Daily Times Nigeria Monday, December 26, 2016
B3 Money Market
CBN floats N40bn TBs, as interbank rate hits 50% Stories by Motolani Oseni
The Central Bank of Nigeria (CBN) raised N39.72 billion naira ($130.57 million) for the federal government at a treasury bill (TB) sale last week, with yields unchanged on the previous auction, the apex bank said on its website on Friday. This is just as the overnight lending rate rose sharply to around 50 percent on Friday, from an average of 4.5 percent the previous day, after the bank debited commercial lenders’ accounts for special foreign exchange sales, traders said. The CBN sold N13.17 billion of three-month paper at 14 percent,
the same yield as on Dec. 14, and sold N26.55 billion of six-month paper at an also unchanged 17.5 percent. The apex lender on behalf of the federal government periodically issues treasury bills regularly to help banks manage their liquidity, curb rising inflation and provide naira to help the government fund its budget. However, the CBN last week asked banks to submit bids for a “special currency auction” to clear the backlog of matured outstanding dollar obligations for selected sectors of the economy, which include airlines, fuel importers and manufacturing firms. Traders said the central bank
sold “funded forwards of two to five months tenor” dollars to the targeted sectors at an auction during the week and required them to pay for the dollar sale on Friday. The CBN is yet to disclose the amount sold but currency traders said the cost of borrowing among banks climbed because of a scramble for funds among commercial lenders to pay for the foreign exchange purchases. “The market is extremely volatile today as a result of the funding for the special forex auction, and we have seen rates up to around 50 percent and more,” one currency dealer said. Nigeria’s financial market is closed until Wednesday due to
public holidays over the Christmas period. Meanwhile, financial experts Cowry Assets Management Limited in Lagos said there was liquidity pressure which was evident in the increase recorded in the Nigerian Interbank Offered Rate (NIBOR). NIBOR represents the rate at which banks borrow from and lend funds to each other. It is the short-term lending rates of selected banks in the Nigerian interbank market quoted as annualized rates. According to the experts, total money that left the financial system exceeded the total money that came into the system.
Emefiele
“The inflows were offset by outflows from auctioned bills worth N57.66 billion and via Open Market Operations of the Central Bank of Nigeria, through 198 treasury bills worth N10.29billion and 352-day bills worth N7.64billion,” the assets managers said in an emailed note.
GTBank rewards customer with Porsche car
Managing Director/Chief Executive Officer, Nigerian Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim (middle), National Chairman of FICAN, Mr. Babajide Komolafe (left) and Vice President (North) Nigerian Guild of Editors, Mr. Suleiman Gaya (right), during the 2016 FICAN Workshop organized by NDIC in Kaduna ... recently.
Customers besiege cashless ATMs over Christmas … Banks deny illiquidity Commercial bank customers in Lagos and Ogun States over the weekend decried the lack of money in many Automated Teller Machines (ATMs), as they besieged banks to withdraw funds for the Christmas celebrations. Deposit money banks (DMBs) deny allegations of a cash crunch in the system, but many of their customers in Lagos and Ogun States said they could not withdraw money from the ATMs. Business Times observed long queues in most of the Deposit Money Banks (DMBs) ATM points across the two states. Practically all the banks in different parts of Lagos on Friday and Saturday recorded a huge crowd of customers, with most of them waiting to withdraw funds for the long holiday. In Ikeja, Oshodi, and other areas
in the Lagos metropolis, there were long queues of customers lamenting that they have visited several ATMs since morning but could not withdraw their money. Similarly, in Agege, Egbeda, and Iyana Ipaja, also in Lagos, depositors were seen fighting among themselves, with security men attached to the banks finding it difficult to curtail the huge crowd. Findings, however, revealed that some depositors could not withstand the stress and later left, while those that had no alternative waited patiently for hours for their turn and eventually got access to their funds. An official of one of the banks, who would not want his name mentioned because he was not authorized to speak to the press, said: “This is not surprising because this is what we face anytime when there
is an annual celebration or long holiday.” Some of the banks visited were First Bank, Guaranty Trust Bank, Ecobank, and Zenith Bank. Other banks visited were Diamond Bank, Wema Bank, Stanbic IBTC, Sterling Bank, First City Monument Bank and Access Bank across Abule-Egba, Lagos and Sango Ota in Ogun State. At Wema Bank in the Ifo area of Ogun State, a customer, Mr. Faseluka Akinlowo, said he had been waiting under the sun for more than two hours and had been unable to withdraw money due to the long queue. “The bank management is aware that Wema Bank is the only commercial bank in this area and ought to have made adequate provision, especially making funds available in ATMs during this festival season,” Akinlowo bemoaned.
After six months of a promo to reward customers, Guaranty Trust Bank has announced Abdulkareem Buhari, as the winner of its Porsche 911 Giveaway Draw for Platinum Banking Customers. The GTBank Porsche 911 Giveaway is part of the Bank’s Platinum rewards for its Platinum Banking Customers, a niche segment that enjoys premium products and dedicated services such as access to personal banking lounges, fast track banking services, Platinum MasterCards and specialized Credit Facilities as well as higher transaction limits on alternative channels. Abdulkareem, a trader in Kaduna, won the brand new Porsche 911 Carrera after a raffle draw held at the bank’s Head Office. “I am incredibly excited and immensely grateful to GTBank for such an amazing gift,” enthused Abdulkareem as he received the keys to his new Porsche from the CEO and Managing Director of GTBank, Mr. Segun Agbaje. “The GTBank Porsche 911 Giveaway Draw is our special way of expressing our utmost gratitude to our customers for making our suc-
cess possible,” said Agbaje. He further stated that “As a bank that’s committed to creating memorable experiences, we are excited at how happy we have made one of our most loyal customers and we will continue to ensure that our customers get the excellent service and best-in-class financial solutions that they deserve.” GTBank has consistently played a leading role in Africa’s banking industry. The GTBank brand is regarded by industry watchers as one of the best-run financial institutions across its subsidiary countries and serves as a role model within the financial service industry due to its bias for world class corporate governance standards, excellent service quality, and innovation. The novel promo is open to all GTBank customers between the ages of 18-64 years, who have either a current or savings account and maintains an average balance of N3million for three months during the promo period. Customers who maintain such balance qualify for a raffle draw where they stand a chance to win a brand new Porsche sports car 911.