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The Nigerian equity market gained N704bn in six days, pushing the market capitalisation above N60tn.

At Monday’s close, investors gained N330bn, and market capitalisation hit N60.6tn, with 740.89 million shares worth N16.88bn traded in 10,430 deals. This represented a 39 per cent increase in trading volume, a 127 per cent surge in turnover, and a 23 per cent rise in the number of deals compared to the previous Friday.

Sterling Bank led trading with 197 million shares, followed by Wema Bank with 150 million shares, E-Tranzact International with 70.1 million shares, and Access Holdings with 20.5 million shares.

Out of 122 listed equities, 35 gained while 25 declined. LivingTrust Mortgage Bank led gainers, rising 10 per cent to N3.30 per share. Other gainers included Royal Exchange (+10 per cent to N0.66), International Breweries (+9.9 per cent to N4.55), and Guinea Insurance (+9.84 per cent to N0.67).

For the laggards, University Press recorded the steepest loss, falling 9.81 per cent to N3.77. Haldane McCall dropped 9.62 per cent to N4.70, while International Energy Insurance and Associated Bus Company fell by 9.52 per cent and 8.7 per cent, respectively.

In the prior week, the market gained N374bn, with the All-Share Index rising by 1.19 per cent to close at 99,378.06, and market capitalisation ending at N60.242tn.

Investors traded 2.73bn shares worth N49.85bn in 43,298 deals. The Financial Services sector dominated activity with 1.705bn shares worth N18.87bn traded in 19,203 deals, contributing 62.48 per cent of volume and 37.87 per cent of value.

The Oil and Gas index rose 7.6 per cent, and the Insurance index gained 5.5 per cent, driven by buying interest in Conoil, Oando, Wapic Insurance, and Sunu Assurances.

The AFR-ICT index increased 1.1 per cent, supported by MTN Nigeria, while consumer goods rose 1.0 per cent, led by PZ Cussons and Guinness Nigeria. The banking index rose marginally by 0.2 per cent.

In the fixed-income market, the Central Bank offered N275.78bn in treasury bills, with 91-day and 182-day rates steady at 18.00 per cent and 18.50 per cent. The 364-day rate fell to 22.80 per cent from 22.93 per cent.

In the secondary market, average treasury bill yields dipped 2 basis points to 25.70 per cent, while bond yields rose 3 basis points to 19.50 per cent. Eurobond yields climbed to 9.36 per cent from 9.18 per cent, reflecting profit-taking and concerns over a rise in US inflation to 2.70 per cent.

Afrinvest analysts predict cautious trading as the NGX approaches the 100,000-point psychological mark, which could prompt minor corrections.

“In the coming week, we expect cautious trading as the local bourse approaches the 100,000-point psychological level where minor corrections in trends can be expected.”

-By Temitope Aina

 

 

 

The Securities and Exchange Commission has launched an enlightenment initiative tagged #investnigeria to attract more Nigerians to the capital market.

A statement made available to our correspondent by the commission on Sunday stated that the SEC’s Director General, Emomotimi Agama, highlighted the campaign’s objective of promoting investment in the capital market through education and advertising.

He emphasised that advertising is crucial in increasing financial literacy and connecting investors with opportunities.

According to Agama, “Some reasons why advertising can be an effective way to promote investment in the capital market are that it can educate potential investors about the benefits and opportunities of investing in the capital market. The campaigns improve literacy by helping investors understand various investment products, risks, and rewards.”

He added that the campaign would inform investors about opportunities such as initial public offerings, bonds, and mutual funds, noting that the initiative would drive economic growth by fostering increased investment, leading to job creation, enhanced liquidity, and market efficiency.

“Encouraging investment in the capital market can lead to increased economic activity, job creation, and GDP growth. Advertising can attract domestic and foreign investment, leading to increased capital formation and development of the capital market,” he explained.

The campaign also aims to promote transparency, disclosure, and competition in the capital market, making it more accessible to local and foreign investors. To achieve this, SEC plans to deploy various media strategies, including billboards, social media, online advertising, and email marketing.

Agama disclosed that the Commission would collaborate with financial influencers, bloggers, and thought leaders to promote investment opportunities while organising seminars, workshops, and conferences to educate potential investors.

