Index to Nigerian Newspapers

BUA Foods Plc plans to leverage opportunities provided by its listing on the Nigerian Exchange (NGX) to grow a viable food production and exporting business that would improve national food sufficiency and help in generating much-needed foreign exchange. Chairman Abdul Samad Rabiu said with the listing of the food business on the NGX, there is high hope for Nigeria in terms of building capacity for food sufficiency. He noted that the population of Nigeria is over 200 million and the national food production capacity is still not enough to meet current demands. The Nigerian Exchange (NGX) Chief Executive Officer, Mr. Temi Popoola, commended BUA Foods for taking the bold step to join its subsidiary company, BUA Cement, as a publicly-listed company on the Exchange. The listing of BUA Foods' shares has added N720 billion to the market capitalisation of NGX, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation. Abuja doctor reveals a unique way to permanently cure weak erection, small and shameful manhood, and infertility issues without side effects within a short period.

 

Recent fiscal and monetary changes have rekindled hope for a brighter economic climate in Nigeria, with foreign portfolio investors retaining more funds in the market. Total foreign transactions rose by 70.1 per cent in the second quarter of 2023, driven by a 197.5 per cent increase in inflows. The Nigerian Stock Exchange (NGX) reported that the positive market performance came "amid the bounce of a new administration and raft of changes in government policies." Retail domestic transactions increased by 40.70 per cent from N88.50 billion in May to N124.52 billion in June 2023, showing that more individual Nigerians were optimistic about the economy despite the immediate challenges that greeted major policy changes. The institutional composition of the domestic market increased by 19.9% from N197.26 billion in May 2023 to N236.49 billion in June 2023. Market analysts unanimously agreed that the stock market performance has been in response to President Bola Tinubu's policy direction, with a consensus that the direction would significantly uplift the economy and drive foreign and domestic investments in Nigerian assets.The total foreign transactions in the first four months of 2023 stood at N62.18 billion, owing to soaring inflation, prolonged foreign exchange scarcity, and uncertainties building up to the 2023 elections. The Nigerian stock market launched into a major rally on the first trading day after Tinubu's inaugural address, with net capital gains totaling N1.51 trillion, its highest gain in a day in two and a half years.

In line with the Federal Government’s drive to facilitate trade and improve Nigeria’s economy to become globally competitive, a delegation of the Nigeria Customs Service (NCS), led by the Ag. Comptroller General of Customs, Bashir Adewale Adeniyi has paid a working visit to the Republic of Benin and signed a 12-point communique which aims to fully re-open the border between both countries, a statement signed on Tuesday by National Spokesman of Customs, Abdullahi Maiwada revealed. According to the Customs statement, “The Ag. CGC and his delegation visited the Nigerian Embassy on Monday, 24th of July and met with Ambassador Kayode Aluko, the Nigerian Ambassador to the Republic of Benin. During the visit, the two chiefs engaged with stakeholders from both countries and their concerns were identified and effectively considered. Notable among the concerns is the request to review the possibilities of reopening the border, as well as addressing the issue of administrative charges. At the end of the meeting, a joint communique signed by the two delegations.

Nigeria's trade with Africa increased by 40.8% YoY in H1'23, reversing a decline since 2020. However, Nigeria recorded N2.095 trillion trade in H2'2022, representing 8.98 percent, indicating a slow start to the African Continental Free Trade Area (AfCFTA) due to its absence from the Guided Trade Initiative.

The federal government has notified professional bodies and councils that it would cease to fund them beginning from the 2024 budget in line with the decisions of the Presidential Committee on Salaries (PCS). The move, THISDAY gathered yesterday, was in line with the recommendation in the Orosanye committee report and the recent Presidential Committee on Salaries. The Director General, Budget Office of the Federation (BoF), Mr. Ben Akabueze, conveyed the message via memos sent to the professional bodies. Professional bodies in Nigeria are largely responsible for research and technology development in their fields, relying on government funding to conduct ethical reviews and propose and promote new professional standards. There are over 100 professional bodies in the country. However, the development has generated mixed reactions from analysts who spoke to THISDAY. While some hailed the decision of the PSC, others warned the discontinuation may imperil the nation’s healthcare system.

