The Nation Newspaper

Tag: MARKET

  • Banking stocks lead returns at stock market

    Investors in banking stocks earned as much as a double of any other average investor in the Nigerian equities market in the first half of this year.

    A six-month review of sectoral indices for the period ended June 30, 2017 at the weekend showed that banking stocks significantly outperformed the benchmark index and other sectoral indices at the Nigerian Stock Exchange (NSE).

    The NSE Banking Index, which tracks price appreciation in the most active banking sector, indicated average year-to-date return of 45.08 per cent for the first half, almost a double of the average year-to-date return of 23.23 per cent for the overall stock market.

    The NSE Industrial Goods Index, which includes Nigeria’s most capitalised company-Dangote Cement, recorded the second highest return with a six-month return of 21.12 per cent. Expectedly, the NSE 30 Index, which tracks the 30 most capitalised stocks that largely comprise of banking and industrial goods stocks, recorded average return of 25.87 per cent within the period.

    With the exception of investors in the emerging stocks segment of the market, other tracked indices showed modest positive returns within the period. The NSE Insurance Index recorded a return of 9.16 per cent. The NSE Consumer Goods Index posted a gain of 11.61 per cent. The NSE Oil and Gas Index recorded the lowest return of 3.35 per cent on the main board.

    The NSE Lotus Islamic Index, which tracks stocks that comply with Islamic investment guidelines, indicated a return of 11.15 per cent.

    Meanwhile, pensioners appeared to be in for wider dining tables as the NSE Pension Index, which tracks a portfolio of stocks specially screened for pension investment in line with the pension investment guidelines, posted a return of 42.92 per cent.

    However, the NSE ASeM Index, which tracks equities on the Alternative Securities Market (ASeM) for emerging stocks, posted a negative return of 1.27 per cent within the first half of the year.

    Also, investors earned net capital gain of N344 billion during the three-day trading session last week. Aggregate market value of all quoted equities at the NSE rose from the week’s opening value of N11.108 trillion to close the week at N11.452 trillion, representing net capital gain of N344 billion. The benchmark index for the stock market, the All Share Index (ASI) also rallied from its index on board of 32,122.14 points to close the week at 33, 117.48 points.

    Total turnover stood at 1.171 billion shares worth N11.458 billion in 13,763 deals during the three-day trading session compared with a total of 2.311 billion shares valued at N24.577 billion traded in 27,836 deals in the previous five-day trading week.

    The financial services sector led the activity chart with 899.307 million shares valued at N6.779 billion traded in  7,977 deals; thus contributing 76.78 per cent and 59.16 per cent to the total equity turnover volume and value respectively. The conglomerates sector followed with 111.022 million shares worth N189.462 million in 952 deals while the consumer goods sector ranked third with a turnover of 56.912 million shares worth N2.373 billion in 2,055 deals.

    The three most active stocks were United Bank for Africa Plc, Transnational Corporation of Nigeria Plc and Access Bank Plc, which altogether accounted for 499.566 million shares worth N3.717 billion in 2,954 deals, contributing 42.65 per cent and 32.44 per cent to the total equity turnover volume and value.

    Also traded during the week were a total of 869,680 units of Exchange Traded Products (ETPs) valued at N19.150 million in 16 deals compared with a total of 63,927 units valued at N841,330.04 traded in 11 deals in the previous week.

    In the debt segment, a total of 20 units of Federal Government Bonds valued at N16,487 were traded in a deal compared with seven deals struck for 2,212 units valued at N2.098 million in the previous week.

     

  • Anxiety as lead-infected jewelries flood market

    Nigerian jewellery industry witnessed expansion as one of the leading jewellery manufacturers in the country, Rare Gems Limited, launched its own of brand of exotic wrist watches even as consumers were cautioned against the adverse effect of wearing jewelleries with lead components.

    Speaking at the launch, the Chief  Executive Officer, CEO, of the multimillion jewellery firm, Mrs. Talatu  Olulana, said that the premium wristwatches were manufactured with 25 percent local content and 75 per cent foreign content.

    Expatiating, she said that the seven new designs of wristwatches and other jewelleries from the firm were designed and manufactured for tropical environment. “Rare Gems jewelleries are made to withstand African climate. They are made five times stronger than the conventional jewellery to suit the tropical climate.

    “Conventional jewellery may wash because our climate is a bit harsh but products from Rare Gems do not wash because the hot climate was taken into consideration during the manufacturing.” She added that the wristwatches are water resistant and have up to five years guarantee.

    Speaking about the potential of the jewellery industry in Nigera, Olulana, who delved into the industry 17 years ago, said that the industry has a huge potential in Nigeria as the country is enriched with the highest grade of stainless steel which, according to her, is the main metal in durable jewellery manufacturing.

