Cloned Nigerian Anchor

Author: Chike Ozohili

  • Nigeria’s local equities gain N262bn 

    Nigeria’s local equities gain N262bn 

    The local equity market on Monday opened the week on a positive note, gaining N262 billion following profits recorded by BUAFoods, Dangote Sugar, Livestock Feeds, Transnational Corporation of Nigeria among others.

    The market capitalisation of listed equities appreciated by 0.74 per cent to N35.684 trillion from N35.422 trillion reported the previous day.

    The NGX All Share Index (ASI) also appreciated by 481.32 basis points to 65202.41 points from 64721.09 points traded on Friday.

    An analysis of the investment showed that JohnHolt led gainers table with 9.66 per cent to close at N1.59 per unit, SCOA Plc followed with a gain of 9.40 per cent to close at N1.28 per unit BUAFoods added 9.29 per cent to close at N152.90 per share, Mansard added 6.85 per cent to close at N3.90 per unit, Livestock gained 6.82 per cent to close at N1.88 per share.

    On the contrary, Tantalizer recorded the highest loss in per cent age terms, shedding 10 per cent to close at N0.36 per share, Omatek trailed with a loss of 9.09 per cent to close at N0.30 per unit, Jaiz Bank fell by 7.78 per cent to close at N1.54 per unit, Chi Plc failed by 7.61 per cent to close at N0.85 per share, Cornerstone Insurance dipped by 6.15 per cent to close at N1.22 per unit.

    The volume of trades declined by 305.985 million, representing 56.91 per cent as investors traded 231.599 million shares valued at N3.992 billion in 5494 deals against 537.584 million shares worth N9.394 billion exchanged hands the previous day in 5893 deals.

    Transactions in the shares of Transnational Corporation of Nigeria (Transcorps) led market activities during the day with 36.837 million shares valued at N159.312 million, Universal insurance followed with account of 16.989 million shares cost N3.611 million, GTCO Plc traded 15.442 million shares worth N563.447 million, Jaiz Bank traded 14.464 million shares cost N22.895 million, Chi Plc exchanged 12.754 million shares valued at N10.690 million.

  • Lokpobri vows to ensure Nigeria meets OPEC’s production quota

    Lokpobri vows to ensure Nigeria meets OPEC’s production quota

    The new Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobri, has said his mission to the ministry is to ensure Nigeria’s crude oil is ramped up on a sustainable basis. 

    Lokpobri, who said this when he met chief executives of the ministry on Monday in Abuja after his swearing-in at the Presidential Villa, added that he was not in the ministry to sit in the office but rather to ensure that Nigeria meets its Organisation of Petroleum Exporting Countries (OPEC) production quota. 

    According to him, everybody has to work together to increase production. 

    “This is not time for speeches. There is only one agenda that I have come to this ministry to achieve and that is to ramp up crude oil production on a sustainable basis for the benefit of all Nigerians,” Lokpobiri said.

    Lokpobri, who will be in charge of ensuring the country’s crude oil production meets OPEC’s quota, stressed that he is a creek boy and would ensure through constant visit to the creeks that he provides the leadership that would ramp up crude production. 

    According to him, with everybody working together, “we will write a new story for the oil industry,” he added. 

    Earlier, the Minister of State Petroleum Resources (Gas), Ekperikpo Ekpo, said that the full utilization of the Compressed Natural Gas (CNG) by Nigerians would help cushion the adverse effect of petrol subsidy removal by the government. 

    Ekpo insisted that with its abundance of gas deposits, it was time the country maximises its use in order to provide a better life for the citizenry. 

    He said he would with collaboration with stakeholders work strategically to translate Nigeria’s enormous gas resources into reality to address the challenge of power. 

    In his introductory remarks, the Permanent Secretary in the Ministry, Gabriel Aduda said the breakdown of the minister is part of the requirement of the Petroleum Industry Act of 2021. 

    “This shift has ushered in a new era of transparency and independence,” he said.

    He noted that with the present challenge of ramping up production, the new leadership the two ministers will bring to the sector will help the country navigate the challenge.

  • Tinubu rejigs ministerial portfolios, renames Ecological Ministry

    Tinubu rejigs ministerial portfolios, renames Ecological Ministry

    President Bola Ahmad Tinubu has initiated a comprehensive restructuring of the forthcoming Federal Cabinet, aimed at optimizing ministerial portfolios and enhancing government efficiency.

