Nigerian Senate Passes Oil Overhaul Bill
In a plenary session witnessed by Reuters on Thursday, ‘The Nigerian Senate’ passed a long-awaited oil industry reform bill which will overhaul nearly every aspect of oil and gas production in the West African country. The said Bill had initially been passed by ‘The House of Representatives’. This Bill passage by both chambers is the first step towards the bill being signed into law by President Muhammadu Buhari.
The FGN Bonds market opened quietly to the new month, with scarce offers as market participants continue to strategize ahead of the 15th July-2021 Bond maturity. Trading activity picked up later in the session at the mid and long-ends of the curve. At the mid-end, the saw the 2027s and 2028s papers change hands around the 12.10% range albeit in small trade volumes.
The Treasury bills market resumed on a whimper at the beginning o¬f the month, despite improved supply from the previous day’s primary auction. The newly issued 1-year paper (i.e. 30Jun2022) opened the day with a lot of demand as interested investors looked to cover lost auction bids. However, trades on the paper were sparse as the bid/ask spread refused to close for most of the trading session as the bill remained quoted at 8.85/50 with neither side willing to budge.
Money market rates remained stable for a consecutive session, as the system liquidity opened in positive territory of (c.N25bn+) despite net negative debits from the NTB auction settlements. Local banks camped at the CBN Lending and Repo windows to fund their daily operations, increasing borrowing from the Apex bank by c.N48Bn D/D. OBB and Overnight rates closed unchanged at 11.50% and 12.00%, respectively.
The FX space opened on a sluggish note as traders continued to scramble for funds amidst the poorly supplied FX market. Traded volumes dipped by 62% from the previous day while the Naira appreciated by N0.80k to close at N410.70/$, The bided range amongst banks remained wide between N400/$ and N420.95/$.
At the parallel market, the cash and transfer market remained unchanged for another consecutive session.
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