    “Look at the Ajaokuta Steel Industry and the rest of them. Nigeria has the finest steel but unfortunately it’s being exported at lower value. But if we can harness them and begin to manufacture here, it would be good for Nigeria and create employment,” she said.

    Talking about regulating the quality of jewelleries being imported into the country, Olulana regretted that government does not have any agency that monitors the kind of jewelleries that come into the country, thereby exposing consumers to many dangers.

    She disclosed that many of those jewelleries are made with metals and chemicals which are injurious to our health. She noted that lead which is one of the components in most of those conventional jewelleries has adverse effect on health.

    “To some consumers, what they are interested in is pricing but lack knowledge of the components of the products. Please seek for more information and when that fails to come forth, refuse to buy the product.”

    On the Refund and Return policy of the company, the CEO said that the company’s policy allows a refund and an exchange if the product does not live up to the guaranteed time, however stressing that “All our wristwatches come with guarantee and free servicing.

    “We have the Rare Gems Standard which has two years warranty and the Rare Gems Premium which has seven years warranty but our products are so superior that we do not meet demand. We are doing more than N70million annually and we have not harnessed the jewellery potential in this country.”

    In an interview with one of the distributors of the company, Mrs. Toiyla, Agada, she revealed that consumers were responding positively to the indigenous jewelleries, adding that the quality is very high and the prices very pocket friendly.

  • CBN lifts forex market with $195m

    CBN lifts forex market with $195m

    The Central Bank of Nigeria (CBN) yesterday intervened in the foreign exchange (forex) market with a  $195 injection into key segments of the economy.

    The forex inflow, which came on the first day of business after the Eid-el-Fitr celebration, went to various segments of the inter-bank market.

    The intervention was part of CBN’s plans to shore up the value of the naira against the dollar and achieve its exchange rate stability goal. The naira continued its stability in the forex market, closing at N370/$1 in the parallel market, from N520/$1 in February.

    The narrowing of rate gap was achieved after the CBN in the last four months pumped over $5 billion into the interbank, bureau de change, wholesale spot and forwards auction segments of the market.

    Also, supporting the naira is the newly introduced Investor/Exporter Forex window which has attracted $2.5 billion from foreign investors since April 24, when it was introduced.

    Analysts said the introduction of a new foreign exchange window for investors and exporters targeted at increasing forex supply in the market and allowing the timely settlement of transactions helped achieve the current exchange rate.

    A breakdown of Wednesday’s intervention indicates that authorised dealers in the wholesale window segment received a $100 million offer from the bank. Small and Medium Enterprises (SMEs) and invisibles windows were allocated $50 million and $45 million.

    The CBN has been intervening on the official market in the last few months to narrow the spread between rates on the official market and black market.

    The naira came close to converging at the investor foreign exchange window and black market last Friday, with analysts attributing the development to increased dollar liquidity in the forex market.

    The naira was quoted unchanged at N370 per dollar at the black market.

    Commercial lenders are yet to put up a quote on the interbank market. The naira closed at N305.85 to the dollar on the interbank window on Friday.

    Nigeria is contending with a currency crisis brought on by low oil prices, which has tipped the economy into recession and created chronic dollar shortages. The CBN is keen on attracting foreign investors and at the same time maintaining a strong currency to ward off inflation.

    It has at least six exchange rates, including a retail rate set by licensed exchange bureaux, official and black market rates and a window for investors where the naira can be traded at rates set freely between buyers and sellers.

    The CBN’s Acting Director, Corporate Communications Department, Isaac Okorafor, confirmed the figures and disclosed that the Bank was impressed by the high level of transparency exhibited by stakeholders in the market.

    The CBN had last Friday allocated $240 million to the Retail Secondary Market Intervention Sales (SMIS) for spot and forward deals. With the rate of inflation dropping from its April 2017 figure of 17.24 per cent to 16.25 per cent at the end of May, 2017, the CBN spokesman says the CBN remains upbeat that the fortune of the naira will improve further in the months to come.

    But JPMorgan Chase & Co. and Renaissance Capital have said the naira rally, sparked by increased sales of foreign exchange forwards and looser capital controls, is contingent on the CBN continuing to sell down its foreign reserves.

    Nigeria’s gross external reserves have continued to drop as the CBN intensify interventions in the forex market. According to CBN data, the reserves fell from $30,291,917,668 on June 7 to $30.2 billion on June 16.

    The reserves had decreased by 1.19 per cent ($37 million) to $30.49 billion as at May 25 from $30.86 billion recorded at the end of April.

