Business

Market Indicators And FGN Bonds Drop

Published

12 years ago

June 26, 2013

On speculation that foreign investors’ exist as a result of alleged easing of US Federal Reserve’s Stimulus Package among others, the twin market performance indicators on the Nigerian Stock Exchange (NSE), the all share index and the market capitalisation last week finished on the red as both lost well over 5 per cent respectively.
In specific terms, the all share index otherwise called the composite index closed at 36,4644.39 basic points from an opening of 37,249.93 basis points while the market capitalisation of listed equities finished at N11.71 trillion from an opening value of N11.97 trillion.
The first trading day on the Nigerian bourse during the week under review finished on a negative note having recorded 0.44 percent lost. The bears’ hold on the market continued the next day as the market dipped further by 0.16 percent.
The bulls took over on Wednesday as the market garnered 0.30 percent on the strength of highly capitalised stocks.
The bears took over the market on Thursday as the market depreciated by 0.46 percent while on Friday it recorded a further plunge of 1.35 percent.
A total of 1.63billion units of shares worth N21.68billion were exchanged by investors in 30,952 transactions. The week’s activity chart was led by the financial service sector having recorded a turnover of 1.10 billion units of shares valued at N10.55 billion traded in 16,479 deals which represents 67.67 percent, 48.67 percent and 53.24 percent of the overall traded volume, value and deals respectively.
The conglomerate sector emerged second on the activity chart with a turnover volume of 141.20 million units of shares valued at N412.13 million in 1,046 deals contributing 8.6 percent, 1.90 percent and 3.38 percent of the total equity turnover volume, value and deals in that order.
The Consumer Goods Sector came third with a recoded turnover volume of 141.02 million units of shares at the cost of N8.10 billion traded in 6,365 transactions.
According to the NSE weekly report transactions in the shares of Zenith Bank Plc, Sterling Bank Plc and Transactional Corporation of Nigeria Plc accounted for 419.40 million units of shares worth N3.542 billion in 3,173 trades contributing 25.72 percent, 76.34 percent and 10.25 percent to the overall equity market turnover volume, value and deals respectively.
A total of 32 stocks appreciated in their prices during the week under review while 49 stocks depreciated in their prices and 112 share prices remained unchanged.
Meanwhile, major equity markets around the globe were upbeats as their indices gained marginally. The NASDAQ, S $ P500 and Dow Jones rose by 1.26 percent, 1.02 percent and 0.78 percent respectively during the review week.
In Europe, the German Dax, FTSE100 and France CAC 40 increased by 0.66 percent, 0.78 percent and 1.20 percent respectively.
Nikkei 225 rose by 4.57 percent while Hangbeng and BSE Sensex, all in the Asia Pacific region increased by 2.4 percent and 0.57 percent in that order.
Those on the downside were Brazilian Bovespa which reduced by 2.62 percent while Russia’s RTS Index dropped by 0.68 percent.
The Federal Government of Nigeria (FGN) bonds to be issued during the third quarter of 2013 will range between N140 billion and N250 billion according to Debt Management office (DMO) calendar.
In comparism with a range of N200 billion to N280 billion issued during the corresponding period in 2012, the range was on the downside though the actual bond issued was N210 billion.
The DMO stated that, in the next quarter, the 5-year and 20-year bonds would be reopened even as a new 3-year bond would be issued.
The Treasury bill calendar revealed that a total of N751 billion worth of bills across all maturities are to be issued during the third quarter of this year meanwhile the actual amount of treasury bills issued during the third quarter of 2012 was N1.538 billion.
According to market analysts, the drop in the amount of FGN bonds to be issued reflects government’s plan to reduce domestic borrowing.
The over the counter bond market last week saw more sell off than bargain hunting as the 20-year, 10 percent FGN July 2030 instrument dipping by N0.69 while yield rose to 13.29 percent from 13.69 percent. The 10-year 7 percent FGN October 2019 paper depreciated by N0.54 even as yield surged from 13.01 percent to 13.18 percent. The 5-year 4 percent FGN April 2015 bond tanked by N0.07 having yield rose from 13.41 percent to 13.56 percent.
On the flipside the 7-year 9.25 percent FGN September 2014 debt paper gained N0.01 even as the yield declined from 13.39 percent to 13.44 percent.

Business

FIRS Clarifies New Tax Laws, Debunks Levy Misconceptions

Published

1 day ago

December 5, 2025

The Tide

The Federal Inland Revenue Service has said that Nigeria’s newly enacted tax laws are designed to strengthen economic competitiveness, attract investments, and improve long-term fiscal stability.

The agency also clarified that the much-debated four per cent development levy on imported goods is not a new or additional tax burden, but a streamlined consolidation of several existing levies.

According a statement released Wednesday, one of the most misunderstood elements of the new tax framework is the four per cent development levy with the agency explaining that the levy replaces a range of fragmented charges — such as the Tertiary Education Tax, NITDA Levy, NASENI Levy and Police Trust Fund Levy — that businesses previously paid separately.

