Economy
Akeredolu-Ale Says ISB Will Improve Nigeria’s FX Earnings
By Aduragbemi Omiyale
The Managing Director of the Lagos Commodities and Futures Exchange (LCFE), Mr Akin Akeredolu-Ale, has described the Investments and Securities Bill (ISB) passed by the House of Representatives last year as a game changer, pointing out that it would help Nigeria improve its foreign exchange (forex) earnings.
Nigeria’s FX earnings from crude oil sales have dwindled in recent times due to low production caused by theft, putting pressure on the Naira in the currency market.
But the LCFE chief believes the new bill would change the narrative, as it would enable the commodities trading ecosystem to thrive, thereby diversifying the nation’s economy.
He stated that Nigeria is a commodities country as a better part of the gross domestic product (GDP) by way of production comes from the commodities ecosystem and urged the Senate to ensure swift concurrence on the Bill.
“We need that concurrence by the Senate as quickly as possible. I am very happy that the NASS has taken it upon themselves, as well as the SEC, to push this bill. That bill is a game changer for the commodities ecosystem and also a game changer for Nigeria as a commodities country.
“For now, a lot of commodities being traded are still in the informal sector, the bill would create structure, and all the leakages from taxation and revenue will be taken care of by this bill.
“The major thing about the commodities ecosystem is the fact that we are looking inwards in Nigeria now.
“A lot of the impact of the policies that the Central Bank of Nigeria (CBN) had done last year by way of supporting the agriculture space is paying off now in the maize, wheat and rice space, among others.
“For us at the LFCE, we have also looked at the part of commodities that has to do with solid minerals, which is the gold space.
“In Nigeria, we have over 58 different solid minerals that are sought for all over the world, and we have not touched platinum or lithium, which is the major component for batteries and electric cars.
“These are the kinds of commodities that, by the time the bill is passed, we would be able to have a proper structure and attract foreign investors.
“What do these foreign investors look out for? The foreign investors look at regulatory framework, legal framework and a proper enabling environment to want to participate in the market,” he commented.
Mr Akeredolu-Ale disclosed that in a bid to deepen the commodities trading ecosystem in Nigeria further, the Securities and Exchange Commission (SEC) had approved 13 products for trading on the LCFE.
He stated that the exchange has the capacity to trade electronic receipts of oil and gas, agriculture, solid minerals, derivatives and currencies, adding that the exchange has also put in place the necessary infrastructure to trade in derivatives as hedging instruments for investors.
“On July 28, 2022, we launched the Gold Coin. The good thing about the Gold coin is that the gold that was used in its preparation was sourced from Nigeria, and a lot of it came from Ilesha. It is being traded, and people have realised that this is a very good hedging instrument; this goes to show the capacity of what we can do in Nigeria if this bill is passed,” he remarked.
“The goal of LCFE is to play a pivotal role in growing the nation’s GDP into double digits. In Africa, the commodities ecosystem is the largest employer of labour. It provides a platform to deploy resources into the fungible assets that have been de-risked. We bring transparency through the operations of commodities exchange through our structures and two-way quote,” he added.
The LCFE chief, therefore, restated the compelling need for the federal government to unlock the potentials of the Nigerian commodity ecosystem through the concurrence of the ISB by the Senate, stating that, at the minimum, it will enhance the competitiveness of commodities exchanges in Nigeria.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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