  • Ambode gives Oke-Odo market traders seven days to leave roadside

    Ambode gives Oke-Odo market traders seven days to leave roadside

    Lagos State Governor Akinwunmi Ambode yesterday gave Agbado-Oke Odo Market traders seven days to stop trading on the roadside or have the place shut.

    At a meeting with the market leaders held at the Lagos House in Ikeja, Ambode said the government could no longer condone the traders excesses.

    The traders, he said, were in the habit of displaying their wares on the road, thereby causing traffic gridlock and other environmental nuisance.

    Ambode, represented by the Secretary to the State Government, Mr Tunji Bello, said the market leaders had been warned several times to rein in the traders. This, he noted, has not yielded result as some of the traders have become recalcitrant.

    Besides causing traffic, the traders, he said, were also fond of dumping refuse on the road.

    The governor said: “This is just to come and deliberate on the Agbado Oke-Odo Market because of the situation there. The market has become a stumbling block particularly to those using the road. The traders have blocked the Lagos-Abeokuta Expressway to the extent that even the contractors working there don’t have place to work because they have taken over the area.

    “They cause a lot of traffic gridlock and people coming from Ota or from Abule Egba don’t have the road to connect other areas. We have warned them consistently but we are yet to get any result. That is why we have summoned today’s (yesterday’s) meeting.

    “The meeting is basically to call them to order and give them the last warning. The idea initially was to shut down the market today but the governor decided that we should give them just one week to put things in order.”

    He said though government was not interested in shutting down markets, it would wield the big stick if traders continue to constitute themselves as menace to other road users.

    “What we are saying is that the government is not interested in shutting down any market because of the economic implication on the people who have to survive and live.  As a government, we are not interested in shutting down business enterprises and all that, but if it is constituting a menace and inconveniencing other people, we will have no choice than to wield the big stick, and that is why we are giving the market leaders the last warning to go and re-order their market.

    “The leaders of the market must sit up and look at how to help government because we cannot say because we are trading, we should inconvenience people who go to work from Abule Egba to Lagos Island for instance and to other places and they have to spend hours on that road just because of the activities of the traders.

    “Apart from that, we have a lot of filth on the road because the market people just dump their refuse on the road. We don’t want that anymore and that is why we are giving this last warning. We don’t want anybody on the road again and whatever we have to do internally as a government, we will not hesitate to do. We will send task force and the men of the Kick Against Indiscipline (KAI) to the place to ensure sanity.

    “This warning to Agbado Oke-Odo traders also applies to other markets in the state. Any market where traders are blocking the road and constituting menace to others will be shut down till further notice,” the governor warned.

    Responding on behalf of others, Babaloja Araromi Agbado Oke-Odo Alhaji Mukaila Oyinlola said the traders have ignored all warnings to leave’ the road. He said the government’s resolve was welcome.

    Iyaloja Araromi Oke-Odo Market Mrs Dupe Shonola and Babaloja General of Agbado Oke-Odo Market Alhaji Abiodun Kosoko called for the expansion and modernisation of the market.

  • LFTZ: Catalyst for real estate market, urban growth

    LFTZ: Catalyst for real estate market, urban growth

    The United Nations projects that Nigeria’s population will cross the 250 million mark by 2030. An estimated 10th of this figure will live and work in Lagos in an estimated area of 356,861 hectares of which 75,755 are wetlands. To the Lekki Free Zone (LFTZ), this presents development opportunities for real estate developers. Through the LFTZ, the host communities are also being transformed into a new haven for the upwardly-mobile.  MUYIWA LUCAS  writes.

    About a decade ago, Mr. Anthony Konyeaso, an engineer, declined an investment offer in real estate in Ajah area of Lagos State. His refusal to buy a plot of land in that region then was quite understandable given the difficulty of accessing the area and  infrastructural deficit in the region.

    But things are changing now on the axis. Just about a month ago, Konyeaso became the last of a close circle of eight friends, all middle-aged professionals, to relocate from Surulere to Ibeju-Lekki axis of the state.

    The group typifies a slow but growing exodus of middle-income earners from the Lagos Mainland to Island communities, now considered affordable to either build or rent residential apartments. Such movement is being hastened by the relief of commuting along this corridor, which hitherto posed a hydra-headed problem for residents and workers on the Lagos Island.

     The rush

    “The major works done by the state government on the Lekki-Epe Expressway has reduced the traffic congestion that used to be a problem for people living after Ajah,” explained Konyeaso.

    This, he further explained, is why several undeveloped estates in that area have suddenly experienced rapid development of houses. Besides, he noted that houses that used to be unoccupied in the area were now being filled as more people move in.

