Nigeria faces ‘fiscal time bomb’, says World Bank
With no end in sight to the double whammy of soaring petrol subsidy and plunging crude oil production, the World Bank has warned that a fiscal time bomb could explode in Nigeria. The Federal Government, which had initially budgeted to spend N443 billion on petrol subsidy.
Fuel market crisis deepens as subsidy swells
The crisis plaguing Nigeria’s downstream petroleum sector has shown no sign of abating as rising crude oil prices have sent the country’s bill for petrol subsidy rocketing, piling more pressure on ailing government finances.
Black market booms as petrol scarcity persists
As the scarcity of petrol bites harder across the country, the black market is booming in several cities across Africa’s biggest oil producer. The development arose after marketers decried the cost of lifting products from depots, saying it was no longer sustainable to.
Buhari says Nigerians better off today than 2015
Nigeria’s President Muhammadu Buhari has boasted in an interview with Bloomberg that his administration leaves Africa’s largest economy in a better place than it was when he was first elected in 2015.
Nigeria stock market rises further by 0.56% as Presco, FBNH, others gain
The stock market of Africa’s largest economy on Wednesday witnessed another session of bargain hunting which pushed its higher by 0.56percent or N153billion at the close of trading. Presco led the league of gainers on Wednesday after its share price increased by N16.20 or 9.71percent, from N166.80 to N183. Invest.
2015 vs 2022: Five indicators that prove Buhari wrong on economy
President Muhammadu Buhari recently said in an interview with Bloomberg that Nigeria is better off now than when he assumed office in 2015. However, economic indicators and the reality on ground point to the contrary. First, it was during his time Nigeria experienced two recessions in a spate of five years, 2016.
Higher input costs claim 88.7% of livestock feed revenue in Q1
Livestock Feeds Plc, a subsidiary of United Africa Company of Nigeria (UACN), recorded a decline in profit by 89.8 percent to N18.1 million in the first quarter (Q1) of 2022, from N176.5 million in the same period last year. Data sourced from the Nigerian Exchange Group (NGX) shows that the animal feed manufact.
Five sectors see big declines in VAT
Data from the National Bureau of Statistics (NBS) show that value-added tax (VAT) generated in the first quarter of this year was N588.59 billion, a growth of 18.58 percent year-on-year from N496.39 billion in Q1 2021. VAT grew by 4.41 percent quarter-on-quarter from N563.72 billion in the fourth quarter of last…
Natural Gas in the Limelight as Power Demand Soars – OIR 210622
With fears of an impending market collapse easing somewhat at the start of this week, the market started talking about the umpteenth reopening of China again. This in turn continues to fuel expectations of robust summer demand, and whilst fears of an economic recession in late 2022. Source Tom Kool of Oilprice Read More
Fuel Scarcity Worsens, Black Market Booms at N300/litre
Fuel scarcity worsened in Lagos, the Federal Capital Territory and other parts of the country on Tuesday, resulting in motorists spending hours at filling stations. Source Punch Read More
Removal of Fuel Subsidy will Free Economy from Bondage, Says NEITI
The Nigeria Extractive Industries and Transparency Initiative (NEITI) says the removal of fuel subsidies will free the country’s economy from bondage. Source TheCable Read More
Grains Maintain Upward Price Movements – AFEX Commodities Weekly Report 170622
Sorghum and maize closed the trading week, gaining 25.27% and 0.08% w-o-w on the Exchange. A similar trend was witnessed in the open market for these commodities as prices rose marginally by 2.97% and 2.34% during the same period. Source AFEX Read More
Fastest Rise in Global Interest Rates for 30 Years
Unrelenting inflation pressures have prompted the fastest rise in global interest rates since the early 1990s, as central banks move policy rates towards restrictive levels from extreme lows at the start of the year. Source Fitch Ratings Read More
CBN Guarantees N5.95bn Loan for 31,666 Small-scale Farmers
The Central Bank of Nigeria (CBN) has said a total of 31,666 loans valued at N5.92 billion were guaranteed under the Agricultural Credit Guarantee Scheme Fund (ACGSF). Source THISDAYLIVE Read More
Despite N4tr Subsidy, Empty Depots Trigger New Charges, Petrol Scarcity
Barely one week after President Muhammadu Buhari approved an additional N10 for transporters of Premium Motor Spirit (PMS) across the country, petroleum marketers have decried the prolonged inability to load from NNPC depots, leaving them to depend on private depots that equally impose additional charges. Source The Guardian Nigeria Read More
Minister visits Tin Can Port, Restates FG’s plans to Reconstruct Quay
The Minister of State for Transportation, Gbemisola Saraki, has restated the federal government plans through the Nigerian Ports Authority, NPA, for the total reconstruction of Quay walls of the TinCan Island Port Complex that have become weak due to age. Source Vanguard Read More
5G to Surpass 1bn Subscriptions in 2022 – Report
5G subscriptions will pass the one billion milestone by the end of 2022. The above forecast was contained in the latest edition of the Ericsson (NASDAQ: ERIC) Mobility Report. Source SUN News Read More
Nigerian Healthtracka Raises $1.5 million to Expand Medical Diagnostics
Healthtracka, a Nigerian startup that offers convenient at-home lab tests, has raised $1.5 million in pre-seed funding, according to a statement shared with TechCabal today. Source TechCabal Read More
Noor Takaful Distributes N109.84m Surplus to Over 200 Participants for FY2020
As part of its commitment to creating value for its participants and deepening the Nigerian insurance industry, Noor Takaful Insurance Limited paid a N109.84m surplus for the financial year 2020. Source Bukola Akinyele-Yisau Read More
OANDO Releases FY 2019, Q1, Q2 Q3 and FY 2020 Results; Declares N132.57bn Loss in FY 2020
Oando Plc released its Q4 2020 unaudited results for the period ended December 31st, 2020 along with Q1, Q2, Q3 2020 and FY 2019 result
• Revenue declined by 15% from N576.57bn to N489.99bn.