    This significant move was announced by Ajuri Ngelale, the Special Assistant to the President on Media and Publicity, through a formal press release.

    One of the notable changes involves the redeployment of Engr. Abubakar Momoh, who was initially assigned to the Federal Ministry of Youth and Sports Development. He will now assume responsibilities within the Federal Ministry of Niger Delta Development.

    This strategic reallocation of personnel aims to leverage Momoh’s expertise in a way that aligns with the nation’s development priorities.

    Meanwhile, the Federal Ministry of Youth and Sports Development is set to undergo a transition as it awaits the assignment of a new Minister-Designate. This decision underscores the administration’s commitment to ensuring that every ministry is led by capable and qualified individuals.

    Furthermore, the Ministers-Designate earmarked for the Federal Ministries of Transportation, Interior, and Marine & Blue Economy have experienced a noteworthy reshuffling of their designations:

    (A) H.E. Adegboyega Oyetola, who was initially positioned for another role, will now bring his leadership and expertise to the forefront as the Honourable Minister of Marine & Blue Economy. This adjustment reflects the President’s focus on sustainable maritime and economic development.

    (B) Hon. Bunmi Tunji-Ojo has been reassigned to the role of Honourable Minister of Interior. This shift recognizes his potential to contribute significantly to the governance and security aspects of the ministry.

    (C) Hon. Sa’idu Alkali, who was previously designated for another ministry, will now take the reins as the Honourable Minister of Transportation. This reassignment aligns with his experience and capabilities in infrastructure and transportation management.

    Moreover, in a move to streamline coordination and expertise, both Ministers of State within the Oil & Gas sector have been incorporated into the Federal Ministry of Petroleum Resources. Their new roles are as follows:

    (i) Sen. Heineken Lokpobiri has assumed the mantle of Hon. Minister of State (Oil), Petroleum Resources, leveraging his knowledge of the oil sector to contribute to its growth and stability.

    (ii) Hon. Ekperipe Ekpo now holds the position of Hon. Minister of State (Gas), Petroleum Resources, bringing his insights to the development of the gas sector.

    The President’s endorsement has also led to the renaming of the Federal Ministry of Environment and Ecological Management.

    It will now be known as the Federal Ministry of Environment, reflecting the ministry’s central role in safeguarding Nigeria’s environmental sustainability.

    These transformative adjustments, implemented through the directives of the President, are set to take immediate effect.

  • High operating costs weighing down manufacturing coys’ revenue

    High operating costs weighing down manufacturing coys’ revenue

    The harsh operating environment experienced in the country which worsened with scarcity of foreign exchange, removal of fuel subsidy have impacted negatively on the performance of the manufacturing industry as companies listed under the sector recorded 351 per cent losses in the first half of 2023.

    Investors in the nation’s Stock market said that shortages in forex supply coupled with inflationary pressure, currency redesigned of the Central Bank of Nigeria and other challenges witnessed from importing raw materials have affected the profit margin of manufacturing companies directly.

    They said that all these joined together resulted in a decline in purchasing power and sales volume and revenue of the companies in the first six months of their operations.

    This development according to them is currently impacting negatively on the share price of these listed firms under the manufacturing sector as most of the stocks are currently undervalued following negative sentiments that have enveloped demand for the stocks.

    Specifically, a financial analyst, Mr Iheanyi Egbue said that the huge import levies, exchange rate volatility, haulage cost of imported materials and heavy dependence on alternative source of power has increased cost of production in the sector by almost 30 per cent.

    Egbue said that the federal government failure to adopt a strategy that would encourage investment and development in the manufacturing sector mayerode shareholders 2023 full year dividend as the operating environment is currently very harsh and full of uncertainty.

    Another investor, Mrs Florence Okeke said that with removal of fuel subsidy, introduction of floating of exchange rate, manufacturing firms have experienced an unexpected high operating cost with the attendant reduction in profitability as operating costs are expenses associated with the maintenance and administration of a business on a day to day basis.

    She said with the high cost of living, the demand for goods and services have reduced drastically and as result most consumer goods companies in Nigeria have continued to find it difficult to weather the storm.

    For instance, a look at the performance of Cadbury Nigeria Plc listed under manufacturing segment of NGX showed that it declared loss before tax of N14.52 billion in the first half of the financial year ended June 30, 2023 against profit before tax of N3.35 billion reported in the same period of 2022. The company reported a loss after tax of N14.54 billion compared to profit after tax of N2.34 billion in the corresponding period of 2022.