“We will also leverage media coverage to raise awareness about the capital market and investment opportunities,” he said.

He stressed the need for investor education, saying, “One of the ways by which you can protect investors is by equipping them with knowledge and giving them the know-how to discern between what is a good investment and what is not.”

He further noted that the SEC is committed to continuous education in the capital market. “The market is knowledge-based, and we are committed to ensuring that information is made available to the investing public,” he stated.

The PUNCH reported that the Securities and Exchange Commission is exploring blockchain technology to boost trust and transparency in the capital market.

-By Temitope Aina

 

 

Major stock markets and oil prices retreated Monday after an unexpected slowdown in retail sales reinforced worries about China’s struggling economy.

The dollar mostly rose as traders looked ahead to interest-rate decisions this week from the US Federal Reserve, Bank of Japan and Bank of England.

Bitcoin hit a new record high at $106,493.43.

“China remained the central focus for Asian markets in another show of economic weakness which sent markets lower,” noted Richard Hunter, head of markets at Interactive Investor.

“The highlight of the week… will be the interest rate decision from the Fed on Wednesday.”

Observers also tracked developments in Seoul after South Korean lawmakers impeached President Yoon Suk Yeol at the weekend in the wake of his short-lived declaration of martial law this month.

Hong Kong and Shanghai indices closed lower after figures showed that Chinese retail sales grew 3.0 per cent last month, much slower than in October and well off the five-per cent forecast.

The figures highlighted the work China’s leaders had in store as they tried to kickstart consumption and reignite the world’s number two economy.

Officials unveiled new promises at the weekend to boost the battered property sector and tweak monitoring of equity markets.

That came after investors were left unimpressed last week with Beijing’s pledge to introduce measures aimed at “lifting consumption vigorously” as part of a stimulus drive.

– France downgrade –

In Europe, the Paris stock market dropped after Moody’s downgraded France’s credit rating Saturday, following months of political crisis and the appointment of centrist Francois Bayrou as prime minister.

European Central Bank chief Christine Lagarde on Monday said eurozone policymakers would keep lowering interest rates and warned that higher US tariffs under President-elect Donald Trump could hit growth in the bloc.

The ECB cut rates again last week as inflation looked to be coming under control and the eurozone economy showed signs of weakness.

The Fed is widely expected to cut interest rates again Wednesday but there are fears it will have to slow its pace of easing next year owing to sticky inflation and bets that Trump’s tax cuts and tariffs will reignite prices.

On the corporate front, three spinoffs from French right-wing tycoon Vincent Bollore’s Vivendi media empire debuted on stock markets, with mixed results.

Shares in the Canal+ television and film group tanked 15 per cent in London.

The other two spinoffs had a better start: Book publisher Louis Hachette soared 25 per cent on the Euronext Growth in Paris while advertising agency Havas was up six per cent in Amsterdam.

Shares rose in the remaining Vivendi company, which stayed on the Paris stock exchange.

Elsewhere, Britain’s centuries-old Royal Mail is set to pass into foreign ownership after the UK government approved the takeover of its parent company by Czech billionaire Daniel Kretinsky’s EP Group.

The takeover of International Distribution Services is worth £3.6 billion ($4.5 billion). IDS shares climbed nearly one per cent in late-morning deals.

– Key figures around 1115 GMT –

Paris – CAC 40: DOWN 0.9 percent at 7,345.84 points

Frankfurt – DAX: DOWN 0.4 per cent at 20,329.16

London – FTSE 100: DOWN 0.4 percent at 8,267.15

Tokyo – Nikkei 225: FLAT at 39,457.49 (close)

Hong Kong – Hang Seng Index: DOWN 0.9 per cent at 19,795.49 (close)

Shanghai – Composite: DOWN 0.2 per cent at 3,386.33 (close)

New York – Dow: DOWN 0.2 per cent at 43,828.06 (close)

Euro/dollar: DOWN at $1.0490 from $1.0504 on Friday

Pound/dollar: UP at $1.2646 from $1.2622

Dollar/yen: UP at 153.83 yen from 153.60 yen

Euro/pound: DOWN at 82.94 pence from 83.19 pence

West Texas Intermediate: DOWN 1.2 per cent at $70.45 per barrel

Brent North Sea Crude: DOWN 1.0 per cent at $73.77 per barrel

-By Adetutu Sobowale

 

The World Bank is set to decide on three major loan projects for Nigeria in 2025, totalling $1.65bn, as part of efforts to address critical developmental challenges in the country.

