The Nigerian naira performed mixedly in the foreign exchange market, with dropping external reserves and a weekly decline in US dollar volume. The exchange rate improved little in the official foreign exchange market but declined in the informal currency market.
Data revealed that gross foreign reserves continued to fall despite a string of sequential inflows that brought the balance to an 18-month high. According to data from the Central Bank of Nigeria’s (CBN) website, the country’s gross external reserves fell for the third week in a row.
The balance of external reserves fell by US$63.50 million week-on-week to US$36.44 billion, according to CBN platform statistics. Last week, the naira achieved its highest single-day appreciation of 3.1% on Wednesday, the best daily performance seen last on July 22, when it gained 6.4%, before closing the week at N1570.14 at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
This showed that the local currency appreciated against the US dollar by 0.62% week-on-week, reaching ₦1,570.14 as demand for foreign currency in the economy by market actors.
Citing market data, investment banking firm Afrinvest Limited noted that activity level in the NAFEM window waned, as total turnover fell 29.8% week on week to $811.6 million. Cordros Capital Limited said trades were consummated at the window within the N1,470.00–NN1,603 band. In the forwards market, the naira rates depreciated across the 1-month and 6-month contracts but appreciated across the 3-month and 1-year contracts.
One month forward contract depreciated by 0.5% to N1,623.59 per US dollar. Also, Six months forward contract depreciated by 1.6% to N1,782.42 per greenback. However, Three months forward contract appreciated by 0.4% to N1,681.93, while one year contract rose by 1.6% to N1,972:27 per US dollar.
Despite the CBN’s FX retail auction, analysts highlight persistent demand pressures causing the naira to trade with high volatility during the week. “In the near term, we anticipate the naira will remain pressured owing to weak supply,” Cordros Capital Limited said.
Overall, exchange rate had a mixed performance against the dollar. Specifically, the Naira gained 0.6% against the US dollar to close at N1,570.14 in the official market. However, the local currency depreciated by 1.2% to close at N1,605.00/$1.00 in the parallel market.
The rates direction has widened FX gap to N35 on each US dollar, increasing risk of currency speculation.
In the global commodities market, crude oil prices declined this week due to a weakness in global demand. Overall, Brent oil decreased by 0.90% to $78.96 per barrel, while WTI declined by 2.43% to $74.79 per barrel. The price of gold increased by 0.40% to $2,547.90 per ounce.
A Federal High Court in Abuja has frozen the bank accounts of 32 individuals and companies’ linked to the 10-day #EndBadGovernance Protest organised across the country pending investigation and prosecution of the case.
Justice Emeka Nwite, in a ruling on the ex-parte motion moved by counsel for the Inspector-General (I-G) of Police, Ibrahim Mohammed, also ordered the banks to apprehend the account holders or any person transacting business on the said accounts.
Justice Nwite, who granted the motion dated and filed on Aug. 20, directed the banks to contact the Nigeria Police Force through the telephone numbers: 08035179870 and 07032449912 as soon as arrest is made.
“That the banks are hereby directed by this honourable court to issue details of the account package(s) and to place a Post-No-Debit (PND) on the accounts, disable the ATM while allowing inflow into the said accounts as from the date of this court order,” the judge declared.
Though the ruling was made on Thursday, the certified true copy of the order was sighted on Sunday in Abuja.
The account numbers affected include 4010073491 (Fidelity Bank), 1255130019 (Access Bank), 0006084167 (Abbey Mortgage Multipurpose Bank Plc), 0821931299 (FCMB), 1012007655 (FCMB), 0000575573 (A AG Mortgage Bank Plc), 1007871587 (UBA), 2037117333 (UBA), 5421031104 (ECOBANK ) and 0024541201 (Union Bank).
Others are 1022899050 (UBA), 8755008491 (Branch International Services Ltd), 5630208636 (Fidelity), 4936992542 (Fairmoney Microfinance Bank).
Others are 8755008499 (Branch International Financial Services Ltd), 2088228208 (UBA), 2115678044 (Zenith Bank), 3041823452 (First Bank), 1011828445 (New Edge Finance), 3024402748 (Fusrt Bank), 0161502459 (GTBank) and 0040580047 (Access Bank),
They also include 0250291788 (Wema Bank), 6112464260 (Branch International Financial Services Ltd), 1000774097 (Sparkle Microfinance Bank Ltd), 3434649965 (Fairmoney Microfinance Bank), 2013556714 (KUDA Microfinance Bank), 3104962864 (Polaris Bank), 6112464267 (Branch International Finance Services Lit), 8137051249 (OPAY) and 8137051249 (PALMPAY).
The I-G, in the application marked: FHC/ABJ/CS/1219/2024, had listed PA.LIN.HO Global Service Ltd, Innocent Angel Lovet Chinyere Nkiru, Obidient Movement Multipurpose Cooperative Society, Innocent Angel Lovet, Great Communicators Champion Multipurpose Cooperative Society Ltd as 1st to 5th respondents respectively
Others include Great Communicators Champion Multipurpose Cooperative Society Ltd, Opaluwa Eleojo Bob-Simon, NUEE State Chapter, Adeyemi Abiodun Abayomi, Adaramoye Michael Tobiloba, Popoola Festus as 6th to 11th respondents respectively.
Mohammed, in his four-ground argument, said the accounts as contained in the schedule in respect of which reliefs sought are subject of investigation and are reasonably suspected to be warehousing proceeds of unlawful activities or fraud.
“If there is any dealing with the account by way of withdrawal or transfer to another account by the persons under investigation/investigator and the persons that have absolute power to deal with the account will render nugatory any consequential order(s) which the court may make at the conclusion of this application,” he said.
According to him, the accounts are used to promote the offence of criminal conspiracy, terrorism financing, treasonable felony, cyberbullying and cyberstalking which was illegally transferred to the account of the accused persons now at large.
“That the accused persons were involved in hosting another country’s flag in order to undermine the sovereignty of Nigerian state,” he added.
In the affidavit in support of the motion ex-parte, Gregory Woji, a detective attached to Force Criminal Investigation Department, deposed that preliminary investigation revealed that some suspects arrested were being recruited by some financiers to cause mayhem and destroyed life and property,
Woji said preliminary investigation further revealed that the financiers were sending money to recruit the indigents and other vulnerable individuals to carry banners and overthrow a democratically elected government.
According to him, preliminary investigation further reveals that some foreign nationals were the harrow head in the unscrupulous act of treasonable felony and promoting terrorism financing in Nigeria.
He said the acts of the accused persons are akin to the offenses of criminal conspiracy, terrorism financing, treasonable felony, cyberstalking, and cyberbullying. He said it is the function of the police to stop this act by apprehending the offenders, as an offense to one is an offence to all.
According to Woji, intelligent report gathered so far reveals that the suspects are making effort to transfer or withdraw money from the accounts and unless this honourable court grants this order, otherwise, the investigation will be jeopardise.
“That it will be in the interest of justice to grant this request by freezing the account of the said suspects and order their immediate arrest on sighting them pending the outcome of the investigation and possible prosecution,” he averred
#EndSARS Protesters Block Entrances into Lagos State Secretariat
A Federal High Court in Abuja has granted applications filed by the police to remand 124 arrested #EndBadGovernance protesters for 60 days pending the conclusion of investigation.
Justice Emeka Nwite, in separate rulings on ex-parte motions moved by Ibrahim Mohammed, counsel for the Inspector-General (I-G) of Police, granted the interim order to remand the suspects until conclusion of investigation.
Justice Nwite equally ordered that the suspects who are minors in the applications be remanded in Borstal Home of the correctional centre pending the conclusion of investigation.
