Nigeria’s stock market recovered from Monday’s losses on Tuesday, with the market capitalisation appreciating by N1.6 billion to close at N11.462 trillion.
This is as a result of the 26 stocks that recorded gains at Tuesday’s trading.
The market had depreciated on Monday after seven consecutive days of price rally, but yesterday’s gains lifted the Nigerian Stock Exchange (NSE) All-Share Index to close higher at 30,736.88.
Price gainers were led by Linkage Assurance Plc with 9.8 per cent gains. It was trailed by Redstar Express Plc with 9.0 per cent while Nigerian Aviation Handling Company Plc chalked up 8.3 per cent, just as Royal Exchange Plc and Oando Plc garnered 7.4 per cent and 6.8 per cent in that order.
At the end trading on Tuesday, 10 stocks dipped in value. They were led by MCNichols Plc with 9.3 per cent, followed by Sovereign Trust Insurance Plc with 8.3 per cent while the Cement Company of Northern Nigeria Plc shed 7.0 per cent, with WAPIC Insurance Plc going down by 4.7 per cent among others.
The activity level at the NSE fell as volume and value traded declined by 51.0 per cent and 56.0 per cent to 245 million shares and N2.4 billion.
In terms of volume, the most active stocks were Diamond Bank (71.6 million shares), Access Bank (27.0 million shares) and GTBank (27.0 million shares while the top traded stocks by value were GTBank(N848.0 million), Zenith Bank (N236.0 million) and Seplat (N193.8 million).
Performance on sectoral basis was mixed with two sectors appreciating while three declined.
The NSE Oil & Gas Index advanced the most, up 1.7 per cent while the NSE Banking Index followed with a rise of 0.8 per cent.
However, the NSE Industrial Goods Index shed the most, down 2.5 per cent, while the NSE Consumer Goods Index and NSE Insurance Index shed 0.3 per cent and 0.4 per cent respectively.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has raised the alarm that Nigeria may return to the pre-2005 Paris Club debt level, if the Federal Government fails to come up with immediate measures to address the rising debt profile.
The MPC stated this on Tuesday in Abuja after its first meeting of the year.
It would be recalled that in October 2005, Nigeria and the Paris Club announced a final agreement for debt relief worth $18bn and an overall reduction of Nigeria’s debt stock by $30bn.
The deal was completed on April 21, 2006, when Nigeria made its final payment and its books were cleared of any Paris Club debt.
Statistics from the debt management office showed that Nigeria’s debt profile as at June 2018 stood at $22.08 billion.
However, key officials of the President Muhammadu Buhari’s administration have consistently dismissed fears raised by Nigerians over the rising debt profile.
Prominent among these Buhari administration officials are the Vice President, Yemi Osinbajo and the Minister of Power, Works and Housing, Babatunde Raji Fashola.
Speaking on behalf of the MPC on Tuesday, CBN Governor, Mr Godwin Emefiele, said that the committee noted the rising debt profile and called for caution.
He said: “On external borrowing, the committee noted the increase in debt level advising for caution, noting that it could fast be approaching the pre-2005 Paris Club level.”
According to Emefiele, the committee noted that while the real Gross Domestic Product grew by 1.81 per cent during the third quarter of 2018, the persistence of herdsmen attacks on farmers, cattle rustling and flooding in parts of the country affected agricultural and livestock output.
He said in view of this, the output for growth remained fragile as the late implementation of the 2018 budget and the residual impact of flooding and security challenges constituted headwinds to growth.
The MPC called for the effective implementation of the 2018 capital budget and the Economic Recovery and Growth Plan in other to stimulate economic activities.
It also hammered on the need for improvements in the security situation in the country as well as continued stability in the foreign exchange market to enhance aggregate demand and growth.
“The committee observed that the near term risk to inflation remain the impact of flooding on agricultural output, insecurity on food producing belts in the country, exchange rate pass through to inflation due to the weakening of oil price and campaign-related spending towards the 2019 general elections.
“Accordingly, the Monetary Policy Committee called on the Federal Government to sustain its efforts towards improving security to ease supply chain bottlenecks.
“The committee recommended that the Federal Government should focus investment on infrastructure and urge the Federal Government to sustain the pace towards addressing infrastructure deficit in Nigeria.
