Author: The Nation

Heineken sponsored Formula1 race and provided a Formula1 experience during an exclusive viewing of the Monaco Grand Prix at the Podium event in Lagos.

Heineken was the official sponsor of the event with a mission to give its consumers an amazing experience of the world of F1. The event availed guests a unique opportunity to immerse themselves in thrilling Formula 1 experience as they watched the race in real time.

Head of Marketing Communications, Nigerian Breweries,  Sandra Amechree, noted that Heineken remains the number one beer brand that brings memorable experiences to its consumers.

Her words: “At Heineken we are happy to celebrate our sponsorship with our Nigeria fans. In Nigeria as well Heineken is the official broadcast sponsor of F1 races, what that means is that courtesy of Heineken you are able to watch the F1 races on DSTV channels.”

“What we just witnessed here is the Monaco brand and Heineken of course part of the fuel of the race that just happened. Here today we are to bring our fans and consumers into our world of F1. We shared lots of amazing times with them, lots of people have also won gifts based on their predictions on who will win today’s race. We are just very happy to share this moment with our fans and consumers.”

Speaking to what partnership means to Heineken as a premium beer, Amechree, said: “In terms of sponsorship what this has done really is put Heineken in that predestine as a premium drink. And we always say this, that it’s only Heineken that can do these things. Bringing the UCL championship and also bringing the formula 1 races. Sponsorship has continued to endear us to consumers because they trust that we always bring amazing experiences.”

Brand Manager, Heineken, Azuka Ijenebe,  said: “We are proud to be a part of this exclusive event that brought the thrill of Formula One to Lagos. The Heineken brand is synonymous with the Formula 1 circuit globally and we are excited to be able to curate this experience for the vibrant community of fans in Nigeria as we continue our partnership with Super Sports and DStv Prestige in delivering more memorable experiences,”

Read Also: UCL Final countdown: Unforgettable night of Heineken ‘cheers to all fans’ in Warri, Abuja

Since Heineken and F1 sealed their groundbreaking multi-year sponsorship deal in 2016, the Dutch beer giant has been at the forefront of enhancing the F1 experience for fans worldwide. Through innovative initiatives such as race track advertising and title sponsorships of various F1 races, Heineken has successfully introduced millions of consumers to the electrifying world of Formula 1, all while championing its “When You Drive Never Drink” campaign to promote responsible consumption.

• Nigeria-France trades worth Euro 4.2b in 2022

France is to invest Euro 1.2million to support Nigeria’s entrepreneurs in the creative and cultural sector.

Minister of State for Development, Francophonie and International Partnerships, France, Mrs Chrysoula Zacharopoulou, stated this at a news conference in Lagos.

She said it had become imperative to re-enforce diplomatic ties in the coming months, adding that Nigeria is an important player in tackling regional challenges and so the need to discuss peace and stability in this parts.

She explained during her five-day visit to Nigeria, she met with the President, ECOWAS Commission, Omar Alieu Touray and discussed regional security and development.

 They signed two finance intervention totalling Euro 20 million to provide ECOWAS strong support in agriculture.

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The minister said her visit was to experience the inauguration of the President Bola Tinubu, by representing French President, Emmanuel Macron and European Union (EU).

Zacharoupoulou   added that she had interactions with some Nigerians and the experience had revealed the great energy and creativity in the people.

“It’s clear that Anglophone African countries are just as important partners as Francophonie African countries,” she added.

According to her, Nigeria is France ’s first trading partner in sub-saharan Africa with trade exchange worth Euro 4.2 billion last year.

She said the partnership in the field of creative and cultural industry was at the heart of her visit, adding that it aimed to attract more French films to Nigeria.

“There are about 80 French films in Nigeria and we need to do more. We want to keep intensifying our economic presence in the country and we want to attract more French films to Nigeria.

“We know that culture can be a great opportunity for job creation and economic development. In France we invest a lot in this field. It is a policy that had been existing for a number of years.

‘’Here in Nigeria we have our wide network of 10 Alliance Françaises across the nation, which can be a center for dialogue between the artists,” she said.

Prof. Umar Garba Danbatta, Executive Vice Chairman, Nigerian Communications Commission (NCC), is set to be conferred with the National Productivity Order of Merit (NPOM) Award.