This consolidation, it said, reduces compliance costs, eliminates unpredictability and ends the era of multiple agency-driven levies. The law also exempts small businesses and non-resident companies, offering protection to firms most vulnerable to economic shocks.

Another major clarification relates to Free Trade Zones. Earlier commentary had suggested that the government was rolling back the incentives that have attracted export-oriented investors for decades. However, the reforms maintain the tax-exempt status of FTZ enterprises and introduce clearer guidelines to preserve the purpose of the zones.

“Under the new rules, FTZ companies can sell up to 25 per cent of their output into the domestic market without losing tax exemptions. A three-year transition period has also been provided to allow firms to adjust smoothly.

“Government officials say the reforms aim to curb abuses where companies used FTZ licences to evade domestic taxes while competing within the Nigerian market”, it said.

With the new measures, Nigeria aligns with global FTZ models in places like the UAE and Malaysia, where the zones function primarily as export hubs for logistics, manufacturing and technology.

The introduction of a 15 per cent minimum Effective Tax Rate for large multinational and domestic companies has also been met with public concern. But the FIRS notes that this policy aligns with a global tax agreement endorsed by over 140 countries under the OECD/G20 framework.

Without this adoption, Nigeria risked losing revenue to other countries through the “Top-Up Tax” mechanism, where the home country of a multinational collects the difference when a host country charges below 15 per cent. By localising the rule, Nigeria ensures that tax revenue from multinational operations remains within its borders.

Business

CBN Revises Cash Withdrawal Rules January 2026, Ends Special Authorisation

Published

1 day ago

December 5, 2025

The Tide

The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, with effect from January 2026.

In a circular released Tuesday, December 2, 2025, and signed by the Director, Financial Policy & Regulation Department, FIRS, Dr. Rita I. Sike, the apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances.

However, with time, the need has arisen to streamline these provisions to reflect present-day realities.

The statement said the new set of cash-related policies is designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.

“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

“With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,”

“Effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million”, it said.

According to the statement, withdrawals above these thresholds would attract excess withdrawal fees of three percent for individuals and five percent for corporates, with the charges shared between the CBN and the financial institutions.

Daily withdrawals from Automated Teller Machines (ATMs) would be capped at N100,000 per customer, subject to a maximum of N500,000 weekly stating that these transactions would count toward the cumulative weekly withdrawal limit.

The special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly has been discontinued.

The CBN also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at N100,000. Such withdrawals will also form part of the weekly withdrawal limit.

Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.

They must also create separate accounts to warehouse processing charges collected on excess withdrawals.

Exemptions and superseding provisions
Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.

However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.

The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.

Business

Shippers Council Vows Commitment To Security At Nigerian Ports

Published

1 day ago

December 5, 2025

The Tide

The Nigerian Shippers Council (NSC)has restated its commitment towards ensuring security at Nigerian seaports.

Executive Secretary/Chief Executive Officer of the Council, Dr Pius Akuta, said this in Port Harcourt, while declaring open a one day workshop organized by the Nigerian Shippers Council in collaboration with the Nigerian police( Marin Division).

Theme for the workshop was ‘Facilitating Port Efficiency; The strategic Role of Maritime police “

Akuta who was represented by the Director, Regulatory Services, Nigerian Shippers Council, Mrs Margeret Ogbonnah, said the workshop was to seek areas of collaboration with security agencies at the Ports with a view to facilitating trade

Akuta said the theme of the workshop reflects the desire of the council and the Nigerian police to build capacity of police officers for better understanding and administration of their statutory roles in the Maritime environment.

He said Nigerian seaports has constantly been reputed as one of the Port with the longest cargo dwell in the world, adding,”This is so, because while it takes only six hours to clear a containerized cargo in Singapore Port, seven days in Lome Port, it takes an average of 21 days or more in Nigerian Ports” stressing that this situation which has affected the global perception index on Ease of Doing Business in Nigerian seaports must be addressed.

Akuta said NSC which is the economic regulator of the Ports has the responsibility of ensuring that efficiency is established in the Ports inorder to attract patronages.

“Pursuant to its regulatory mandate, the NSC has been collaborating with several agencies to ensure the facilitation of trade and ease of movement of cargo outside the Ports to avoid congestion”he said.

Also speaking the commissioner of police, Eastern Port Command, Port Harcourt, CP Tijani Fakai, said Maritime police has played some roles in facilitating Ports efficiency.

He listed some of the roles to include ensuring security and crime prevention at the Ports, checking of illegal fishing activities at the Ports, checking of human trafficking and drug smuggling and prevention of fire incident at the Ports.

Represented by ACP, Rufina Ukadike, the CP said police at the Ports have also helped in the decongestion and prevention of unauthorized Anchorage.

He commended the Nigerian Shippers Council for the workshop and assured of continuous collaboration.

Speaking on the dynamics of cargo handling, Deputy Controller of customs, Muhydeen Ayinla Ayoola, said the launching of electronic tracking system and dissolution of controller General Taskforce has helped to ensure efficiency at the Ports.

Ayoola who represented the custom Area Controller Port Harcourt 1 Area command, however raised concerned over rising national security threat , which according to him has affected efficiency at the Ports.

John Bibor