Money markets

The overnight and OBB rates dropped further to 11.33% and 10.17% from 13.42% and 12.17% respectively as the system remains fairly liquid. We expect rates to inch up today as liquidity leaves the system via debit for the T-bill auction.

Interbank spot: USD/NGN

Activity in the NIFEX market has remained muted, with the CBN being the major supplier of liquidity. NAFEX trade volumes slid to US$86.99m. The exchange rate has remained stable, spurring interest in the Nigerian fixed income and equity markets. We expect the pair to continue to trade in the 360-362 range in the short term.

Offer rates 14-Nov 15-Nov Change
NIFEX 329.62 329.75 0.13
NAFEX 359.84 360.08 0.17

Fixed Income

The fixed income market saw demand on most maturities yesterday, following similar trading the previous day. Short-term yields trended south on the day, with the highest move coming on the 182-day region as secondary market yields remain relatively attractive. Buying interest persisted at the long end of the curve, with some profit-taking on the Jul-21s and Jan-2022s. The CBN auctioned NGN119.938bn at yesterday’s T-bill auction, split as follows: 91-day (NGN6.0bn), 182-day (NGN6.0bn) and 1-year (NGN107.9bn).

Tenor 14-Nov 15-Nov Change (bp)
91-day 16.39 16.36  (0.03)
182-day 19.09 18.62  (0.47)
364-day 16.00 15.99   (0.01)
Jun-19 15.03 14.95 (0.08)
Feb-20 14.85 14.79  (0.06)
Jul-21 14.97 15.05 0.08
Jan-22 14.67 14.71 0.04
Mar-24 14.85 14.80 (0.05)
Jan-26 15.03 15.00 (0.03)
Mar-27 15.05 15.00 (0.05)
Jul-34 14.81 14.74 (0.07)
Mar-36 14.78 14.74 (0.04)
Apr-37 14.81 14.74 (0.07)
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Auction results are given below:

  • 91-day: 13.00%
  •  182-day: 15.25%
  • 364-day: 15.60%

A slowdown in the world’s biggest consumer of most commodities is reviving fears over a glut of raw materials. The Bloomberg Commodity Index extended declines after sliding the most in six months on Tuesday. Futures in China also plunged in overnight trading. The concern is increasing that demand will weaken as the world’s second-biggest economy dials back amid a pledge by President Xi Jinping to focus on the quality of expansion rather than the pace of it. Nickel, iron ore and oil all dropped, and shares of resources companies slipped.

  Current rate (%)   Current
LIBOR 30-day 1.25028 Brent Crude US$ 63.06
NIBOR 30-day 17.7863 NAFEX (Offer rate) 361.50
NIBOR 90-day 20.1693 Reserves (as at 06 Nov 2017) US$33.31bn

RMB Nigeria indicative term deposit rates1

NGN CALL 1-m 2-m 3-m 6-m 12-m
50,000,000 5.00% 11.50% 13.00% 14.00% 15.00% 16.00%
USD1 CALL 1-m 2-m 3-m 6-m 12-m
5,000,000 0.50% 1.20% 1.30% 1.40% 1.50% 1.80%

Note: 1. Indicative rates are gross of withholding tax (10%)
RMB Nigeria Note: The deposit placement is subject to the completion of onboarding forms (KYC) for RMB Nigeria, a compliance requirement from the Central Bank of Nigeria. Currencies available on request: ZAR/EUR/GBP.
International rating – RMB Nigeria is a wholly owned subsidiary of the FirstRand Bank [BB+ /Baa3] S&P and Moody’s respectively