Investor caution over Nigeria’s economy and rising national debt has spurred a selloff in Nigerian Eurobonds, causing the average yield on the country’s US dollar bonds to edge up to 9.60% in the latest trading session.
Market analysts attribute this bearish trend to economic uncertainties, including inflationary pressures, currency depreciation, and a dip in global oil prices, which have weighed heavily on investor confidence.
The uptick in yields comes as foreign portfolio investors have pulled back, diminishing demand for Nigeria’s sovereign Eurobonds. This trend coincides with Nigeria’s renewed appeal to the World Bank for a $750 million disbursement from a previously approved $2.25 billion loan, underscoring the nation’s efforts to stabilise its economy amid fiscal strains.
Nigeria’s inflation rate, which had decelerated for two consecutive months, reversed course in September, spiking due to rising energy costs. Analysts anticipate that inflation could continue its upward trend through the end of the year, further affecting the economic landscape and investor sentiment.
The naira has seen persistent depreciation despite an increase in external reserves, casting doubt on Nigeria’s actual foreign exchange balance after several foreign-currency-backed reserve commitments.
In the African Eurobond market, Monday saw selling pressure on Nigerian and Angolan sovereign bonds, while Egyptian bonds attracted moderate buying interest. This selling spree pushed Nigeria’s bond yields up by two basis points on average across short, mid, and long-term maturities. Analysts predict that the bearish momentum may persist, albeit with a less intense impact, as investors assess the economic outlook.
With a combination of currency depreciation, inflation fears, and increased bond yields, Nigeria’s financial markets continue to face headwinds. The developments in the Eurobond market will be crucial for investors closely monitoring Nigeria’s fiscal and monetary policies.
The 36 states and the Federal Capital Territory (FCT) collectively generate N2.43 trillion in Internally Generated Revenue (IGR) in 2023, reflecting a 26.03% increase from the N1.93 trillion recorded in 2022, according to the National Bureau of Statistics (NBS) IGR report for 2023.
Lagos, the FCT, and Rivers lead in IGR collection, generating N815.86 billion, N211.10 billion, and N195.41 billion, respectively, during this period. In contrast, Taraba, Yobe, and Kebbi report the lowest revenues, with N10.87 billion, N11.19 billion, and N11.74 billion, respectively.
The report highlights that Pay-As-You-Earn (PAYE) contributes the most to tax revenue, amounting to N1.24 trillion, or 63.83% of the total taxes collected. Capital gains tax accounts for the least, generating N5.91 billion. Nationally, total taxes make up about 80% of the overall IGR.
The ten states with the highest IGR in 2023 collectively generate N1.775 trillion in IGR, representing approximately 73.1% of the total IGR generated by the 36 states and the FCT. Notably, seven of the top ten states are located in the South, while three are from the Northern part of the country.
The top ten states with the highest IGR in 2023 are:
Akwa Ibom: This state collects N43.18 billion in total IGR, comprising N36.07 billion in taxes and N7.11 billion from MDAs. Akwa Ibom increases its revenues by 24% from N34.81 billion in 2022.
Oyo: This Southwestern state generates N52.74 billion in IGR, which includes N40.52 billion in taxes and N12.12 billion from MDAs. Oyo’s IGR declines by nearly N10 billion from N62.24 billion in 2022.
Kwara: As the first Northern state on the list, Kwara collects N59.64 billion in IGR, with N23.12 billion in taxes and N36.51 billion from MDAs. Kwara sees a 66.8% increase from N35.75 billion in 2022.
Kaduna: The state’s IGR reaches N62.49 billion in 2023, representing an increase of just over N4 billion from N58.09 billion in 2022, comprising N49.02 billion in taxes and N13.46 billion from MDAs.
Edo: Edo records N64.67 billion in IGR, made up of N46.17 billion in taxes and N18.5 billion from MDAs. The state increases its IGR from N47.45 billion in 2022.
Delta: This oil-rich state generates N90.91 billion from taxes and N23.17 billion from MDAs, totaling N114.08 billion. Delta’s IGR increases by 32.8% from N85.9 billion in 2022.
Ogun: Close to Nigeria’s economic hub, Ogun generates N146.87 billion, consisting of N71.67 billion in tax revenues and N75.19 billion from MDAs. Ogun’s IGR rises from N120.58 billion in the previous year.
Rivers: This Niger Delta state records N195.41 billion, comprised of N186.96 billion in taxes and N8.447 billion from MDAs. Rivers State increases its IGR from N172.82 billion in 2022.
FCT: The nation’s capital increases its revenue by nearly 70% (69.7%), growing from N124.36 billion to N211.10 billion. The FCT does not generate revenues from MDAs.
Lagos: The economic powerhouse of Nigeria generates an impressive N815.86 billion, which includes N704.90 billion in taxes and N110.96 billion from MDAs. Lagos achieves a 25% growth from N615.14 billion in the previous year, surpassing its nearest competitor by N604.76 billion in 2023.