The Nigerian government has been facing a surge in illegal rice importation, threatening local production and putting significant investment in the country. The government has closed many of Nigeria's official borders, reducing importation of some commodities, including foreign rice. This has led to an increase in paddy production from 2.8 million tons in 2010 to 8 million tons now, with processed rice quantities averaging 5.3 million tons. However, this has left between 1.5 and 2 million ton demand shortfall, even as average yield has increased. The federal government has reopened some of the closed borders, with foreign rice now finding its way into the country. The average annual consumption of rice in Nigeria is estimated to be between 6.7 and 7 million metric tons per annum, leaving a gap of over 1.7 million tons. To close this gap, experts suggest reducing post-harvest losses incurred by smallholder farmers and supporting traditional processors to meet urban demand. The revelation of increased imports into Benin raises concerns among farmers and processors in the region.

Kayode Tokede

Investors on the stock market of Nigerian Exchange Limited (NGX) have lost N757billion in two-day over demotion of Nigeria from frontier to unclassified market status by FTSE Russell.

FTSE Russell, the subsidiary of London Stock Exchange Group (LSEG) downgrade is on the backdrop of Nigeria’s foreign exchange (FX) challenges which is a new source of negative sentiment that is capable of triggering stock  sell off at the Exchange.

The stock market had closed last week at N37.295 trillion, dropped by 2.07per cent or N757 billion to close yesterday at N36.538 trillion.

The Vice President, Highcap Securities Limited, Mr. David Adnori attributed the decline in stock market performance to possible downgrade by FTSE Russell, stressing that foreign investors since the report was released have shown negative sentiments.

According to him, “The decline in the stock market can be linked to FTSE Russell downgrade and other macroeconomy reports. For instance, the revenue target of the FG may not be realised because daily crude oil production is 1.6mpd whereas Nigeria is only producing up to 1.2mpd.

“I think the FTSE Russell report maybe relevant to foreign investors who have been suffering from the inability to repatriate their dividend for several years.

“Capital market cannot be held for foreign exchange crisis because investors are paid in Naira. Since they brought dollar into the stock market based on the agreement with CBN on capital importation, then the responsibility was on CBN to facilitate the conversion of naira income to foreign currencies and remit abroad

“CBN has failed on its responsibilities   and as it is now, it is like foreign investors’ have transferred aggression to the capital market. The foreign exchange crisis does not have anything to do with domestic investors.”

FTSE Russell said further to the ‘FTSE Equity Country Classification – Watch List Status of Nigeria’ announcement published on June 30 that it has received feedback from market participants that although Nigeria has adopted a floating foreign exchange rate for the Naira in the Investors’ & Exporters’ (I&E) FX Window, which is now operating on a “Willing Buyer, Willing Seller” basis, “the lack of liquidity in the I&E FX Window continues to adversely impact the ability of international institutional to replicate benchmark changes”.

According to the report, “Consequently, as index changes for Nigeria within FTSE Russell equity indices have been suspended since September 2022 and with no improvement in the ability of international institutional investors to repatriate capital at a foreign exchange rate that would be used in FTSE Russell equity indices, following ratification by the FTSE Russell Index Governance Board, FTSE Russell announced that the, “FTSE Equity Country Classification status of Nigeria will be downgraded from Frontier to Unclassified market status, with Nigerian index constituents deleted at zero value (0.0001 NGN) from the following FTSE Russell equity indices.

“Effective from the open on Monday September 18, 2023: FTSE Frontier Index Series, including the FTSE Frontier 50 Index, FTSE Ideal Ratings Islamic Index Series, FTSE/JSE All Africa Index Series, FTSE Middle East & Africa Extended Index Series, and FTSE/MV Exchange Index Nigeria will be retained in the FTSE ASEA Pan Africa Index Series, with the implementation of certain corporate events suspended until further notice”, it added.