    Indeed, such is the rush to the Ibeju-Lekki corridor for realtors and other property owners, now positioning for the mega opportunities offered by the axis. While many see the area as the ‘new Lagos’, Konyeaso is convinced that the stimulant for the surge in real estate development in the region is based on the Lekki Free Trade Zone (LFTZ).

    His position on this may not be wrong. For any gigantic project  comes with several opportunities. The LFTZ, an ambitious 16,500-hectare business hub, is a joint venture between the state government and private investors. It is expected to create an estimated 300,000 jobs and significantly boost the state’s gross domestic product (GDP).

    LFTZ investments

    According to the Commissioner for Commerce, Industry and Cooperatives, Rotimi Ogunleye, the net value of infrastructure at the zone stands at $4 billion. He also revealed that 116 investors had registered with the zone; with 16 already operational. “The Lagos State Government has, in the last two years, released N698.47 million as part of the state’s equity contribution to the joint venture,” he said.

    To further boost its commitment to the project, Governor Akinwunmi Ambode last March pledged to accelerate financial commitments to the zone. And to match his words with actions, Ambode announced an additional $62 million funding to be released to the project over the next six months. This is to be borne by the government and the China Africa Lekki Investment Limited, one of the partners on the project. The government’s commitment to start work on the Lekki Deep Sea Port as well as critical roads in the zone has been welcomed by investors in the zone and this is expected to accelerate investments going on in the zone. Dangote Group, which is the biggest private investor in the zone, is said to have invested about $4 billion in its refinery, fertiliser processing plant, gas pipeline project and a petro-chemical plant projects so far.

     

    Rising estate development

    The massive scale of these projects has already spurred a spike in real estate value within the Ibeju-Lekki axis as developers scramble to provide housing to the estimated 1,000 workers on the projects. During a business luncheon in Lagos, the Nigerian Institute of Estate Surveyors and Valuers (NIESV) urged its members to take advantage of the opportunities in the zone by investing in real estate development within the area.

    “The times are very exciting for us as real estate developers and residents here because we cannot even stop dreaming of the opportunities it will bring to this area when completed. At present, our property business is on the upswing, so can you imagine what it will be like when the LFTZ is operational?” asked Sunday Michaels, a developer in one of the estates along the corridor.

    He admitted that the opportunities, such as the growing real estate development in the Ibeju-Lekki region, had been triggered by the potential of the LFTZ. Besides, Michaels explained that “traffic is easier; the air seems cleaner here; and, most importantly, everyone is talking business opportunities that may arise because of the zone’’.

    However, experts warned that there was work to be done to sustain the excitement in the zone and ensure that the objectives were realised. The proposed sea and air ports as well as access roads to the zone, were critical to the success of the project. The objective of free trade zones is to spur manufacturing and export of such goods to boost the contribution of goods exports to the Gross Domestic Product (GDP).

    The Lagos Free Zone is expected to be Nigeria’s biggest example of this. Ambode has so far shown that he realises this and is committed to facilitating these critical enablers. “It is clear that we have to dualise the Lekki-Eleko Road beyond the zone to withstand the influx of vehicles that will be making use of the road to access the zone. With this, we will be able to sustain the investments in the area,” he sai.

     

    Needed expertise

    While the zone, undoubtedly, presents immense opportunities to all stakeholders, it has also faced criticisms from experts as being too undefined. This is an area that the state government and urban development investors in the zone are working to address.

    One of the private investors in the zone, Rendeavour Nigeria Limited,  which specialises in unique satellite city concepts, seems to have shown promise on what real estate development should be in such areas.

    The firm, a force in Africa’s urban land development, has invested in about 30,000 acres across Nigeria, Kenya, Ghana, Zambia and the Democratic Republic of Congo. It is, therefore, instructive that Rendeavour has committed to developing 1,000 hectares within the LFTZ, with provision of critical infrastructure that would further aid urban development in the axis.

    Alluding to the efforts and initiatives of his firm, Rendeavour’s Head of West Africa Operations, Mr. Yomi Ademola, said the firm’s efforts in other countries where testify to its credibility. He explained that a 5,000-acre city in Tatu, Kenya being handled by the firm is the country’s second largest project. The project, he explained, has attracted thousands of residents as well as foreign firms looking for manufacturing area in well-developed and managed spaces.

    “In Nigeria, specifically in Abuja and Lagos, we plan to replicate what we have done elsewhere, which is to invest in helping create world-class infrastructure that will help sustain and accelerate economic growth, meet the aspirations of a burgeoning middle class and serve as a catalyst for urban development,” Ademola added.

  • Fire guts Aba beverage market

    Shop owners on Tenant road beverage market, Aba, Abia State, have lost goods worth millions of naira to a mysterious fire that engulfed the building.

    It was gathered the fire lasted about four hours and took the intervention of men of the fire service to prevent it from spreading to adjourning buildings.

    Market sources said about seven rooms, three beverage stores and four rooms stocked with bags of rice were burnt.

    A resident, Chidiinma, said: “The fire started around 9pm when traders had gone home. The cause could not be ascertained because the people have stopped using electricity for a long time.

    “The damage could have been more if the fire service officers had not arrived in time.”

    A shop owner, who could barely talk, said his family lost all it was able to gather over the years. He appealed to the government to come to their aid.

    The Aba Chief Fire Officer, Mr. Okezie Uche, confirmed the incident. He said the cause of the fire was still unknown.

    According to him, the battled the fire from 9m till about 1am, before they eventually overpowered it. He said they were able to save over a billion naira property.

  • New forex window triggers market confidence

    New forex window triggers market confidence

    foreign investors who exited Nigeria in the wake of the crash in crude oil prices and the subsequent currency crisis may be on their way back. The Investors’/Exporters’ Forex (FX) Window introduced by the Central Bank of Nigeria (CBN) is the attraction. The window, which offers investors the opportunity to sell dollars at rates of their choice, provided they find willing buyers, is gradually restoring confidence to the forex market. Last week’s rally in equities market and stability enjoyed by the naira in the official and parallel markets have been attributed to rising investors’ confidence in the market over the new window, writes COLLINS NWEZE.

    For two years, the Nigerian equities market and the foreign exchange (forex) market were in shambles.  The All Share Index (ALSI) was continuously shrinking and the naira weakened against other currencies, especially the dollar.

    But on April 24, the Central Bank of Nigeria (CBN) opened a special forex window for investors and exporters. The “Investors’ & Exporters’ FX Window”, CBN’s Director in charge of Financial Markets Alvan Ikoku said, would boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions by all parties.

    In this market, the FMDQ OTC Securities Exchange (FMDQ) gives a price quote based on its bi-daily survey of market rates. Many investors have welcomed the new window but not a few are concerned about the rate and the degree to which it will be allowed to truly float. So far, the feedback from the window has been positive for the market. In its first week, the rate traded between N374-380/$. The window closed at N382 on May 4.

    Group Head, Global Markets at Access Bank Plc, Dapo Olagunju, said the new window allows investors to sell dollars at any rate they choose and is expected to help bring investors’ confidence into the market.

    He said: “Investors/Exporters FX Window helps participants execute deals as based on their own market agreement. Today, both the dollar demand and supply sides are beginning to talk to each other and there is likely to be rate convergence soon,” he said.

    Continuing, he said that previously, the CBN had over $4 billion forex backlog, and found it difficult to settle ticket remittances of airlines. “Today, we are seeing customers buying Business Travel Allowances and Personal Travel Allowances with ease. It has been a difficult time for banks. We also see a regulator that is ready to sanction any bank that violates its set rules,” he said at a forex seminar organised by Access Bank in Lagos.

    Speaking on exchange rate stability, the Managing Director of Renaissance Capital (RenCap) Nigeria, Temi Popoola, described as inconsequential the naira’s exchange rate against the dollar. He said coming in and exiting without encumbrances remained the most important thing to investors.  “The argument should not be whether the naira is exchanged at N300 or N450 to the dollar. It should be whether investors will be able to come in and go out of the market at will”, he said.

     

    Forex interventions to continue

    Despite the lull in forex trading activities at the close of last week, the CBN has assured of its continued intervention in the inter-bank market.

    A reliable source at the CBN said that the bank was determined to ensure that the gains made by it in recent times, with regards to the stability of the exchange rate, are not eroded.

    Disclosing that the apex bank did not make major interventions all through the week ending May 12 because there was a surfeit of forex in the system, the source maintained the apex bank would continue to make necessary interventions to ensure the stability of the naira.

    The source further disclosed that the windows established by the CBN for Small and Medium Enterprises (SMEs) as well as for investors and exporters were yielding the desired results by providing access to forex and easing pressure on the market.

    Speaking on the issue, CBN’s Acting Director, Corporate Communications, Isaac Okorafor, reiterated the bank’s commitment to ensure adequate forex supply to genuine customers to achieve the goal of forex rates convergence.

    The CBN had since February been involved in massive interventions in all segments of the interbank market to ensure forex liquidity and availability.

    Managing Director, Afrinvest West Africa Plc, Ike Chioke, said the Investors’/Exporters’ Forex (FX) Window is winning the confidence of foreign investors. He said the window attracted foreign investors’ appetite for Nigerian assets last week, leading to impressive appreciation in the equities market and stabilising the naira.