The Nigerian Exchange Ltd. (NGX) has authorized the listing of Halden McCall Plc’s N11.98 billion ordinary shares through introduction. Halden McCall is a leading real estate and hospitality firm. Listing via Introduction signifies that the business met all of the Exchange’s listing requirements.
Dr. Edward Akinlade, Managing Director of Halden McCall, acknowledged this in a statement issued Monday in Lagos. Akinlade stated that the company’s 3.122 billion ordinary shares, valued at N3.84 per share, will be launched on the NGX Main Board on November 20.
According to him, the total value of the shares is N11.98 billion, and the listing is expected to boost the market capitalisation of the NGX by the amount. He stated that the listing would be followed by the company’s presentation of Facts Behind the listing on the Exchange to unfold its current status and future plan to securities dealers.
“The upcoming listing of our company’s shares on NGX is a milestone. We are thrilled to join the NGX community of prestigious companies.
“The listing shall enhance our ability to provide our shareholders with liquidity and accessibility. It will also enable us to tap into the capital market, drive growth and expansion,” he said. He explained that the significant milestone underscored the company’s commitment to transparency, corporate governance and investor confidence.
The managing director stated that the business was brought to NGX by Finmal Finance Services Ltd. and Chartwell Securities, both capital market consultants and stockbrokers.
Halden McCall, a private limited company with an emphasis on real estate, was founded on March 27, 2012, and now owns the renowned Suru Express Hotels and Suru Homes brands throughout West Africa.
Reputable as a significant participant in Africa’s rising markets, the firm has successfully created and sold luxury residential flats in the upper neighbourhood of Ikeja GRA, a higher-class sector of Lagos’ metropolitan region.
The naira has experienced a significant drop in the foreign exchange market amid a lack of sustained FX intervention from Nigeria’s Central Bank. According to FMDQ data, the naira depreciated by 4.42%, closing at ₦1,670.65 per dollar in the official market.
Last Friday, the naira strengthened to ₦1,600 per dollar following three rounds of FX auctions, where authorized banks received a total of $148 million. However, the currency faced renewed pressure on Monday as the exchange rate worsened, with analysts suggesting the naira may be settling around ₦1,600 as a true market value.
This depreciation contrasts with projections anticipating a naira recovery. Goldman Sachs forecasts an exchange rate of ₦1,200 by year-end, while Fitch Ratings estimates ₦1,450 per dollar. In its latest analysis, FSDH predicted the naira might stabilize at around ₦1,560.
Experts attribute the naira’s decline to FX liquidity constraints, with high demand for dollars for international payments placing additional pressure on the currency. “Nigeria should leverage its strong external reserves to defend the naira,” an industry source told MarketForces Africa, “but the Central Bank’s current approach, including a willing buyer, willing seller model, could ultimately harm the currency.”
The Central Bank of Nigeria (CBN) has been making FX sales to authorized banks, but the persistent demand for dollars has offset any stabilizing effect on exchange rates. An investment banker noted, “The naira’s current level may reflect a valuation acceptable to monetary authorities, who continue to rely on intermittent FX auctions.”
Recent data shows Nigeria’s external reserves have risen to $39.365 billion, enough to cover over 15 months of imports. However, analysts point out that a significant portion of these reserves is tied up in government commitments, including FX swaps and derivatives.
In the parallel market, the naira remained stable at ₦1,730 per dollar due to light trading activity. Meanwhile, global oil futures suffered steep declines, with Brent crude trading around $71.83 and WTI at $67.68, following news that Iranian energy facilities were left undamaged in a recent Israeli strike. Gold’s rally paused as U.S. Treasury yields and the dollar gained strength.
Investors are now focusing on upcoming U.S. economic data to gauge the Federal Reserve’s interest rate outlook, with gold trading near $2,754.90 per ounce.
The Northern Governors Forum, led by Gombe State Governor Muhammed Inuwa Yahaya, rejects the proposed derivation-based model for Value Added Tax (VAT) distribution included in a new tax bill currently under consideration in the National Assembly.
In a statement following a meeting of Northern state governors and elders, the Forum expresses concern that the proposed model undermines the interests of Northern states and other subnational entities. The Forum urges National Assembly members to oppose any legislation that threatens the welfare of Northern citizens.
The statement highlights dissatisfaction with the Tax Reform Bill, specifically criticizing the proposed amendment to VAT distribution. The Forum emphasizes that VAT is remitted based on the location of companies’ headquarters rather than where services are rendered, which disadvantages Northern states.
The current VAT distribution formula, as outlined in Section 40 of the VAT Act, allocates 15% to the Federal Government, 50% to States and the Federal Capital Territory, and 35% to Local Governments, incorporating a minimum 20% derivation principle.