In the first motion ex-parte marked: FHC/ABJ/CS/1154/2024 moved by Mohammed on Aug 14 but a certified true copy (CTC) of the order, obtained by NAN, the judge directed that the suspects be remanded for 60 days pending the conclusion of investigation and legal advice from the Attorney-General of the Federation (AGF).
The I-G, in the motion dated Aug. 8 but filed Aug. 9, sued 75 protesters with their ages ranging between 14 and 34 years. They include Abubakar Ibrahim (18), Abubakar Adam (19), Suleiman Ali (16), Mubarak Mas’ud (23), Umar Musa (19), Aminu Hussaini (20),Umar Kabir (23), Ibrahim Musa (24), Abba Usman (30), Umar Inusa (18), Tasi’u Lawan (17), Ibrahim Rabi’u (16) and Jamilu Haruna (16).
The suspects also include Muktar Yahaya (17). Abdulbasit Abdulsalam (34), Salisu Adamu (16), Bilal Auwalu (15), Abdul’aziz Adam (15), Sadiq Sunusi (15), Muhd Musa (14), Usman Amiru (14), Abdulganiyu Musa (15), Muhd Yahaya (19), and Sunusi Nura (14), among others.
They were alleged to have committed offences of acts of terrorism, treason, and treasonable felonies, arson and terrorism.
The police said the offence was contrary to Sections 2(1) and (3), 24 and 26 of the Terrorism (Prevention and Prohibition) Act 2022; Sections 41 and 42 of the Criminal Code Act; Sections 410, 411, 412 Penal Code Act and Section 4 of the Miscellaneous Offences Act CAP M17 Laws of the Federation of Nigeria 2004 and other enabling statutes.
Miss Elizabeth Ogochukwu, a Litigation Secretary of Legal and Prosecution Section, Intelligence Response Team (IRT), Police Force Headquarters, Abuja, deposed to the affidavit in support of the motion.
She said the I-G’s office, through the office of the National Security Adviser (NSA), received a damning credible intelligence report of plan violent uprising against the government of the states and Federal Republic of Nigeria.
Ogochukwu averred that “the plan violent insurrection was believed to have been orchestrated by terrorist groups both within and outside Nigeria to unleash terror against the sovereign states of Nigeria scheduled to start from the 1st day of August, 2015.”
She said “despite serious security measures intensified by the various law enforcement agencies, the planned protest took place as scheduled and seriously intimidates the populace and seriously destabilises, or destroys the fundamental, political, constitutional, economic or social structures of some parts of Nigeria.
“That the violent protest causes death and bodily harm to citizens of the country and led to arson and wanton destructions of government or public and private facility, transport system and infrastructural facility in Nigeria.
“That the suspects were arrested in the actual act of rampage and reasonably suspected to be complicit in the crime which calls for district investigations.
*That the suspects/defendants herein were found to have been carrying Russian flags, banners placards singing slogans agitating for sovereign invasion of Nigerian territory to destabilising or overthrow the sovereign state of Nigeria by the Russian government.”
Ogochukwu said the suspects were arrested in Abuja and various states in possession of many Russian flags and other incriminating exhibits, while others are still at large.
She said investigations into the matter had commenced and the defendants made a voluntary statements, mostly admitting the crime which reasonably suspected them to be members of proscribed terrorist groups.
She said the investigators had to travel to various states to discover and apprehend the sponsors of this heinous crime for effective prosecution and same would not be completed within the time frame contemplated by the constitution which necessitated the application. She said that “time is required to complete investigation thoroughly and obtain legal advice from the office” of the AGF as most of the prime suspects are still at large.
Ogochukwu averred that the suspects admitted the commission of the offence.According to her, the suspects/defendants are now in detention in Police cells which are congested and poses serious health challenges on the inmates, and possibility of attack or escape will be ruled out.
Also, in the second ex-parte motion marked: FHC/ABJ/CS/1223/2024 moved by Mohammed on Thursday, Justice Nwite ordered another set of 49 defendants to be remanded for 60 days pending the conclusion of investigation.
“That an order of this Honourable Court is hereby made committing the defendants to correctional centre pursuant to Section 299 of the Administration of Criminal Justice Act (ACJA), 2015,” he said in the CTC of the order sighted on Saturday in Abuja.
The judge, who directed that the underage defendants’ be remanded in Borstal Home of the correctional centre, adjourned the case until Oct. 23 for mention.
The motion, dated Aug. 20, was filed on Aug. 21.Giving four grounds why the application should be granted, the lawyer said that the defendants engaged in the offence of terrorism financing in other to overthrow a democratic elected government.
Mohammed alleged that the defendants were supporting some disgruntled element that were flying the flag of another country in Nigeria. He alleged that the defendants conspired with some foreign nationals to take over the sovereign nation which is treasonable felony.
A detective attached to Force Criminal Investigation Department, Abuja, Gregory Woje, in the affidavit in support of the ex-parte motion, deposed that preliminary investigation revealed that some suspects arrested were being recruited by some financiers to cause mayhem and destroyed life and property.
“That preliminary investigation further revealed that the financiers were sending money to recruit the indigents and other vulnerable individuals to carry banners and overthrow a democratically elected government.
“That preliminary investigation further reveals that some foreign nationals were the hanow head in the unscrupulous act of treasonable felony and promoting terrorism financing in Nigeria,” he averred. Woje said the act of the accused persons is akin to the offence of criminal conspiracy, terrorism financing, treasonable felony, cyberstalking and cyberbullying.
He said it is the function of the police to stop the act by appending the offenders as offence to one is an offence to all. Some of the defendants include Comrade Opaluwa Eleojo, Michael Adaramuye, Musiu Sadiq, Buhari Lawal, Love Angel Innocent, Suleiman Yakubu, Yunusa Aliyu, Ahmad Nasir, Muhammed Sani, Iliyasu Anas, Abdullahi Sani and Gaddafi Muhammed.
They also include Jibrin Abdulhakim, Mahmud Umar, Kabiru Rabiu, Aminu Muhammed, Sagir Hassan, Lukman Abubakar, and Ahmed Isah. Others are Abdullahi Abdulwahab, Hassan Muhammad, Abdullahi Salisu, Sabo Murtala, Fahad Ibrahim, Umar Yakubu, Zakari Yakubu, and Ahmed Haruna, among others.
The Central Bank of Nigeria (CBN) withdrew N550 billion from commercial banks for failing to achieve lending targets. The weak economic conditions have limited deposit money banks’ lending appetite, although the sector’s net interest margin remains elevated.
According to analysts, the top bank’s hawkish stance has raised borrowing rates while also increasing the possibility of default. As a result, the rise in interest rates has left banks in a difficult position, with analysts predicting a large default risk.
The Central Bank of Nigeria (CBN) is discontinuing daily CRR debits and will implement an improved Cash Reserve Requirement (CRR) mechanism, according to a letter to all banks titled Cash Reserve Requirement Framework Implementation Guidelines dated February 2, 2024.
The segment of deposits subject to sterilization, according to CBN is determined the extant cash reserve ratio of 32.5% to increases in the banks’ weekly average adjusted deposits. The debit also considered CRR levy of 50% of individual banks’ lending shortfall.
In an interview sessions with MarketForces Africa, analysts said elevated yields on fixed interest securities asset are impediment to lending business.
“If investment in government securities are offering banks as much as 25% without hassle, and other margin dilutive development, why would a bank risk depositors’ funds in lending business”?
Borrowing rates from deposit money banks increase after the Central Bank of Nigeria’s monetary policy committee hiked benchmark interest rate successively until it reached 26.75% in an effort to fight inflation.