The announcement was made in an advertorial signed by the Director-General, National Productivity Centre, Dr. Nasir Olaitan Raji-Mustapha, heralding Danbatta’s exceptional achievements and significant contributions to the development and advancement of the Nigerian telecommunications industry.

The NPOM Award recognises individuals, who have demonstrated exemplary leadership, innovation, and dedication in their fields, and Danbatta’s recognition highlights his contributions to the NCC and the telecoms sector as a whole.

In a statement, NCC noted that during his tenure at the NCC, Danbatta has spearheaded several initiatives that have revolutionised the telecoms landscape in Nigeria. His visionary leadership and strategic decisions have led to remarkable achievements and noteworthy milestones for the industry, it added.

According to the statement, some of the key accomplishments attributed to Danbatta include the promotion of broadband penetration, consumer empowerment and protection, sustainable industry growth, and and digital inclusion and innovation.

Read Also: FG honours NPA boss Bello Koko with productivity award

Under the promotion of broadband penetration, Danbatta’s relentless efforts to enhance broadband connectivity across Nigeria have resulted in substantial improvements in internet access and affordability. This has played a pivotal role in bridging the digital divide and fostering economic growth.

In the area of consumer empowerment and protection, Danbatta has prioritized the interests and rights of telecom consumers, implementing consumer-centric policies and initiatives. Notably, the NCC’s Toll-Free Line for Consumer Complaints, introduced under his leadership, has provided an accessible platform for addressing consumer grievances and ensuring their protection.

With respect to sustainable industry growth, under Prof Danbatta’s guidance, the telecommunications sector has witnessed significant investments and healthy competition. His strategic leadership has fueled innovation, resulting in sustainable industry growth and a positive impact on Nigeria’s economy.

Also, recognizing the transformative power of digital technology, Danbatta has championed programmess to promote digital inclusion and empower marginalized communities in his efforts to deepen digital inclusion and innovation.  Initiatives such as the NCC’s Digital Nigeria Centre (DNC), formerly known as the School Knowledge Centers (SKCs) and Emergency Communication Centers (ECCs) have improved access to digital resources and enhanced emergency response capabilities across the nation.

“The conferment of the 2023 NPOM Award on Danbatta serves as a testament to his remarkable achievements and exceptional leadership within the NCC. His contributions have not only positioned Nigeria as a key player in the global digital landscape but have also positively impacted the lives of millions of Nigerians.

“The NPOM Award is a prestigious recognition that celebrates individuals, who have made significant contributions to productivity, innovation, and national development. Danbatta’s well-deserved recognition further solidifies his reputation as a transformative leader and industry trailblazer.

“The entire telecommunications industry and the nation, at large, celebrate Danbatta’s achievements and extend their heartfelt congratulations on the conferment of the 2023 NPOM Award. His exemplary leadership and contributions serve as an inspiration to future generations and reaffirm Nigeria’s commitment to technological progress and national productivity,” NCC stated.

Telecom operators are fretting over the likely implementation of the new Fiscal Policy Measures and Tariff Amendments, which imposed five per cent Excise Duty on Goods and Telecommunication Services for this and next year by the administration of President Bola Tinubu.

According to the operators, since the policy has been gazetted, they have, therefore, written to the Nigerian Communications Commission (NCC) seeking clarifications on modalities for its deduction and payment to the Federal Government.

A source in the umbrella body of the operators, Association of Licensed Telecommunications Companies of Nigeria (ALTON), who craved anonymity said though the former Minister of Communications and Digital Economy, Prof Isa Pantami, had assured that former President Muhammadu Buhari had granted exemption to the digital economy in the implementation of the policy, which took effect early this month, the group was concerned that it is a policy matter gazetted and would require more than verbal exemption to be valid.

“We are terribly concerned about the five per cent tax targeted at calls, SMS and data services and its potential of having a significant impact on the telecom sector. Remember that we already pay Value Added Tax (VAT) of 7.5 per cent. If this five per cent is added on telecoms services, it will bring the total consumption tax on data and voice calls to 12.5per cent. This is aside from the existence of over 40 different taxes in the industry imposed by federal, state, local governments and even non-state actors. So, we see the tax as overkill,” he said.

The source also lamented the likely impact of subsidy removal on the industry as, according to him, the average revenue per user (ARPU) of end user of telecoms services will be greatly affected.

“Considering the impact of the deregulation policy occasioned by subsidy removal on the disposable income of consumers, demand for services will dip; though most of base transceiver stations are powered by diesel the price is already stratospheric, some of our members using petrol will be impacted too,” the source said.

Read Also: NCC: Nigeria’ll achieve 90 per cent broadband penetration by 2025

On May 2, this year, ALTON had written a letter to Prof Pantami requesting his intervention. The letter was sequel to an April 20, 2023 circular with HMFBNP/MDA/Circular/2023FB/04 as reference number issued by the Office of the Minister, Federal Ministry Finance, Budget and National Planning.

The circular stated that the former president had approved the implementation of the 2023 Fiscal Tariff (CET) 2022-2026 and revised excise duty rates on alcohol beverages, cigarettes and tobacco products as well as an introduction of excise duty on single use of plastics (SUPs).

“Of particular interest to ALTON is the Annex 1V (Fifth Schedule) to the circular which provides for the “revised Excise Duty on Goods and Telecommunication Service for 2023 and 2024 specifically, the Annex 1V of the circular (which) seeks to reintroduce five per cent Telecommunications Service Surcharge as follows: mobile telephony services and operators (GSM), fixed telephony operators (fixed/fixed wireless), internet service providers (ISPs), and other operators (operators other than mobile and fixed telephony (ISPs).

“The Federal Government’s reversal of the waiver of the five per cent surcharge on telecommunications services comes as a rude shock to the industry considering the aforementioned outcome of the Presidential Committee on Excise Duty for the Telecommunication Sector under the leadership of the minister,” ALTON had stated.

Chairman of the group, Gbenga Adebayo, warned that the industry was  overburdened with various taxes and levies, the bulk of which are multiple or excessive.

“The charges, if implemented, would result in a price increase for products and services and further adversely impact consumers’ purchasing power who would bear the final burden for the charges. Consumers will potentially spend less on communications services and the net effect will be a de-growth for the sector and its significant gross domestic product (GDP) contribution which has been widely acknowledged,” he said.

According to a letter marked HMCDE/026/GEN/Vol. V11 dated May 10, 2023 entitled: “Re: Approval for the Implementation of the 2023 Fiscal Policy Measures and Tariff Amendments-Request for the minister’s intervention”, the former minister restated his commitment to the waiver.

“I am directed to inform you that the honourable minister has written to the honourable minister of Finance, Budget and National Planning, reiterating the President’s approval for the exemption of of the Digital Economy sector from excise duty charges.

The Honourable minister vehemently opposes the 5per cent Excise Duty for Telecommunications Services and assures the sector of his commitment to ensuring that the exemption granted to the sector is retained,” the letter was endorsed by Dr Femi Adeluyi, Senior Technical Assistant (research and Development) to Prof Isa Pantami.

Commenting on the telecom tax, Fiscal Policy Partner and Africa Tax Leader at PwC, Mr Taiwo Oyedele had warned that the continuous introduction of new taxes without considering the poor may create a social problem for the Federal Government.

Oyedele said the tax system in the country lacked intentionality as it creates no room for the protection of the poor and vulnerable.

According to him, an additional five per cent tax on telecoms services will bring the total consumption tax on data and voice calls to 12.5per cent, when VAT is added. This, he said, will add extra burden on poor Nigerians who use telecommunications services, which have become essential needs for all.

Emphasising the importance of call and data services to every Nigerian, Oyedele had noted that if Maslow’s Hierarchy of Needs theory were to be developed today, telecom airtime and data could have been properly classified along with food and shelter as physiological needs hence the need to ensure that government is not excessively taxing basic needs.

Oyedele had explained: “When we impose a new tax without considering the poorest people who are just trying to survive, we are creating problems. If you are being intentional as a government, what you would have done is to start this tax by looking at the people at the middle and maybe even the upper class, who normally will do a post-paid.

“Or alternatively, you can create a threshold and say if your consumption of telecommunication services is 10,000. I’m just saying that number for the sake of this explanation, if your consumption is 10,000 or less than a month, you don’t pay this tax. Once you spend more than 10,000 on the extra amount you spend, you then pay. The fact is that no poorest people in Nigeria are likely to spend 10,000 Naira on telecommunication when many of them only earn 30,000 for a whole month to take care of the entire family.

