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Latest data available on the website of the Central Bank of Nigeria (CBN) shows that the nation’s external reserves closed at $42.354bn on February 27, 2018, representing a $3.587bn or 9.25% growth from its $38.766bn at the end of December 2017. Between January and February 27, according to the data, the reserves increased by $1.728bn or 4.25% from $40.625bn on January 30, 2018. On a Year-on-Year basis, Nigeria’s reserves level has grown by $12.748bn or 43.06% from $29.605bn on February 27, 2017. The rise is despite the weekly intervention by the CBN in the Investors & Exporters window of the inter-bank market’s foreign exchange segment which a total of $15.9bn was injected by the apex bank over a nine-month period as part of efforts to ensure stability. Speaking at a Forum organised by the Finance Correspondents Association of Nigeria (FICAN) on the theme: ‘Nigeria’s Economy and Financial Market Outlook: 2017 Review and 2018 Outlook’ in January, Ayodeji Ebo, Managing D...

Market Update for February 27 Nigeria’s stock market on Tuesday continued its volatility, only that this time the five-day seeming bull transition was halted, after highly capitalized stocks closed south, caving in under pressure from profit takers, despite the rebound in oil and gas stocks due to expected high payout from the sector. It is not known whether the slide had anything to do with investors and traders being unimpressed with the stronger-than-expected Q4 and 2017 full year GDP data released by the National Bureau of Statistics (NBS), showing that Nigeria’s economic recovery remained on course as the 2017 full-year GDP came at 0.83%, compared to the 1.58% year-on-year contraction recorded in 2016. Nonetheless, the data is a signal that the nation’s economic recovery is seriously on track, largely driven by improvements in all major sectors. It is also important to note such other factors and drivers of the economic recovery as the rising oil price in the internation...

The Central Bank of Nigeria (CBN), again on Tuesday, Tuesday, February 27, 2018, made interventions in the inter-bank sector of the Foreign Exchange market with the injection of $210m into three segments of the market. A breakdown of the intervention indicates that the CBN offered the sum of $100m to dealers in the wholesale window, while those in the Small and Medium Enterprises (SMEs) window received an allocation of $55m. The invisibles segment, comprising Business/Personal Travel Allowances, school tuition, medicals, etc., was also allocated the sum of $55m. The CBN spokesman, Isaac Okorafor, in disclosing these, said the Bank would continue to make the interventions, in spite of the fact that the country’s reserve has enjoyed accretion in the past weeks, bringing the figure to about $42bn. Okorafor was upbeat that the forex management strategy was yielding the desired result; hence, he noted that the CBN would continue to sustain its activities in the market in order to ...

Caption: Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele receiving the 2017 Sun Public Service Award from Gombe State Governor, Alhaji Ibrahim Dankwambo, while Chief Uzor Orji Kalu, former Abia State Governor in Lagos on Saturday.http://investdata.com.ng/2018/02/photo-news-emefiele-receives-2017-sun-public-service-award/#more

Citing the lack of preparedness by some member countries and clear disparities in their macro-economic conditions, Nigeria’s President Muhammadu Buhari, wants the Economic Community of West African States (ECOWAS) to slow down the sub-region’s planned currency integration earlier scheduled for 2020. He called for a review of the fast-track approach to monetary integration and the harmonization of plans by ECOWAS members with that of the African Union Programme of monetary convergence that had recommended a convergence deadline of 2034 for the establishment of Regional Central Banks in all sub-regions of the continent. Buhari also drew attention to the issue of credibility of the union if anchored on watered down criteria and other major issues of concern that members must examine in order to make progress. Speaking at the 5th meeting of the Presidential Task Force on ECOWAS Currency Programme in Accra, Ghana, on Tuesday, Buhari, who was represented by Godwin Emefiele, governo...

Apparently worried by the mounting pile of non-performing loans in the books of the nation’s banks, even as the system is still struggling under the weight of the 2009/2011 debacle, the Central Bank of Nigeria (CBN) has set certain yardsticks for banks planning to pay dividend from their profit after tax. According to the letter to all banks, referenced: REF: BSD/DIR/GEN/LAB/11/002, titled “Re: Internal Capital Generation and Dividend Payout Ratio,” the banks are to facilitate sufficient and adequate capital build up in line with their risk appetite. The CBN, in the letter signed by Ahmad Abdullahi, director, Banking Supervision Department, barred with immediate effect, deposit money banks and discount houses from paying dividend from their reserves. Banks and Discount Houses that do not meet the minimum capital adequacy ratio from paying dividend; just as those with “a Composite Risk Rating (CRR) of “High” or a Non-Performing-Loan (NPL) ratio of above 10% shall not be allowed...

Caption: Head Awareness Unit, Micro Pensions Department National Pensions Commission (Pencom), Mrs Obiageli Okosi; Head, Research Department, Pencom, Lasbery Lot; Representative of the Acting Director General Securities and Exchange Commission (SEC), Mr. Abdul Bello; and Data Analyst at the Central Bank of Nigeria, Dr. Gazali Mohammed; during the Financial Inclusion Sensitisation Programme held in Abuja at the weekend. Ahead of the 2020 target to reduce the number of Nigerians who are still outside its formal financial system, regulators of the nation’s financial services industry at the weekend, again went on a sensitization campaign to selected Abuja neighbourhoods. Speaking at the event in Karshi, Abuja, Acting Director General of the Securities and Exchange Commission (SEC), Dr. Abdul Zubair said the regulators aim to achieve increased level of financial inclusion of Nigerians by the year 2020. The latest move, he continued, followed the huge success recorded in previou...