In response to perceived inequities in VAT distribution, several Southern states voice their grievances, claiming they receive an unfair share. Notably, in 2021, Rivers State successfully contests the Federal Inland Revenue Service (FIRS) in court, asserting its right to collect VAT within its jurisdiction. This ruling allows states to manage VAT collections, with the FIRS overseeing VAT in the FCT and non-import foreign transactions, while the Nigeria Customs Service handles import VAT. The FIRS appeals this decision.
HSBC Holdings has reported a 10% year-on-year increase in pre-tax profit for the third quarter, reaching $8.5 billion, driven by revenue growth in wealth management and its global banking and markets division.
This follows a recent announcement of an extensive organisational restructuring under CEO Georges Elhedery, who took the helm in September.
“We delivered another good quarter, which shows that our strategy is working,” Elhedery stated, reinforcing the bank’s confidence in its ongoing transformation efforts.
Alongside its earnings announcement, HSBC confirmed it would raise this year’s total shareholder distribution to $18.4 billion and initiate a fresh share buyback programme of up to $3 billion.
Revenue for the quarter rose by 5% on-year to $17 billion, while operating expenses increased by 2%, totalling $8.1 billion. The bank also reiterated plans to complete the sale of its Argentina operations by year-end, a move first announced in April.
In a restructuring that seeks to streamline its global footprint, HSBC will reorganise into four divisions next year: Hong Kong, UK, Corporate and Institutional Banking, and International Wealth and Premier Banking. This shift includes consolidating its Asia-Pacific and Middle East businesses while aligning European and US operations.
Furthering its diversity milestones, HSBC appointed Chief Risk Officer Pam Kaur as Chief Financial Officer, marking the first time in its 160-year history a woman will occupy this role, effective January 1.
HSBC generates the bulk of its revenue in Asia, where it has been enhancing its wealth management services to tap into fast-growing markets. The bank will continue to assess the effects of China’s recent stimulus package, which has spurred volatility and increased client activity in sectors including wealth, equities, and foreign exchange.
Despite the bank’s progress, shareholder pressure remains high. Major investor Ping An last year proposed a spinoff of HSBC’s Asia assets amidst intensifying US-China tensions, although the motion was ultimately dismissed.
HSBC shares in Hong Kong have gained approximately 11% since January.
Equities investors lost more than N448 billion in the Nigerian stock market on Monday due to strong selling rallies. The Nigerian equity market began the new week on a negative trajectory as sell side actors went on rampage, causing key performance indicators to dip by 0.74%.
The Nigerian Exchange All-Share Index fell by 740.01 basis points in today’s trading session to close at 98,708.90 points. The trading results halted last week’s positive streaks. The market experienced profit-taking in some medium- and large-scale stocks.
BUACEMENT, FBNH, and UBA were top stocks targeted for selloffs in the market after a strong weekly positive recorded of N835 billion last week. Stockbrokers said equities market activities were down, as the total volume and total value traded for today dropped by 23.37% and 52.22% respectively.
In its market update, Atlass Portfolios Limited told investors that approximately 353.18 million units valued at ₦4,552.12 million were transacted across 9,417 deals.
CHAMS was the most traded stock in terms of volume, accounting for 23.98% of the total volume traded on NGX. Other volume drivers include UBA (7.65%), ACCESSCORP (6.30%), MCNICHOLS (4.63%), and JAPAULGOLD (4.31%) to complete the top 5 on the volume chart.
UBA emerged as the most traded stock in value terms, accounting for 17.37% of the total value of trades on the exchange. EUNISELL topped the advancers’ chart for today with a price appreciation of 10.00 percent, trailed by LIVESTOCK with +9.97% price uptick.
Other gainers include TRANSCORP (+9.95%), RTBRISCOE (+9.84%), JAIZBANK (+9.28%), NSLTECH (+8.93%) and twelve others.
At the end of the trading session, twenty-eight stocks depreciated, stockbrokers said in a note. BUA CEMENT was the top loser, with a price depreciation of -10.00%. Other decliners include LASACO (-9.79%), REGALINS (-8.93%), JAPAULGOLD (-6.56%), HONYFLOUR (-6.11%), and NEIMETH (-1.57%).
Today, the market breadth closed negative, recording 18 gainers and 28 losers. Additionally, the market sector performance was negative, as all five major market sectors were down. The industrial sector declined by -3.52%, followed by the banking sector, which dropped by -1.47%, while the insurance sector fell by -1.13%.
The Oil & Gas sector also lost -0.29% while the Consumer goods sector slowdown by -0.28%.
Mr Nyesom Wike, Minister of the Federal Capital Territory (FCT), has announced that President Bola Tinubu has authorized a N10 billion Youth Development Fund to empower youth in the FCT.
Wike made the announcement at the opening of the War College/Army Checkpoint Road and other auxiliary roads in Ushafa, Bwari Area Council, Abuja, on Monday.
He stated that the young empowerment plan, which would be launched on Thursday, was consistent with the present administration’s youth empowerment strategy.
