Economy
CBN Forex Policy Making Nigeria Unattractive—Foreign Investor
By Dipo Olowookere
The foreign exchange (forex) policy of the Central Bank of Nigeria (CBN) has again come under criticism and this time, from a foreign investor.
Recall that recently, the CBN was hit hard by the Nigerian Economic Summit Group (NESG), saying the current FX policy of the banking sector regulator was making things difficult for the country rather than make them better. And for this, the CBN did not pity the group as it lambasted its leadership, casting aspersions on its credibility.
The NESG was not the first to slam the multiple exchange rates system of the local central bank as the International Monetary Fund (IMF) and the World Bank and others have also criticised the policy.
Even a former Governor of the CBN, Mr Charles Soludo, has advised the central bank under the leadership of Mr Godwin Emefiele, to scrap the multiple exchange rates system though the CBN has explained why it is maintaining the policy despite the criticisms.
At a virtual conference recently, a portfolio manager at Emerging Markets Investment Management Ltd, known as Duet Group/UK, Mr Erik Renander, said the apex bank’s stance on forex was making Nigeria unattractive to foreign investors.
The London-based fund manager, according to Bloomberg, invested in Nigeria in 2017 by purchasing treasury bills after the devaluation of the Naira, when rates jumped to more than 20 per cent.
However, in February 2020, he sold all his holdings of bills and equities and has vowed not to re-enter the local market until the currency situation gets better.
Twice this year, the CBN has devalued the local currency; from N306 per Dollar to N360 per Dollar and again from N360/$1 to N380/$1.
The Naira has not had it good this year because of a shortfall in the crude oil earnings as a result of coronavirus disease, which crashed prices at the global market to below $20 per barrel at a point in the year. Now, the price has been hovering around $40 per barrel.
But with the way things are going, Mr Renander believes the Nigerian currency will remain under pressure and have suggested that to attract foreign investors, local investors must take control of the market, especially the equities segment.
“You could be sitting in front of a great opportunity,” he said, noting that, “Generally, when the currency devalues, the local stock market goes up a lot.
“Maybe the Naira is going to go to N550 per Dollar, and the Nigerian stock market [All-Share Index] could go to 50,000 points; you could easily have a double.”
But for him and other offshore investors, he may not consider returning to the local market because “it’s hard for me to come into Nigeria when I just don’t have an idea when I am going to get my money out again and yields aren’t high enough to compensate for that risk.
“The forex policy of the Central Bank of Nigeria is really hurting the attractiveness of Nigeria in general, both in equity and fixed income,” Mr Renander declared.
In April 2020, Business Post reported that some foreign investors who could not take their funds back in Dollars were forced to re-invest in the local market, which caused more liquidity in the system, making rates and yields to drop to single-digit lows.
At the last treasury bills sale last week, the CBN sold the three-month bill at 1.10 per cent, while the one-year instrument was cut to 3.05 per cent from 3.34 per cent.
Business Post reports that apart from the official exchange rate window known as the interbank, where the Dollar sells for N380, there is the Investors and Exporters (I&E) segment, the Bureaux De Change (BDC) window and the black market.
By Adedapo Adesanya
Shareholders of Dangote Cement Plc have approved plans that could pave the way for the company’s secondary listing on the London Stock Exchange (LSE) while also endorsing a final dividend of N45.00 per ordinary share for the 2025 financial year.
The resolutions were passed at the company’s 17th Annual General Meeting (AGM) held on Thursday at Eko Hotels & Suites in Lagos, where shareholders also approved the audited financial statements for the year ended December 31, 2025.
The approval for an international secondary listing marks a significant step in Dangote Cement’s plans to broaden its access to global capital markets and enhance its international investor base.
In May, the company’s founder Mr Aliko Dangote said the cement subsidiary was planning a London listing to sell 10 per cent stake, sixteen years after debuting on the Nigerian Exchange (NGX) Limited. This would provide the company with the much-needed boost to compete in the United Kingdom market.
Shareholders also ratified the payment of a final dividend of N45.00 per ordinary share from the company’s retained earnings as of December 31, 2025. The dividend was paid on Thursday, July 2, 2026.
At the meeting, shareholders approved the appointment of Ms Mariya Aliko-Dangote to the company’s board of directors. In recent months, the eldest daughter of the billionaire as well as her sisters Halima and Fatima, have been strategically positioned across their father’s empire in what has been touted as succession plans.
They also re-elected four directors retiring by rotation: Mr Emmanuel Ikazoboh, an Independent Non-Executive Director; Mr Olakunle Alake, a Non-Executive Director; Ms Berlina Moroole, a Non-Executive Director; and Mr Alvaro Poncioni Merian, an Independent Non-Executive Director.