• Loss before tax stood at N133.43bn
• Loss after tax stood at N132.57bn
• Share Price Currently Stands at N5.7k
Airtel Africa Plc Announces Redemption of Outstanding Senior Notes as Bharti Airtel Launches Cash Tender Offer to Redeem up to $300m
Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announces that after market close (UK time) on 21 June 2022 its subsidiary, Bharti Airtel International (Netherlands) B.V., (‘BAIN’) launched a cash tender offer to redeem up to $300m of its $1 billion of 5.35% Guaranteed Senior Notes due 2024 (‘Notes’).
There is an early tender deadline of 5 July 2022 for Noteholders wishing to tender their Notes for preferential early tender consideration, otherwise the tender offer will expire on 19 July 2022, unless amended or extended by BAIN at its sole discretion.
All Notes accepted for purchase will be cancelled ahead of their maturity in May 2024. BAIN reserves the right at its sole discretion to amend or waive any of the terms of the tender offer.
A further announcement will be made following completion of the tender offer.
This early redemption will be made out of Group cash reserves and aligns with the continuation of our pursuit of a reduction of external foreign currency debt at Group level.
Investors Gain N153.89bn as NGXASI Inches Up by +0.57%; Overnight Rate Expands by 0.13% to Close at 14.13%; BDC Rate Depreciates to N611
1. EQUITIES MARKET
1.1 NGX – Listed Equities
Nigerian Equities Market maintains uptrend as key market indicator firs up further.
The NGX All-Share index inched up by +0.57% to close at 51,377.21 basis points as against +0.66% gain recorded at the end of the previous trading session. In Naira terms, the NGX Market CAP records N153.89bn gain
YTD, the NGXASI Stands at +20.28%
The total volume traded advanced by +37.37% to close at 229.37m, valued at N3.19bn and traded in 4,536 deals. OANDO was the most traded stock by volume with 34.46m units traded while MTNN was the most traded stock by value which is put at N565.62m.
Sectoral performance was broadly positive as ten (10) NGX sector index closed northward, six (6) closed southward while two (2) closed flat. The NGX Premium Board Index inched up by +1.38% while the NGX Banking Index dipped by -0.61% to top all sector indices otherwise.
Gote index inched up by 1.77% to close at 143.22 basis points while Toni index also closed red with -0.43% loss recorded to close at 113.16 basis points.
At the close of trading, market recorded 18 gainers to 16 losers and 65 unchanged. ELLAHLAKES topped the list of gainers NNFM topped the list of losers. Thus, market breadth closed positive as the Market Breadth Index (MBI) is put at 0.03x.
Volume and Value Contribution
OANDO led the volume chart with 15.03% contribution and closely followed by FCMB and UBA.
MTNN led the value chart with 17.69% contribution and closely followed by GTCO and ZENITHBANK
NGX Corporate News
Airtel Africa Plc announces that after market close (UK time) on 21 June 2022 its subsidiary, Bharti Airtel International (Netherlands) B.V., (‘BAIN’) launched a cash tender offer to redeem up to $300m of its $1 billion of 5.35% Guaranteed Senior Notes due 2024 (‘Notes’). There is an early tender deadline of 5 July 2022 for Noteholders wishing to tender their Notes for preferential early tender consideration, otherwise the tender offer will expire on 19 July 2022, unless amended or extended by BAIN at its sole discretion.
1.2 NASD OTC Exchange – Unlisted Equities
The NASD market index dipped by 0.24% to close at 766.89 basis points as against 0.57% gain recorded previously.
The total volume traded advanced by +76.78% to close at 589,000 units valued at N11.49m and traded in 14 deals.
At the close of trading, NASD OTC market recorded 2 gainer(s) to 1 loser(s)
Volume and Value Contribution
SDNASDPLC led the volume chart with 50.54% contribution
SDNASDPLC led the value chart with 38.98% contribution
1.3 Global Indices
On the global scene, the India NIFTY Index leads the top five gainers with 1.88% gain while the South Korea Index tops the top five losers with -2.74% loss as of 4pm Nigerian Time
1.4 African Indices
Similarly on the African scene, the Nigeria All Share Index tops the top five gainers with 0.56% gain while the South Africa All Share Index tops the top five losers with -1.53% loss as of 4pm Nigerian Time
2. BONDS AND FIXED INCOME MARKETS
2.1 Debt Market Size
The FMDQ Debt Market Size was not available as at the time of finalizing this report.
2.2 Overnight and Open Repo (OPR)
The overnight lending rate advanced by 0.13% to close at 14.13% while the Open Repo (OPR) rate also advanced by 0.17% to close at 14.00%
3. COMMODITIES MARKET
3.1 AFEX Indices
The ACI advanced by 0.48% to close at 492.12 basis points as against previous figure of 489.77 while the AEI closed flat at 191.58 basis points as against previous figure of 191.58 basis points.
3.2 AFEX Commodity Prices
Sesame grew by 146.95% to top the gainers’ chart while Paddy Rice declined by 43.19% to top the losers’ chart.
3.3 Global Commodity Prices
Gold recorded +0.40% gain while Silver declined by -0.69% as of 12:59 NY time
In the energy market, Brent declined by 0.13% while WTI also declined by 2.76% as of 12:03PM Central Daylight Time (CDT)
Source: Oilprice.com, Goldprice.org
4. CURRENCY/ FX MARKET
The naira depreciated by 0.05% at the I&E FX Window to close at N420.50/USD while the NAFEX rate also depreciated by 0.10% to close at N419.25.
Source: FMDQ, BDC