The Week Ahead – Businessday NG

October 17, 2021 Mary

FG sets deadline for civil servants to take covid-19 vaccine

Civil servants should endeavour to take their covid-19 jabs in the coming week as the Federal Government has announced December 1, 2021, as the deadline for civil servants to take their Covid-19 vaccine.

This is as the Nigerian government has also revealed that it has removed South Africa, Brazil and Turkey from the list of countries where travellers have been restricted from coming into the country due to the Covid-19 pandemic.

This disclosure was made by the Chairman of the Presidential Steering Committee (PSC) on Covid-19, Boss Mustapha, who announced this during a press briefing about the activities of the committee on Wednesday in Abuja.

Mustapha warned Nigerians to be vigilant during the forthcoming 2 major religious festivities, Salah and Christmas, noting that there would be increased passenger traffic in and out of the country coupled with the possibility of large gatherings.

As you are aware, the UK has eased restrictions on fully vaccinated travellers from Nigeria to the UK with effect from 11th October. Nigeria welcomes this development and assures that the PSC shall continue to review Nigeria’s protocols based on global developments, science, and national experience. A revised protocol will be issued in the next 24 hours,” Mustapha said.

Fully vaccinated visitors to Nigeria to do PCR tests on arrival from the week ahead

The Nigerian Government has disclosed that all visitors entering Nigeria, including the partially vaccinated and unvaccinated are required to do COVID-19 PCR tests on days 2 and 7 after arrival, while fully vaccinated people, will not be required to undergo 7 days isolation, but just a COVID test after 2 days.

This was disclosed by the Chairman, Presidential Steering Committee (PSC) on COVID-19 and Secretary to the Government of the Federation, Mr Boss Mustapha, in a statement on Friday.

Unvaccinated and partially vaccinated in-bound passengers will also be required to observe a mandatory 7-day self-isolation in addition to a COVID-19 PCR test on days 2 and 7 after arrival.

“Fully vaccinated in-bound passengers will not be required to observe the mandatory 7-days self-isolation but will be required to do a COVID-19 PCR test on day 2 of arrival.

“Persons arriving on business trips or on official duty staying less than seven days in Nigeria must be fully vaccinated, produce negative COVID-19 PCR result 72 hours before boarding, and conduct a PCR test on day 2 of their arrival,” Mustapha said.

DMO set to auction N150 billion FGN bonds for subscription in the week ahead

The Debt Management Office (DMO) on behalf of the Federal government has offered for subscription N150 billion worth of FGN bonds by auction.

This is according to a disclosure published on the website of the agency. The bonds were listed in three tranches, each with N50 billion.

N50 billion – 12.50% FGN Jan 2026 (10-yr re-opening)

N50 billion – 16.2499% FGN Apr 2037 (20-yr re-opening)

N50 billion – 12.98% FGN Mar 2050 (30-yr re-opening)

Auction Date – October 20, 2021

Issuer: Federal Government of Nigeria (“FGN”)

Units of Sale: N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

Interest rate: For Re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus accrued interest from the original issue date.

Interest payment: Payable semi-annually.

Redemption: Bullet repayment on the maturity date.

Lagos State Police warns #ENDSARS protesters to avoid one-year anniversary celebration

The Lagos State Police Command has warned the organisers of the planned protest to celebrate the one year anniversary of the #EndSARS protest to desist from such a plan in the week ahead.

This was disclosed by the Commissioner of Police in Lagos, CP Hakeem Odumosu, via a statement issued and signed by the State Police Command’s Spokesperson, CSP Adekunle Ajisebutu on Monday.

The Police boss stated that Nigerians can not afford to relive the unfortunate experience of the protest which led to “needless loss of lives and wanton destruction of public and private property.”

“In view of the volatility of the present situations in the country and the breakdown of law and order which the planned protest might cause, the Lagos State Police Command sternly warns against any form of protest today.

“The command wishes to use this medium to warn the youth, groups or associations planning such protest to jettison the idea forthwith,” Ajisebutu said.

NBS economy data release calendar for the week ahead

The NBS release calendar for the coming week indicates the following:

Monday 18th October, 2021: Automative Gas Oil (DIESEL) Price watch September 2021 & Premium Motor Spirit (PETROL) Price watch September 2021.

Tuesday 19th October 2021: National Household Kerosene Watch, September 2021, Liquefied Petroleum Gas (COOKING GAS) Price watch September 2021, Selected Food Prices September 2021

Wednesday 20th October 2021: Transport Fare watch September 2021.