In addition, shareholders authorised the board to determine the remuneration of the company’s external auditors for the 2026 financial year.
The AGM also noted the disclosure of managers’ remuneration in compliance with the provisions of the Companies and Allied Matters Act (CAMA) 2020.
Shareholders further approved the election of Mr Robert Ade-Odiachi, Mr Sheriff Yussuf Mojirola and Mr Nicholas Nyamali as shareholders’ representatives on the Statutory Audit Committee. They will serve alongside the company’s representatives, Mr Ernest Ebi and Mr Olakunle Alake, until the next AGM.
They also approved annual remuneration of N20 million for the chairman and N15 million each for the non-executive directors for the financial year ending December 31, 2026.
By Dipo Olowookere
The activity level on the Nigerian Exchange (NGX) Limited improved last week after market participants traded 3.821 billion stocks worth N154.393 billion in 258,567 deals compared with the 2.324 billion stocks valued at N134.486 billion transacted in 249,328 deals in the preceding week.
Analysis showed that financial equities dominated with 2.330 billion units sold for N54.606 billion in 108,978 deals, accounting for 60.99 per cent and 35.37 per cent of the total trading volume and value, respectively.
Services stocks recorded a turnover of 509.473 million units worth N16.353 billion in 16,527 deals, and consumer goods shares recorded 216.344 million units valued at N8.057 billion in 25,963 deals.
Sterling Holdings, Access Holdings, and Ikeja Hotel were the busiest stocks, accounting for 1.405 billion units worth N28.370 billion in 12,898 deals, contributing 36.78 per cent and 18.37 per cent to the total trading volume and value, respectively.
The best-performing equity for the week was Airtel Africa, which gained 21.00 per cent to sell for N5,274.00. Regency Assurance grew by 20.25 per cent to 95 Kobo, UPDC expanded by 12.31 per cent to N3.65, DAAR Communications rose by 7.84 per cent to N1.65, and SUNU Assurances increased by 7.50 per cent to N3.87.
The worst-performing equity was International Energy Insurance, which fell by 18.83 per cent to N4.70, McNichols slumped by 18.60 per cent to N7.00, University Press crashed by 17.54 per cent to N4.70, RT Briscoe dipped by 13.98 per cent to N10.15, and UPDC REIT moderated by 13.00 per cent to N8.70.
Business Post reports that 22 shares appreciated during the week, the same as the previous week, and 57 equities depreciated, the same as a week earlier, while 67 stocks remained unchanged, the same as the preceding week.
The All-Share Index (ASI) and the market capitalisation closed lower by 1.21 per cent in the five-day trading week to 229,240.34 points and N147.103 trillion, respectively.
Similarly, all other indices finished lower apart from the main board, which chalked up 2.27 per cent.
By Adedapo Adesanya
The Securities and Exchange Commission (SEC) has cleared seven new fintech and digital asset firms for admission into its Accelerated Regulatory Incubation Programme (ARIP), granting them Approval-in-Principle (AIP) to operate within the programme’s regulatory sandbox as part of efforts to promote innovation while protecting investors.
The commission said the move reinforces its commitment to fostering responsible innovation that deepens Nigeria’s capital market without compromising market integrity.
The seven firms set for admission into the programme are Bitbarter Technologies Limited, Luno Fintech Nigeria Limited, GetEquity Limited, Koinkoin Global Network Limited, Wrapped CBDC Ltd, Trovotech Ltd and Blockvault Custodian Ltd.
According to the SEC, the Approval-in-Principle permits the firms to operate within the defined scope of the programme, subject to conditions stipulated by the Commission.
It clarified that the approval is not a final operating licence but confirms that each entity has satisfied the admission requirements for ARIP.
“An Approval-in-Principle confirms that an entity has satisfied the Commission’s admission requirements for the Programme. It is not a final licence and remains conditional on the entity’s continued compliance with all applicable regulatory, operational, and supervisory obligations,” the Commission stated.
The ARIP is a controlled regulatory environment established by the SEC to accelerate the onboarding of digital asset and other investment service providers, including Virtual Asset Service Providers (VASPs) and tokenised product platforms.
The programme enables the Commission to evaluate emerging business models and financial technologies under regulatory supervision before they are offered to the investing public.
According to the commission, the initiative is designed to ensure that adequate safeguards are in place to protect investors while preserving the integrity of Nigeria’s capital market.
The SEC reiterated its commitment to supporting innovation that enhances efficiency, transparency, financial inclusion and sustainable growth in the capital market through initiatives such as ARIP.
It also urged members of the public to verify the regulatory status of individuals or organisations promoting investment products or services through its official channels before committing funds.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz4 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn