil Servants carry out their duties with much diligence to have efficient and incorruptible civil service is currently on course. She advised workers to wake up and be committed to the service of the nation.

In his closing remarks, Mr. Jerry Akume, the General Secretary of the Union expressed his delight in celebrating this year’s edition of the Union week, while highlighting the achievements of the union so far. These include:

Upward review of staff welfare, prompt payment of repatriation allowances, payment of first 28 days allowance, assistance to the sick, general training of staff, and sending forth/retirement package for retired staff.

He also appealed to the Management of the Ministry, saying that irrespective of the aforementioned achievements, a lot still needs to be done in such areas as procurement of staff buses, upward review of welfare payment for festive periods, consistent general staff training, and procurement of office and work materials.

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