CAPITAL MARKET
NGX, MTNN sign MoU on capital market participation
Nigerian Exchange Limited and MTN Nigeria Communications Plc have signed a Memorandum of Understanding to promote financial literacy and enhance retail participation in the Nigerian capital market. A statement said the announcement was made at the signing ceremony led by the Chief Executive Officer, NGX, Mr Temi Popoola and the Chief Executive Officer, MTNN, Mr Karl Toriola. According to the statement, the MoU is a two-year partnership for NGX and MTNN to collaborate to develop capital market solutions, leverage technology to support data dissemination and technology-as-a-service. Punch
SEC Shuts Oxford Int’l Group, Others over Alleged Capital Market Violations
The Securities and Exchange Commission (SEC) has sealed off the premises of Oxford International Group/Oxford Commercial Services, Farmforte Agro Allied Solutions Limited/Agro Partnerships as well as Vektr Capital Investment/Vektr Enterprise for alleged illegal involvement in capital market activities. The commission said the offices of the companies in Lagos, Port Harcourt and Abuja were shut down for carrying out investment operations that fall within ambit of fund management without registration with the apex regulator contrary to the provisions of the Investments and Securities Act, 2007. This Day
Equities reverse gains as capitalisation dips by N5 billion
Following losses suffered by many blue-chip stocks, the Nigerian equities market reversed gains to close on a downward note yesterday, as the market capitalised by N5 billion. Yesterday, the All-Share Index decreased by 8.81 absolute points, representing a dip of 0.02 per cent to close at 47,428.67 points. Similarly, the market capitalisation lost N5 billion to close at N25.561 trillion. The downtrend was impacted by losses recorded in large and medium capitalised stocks, amongst which are; Conoil, MTN Nigeria Communications (MTNN), Eterna, Nigerian Breweries and Guaranty Trust Holding Company. Guardian
BANKING
CBN sets N1m limit for cash collection centres
The Central Bank of Nigeria has pegged the minimum transaction limit for corporate and individuals transacting with Bank Neutral Cash Hubs at N1m and N500,000 respectively. The banking regulator disclosed this in a guideline for the registration and operation of Bank Neutral Cash Hubs in Nigeria released on Monday. It said, “The threshold for eligible transactions at a BNCH shall be as follows: A minimum transaction value of N500,000 for individuals; a minimum transaction value of N1m for corporate entities.” According to the apex bank, it launched the Nigerian Cash Management System in a bid to reduce cost and improve operational efficiency in the country’s cash management value chain in collaboration with the Banker’s Committee. Punch
ECONOMY
Higher oil Prices’ll increase subsidy cost, Fitch tells Nigeria
Fitch Ratings has affirmed Nigeria’s long-term foreign-currency issuer default rating at ‘B’ with a stable outlook. It disclosed this in its latest report released on Monday titled ‘Fitch affirms Nigeria at ‘B’; Outlook stable’. The report also said that the decision of the Federal Government to reverse its plan to phase out the implicit fuel subsidies that support price controls on petroleum would reduce benefits accruing from increase in oil price. The report said, “Higher oil prices would also boost the subsidy cost, denting the benefit of higher global oil prices to the budget. Punch
Nigeria may lose 170,000bpd as Shell, Agip declare force majeure
Nigeria’s revenue from crude oil now faces serious tension as Shell Plc and Eni parent company of Nigerian Agip Oil Company (NAOC) yesterday, declared force majeure following pipeline explosion. The development, linked to pipeline vandalism, affected the crude oil export programme from Bonny Brass crude cargoes. Coming at a time when the country is struggling to meet OPEC quota as development in Russia has already pushed oil prices to record levels, it is projected to disrupt the market and worsen the situation in Nigeria. Guardian
NNPC fails to account for 107 million barrels of crude, says Auditor-General
The Office of the Auditor-General for the Federation has said the defunct Nigerian National Petroleum Corporation, now Nigerian National Petroleum Company Limited, has failed to account for about 107,239,436 barrels of crude oil lifted for domestic consumption in 2019. The office made the allegation in its 2019 audit report presently being considered by the Committees on Public Accounts at the Senate and House of Representatives. Punch
Nationwide Blackout as Power Grid Collapses Again
The national power grid collapsed yesterday, causing a nationwide outage as the entire system crashed due to the loss of 1,100 megawatts from a 3,700mw peak generation earlier recorded. This was just as airline operators in Nigeria yesterday warned that they have only three days left to shut down operations over lingering scarcity of aviation fuel. For the power sector, as at yesterday afternoon, the system was yet to pick up load, according to a grid operations report, which showed that just three Generation Companies (Gencos) were trying to restart, but were yet to generate any energy. This Day
NDPHC Seals Power Purchase Deal with APL Electric, Eko Disco
The Niger Delta Power Holding Company (NDPHC) has signed a Power Purchase Agreement (PPA) with APL Electric Company Limited (APLE), the electricity distribution company with franchise to service Aba and its environs in Abia State. The NDPHC/APL deal to deliver 100MW of electricity to the distribution company, came after the company had similarly signed a PPA with Eko Electricity Distribution Company (EKEDC) for the direct supply of electricity. The agreement with APLE, the statement said, will see the NDPHC delivering 100MW of electricity to the distribution company through its Alaoji power plant in Abia state through a dedicated pillar. This Day
Bread, rice record 42%, 48% price hikes in five years –NBS report
The average prices of bread and rice in Nigeria have been recording significant increases in the past five years, according to data obtained from the National Bureau of Statistics. A year-on-year analysis of the average prices from January 2017 to January 2022 based on data from the NBS shows that bread (unsliced, 500g) and rice (agric-sold loose rice) recorded 42 per cent and 48 per cent price hikes, respectively. As of January 2017, the average price of a loaf of bread (unsliced, 500g) was N270. It however increased to N384 by January 2022. Punch