The minister stated that the gift was made possible by the president’s concern for women and adolescents.
“It was Mr President who created the Women Affairs Secretariat and the Youth Development Secretariat, and appointed a youth to head the youth secretariat.
“This has never happened in the history of the FCT. Additionally, Mr President insisted that there must be a Youth Development Fund on how to help the youth to grow.
“Mr President has approved, for a start, N10bn to see how the youth will be empowered,” he said.
Wike, who said that the amount had been captured in the FCT’s supplementary budget, urged residents, particularly the youth, to continue to support the Tinubu-led administration.
He said that things would get better. “We are happy there are signs that things will get better,” he added.
Tinubu had, in July, approved the creation of youth development secretariats and appointed Abdullahi Ango as its pioneer Mandate Secretary in August.
Week 18 pool Results 2024: Football pools results, live football pool result today, pool result today Saturday matches, pool results for this week, British and Aussie pool results, football pools results and fixtures, pools panel results today, pool panel results, and live score pool result today. We present the first half-time results of this sort.
Week 18 Pool Results 2024: This week’s football pool results are published on this page as soon as full-time live score confirmation is received. We also announce the results of postponed matches by the football pool panel at halftime, as agreed by them. This Week 18 Pool Results was brought to you by Bizwatch Nigeria
WEEK: 18; SEASON: UK 2024/2025; DATE: 02-November-2024
Manchester United announced on Monday that Erik ten Hag has been dismissed as manager following their 2-1 Premier League loss to West Ham United on Sunday.
Despite signing a contract extension over the summer, Ten Hag has been let go after securing only four wins in the first 13 games of the season. His departure follows a series of disappointing performances, with United currently sitting in 14th place and struggling with just 11 points from nine league matches, sparking concerns about their prospects for a Champions League qualification.
Ruud van Nistelrooy will take over as interim manager and will lead the team for Wednesday’s Carabao Cup fixture against Leicester City at Old Trafford. Van Nistelrooy, a former United star from 2002 to 2006, joins United’s revamped coaching staff, where he will be supported by former Go Ahead Eagles manager Rene Hake, who is set to stay on in his current role.
Sources reveal that club executives lost confidence in Ten Hag’s ability to turn around United’s poor start. Last season’s disappointing eighth-place finish and struggles in early-season Premier League games were key factors in the decision. United’s surprise FA Cup final victory over Manchester City gave Ten Hag another chance, with the club extending his contract until 2026 after an extensive end-of-season review led by new co-owner Sir Jim Ratcliffe and other executives.
Although Ratcliffe and his INEOS team engaged with several managerial candidates, they ultimately chose to keep Ten Hag. Now, as the search for a permanent replacement begins, names like Thomas Tuchel, who was a top summer candidate, and Gareth Southgate have surfaced. However, Tuchel has since committed to managing England, and Southgate has expressed that he does not plan to return to club coaching until next summer.
United’s leadership, including Ratcliffe, INEOS sports director Sir Dave Brailsford, and United sporting director Dan Ashworth, are carefully assessing all options for the club’s next chapter.
CREDICORP, the Nigerian Consumer Credit Corporation, officially opens applications for the Credit Access for Light and Mobility (CALM) Fund. This initiative aims to provide consumer credit to assist Nigerians in converting their vehicles to Compressed Natural Gas (CNG) and acquiring solar home systems through partner financial institutions. Dada Olusegun, Special Assistant to President Bola Tinubu on Social Media, encourages citizens to take advantage of this opportunity.
Nigerians interested in obtaining credit for CNG conversions or solar energy systems can apply for support through the CALM Fund, which is a collaboration between the Ministry of Finance Incorporated (MoFI), CREDICORP, and the Presidential Initiative on Compressed Natural Gas (Pi-CNG).
Transition to CNG
This initiative follows a recent appeal by the Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, urging Nigerians to adopt CNG as a reliable fuel source. He emphasizes that the CNG initiative is here to stay, noting that it is safe, economical, and environmentally friendly. The Minister reveals that the President forms a committee to advance the CNG project and instructs many existing fuel stations to convert to CNG facilities.
“Switching to CNG presents significant cost savings,” Ekpo states. “While a liter of traditional fuel can reach N1,000, CNG costs about N200 per liter, allowing for savings of N800 per transaction.” He highlights the President’s commitment to driving the CNG program throughout Nigeria, emphasizing the country’s rich natural gas resources.
Overcoming Barriers
Despite the advantages of CNG, the initial conversion cost—estimated between N1 million and N1.3 million—remains a barrier for many Nigerians who wish to transition from more expensive fuel sources, especially as traditional fuel prices exceed N1,000 per liter.
The Presidential Compressed Natural Gas Initiative (PCNGi) aims to foster the use of renewable energy in transportation, particularly in light of recent fuel subsidy removals. Since its inception, the federal government, along with state agencies, sets up numerous conversion stations across Nigeria, making it easier for vehicle owners to switch to CNG.