The loans, currently in the pipeline, will focus on internally displaced persons, education, and nutrition enhancement.

According to information obtained from the World Bank’s website, the loans are designed to support Nigeria’s social and economic recovery, particularly in vulnerable sectors requiring urgent intervention.

The first project, titled Solutions for the Internally Displaced and Host Communities Project, has a commitment amount of $300m and is scheduled for approval on April 8, 2025.

The project, which remains at the concept review stage, seeks to provide sustainable solutions for internally displaced persons and their host communities, addressing their social and economic challenges.

The second project, HOPE for Quality Basic Education for All, is expected to receive $553.8m in financing.

Its approval is slated for March 20, 2025, and it also remains in the concept review phase.

The third project, Accelerating Nutrition Results in Nigeria 2.0, involves the largest share of the proposed loans, with a commitment of $800m.

The World Bank is expected to hold a decision meeting on the project by February 20, 2025.

The $1.65bn financing package reflects the World Bank’s continued commitment to supporting Nigeria’s ongoing reforms.

The World Bank’s schedule indicates that decisions on these loans will be made in early 2025, with Nigeria’s ability to meet project prerequisites and demonstrate accountability in implementation likely to play a key role in getting the funds.

The PUNCH further observed that the Federal Government, under the leadership of President Bola Tinubu, has secured loans worth $6.95bn from the World Bank in about 18 months. The amount increased to the new figure following the latest approval of a new $500m loan from the World Bank for a project in Nigeria.

The Board of the World Bank Group approved a $500m loan to Nigeria last week Friday (December 13, 2024) to boost rural access and agricultural marketing in the country.

According to information obtained from the Washington-based institution, the loan is for the Rural Access and Agricultural Marketing Project—Scale Up.

It is designed to bridge the gap between rural communities and the broader marketplace, facilitating smoother access to agricultural markets, schools, and hospitals and promoting social cohesion among rural populations.

This was the 10th loan project from the World Bank under the administration of President Bola Tinubu.

The first project approved under Tinubu’s administration was the $750m Power Sector Recovery Performance-Based Operation.

This loan is designated as additional financing for the power sector recovery performance-based operation, a crucial component of Nigeria’s broader strategy to stabilize and enhance its power sector.

On June 27, 2023, the World Bank Group announced the approval of a loan of $500m to help Nigeria drive women’s empowerment.

This was the second loan approved by the bank under Tinubu’s administration. It provided a scale-up financing for the Nigeria for Women Program.

In September 2023, the World Bank approved a loan of $700m to bolster educational opportunities and empowerment for adolescent girls in Nigeria.

The loan was to support the ongoing ‘Adolescent Girls Initiative for Learning and Empowerment’ project. It aimed to encourage secondary education accessibility for girls residing in specific target states within Nigeria.

On December 14, 2023, the World Bank approved the $750m Distributed Access through Renewable Energy Scale-up project in Nigeria.

The project aims to provide over 17.5 million Nigerians with better access to electricity via distributed renewable energy solutions and tackle the electricity access deficit.

On June 13, 2024, the World Bank announced the approval of two significant financial operations aimed at bolstering Nigeria’s economic stability and supporting its vulnerable populations.

The combined package, totalling $2.25bn, comprises $1.5bn Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing Program.

The second loan package approved on June 13 was $750m for the Nigeria Accelerating Resource Mobilization Reforms Programme-for-Results.

On September 26, 2024, the World Bank approved three new projects for Nigeria, totalling $1.57bn in financing.

This financing package, which includes a $1.5bn loan and $70m grant, is part of broader efforts to improve key sectors such as education, healthcare, and water management, while also tackling poverty and boosting productivity.

Under this financing package, the HOPE-GOV programme, was approved for $500m to improve governance in the education and health sectors.

