As the nationwide supply and distribution of Premium Motor Spirit (PMS), also known as petrol, continues to improve, the Nigerian National Petroleum Company (NNPC) Limited has once again called on motorists to shun panic buying of the product.
According to a statement by Chief Corporate Communications Officer, NNPC Ltd Olufemi Soneye, said that in filling stations monitored across several states, including Lagos and the FCT, the queues have since thinned out, a development that will keep improving daily in other states.
“The Company wishes to state that at the moment, it has over 1.5 billion litres stock of PMS, which is equivalent to over 30 days sufficiency.
“The NNPC Ltd is also collaborating with relevant downstream agencies, such as the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA), labour unions in the sector and security operatives to address hoarding and other unwholesome practices,” he said.
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DMO set to issue FGN bonds
By Blessing Anaro
Lagos
The Debt Management Office (DMO) is issuing the FGN May saving bonds with highest ever rates at 17.4 per cent and 18.4 per cent at N1,000 per unit.
The rates represent the highest ever offered by the DMO on FGN Savings Bonds, as the country moves in the direction of a further rate hike.
The two-year savings bond maturing on May 15, 2026, is to be offered at an interest rate of 17.407% per annum.
The three-year savings bond with a maturity date of May 15, 2027, features an interest rate of 18.407% per annum.
The subscription for these bonds began on May 6, 2024, and will continue until May 10, 2024, as per an announcement made by the DMO.
Settlement is scheduled for May 15, 2024, with quarterly coupon payment dates set for August 15, November 15, February 15, and May 15.
In recent months, Nigeria has witnessed a significant surge in interest rates on government securities, reaching as high as 19 per cent.
This sharp increase aligns with the Monetary Policy Rate (MPR), reflecting the Central Bank of Nigeria’s (CBN) hawkish stance aimed at curbing the inflationary pressures that have besieged the economy. By tightening monetary policy, the CBN intends to withdraw excess money from circulation, hoping to stabilize rising consumer prices. However, this approach carries a substantial fiscal burden.
As the government implements measures to cool inflation, the cost of borrowing, particularly in the short term, escalates.
This scenario poses a considerable challenge for future debt management and fiscal sustainability.
Recent data illustrates this predicament starkly: Nigeria’s debt from Federal Government of Nigeria (FGN) Savings Nairametrics observed that bonds has more than doubled in just five years, ballooning from approximately N16.4 trillion in 2019 to N39.1 trillion in 2023.
The FGN Savings Bonds, primarily targeted at retail investors, have become a critical tool in the government’s debt strategy.