As part of its efforts, the PCNGi introduces the Transport Fare Drop Programme in Abuja, which seeks to promote CNG as a cleaner and more affordable fuel option while helping to lower transportation costs for residents.
The emergence of new technologies and services is not only shaping how people move around urban areas but also promises to tackle long-standing challenges such as congestion, pollution, and high transportation costs. This shift points toward a future of more accessible, efficient, and sustainable urban mobility. In this article, we explore the trends and innovations driving the future of transportation in Nigeria, including electric vehicles, bike-sharing programs, and ride-hailing services.
1. The Rise of Electric Vehicles (EVs)
Nigeria is taking significant steps toward introducing electric vehicles (EVs) to its roads. As awareness of environmental issues grows, EVs are seen as a viable solution for reducing emissions and dependence on fossil fuels. In 2021, Nigeria introduced the first locally assembled electric car, the Hyundai Kona EV, marking a historic milestone in sustainable transportation. Moreover, the government’s National Automotive Design and Development Council (NADDC) has been actively promoting electric mobility by encouraging investment and development in the EV sector.
To support the growth of EVs, infrastructure development is crucial. Initiatives are underway to install charging stations in major cities, with Lagos State leading the way. Recently, Lagos signed an agreement with Stallion Group to establish charging stations, setting the stage for a broader EV network. Although there is still a long way to go before EVs are widely accessible, these initial steps are essential for creating a future that reduces Nigeria’s carbon footprint and promotes cleaner, alternative energy sources.
2. Expanding Bike-Sharing Programs
Bike-sharing services are quickly gaining traction in Nigerian cities as an affordable and eco-friendly alternative to traditional transport modes. Notably, startups like Gokada and MAX are leading the bike-sharing revolution in Lagos and other urban areas. Initially focused on motorcycle ride-hailing, these companies have expanded their services to include bicycle rentals and e-bikes, providing an efficient means for short-distance travel.
Bike-sharing contributes to reduced traffic congestion and pollution in densely populated areas. It also offers a practical option for the last-mile problem, helping commuters complete the final leg of their journey where other transport modes may not be accessible. With cities like Abuja and Lagos increasingly exploring non-motorized transport options, bike-sharing programs are set to play a pivotal role in Nigeria’s future urban transport landscape.
3. The Popularity of Ride-Hailing Services
Ride-hailing platforms have revolutionized urban mobility in Nigeria, offering an on-demand alternative to traditional taxis and buses. Companies like Uber, Bolt, and inDrive have seen substantial growth in cities like Lagos, Abuja, and Port Harcourt, where they provide flexible and reliable transport options. These platforms have also introduced features tailored to the local market, such as cash payments, making them accessible to a broader segment of the population.
Local startups like SafeBoda and OPay have launched their own versions of ride-hailing services, including motorcycle taxis, which offer an efficient and cost-effective solution for navigating Nigeria’s traffic-prone cities. In addition to convenience, ride-hailing services have also created numerous job opportunities, contributing to economic growth. Given their popularity and practicality, these services will continue to play an essential role in urban mobility across Nigeria.
4. The Integration of Digital Payment Systems
With the rise of mobile and digital payment systems, transportation is becoming more accessible and efficient for commuters across Nigeria. Digital payment solutions like Flutterwave and Paystack allow for seamless payments on ride-hailing and bike-sharing platforms, reducing the need for cash transactions. This shift to cashless payments not only improves convenience for riders but also enhances safety for drivers by reducing the risk of carrying large sums of cash.
The integration of mobile wallets and cashless payments in transportation is also aligned with Nigeria’s goal to drive financial inclusion. Many Nigerians, especially those in urban areas, can now access a wider range of mobility options while using digital payments, which simplifies commuting and makes it easier for people to plan their daily movements.
5. The Role of Government Policies and Smart Mobility Solutions
The Nigerian government has recognized the importance of supporting transportation innovations. Policies that support the growth of EVs, promote bike-sharing, and regulate ride-hailing services are creating a conducive environment for technological advancements in urban mobility. The National Automotive Policy, which aims to reduce vehicle import dependence and promote local manufacturing, is part of this strategy to modernize the transport sector. Additionally, Lagos State’s “Smart City” initiatives are geared towards embracing technology-driven solutions to enhance city living, including improved transportation infrastructure.
One promising example of smart mobility in Nigeria is the development of traffic management systems powered by artificial intelligence. These systems help monitor and manage traffic flow in real-time, reducing congestion and making commutes faster and more predictable. For instance, AI-driven traffic lights and surveillance cameras can assist in easing bottlenecks and improve road safety, which are common issues in densely populated cities.