    He explained that renewed investor participation in equities saw the banking, consumer goods, oil & gas, industrial goods and insurance sector indices, gaining 22.3 per cent, 16.7 per cent, 8.4 per cent, 4.1 per cent and 2.7 per cent respectively since the launch of the I&E window.

    The volatility in the forex market has also subsided. The Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) rates as published by FMDQ stood at N378.87/$1 at the beginning of last week while slightly appreciating by mid-week.

    However, a reversal of trend saw the rates inching back to N378.87/$1, indicating a flattish week-on-week close, but the CBN’s daily forex interventions continued to keep the rates stable at the official market. The rates opened the week at N304.70/$1 and appreciated to N304.60/$1 at the close of the week. At the parallel market, rates opened the week at N390/$1 and remained unchanged on four to five trading days, save for Friday, when rates appreciated to N386/$1.

    The ALSI trended on a 10-day bullish streak, due to the improvements in the forex market. Within the last two years, the exit of foreign portfolio investors from the equities market, given the perceived mispricing of the domestic currency, accounted for the drag witnessed in the equities market.

    The benchmark index has recorded a decline on only two trading days since the launch of the window on April 24, while appreciating 11.9 per cent post launch with year-to-date return currently at +4.9 per cent.

    “Our interactions with FX traders and Afrinvest equity brokerage desk suggest that the launch of the I&E FX window on the 21st of April, 2017 was the major “game changer” as the equities market has witnessed improved participation from foreign portfolio investors, especially last week,” the investment and research firm said in an emailed report.

    It hinged the current bullish trend in the market on foreign investors’ perception of activities within the forex market, particularly the  sustainability of the newly launched I&E FX window.

    “If managed appropriately, we expect to see influx of foreign investors which could potentially spark massive rallies in the market given the comparably cheaper valuation of Nigerian equities,” it said.

    The report also said that in the last two years, foreign investors’ appetite for local assets waned significantly on the back of currency crisis which in turn has fundamentally weakened macroeconomic performance, dragged corporate earnings and also impacted on equities market viability.

    The condition also lingered into this year as investors dumped equities for less risky investment opportunities in the fixed income market, especially given the current relatively high yield environment.

    “Accordingly, the negative performance of the Nigerian Bourse in 2016 (-16.9 per cent) was sustained as the year-to-date return of the benchmark index deteriorated as low as -8.5 per cent in March before marginal improvements were subsequently recorded,” it said.

    The Afrinvest report also linked the market rally to recent improvements in global oil prices above the $45/barrel benchmark, improvement in domestic production, currently above two mbpd, fiscal responsiveness – including the launch of the Economic Recovery and Growth Plan (ERGP) by the Fedweral Government.

    Other reasons also include the successful issuance of $1.5 billion Eurobond, passage of 2017 budget – as well as recent positive readings in manufacturing PMI, which suggest possible rebound in economic activities from second quarter of this year.

    The report projected that this week:  “a similar performance as the I&E FX window has brought about a new price discovery in the forex market with rates on all segments of the market starting to show a bit of convergence. Also, at the official market we expect the CBN to continue to boost market liquidity through its forex interventions while keeping rates at this segment stable”.

    The benchmark indices at the Nigerian stock market showed average week-on-week gain of 7.46 per cent, equivalent to a net capital gain of N677 billion within the five trading sessions last week. The performance of the Nigerian equities outpaced returns in the global advanced and emerging markets as well as key African markets.

    The Nigerian Stock Exchange (NSE) ALSI gained 8.74 per cent during the review period to close at 27,546.68 on May 10. Total market capitalisation closed at N9.52 trillion on May 3 – a 8.55 per cent gain from N8.77 trillion on April 19.

     

    How the new window works

    According to the CBN, forex supply to the window shall be through portfolio investors, exporters, authorised dealers and other parties with foreign currency to exchange to naira. The CBN said, it will be a market participant at the window to promote liquidity and professional market conduct.

    As part of the operational requirements of the window, the CBN said the exchange rates of the transactions would be as agreed between authorised dealers and their counterparties.

    The regulator also reserved the right to intervene as a buyer or seller, as it deems fit, in the window, even as information on transactions between authorized dealers shall be reported to the CBN on a daily basis.

    The approved transactions covered under the new window included invisible transactions, such as loan repayments; loan interest payments; dividends/income remittances; capital repatriation; management service fees and consultancy fees. Also on the list are: software subscription fees; technology transfer agreements; personal home remittances; bills for collection and any other trade-related payment obligations at the instance of the customer. Other eligible transactions, like ‘miscellaneous payments’ detailed under Memorandum 15 of the CBN foreign exchange manual, were covered by the new window.

