Economy
Equities Investors Rake over N2.2tr in Q1 2017
By The Nation
Equities’ investors at the stock market are smiling to the bank as they netted more than N2.2 trillion gains in the first half of the year, The Nation is reporting.
Most quoted equities closed the first half at the weekend at their four-year best performance with double-digit returns ahead of inflation. Most investors saw their portfolios rising by almost a quarter, while others garnered more than double the average benchmark.
The six-month average year-to-date return at the weekend stood at 23.23 percent, almost seven percentage points ahead of the current inflation rate of 16.25 percent. In monetary terms, the year-to-date gain stood at N2.2 trillion, underlining the fact that the appreciation in market value was driven by share price increases rather than new listings.
Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) closed the first half at N11.452 trillion as against 2017’s opening value of N9.247 trillion, representing a net capital gain of N2.205 trillion or 23.85 percent.
The All Share Index (ASI)-the benchmark index that doubles as sovereign equities index for Nigeria, crossed seven levels to close at 33,117.48 points in the review period, compared with its year’s opening index of 26,874.62 points, representing an increase of 23.23 percent.
The rebound in the first half, driven largely by gains recorded in the second quarter, represents a major recovery for hard-pressed investors, who had lost N3.98 trillion in the past three years.
The stock market had been on a losing streak since 2014. Investors lost N1.75 trillion in 2014 and followed this with another loss of N1.63 trillion in 2015. Against the expectation that political transition and a new government will quicken a rebound, equities closed 2016 with a net capital loss of N604 billion.
Aggregate market value of all quoted equities on the NSE closed 2016 at N9.247 trillion, as against N13.226 trillion recorded at the start of trading in 2014, representing a net capital loss of N3.98 trillion.
Managing Director, Cowry Asset Management Limited, Johnson Chukwu, said the recovery was a response to positive changes in the polity, noting that the stock market performance usually aligns with macroeconomic outlook.
He said the market had remained depressed in the first quarter under poor liquidity, amidst uncertain and unrealistic foreign exchange management.But the market turned around in the second quarter, he pointed out, with the changes in the foreign exchange management and improvement in macroeconomic coordination.
Chukwu said the market recovery was boosted by the introduction of the Investors’ and Exporters’ foreign exchange window, as well as the narrowing of the exchange rates between official and parallel rates due to policy stimulation by the Central Bank of Nigeria (CBN).
He said the improvement in foreign exchange market and overall macroeconomic performance encouraged foreign portfolio investors to redirect funds to Nigerian equities, thereby supporting the domestic investors’ base.
He added that the ongoing revision of the investment guidelines for pension funds administrators (PFAs), which includes mandatory investment off a certain percentage of pension funds in equities, also encouraged many PFAs to take early positions in equities ahead of the release of the final guidelines.
GTI Capital Chief Operating Officer, Kehinde Hassan, said the market was primed for recovery by the steep declines in previous years and substantial undervaluation of several equities, pointing out that the steady corporate earnings in the previous year and first quarter of this year boosted investors’enthusiasm as companies majorly have shown resilience in the face of the tough operating environment.
He said with global projections indicating a positive outlook for the economy and the prospects that corporate earnings may remain steady, investors viewed the undervaluation of quoted equities as an incentive.
Banking stocks have been major drivers of the rally after first quarter earnings showed a largely positive performance. The Deposit Money Banks (DMBs), reported pre-tax profit of about N234 billion on gross earnings of N1.07 trillion in the first quarter of this year.
Key extracts of the interim report and accounts of banks for the three-month period ended March 31, 2017, indicated that total assets rose to N35.3 trillion by the end of the review period, driven largely by profit accretion as all tracked banks posted a profit during the period. Gross earnings totaled N1.072 trillion, driven mostly by growth in core banking operations. Profit before tax stood at N233.66 billion while profit after tax stood at N196.7 billion.
About 80 percent of tracked banks recorded higher pre and post tax profits compared with the corresponding period of the previous year while nearly all banks reported growths in top-line earnings. Average gross earnings for the industry in the first quarter stood at N71.47 billion while average profit before tax stood at N15.57 billion. After taxes, average net profit stood at N13.11 billion on the back of average total assets of N2.35 trillion.
The Nation had tracked the results of all quoted banks on the Nigerian Stock Exchange (NSE), with the exception of the troubled Skye Bank, which has not submitted both the audited report for 2016 and first quarter result for 2017. The report of Skye Bank will not lead to any material change in the overall figures for the sector. There are altogether 16 banks quoted on the NSE including Guaranty Trust Bank, Zenith Bank, Access Bank, United Bank for Africa, FBN Holdings, FCMB Group, Ecobank Transnational Incorporated, Stanbic IBTC Holdings, Unity Bank, Sterling Bank, Fidelity Bank, Union Bank of Nigeria, Wema Bank, Diamond Bank, Jaiz Bank and Skye Bank.
Banks’ chiefs said they were optimistic of continuing growths in the remaining period of the year, citing expected improvement in the macroeconomic environment.
“We remain positive that economic activities will improve as the economy is beginning to show signs of positive outlook due to an increase in the supply of foreign exchange to both retail and corporate users and decreasing headline inflation,” Stanbic IBTC Holdings Chief Executive, Mr. Yinka Sanni, said.
Sterling Bank Managing Director, Mr. Yemi Adeola, said the first quarter of this year’s performance was in line with expectations, noting that the bank would continue to explore innovative ways to improve revenue, while simultaneously enhancing the overall efficiency of its business operations.
“We remain committed to maximising shareholders’ value and delivering a superior and sustainable return, guided by our founding values of hard work, discipline and integrity,” Managing Director, Guaranty Trust Bank, Mr Segun Agbaje, said.
Source: The Nation
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
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.
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