“It noted that the immediate impact of this on the GDP will be slow in coming but it will expand the economy, reduce unemployment and increase aggregate demand in a more sustainable manner”, Emefiele said.
The MPC also backed the plan by the Federal Government to raise more revenue through Value Added Tax, saying the move would help to reduce pressure on government expenditure.
“The committee also noted the attempts by the government to broaden the base of the Value Added Tax and urge the authorities to expedite action in that effect, arguing that increased tax collection will reduce pressure on government expenditure and create fiscal buffers to improve macroeconomic management,” he added.
On the recent increase in foreign capital inflow into the country despite the political risks, Emefiele said this was based on the confidence of the international community in the country’s macroeconomic management.
He said: “The observed and recent high foreign capital inflow into the Nigerian economy despite the perception of political risks is based on the confidence of the international community in the country’s macroeconomic management and provides a compelling reason for the committee to await clarity on the macroeconomic performance after the general elections in February and March.”
Vice President Yemi Osinbajo says there is a need to invest in agriculture to take the nation out of poverty.
He made the recommendation on Thursday in Abuja while launching the Green Imperative, a project of the Federal Government in collaboration with the Brazilian government.
“Frankly, we believe we cannot bring our nation out of poverty, especially the large numbers of the poor without significant investments in agriculture and, of course, mechanised agriculture,” the Vice President was quoted as saying in a statement by his media aide, Mr Laolu Akande.
He added, “But also because we know the sheer number of young people who are coming into our population in the next 10 – 15 years, will certainly not only need to be fed, but will also need to have jobs, and the sort of jobs that these young people will want will not be jobs requiring hoes and cutlasses.”
Professor Osinbajo noted that the young generation would need more dignified jobs while the government would be able to achieve more with mechanisation.
He stressed that the only way the nation can make the quantum leap required to advance its economy and provide the number of jobs needed was simply what the government was doing.
The Vice President highlighted the progress made so far, saying there would be a combination of service centres where technical capacity and training would take place.
According to him, the major dividends of all these are the hundreds of thousands of quality jobs that young men and women will be able to access.
“Today, we have made a significant difference in our journey, not just in self-sufficiency in food production, but also in creating the kinds of jobs that we could have from agriculture,” said Osinbajo.
“Also crucial is the fact that the private sector is an important component of this particular enterprise … we have ensured that this will be private sector driven and we have here today, both Nigerian and Brazilian investors committed to investing and working on this project.”
He said President Muhammadu Buhari’s dream of self-sufficiency in food production has moved closer to realisation, as the nation would be able to produce food for its people in the next couple of years.
The Vice President was also hopeful that there would be employment not just in agriculture, but in all of the agro-allied value chain and manufacturing.
The Nigerian government on Thursday disclosed that it would require a total sum of $1.1 billion loan to implement its Green imperative initiative.
The Minister of Finance, Zainab Ahmed, who disclosed this at the launching of the project at the old Banquet Hall, Presidential Villa, Abuja, said the project was part of Buhari administration’s moves to reposition and diversify the economy in a sustainable way.
The initiative is a Nigeria-Brazil Cooperation Project Agriculture.
She explained that the loan which would majorly be provided by Brazilian government, would be provided in kind through the supply of agricultural machinery and implements in the form of Completely Knocked Down, CKD, parts.
The minister said: “The project we are launching today will be implemented with a total loan package of US$1.1 billion majorly from the Brazilian government, which will be disbursed in four tranches over a period of two years.
Vice President, Prof. Yemi Osinbajo, who launched the project, described the initiative as a game changer in repositioning the country’s economy.
“We cannot bring our nation out of poverty without investment in agriculture.
“Also, the share number of young people coming of age will not only need to be fed but employed. They want dignified jobs with decent pay.”
Speaking at the programme, the Brazilian Ambassador to Nigeria, Ricardo Guerra de Araujo, said the $1.1 billion contract includes 10,000 tractors to be assembled here in Nigeria, more than 707 centres to be established to train not less than 10,000 Nigerians. He also said the project aims to create over five million new jobs, especially among the youths.
The Economic and Financial Crimes Commission (EFCC) on Wednesday, said a staggering sum of $217.7 billion was illegally taken out of Nigeria between 1970 and 2008.
The anti-graft agency revealed this in Abuja through its acting Chairman, Ibrahim Magu at the one day conference organised by the Online Publishers Association of Nigeria (OPAN) in Abuja.
