Economy
Special forex window, others attract N7.406tn investments to stocks
Nine months after the Central Bank of Nigeria introduced the foreign exchange window for investors and exporters, the equities market has witnessed an unprecedented growth by N7.406tn, which has led to the near doubling of the Nigerian Stock Exchange’s market capitalisation.
Between April 21, 2017 (when the new forex window opened) and January 19, 2018 (the latest trading day), the equities market has seen approximately 85 per cent appreciation in terms of investors’ worth, meaning a rise in the NSE equity capitalisation from N8.748tn to N16.154tn.
Stocks have seen a huge rally across board evident in the soaring equity capitalisation of listed equities, the All-Share Index, number of deals, as well volumes traded and their corresponding values.
In the same vein, the All-Share Index, volumes traded, deals and value of transactions as of April 20 last year were 25,282.75 basis points, 147.887 million, 2,578 and N836.842m, respectively, while as of January 19 this year, they had appreciated to 45,092.83 basis points, 1.339 billion, 9,053 and N8.629bn in that order.
In the space of nine months, the volume, value and number of deals had appreciated by over 805 per cent, 600 per cent and 251 per cent, respectively.
The CBN said the special forex window dubbed, ‘Investors and Exporters FX Window’, will boost liquidity in the forex market and ensure timely execution and settlement of eligible transactions.
The Chief Executive Officer, NSE, Mr. Oscar Onyema, while commenting on the progress seen in the market at the close of 2017 and the beginning of this year, attributed the growth in the Nigerian capital market thus far to the improvement in the various macroeconomic variables of the country, while also making a special case for the CBN revised forex market rules.
“We attribute this performance, in part, to the central bank’s monetary policies that resulted in increased liquidity in the foreign exchange market,” Onyema said.
According to the NSE CEO, the current situation in the Nigerian FX front has taken away the fear initially nursed by most capital market investors (both local and foreign) and restores confidence in the financial market, hence the rally.
“Before now, some investors never realised the favourable state of the Nigerian market. But after the gain of 2017 and the massive mention it enjoyed even in the international media, those investors who had not been part of the process deemed it appropriate to come on board,” Onyema explained.
The NSE All Share Index suffered mightily in 2015 and 2016 as currency troubles, low oil prices and militant attacks, among others, hit investor sentiment.
But oil prices have moved higher, the central bank has made it easier to swap currencies and the economy has snapped out of recession, explained Zin Bekkali, founder and Chief Executive Officer of Silk Invest.
Many analysts are optimistic that Nigerian stocks will keep rising in 2018.
Punch
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has attended the signing ceremony for MSM Cement Ltd’s Kebbi Cement Plant, a $3 million-tonne-per-annum facility set to drive Nigeria’s industrial growth.
The project, expected to create 20,000 direct and 25,000 indirect jobs, is strategically positioned near the country’s border, enhancing export potential under the African Continental Free Trade Agreement (AfCFTA).
According to a statement over the weekend, signed by Mohammed Manga FCIA Director, Information and Public Relations of the ministry, Edun highlighted the plant as a model of private-sector-driven investment that aligns with President Bola Ahmed Tinubu’s vision for economic stability, job creation, and poverty reduction.
The Executive Governor of Kebbi State, Dr. Nasir Idris called the project a historic milestone, emphasising its transformative impact on employment, particularly for youth and women. He also praised the federal government’s commitment to infrastructure development in the state.
Also present at the event were the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, and the Minister of State for Finance, Dr. Doris Uzoka-Anite, alongside other dignitaries.
The signing marks a crucial step toward industrial expansion, with groundbreaking and construction set to follow. This project will not only boost economic growth but also create lasting opportunities for the people of Kebbi State and Nigeria as a whole, reinforcing the country’s push for economic growth and regional trade.
The Managing Director of Nigerian Railway Corporation, NRC, Dr. Kayode Opeifa on Saturday, hailed the women, stressing that logistics may not be sustainable without their dedicated commitment and resilience.
Opeifa made the observation, as the NRC distributed gifts to women on the occasion of the International Women’s Day IWD.
“We are giving you this, as our token from the Nigerian Railway Corporation”, Dr. Opeifa said, hinting that not only would the NRC continue to improve service delivery, but that his management would not leave a stone unturned, in a bid to appreciate their soaring patronage.
*The Nigerian Railway Corporation NRC distributing gifts on the occasion of the International Women’s Day
One of the recipients, while commending the gesture, specifically noted that the new management has not only improved service delivery, but has also proved that those enjoying the services can be recognised and appreciated.
The Lagos Ministry of Transportation has suspended its enforcement of the e-call-up system, and in line with the demand of the NUPENG, IPMAN, NARTO, PTD and other Union leaders, to enable the Union leaders further engagement with their members.
The meeting was held at the Conference Room of the Transportation Ministry.
The union leaders on the other hand, promised to ensure parking compliance by their members, while the engagement meetings are ongoing. The Ministry will however enforce compliance, in the event of violation of the promise.
This was the fulcrum of their meeting, even as all parties agreed on the importance of the e-call up system as the best solution, for managing trucks’ movement along the Lekki-Epe corridor.
Meeting was attended by the Commissioner for Transportation, Mr. Oluwaseun Osiyemi, the Permanent Secretary, Mr. Olawale Musa and Leaders of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Independent Petroleum Marketers Association of Nigeria (IPMAN), Nigerian Association of Road Transport Owners (NARTO), and Petroleum Tanker Drivers (PTD), a branch of NUPENG.
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