CAPITAL MARKET
Equities bullish as investors gain N521 billion
Despite uncertainty in the global economy, Nigeria’s stock market is currently having a solid start in the month of May, with investors increasing their bets on blue-chip companies in anticipation of continued expansion in profits, as investors gained N521 billion while the index hit the 51,000 mark. Precisely, at the close of trading yesterday, the All-Share Index rose by 967.45 absolute points, representing an increase of 1.90 per cent to close at 51,902.48 points. Similarly, the overall market capitalisation value gained N521 billion to close at N27.981 trillion. Notwithstanding the global crisis and inflation, the Nigerian stock market has continued in an upbeat since the beginning of the year, emerging the best performing market in Africa and third in the world, as the NGX’s All Share Index (ASI) hit 13-year high, crossing the 51,000 mark for the first time since 2008. Guardain
SEC moves to fully digitalise capital market
The Securities and Exchange Commission has said it is proposing some guidelines that will enable investors in the capital market to be able to do virtually everything they need to do on their Internet-enabled appliances and at their convenience. It said in a statement that this was part of its efforts to fully digitalise operations of the Nigerian capital market. These were contained in a guideline on Minimum Operating Standards for Information Technology for capital market operators recently exposed to the public, the statement said. According to the SEC, the new regulatory framework undergoing review sought to mandate compulsory adoption of information and communication technology, particularly web-based applications and devices, for virtually capital market transactions.
Nigerian Breweries Shareholders Approve N12.92bn Dividends Payout
Shareholders of Nigerian Breweries Plc, have unanimously approved the dividend payout of a total sum of N12.92billion for the 2021 financial year. The approval was granted during the 76th Annual General Meeting of the company held at Civic Centre in Lagos. The company’s management assured the shareholders of its commitment to continue to deliver maximum returns for the shareholders’ investments. Shareholders who spoke at the meeting described the total dividend payout to shareholders as a step in the right direction following an impressive financial performance recorded by the company in the 2021 financial year. This Day
SUNU Assurances’ profit rises by 56%
SUNU Assurances Nigeria Plc’s profit before tax rose to N488m in the 2021 financial year, from N313m recorded in 2020. The firm said in a statement that this was despite the impact of the COVID-19 pandemic, EndSARS and other claims paid by the company to individuals and corporate entities in Nigeria. It said the N488m PBT made in 2021 by SUNU and its subsidiary companies represented a 56 per cent growth when compared to the N313m realised in 2020. Gross Written Premium for the Group grew from N4.2bn in 2020 to N6.1bn in 2021. This represents a growth of N1.9bn in value and 46 per cent in percentage terms due to improved financial stability and sustained business relationship in the insurance market. The total gross claims paid during 2021 increased to N2.6bn, from N1.7bn in 2020, representing nearly 50 per cent increase. This was largely due to claims resulting from the EndSARS protest. Punch
ECONOMY
Fitch Rates Dangote Industries ‘AA’, Says Outlook Stable
Fitch Ratings has assigned Dangote Industries Limited (DIL), a Nigerian national long-term rating of ‘AA(nga)’ with a stable outlook. The group of companies was founded by billionaire businessman, Aliko Dangote. Some of the companies under DIL include the Dangote Refinery And Petrochemical Plant, Dangote Fertiliser Limited (DFL), Dangote Sugar, Dangote Salt, Port Operations, Dangote Cement, packaging among others. On key rating drivers, it stated that DIL generates majority of its revenue from the domestic market and borrows in both Nigerian naira from local banks and in US dollars from international markets. Fitch said that cement remains a significant contributor to DIL’s consolidated profile as the company is supported by large-scale operations in Nigeria and is pan-African. This Day
Aviation fuel: NNPC, airlines agree on three-month supply at N480/litre
The House of Representatives on Monday held a stakeholders meeting to resolve the crisis trailing the aviation fuel price increase, with the Nigerian National Petroleum Company Limited and domestic airline operators reaching a deal. It was agreed that the NNPC would supply Jet-A1 to marketers nominated by airline operators for a period of three months at N480 per litre, pending when the carriers would be granted licences to import the commodity. This is just as the AON said it had nominated 10 marketers for the purpose. Airline operators had last week threatened to halt their services over soaring aviation fuel prices, effective Monday (yesterday). They had given a notice to the Minister of Aviation, Hadi Sirika; and the Director-General, Nigerian Civil Aviation Authority, Musa Nuhu. The AON said the price of aviation fuel had risen from N190 to N700 per litre. Punch
Buhari Urges W’Bank, AfDB to Activate $19bn Fund for Climate Investment
President Muhammadu Buhari has charged the World Bank and African Development Bank (AfDB) to activate the $19 billion pledge, meant for land restoration, tree planting, development of climate resilience infrastructure and investments in small- and medium-sized farms. The president, while calling on development partners to support the One Planet Summit initiative, also underscored the importance of recharging Lake Chad, now down to 10 per cent of its water volume, as 11 Sahel nations discussed ways and means of accessing the $19 billion pledged by donors for the activities of the Pan African Great Green Wall Agency (PAGGW). This Day
FG plans paperless census 2023, insecurity threatens preparations
THE Director of Cartography Department, National Population Commission, Mrs Geraldine Arukwe, has disclosed that the commission plans to conduct a paperless population census using tablets during the 2023 census. She made this disclosure on Monday at the capacity building workshop for journalists on the 2023 population and housing census in New Karu, around the outskirts of Abuja. She said, “We are going to do a digital census. We are going to do a paperless census. We will be using tablets, personal digital assistance. So, it is not like before when we had to print forms and carry them and sometimes, some forms will get missing. We are going to do a paperless census.” The Chairman of the commission, Nasir Isa-Kwarra, in his opening remarks, noted that insecurity has been a major challenge to preparatory efforts toward the population and housing census. Punch
FG’s debt servicing jumps to $101m – CBN
NIGERIA’S monthly debt service rose by $31.46m in one month to $101.29m in January, figures obtained from the Central Bank of Nigeria have revealed. This indicates a 45 per cent increase month-on-month. The CBN disclosed in its data on debt service repayment that the government spent $69.83m on debt service repayment in December. The data also showed that the government spent $148.57m and $85.23 on debt service repayment in November and October 2021 respectively. The Debt Management Office had disclosed that Nigeria’s outstanding debt stood at N39.57tn or $95.78bn as of the end of December 2021. It added that total external debt gulped 40.08 per cent, totalling N15.86tn or $38.39bn in the period under review. Punch
