Economy
OPEC Fund Okays $233m for Global Economy
By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries (OPEC) Fund for International Development has approved $233 million in new funding to support economic recovery, new infrastructure funding, and boost food security.
The agreement was approved at the 179th session of its Governing Board in Vienna and will benefit public sector projects promoting sustainable development around the world starting with four countries – Kosovo, Pakistan, Uzbekistan, and Zimbabwe.
In Kosovo, a $40 million loan was approved by OPEC Fund for the Public Finances and Economic Growth Programme to support the government’s priorities set out in its National Development Strategy 2030 aimed at strengthening partnerships, transitioning to a greener economy and improving socio-economic indicators.
The programme, developed with the World Bank Group, will improve fiscal transparency, promote private sector development by streamlining the country’s regulatory framework, and enable environmental reforms in the energy and waste management sectors.
In Pakistan, $72 million was granted in loan for the Mohmand Dam Multipurpose Project will finance the construction of a hydropower dam and the provision of equipment. The dam will have a 1.6 million square meter reservoir and diversion tunnels that will feed into new and existing irrigation canals.
Once completed, the Mohmand Dam will increase the country’s installed renewables capacity by 800 MW and provide sustainable potable water to two million residents in Peshawar city.
The project will also enhance food security through higher crop yields on almost 15,000 hectares of farmland while improving the region’s resilience to floods.
For Uzbekistan, it got a $100 million loan for the Accelerating Uzbekistan’s Transition Program will support the country’s transition to a market economy by improving resource allocation and enabling private sector investment.
The programme includes enhancing the role of the private sector, improving the management of state-owned enterprises, enhancing fiscal transparency and accountability, and increasing economic and social inclusion, particularly for women and people with disabilities.
In Africa, Zimbabwe was handed a $15 million loan for the Smallholder Agriculture Cluster Project aims to increase household incomes, and improve food security and nutrition of more than 390,000 people in five provinces of the country through the value chain development and provision of infrastructure.
The OPEC Fund’s loan will finance the construction of small-scale, climate-resilient irrigation schemes, the repair of 90 kilometres of feeder roads and the installation of water supply and sanitation facilities.
The Governing Board also approved three grants totalling $6 million for joint OPEC Fund technical cooperation facilities with three co-financing partners – the Asian Development Bank ($3 million), the Development Bank of Latin America ($1 million) and the European Bank for Reconstruction and Development ($2 million).
The facilities will primarily be used to finance project preparation related activities, such as feasibility studies, in order to help ensure improved project readiness, and build a strong pipeline of bankable sovereign and non-sovereign operations. Potential sectors will include agriculture, energy, transportation, water & sanitation, and manufacturing and services.
The OPEC Fund was established by the member countries of OPEC in 1976 with a distinct purpose which includes driving development, strengthening communities and empowering people.
To date, the OPEC Fund has committed more than $22 billion to development projects in over 125 countries with an estimated total project cost of $187 billion. It is rated AA+/Outlook Stable by Fitch and AA/Positive Outlook by S&P in 2021.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
By Adedapo Adesanya
Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.
Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.
This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.
Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.
Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.
At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.
InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Dipo Olowookere
The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.
This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.
UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.
On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.
Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.
Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.
A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.
This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.
For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.
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