Magu, who was represented by the commission’s acting spokesman, Tony Orilade, said the various investigations, arrests, prosecution and assets recoveries over the years had confirmed that the level of corruption in Nigeria had been truly staggering.
Insisting that corruption in Nigeria was being perpetrated by individuals and groups both in the private and public sectors, Magu identified former state governors, ministers, high ranking military officers, chief executives of parastatals and top bureaucrats in state and federal agencies as culprits involved in the public sector theft.
Magu said: “The alarming rate of corruption committed by these unpatriotic elements can be partly seen in the number of convictions secured by the EFCC from Nigerian courts since I assumed duty as the head of the commission in 2015.
“The figure stands at 103 in 2015, 195 in 2016, 189 in 2017 and 312 for the period of January to December 2018. The total figure for the period of 2015 to 2018 is a mind-blowing 799 convictions. In the process of such convictions, the EFCC recovered N794.5bn, $261m, £1.1m, €8.1m and CFA86, 500.
“One of the most graphic ways through which the absence of democratic accountability manifests itself in Nigeria today is through the prevalence of rampant corruption at all levels of governance. For example, Transparency International reported that Nigeria was the most corrupt country in the world for years: 1996, 1997, 2000 and second in the line for remaining years up to 2003.
“In February 2015, a high-level panel on illicit financial flows from Africa constituted by the African Union, under the chairmanship of a former President of South Africa, Thabo Mbeki, revealed that Nigeria ranked first among ten African countries by cumulative illicit financial flows between 1970 and 2008. The total outflow from Nigeria for the period was $217.7bn constituting about 30.5 per cent of Africa’s total share.”
Investors at the Nigerian Stock Exchange (NSE) on Wednesday gained N120.5 billion as the stick market continued its appreciation for the past five consecutive trading days.
The market capitalisation of listed equities jumped from N11.238tn on Tuesday to N11.359tn on Wednesday, with the All Share Index rising by 1.07 per cent to 30,460.68 basis points.
The gains, analysts say were driven by price appreciation in Dangote Cement Plc, Guinness Nigeria Plc and United Bank for Africa Plc.
The gains moderated the market’s year-to-date loss to -3.1 per cent, while investor sentiment strengthened to 1.5x from 1.4x on Tuesday.
Activity level was however mixed as volume traded increased by 1.9 per cent to 305.802 million units, while value traded declined by 35.3 per cent to N2.102bn.
Top traded stocks by volume were Diamond Bank Plc (141.2 million units), Fidelity Bank Plc (18.6 million units) and Guaranty Trust Bank Plc (17.4 million units) while the top traded stocks by value were GTB (N577.7m), Zenith Bank (N357.1m) and Diamond Bank (N296.6m).
Performance across sectors was also mixed with three sectoral indices closing in the green.
The insurance index led the gainers with a 2.32 per cent gain; the industrial goods index rose by 1.70 per cent, and the consumer goods index advanced by 0.24 per cent.
On the other hand, the banking sector was the major loser, with a 0.68 per cent depreciation, while the oil and gas index shed 0.01 per cent.
After Wednesday trading, 24 stocks advanced while 16 others recorded losses.
Topping the gainers were Sovereign Trust Insurance Plc, Veritas Kapital Assurance Plc, Guinness, Honeywell Flour Mill and NEM Insurance, having their share prices gaining 10 per cent, 10 per cent, 9.65 per cent, 9.57 per cent and 9.57 per cent, respectively.
However, Beta Glass Plc, Northern Nigeria Flour Mills Plc, Resort Savings and Loans Plc, PZ Cussons Nigeria Plc and Neimeth International Pharmaceuticals Plc, led the losers, with their respective share prices declining by 10 per cent, 9.20 per cent, 8.82 per cent, 8.33 per cent and 4.69 per cent.
Nigeria has contributed 97 out of the 360 companies listed in the second edition of the London Stock Exchange Group’s Companies to Inspire Africa report.
The report, which identifies 360 companies in 32 countries in Africa, was launched on Wednesday with Kenya also contributing 66 companies.
“Nigeria further built on its leading position established in the 2017 report with strong representation from the industry and technology and telecoms sectors,” the LSEG said in an emailed statement.
The report, with seven major sectors represented, featured companies including small entrepreneurial businesses to well-established corporations.