The Central Bank of Nigeria (CBN) again at the weekend intervened in the Retail Secondary Market Intervention Sales (SMIS) with $325.64m, to meet requests in the agricultural, airlines, petroleum products and raw materials and machinery sectors. According to Acting Director in charge of Corporate Communications at the CBN, Isaac Okorafor, the continued intervention were in line with the assurances made by the Governor, Godwin Emefiele, to sustain market liquidity in order to boost production and trade. According to Okorafor, the feedback from the wholesale and retail segments of the Nigerian Forex markets showed that customers were satisfied with their level of access to foreign exchange. He said the degree of optimism displayed by all players underscored the fact that everyone was happy with the level of transparency in the market. Speaking further, Okorafor assured that, with the recession now over and foreign reserves now standing at $42 billion, the CBN had enough in its ...

Market Update for Week Ended February 9 and Outlook for Feb 12-16 Photo Caption: From left, Pai Gamde, Chief Human Resources Officer, The Nigerian Stock Exchange (NSE); Oscar N. Onyema, OON, Chief Executive Officer, NSE; Asisat Oshoala, MON, African Female Footballer of the Year; Tinuade Awe, Executive Director, Regulation Division, NSE; Mojisola Adeola, Head, Council Secretariat, NSE during Closing Gong ceremony held in her honour at The Exchange on Friday, February 9, 2018. Trading on the Nigerian Stock Exchange moved south sharply to end last week lower, marking the second consecutive week of a down-market in 2018 after the year’s early rally that pushed many stocks to their 52-week highs. The five-day back-to-back losses were attributed to profit taking and sell-offs occasioned by panic in developed markets that were extended to other markets of the world. During the ensuing panic sell-offs, institutional and foreign investors that positioned earlier watched keenly. It i...

The nation’s equity market in the last three weeks has recorded a mixed performance after rallying for four consecutive months to a five-year high at 45,092.83 basis in January 19, 2018 due to impressive Q3 numbers released in October. The numbers were considered good enough to reverse the two previous months of pullback, helped also be the influx of positive economic data, increasing foreign inflows and supporting activities in the last quarter of 2017 all of which boosted market and economic recovery that overflowed into 2018. So strong was the positive momentum that it wiped away what has come to be known as the January effect (when the market always closed red) for the first time in 15 years. The NSE recorded all of 15% growth in January. It is therefore not unexpected, just as in any stock market of across the globe that profit taking would happen, leading naturally to panic selling that became the order of the day. This pulled down the market in the last trading week of J...

After almost 10 years of pioneering the Africa Finance Corporation (AFC) dream of enhancing economic development of nations on the continent, Andrew Alli, its President and Chief Executive Officer, is billed to bow out this year. In his final new year message on Friday, he said that over the years, the corporation, established by the then Prof. Chukwuma Soludo Central Bank of Nigeria (CBN) in 2007, with current a balance sheet size of about US$3.5bn, “has evolved from a start-up to an institution that is a powerful force on the continent; it currently has a membership of 17 countries, an A3 Credit Rating by Moody’s (the second highest rated African lending institution), and has grown from about US$1bn in total assets to about US$4bn, while investing in various capacities in the landmark African projects. These include: “the US$240m MainOne Cable Company which provides innovative telecommunications services, network solutions and wholesale internet services for people and busine...

The Nigerian Stock Exchange (NSE) is consolidating its superlative gains of 2017 as revealed by closing figures of its benchmark indicators at the end of the first four trading sessions of the week between January 2 and 5, 2018 In the New Year, we expect recovery, growth and expansion of the Nigerian economy to continue through this year and influence the nation’s stock market to new highs, as the macro environment would likely support and boost the ongoing market recovery, despite the meaningful risks associated in stocks investing. However, the increasing volatility in the market is likely to persist, but market players should target value and enhance it through a dynamic investing and trading approach, especially as 2018 is a pre-election year in Nigeria with its budget being the highest in the history of Nigeria as a nation. There are opportunities and uncertainties to navigate along the way. One of such is the possibility of increased liquidity as politicians and incumbent...

AHEAD OF ELECTION YEAR: EQUITY ANALYSTS URGE INVESTORS TO FOCUS ON VALUE STOCKS, PROTECT CAPITAL Experts and analysts in Nigeria’s equity market say despite the huge gains recorded so far as shown by the upward movement of the Nigerian Stock Exchange’s Composite All-Share index, there are still subtle opportunities between the performance of companies and the ongoing economic recovery that can be exploited in the coming weeks and months by discerning investors to guaranty juicy returns on their investments. The experts, who spoke at the INVEST 2018 traders & investors summit in Lagos, challenged investors to stay with value enhancing stocks and ensure they generate good returns, while at the same time protecting their capital. This they agreed, has become necessary, considering the opportunities presented by the 2018 Appropriation Bill submitted to the National Assembly by President Muhammadu Buhari, wherein the Federal Government is proposing to spend N8.6tr; jus...

NIGERIA’S INDEX TURNS GREEN ON REALIGNMENTS INHEAVY WEIGHT, FINANCIAL SECTOR STOCKS Nigeria’s stock market had a spectacular Tuesday and a fantastic run up from the opening point of the session to continue its volatility on the strength of positive sentiments as market and economic fundamentals improved on the strength of the recently released corporate earnings and macro-economic data, which taken together tell a fantastic story. As we mentioned in our update for Monday, funds will continue to seek opportunities for better returns without losing sight of safety, especially when calculated risk are taken in the hope of higher returns. The inflow from retail foreign exchange by the CBN has in one way or the other improved money flow in the financial market.  The market opened on Tuesday with a little pullback that continued to move front and back in the mid-morning and then charged forward by midday to attain an afternoon peak of 37,541.88 after touching intrada...