Nigeria’s inflation condition has become worrisome, climbing to multi-year high due to government policies, global economic condition and unintended consequence of economic reforms.
The private sector has not been doing well enough over interest rate tightening and exchange rate fluctuation. The consumption side of the economy has been tempered due to households reduced purchasing power.
Analysts said though banks net margin on loans has been boosted, there is another downside, which is often the borrowers’ ability to repay loans. The pressure on the borrower increases as exiting loans are priced higher, forcing companies to pay more on old loans due to the applied variable rate in line with developments in market dynamics.
The Nigerian Exchange’s (NGX) stock market capitalisation fell sharply as sell-side traders seized over trading operations on the local bourse. Last week, investors sold more equities. However, the detrimental consequences of selloffs were mitigated by the rights difficulties identified by international breweries.
According to stockbrokers, investors sold shares in some mid- and large-cap listed companies, dragging down the benchmark index. However, sell-side pressure had a reduced impact on market capitalisation because International Breweries listed shares worth N516.2 billion on the exchange this week.
This trend emerged as market participants continued to react to the positive outcome of the most recent Treasury bills and FGN bond auctions, which saw strong investor participation, according to Cowry Asset’s market update.
The NGX All-Share Index (ASI) declined 1.16% week-on-week to close at 95,973.45 points. Stock analysts said the decline was mostly caused by pressured sell-offs in the consumer and industrial goods sectors.
Trading activity this week was noticeably mixed, with lackluster market sentiment dominating. The weekly traded volume increased by 183.6% week-on-week to 5.64 billion units, but the weekly traded value fell by 17.78% to N33.05 billion, and the number of weekly transactions decreased by 4.60% to 4,993 trades.
This downturn was exacerbated by portfolio realignment in the face of positive market breadth, as evidenced by the fact that the number of gainers (43) was outstripped by the number of losers (36), Cowry Asset Limited said.
In terms of sectoral performance, the firm said the picture was largely positive, with the exception of the industrial goods and consumer goods sectors, which retreated by 4.94% and 1.42% week-on-week, respectively.
The pullbacks in the equities market provided strong buying opportunities that buoyed investor sentiment, according to Cowry Asset Limited. Stockbrokers added that this positive sentiment was reflected in the performance of certain stocks, leading to gains in the oil & gas (3.54%), insurance (1.90%), and banking (0.37%) indexes.
As the week drew to a close, specific stocks stood out as top gainers. RTBRISCOE led the chart with a 59% increase, followed by TANTALIZER (55%), OANDO (34%), DEAPCAP (30%), and UCAP (27%), all benefiting from positive price movements during the week.
Conversely, stocks such as CUTIX (-37%), DANGCEMENT (-10%), TIP (-10%), THOMASWY (-10%), and BETAGLASS (- 19%) were among the top losers, primarily due to sell-offs by investors.
The NGX index’s current position below the T-line, along with the 50-day Exponential Moving
Stock experts at Cowry Asset Limited told investors in an email that transaction volume patterns and support levels are signalling further buying opportunities, even as market participants look ahead to the forthcoming release of the Q2 2024 GDP report, along with audited half-year earnings and interim dividend declarations.
Cowry Research anticipates a mixed performance in the new week, driven by ongoing portfolio rebalancing and profit-taking activities.
Overall, the market capitalisation went down to N55.13 trillion, with a total of N2.45 billion being wiped off from the market. As a result, the year-to-date return for the market now stands at 28.35%.
This is according to a Stakeholder Engagement Plan for Nigeria: Primary Healthcare Provision Strengthening Programme. Nigeria expects the World Bank to approve a $500 million loan for this scheme next month.
The program is part of the HOPE Health Program’s $65 million Investment Project Financing (IPF) component, which aims to improve access to high-quality healthcare services across Nigeria.
Why MAMA Fund
The establishment of the MAMA Fund is a crucial step in Nigeria’s efforts to reduce maternal and infant mortality rates and achieve its human capital development goals.
According to the World Bank document, the MAMA Fund will focus on strengthening Primary Health Care (PHC) services across Nigeria, targeting rural and underserved populations.
The fund, with an allocation of $15 million, will support both public and private sector innovations aimed at improving maternal and child health interventions.
The document read: “MAMA fund innovation “investments” is focused primarily on Primary Health Care (PHC) strengthening in lagging and climate vulnerable States, allowing them to address legacy issues and “prime the pump”. These types of service delivery innovations would aim to expand coverage or quality of services at the population level with an emphasis on under-served rural populations.
“The MAMA Innovation Fund will be designed to support public and private sector innovations aimed at increasing utilization and quality of maternal and child health Interventions. The establishment and operation of the MAMA Fund will support not only private sector innovations aimed at increasing utilization and quality of maternal and child health interventions, but also partnerships with the public sector to test new approaches or scaling up services for improving the delivery of Reproductive, Maternal, Newborn, and Child Health (RMNACH) services.
“The fund will support interventions critical to ending preventable maternal, newborn, and infant deaths including midwifery; emergency obstetric and newborn care; maternal and perinatal death surveillance and response; obstetric fistula and other obstetric morbidities; digital capabilities and technologies.”
Other key project subcomponents
The program also allocates $15 million towards the design, procurement, and deployment of a federated digital-in-health enterprise architecture. This component seeks to drive a significant digital transformation within Nigeria’s health sector by digitizing essential health information systems, such as the electronic human resource management information system, the national health insurance system, and electronic health records.
Another critical aspect of the program involves the creation of a platform for coordinated technical assistance, with a budget of $2.5 million. This component is designed to enhance the capacity and sustainability of healthcare interventions throughout Nigeria.
The program also focuses on strengthening the strategic purchasing and regulatory functions of the National Health Insurance Authority (NHIA), with an allocation of $10 million.
Also, the program includes a $5 million investment in the implementation of the Public Health Fellows Program. This initiative will establish the National Health Fellows Program, engaging young Nigerian fellows across all 774 local government areas.
The program also emphasizes the importance of independent verification of its results, allocating $7.5 million for this purpose. An Independent Verification Agent (IVA) will be hired to conduct thorough assessments of the program’s outcomes and provide credible analysis of the performance of both state and federal governments under the HOPE-PHC PforR (Program-for-Results).
It also includes the development of annual state of health reports and performance rankings, with a budget of $2.5 million.
Flood Submerges Properties, Destroys Goods Worth N15 million in Aba
The federal government has announced plans to provide N3 billion in assistance to all states in an effort to ameliorate the effects of the recent flood calamity.
Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, made the remark while dealing with journalists at the Government House in Birnin Kebbi on Sunday after viewing flood-affected districts in Kebbi.
Edun stated, “I would like to announce that the National Economic Council has proactively decided to allocate N3 billion to support all states across the federation and the FCT in mitigating the effects of flooding this year.”
“That will put many states like Kebbi in a good position to be able to prepare their farmers to the all-important dry season farming, which we anticipate will be successful, well planned and well implemented.”
He stated that this plan would succeed by ensuring food availability at reasonable costs, lowering inflation, and further stabilizing the economy. He expressed President Bola Tinubu’s commitment to supporting the state’s efforts to maintain security, strengthen resilience, and increase productivity, ultimately cementing its status as Nigeria’s food basket.
Sen. Atiku Bagudu, Minister of Budget and National Planning, also spoke, expressing alarm that the flooding had caused more damage to several local governments than he had seen during a recent visit.
He did, however, laud the people of Kebbi for their resilience and commitment, promising that they would be mobilized to achieve better outcomes during the following dry season farming.
The minister also mentioned that, in addition to the N3 billion support, the federal government had approved a Renewed Hope Infrastructure Fund, which would be used to finance, among other projects, the Badagry-Sokoto road.
