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Economy

BDC Operators Blame CBN for Increase in Prices of Food, Others

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Prices of Food

By Aduragbemi Omiyale

In the past months, the prices of food items, products and services in the country have been on the rise despite the National Bureau of Statistics (NBS) saying the inflation rate was moderating.

For most consumers, when they go to the market today, they are not sure the prices of items would remain the same tomorrow and this has been very frustrating for them.

Many have wondered how long they would have to experience this situation but it seems the Bureaux De Change (BDC) operators know the major cause of the problem and like the popular saying, when an issue is known, solving it is not far away.

Recently, the president of the Association of Bureau De Change Operators of Nigeria (ABCON), Mr Aminu Gwadabe, informed Daily Trust in an interview that the Central Bank of Nigeria (CBN) is the brain behind all these problems.

He said the decision of the apex bank to ban the sale of foreign exchange (FX) to his members in July 2021 is what is pushing the prices of goods and services in the country higher.

Mr Gwadabe said the central bank must see street forex traders as an important part of the market and the economy at large, emphasising that things were still better before the July 27, 2021, directive.

“The impacts of the CBN action include direct job losses of about 40,000 employees and over N200 billion capital to go toxic,” the ABCON leader informed the newspaper.

He stressed that the action of the apex bank paved the way for the “dominance of un-official online and Hawala activities.

“Dearth of BDCs expertise developed over the years, increased volatility and confidence crises of the naira, security concerns and increase in prices of goods and services.

“In all the BDCs remained the potent tool for CBN exchange rate stability instruments and accessibility.”

Business Post recalls that nearly two months ago, the Governor of the CBN, Mr Godwin Emefiele, while addressing newsmen after the Monetary Policy Committee (MPC) meeting in Abuja, said the bank would discontinue FX sales to BDCs over alleged round-tripping.

He said the operators were wasting the allocation to them, lamenting that the sale of $20,000 weekly to each of the over 5,500 BDC operators in the country taking a huge toll on the nation’s forex reserves. It was learned that in a year, the country was selling about $5.72 billion to the parallel side of the FX market in a bid to defend the Naira.

Since this policy commenced, the value of the local currency against the Dollar at the unregulated segment of the market has broadly nosedived. It traded on Monday at N532 to $1.

Economy

NGX Index Down 0.15% as eTranzact Ends as Worst-Performing Stock

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eTranzact

By Dipo Olowookere

The first trading day of the new week at the Nigerian Exchange (NGX) Limited ended on a negative note on Monday with a 0.15 per cent loss.

This was influenced by a decline in the appetite for Nigerian stocks by investors, as market participants chose to trade cautiously.

The profit-taking put most of the sectors under pressure, with the insurance index crumbling by 1.70 per cent at the close of transactions.

Further, the consumer goods space declined by 0.38 per cent, the banking counter shrank by 0.20 per cent, and the energy industry depreciated by 0.19 per cent, while the industrial goods and commodity sectors closed flat.

Consequently, the All-Share Index (ASI) gave up 155.96 points to settle at 105,799.17 points compared with last Friday’s 105,955.13 points, and the market capitalisation tumbled by N8 billion to close at N66.344 trillion versus N66.352 trillion.

The worst-performing stock yesterday was eTranzact after it lost 10.00 per cent to trade at N5.85, Sunu Assurances depleted by 9.92 per cent to N4.63, Prestige Assurance fell by 8.26 per cent to N1.00, Sovereign Trust Insurance crashed by 7.77 per cent to 95 Kobo, and Red Star Express stumbled by 7.76 per cent to N5.35.

The best-performing stock for the session was Academy Press as it chalked up 9.92 per cent to sell for N2.88, Neimeth appreciated by 8.43 per cent to N2.70, Tantalizers rose by 6.83 per cent to N3.13, Dangote Sugar jumped by 4.71 per cent to N36.70, and Stanbic IBTC grew by 4.24 per cent to N61.50.

Business Post reports that there were 18 price gainers and 35 price losers on Monday, representing a negative market breadth index and weak investor sentiment.

During the trading day, investors traded 477.5 million shares valued at N7.1 billion in 13,520 deals compared with the 750.6 million shares worth N11.1 billion transacted in 10,584 deals in the preceding session, indicating a growth in the number of deals by 27.74 per cent, and a slump in the trading volume and value by 36.38 per cent and 36.04 per cent, respectively.

