Connect with us


Foreign investors exit, political uncertainty mar equities market by N897bn in 8 months



By Olabode Jegede

Following foreign investors exit and pressure building up towards the 2019 general elections, the investors investment in the equities market segment of the Nigerian Stock Exchange (NSE) depreciated by N897 billion in eight months.

The equities market early in the year started on a positive note over the Central Bank of Nigeria (CBN) foreign exchange intervention and federal government liquidity injection.

The lower yield in Treasury Bills had forced investors to invest in the capital market as yield was attractive.

According to our correspondent findings, the market capitalisation of all listed equities on the NSE opened trading on January 1 at N13.619 trillion, dropped by N897 billion or 6.59 per cent to close trading on August 31 at N12.722 trillion in the year under review.

Consequently, the All-Share Index (ASI) declined by 3,394.74 basis points, representing a drop of 8.88 per cent to close at 34,848.45 basis points from 38,243.19 basis points it opened for trading in January 2018.

Following the drop in capital market major indicators, the NSE indices also go with decline performance.

Other indices also finished lower with NSE ASeM recording the highest decline followed by NSE Consumer Goods Index and NSE Industrial Goods Index.

The breakdown revealed that, NSE ASeM dropped by 25.51 per cent to 809.92 basis points in August from 1,087.32 basis points the market opened this year.

NSE Consumer Goods Index dropped by 15.96 per cent to 820.35 basis points from 976.1 basis points while NSE Industrial Goods Index. Closed August at 1,667.55 basis points,        15.59 per cent below 1,975.59 basis points the market closed in 2017.

Profit-taking in Guaranty Trust Bank Plc, among others dragged the NSE Banking Index down by 11.98 basis points to 418.5 basis points from 475.44 basis points while NSE Oil/Gas Index      closed August at 298.24basis points, 9.81 per cent below 330.69 basis points the market opened this year.

Amidst the political uncertainty in the 2019 general election, Market statistics obtained by our correspondent revealed that total foreign transaction significantly declined by 64.68 per cent from N102.41 billion in June to N36.17 billion reported in July 2018.

Similarly, Total transactions dropped by 22.21 per cent from N187.78 billion recorded in June 2018 to N146.07 billion in July 2018.

Foreign outflows reduced from N54.45 billion to N16.34 billion, representing 69.99 per cent whilst foreign inflows also reduced by 58.65 per cent from N47.96 billion to N19.83 billion over the same period.

Speaking with our correspondent, Chief Executive Officer, Enterprise Stockbrokers Limited, Mr. Rotimi Fakayejo, said the market lately has been inactive, stressing that buildup towards the 2019 election is affecting the market fundamentals.

According to him, “Well, it is not far fetch from what it has been before. First, the liquidity in the market is low.

“Secondly, the foreign investors have always played the dominance role in the market. To an extent, they have backed out for now because of the negative reactions to frontier and emerging market all over and also for the fact that Federal Reserve in US is at the increasing rate.

“The European countries too are also thinking in that direction at least after a very long time. So, it is making funds to dry up on the frontier and the emerging market. At the same time, the political situation in Nigeria is also contributing so much because a lot of uncertainty is parading in the market right now.

“Until maybe when we get to October, and it is more likely that there would not be a formidable opposition against the incumbent president. Then, I believe things will begin to calm down thereafter but if there is a formidable opposition, we may likely see a decline trend in the equities market.

“So, we may not see any major decline in the market for now except maybe one full week loss and then one day gain. The losses may not be too significant and the gain may not be very marginal.

“We might just be seeing the All Share Index dropping marginally but if peradventure the third quarter results are filing in by October and the results are not impressive, then I think the market could continue to drop.”

Commenting also on the equities market performance in eight months, the Managing Director, Highcap Securities, Mr. David Adnori said, the equities market reacted on mechanism that related to socio-economy activities in the country.

He maintained that weak corporate earnings and CBN actions against listed banks also compounded on equities market performance lately in August.