    Also, Nestlé Nigeria Plc posted a loss after tax of N49.9 billion, a 280 per cent decline over N27.7 billion reported in the same period of 2022.

    The company recorded revenue of N261.8 billion in the first half of 2023, representing a 17.7 per cent increase compared to its performance in the same period of 2022.

    Nigerian Breweries Plc in the same vein reported N85.26 billion Net loss on foreign exchange transactions within the period under review from N7.28 billion in preceding year.

    The company also declared a loss of N47.6 billion in the first half of 2023 representing 348 per cent compared to N18.74 billion achieved in H1 2022.

  • NLNG sustaining gas exports, local supplies amid Force Majeure challenges -Odeh

    NLNG sustaining gas exports, local supplies amid Force Majeure challenges -Odeh

    Amidst reports of Force Majeure, the Nigeria Liquified Natural Gas (NLNG) has emphatically confirmed the uninterrupted flow of sustainable gas exports and local supplies from its Rivers State facility.

    This confirmation directly refutes recent news articles that suggested otherwise.

    Andy Odeh, the General Manager of External Relations and Sustainable Development at NLNG, labeled the aforementioned reports as both false and misleading.

    Odeh clarified that the NLNG’s operational activities on Bonny Island remain active, despite the prevailing Force Majeure.

    He added that the NLNG’s cargo loading operation also continues without interruption.

    “The latest cargo from the Bonny plant sailed on 17th August 2023 to the St. Croix, U.S. Virgin Islands, carrying 140,000 M3 of LNG,” Odeh said.

    He said the NLNG remains committed to collaborating with key stakeholders to minimise the impact of the consequent gas supply shortage.

    The declaration of Force Majeure came as a result of the disruption in the availability of major liquids evacuation pipelines caused by acts of sabotage and vandalism by unidentified parties.

    In spite of this setback, the NLNG facility steadfastly continues the production of both Liquified Natural Gas (LNG) and Liquified Petroleum Gas (LPG).

    These outputs are proportionate to the volume of feed gas received from their upstream gas suppliers. This concerted effort caters to the demands of the domestic market.

    In the face of the ongoing gas supply shortage brought about by the disruptions in upstream gas supply chains, Odeh reiterated the NLNG’s unwavering commitment to collaborating closely with key stakeholders. This collaborative approach aims to mitigate the adverse impacts stemming from the gas supply shortage.

    Ultimately, NLNG’s confirmation of the continuous gas export and local supply operations serves as a reassurance to stakeholders and the general public alike. Despite challenges, the NLNG remains steadfast in its commitment to maintaining a stable supply of gas and fostering effective collaboration to navigate these complex circumstances.

  • Tinubu happy with $3bn NNPCL/Afreximbank’s naira rescue deal

    Tinubu happy with $3bn NNPCL/Afreximbank’s naira rescue deal

    President Bola Tinubu has expressed happiness with the $3 billion in crude-for-cash funding secured from the African Export-Import Bank (Afreximbank) by the Nigerian National Petroleum Corporation (NNPC) Limited, saying it will give a breather to the foreign exchange market. 

    The NNPC Limited and Afreximbank recently signed a commitment letter and Term sheet for the facility which is expected to support the federal government in its ongoing fiscal and monetary policy reforms to stabilise the forex market.

    Sources at the villa said the President was happy that the deal has been able to crash the dollar and allow the Naira to gain some value. 

    The nation has battled foreign exchange liquidity leading to the steep fall of the Naira since the unification of the foreign exchange windows by the Central Bank of Nigeria in June. The crash in the value affected the economy, triggering price hikes in the country and impacting access to imported raw materials by real industry operators. The effect is exemplified in the July inflation which peaked at 24.08 per cent.

    The source said the President and his team of economic advisers are hopeful that the deal will help the government breathe fresh air into the sluggard economy, make inflation recede and crash the dollar which has risen to an unprecedented N950 to the $ in the parallel market. 

    The $3 billion loan according to the oil giant is expected to support immediate disbursement that will enable the NNPC Ltd to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market.

    The Presidency source added that the “quick and proactive steps taken by the NNPC Limited show that this government has the capacity to turn around Nigeria’s economy positively in a short time. What the government needs right now is for forthright thinking appointees of the president to come up with novel ideas like this to better the economy”.