According to the report, consumer services, industry and agriculture are the three biggest sectors, contributing over 50 per cent of the companies featured, while technology and telecoms, and financial services together represent over 25 per cent of firms.
Healthcare and education and renewable energy also featured strongly.
Some of the Nigerian firms listed are Kian Smith Trade & Co Limited, which is building the country’s first gold refinery; FSDH Merchant Bank Limited; Ladol Integrated Logistics Free Zone Enterprise; Jumia; Asharami Synergy Plc, BudgIT Foundation; Interswitch Limited; Ensure Insurance Plc; Lagos Business School, Pan-Atlantic University; North South Power Company Plc; Leadway Assurance Company Limited; Farmcrowdy Limited and Venia Group.
According to the Chief Executive Officer, LSEG, David Schwimmer, the firms listed in last year’s report had already realised significant progress and achievements in the last 12 months in a variety of ways, including pursuing IPOs and issuing bonds to grow, while some had also undertaken cross-border expansion, both within the African continent and globally.
Schwimmer said: “London Stock Exchange Group’s ‘Companies to Inspire Africa’ report showcases inspirational and entrepreneurial businesses from across the African continent, representing a wide variety of industries and countries. It is particularly encouraging to see the increasing influence of women in leadership roles in these fast-growing companies, playing a pivotal role in shaping the future of African business.
“These high-growth companies have the potential to transform the African economy and become tomorrow’s job creators. At LSEG, we are committed to helping companies realise that potential and we are pleased to highlight and celebrate the company success stories behind one of the world’s fastest growing markets.”
The report was produced in partnership with African Development Bank Group, CDC Group, PwC and Asoko Insight, and the report is sponsored by Instinctif Partners and Stephenson Harwood.
A report from the National Bureau of Statistics (NBS) has shown that Nigeria recorded crude oil export worth N11.5 trillion in nine months, from January to September 2018.
The figure is a 48.01 per cent rise from N7.77 trillion recorded in similar period in 2017.
The figure is also over N2 trillion more than the N9.12 trillion budgeted for 2018 and about N3 trillion more than the 2019 budget proposal.
Data from the NBS Foreign Trade Statistics for the Third Quarter of 2018, showed that crude oil export in the nine-month period accounted for 81.8 per cent of total exports recorded in the Nigerian economy in 2018.
According to the report, crude oil export in the first quarter of 2018, appreciated by 51.05 per cent compared to N2.37 trillion recorded in the first quarter of 2017; while in the second quarter of 2018, crude oil export stood at N3.77 trillion, appreciating by 55.14 per cent from N2.43 trillion recorded in the same period of 2017.
The report also showed that third quarter 2018 crude oil export appreciated by 39.17 per cent from N2.97 trillion recorded in third quarter 2017 to N4.15 trillion.
“Crude oil exports in third quarter 2018 was 10.03 per cent more than the value recorded in second quarter 2018 and 39.5 per cent higher than the value recorded in third quarter 2017. Other oil products export in third quarter 2018 was 5.3 per cent more in value than second quarter 2018 and 12.68 per cent higher than third quarter 2017,” the NBS report noted.
Breaking down exports in the third quarter of 2018, the report stated that crude oil and Liquefied Natural Gas [LNG], export stood at N4.147 trillion, N469.87 billion respectively, other petroleum gases export stood at N27.85 billion.
Others are liquefied butane and liquefied propane export which stood at N17.66 billion and N13.73 billion respectively; kerosene type jet fuel export stood at N7.4 billion, while the lubricating oil export stood at N6.84 billion.
The report also named India as the highest importer of Nigeria’s crude oil, purchasing N764.88 billion worth of the commodity; followed by Nigeria’s crude oil export of N522.12 billion and N500.31 billion to Spain and France respectively.
Furthermore, the NBS disclosed that crude oil from Nigeria was exported to South Africa, Netherlands, Indonesia, Brazil and United Kingdom, valued at N335.28 billion, N276.37 billion, N256.3 billion, N226.2 billion and 206.3 billion respectively.
United States and Canada bought Nigeria’s crude oil worth N201.65 billion and N199.01 billion respectively in the third quarter of 2018.
The report noted: “Nigeria’s external trade totalled N9.026 trillion during the third quarter of 2018. Compared to the value of N6.903 trillion recorded against the second quarter, a rise of N2.122 trillion or 30.7 per cent was indicated.
