• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

Nigeria: Eurobond fails to lift reserves as more borrowing underway

3 years ago
in Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
69
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Nigeria: Eurobond fails to lift reserves as more borrowing underway

The $1.25bn Eurobond Nigeria issued in March this year failed to shore up the country’s external reserves, which dropped by 2.15 percent year-to-date, even as the federal government plans more external borrowing, BusinessDay findings show.

External reserves dropped to $39.64 billion on April 27, 2022 from $40.15 billion on January 4, 2022, according to data from the Central Bank of Nigeria (CBN).

Lower oil production despite high crude oil prices led to limited foreign currency inflows needed to boost the reserves.

Rising import bill continued to exert pressure on external reserves and this is expected to continue into the year, said FSDH Research.

Foreign exchange reserves, according to the CBN, are assets held on reserve by a monetary authority in foreign currencies. These reserves are used to back liabilities and influence monetary policy. They include foreign banknotes, deposits, bonds, treasury bills and other foreign government securities.

Nigeria is considering a bond sale targeted at its citizens overseas to raise funds to help Africa’s biggest economy narrow its budget deficit, according to a Bloomberg report.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

Patience Oniha, director-general of the Debt Management Office, said the Federal Government might sell the debt after it repays $300 million of diaspora bonds maturing in June.

“We are doing both an analysis of a recent research report on diaspora remittances and reviewing offshore regulations for changes that may be supportive of offering products to retail investors,” Oniha was quoted to have said in a text message on Thursday.

Read: Public debt ratios across Africa rise to 20-year high over Russia’s war on Ukraine, other factors

In March 2022, Nigeria issued $1.25bn Eurobond, which was expected to boost its buffers but the reverse was the case due to low oil production.

Nigeria’s gross official reserves declined by $317 million (0.8 percent) month/month to $39.5 billion in March 2022, according to a report by FBNQuest, an investment banking and asset management business of FBN Holdings Plc.

The drop was the fifth in a row as the reserves have been depleting by roughly $451m on average on a monthly basis since November 2021. The gross reserves are calculated on a 30-day moving average basis.

At its last meeting in March 2022, the Monetary Policy Committee noted the decrease in the level of gross external reserves to $39.44 billion as of March 17 from $40.21 billion on January 25, indicating a decrease of 1.95 per cent during the review period.

“Although an expected boost to the buffer is due from Nigeria’s $1.25 billion Eurobond issue in March 2022, we expect this to be properly reflected in the reserves in coming days,” analysts at FBNQuest had said.

The external reserves rose to $39.811 billion as of April 21, 2022 from $39.537 billion in April 1, 2022, but declined to $39.64 billion as of April 27, latest data from the CBN showed.

Nigeria’s external reserves is estimated to grow to about $40 billion by the end of the year, following the latest Eurobond issuance of $1.25 billion in March 2022, according to a report by the FBNQuest.

Nigeria’s need for borrowing has increased following additional spending to help the economy recover from the impact of the COVID-19 pandemic and Russia’s war on Ukraine.

The government expects this year’s deficit will widen by an extra N965 billion ($2.3 billion) to N7.35 trillion naira, amounting to about 4 percent of gross domestic product, according to Bloomberg.

Source: businessdayng
Via: norvanreports
Tags: $1.25bn Eurobond NigeriaCentral Bank of Nigeria (CBN)COVID-19 pandemicFBN Holdings PlcNigeria
No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.