    “Nigerians, he said, are impatient with government and as such Tinubu’s government doesn’t need laybacks or people with nothing to offer in the saddles of key leadership positions in government. People are impatient for the government to perform, and as such there are no rooms for trial-and-error ministers and heads of agencies” the source further stated.

    The deal comes about 17 months after the NNPCL secured a $5bn funding commitment from the African Export-Import Bank (Afreximbank) to finance major investments in Nigeria’s upstream sector.

    The loan secured by the NNPCL is the fourth transaction involving the oil company and AFREXIM Bank over the last three years. It goes further to consolidate the mutual relationship between the two entities. 

    Both Nigeria and NNPCL are shareholders in Afreximbank, with the sole purpose of enhancing investments and growing prosperity in Africa.

    The agreement for the loan which was sealed on Wednesday in Cairo, saw the Group Chief Executive Officer of NNPC Ltd, Mele Kyari signing for the National Oil Company while George Elimbi, Executive Vice President Afreximbank signed for the bank.

  • Revised CMMP tops discussion as SEC, stakeholders hold Q2 CMC meeting

    Revised CMMP tops discussion as SEC, stakeholders hold Q2 CMC meeting

    The Securities and Exchange Commission (SEC) is set to hold the Second Capital Market Committee (CMC) meeting in 2023.

    The meeting is scheduled to be held virtually through Zoom with key stakeholders in the capital market on August 24, while the usual interface with the press, on the outcome of the CMC meeting, will take place on Friday, August 25.

    The SEC and the capital market community would discuss the implementation of the Revised Capital Market Master Plan, Fintech and commodities trading ecosystem roadmap as well as other matters relating to the capital market and the economy at its Second Capital Market Committee (CMC) meeting in 2023.

    The CMC is an industry-wide committee comprising members of the SEC, representatives of capital market operators and trade groups and other stakeholders. It was primarily established to serve as a medium for the exchange of ideas among market stakeholders as well as an avenue for providing feedback to the SEC on how to continuously address challenges, improve market operations and enhance the regulatory framework.

    According to the SEC, “Attendance to both events is strictly by invitation. Invited participants will be sent unique links with which to join the meeting.

    “During the meeting, issues bordering on implementation of the Revised Capital Market Master Plan, implementation of the Fintech Roadmap, the commodities trading ecosystem roadmap as well as other salient matters relating to the capital market and the economy would be discussed.”

    The Commission unveiled the Revised Capital Market Master Plan (CMMP) in November 2022 which serves as a blueprint to harness opportunities to better position the capital market as the engine of economic growth and development. The SEC had previously implemented the initiatives of the 10 Year Capital Market Master Plan, which were designed to reposition the Nigerian Capital Market as an attractive investment destination and a critical facilitator of capital formation for the accelerated growth and development of the Nigerian economy. 

    Some of the CMMP initiatives that have been implemented include; Direct Cash Settlement, regularisation of multiple subscriptions, dematerialisation of share certificates, and the introduction of the e-Dividend Management System.

    The CMMP initiatives have helped in promoting transparency, protecting investors and enhancing market confidence, while also ensuring that only fit and proper persons are allowed to operate in the capital market.

    The objectives of the CMMP are also in consonance with the Federal Government’s economic strategy, focused on deepening the capital market and encouraging a private sector-led economy to drive inclusive growth.

    Expected participants at the CMC meeting include Chief Executive Officers (CEOs) of all registered capital market firms (i.e. Broker/Dealers, Investment Advisers, Custodians, Fund/Portfolio Managers, Receiving Banks, Issuing Houses, Rating Agencies, Registrars, Reporting Accountants, Trustees, and Capital Market Consultants, etc.); Chief Executive Officers of Nigerian Exchange Group (NGX), National Association of Securities Dealers (NASD); FMDQ Group Plc; Africa Exchange Holdings (AFEX); Nigeria Commodity Exchange (NCX); Central Securities Clearing System (CSCS); as well as representatives of relevant financial sector regulatory agencies, among others.

  • Rising demand pressures spark global food concerns –FAO

    Rising demand pressures spark global food concerns –FAO

    The Food and Agriculture Organisation of the United Nations (FAO) has warned that India’s 20 July prohibition of non-parboiled Indica exports has fostered expectations of greater sales in other origins, amplifying upward pressure already exerted on prices by seasonally tighter supplies and Asian purchases.

    The Un Agency in its July edition of its Food Price Index, added that this upward pressure of rice prices raises substantial food security concerns for a large swathe of the world population, especially those that are poorest and who dedicate a larger share of their incomes to purchase food.