    Ikoku said that transactions and bills for collection were eligible to purchase foreign currency sourced from the CBN forex window limited to secondary market intervention sales, wholesale (spot and forwards) only.

     

    Other forex windows

    The CBN has also opened a special forex window for SMEs. The window, which would allocate $20,000 per business per quarter, is to help the SMEs import “eligible finished and semi-finished items” needed for their businesses.

    The CBN said the bank’s special intervention was necessitated by its findings that a large number of SMEs were being crowded out of the forex space by large firms.

    “The sum of $20,000 per SME customer per quarter can be done through telegraphic transfer, subject to completion of Form ‘M’ supported with pro forma Invoice and the importer’s Bank Verification Number (BVN),” it said.

    He added that all the processing banks are to ensure that the importers submit relevant shipping documents not later than 60 days from the date of the transfer.

    The information posted on the CBN website defines SMEs as enterprises that have asset base (excluding land) of between N5 million and N500 million and a labour force of between 11 and 300.

  • Borehole for community market

    Borehole for community market

    As part of its Corporate Social Responsibilities, Real Drill HydroKonsult has donated a motorised borehole system to Olugbeja Community Market, through Osogbo Central Lions Club.

    Inauguration of the water project took place amidst pomp and ceremony to the delights of the market men and women who had borne the pain of water scarcity for a long time.

    At the unveiling of the water project, the Chief Executive Officer (CEO) of Real Drill Hydrokonsult, Engineer Ajani Najeem Babatunde, said service to humanity is his watchwords. Mr Ajani also called on government at all levels to be alive to their responsibilities and give water provision a top priority because water is essential in the existence of man.

    In his opening remarks, the President of Osogbo Central Lions Club Lion H.A. Owoo highlighted the essence of Lions Club as a service club which is poised to assist humanity in all facets of life.

    While cutting the tape to inaugurate the project, the Centennial District Governor 404 B-2 Nigeria, Lion Taiwo O.S. Adewumi encouraged traders at Olugbeja Market who are the beneficiaries of the water project to take proper care of the project and always lay emphasis on service to humanity in their daily activities. He had earlier decorated Engineer Ajani Najeeem with the District Governor Centennial pin as a mark of honour and recognition of his philanthropic contributions towards helping humanity.

    To help him cut the tape were the sponsor of the project, Engineer Najeem, Alhaji Yekeen, the Babaloja of Olugbeja Market Adetoro, Mr Musiliu Omotuntun, the Iyaloja of Olugbeja Market, Osogbo, Alhaja Naimot Lawal and Lion Owoo HA, among other dignitaries.

  • Market demolition: Association clears Ambode

    Contrary to insinuations that Lagos State governor, Akinwunmi Ambode ordered the demolition of second wing of Alade Market, Ikeja, Lagos, the Association of Nigerian Market Women and Men in the market, have cleared the air on the incident last weekend.

    The Association, which spoke through its Iyaloja-General, Mrs. Adia Apena in a statement, explained that all marketers in the second wing agreed to a plan to demolish the market.

    Faulting reports making the rounds, the Iyaloja-General said the demolition of the second wing of the market, which started last Sunday, was in line with the resolution agreed to by all the traders on the final relocation of the marketers.

    She said the traders had requested the Ikeja Local Government and the concessionaire, Master Reality International Concepts Limited to provide them with an alternative space to continue trading before the demolition of the second wing of Alade Market. Consequently, she explained, the local government directed the concessionaire to cater for those whose interests might not have been accommodated in the New Alade Market. The concessionaire was then said to have constructed blocks of shops for the affected people.

    “After the concessioner completed the new blocks of shops, the Sole Administrator of Ikeja Local Government, Mr. Abiodun Taiwo, convened a stakeholders’ meeting on the relocation plan for the marketers that were yet to be provided with alternative shops. At the meetings, letters of allocation of shops were issued. And all marketers at the meeting received their letters of allocations. We made resolution that demolition would commence precisely on April 30. By April 28, traders began to move their goods from the market,” Apena said.

    On Sunday, Apena said some traders were still moving their stuff from the market, noting that she was present at the market “to witness their relocation.” This, she said, can be proved based on the ledger that all shop owners signed before they could move from their shops.

    She reiterated that the Alade market “is the first and only market that has been demolished in Lagos, if not in Nigeria, with an alternative for relocation. This arrangement has saved us from disruption of commercial activities.”