“So, I did not see this intentionality in our taxes and it’s quite unfortunate. If we continue in this pattern of just introducing taxes without looking at the social aspects; whether we’re protecting people poor, we will very quickly create a social problem, which can bring down the government, like we’ve seen in places like Sri Lanka, and I hope that doesn’t happen because it might be too late at that point to make the corrections that we should have made before.”

The global agricultural insurance market, including Africa, is expected to reach $80 billion value from $46 billion in 2020, growing at a compound annual growth rate (CAGR) of 5.7 per cent.

This was made known in the latest edition of the Africa Insurance Pulse on food security and agricultural insurance, launched at the 49th Conference and General Assembly of the African Insurance Organisation (AIO) in Algiers, Algeria,

Secretary-General, AIO, Jean Baptiste Ntukamazina stated that the global agricultural insurance market had grown significantly due to the increasing need for risk management tools in agriculture.

According to him, the largest markets for agricultural insurance premiums are the U.S. and China, with yearly premium volumes of USD 15 billion and USD 12 billion, which account for more than 50 per cent of the global market.

He said the report showed that despite the economic importance of the agricultural sector to many African countries, the agricultural insurance market in Africa is underdeveloped, with low penetration and a limited range of products.

He, however, said the market had been growing in recent years, driven by increased demand from farmers for risk management solutions and the development of new technologies and insurance models.

He said:  “Africa’s agricultural insurance markets have grown in recent years, but with a share of only 1.6 per cent of total non-life insurance premiums in Africa, with a large untapped potential. In 2020, African agricultural insurance premiums were estimated at USD 320 million, representing 1.6 per cent of total African non-life insurance premiums of USD 19,730 million. Despite being slightly higher than the global share of 1.3 per cent, there is a large untapped potential.

Read Also: $1.55b blocked funds: Nigeria, Algeria, others account for 68% in Africa

“Agricultural insurance is critical to promoting food security in Africa. It acts as a safety net for farmers and food producers by transferring the financial risk of production or distribution to the insurance sector.This stabilises food production and increases resilience to disasters. In addition, insurance provides incentives for sustainable practices such as conservation agriculture and crop diversification, thereby improving food security. Insurance also helps facilitate investment in new technologies and infrastructure, ultimately increasing agricultural productivity.”

He noted that African smallholder farmers were largely uninsured, with only one per cent of them covered by insurance.

“Agricultural insurance coverage in Africa varies widely from country to country. Today, the majority of agricultural insurance premiums are generated in just a few African markets. In particular, markets in southern Africa are more developed, partly because of the different structure of the agricultural sector, which includes large commercial farms.

“With an estimated premium volume of over USD 100 million, South Africa is by far the largest agricultural insurance market on the continent, followed by Morocco and Botswana, whose markets generate between USD 20 million and USD 40 million in premiums. The only other two markets with premium volumes in excess of USD 10 million are likely to be Nigeria and Zambia.”

However, most African markets are characterised by subsistence or smallholder farmers, he added.

“For them, agricultural insurance secures livelihoods and primarily offsets the risks associated with weather variability. This risk mitigation improves farmers’ access to credit and thus to agricultural inputs such as seeds, fertiliser or labour, which can potentially increase productivity. It also gives farmers the security they need to invest their earnings and enter into contracts with buyers and processors.

“Compared to other emerging markets, agricultural insurance coverage among smallholder farmers in Africa is very low. Only 1 per cent of smallholder farmers in Africa were insured in 2016 and 2017, compared to more than 15 per cent in Latin America and nearly 50 per cent in Asia”.

Ntukamazina pointed out that African reinsurance and insurance companies have a key role to play in addressing food security in African economies.

Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Mr Sam Onukwue, is a versatile finance and economic expert. At this panel interview, which includes the Deputy Group Business Editor, Taofik Salako, Onukwue speaks on the economy, investment and human capital, among others

Now can the government fund infrastructure through the capital market?

The government at all tiers should take advantage of the market to float fixed income securities to fund infrastructure projects.The continuous over subscription of Sukuk bonds  signifies investors appetite  for safety of their capital in a recessionary period. 

What are the quick wins that you think will send positive signal to foreign and Nigerian investors?