Kebbi state’s appeal for support Governor Nasir Idris appealed to the federal government for assistance, highlighting that many rice farmlands in the state had been submerged by flooding.
He mentioned that officials had visited Wacot Rice Mill and Matan Fada in Argungu, witnessing firsthand the impact of the flood on rice farmlands. He emphasized that Kebbi, as the leading rice-farming state in the country, plays a crucial role in national agriculture.
Backstory The National Emergency Management Agency (NEMA) last week reported that around 16,000 hectares of farmlands in 27 states have been destroyed by recent floodings in the country. Most of the states affected are around the food belt of the nation—the North central and Northwest regions of the country.
Furthermore, the Minister of state for Agriculture, Sen. Abdullahi Sabi, also stated that about 51% of farming areas in the country stand at risk of being flooded this year, a major blow to efforts at boosting food production in the country.
The Nigerian equities market lost N815 billion last week, primarily due to unfavorable trade on Monday and Thursday. The NGX All-Share Index fell 1.16 percent, while market capitalization fell 0.004 percent, ending the week at 95,973.45 points and N55.13 trillion, respectively.
Investors traded 5.64 billion shares worth N33.05 billion in 42,006 deals this week, up from 2.03 billion shares worth N42.155 billion in 45,157 deals the previous week.
The financial services business dominated the activity chart by volume, trading 4.977 billion shares worth N17.877 billion in 19,064 transactions, accounting for 88.22 percent and 54.09 percent of total stock turnover volume and value, respectively.
The oil and gas industry followed with 179.469 million shares worth N8.954bn in 5,780 deals, while the services industry ranked third with a turnover of 123.505 million shares valued at N525.417 million in 2,436 deals.
Standard Insurance, Jaiz Bank and Guaranty Trust Holding Company accounted for 3.951 billion shares worth N7.947bn in 1,839 deals, representing 70.04 per cent and 24.04 per cent of the total equity turnover volume and value, respectively.
Most indices closed lower, except for the Main Board, Banking, Insurance, NGX AFR Bank Value, AFR Div Yield, MERI Growth, MERI Value, and Oil & Gas, which appreciated by 0.98 per cent, 0.17 per cent, 0.37 per cent, 1.90 per cent, 0.47 per cent, 6.31 per cent, 3.94 per cent, 0.38 per cent, and 3.54 per cent respectively. The Alternative Securities Market Index index remained unchanged.
In terms of market performance, 43 equities appreciated, higher than the 39 recorded in the previous week, while 34 equities declined in price, lower than the 46 recorded in the previous week and 74 equities remained unchanged, compared to 66 in the previous week.
The local bourse has declined for two consecutive weeks, as sell-off pressure persists.
The Africa Fintech Summit has announced Interswitch Group as Gold Sponsor for the Africa Fintech Summit (AFTS) 2024, to be held in Nairobi, Kenya, from September 4-6, 2024. The partnership comes at a time of significant expansion of Interswitch’s operational footprints across the continent on the back of notable milestones such as the recent consolidation of its strategic partnership with ACI Worldwide to drive the modernisation of real-time payments across 32 Markets in Sub-Saharan Africa, as well as its foray into other industry verticals including Healthcare, Energy & Transportation, among others.
Since commencing operations in 2002 out of Nigeria, Interswitch has remained at the forefront of driving innovation in the financial technology and digital payments industry, facilitating payments and leveraging innovative technology solutions to shape the future of trade and digital commerce in Africa. As one of the pioneers of digital payment innovation in Africa, Interswitch, at its inception, disrupted the traditional cash-based payments value chain in Nigeria by supporting the introduction of electronic payments processing and switching services. It also launched Verve, Africa’s premier and leading domestic EMV-standard chip and pin payments card scheme.
Since 2021, Verve has controlled more than 50% of the Nigerian card market, courting deepened relationships with banking partners and fintech startups operating in Nigeria. Additionally, a recent change in consumer behaviour and macroeconomic conditions has led more Nigerian banks and fintech startups to issue Verve cards to customers as a locally relevant and reliable alternative. For instance, OPay, one of Nigeria’s largest digital banks, has issued 13 million Verve cards, while Moniepoint has issued about 4 million, further solidifying Verve’s position as a leading card and payment chip provider.
Today, Interswitch is a leading player with critical mass across Africa’s developing financial ecosystem and is active across the payments value chain, providing a full suite of omni–channel payment solutions. Interswitch’s vision is to make payments a seamless part of everyday life in Africa, overarching the company’s drive to facilitate intuitive transaction solutions that enable individuals and communities to prosper across the continent. Interswitch’s broad network and robust payments platform have been instrumental in the development of the payments ecosystem across the continent and provide Interswitch with the infrastructure to expand across Africa.
Commenting on the partnership with the Africa Fintech Summit for this year’s edition, Interswitch Founder & Group CEO, Mitchell Elegbe remarks, “As an Africa-focused integrated digital payments and commerce leader, and an important gateway to Africa’s Fintech Ecosystem, we are extremely delighted to support ecosystem engagement and valuable thought-leadership through the platform of the Africa Fintech Summit. 22 years ago, we set out, with a clear vision to solve social problems, starting by digitizing the use of cash. Today, on the realization of the tremendous transformative potential of technology to create value and unlock prosperity for Africa, we’ve set our sights on leveraging technology and innovation to digitize transactions and unlock value in other key social service sectors, just as we continue to do in the sphere of financial services, and we are excited to see that our roadmap and perspective aptly align with the theme of this year’s AFTS, which is ‘Fintech In Every Industry’.
“It is with immense gratitude and great delight that we welcome Interswitch as Gold Sponsor for the Africa Fintech Summit in Nairobi this year. It’s warming to have Interswitch grace the big stage this year and share detailed insights, trends and expert perspectives as a revered player in the African Payments Space. After 2 decades of building innovative African payment solutions for most payment touchpoints across the continent, we are deeply humbled to have Interswitch’s wealth of experience at this year’s summit. This is particularly important because it fits into our 2024 AFTS in Nairobi Theme: ‘Fintech in Every Industry,’ underscoring our expectation that in the mobile-first continent of Africa, we will see fintech penetrating through all industries. All sectors stand to benefit from being powered and served by fintechs – including insurance, saving & investments, cross-border trade, e-commerce, mobile money & digital banking, utilities, mining, trade, healthcare, and education. We will also see non-fintech companies leapfrogging digitally and providing these services embedded in their own product offerings as many service providers have done across the continent,” said Zekarias Amsalu, Co-Founder of AFTS and MD of Ibex Frontier.
Since its first summit in 2018, the Africa Fintech Summit has become the largest annual financial technology gathering on the African continent. In addition to its partnership with Interswitch, AFTS will be supported by a diverse cohort of partners and sponsors. #AFTSNAIROBI2024 will bring Keynote Speeches from Kenyan policymakers & AfCFTA as well as a VIP dinner for Speakers and invited guests on the night of 04 April; panels, workshops and fireside chats on 05 & 06 September; a delegation from Prosper’s Tech for Trade Alliance along with AfCFTA’s Digital Protocol, Alpha Expo Pitch Competition & Ecosystem tours on the 06th September. The event will conclude with a happy hour for delegates and attendees on both the 5th & 6th of September.
Join Africa’s largest community of financial technology innovators, investors, and regulators at the 12th edition of AFTS coming for the first time to Nairobi, Kenya on September 4-6, 2024. Supported by an advisory board of thought leaders and fintech pioneers, the AFTS is a unique space where ideas are explored, investments are mobilized, and collaborations are formed across sectors and geographies.
