CAPITAL MARKET
Eterna, 27 Others Lift Stock Market By N320bn
Investors’ investment on the Nigerian Exchanger Limited (NGX) stock market yesterday rose by N320 billion on the share price gains of Eterna Plc and 27 others. The NGX All Share Index (ASI) rose by 592.85 basis points or 1.25 per cent to close at 48.138.71 basis points, while the overall market capitalisation value gained N320 billion to close at N25.952 trillion. The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Airtel Africa, Seplat Energy, Guinness Nigeria, Dangote Cement and Okomu Oil. Market sentiment, as measured by market breadth was positive as 28 stocks declined, relative to 21 gainers. Eterna and Japaul Gold and Ventures recorded the highest price gain of 10 per cent each to close at N5.50 and 33 kobo respectively, while Guinness Nigeria followed with a gain 9.96 per cent to close at N82.25, per share. This Day
NGX urges market stakeholders on financial disclosures
NGX Regulation Limited has urged all market stakeholders to pay closer attention to disclosure, climate-related financial risks and opportunities in their business operations in line with the recommendations of the Financial Standards Board Task Force on Climate-related Financial Disclosures. The Chief Executive Officer, NGX Regulation Limited, Ms Tinuade Awe, stated this during a virtual training on climate disclosure jointly hosted by Nigerian Exchange Limited and NGX Regulation in collaboration with the United Nations Sustainable Stock Exchanges Initiative, International Finance Corporation and Carbon Disclosure Project in Lagos. Punch
ECONOMY
Government to end N200b yearly electricity subsidy in December
The Federal Government is looking at ending tariff shortfall, averaging N200 billion yearly, in the power sector by the end of the year. Between 2015 and 2020, the shortfall reportedly stood at about N2.4 trillion, averaging N200 billion yearly. The shortfall accrued from suppressed charges for electricity consumption. By implication, Nigerians may, from December this year, be compelled to pay the actual cost of energy consumed. This comes as the Nigerian Electricity Regulatory Commission (NERC) said emerging challenges, especially insecurity, are already frustrating the sector. The Secretariat of the Power Sector Recovery Programme (PSRP) disclosed that the government is considering that tariff shortfall comes to an end before the end of the year. Guardian
Imported vehicles: CITN to engage Customs, others over 15% NAC levy
The Chartered Institute of Taxation of Nigeria has said it is set to engage relevant government agencies over the introduction of 15 per cent National Automotive Council levy on imported used vehicles. The NCS had recently introduced a 15 per cent NAC levy on used imported vehicles, a decision which didn’t go down well with clearing agents in the country’s maritime sector. The agents have argued that the NAC levy is mostly meant for new vehicles, questioning the rationale behind the introduction of the duty on used vehicles. In a quick response, the service, in a statement by the National Public Relations Officer, Timi Bomodi, said the move was in compliance with the Economic Community of West Africa Common External Tariff. Punch
External reserves return to growth path, gain $243.83m
Nigeria’s external reserves rose by $243.83m in 19 days, according to figures obtained from the Central Bank of Nigeria. The CBN revealed in its data on movement in reserves that the value rose from $39.54bn as of April 1, 2022 to $39.78bn as of April 19, 2022. The external reserves fell by $313m in March, after starting the month at $39.86bn, before falling to $39.55bn on March 30. The Governor, CBN, Godwin Emefiele, said at the last Monetary Policy Committee meeting that “The moderate accretion to reserves reflects the duality of Nigeria’s position as an oil exporter and importer of refined petroleum products.” Punch
Import, forex restrictions worsening food inflation in Nigeria –World Bank
The World Bank has disclosed that import restrictions and non-flexible exchange rate management of the Central Bank of Nigeria are the major driving forces for food inflation in Nigeria. The Washington-based bank said this in a new biannual report by the World Bank known as Africa’s Pulse. The report read in part, “Rising food prices are the underlying factor behind the surge of headline inflation in Nigeria. Food prices have increased due to import restrictions and a nonflexible exchange rate management. “The current regime is keeping the official exchange rate of the naira artificially strong while the naira has weakened significantly on the parallel market. Additionally, the central bank has restricted importers’ access to foreign currency for 45 products and has reduced the supply to other importers. Punch
Rethink Your Policy on Fuel Subsidy, World Bank Tells Nigeria
The President of the World Bank Group, Mr. David Malpass has once more reiterated the need for Nigeria’s federal government to reconsider its policy on fuel subsidy, saying that the huge amount being expended on the policy could be channeled to other critical sectors. Malpass said this yesterday, while responding to a THISDAY question during a media briefing at the ongoing World Bank/International Monetary Fund Spring Meetings in Washington DC. The Senate last week approved the total sum of N4 trillion for petrol subsidy in 2022. The figure represented the amount contained in two separate requests by the President to the National Assembly for approval. The President, had in a letter to the Legislature dated 10th February, 2022, sought an additional N2.557 trillion to fund subsidy payments from July to December, 2022. This Day
SIM-NIN: Telecom consumers set to sue FG, demand policy suspension
Telecommunication subscribers under the aegis of the National Association of Telecoms Subscribers have said they are set to drag the Federal Government to court in May in a bid to temporarily suspend the government’s barring of subscribers’ outgoing calls. On Monday, April 4, the Federal Government ordered telecom companies to bar outgoing calls on all lines that have yet to link their National Identification Number and the Subscriber Identity Module. As a result of this, about 72.77 million active telecom subscribers were barred from making calls on their SIMs. In response to this, NATCOMS urged the Federal Government to extend the implementation of the SIM-NIN policy by three months. The association also gave the government one month to implement the ban. Punch
Amid divestment, Nigeria targets oil, gas royalty, licensing rounds in new regulations
Nigeria is planning about six new regulations on the backdrop of the Petroleum Industry Act (PIA) that sets fresh modalities for oil and gas royalty, award of oil blocks, fees and rentals amidst divestment by International Oil Companies (IOCs). This was disclosed yesterday, in Abuja by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The new regulations being set on host community issues are coming in the face of energy transition and geo-political issues, which are ushering new dimensions to global economy. The new regulations are Nigerian Upstream Fee and Rent Regulations, Petroleum Licensing Round Regulations, Domestic Gas Delivery Obligations Regulations, Nigeria Conversion Regulations, Nigeria Royalty Regulations and Nigeria Host Community (Commission) Regulations. Guardian
