11 Jun

Daily Watch – CBN releases Yuan swap guidelines, Nigeria to flog NigeriaRe

  • The CBN has published regulatory guidelines for prospective operators under the bilateral currency swap agreement between Nigeria and China. Published late Friday, the guidelines were signed by CBN Director, Financial Markets Department, Alvan Ikoku. The guidelines said the swap agreement was for a maximum of 15 billion Chinese Yuan for ₦720 billion with a three year tenor. The currency swap agreement allows the CBN and the Peoples Bank of China to, among other purposes, provide liquidity in their respective currencies, to facilitate and promote trade and investments across the two countries.
  • Nigeria has decided to sell its remaining stake in Nigeria Reinsurance before the end of the year. An IPO is scheduled to take place in November according to Reuters. BPE boss, Alex Okoh said that the agency had a list of assets it plans to either sell or concession in a bid to raise ₦400 billion to fund the 2018 budget. Nigeria Reinsurance was established under the Nigeria Reinsurance Corporation Act No. 49 of 1977. It started operations on January 1st, 1978 as Nigeria’s flag reinsurer, wholly owned by the Government of the Federal Republic of Nigeria. In line with the privatisation policy of the FG, 51% equity was acquired in December 2002, by Reinsurance Acquisition Group – the Management buy out vehicle, while the Government retained 49% interest. The former stake was later taken over by Barr.Jimoh Ibrahim through Global Fleet Oil and Gas. It’s most recent results, 2016, show PAT rising from ₦526 million in 2015 to ₦923 million in 2017.
  • President Buhari has nominated Folashodun Shonubi as deputy governor of the CBN subject to Senate confirmation. Shonubi is currently the managing director of NIBSS – the financial payments, facilitation and settlement platform. Before assuming leadership of NIBBS in 2012, Shonubi had acquired decades of executive-level experience in financial service operations, with Union Bank, Renaissance Securities and Ecobank. He was executive director in all three organisations.
  • Telecommunications firms in Nigeria have finally agreed to settle their ₦165 billion-worth of interconnect debt by July according to the NCC. Umar Garba Danbatta, the NCC’s chairman said this while receiving Olusola Teniola, the newly-elected president of Association of Telecommunications Companies of Nigeria in his office. According to Danbatta, the NCC had set a deadline for the interconnect debt settlement after mediating between all parties involved. He also added that measures have been put in place to ensure that all those owing the debt start paying, even as those who are being owed eventually get to receive their money.