Business
NSE: Shareholders Identify Cause Of Falling Market Indices
Some shareholders have
blamed the Nigerian Stock Exchange (NSE) for the bearish trend in the equities market, which led to drop in the market indices by 11.52 per cent last week.
The shareholders told newsmen in Lagos that the exchange’s dependence on foreign investors was the major cause of the bearish trend in the market.
National President, Independent Shareholders Association of Nigeria (ISAN), Mr Bayo Adeleke, said that the bears were having a free reign in the market due to the dominance of foreign investors.
Adeleke said the exchange was disconnected from retail shareholders and depended solely on foreign investors.
“The NSE doesn’t have a blueprint to develop local capacity for long term capital formation. The preference is to hand over Nigerian economy to foreign investors,” Adeleke said.
He said that the market had lost over N2 trillion in capitalisation in the last one month.
Adeleke said that shareholders were concerned about the free fall of equities in the last couple of weeks, noting that some stocks lost more than 30 per cent of their value.
President, Progressive Shareholders Association of Nigeria (PSAN), Mr Boniface Okezie, said that local investor’s confidence in the market had been dashed due to government’s policies.
Okezie said that foreign investors were given more attention in the market against the domestic investors.
Alhaji Gbadebo Olatokunbo, founding member, Nigeria Shareholders Solidarity Association, attributed the development to the exit of foreign investors.
Olatokunbo said that capital market regulators should protect and develop the interest and confidence of local investors in the market and not foreigners’.
He said that foreign investors concentrated solely on capital appreciation, noting that capital market was not a casino but for long-term investment purposes.
Olatokunbo said that investors should be encouraged by the regulators to pay less emphasis on capital appreciation.
He, however, urged local investors to seize the opportunity to increase their stake in the market.
The Managing Director, APT Securities and Funds Ltd., Malam Garba Kurfi, said the operators were engaging local investors to increase their participation in the market.
Kurfi said that pension fund administrators should see the development as an opportunity to increase their position in the market.
“The market offers higher potential in terms of dividend yield when compared with interest offered by banks,’’ he said.
Kurfi said that the market had never lost 11 per cent in a week in the last five years.
He attributed the development in the market to developments in the foreign exchange market and unfriendly policies of the Central Bank of Nigeria (CBN).
Kurfi said the trend would not persist because most stocks were trading below their fair value.
Our correspondent reports that the NSE All-Share Index last week lost 4333.93 basis points or 11.54 per cent to close at 33,216.31 compared with 37,550.24 achieved in the preceding week.
Also, the market capitalisation depreciated by N1.44 trillion or 11.54 per cent to close at N11.002 trillion against N12.437 trillion posted in the previous week due to huge loss.
Lafarge Africa topped the losers’ table, shedding 30.14 per cent or N33.15 to close at N76.84 per share.
It was also reported that 73 equities posted price depreciation during the review period, while one equity appreciated in price.
Dangote Sugar Refinery came second with a loss of 29 per cent or N2.03 to close at N4.97, while Ashaka Cement lost 28.62 per cent or N8.97 to close at N22.37 per share.
On the other hand, Betaglass was the only company that recorded gain during the review period, appreciating by five per cent or N1.05 to close at N22.05 per share.
Also, a turnover of 3.78 billion shares worth N26.74 billion was traded on by investors last week in 22,771 deals.
This was against 2.09 billion shares valued N20.23 billion exchanged in 21,802 deals in the previous week.
The Financial Services led the week’s activity chart with 3.33 billion shares
Worth N17.10 billion transacted in 13,676 deals.
The Conglomerates Industry followed with a turnover of 181.56 million shares worth N772.64 million achieved in 1,286 deals.
The third place was occupied by the Services Industry with 90.01 million shares worth N259.19 million in 659 deals.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
-
Opinion3 days ago
Ozoro Festival: Tradition or Tyranny?
-
News3 days agoRSG Reiterates Commitment To Youth Dev
-
Politics8 hours agoAPC Resumes Electronic Membership Registration Nationwide
-
Rivers7 hours agoCourt Rules Out Interim Administration In Jumbo House, Bonny
-
Oil & Energy3 days agoTranscorp Energy, Renewvia Partner On Renewable Energy Gap
-
Politics3 days ago
RIVERS WOMEN RALLY SUPPORT, CONTINUOUS PRAYERS FOR TINUBU
-
Politics3 days ago
AKPABIO, DIRI, OBOREVWORI, OTHERS VOW TO REELECT TINUBU …AS GIADOM RETAINS APC ZONAL CHAIR
-
Business3 days agoNSCDC Discloses Illegal Dump Site In Ikwerre Community