Capital Gain Tax (CGT) should be abolished. The 10 per cent tax on capita gains is a major disincentive to institutional investors. The tax is out of tune with the global standard whereby every market is reducing transaction cost. As stockbrokers, we had made our position known to the government but nothing really has been done. The CGT represents an increase in the cost of transactions which will encroach on returns on investment. Its retention will definitely lead to diversion of resources from the capital market to the money market, especially, that the nominal anchor, Monetary Policy Rate (MPR), is rising.

There can be an extension of waiver on implementation of CGT to reduce transaction cost and attract all cadres of investors into the market. This is consistent with the need for the government to implement market-friendly policies to encourage more companies to seek quotation on the securities markets. I believe that rather  than stifling the market with the re-introduction of CGT, government should implement policies that will reverse the waning interest of foreign portfolio investors and their counterparts that are willing to access the Nigerian market through Foreign Direct Investments (FDI) by creating  a tax-friendly environment. As a result of unfriendly investment environment,  FDIs in our market has  continued  to dip.

How important is the capital market to the nation’s economic development?

The capital market, especially, the stock market, is the barometer that gauges the economy. Its  array of statistics show the direction of an economy This is why it is often said that there is linear relationship between the development of a capital market and the economy. The capital market provides a platform for government to mobilise long term funds to finance infrastructure. Companies utilise the market to raise funds for series of projects while retail and institutional investors need the market for capital formation and other benefits. Studies have shown that there is correlation between the development of an economy and its capital market. One of the most visible professionals in the capital market is  the stockbroker.These are agents of financial intermediation in the process of mobilising fund from the surplus economic unit to the deficit one. They are highly skilled, coming from diverse professional backgrounds. Stockbrokers are needed at the Monetary Policy Committee (MPC) of the Central Bank to explain the implications of any monetary decision of the apex bank on the capital market. The new administration requires stockbrokers at all levels to drive the economy and increase government’s utilisation of the capital market. Currently, most decisions of the apex bank are  skewed in favour of the money market, the short-term end of the financial market. This should not be so as the financial market has the long term arm, which is the capital market. 

How would you describe the relationship between the government and the stockbrokers?

It can be better. Stockbrokers operate from two professional platforms – the individuals and corporate entity. Every stockbroker is certified by the Chartered Institute of Stockbrokers (CIS) while at corporate level, we have the Association of Securities Dealing Houses of Nigeria (ASHON) of which I am the Chairman. ASHON is  a registered Trade Group by the Securities and Exchange Commission (SEC). Market development is at the core of ASHON’s  and CIS’ activities.  Each group provides blue prints to the government annually  on how it can utilise the market to grow the economy.The challenge is the failure of the government to utilise our inputs. Worst still, the Federal Government does not take input from the market operators on any capital market policy whereas  the operators are the bridge between the government and investors. This is one area that the incoming administration should exploit. The capital market has absorptive capacity to fund most of the infrastructure and this will reduce the government’s penchant for  controversial borrowing. The government’s utilisation of  the market is a win-win affairs as more securities will be listed to deepen the secondary markets.  

What is your advice to investors at this period?

Uncertainty and volatility are parts of stock market dynamics. They must be factored into risk analysis. As some investors are apprehensive about how the market shall respond to the current political atmosphere, smart ones are already taking position. There can never be a perfect period for investment. It is about taking a sound investment decision. This is why we have always advocated that investors should utilise the services of stockbrokers, also known as securities dealers. 

Regardless  of the state of uncertainties in the global financial markets, investors that take sound investment advice have opportunities for superior return on investment on constant basis. Many  investors often lose huge amount of money by relying on their own intuition or consulting unqualified investment advisers. Investment in any asset class requires a lot of variables, including an investor’s investment objective, risk tolerance, sources of funds and time horizon, among others. Investment is a trade-off of risk and return, whereby an investor aspires to post highest return at lowest risk. This is achievable if proper analysis is done by certified investment advisers. Our association, the Association of Securities Dealing Houses of Nigeria (ASHON),  shall continue to engage investors on the need to work with stockbrokers for timely  investment advice. 

We are not saying that there are no risks. Even asset classes that are believed to be risk- free contend with inflation risk, exchange rate risk and a host of others. What we are saying is that risk can be mitigated to ensure superior returns. In every risky situation, there are opportunities. The same applies to investment. It is all about understanding and deploying appropriate investment strategy. It’s not a game of one-size-fits all. Contacting a professional investment adviser is in itself a risk aversion measure. Investment professionals’ profile their clients as a precondition for advice on the appropriate investment opportunities.