According to him,, “as we move towards the election, it is not likely that the market will be vibrant and political risk is still there. The market must also come to the level of resistance wherein it will not decline. The macroeconomic indicators are okay apart from the political issues on ground.”


COP28: We are taking action to slash methane emission — World Bank



The World Bank President, Ajay Banga, says the Bank is taking action to decisively slash methane emissions to help increase agricultural yields and improve health outcomes.

Banga said this in his address at a High-Level Segment Summit on Methane at COP28 in Dubai, UAE, a copy of which was obtained on Sunday.

He said Methane was 80 times more powerful than carbon dioxide in warming the planet, making it a major driver of climate change.

“Yet, it is often subjugated to carbon dioxide, receiving less than two per cent of global climate financing. We do this at our peril.

“The good news is not all solutions require a herculean effort or a trillion-dollar price tag. Sometimes, the most impactful changes stem from our willingness to embrace the solutions that are well within our grasp.

“The frontier of methane reduction is one such area where the World Bank believes there are answers at our fingertips.

“That is why the World Bank is taking action, scaling proven and urgently needed strategies that can decisively bend the methane emission curve.”

The president said over the next 18 months, as part of a blueprint for methane reduction, the bank would help inaugurate15 national programmes that aim to slash methane emissions.

Banga said these programmes were built upon successful pilots that delivered transformative results for rice production, livestock operations, and waste management.

He said in Vietnam, rice farmers were embracing new techniques that slash methane emissions, while increasing incomes.

Banga said animal nutrition and breed management in India cut methane emissions and dramatically increased milk production.

“Simply separating organic waste in landfills in Brazil cuts nearly all the methane emissions by diverting it to provide electricity to 200,000 households.

“By deploying proven reduction methods from our blueprint, methane emissions from rice production can be reduced by up to 40 per cent, from livestock by 30 per cent, and waste by 80 per cent. The potential is huge.

“Taken together, this methane reduction blueprint could slash up to 10 million tons of methane.”

He said while these efforts would make considerable progress toward the methane goal, it would not be enough if simple and effective solutions for the emissions from the power sector were not embraced.

“That is why the World Bank has been working with Germany, Norway, the United States, and the UAE alongside the private sector to expand our long-standing efforts to significantly cut methane emissions across the whole energy value chain.”

Banga said in the fight against climate change, too often genuine impact was impeded by intractable challenges, considerable expenses, political challenges, and underdeveloped technologies.

“Methane is one rare, clear area where we know there are low-cost remedies, effective and simple solutions that can be replicated and scaled.

“But hope is not a strategy. We must act, and in doing so we can reduce emissions, enhance agricultural yields, and improve health outcomes all in one go.

“This is one shot that we should not miss,” he said.

Continue Reading


AfDB, GGBI partner to strengthen Africa’s green bond market



The African Development Bank (AfDB) Group, has signed a declaration with the coalition of development finance institutions to promote green bond markets in Africa.

AfDB’s Group Vice President and Chief Financial Officer, Ms Hassatou N’Sele, said this in a statement issued on the bank’s website.

The News Agency of Nigeria (NAN) reports that Africa’s engagement in the green bond market currently represents less than one per cent of the more than 2.2 trillion dollar community green bond issued in 2022.

N’Sele said the institutions in the Global Green Bond Initiative (GGBI) comprised the European Investment Bank,  European Bank for Reconstruction and Development, and Italy’s Cassa Depositi e Prestiti.

Others are the Spanish Agency for International Development Cooperation, Green Climate Fund and Germany’s KfW development bank, while PROPARCO of the AFD Group act as consortium of European development finance institutions.

The AfDB’s chief financial officer signed the declaration with representatives of the coalitions’ institutions on the sidelines of the 2023 UN Climate Change Conference (COP28) in Dubai, United Arab Emirates.

N’Sele said the engagement was to tap from the Global Green Bond Initiative technical assistance programme announced by European Commission President Ursula von der Leyen in June 2023.

”The Initiative will help private capital flow from institutional investors into climate and environmental projects in EU partner countries, increasing their access to capital.