More than just a conference, AFTS brings the issues, entrepreneurs, and opportunities revolutionizing finance in Africa to the world’s stage. AFTS has hosted ten previous summits having hosted 5 editions in Washington, DC and 5 more editions in Lagos, Addis Ababa, Cairo, Cape Town, and Lusaka.
Over the past 10 summits, AFTS has supported Over USD 125M in capital raise efforts for African fintech startups, Groundbreaking launch of US-government funded Prosper Africa Tech for Trade Alliance, Public discourse and debate surrounding industry trends, brand building and awareness opportunities across global fintech media, knowledge sharing between banking/fintech operators with regulators, active engagement and inclusion of regulatory authorities in continental fintech conversation, and bring the largest source of truth for announcements of financial technology innovation, and strategic partnerships across the continent and globally.
With an information-packed agenda, AFTSNAIROBI 2024 will feature regulatory roundtables, bilateral meetings, collaborative partnerships, workshops, demos, pitch competitions, ecosystem tours, whitepapers, awards, and plenty of opportunities to collaborate with the investors and entrepreneurs shaping the future of African fintech, and we are glad to have Interswitch at the forefront of these conversations with leading names within the business like Akeem Lawal (MD, Payment Processing & Switching), Jonah Adams (MD, Digital Infrastructure & Managed Services, Peter Kawumi (MD, East Africa) & Bernard Kinara (Country VP, Kenya)
As in the past years, the event will be hybrid, with live streaming provided for remote attendees via our website. Limited tickets to the 12th Edition summit are now available. Secure your passes now on our website: https://www.africafintechsummit.com/.
Olam Agri in Nigeria, a leading agribusiness in food, feed, and fibre has demonstrated its unwavering commitment to enriching the lives of its employees and their families. The agribusiness treated employees’ children to a lively and exciting atmosphere of fun, gaming, learning, and music amongst others, at this year’s Kid’s Fun Day which was held on Friday, August 16, 2024, at its Lagos head office.
The Kid’s Fun Day is one of the internal experiential activities that underline Olam Agri in Nigeria as a Top Employer, a recognition it has consistently received for the past half a decade. Facilitated by the business’ Human Resources (HR) team, the Kids’ Fun Day is an exciting, engaging, entertaining, inspiring and immersive event that features lots of fun and bonding between the business, its employees and their kids. The kids interface with one another and immerse themselves in fun activities. Food, snacks and drinks are made available. They also learn about Olam Agri and its business operations.
Speaking about the event, Lucky Nwadei, General Manager, Human Resources, Olam Agri in Nigeria, said, “We continue to prioritise activities that enrich the lives of our employees and foster a family-friendly work culture. To wind up the summer break, we get our kids together for a fun and learning event called Kid’s Fun Day.”
“The Kid’s Fun Day event aptly demonstrates our unwavering commitment to building a workplace that values and empowers our people. It reflects our organisation’s ethos, where inclusivity and collaboration are not just values, but the very foundation of our work environment,” she added.
Further emphasising the importance of the event, Anil Nair, the Managing Director, Olam Agri in Nigeria, explained, “We keep looking for ways to make an impact in agriculture and beyond. As part of our strategic investments in employee development, we ensure that our workplace is a nurturing ground for employee personal and professional growth and a place to find fulfilment. The Kid’s Fun Day explains how much we prioritise work and family.”
Olam Agri started in Nigeria 35 years ago. The business currently operates in over 33 countries. Inclusivity is one of the many tenets the organization has fully embraced to advance a family-friendly work environment.
In a profound demonstration of commitment to societal welfare and support for underprivileged children, Stanbic IBTC Holdings, a subsidiary of the Standard Bank Group, successfully commemorated the 10th edition of its flagship Corporate Social Investment (CSI) initiative, the Together4ALimb Walk, on 17 August 2024. This hallmark event marks years of dedicated efforts towards enriching the lives of children living with limb loss and underscores Stanbic IBTC’s steadfast dedication to social responsibility.
Speaking at the event, Dr Demola Sogunle, the Chief Executive, Stanbic IBTC Holdings, emphasised the significant impact of limb loss on children’s emotional, psychological, and societal well-being. He highlighted the organisation’s holistic support approach, tackling not just the medical needs but also the financial and social challenges encountered by the families.
L-R: Wole Adeniyi, Chief Executive, Stanbic IBTC Bank; Dr Ibijoke Sanwo-Olu, First Lady of Lagos State; Dr Demola Sogunle, Chief Executive, Stanbic IBTC Holdings and Together4ALimb beneficiaries during the 10th edition of Together4ALimb charity walk, Stanbic IBTC Holdings’ Corporate Social Investment (CSI) initiative, held at Walter Carrington Crescent, Victoria Island, Lagos.
He emphasised the crucial role businesses play in offering comprehensive support, urging them to recognise that limb loss presents a complex challenge that goes beyond the physical condition. He highlighted the efforts of Together4ALimb, explaining how the initiative addresses both the visible and hidden obstacles faced by these families, ultimately providing a more holistic and inclusive form of support.
“Businesses have a crucial role in delivering comprehensive support, recognising limb loss as a complex life challenge beyond the physical condition. Through Together4ALimb, we address both the tangible and intangible hurdles these families face,” Demola stated.
The 2024 Together4ALimb Walk, resonating with the theme “Wellness in Motion” 2.0, was engineered to spotlight and ease the challenges faced by underprivileged children suffering from limb loss. Since the initiative’s inception in 2015, Together4ALimb has significantly improved the lives of 55 children by providing them with prosthetic limbs and creating educational trust funds of 1.5 million naira for each beneficiary. The programme witnessed a considerable expansion in 2023, extending its benevolence to 45 additional recipients.
To this day, the initiative proudly boasts of assisting 136 beneficiaries nationwide, ensuring each child receives an annual prosthetic limb replacement until age 18. This year’s event further solidified Stanbic IBTC’s commitment by welcoming 36 children into the programme, thereby cementing Stanbic IBTC’s role in creating brighter futures for children experiencing limb loss.
L-R: Ejike Anih, Founder/CEO, IfeanHealth Orthopaedics; Dr Demola Sogunle, Chief Executive, Stanbic IBTC Holdings; Dr Ibijoke Sanwo-Olu, First Lady of Lagos State; Brigadier General Samson Okoigi, Corps Commander – Medical, Nigerian Army and Wole Adeniyi, Chief Executive, Stanbic IBTC Bank, during the 10th edition of Together4ALimb charity walk, Stanbic IBTC Holdings’ Corporate Social Investment (CSI) initiative, held at Walter Carrington Crescent, Victoria Island, Lagos.
During the event, Dr. Ibijoke Sanwo-Olu, First Lady of Lagos State, highlighted the remarkable impact of the initiative noting with admiration that 136 children have benefited from the organisation’s esteemed Corporate Social Responsibility (CSR) initiative.
She said, “I want to sincerely appreciate Stanbic IBTC’s commitment and consistency over the years through this laudable initiative. It is imperative to note that supporting special children who have experienced limb loss either through accidents, mismanaged injuries, or congenital issues/birth defects and providing prosthetic limbs and educational trust funds for them will further assist them in realising their full potential and give them a sense of love, care, and support from society.”
“Over the years, issues around welfare and rights of persons with disabilities have become a recurring decimal in national discourse with successive administrations coming up with various initiatives to end discrimination and generally promote the principle of social inclusion. In today’s world, our society has realised that physical disability is not inability and therefore should not, in any way, hinder anyone from achieving something positive in life,” she stated.
Ejike Anih, Founder and Chief Executive Officer of IfeanHealth Orthopaedics, stated that Stanbic IBTC has accomplished milestones through the Together4Limb initiative.
