CAPITAL MARKET
How SMEs can attract equity investment, list on NGX
For Small and Medium Enterprises (SMEs) to grow and subsequently list on the Nigerian Exchange Limited (NGX), there is a need to adopt strategies that would enable operators to develop their business models and attract venture capital and private equity investment. Former President and Chairman of Council of the Chartered Institute of Stockbrokers (CIS), Olutola Mobolurin said Nigeria needs more venture capital funds to support small businesses that have significant growth potential. Guardian
NGX resumes September bearish as investors lose N18bn
The Nigerian stock market reopened for the month of September on a downturn, following sell-pressure in the shares of FTN Cocoa and 16 others, causing investors’ wealth to plunge further by N18 billion. Specifically, at the close of transactions on the Nigerian Exchange Limited (NGX) yesterday, the All-Share Index (ASI) dipped by 35.43 absolute points, representing a decline of 0.09 per cent, to close at 39,184.18 points. Similarly, the overall market capitalisation value lost N18 billion to close at N20.416 trillion. The market negative performance was driven by price depreciation in large and medium capitalised stocks amongst which are: Nigerian Breweries, UAC of Nigeria (UACN), Honeywell Flour Mills, Morison Industries, and Dangote Sugar Refinery. Guardian
ECONOMY
NLC threatens industrial action over proposed electricity tariff hike
The Nigeria Labour Congeess has said it would call out workers on industrial action if the Federal Government implemented a proposed hike in electricity tarrifs. It reminded the Minister of Labour and Employment, Chris Ngige, about the agreement reached by between the Federal Government and Organised Labour Committee on Electricity Tariff on September 28, 2020. The meeting had agreed to freeze further increases in electricity tariff until the committee concluded its work and its report adopted by all the principals in the committee. The NLC President, Ayuba Wabba, handed down the notice in a reaction to speculations that the 11 power distribution companies had received approval to slightly increase electricity tariffs with effect from September 1. Punch
Nigeria’s Eurobonds debts rise by $9.37bn in five years
Commercial loans obtained by Nigeria through Eurobonds rose from $1.50bn as of December 31, 2015 to $10.87bn as of December 31, 2020, indicating a $9.37bn or 625 per cent increase in five years. The debt stock remained at $1.5bn from 2015 to 2016, but rose to $6bn by 2017, indicating a $4.5bn or 300 per cent rise within a year. It further rose to $10.87bn in 2018, signifying an increase by $4.87bn or 81 per cent. It remained at this figure till the end of 2020. However, the Federal Government still intends to seek more funding through Eurobonds, which would increase Nigeria’s Eurobonds debt stock. Punch
OPEC Leaves Oil Output Unchanged, Forecasts Higher Demand
The Organisation of Petroleum Exporting Countries (OPEC), led by Nigeria’s Sanusi Barkindo and its allies known as OPEC+, yesterday agreed to adhere strictly to their existing policy of gradual oil output increases in the coming months. However, the oil producers’ group revised its 2022 demand outlook upwards, even as it stated that it was sticking with its decision in July to phase out record output cuts by adding 400,000 barrels per day (bpd) of oil a month, continuing in October. The oil cartel expects demand to grow by 5.95 million bpd after a record drop of about nine million bpd in 2020 due to the COVID-19 pandemic. But demand only rose by about three million bpd in the first half of 2021. This Day
Lagos to secure 185bn bond following positive financial ratings
The Lagos State government has said that it is in the process of securing bonds to the tune of N185bn following positive rating approvals from rating agencies due to increased bondholder’s confidence. This was disclosed by the state’s Debt Management Office which noted that the automation of the office had further assisted the agency’s financial transaction processes, placing the state in good light among other states in the country. A statement by the Lagos State Head of Service, Mr Hakeem Muri-Okunola, said that public administrators must keep abreast of international best practices while taking full advantage of the latest technologies in the performance of their duties and responsibilities. Punch