Federal Government Auctions N150bn in Bonds

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Federal Government Auctions N150bn in Bonds - The Debt Management Office (DMO) has announced the sale of three Federal Government bonds worth N150 billion. These bonds, which are reopenings of previously issued instruments, offer various tenors and coupon rates. The first bond is a N70 billion five-year bond with a 19.30% coupon rate. The second bond is a N50 billion seven-year bond with an 18.50% coupon rate. The third bond is a N30 billion nine-year bond with a 19.89% coupon rate. The bonds were auctioned on September 23, 2024, and will settle on September 25, 2024. Successful bidders will pay a price based on the yield-to-maturity bid. Interest is paid semi-annually, and the principal will be repaid at maturity. These bonds are backed by the full faith and credit of the Federal Government of Nigeria and offer tax exemptions for certain investors. They are also listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.

Telecom VAT Skyrockets Amid Rising Digital Demand - The Nigerian telecom sector has continued to thrive despite economic challenges, with a surge in value-added tax (VAT) revenue serving as a testament to its growth. Driven by increased data usage, the sector's VAT revenue has soared by a staggering 102% from 2022 to 2024. The rising demand for internet services, fueled by online activities like streaming, video calls, and music, has been a major catalyst for this growth. This surge in data usage has not only benefited the telecom sector but has also positively impacted the overall economy. The telecom sector's contribution to government revenue has also seen a significant increase. In the second quarter of 2024, VAT collected from the sector reached a substantial portion of the total VAT revenue, highlighting its importance to the economy. While the telecom sector has demonstrated remarkable resilience, recent economic challenges could potentially pose risks to its continued growth. Factors such as declining service quality and coverage expansion delays could affect consumer usage and the sector's overall performance.

Capital Market Town Hall Meeting Set for October 7th - ThinkBusiness Africa and the African Business Convention are hosting a special town hall meeting on 7^th of October, 2024 to discuss the future of Nigeria's capital market. The event will feature a keynote address by Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC). Discussions at the conference will explore the challenges and opportunities facing the Nigerian capital market and discuss potential solutions. Click To Register

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