“This initiative explicitly targets the upliftment of underprivileged children, a segment of society often overlooked yet deeply impacted by systemic inequalities. By focusing on this group, the organisation sheds light on these children’s pressing issues and actively works to create tangible positive changes in their lives.”
“Such initiatives are paramount today, as they embody the essence of corporate responsibility—recognising the roles of businesses in the economy and as pillars of society with the power and resources to enact real change. By dedicating a portion of its resources to the welfare of underprivileged children, the organisation sets a laudable example for others to follow, demonstrating how corporations can make a significant difference in the world, one child at a time,” Ejike said.
Speaking at the event, Brigadier General Samson Okoigi, Corps Commander—Medical, Nigerian Army, commended the Together4ALimb initiative for its significant contribution, providing much-needed hope and support to those affected. This initiative is crucial in helping recipients tap into their inherent potential and navigate life more confidently despite their physical challenges.
He stressed, “We understand firsthand the impact of losing a limb, not just physically, but emotionally and psychologically. I stand here today with pride, recognising the vital work that Stanbic IBTC has been doing through this remarkable initiative. Your dedication to restoring mobility to individuals with limb loss across Nigeria aligns with our mission in the Nigerian Army to rehabilitate and support the brave men and women who have sacrificed so much in service to our nation. We know that the journey to recovery is not just about restoring what was lost but empowering individuals to regain their independence, confidence and sense of purpose.”
The 10th Together4ALimb Walk commenced at the Stanbic IBTC Head Office on Walter Carrington Crescent, Victoria Island, Lagos, and concluded at the Law School Bus Stop on Ozumba Mbadiwe Avenue.
This year’s event marked a significant milestone by expanding its reach beyond Lagos, bringing the Together4ALimb Walk to several cities across Nigeria with staff and partners joining the walk with the aid of Steps by Stanbic IBTC. This expansion underscores Stanbic IBTC’s commitment to fostering the nation’s social, economic, and environmental welfare.
In a groundbreaking move that marks a new era in digital financial transactions, Verve, Africa’s largest domestic payments card and token brand, has officially partnered with YouTube, the world’s largest video-sharing platform. This collaboration is set to elevate the payment experience for YouTube Premium subscribers, offering unparalleled convenience through Verve’s innovative debit cards.
By adding YouTube Premium subscriptions to its bouquet of benefits, Verve has simplified the payment process for millions of Verve cardholders and YouTube users across Africa. This initiative underscores Verve’s commitment to redefining the digital payment landscape, providing both convenience and accessibility to its cardholders.
With over 65 million users (and counting), Verve’s debit cards are celebrated for their robust security features and extensive acceptance network, spanning several countries worldwide. Through this strategic alliance, Verve and YouTube aim to remove the friction often associated with recurring online payments, allowing users to enjoy uninterrupted access to their favorite content on their android phones.
Speaking on the partnership, Vincent Ogbunude, Managing Director, Verve International, shared his enthusiasm for the partnership, stating, “Through this strategic partnership, Verve is dedicated to redefining the digital payment experience, empowering our cardholders with unparalleled convenience and accessibility.” He emphasized that this collaboration with YouTube highlights Verve’s role as a pioneer in the digital payments ecosystem while expanding its reach and influence beyond traditional financial boundaries.
This partnership is about more than just facilitating payments; it’s about enhancing consumer engagement and satisfaction. It includes continuing Verve’s existing initiatives, such as the Verve Goodlife Consumer Promo—a long-running campaign focused on rewarding consumers loyalty and offering cardholders a wide array of benefits- to ensure Verve cardholders continue to enjoy the good life.
Also, speaking on the partnership, Cherry Eromosele, Executive Vice President – Group Marketing and Corporate Communications, Interswitch Group, expressed her excitement at the partnership, stating, “Subscribers can now benefit from a more streamlined process when renewing their YouTube Premium memberships, with the added assurance of Verve’s secure and reliable payment infrastructure. This collaboration signifies that African consumers are not just passive participants in the global digital economy but are active contributors, enjoying services with the same ease and efficiency as their global counterparts.”
This partnership marks an exciting development in the realm of digital commerce, paving the way for more dynamic and user-friendly financial solutions.
Mamador, a leading premium food brand in Nigeria in the Vegetable Oil and Spread segments, has concluded plans to host the 5th edition of its annual August Meeting, scheduled to be held on Friday, August 30, 2024. The event is slated to be held at Sheba Hall, Maryland, Lagos.
The August Meeting is a cherished tradition and platform that brings together Igbo women from home and abroad in their matrimonial villages to discuss matters of community development and other socio-economic and cultural initiatives.
The activities, keynote speeches, and panel sessions involve distinguished speakers, celebrities and influencers in health, parenting, entrepreneurship, wealth creation, fitness and general well-being.
The impressive list of speakers, celebrities and influencers selected to speak at the conference include health influencer and medical doctor Egemba Chinonso, popularly known as Aproko Doctor; finance and wealth coach Sola Adesakin; certified parenting coach Sandra Oluwadare; certified financial education instructor Tomie Balogun and celebrity actress and fitness enthusiast, Kate Henshaw.
At the conference, each speaker will share their thoughts on critical discourse relating to health and finance. While Aproko Doctor will be deep-diving into Health and Food Choices, Sola Adesakin will share her thoughts on “Wealth and the Woman”. A total of 2000 women are expected to participate in the event, with 500 attending physically.
In the same vein, Sandra Oluwadare will speak on the topic “Parenting in this Generation” while Tomie Balogun will provide insights on “You are a Business”.
According to the Head of Marketing, PZ Wilmar Limited, Chioma Mbanugo, the theme of this year’s event, “Nourish to Flourish: Elevating Health and Wealth”, underscores the need for women to adequately prioritise their health and general well-being while striving to build wealth.
Mbanugo explained that the annual event was conceived to recognise and celebrate Nigerian women for their diligence, resilience, breaking the status quo, and relentless quest for success regardless of limitations or barriers along their path. She added that three women in attendance who have participated in a competitive business pitch stand a chance to win a cumulative prize money of 3.5 million naira at the event.
She noted that the event’s theme, which focuses on health and financial empowerment, reflects the brand’s commitment to the well-being of Nigerian women nationwide and that consumers, celebrities and staff members should expect a memorable experience.
In the past four years, Mamador has brought women home and abroad to empower them and foster meaningful discussion.
President Bola Tinubu has sworn in Justice Kudirat Kekere-Ekun as Nigeria’s 23rd Chief Justice, pending approval by the Senate. On Friday, at 11.40 a.m., Kekere-Ekun took his oath of office and signed the oath register in the Council Chamber of the State House in Abuja.
She succeeds Ariwoola, who took office on June 27, 2022 and stepped down on Thursday after reaching the obligatory retirement age of 70 years.
Public outrage continues to trail the purchase of a new presidential jet by the Bola Tinubu administration. The government’s decision to allocate over N150 billion for the purchase of the aircraft, at a time when Nigerians are grappling with a tough economic environment and a lingering cost of living crisis, has angered many.
Mr Tinubu’s policies of subsidy removal and exchange rate unification have led to increases in the prices of commodities, which experts believe are driving the current inflation. The president has, in the past year, urged Nigerians to bear with the hardship occasioned by those policies.
However, the government does not appear keen to follow its own counsel, as inflation currently stands at 33 per cent. In this report, DAILY POST reviews some of the most lavish purchases under the current administration.
Presidential Jet
The Airbus A330, which replaced the 19-year-old Boeing B737-700(BBJ) bought under the presidency of Olusegun Obasanjo, reportedly cost the Nigerian government over $100 million.
