Economy
Real Estate Delivers 15.6% RoI for Risevest Investors
By Adedapo Adesanya
Real estate portfolio delivered the best return for investors on US stocks and investment platform, Risevest, in 2022, with a 15.6 per cent return on investment (RoI).
In its Investment Wrapped: A Look At Our Investment Journey in 2022 newsletter, seen by Business Post, the company said that the year’s investment was actively affected by inflation and the measures to tackle it.
The company, despite the tough year, paid out $23.2 million to users while 109,800 plans were created while its members in its investment club grew to 15,100.
“All the monetary easing that central banks worldwide did in response to COVID led to the worst inflation numbers in over 40 years. US inflation peaked at 9.1%, and the aggressive increase in interest rates by the US Federal Reserve and other major central banks led to the global increase in the cost of capital,” it explained.
It added that although inflation in the world’s largest economy dropped as rate hikes hit 5 per cent, the increased rates and higher cost of capital led to a massive drop in the valuations of stocks and other assets, leading to some of the worst stock markets drop in recent history.
This was coupled with the energy and wheat crisis caused by Russia’s invasion of Ukraine, as well as the meltdown in the crypto industry.
The company revealed that real estate markets, including Myrtle Beach South Carolina homes for sale, were strong for most of the year until the final quarter, delivering double-digit returns for the Rise portfolio.
Also, energy commodities were up in the review year, and energy stocks like ExxonMobil defied the downturn and gained 70 per cent, adding that, “all of that was overshadowed by what has been the 7th worst performance of the stock markets ever in history.”
After the real estate market, fixed income delivered a 10 per cent return for the year, providing much-needed returns to users and balancing out the losses from stocks that fell 22 per cent in the year.
Speaking on moves it made, the company, in the newsletter, revealed that it introduced Airbnb to its portfolio based on its seasonal advantage and consumer-driven demand.
“For real estate, we introduced Airbnb rentals to our portfolio. While they are much more hands-on than our traditional rentals, their returns, even after expenses, are much higher, making it well worth the experience.
“However, we will continue to invest in Airbnb rentals as a smaller component of our real estate strategy due to their seasonality and the risk of changes in consumer behaviour,” parts of the article read.
For stocks, the company noted that it exited companies without either significant growth or cash-flow generation capabilities and, moving forward, will prioritise defensive companies with strong demand profiles and solid balance sheets.
“We held onto some tech companies like Facebook (Meta) and Google, who still present a lot of value despite deep sentiment against them, and we added new positions in both short and long-term bets that will pay off when stocks rebound.”
For the fixed-income portfolio, the overall fixed-income market saw relatively stable returns, with the Bloomberg Barclays U.S. Aggregate Bond Index returning 4.26 per cent and our portfolio delivering 10 per cent for the year.
“Our portfolio has a good representation of (third-party provided) consumer credit and mortgage-backed fixed-income assets and an increasingly smaller position in emerging market sovereign debt. Despite a tough market position, credit and debt profiles remain relatively stable.
“Also, with higher interest rates, it’s becoming increasingly possible to move up the risk ladder into even safer fixed-income assets without sacrificing returns, which is great news,” it said.
Presenting its outlook for the year, it said that looking at a possible recession, weakened demand, and a lean global supply chain, it expects a tougher first half and advised more people to “keep their budgets lean, emergency funds funded, and their investment plans disciplined.”
Product-wise, Risevest said “multi-year asset class plans are on the way, as well as varied account types. Multi-country support and a slew of new features, including dark mode, potential localised offerings, and more personalization, should also be expected to support our users’ financial journeys and unlock more wealth-creating opportunities for all Risers.”
By Adedapo Adesanya
The Nigeria Customs Service (NCS) Oil and Gas Free Trade Zone Command in Rivers State says it has achieved a record-breaking revenue collection of N53.98 billion between January and November 2024, exceeding its annual target by 2.3 per cent and nearly doubling the N26.80 billion generated in 2023.
This was disclosed by the Customs Area Controller, Oil and Gas Free Trade Zone, Onne, Comptroller Seriki Usman, during a press briefing at the command’s headquarters, where he attributed the success to strategic collaboration with stakeholders, operational efficiency, and a focus on regulatory compliance.