“The total export component of this trade was N4.854 trillion, representing an increase of 7.8 per cent over second quarter 2018 and 35.7 per cent over third quarter 2017.”
The Central Bank of Nigeria (CBN) has directed that loans granted to about 550,000 rice farmers in the country who were affected by the 2018 flooding be structured for another four years as a form of compensation.
This was disclosed by the National President of Rice Farmers Association of Nigeria (RIFAN) Aminu Goronyo on Tuesday in Abuja.
Goronyo said: “Instead of paying the loan in three installments within a year, the loan will be restructured to be paid within four years now and be paid by installments.’’
Goronyo further said that only the affected farmers under the RIFAN/CBN/ABP model programme would benefit from the compensation, adding that the resolution was an outcome of a meeting with the Director, Developing Finances of CBN and RIFAN executive.
The RIFAN president, who said his association only championed the case of affected farmers under its care, expressed the hope that all the registered farmers under the Anchor Borrowers Programme that were affected would benefit from it.
The CBN, according to Goroyo, has also directed that a fresh loan should be given to the affected farmers so that they could go back to the field and recover their losses.
“RIFAN is working on the Federal Ministry of Agriculture and Rural Development, the Presidency and the CBN to compensate the victims as promised by President Mohammadu Buhari.
“RIFAN is also seeking assistance from the CBN to restructure the loans to alleviate the suffering of the affected farmers and make them go back to the field,’’ he said.
Air Peace launches Port Harcourt NAF Base flights, to operate from OAS terminal ON JANUARY 14, 201910:34 AMIN AVIATION0 COMMENTS By Lawani Mikairu
Air Peace is to commence daily flights into the Nigerian Air Force (NAF) Base in Port Harcourt, Rivers state with effect from r January 18 and would operate from OAS Terminal at the base with state of the art facilities. Air Peace Confirming this development, Air Peace Corporate Communications Manager, Mr. Chris Iwarah said that the airline would operate from the Murtala Muhammed Airport domestic terminal (MMA2), Lagos and the Nnamdi Azikiwe International Airport, Abuja into and out of the Port Harcourt NAF Base.
The operations, he said, would be managed by the carrier’s subsidiary, Air Peace Hopper as part of its no-city-left behind project, targeted at connecting underserved and unserved domestic and regional routes. “We are delighted to announce the commencement of our flight operations from the Murtala Muhammed Airport 2, Lagos and the Nnamdi Azikiwe Airport, Abuja to the Nigerian Air Force Base, Port Harcourt, Rivers State starting from Friday, January 18, 2019. “Our valued customers had yearned for the extension of our flight operations to the Port Harcourt NAF Base and we are quite pleased to respond to their request to enter the route,” the airline said. Meanwhile, the Managing Director and CEO of OAS Helicopters, which operates the OAS Terminal, Captain Evarest Nnaji, said the new terminal was designed and delivered to support airplanes and helicopters for oil and gas flight operations. “It was designed and delivered with the sensitivity and stringent standard associated with oil and gas aviation security and safety in mind, taking into account the reliability and predictability desirous of a facility that supports 24/7 high net worth operations.
Evarest explained that Air Peace is accommodated in the facility in order to enhance the movement of oil and gas workers to and from different parts of the country to the base. “First we conceived a large facility capable of supporting operations way more than we expect to utilise in near future; we therefore have enough space to share. Second, oil and gas operators seem very comfortable with Air Peace judging the number of expatriates you see on Air Peace flights, so when they approached us to use the facility we had no problem accommodating that, and I think they are happy.
The facility is the best you can find around here as it meets all international oil and gas aviation standards which is usually way higher than regular commercial aviation,” Nnaji said. The MD/CEO also said that the facility is still expanding as OAS expects to, within the next 24 months, install a state-of-the-art new generation helicopter maintenance hangar, which, according to him has not been found anywhere else in Africa. “We have not been talking about this because OAS business model will remain on simple achievement milestone, showcasing our mileage of achievements as we accomplish them.
That to me is more dignifying,” Captain Nnaji added. Related Air Peace expands operations to MMA2 December 13, 2018 Air Peace begins inaugural flight from MMA2 January 2, 2019 Air Peace inaugurates Monrovia, Abuja-Accra services Aug. 6 July 25, 2018.