Another $570m was earmarked for the Primary Healthcare Provision Strengthening Program,  which was targeted at improving Nigeria’s healthcare system, particularly for women, children, and adolescents.

The remaining $500m was allocated to the Sustainable Power and Irrigation for Nigeria Project, which aimed to protect Nigeria from climate-induced challenges such as floods and droughts.

According to data from the external debt report released by the Debt Management Office, the World Bank’s share of Nigeria’s debt totals $16.32bn, with the majority owed to the International Development Association, which accounts for $16.32bn, which represents 38 per cent of Nigeria’s total external debt.

The International Bank for Reconstruction and Development, another arm of the World Bank, is owed $484.0m, or 1.13 per cent.

The PUNCH earlier reported that the Federal Government spent $3.58bn servicing its foreign debt in the first nine months of 2024, representing a 39.77 per cent increase from the $2.56bn spent during the same period in 2023.

This was according to data from the Central Bank of Nigeria on international payment statistics.

The significant rise in external debt service payments shows the mounting pressure on Nigeria’s fiscal balance amid ongoing economic challenges.

The World Bank, in its latest International Debt Report, revealed that developing nations spent an unprecedented $1.4tn on foreign debt servicing in 2023, driven by a surge in interest rates to their highest levels in 20 years,

Interest payments alone reached $406bn, a nearly 30 per cent increase from the previous year, severely impacting spending in critical sectors such as health, education, and environmental programs.

According to the report, the most vulnerable economies, those eligible for loans from the World Bank’s International Development Association, bore the brunt of the financial strain.

-By Sami Tunji

 

 

The Nigeria Customs Service (NCS) Oil and Gas Free Trade Zone Command in Rivers State says it has achieved a record-breaking revenue collection of N53.98 billion between January and November 2024, exceeding its annual target by 2.3 per cent and nearly doubling the N26.80 billion generated in 2023.

This was disclosed by the Customs Area Controller, Oil and Gas Free Trade Zone, Onne, Comptroller Seriki Usman, during a press briefing at the command’s headquarters, where he attributed the success to strategic collaboration with stakeholders, operational efficiency, and a focus on regulatory compliance.

He said, “A notable achievement of the command was its record-breaking revenue collection of N53.98 billion. This figure represents a 2.3 per cent increase over our annual target for 2024 and a remarkable 98.6% rise compared to the N26.80 billion collected in 2023.

“Our record-breaking revenue underscores the importance of effective trade facilitation and regulatory compliance. This achievement reflects the commitment of our officers, the collaboration with stakeholders, and the critical role of the Oil and Gas Free Trade Zone in driving Nigeria’s economic growth,” he said.

He explained that the Command successfully facilitated the export of key products such as refined sugar, fertiliser, liquefied natural gas, LNG, and crude oil from major facilities, including Bundu Sugar Refinery, Notore Chemical PLC, and Bonny Island.

“The seamless management of imports and exports within the free trade zone has enhanced operations for licensed enterprises,” he noted.

Speaking on the significance of these achievements, Comptroller Usman emphasized the need to maintain the momentum

“This accomplishment is not just about numbers but about fostering trade growth, innovation, and creating a conducive environment for businesses to thrive within the free trade zone.”

On regulatory compliance, Comptroller Usman reassured Nigerians of the Command’s commitment to ensuring adherence to international trade regulations while fostering economic progress.

“Our focus remains on enhancing service delivery, promoting ease of doing business, and driving revenue generation that supports the nation’s development goals,” he said.

The command emphasized that collaboration with stakeholders, particularly the Oil and Gas Free Trade Zone Authority, has been pivotal in achieving these milestones, and called for continued partnership to sustain trade growth and improve service delivery.

As the year comes to a close, the command has reiterated its resolve to solidify its role as a critical revenue driver and trade facilitator in Nigeria’s oil and gas sector.

Mr Usman said the performance reflects the command’s vital role in strengthening Nigeria’s non-oil revenue base and its determination to remain a key player in the country’s economic transformation efforts.

“We remain committed to sustaining our achievements, fostering trust among stakeholders, and contributing significantly to the nation’s economic growth,” Comptroller Usman concluded.

-By Adedapo Adesanya