He said, “A notable achievement of the command was its record-breaking revenue collection of N53.98 billion. This figure represents a 2.3 per cent increase over our annual target for 2024 and a remarkable 98.6% rise compared to the N26.80 billion collected in 2023.
“Our record-breaking revenue underscores the importance of effective trade facilitation and regulatory compliance. This achievement reflects the commitment of our officers, the collaboration with stakeholders, and the critical role of the Oil and Gas Free Trade Zone in driving Nigeria’s economic growth,” he said.
He explained that the Command successfully facilitated the export of key products such as refined sugar, fertiliser, liquefied natural gas, LNG, and crude oil from major facilities, including Bundu Sugar Refinery, Notore Chemical PLC, and Bonny Island.
“The seamless management of imports and exports within the free trade zone has enhanced operations for licensed enterprises,” he noted.
Speaking on the significance of these achievements, Comptroller Usman emphasized the need to maintain the momentum.
“This accomplishment is not just about numbers but about fostering trade growth, innovation, and creating a conducive environment for businesses to thrive within the free trade zone.”
On regulatory compliance, Comptroller Usman reassured Nigerians of the Command’s commitment to ensuring adherence to international trade regulations while fostering economic progress.
“Our focus remains on enhancing service delivery, promoting ease of doing business, and driving revenue generation that supports the nation’s development goals,” he said.
The command emphasized that collaboration with stakeholders, particularly the Oil and Gas Free Trade Zone Authority, has been pivotal in achieving these milestones, and called for continued partnership to sustain trade growth and improve service delivery.
As the year comes to a close, the command has reiterated its resolve to solidify its role as a critical revenue driver and trade facilitator in Nigeria’s oil and gas sector.
Mr Usman said the performance reflects the command’s vital role in strengthening Nigeria’s non-oil revenue base and its determination to remain a key player in the country’s economic transformation efforts.
“We remain committed to sustaining our achievements, fostering trust among stakeholders, and contributing significantly to the nation’s economic growth,” Comptroller Usman concluded.
By Modupe Gbadeyanka
The federal government, the 36 states of the federation and the 774 local government areas have received N1.727 trillion from the Federal Accounts Allocation Committee (FAAC) for December 2024.
The funds were disbursed to the three tiers of government from the revenue generated by the nation in November 2024.
At the December meeting of FAAC held in Abuja, it was stated that the amount distributed comprised distributable statutory revenue of N455.354 billion, distributable Value Added Tax (VAT) revenue of N585.700 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.046 billion and Exchange Difference revenue of N671.392 billion.
According to a statement signed on Friday by the Director of Press and Public Relations for FAAC, Mr Bawa Mokwa, the money generated last month was about N3.143 trillion, with N103.307 billion used for cost of collection and N1.312 trillion for transfers, interventions and refunds.
It was disclosed that gross statutory revenue of N1.827 trillion was received compared with the N1.336 trillion recorded a month earlier.
The statement said gross revenue of N628.972 billion was available from VAT versus N668.291 billion in the preceding month.
The organisation stated that last month, oil and gas royalty and CET levies recorded significant increases, while excise duty, VAT, import duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and EMTL decreased considerably.
As for the sharing, FAAC disclosed that from the N1.727 trillion, the central government got N581.856 billion, the states received N549.792 billion, the councils took N402.553 billion, while the benefiting states got N193.291 billion as 13 per cent derivation revenue.
From the N585.700 billion VAT earnings, the national government got N87.855 billion, the states received N292.850 billion and the local councils were given N204.995 billion.
Also, from the N455.354 billion distributable statutory revenue, the federal government was given N175.690 billion, the states got N89.113 billion, the local governments had N68.702 billion, and the benefiting states received N121.849 billion as 13 per cent derivation revenue.
In addition, from the N15.046 billion EMTL revenue, FAAC shared N2.257 billion to the federal government, disbursed N7.523 billion to the states and transferred N5.266 billion to the local councils.
Further, from the N671.392 billion Exchange Difference earnings, it gave central government N316.054 billion, the states N160.306 billion, the local government areas N123.590 billion, and the oil-producing states N71.442 billion as 13 per cent derivation revenue.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.
On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.
Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.
Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.
At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.
In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.
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