6. Potential for Future Transportation Innovations
Looking ahead, Nigeria is likely to see even more innovations in urban mobility as technology evolves. Autonomous vehicles, while still in the experimental stages worldwide, may eventually find a place on Nigeria’s roads as regulations and infrastructure catch up. The adoption of shared micro-mobility options such as e-scooters, already popular in global cities, is another area with potential for growth in Nigeria.
Moreover, the expansion of public transit systems using renewable energy sources could further transform Nigeria’s transportation network. If properly implemented, innovations like solar-powered buses and electric commuter trains can provide a sustainable alternative to conventional buses and reduce the impact of urban congestion and pollution.
Conclusion
The future of transportation in Nigeria is marked by the promise of new technologies and innovative approaches to urban mobility. From electric vehicles and bike-sharing programs to digital payments and smart mobility solutions, Nigeria is making strides toward a more sustainable, efficient, and accessible transportation system. While challenges such as infrastructure development and regulatory support remain, the foundation for a modern transport network is steadily being laid. As these trends and initiatives continue to evolve, Nigeria is well-positioned to lead a transportation revolution that meets the needs of its rapidly urbanizing population.
The Nigerian stock market continues its upward momentum, with the All-Share Index (ASI) gaining 1.41% last week to close at 99,448.91 points, edging closer to the 100,000-point threshold. This positive movement reflects strong performances in key sectors, especially financial services and oil and gas.
Market capitalization rose 1.41% to N60.261 trillion from N59.425 trillion, fueled by notable gains in stocks like EUNISELL Interlinked (20.69%), United Bank for Africa (18.50%), and Unilever Nigeria (18.42%). Other significant performers included Abbey Mortgage Bank, Oando, and Coronation Insurance.
In sector performance, the Financial Services Industry dominated trading, accounting for 54.91% of total volume and 27.62% of value, with 1.176 billion shares valued at N23.739 billion in 19,570 deals. The Consumer Goods Industry and Oil and Gas Industry followed, with 366.923 million shares and 228.439 million shares traded, respectively.
The top traded stocks by volume—United Bank for Africa, Champion Breweries, and Japaul Gold—contributed significantly to overall trading, representing 38.7% of the volume and 14.33% of value traded.
Weekly Market Highlights:
A total of 2.142 billion shares were traded, marking a 48.03% increase from the previous week.
The NGX Growth Index surged 5.59%, reflecting strong interest in growth stocks.
The NGX Oil & Gas Index climbed 3.95%, driven by gains in Oando.
The NGX Banking Index rose 7.86%, with UBA leading the sector’s rally.
The NGX Pension and Insurance Indexes also saw gains, while the NGX Industrial Goods Index posted a modest rise of 0.10%.
Top Gainers and Losers:
Gainers:
EUNISELL Interlinked: +20.69%
UBA: +18.50%
Unilever Nigeria: +18.42%
Other notable gainers included Abbey Mortgage Bank, Oando, and Coronation Insurance.
Losers:
Dangote Sugar: -10.13%
John Holt: -9.84%
Secure Electronic Technology: -9.68%
Additional declines were seen in Regency Assurance, International Breweries, and MTN Nigeria.
Corporate Announcements: Several companies, including Airtel Africa, Unilever Nigeria, Dangote Cement, and Guinness Nigeria, released financial results for Q3 2024, which are expected to influence investor sentiment.
Market Outlook: Investors are likely to maintain a cautious yet optimistic approach as the market awaits updates on Oando Plc’s trading status and reviews more Q3 reports. If current momentum continues, the All-Share Index could soon surpass the 100,000-point milestone.
Increased demand for Nigeria’s sovereign Eurobond brought the average yield down in the foreign market, according to dealers, despite double-digit inflation and interest rates in the domestic economy.
Cowry Asset Limited informed investors over the weekend that buying activity at the short, mid, and long ends of the yield curve resulted in a 13 basis point drop, resulting in an average yield of 9.58%..
Analysts said the Eurobonds market started the week on a pessimistic note, led by huge sell-offs in African bonds, lower prospects for aggressive Fed rate reduction, and increased political instability.
However, confidence resurfaced following constructive conversations between Angola and the International Monetary Fund regarding a new loan program, as well as the Finance Minister’s statement that there will be no Eurobond sales this year.
This shift boosted Angola’s Eurobonds, which influenced Nigerian and Egyptian bonds, AIICO Capital Limited said in a note.
At the close of the week, yield in the SSA Eurobond market closed at 8.7%, excluding Ghana papers due to the delisting of its old tickers following debt restructuring measure, according to Afrinvest Capital Limited.
Bloomberg reported that Ghana’s restructured Eurobonds rose on their second day of trading after Fitch Ratings assessed them as out of default, assigning a ‘CCC+’ rating.
Fitch’s assessment reflects Ghana’s expected credit profile following the whole debt restructuring, with declining debt driven by fiscal consolidation. However, liquidity risks remain elevated due to high interest spending relative to revenue.