    In 2016, the traders at the main wing of Alade Market were relocated to the New Alade Market, which was developed by the Ikeja Local Government in partnership with the concessionaire of Alade Shopping Mall, Master Reality International Concepts Limited. The second wing, which specifically housed the operators of Bureau de Change among others, was not demolished to enable the local government construct an alternative market in order to avoid disrupting their commercial activities.

  • WIPO Day:AVRS takes piracy talks to Alaba market

    WIPO Day:AVRS takes piracy talks to Alaba market

    IN what a guest described as using love to ‘kill’ piracy, the dreaded Alaba International Market, Ojo, Lagos, played host to some filmmakers who seized the opportunity of the World Intellectual Property Organisation (WIPO) Day to speak directly to film marketers on the need to desist from unauthorised replication of their works for commercial gains.

    Alaba has been described as the headquarters of piracy activities in Africa. And previous attempts to raid the market of pirated works had been resisted violently. But the subtle approach used during last Wednesday’s visit, produced a different experience.

    The event was put together by the Audio-Visual Rights Society (AVRS), a company approved by the Nigerian Copyright Commission (NCC) as a Collective Management Organisation (CMO) for Cinematograph Films in Nigeria, in commemoration of WIPO Day.

    April 26 of every year is used by WIPO to raise awareness of how patents, copyright, trademarks and designs impact on daily life and to celebrate creativity, and the contribution made by creators and innovators to the development of societies across the globe.

    Harping on the theme of the event for 2017: ‘Innovation – Improving Lives’, Chairman of AVRS, Mr. Bond Emeruwa, noted that, for him, “the greatest innovation of recent times remains Nollywood. “A gentle fusion of technology and the African art of storytelling – making it possible for a simple campfire story to be seen and heard across nations – informing, educating, fostering unity, peace, love and most of all, entertaining.”

    According to Emeruwa, filmmakers will soon have cause to smile, as their intellectual rights are being enforced for relevant returns.

    “This is an exercise that we have been pursuing vigorously and we promise that soon, filmmakers will have cause to smile. We have engaged with hotels, broadcast organisations and other users of your works and the response has been very encouraging. We implore other users of cinematograph works to ensure they are licensed as we are set to use all means within our power to enforce our rights. The lives of our filmmakers must be improved,” he said.

    He urged  the federal government to speed up the process of implementation of the Copyright Levy (on Materials) order 2012 which he said was signed and left unimplemented since 2012 to the detriment of Nigeria’s creative economy.

    The highpoint of the event was the speech by actress Hilda Dokubo, who was guest speaker of the occasion.

    Speaking frankly to the crowd at the Film Plaza, Fancy and Furniture section of the market, Dokubo analysed how pirates of entertainment works have not only deprived right owners of their source of livelihood, but also of how they have contributed to the ‘collapse’ of film business in Nigeria.

    “To those who decide to make us poor; because when you steal from us, you are actually ripping us off. Which means you have kept away investors from this business; both locally and internationally,” she said.

    Continuing, Dokubo said: “We are all looking for international partners and treaties, so for those who pirate our work, they will kill those treaties and investment. So you are keeping partners away from us.

    “This market is big enough to accommodate all of us, if we all agree to work together. I will tell you how this stealing works; because all of you will say you do not pirate.

    “When you buy a copy and you duplicate and give it to the boys who push them around in wheel barrows for sale, you are a thief. You are killing people, I beg you to stop. That is because people who are investing in this business will not be encouraged.”

    Dokubo however proffered some solutions. “My business here today is to tell you how you are killing us and I am not one of those who cry and not tell how we can correct it. I want to give a few suggestions on how we can correct them,” she said.

    “Rather than you pirating,” she advised,” invest in it. You do not have to be the same investor; the three or more who pirate can come together, sell as group and invest in a work, so that you can distribute them. All the guys who pull themselves together to become mobile distributors, you too can come together to have an association and help us get these movies to the end users. And to those who buy and give to your friends at home; for every time you do that, you are killing this business.”

    Chairman of Fancy and Furniture section, Mr. Emeka Mozoba, who admitted that piracy activities exist in the market, promised “to work hand in hand with the government, NCC, AVRS and other anti-piracy regulatory bodies to fight piracy in Nigeria.”

    Others stakeholders at the event include the new General Manager of AVRS, Mrs. Olubunmi Fawole,  Chairman of Film and Video Producers/Marketers Association of Nigeria (FVPMAN), Emeka Aduah, and Secretary of Yoruba Video Film Marketers Association of Nigeria (YVFMAN), Tunji Adetola.

    Others are Aina Kushoro, Lilian Amah- Aluko, Fidelis Duker, Nobert Ajaegbu, Okey Ogunjiofor, Emma Isikaku and Paul Okoli.