It should be recalled that the government secured the approval of the House Committee for the purchase of this luxurious jet, which drew the ire of many Nigerians who have described the government’s action as insensitive.
Although the National Assembly claimed it is yet to appropriate money for the purchase, the president has already taken the jet for a flight to France.
Meanwhile, Senate President Godswill Akpabio has consistently maintained that he is ready to grant any approval requested to finalise the purchase.
“I don’t see how it is feasible that the topmost priority of a government dealing with the level of biting hunger and poverty in the land is to consider the purchase of a befitting aircraft for the president,” Oby Ezekwesili, a former minister, said during an appearance on Arise Television’s ‘Politics Today on Sunday.
Presidential Yacht
Last year, there was significant backlash against the government for the planned purchase of a presidential yacht. In the 2023 supplementary budget of N2.17 trillion, President Tinubu proposed N5 billion for the procurement of a presidential yacht.
The uproar over the proposal led to the National Assembly declining the request and diverting the money towards other expenses. However, according to several sources, the yacht had already arrived in the country at that point. The government has neither confirmed nor denied this.
DAILY POST learnt that the House of Representatives is putting pressure on the Navy to return the ship to the vendor.
N21 Billion House for Shettima
Another controversial expense since this administration took office is the reported N21 billion spent on the completion of the official residence of the Vice President.
The Minister of the FCT, Nyesom Wike, prioritised the completion of the residential project despite other competing infrastructure projects needing attention. But despite public outrage, the minister proceeded to complete and commission the project.
N160 Million Cars for National Assembly Members
Amid the current economic hardship, members of the National Assembly also received their share of the luxury with the purchase of luxurious Sport Utility Vehicles, which are believed to have cost N160 million per unit for members of the House. It is unclear what the Senate received, but they are expected to get more.
While the House claimed that the vehicles are official cars to be returned at the end of the administration, DAILY POST learnt that some lawmakers opted for cash instead of the car.
N90 Billion Subsidy for Hajj
The government also spent N90 billion on the 2024 Hajj pilgrimage to the Kingdom of Saudi Arabia. It could be recalled that the devaluation of the naira led to a sharp increase in the cost of Hajj for the 2024 exercise, with the National Hajj Commission of Nigeria (NAHCON) forced to review the fee several times.
The government subsequently intervened with a N90 billion subsidy; however, that money is now the subject of multiple probes by different anti-graft agencies.
The Chairman of NAHCON, Jalal Arabi, and several other management staff were arrested by the EFCC over the alleged mismangement of the N90 billion subsidy.
N1.5 Billion Cars for Office of the First Lady
Nigerians have had a complicated relationship with the Office of the First Lady due to the overbearing nature of some of its occupants, who, despite being unelected, are notorious for intruding into governance.
There is also the cost associated with running the office, which is largely a ceremonial role. In the 2023 supplementary budget, the government proposed N1.5 billion to buy vehicles for the office.
According to the Central Bank of Nigeria’s April 2024 Monthly Economic Report, the Federal Government’s fiscal deficit increased by 0.1% month on month to N824.79 billion in April, up from N823.91 billion in March.
A fiscal imbalance occurs when a government’s revenue falls short of its expenditure. The CBN report, released on Thursday, showed that the deficit was 7.92 percent more than the planned N764.19 billion for the period.
The bank also reported that consumer credit outstanding fell by 53.83 percent to N3.8 trillion at the end of April 2024, compared to the previous month.
According to the CBN, the increase in deficit was caused by a 0.55 percent MoM decrease in retained revenue to N419.91 billion in April from N422.23 billion in March. It said the decline in revenue was a result of lower receipts from exchange gains.
The report read, “The fiscal operations of the Federal Government of Nigeria, in April resulted in an expansion in the fiscal deficit.
“Provisional data showed that primary and overall deficits rose to N260.98bn and N824.79bn, respectively, from N249.43bn and N823.91bn in the preceding month. The expanded deficit reflected the sharper decline in retained revenue.
“FGN retained revenue also dipped in the review period due to lower receipts from exchange gains.
“Provisional data indicated that, at N419.9bn, FGN retained revenue fell relative to the level in March 2024 and the monthly benchmark by 0.55 and 74.29 per cent, respectively.”
Similarly, the apex bank noted that government expenditure for April declined MoM by 0.16 per cent to N1.246tn from N1.244tn in March due to reduced capital spending.
“The provisional data showed that aggregate expenditure of the FGN declined due to reduced capital spending.
“At N1,244.71 billion, provisional data indicated that expenditure was 0.12 per cent below the level in the preceding month, and 48.10 per cent short of the projected spending of N2,398.12 billion.
“The decline was attributed, largely, to a reduction in capital outlay in the review period. Further analysis showed that recurrent and capital accounted for 84.5 and 6.30 per cent, respectively, while transfer payments constituted 9.2 per cent.”
Meanwhile, customer credit outstanding reduced significantly by 53.83 per cent to N3.8tn due to low loan appetite by customers fuelled by the high interest rate.
The decline was on account of the 60.79 per cent fall in personal loans to N2.95tn. However, retail loans increased by 18.81 per cent to N856.77bn.
“A decomposition indicated that personal loans accounted for 77.48 per cent of the total consumer credit, while retail loans accounted for the balance,” The CBN said.
The Nigerian Exchange (NGX) stock market capitalization decreased by around N65 billion on Thursday as a result of major selloffs in Transcorp Hotels and bank shares. The Nigerian Exchange All-Share index declined as the market saw strong selling in Zenith Bank, FBN Holdings, Transcorp Hotels, and other stocks.
According to data from the local exchange, the All-Share Index decreased 0.12%, or 114 points, to 95,718.05, down from 95,831.51 on Wednesday. As a result, the year-to-date return has slowed to 28.01 percent, but it remains lower than the annual inflow rate. However, market breadth was positive, with 22 gainers and 18 losers.
However, market activity was uneven, as the overall volume traded for the day climbed by 9.17%, but the total value exchanged decreased by 19.28%. Stockbrokers said approximately 393.62 million units valued at ₦5,853.80 million were transacted across 8,243 deals.
UNIVINSURE was the most traded stock in terms of volume, accounting for 17.34% of the total volume of trades, followed by CHAMS (8.60%), OANDO (7.59%), TRANSCORP (7.15%), and ACCESSCORP (5.77%) to complete the top 5 on the volume chart.
OANDO emerged as the most traded stock in value terms, accounting for 22.11% of the total value of trades on the exchange. Academia topped the advancers’ chart with a price appreciation of 10.00 percent.
Also on the gainers chart were OANDO (9.99%), RTBRISCOE (+9.78%), IMG (+9.09%), TANATALIZER (+8.77%), DEAPCAP (+8.51%), and fifteen others. Eighteen stocks depreciated, according to market data for the day. TRANSCOHOT was the top loser, with a price depreciation of -10.00%.
Other decliners include CHAMS (-9.72%), ETERNA (-9.55%), IKEJAHOTEL (-9.09%), PRESTIGE (-7.69%), and BUAFOODS (-0.24%).
On sectoral performance, banking (-0.82%), oil & gas (-0.46%), and consumer goods (-0.11%) were negative due to selloffs in STANBIC (-4.74%), ETERNA (-9.55%), and BUAFOODS (-0.24%). Elsewhere, insurance (+0.44%) gained traction from appreciation in AIICO (+3.67%), while the industrial goods index closed flat.
Overall, the equities market capitalisation of the Nigerian Exchange closed at N54.98 trillion, with investors losing N64.98 billion.
The naira’s value fell sharply in the foreign currency (FX) market as demand for the US dollar grew due to domestic economic activity. On Thursday, the currency rate weakened on the official FX market, while Nigerian gross external reserves continued to fall, with 10 straight outflows.