The restructured bonds offer investors the option of taking a 37.0% haircut and receiving two new bonds maturing in July 2029 and 2035, with a 5.0% interest rate until 2028, stepping up to 6.0% thereafter, or opting for a 1.5% interest rate on bonds maturing in January 2037.
Afrinvest Limited said performers in the SSA Eurobond space were the Gabon 2024 and South Africa 2041 bonds, which led the market with yield declines of 113bps and 22bps week on week, respectively
In the foreign exchange market, the Naira appreciated by 0.07%, closing at ₦1,600.00 per dollar at the official market. In the Parallel market, the Naira closed at ₦1,730 to the dollar.
Fitch Ratings has upgraded Ethiopia’s Long-Term Local-Currency (LTLC) Issuer Default Rating from ‘CCC-’ to ‘CCC+’, signaling an improvement in the country’s financial outlook. This change reflects Ethiopia’s easing financing pressures and a more stable macroeconomic environment, Fitch noted in its latest rating announcement.
The upgrade follows Ethiopia’s strides in financial reform, particularly after the National Bank of Ethiopia (NBE) introduced a market-based exchange rate in July 2024, causing a significant depreciation in the official exchange rate. This adjustment has aligned the official and parallel market rates, helping to increase foreign exchange access for businesses and stimulating export growth.
In a further boost to economic stability, the International Monetary Fund (IMF) approved a four-year Extended Credit Facility for Ethiopia, with an initial $1 billion disbursement from a total of $3.4 billion. The World Bank also pledged $3.75 billion, with both funding packages expected to reduce reliance on domestic borrowing.
Fitch reported that Ethiopia’s fiscal deficit has narrowed to 2% of GDP for fiscal year 2024, with the government implementing a range of reforms to curb inflation and enhance fiscal responsibility. Measures include NBE’s adoption of a 15% policy rate and the transition to market-driven Treasury bill auctions to handle domestic financing needs.
Despite these positive developments, Ethiopia remains in default on its foreign-currency debt, including an outstanding $1 billion Eurobond. However, the country has made headway in debt restructuring under the Common Framework, securing an interim standstill agreement with key creditors, including China, for 2023-2024. This temporary arrangement provides $1.3 billion in relief, with formal debt restructuring negotiations expected to conclude by the end of 2024.
Fitch projects that Ethiopia’s official international reserves, currently around $1 billion, will increase to $4.5 billion by 2026, enhancing the nation’s financial resilience. This forecast depends on Ethiopia’s continued progress in reform and debt restructuring efforts, as well as the effectiveness of its new financial strategies in stabilizing the economy and fostering growth.
Alberta’s job market is shifting to meet emerging needs, creating strong opportunities in several sectors for both local and international workers. Immigration News Canada (INC) recently highlighted occupations set to grow significantly by 2033, offering valuable insights for students, job seekers, and employers adapting to Alberta’s evolving economy.
INC’s report on Alberta’s job outlook details trends influenced by economic shifts, demographics, and education. It forecasts shortages in specific roles while noting potential oversupplies in others, helping stakeholders make informed career and workforce decisions.
Key High-Demand Occupations
Registered Nurses and Psychiatric Nurses The aging population drives demand for these essential healthcare providers. Average Salary: $80,000 – $100,000 annually.
Nurse Aides, Orderlies, and Patient Service Associates Demand for support roles in healthcare grows as long-term care needs increase. Average Salary: $40,000 – $55,000 annually.
Computer Systems Developers and Programmers With ongoing digitization, Alberta faces a shortage of over 4,000 tech professionals by 2033. Average Salary: $75,000 – $115,000 annually.
Information Systems Specialists Data and IT infrastructure are vital for Alberta’s expanding businesses, with over 4,000 positions expected by 2033. Average Salary: $70,000 – $95,000 annually.
Licensed Practical Nurses (LPNs) Demand rises as healthcare facilities expand to meet population needs. Average Salary: $55,000 – $75,000 annually.
Paramedics and Emergency Medical Technicians (EMTs) Population growth and urbanization drive demand, with a shortage of over 4,000 roles projected. Average Salary: $60,000 – $85,000 annually.
Electricians Alberta’s construction boom spurs the need for skilled electricians, with more than 4,000 positions anticipated. Average Salary: $65,000 – $90,000 annually.
Material Handlers E-commerce growth fuels demand for logistics roles, with over 4,000 needed by 2033. Average Salary: $35,000 – $55,000 annually.
Business Management Consultants Companies seek consultants to address economic challenges, projecting over 4,000 vacancies. Average Salary: $80,000 – $120,000 annually.
Software Developers and Programmers Alberta’s tech growth increases demand for skilled developers, with over 4,000 roles by 2033. Average Salary: $75,000 – $115,000 annually.
Factors Influencing Alberta’s Job Market
According to INC, five primary factors influence Alberta’s evolving workforce needs:
Aging Population – Rising healthcare demand for roles like nurses and EMTs.