    It also warned that export restrictions can bear adverse consequences on production, consumption and prices that last beyond the duration of their implementation and risk exacerbating high food domestic inflation in many countries.

    The report revealed that global food commodity prices rose in July, influenced by the termination of the Black Sea Grain Initiative and new trade restrictions on rice.

    The report which tracks monthly changes in the international prices of globally-traded food commodities, said food prices averaged 123.9 points in July, up 1.3% from the previous month while 11.8% below its July 2022 level.

    It states that the increase was driven by a sharp jump in the FAO Vegetable Oil Price Index, which rose 12.1% from June after seven months of consecutive declines. International sunflower oil prices rebounded by more than 15% in the month, due mostly to renewed uncertainties surrounding the exportable supplies after the Russian Federation’s decision to end implementation of the Black Sea Grain Initiative. World prices for palm, soy and rapeseed oils increased on concerns over output prospects in leading producing countries.

    The FAO Cereal Price Index declined by 0.5% from June, driven by a 4.8% drop in international coarse grain quotations due to increased seasonal supplies of maize from ongoing harvests in Argentina and Brazil and potentially higher-than-anticipated production in the United States of America. However, international wheat prices rose by 1.6%, their first monthly increase in nine months, due to uncertainty over exports from Ukraine as well as continued dry conditions in North America.

    The FAO All Rice Price Index increased by 2.8% on the month and 19.7% on the year to reach its highest nominal level since September 2011.

  • Fraudsters fleece Nigerian banks of N9.5bn in 7 months -Report

    Fraudsters fleece Nigerian banks of N9.5bn in 7 months -Report

    The Nigeria Electronic Fraud Forum reported at the weekend said that Nigeria’s banking industry lost about N9.5 billion to electronic frauds between January and August 2023.

    According to the forum, the digital infrastructure in the financial system is still subject to manipulation by cybercriminals.

    Worried by the negative implications of the surging rate of e-fraud for the economy, the Forum has called for new measures and increased collaboration of all stakeholders, particularly the banks and the Ministry of Communications, Innovation and Digital Economy, to combat the rising trend.

    The Forum made this disclosure at its 3rd Quarter 2023 meeting in Lagos with the theme “New Strategies for Combating e-Fraud in a Cashless Environment”.

    Delivering his paper at the meeting, the Managing Director of Nigeria Inter-Bank Settlement System (NIBSS), Premier Oiwoh, reflected on the disturbing trend of e-frauds in the country, especially through betting platforms.

    The NIBSS boss, who was represented by the Chief Risk Officer at the meeting, Temidayo Adekanye, said: “Recently, we had the cashless policies from CBN, which was incurring a dramatic increase in the volume of transactions in the industry which variably as the impact of the volume of fraud in the industry itself. Now, the increased efficiency has also meant that fraud has dramatically increased across industry.

    “For Q1 2023, the total fraud reported through the industry forum portal was at N5.1 billion. For fraud trends over the last five years, in 2019, we’re looking at about N3 billion and currently 2023, we are looking at about N9.5 billion to date. Fraud losses have increased dramatically over the last five years.

    “So, as you can see also from the current perspective, from January to July 2023, there has been a slight jump between June and July, a 39 per cent increase with 8,649 with the actual fraud losses in July 2023, we’re looking at N1.2 billion which is a 54 per cent increase over the period. Now as you can see from January in general, we recorded about N2.7 billion in actual fraud losses.”

    “What we see most is the fact that the primary channels are the betting platforms. So once the money hits the betting platform or a wallet account or in some cases POS agents once it’s cashed out, it is a black hole. There is no way you can recover that money. We’re talking about potentially five per cent recovery rates across the industry. So, we all have to identify those betting and wallets accounts, POS agents, cryptocurrency accounts, and in some cases purchases,” Oiwoh added.

    In his remarks at the meeting, the NeFF Chairman and CBN’s Director, Payment Systems, Musa Jimoh, said: “Today, we are here to continue that conversation to look at new strategies by which we can combat E-fraud. If we don’t combat the cyber criminals, they will weigh us down and disrupt the entire system. So, we all need to work together to see how we can make life extremely difficult for cybercriminals.

    “We need to look at new ways, new techniques, and more efficient manners by which we can improve and guard against the banking and payment infrastructure and educate ourselves on how we can safeguard our bank credentials or tokens and all the information that the banks have provided to us to safeguard.