Jaiz Bank topped the activity chart after selling 197.4 million stocks for N606.2 million, Zenith Bank transacted 26.0 million shares for N1.2 billion, Sovereign Trust Insurance traded 19.3 million equities worth N18.5 million, Prestige Assurance exchanged 18.5 million shares valued at N19.0 million, and Fidelity Bank sold 15.9 million equities worth N270.5 million.

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Economy

Inflation in Nigeria Cools to 23.18% in February 2025

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nigerian inflation

By Modupe Gbadeyanka

In February 2025, inflation in Nigeria moderated to 23.18 per cent from the 24.48 per cent recorded in January 2025, data from the National Bureau of Statistics (NBS) on Monday revealed.

The agency disclosed in the report yesterday that on a year-on-year basis, the average prices of goods and services eased by 8.52 per cent from the 31.70 per cent achieved in February 2024.

In the Consumer Price Index (CPI) data, the NBS said last month, the headline inflation slowed due to decline in the average prices of food items like yam tuber, potatoes, soya beans, flour of maize/cornmeal, cassava, bambara beans (dried), etc compared with the prices in the first month of this year.

It stated that housing, water, electricity, gas, and other fuels accounted for 1.95 per cent of inflationary concerns, which education services contributed 1.44 per  cent, with health accounting for 1.40 per cent.

It added that clothing and footwear accounted for 1.17 per cent, information and communication contributed 0.76 per cent, and personal care, social protection, miscellaneous goods and services accounted for 0.76 per cent.

Further, furnishing, household equipment, and routine household maintenance contributed 0.69 per cent; insurance and financial services accounted for 0.11 per cent; and alcoholic beverages, tobacco, recreation, sport, and culture, sport, and culture contributed 0.07 per cent.

Also, food and non-alcoholic beverages accounted for 9.28 per cent, restaurants and accommodation services contributed 2.99 per cent; and transport accounted for 2.47 per cent.

The agency also revealed that last month, food inflation went down on a year-on-year basis by 14.41 per cent to 23.51 per cent from 37.92 per cent in the same period of last year.

On a month-on-month basis, food inflation was 1.67 per cent, with the average annual rate for the 12 months ending February 2025 over the previous 12-month average at 34.74 per cent, in contrast to 30.07 per cent in February 2024.

It stated that core inflation, which excludes the prices of volatile agricultural produces and energy, also declined by 2.12 per cent to 23.01 per cent, year-on-year in February 2025, compared to the 25.13 per cent in February 2024.

On a month-on-month basis, the core index stood at 2.52 per cent in February while the average 12-month annual inflation rate was 25.33 per cent for the 12 months ending February 2025, higher than 21.72 per cent in February 2024.

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Economy

SEC Suspends Centurion Registrars for Capital Market Infractions

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Centurion Registrars Limited

By Adedapo Adesanya

The Securities and Exchange Commission (SEC) has announced the suspension of Centurion Registrars Limited, including its directors and sponsored individuals from the capital market.

The suspension was announced by the commission in a statement titled Additional Enforcement Measures on Erring Capital Market Operators.

The SEC stated, “All clients of Centurion Registrars are advised to contact Africa Prudential Plc for guidance.”

This is not the first time Centurion Registrars has had issues with the Nigerian government as it was convicted in 2022 by a Special Offences Court in Lagos over fraud involving N206.5 million stocks after it was arraigned by the Economic and Financial Crimes Commission (EFCC).

The latest action of the SEC on the company is part of the agency’s broader efforts in 2025 to crack down on capital market operators it deems illegal to sanitise the investment environment in Nigeria.

Recall that the regulator revoked the registration of Mainland Trust Limited as a capital market operator, citing regulatory non-compliance and outstanding complaints against the company.

In a related development, the commission also said it would publish the names of Capital Market Operators who violate market regulations in its Name and Shame journal.

The SEC said the decision reflects a zero-tolerance policy for infractions in the capital market and aligns with newly revised enforcement strategies.

According to the notice, “The publication will be in addition to the sanctions and penalties for the respective infractions prescribed in the ISA 2007 and the SEC rules and regulations.”

Business Post had reported that the SEC listed mainstreaming the Nigerian capital market into the economy as its top priority in 2025.

Mr Emomotimi Agama, the Director General of SEC, said this in his New Year 2025 message to the capital market community on Monday.

He also said the commission would intensify efforts to eliminate Ponzi and pyramid schemes, thereby fostering an environment for genuine investment opportunities to thrive in 2025.

He said that protecting investors remained a cornerstone of the commission’s mission.

Mr Agama also said that the commission would prioritise key initiatives aimed at deepening market integrity, enhancing investor confidence and driving economic growth.

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