Read Also: Investors net N1.55tr amid optimism on macroeconomic reforms

What are the reasons the NGX and stockbrokers still cherish physical trading in spite of seamless remote operations in recent years?

For us, as stockbrokers, the floor of the exchange holds historical and professional significance. Our profession, which historically commenced as a floor-based business,  is an offshoot of the Buttonwood Agreement. The agreement was written and  signed by 24 stockbrokers and merchants  in 1792 in New York City and this  created the first official mutualised stock exchange. It was an agreement to trade with one another and represent public interest. This marked the beginning of the New York Stock Exchange. However, developments in technology has altered the way of doing business in the securities market and NGX has admirably kept up with global best practices. Our market commenced operations with the manual trading system, called The Call-Over System or Open Outcry which means stockbrokers could only execute transactions on the trading floors and therefore required the physical presence of brokers. Floor-based trading has multiple effects, especially in the areas of enabling stockbrokers exchange professional ideas, providing enhanced practical professional training for young brokers as well as deepening the professional knowledge of stockbrokers generally. The floor became our second office and a platform for instilling appropriate ethical values. There was never a dull moment as stockbrokers got to know themselves and developed lasting relationships on and off the floor. They were able to interact at different levels of activities with The Exchange as members of one large family. This helped to build confidence not only among brokers but in the Capital market itself.

 As a responsive market, the Exchange commenced the Central Securities Clearing System (CSCS) in 1997 and advanced to the  Automated Trading System (ATS) in 1999. It is equally important to state that the ATS was the enabling platform that ushered in the era of remote trading,  following the introduction of the Order Management System. It was encouraging to see many dealing members key into it.This ushered in a dual trading method, whereby a stockbroker could elect to trade on the floor or remotely. However, in 2020, the COVID-19 pandemic forced every dealing member firm to trade remotely. Today, we appreciate God for the opportunity  for us to return to the floor. With our return to the floor, the tempo of activities in such areas as Facts Behind the Figures, Factory Visit, Closing Gong events by important visitors and CEOs of Quoted Companies,  all of which provide decision support insights for brokers will gain new momentum. It will also rekindle the grossly eroded nuances and ethos of our profession,  especially among the trainees (Oles) and those who qualified since the floor was shut down.They  have not had the opportunity to take part in these  rarefied activities.  It will also go a long way in consolidating those traits that have characterised our noble profession – collaboration, respect for one another, and leveraging on the collective knowledge of the market.

There is no gainsaying that the trading floor is the temple of capitalism, which provides opportunities to dissect economic and social events,  assessing their impact on prices of traded securities as well as simplifying complex policy pronouncements. It is against this background that the New York Stock Exchange and some others still retain their trading floors for traders to conduct some of their trades. 

Much as the  power of technology,  especially in our business cannot be downplayed, the trading floor remains an important and unifying platform in our profession, and we should take advantage of this reopening for informed price discovery, free consultancy among stockbrokers  and increased volume of trade. As critical stakeholders in the market, our members remain committed to the growth and development of the market. We shall continue to engage with NGX and other market regulators for accelerated market development. 

What is the policy direction of ASHON in the rapidly changing dynamics in  the market?

ASHON has always been at the forefront of ensuring that its members operate professionally while the association collaborates with the capital market regulators, operators and other members in the ecosystem. ASHON shall continue to play pivotal roles in policies that positively impact the capital market. We were at the forefront of banks’recapitalisation and demutualsation of The Exchange, among others.

Nigerian equities traded all-positive in the four working days after the inauguration of President Bola Tinubu as a bullish rally triggered by the new government’s policy direction left investors with net average gain of N1.55 trillion at the weekend.

Investors’ demand for oil and gas and banking stocks increased dramatically with most buy orders for such stocks at the sellers’ price call. The notable increase in demand underlined expectations that reforms in the oil and gas sectors and a generally positive economic outlook would benefit the two most influential sectors of the economy.

“The equity market reacted positively to some of the pronouncements made by the President particularly the removal of subsidy, easy repatriation of investment and dividend by investors, harmonisation of exchange rate, interest rate reduction and general overhauling of Central Bank of Nigeria (CBN),” Arthur Steven Asset Management, a leading investment banking group, stated.