Tech Advancements – Increasing needs for IT and data professionals due to digital transformation.
Economic Diversification – Shifts toward sectors like healthcare, tech, and logistics.
Education and Training – Alberta’s education system is aligning graduates with high-demand fields.
Regional Needs – Areas such as Calgary and Edmonton will experience varied demand, particularly in healthcare, IT, and construction.
While Alberta diversifies its economy, the oil sector still plays a key role, particularly in regions like Wood Buffalo and Cold Lake. As Alberta’s job landscape shifts, individuals are encouraged to align career goals with these trends to seize emerging opportunities in healthcare, tech, construction, and logistics.
In a significant move to boost Nigeria’s private sector, the Central Bank of Nigeria (CBN) and the International Finance Corporation (IFC), a member of the World Bank Group, have signed an agreement aimed at increasing local currency financing for critical sectors.
This initiative is expected to empower private businesses by providing affordable long-term financing in Nigerian Naira.
According to a statement from the CBN’s Acting Director of Corporate Communications, the partnership will enhance financing for sectors crucial to Nigeria’s economic development, such as agriculture, housing, infrastructure, energy, small and medium enterprises (SMEs), and the youth and creative economy.
IFC Director Sidi-Ali stated that the IFC plans to inject over $1 billion in financing in the coming years to support these sectors. She highlighted that many of these sectors depend on local currency financing, making this collaboration with the CBN an essential step toward expanding access to funds within Nigeria.
“This partnership will allow IFC to manage currency risks and scale up its investments in the Nigerian Naira,” she noted.
CBN Governor Yemi Cardoso hailed the partnership as a transformative step that would provide Nigerian businesses with access to local currency loans at viable rates. Cardoso described the agreement as a testament to the CBN’s dedication to implementing innovative development initiatives that go beyond traditional interventions, thereby serving as a catalyst for economic growth and diversification in Nigeria.
IFC’s Managing Director, Makhtar Diop, added that local currency financing is crucial for the growth of small businesses in Nigeria, as it enables better currency risk management and fulfills the increasing demand for diverse funding options. Diop further emphasized the importance of this collaboration, noting that with IFC’s active $2.13 billion portfolio in Nigeria—the second-largest in Africa—local currency financing remains a top priority.
The IFC, recognized as the world’s largest development institution focused on the private sector, has committed $56 billion to private companies in developing countries this fiscal year alone, using its expertise to create markets and foster economic opportunities globally.
This partnership marks a pivotal step in unlocking the potential of Nigeria’s private sector, driving sustainable growth, and fostering job creation across the nation.
The exchange rate between the Naira and the US dollar, according to the data released on the FMDQ Security Exchange, the official forex trading portal, showed that the Naira closed at 1710.00 per $1 on Thursday, October 24, 2024. Naira traded as high as 1635.00 to the dollar at the investors and exporters (I&E) window on Wednesday
How much is a dollar to naira today in the black market?
Dollar to naira exchange rate today black market (Aboki dollar rate):
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N1696 and sell at N1710 on Sunday 27th October 2024, according to sources at Bureau De Change (BDC).
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN)
Black Market Exchange Rate Today
Buying Rate
N1696
Selling Rate
N1710
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN)
CBN Rate Today
Buying Rate
N1634
Selling Rate
N1635
Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.
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South African retailer Pick n Pay announces its departure from the Nigerian market, selling its 51% stake in a joint venture with A.G. Leventis as part of its restructuring strategy. CEO Sean Summers confirms this decision on Monday, stating that the company’s exit aligns with a broader plan to focus outside Nigeria.
Pick n Pay, which entered Nigeria just four years ago with two stores, had initially ventured into the market despite other large retailers’ exits. The decision comes as Nigeria’s federal government seeks to attract foreign investment to boost economic stability.
Challenges Facing Consumer Goods Companies in Nigeria
Consumer goods companies in Nigeria are grappling with high inflation, which continues to erode purchasing power, and a significantly weakened naira. In June 2024, another South African retailer, Shoprite, shut down its Abuja store, citing difficult business conditions. This closure follows an earlier exit from Kano in January.
Rising costs and inflation pressures pose major profitability challenges for retail operators in Nigeria, pushing several companies—including small and medium-sized businesses—out of the market. Recently, Jumia also shut down its food delivery service, citing similar difficulties in achieving sustainable operations.
Wave of International Company Exits in Nigeria
Pick n Pay’s exit follows a trend of foreign companies withdrawing from Nigeria due to currency instability and operating challenges. Recently, Diageo sold its majority stake in Guinness Nigeria Plc, while other multinationals like GSK, Procter & Gamble, and Sanofi have also left, citing constraints like foreign exchange shortages and rising energy costs. Over the past 18 months, inflation has reached a 28-year high at 34.19%, and the naira has lost over 100% of its value in the wake of forex market changes, pushing several global companies to reconsider their presence in Nigeria.
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