Thursday 21st October 2021: Federal Account Allocation Account

Oil market outlook

Oil prices climbed on Monday, extending multiweek gains as an energy crisis gripping major economies shows no sign of easing amid a pick-up in economic activity and restrained supplies from major producers.

The surge in China’s thermal coal prices in recent days has been supported by increase in demand for coal, flooding in key coal-producing province, and cold weather, just as the government expressed efforts to liberalize the power prices.

The Secretary-General of OPEC, Mohammed Sanusi Barkindo, noted that about $9.2 trillion investment in the upstream, $1.5 trillion investment in the downstream, and $1.1 trillion investment in the midstream segment of the petroleum industry would be required between now and 2045 to avoid energy crisis.

The OPEC Monthly Oil Market report for October shows that world oil demand is estimated to increase by 5.8m b/d in 2021, revised down from 5.96m b/d in the previous month’s assessment. The world is expected to consume 96.6m b/d of petroleum products this year and an average of 100.8m b/d in 2022.

Oil prices climbed on Friday, heading for gains of more than 2% for the week, on increasing signs of robust demand and tighter supplies over the next few months as rocketing gas and coal prices stoke a switch to oil products. Brent had a weekly growth of 2.34%.

In the coming week, oil prices are expected to rise amid forecasts of a supply deficit over the next few months, spurred by rising demand due to the easing of travel restrictions.

Money market

Money market rates which resumed its single-digit trend at the beginning of last week supported by inflows was not maintained throughout the week. Primary market auction settlement reduced system liquidity causing rates to edge up at the close of the week.

At the close of the session on Friday, open buy-back (OBB) and overnight rates (O/N) respectively was 19.5% and 20.00% respectively indicating a W-o-W rise of +39.29% and +37.93% for OBB and O/N.

Funding rates are expected to trade in double digits trend in the coming week in the absence of any inflow.

Treasury bills market

The treasury bills market started the previous week on a quiet note, with minimal volumes traded across board, and maintained a bullish trend for a major part of trading in the week.

At the close of the market on Friday, average benchmark yields for T-bills closed at 5.20%, OMO bills at 6.47%, and CBN’s special bills closed at 6.03%. Posting a W-o-W fall of -1.30% for the T-bills, while OMO bills was flat, average benchmark yields for CBN’s special bills fell W-o-W by -0.17%.

The DMO sold N187.24 billion worth of notes against N121.66 billion offered at its NTB auction last week. The 91-day, 182-day & 364-day notes were allotted at 2.50%, 3.50%, and 7.25%, respectively. Compared to the previous auction, rates on the 91-day & 182-day were unchanged while the 364-day paper fell by 25bps.

We expect activity next week to be dictated by the market liquidity situation.

FGN BOND and EUROBOND market

The bond market was largely quiet last week, safe for some interest across selected maturities. At the close of trading on Friday, the market was mixed, with selling pressure at the short end of the curve while the mid-date maturities saw slight interest.

The overall average benchmark yields closed at 8.25% at the close of trading indicating a W-on-W rise of +1.53%.

The Eurobond market which is largely influenced by the movement of yields of the US Treasuries returned to its bearish path, as inflationary concerns, and the hawkish tilt of the U.S. Feds minutes, this caused yields to advance across board. At the close of trading on Friday average benchmark yield advanced by 1bps to 6.52%.

Market sentiment is expected to be mixed as inflation concerns dampen.

Nigerian capital market

Activity on the local bourse last week was positive as the benchmark index closed positive with +1.39% with some bargain hunting activities and investors taking positions across several stocks. Investors gained N328.98bn, year-to-date return moderated to +2.90%, while the market capitalization settled at N21.62 trillion.

NGX Group announced Successful Listing on NGX of the entire issued and fully paid 1,964,115,918 ordinary shares of 50 kobo each at N16.15 per share were listed by introduction on the Main Board of Nigerian Exchange limited on Friday, 15 October 2021.

The volume and values of shares traded on the exchange last week advanced by +30.24% and +44.12% respectively.

Sectoral performance across sectors tracked was positive last week as the NGX Banking was the highest gainer for the week with +2.64%. NGX Insurance, NGX-IND, NGX Oil and Gas, and NGX Consumer Goods closed positive with +1.60%, +0.98%, +0.64% and +0.47% respectively.

Market breadth for the previous week closed positive with 45 gainers led by CHAMPION and FBNH as against 15 losers led by LEARNAFRI and IKEJAHOTEL.

In the coming week, we expect the possibility of bargain hunting as investors look to take advantage of the result season. However, press releases from listed companies and other macroeconomic developments are also likely to impact investors’ decisions.

In addition, we expect investors to monitor the movement of yields in the fixed income market.