The sustained four-day, post-inauguration bullish run rallied Nigerian equities to the global chart for best-performing stocks. Against the largely negative performance of the global equities market during the period, Nigerian equities closed weekend with average return of 5.37 per cent, equivalent to net capital gain of N1.55 trillion.

The performance of global equities were largely negative during the week amidst concerns on global growth rate and fiscal challenges. In United States, the Dow Jones Industrial Average (DJIA) dropped by 0.1 per cent while the S & P 500 Index posted modest gain of 0.4 per cent.

United Kingdom’s FTSE 100 Index indicated average decline of 1.3 per cent. Japan’s Nikkei 225 Index however rose by two per cent. STOXX Europe Index, which tracks the broad European market, dipped by 0.8 per cent. The MSCI EM Index, which tracks emerging markets, deprecated by 1.1 per cent while the MSCI FM Index, which tracks frontier markets, appreciated by 0.9 per cent.

The All Share Index (ASI) – the common, value-based index that is commonly regarded as Nigeria’s benchmark equities index – jumped over three steps to close weekend at 55,820.50 points as against the week’s opening index of 52,973.88 points.

Aggregate market value of quoted equities at the Nigerian Exchange (NGX) also rose simultaneously from the week’s opening value of N28.845 trillion to close weekend at N30.395 trillion, an increase of N1.55 trillion.

The concurrence in the growth rate of both the ASI and aggregate market value of quoted equities underscored the fact that the increase in market value was entirely due to share price appreciation, rather than changes in shares structure such as new listing, re-listing and primary revaluation.

Turnover nearly doubled during the period as investors exchanged 2.586 billion shares worth N46.643 billion in 35,122 deals last week compared with 1.963 billion shares valued at N33.899 billion traded in in 30,827 deals in previous week.

The banks-led financial services sector remained atop the activity chart with 1.890 billion shares valued at N23.041 billion in 17,806 deals; representing 73.10 per cent and 49.40 per cent of the total equity turnover volume and value. The conglomerates sector followed with 170.218 million shares worth N638.188 million in 1,830 deals while the consumer goods sector placed third with a turnover of 132.432 million shares worth N3.837 billion in 4,938 deals.

Banking stocks were the three most active stocks, with the trio of Access Holdings Plc, United Bank for Africa Plc and FBN Holding, accounting for 915.908 million shares worth N10.916 billion in 6,575 deals. These represented 35.42 per cent and 23.40 per cent of the total equity turnover volume and value respectively.

Sectoral analysis showed widespread optimism across the market. The NGX Oil and Gas Index recorded the highest gain of 10.46 per cent, driven by strong rally in petroleum –marketing companies. The Tinubu’s government places oil and gas sector reform as a major pillar of its economic policy, which favours deregulation.

The NGX Consumer Goods Index followed with above-average return of 8.52 per cent. The NGX Industrial Goods Index recorded average gain of 5.81 per cent. The NGX Banking Index rose by 4.89 per cent. The NGX Insurance Index appreciated by 1.21 per cent. The NGX 30 Index- which tracks the 30 largest stocks at the NGX, rose by 5.45 per cent. The NGX Pension Index- which measures stocks that are adjudged as suitable for pension fund investments, rallied by 5.12 per cent while the NGX Lotus Islamic Index- which tracks stocks that comply with Islamic finance rules, rose by 8.12 per cent.

 There were nearly three advancers for every decliner, with 66 gainers and 23 losers during the week. Conoil led the gainers with a gain of 45.78 per cent to close at N69.90 per share. Eterna followed with a gain of 32.14 per cent to close at N9.25. Jaiz Bank rose by 30 per cent to close at N1.30. MRS Oil Nigeria Plc appreciated by 20.83 per cent to close at N49.30 while Neimeth International Pharmaceuticals rose by 20.14 per cent to N1.67 per share.

On the negative side, Tantalizers and Consolidated Hallmark Insurance recorded the highest loss of 11.48 per cent each to close at 21 kobo and 54 kobo respectively. Prestige Assurance dropped by 8.89 per cent to close at 41. NPF Microfinance Bank declined by 8.85 per cent to close at N1.75. Champion Breweries lost 7.42 per cent to close at N3.87 while International Energy Insurance declined by 6.98 per cent to close at N1.20 per share.