The balance of external reserves declined to $36.453 billion, down $419 million from $36.872 billion on August 7, 2024. Though the Central Bank reported that FX inflows to Nigeria reached an all-time high in July, the official currency market is far from stable.
The FX scarcity crisis has held the naira in a cage, fluctuating between N1500 and N1600 at best, with the government maintaining the native currency remains grossly undervalued. In July, the naira depreciated by 6.9% in the Nigerian autonomous foreign exchange window at a rate of N1,608.70 per US dollar on the back of intermittent FX sales to authorised dealer banks.
“The problem is not the naira; there is a dislocation in Nigeria’s economic structure,” analysts told MarketForces Africa in a discussion on Thursday. Nigeria depends strongly on hydrocarbon sales to boost foreign reserves with intermittently favourable net flows from international trade.
After the FX reform, the gap between the official and parallel market exchange rates has collapsed. Lower FX spreads have reduced speculation in the FX market, analysts told MarketForces Africa in a chat, citing the Central Bank of Nigeria’s (CBN) efforts to unify exchange rates.
According to data from the FMDQ platform, the naira depreciated by 2.74%, closing at ₦1,586.11 per US dollar. The weakening of the local currency was aas result of higher demand for foreign currencies, which are not readily available in the currency market.
companies,Some Nigerians, companies and governments prefer to conduct local transactions in foreign currency over growing doubts over the local currency store’s value feature. Meanwhile, the naira held steady at ₦1,600 per US dollar in the parallel market on Thursday.
Demand for foreign currency at the informal currency market was relatively light for the Bureau de Change operators to accommodate. In the global commodities market, oil prices rebounded. MarketForces Africa reported that crude oil prices, which had previously erased most of their yearly gains, were rising due to weakened demand in China and concerns about the U.S. economy.
ICE Brent prices increased by 1.72% to reach $77.36, while US WTI prices rose by 1.75% to $73.19. Meanwhile, gold prices fell by 1.13% to $2,518.70 per ounce.
The average yield on Nigerian government local bonds fell by 5 basis points (bps) in the secondary market to 19.67% due to buying interest in the mid sector. The local FGN bond market demonstrated a bullish trend.
Significant activity centered on the 2033 and 2053 papers. As primary market supplies tightened, fixed interest securities investors increased their holdings in these bonds. The Debt Management Office (DMO) reduced the offer amount to N190 billion at the most recent primary auction, from conventional maturities. In its monthly auctions, the debt office made an offer to investors of N300 billion.
Trading in the FGN bond market showed slight positive movement, with the average secondary market yield decreasing by 0.05% to 19.67%. MarketForces Africa learned that the authority exceeded 70% of its 2024 target, or N4.3 trillion, at the conclusion of the July auction, which is why the offer or supply of DMO bonds has been reduced.
In its market update, Cordros Capital Limited told investors that across the benchmark curve, the average yield dipped at the mid (-6 bps) segment. The yield contraction was driven by demand for the JUN-2033 (-29 bps) bond, which closed flat at the short and long ends.
Meristem Securities Limited said in a note that the upcoming auction is poised for a rate decrease, driven by the DMO’s decision to delay and downsize the auction, effectively flooding the market to suppress rates and attract investors.
The investment banking firm said the strategic move is further supported by the recent inflation downtick to 33.40%; its nearly two-year low, which will contribute to the downward pressure on rates.
“With the domestic dollar bond offering coinciding with the FGN bond auction, there’s little reason to expect rates to remain elevated, setting the stage for a potential rate reduction”, Meristem said.
In the Nigerian sovereign Eurobonds market, bullish sentiment across segments of the yield curve led to a decrease in the average yield by 0.02% to 10.08%.
Mr. David Umahi, Minister of Works, says the Federal Government needs more than N16 trillion to complete inherited road projects across the country. Umahi made the remark while briefing journalists on the ministry’s achievements under President Bola Tinubu’s Renewed Hope Agenda in Abuja on Thursday.
He stated that the current administration inherited 18,932.50 kilometres of ongoing road construction, with a total of 2,064 contracts. The minister stated that the overall value of all current projects as of May 2023 was N14.42 trillion.
He stated that the sum certified was N4.73 trillion, with N3.12 trillion paid and N1.61 trillion owed.
“The funding gap to complete all the inherited projects is about N13 trillion as of May 2023; that will be more than N16 trillion when all projects are reviewed in line with current market realities.
“This is due to the removal of fuel subsidies and the floating of the naira.
“It is a very sound economic decision by this administration, considering the fact that some of the projects have lingered for between five and eight years.
“Consequently, the projects are being reviewed to match current market realities; this position excludes all the new projects under the Renewed Hope Agenda and the four legacy projects,’’ Umahi said.
According to him, the old traditional method of funding highway projects was through the annual budgetary provision. He said, however, that over the years, budget provisions had seemed inadequate to address the challenges of highway development.
Umahi stated that to meet up funding for road projects, the ministry embraced alternative funding mechanisms like the Presidential Infrastructure Development Fund (PIDF) and Sovereign SUKUK issued by the Debt Management Office (DMO).
The minister said that other funding included the Road Tax Credit Scheme (NNPCL, NLNG, Dangote, BUA, MIN, Mainstream Energy Solutions Ltd., and GZI Industries) and the use of multilateral loans.
Others are the Public-Private Partnership (PPP)/Highway Development Management Initiative (HDMI) and the newly established Renewed Hope Infrastructure Funding model.
He said that 82 projects were approved under the SUKUK fund, with a total sum of N100 billion invested in road construction and rehabilitation in 2017.
Umahi added that the projects included N100 billion in 2018, N162.55 billion in 2020, and N210.56 billion in 2021; for 2,812 km of road, N110 billion was approved in 2022, and the approved 2023 SUKUK provision stood at N250 billion.
He said that the sum of N2.59 trillion was approved by the Federal Executive Council (FEC) for the funding of 65 highway projects under Phases I and II of the NNPCL Funding.
The minister said that the projects were to cover a total of 6,358 km, while the available funding for the projects up to 2025 was N2.59 trillion.
“The reviewed total contract sum due to inflation is N5.288 trillion. “The funding gap for the completion of both phases I and II is N2.702 trillion. “To date, the total payment made by NNPCL is in the sum of N840 billion, and the total outstanding funding approved by FEC is N1.750 trillion. The projects are spread across the six geopolitical zones of the country,’’ he said.
The minister said that the ministry, under its statutory responsibilities over the federal road network, introduced the Highway Development and Management Initiative (HDMI) under the Public-Private Partnership Unit (PPP).
He said that this was to attract sustainable investment and funding in the development of road infrastructure and maximise the use of assets along the right of way (ROW).
Umahi said that the idea behind the private sector engagement was to provide an alternative source of financing for road development and management.
He said that the HDMI was expected to, among other things, bring order, accountability, and profitable entrepreneurship to the operations, management, and maintenance of federal highways.
The minister said that the emergent concessionaires would recoup their investments through toll and non-toll revenues, as may be negotiated.
He added that four legacy highway projects were selected under the Renewed Hope Agenda of the current administration for implementation to improve road network and train service connectivity across the six geopolitical zones and boost socio-economic development.
Umahi listed the projects to include the Lagos-Calabar (750 km) Coastal Road Corridor, Sokoto-Badagry (1,068 km) Road, Calabar-Abuja Superhighway Project (482 km) (TransSaharan Road), and Akwanga-Jos-Bauchi-Gombe Road (439 km).
He said that the Renewed Hope mandate of the Federal Ministry of Works included the planning, design, construction, and maintenance of federal road infrastructure nationwide.
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