”Providing technical assistance to green bond issuers in emerging markets and developing economies (EMDEs), and crowding in private investors through a dedicated de-risked fund.

”This will act as an anchor investor in green bonds issued in EMDEs.

“The anticipated impact can be up to 15-20 billion euro in green investments,” she said.

N’Sele said the partners supported the origination of green bonds, development and identification of pipelines of green projects, and the development of credible and coherent green bond frameworks.

“This joint declaration among us to collaborate on technical assistance on green bonds in Africa is our commitment to work together and it is significant and impactful.

”There cannot be impactful development in Africa without vibrant local capital markets,” the AfDB official said.

N’Sele highlighted the AfDB’s engagements in the green bond market, including issuing over 10 billion dollar worth of green and social bbondsin 2022 to support sustainable progress across Africa.

“Let’s help Africa fully leverage the power of green bonds, and we can contribute together towards a sustainable future for Africans,” she said.

Mr Stefano Signore of the European Commission’s partnerships directorate, described the partnership with the AfDB as an important milestone in efforts to mobilise green bonds in emerging developing economies.

Also, representative of the Spanish Agency for International Development Cooperation (AECID) expressed hope that the partnership would contribute to the intensification of climate and environmentally relevant projects.

”We hope to also contribute to pipelines that can set off the mobilisation of the global green bond initiative.” 

Continue Reading


NIS opens passport office in Ikorodu



The Comptroller- General of Nigeria Immigration Service(CGI), Mrs Caroline Adepoju ,on Friday assured Nigerians that they would get their passports within three weeks of submitting their applications.

Adepoju gave the assurance while  inaugurating  a new passport office in Igbogbo community in  Ikorodu, Lagos State .

Adepoju said  passports  would now be processed and  issued speedily  provided applicants submit all the required  details in their applications.

She advised the public to ensure that they renew their passports six months  before its expiration to avoid problems while applying for visa to some countries.

Adepoju thanked the people of Igbogbo for their support and for  providing all that was needed to start  operation in the area.

“I thank the traditional ruler  and the people of Igbogbo for their support and for  ensuring the realisation of this project.

“This is my first assignment after my confirmation as the substantive  Controller General of Nigeria Immigration Service.

“I want to advise the public to ensure they renew their passport  six months before expiration to avoid being denied visa by  some countries,” she said.

Speaking, Gov. Babajide Sanwoolu  said the establishment of the passport office in Igbogbo would improve service delivery i to Nigerians and save the  people of Igbogbo and environs the stress of  traveling far to obtain tbeir passports..

Sanwoolu, represented by Mr Ibrahim Layode,  Commussioner for Home Affairs,  said the role of Immigration in any country could  not be over- emphasised.

He said that the establishment of the  passport front office in Igbogbo was a testament to Federal Government’s commitment to providing world -class immigration  services in line with global standard.

Also speaking, the council Chairman of Igbogbo Baiyeku Local Counvil Development Area(LCDA) Mr Olusesan Daini, urged the CGI to consider expanding operations  at the new   passport front office .

Daini said the council would synergise with NIS to ensure the edifice was  maintained.

“We will also improve our  security architecture to ensure the office is secure.”he said.

He said that the new passport office was a welcome development as residents  would no longer have to travel far  to obtain or renew their passports.

“The establishment of this passport front office in Igbogbo will improve commercial activities.

“The council will also improve its  security architecture to provide adequate security  in the area,” he said.

Adeboruwa of Igbogbo, Oba Orimadegun Kasali ,who spoke on behalf of  all the  traditional rulers in Ikorodu Division , said he was very happy that the passport front office was established in  his domain.

He added that it would go a long way in improving commercial activities in the area.

Adeboruwa commended  all those who facilitated the establishment of  the passport office in  the community.

“I cannot say  how happy I am today, infact ,this office will  put Igbogbo community in world map.

” I appreciate everybody that has contributed in one way or the other to make this  a success,especially  the family that donated the land .

“I am glad that Igbogbo  passport office has come to  stay,” he said.

Continue Reading