Analysts at Cordros Securities said the bullish momentum was accelerated by bargain-hunting “following positive reactions to President Tinubu’s inaugural speech”.

“We envisage extended bargain hunting in the coming week as investors continue to digest the policy direction of the new administration. However, we do not rule out intermittent profit-taking activities. In the medium term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed-income space. Lastly, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings,” Cordros Securities stated.

The Nation had earlier reported in the wake of the rally that market analysts were unanimous that the stock market performance was in response to Tinubu’s inaugural address, with a consensus that the general policy direction would significantly uplift the economy and drive foreign and domestic investments in Nigerian assets. Analysts’ consensus came on the heels of stock market’s biggest single day rally in two and a half years on Tuesday, the first trading session after Tinubu’s Monday inauguration address.

Managing Director, APT Securities and Funds Limited, Mallam Garba Kurfi, said the market was responding to the expectations of reforms implied in the president’s address.

“The speech is excellent, especially as regards converging exchange rate into one; that will attract inflow of foreign Investors.  The removal of fuel subsidy will attract more investments in the refineries and removal of double taxes will also bring more investments into the country, and all these will reduce unemployment and increase productivities,” Kurfi said.

Group Executive Director, Investment Banking, Cordros Capital, Mr. Femi Ademola, said the market was expectedly responding to pro-economy outlook of the Tinubu administration.

He said the peaceful transition of power and the inaugural speech of the president “struck the right cords”, since markets react to sentiments.

According to him, the market is expected to react very strongly and positively to the government agenda including end to fuel subsidy, lower interest rates, end to multiple exchange rates and ease of capital repatriation by foreign investors.

“These are expected to attract investments back into the country as investors return and strengthen the country’s exchange rate. Perhaps, one very notable issue is the issue of lower interest rates. This may indicate that the administration will not be looking at attracting portfolio investment with high interest rates but more likely direct and patient investment that would stay for a longer period.

“While the market may still continue with its usual zigzag movements, the implementation of these policy reforms would ensure more positive movements on the market than negative. Supporting the monetary policy changes with the required fiscal reforms such as infrastructure development would add to the sustainability of the growth plan for the economy.

“I am happy with the inaugural speech and the plans of action as it is what is needed at this time. However, it has to go beyond words and intentions, the administration must hit the ground and run with the implementation of the policies,” Ademola, a senior investment banker, said.

Chief Operating Officer, GTI Capital Group, Mr. Kehinde Hassan, said the general economic outlook enunciated by the president would herald new thematic growth for the economy.

He said investors appeared favourably disposed to the various initiatives, noting that the market response was a sort of a vote of confidence in the president’s economic direction.

• Tasks successor on innovations

Since President Bola Tinubu assumed duty, the atmosphere in most Ministries, Departments and Agencies (MDAs) has been subdued as anxious staff mmebers await the appointment of key government functionaries to man the various MDAs.

On-the-spot review at the weekend indicated that the energy that used to pervade most MDAs was absent because Abuja was awaiting  the president’s ministers and other appointees.

Already, there is a list of potential ministers flying around Abuja and civil servants are making permutations on who will likely make the final list.

At the Federal Ministry of Finance, the seventh floor, which houses the minister’s office, has become quiet as the support staff offices were empty.

The Registry was open and the ever-present private security guards could be seen around.

The sixth floor, where the Permanent Secretary operates from, had some activities going on, but it was usually busier.

Another reason for the lack of excitement around government offices in Abuja is the delay in the payment of salaries as government accounts and platforms used to pay civil servants had been frozen for about three weeks.

On Friday, many workers stayed away from work because of the hike in fare brought on by the removal of subsidy. As a result, the Federal Secretariat was scanty.

However, Permanent Secretaries were running the ministries as much as they could.

Last week, the Permanent Secretary, Federal Ministry of Finance, Mallam Aliyu Ahmed, was at the Business Session of the Fiscal Liquidity Assessment Committee (FLAC) retreat, organised by the Central Bank of Nigeria (CBN), where he said what measures the government has put in place to stop contractors and debtors from “gaming the system”.

His counterpart at the Ministry of Federal Capital Territory (FCT), Olusade Adesola, has constituted a Hajj Committee for the year to ensure hitch-free pilgrimage for intending FCT pilgrims to the Holy Land.

Until Tinubu makes his cabinet appointments, activities in Abuja will be on a slow pace.