By Dipo Olowookere

The federal government is looking to borrow about N300 billion from investors through the issuance of a fresh Sukuk, with an annual rental income of 19.75 per cent.

The Islamic debt instrument will have a tenor of seven years and will mature in May 2032, according to the Debt Management Office (DMO), which is in charge of the sale.

Proceeds from the exercise will be used mainly to finance road projects across the country to meet the ethical and faith considerations of some segments of the investing public.

The interest will be paid every six months and is tax-free, providing a good route for wealth accumulation and investment compounding.

Speaking on Monday during an investor meeting in Abuja, the Director General of the DMO, Ms Patience Oniha, emphasised that the recent credit rating upgrade of Nigeria by Fitch Ratings reflects the progress in economic and debt management reforms.

“Being upgraded by Fitch means we are doing something right. Growth and development is a journey—it doesn’t happen all at once.

“But with the right fiscal and monetary policies in place, we are making tangible progress,” she told investors present at the gathering, stressing that the upgrade directly affects investment decisions, business performance, and market pricing.

She used the occasion to announce the repayment of the N100 billion Sukuk sold in 2017 by the federal government.

“All those who subscribed to the Sukuk in 2017 have now received full repayment of their investments, in addition to the interest they were paid upfront,” Ms Oniha declared.

Business Post reports that the 2027 Sukuk was used to fund road projects across the six geo-political zones of Nigeria, including the Lagos/Abeokuta Expressway, which has yet to be completed.

For the new N300 billion Sukuk, the minimum investment amount is N10,000. It is fully backed by the full faith of the Nigerian government and can be purchased through a stockbroker.

Subscription for the debt instrument commenced on Monday, May 12, 2025, and will end on Tuesday, May 20, 2025.

By Dipo Olowookere

The first trading session of the new week on the floor of the Nigerian Exchange (NGX) Limited ended on a negative note, with a 0.43 per cent loss, driven by sustained profit-taking.

It was observed that the consumer goods and the banking sectors contributed to the downfall of the nation’s stock exchange after they closed lower by 0.54 per cent and 0.24 per cent, respectively.

Business Post reports that the energy space grew by 0.36 per cent, the insurance counter expanded by 0.29 per cent, and the industrial goods index appreciated by 0.12 per cent, while the commodity industry closed flat.

When trading activities at Customs Street ended for the day, the All-Share Index (ASI) decreased by 471.93 points to 108,261.47 points from 108,733.40 points and the market capitalisation shrank by N296 billion to N68.043 trillion from N68.339 trillion.

Despite the decline suffered by the bourse yesterday, investor sentiment was bullish, with a positive market breadth index after closing with 39 price gainers and 27 price losers.

Multiverse, Smart Products, and Meyer topped the advancers’ group after chalking u 10.00 per cent each to settle at N11.00, 55 Kobo, and N8.80 apiece, Beta Glass improved by 9.99 per cent to N176.70, and Haldane McCall rose by 9.88 per cent to N4.67.

Conversely, eTranzact shed 10.00 per cent to close at N5.40, John Holt lost 9.48 per cent to trade at N5.25, Union Dicon depreciated by 9.47 per cent to N7.65, C&I Leasing crashed by 8.31 per cent to N3.86, and Linkage Assurance stumbled by 8.06 per cent to N1.14.

On the activity chart, Tantalizers dominated with 49.2 million shares worth N113.2 million, VFD Group traded 48.9 million equities valued at N782.3 million, Access Holdings transacted 29.4 million stocks for N629.4 million, Zenith Bank sold 24.3 million equities valued at N1.2 billion, and AIICO Insurance exchanged 19.1 million shares worth N31.0 million.

At the close of transactions, a total of 409.9 million stocks valued at N10.6 billion exchanged hands in 16,441 deals compared with the 459.2 million stocks worth N11.2 billion traded in 15,723 deals last Friday, indicating a rise in the number of deals by 4.57 per cent, and a slump in the trading volume and value by 10.74 per cent and 5.36 per cent, respectively.

By Adedapo Adesanya

The oil market appreciated by more than 1 per cent to settle at a two-week high on Monday, after the US and China agreed to temporarily slash tariffs, raising hopes of an end to the trade war between the world’s two biggest economies.

The price of Brent crude went up by $1.05 or 1.6 per cent to $64.96 per barrel and the US West Texas Intermediate (WTI) crude gained 93 cents or 1.5 per cent to settle at $61.95 per barrel.

The US and China, the world’s largest and second-largest economies, respectively, agreed to slash tariffs on each other as they seek to end their trade war.

Speaking after talks with Chinese officials in Geneva, US treasury secretary Scott Bessent told reporters the two sides had reached a deal for a 90-day pause on measures.

This meant the US is reducing its 145 per cent tariff to 30 per cent on Chinese goods while China agreed to reduce its 125 per cent retaliatory tariffs to 10 per cent on US goods.

In recent weeks, investors worried the US-China trade war could depress economic growth and oil demand. Also, the Organization of the Petroleum Exporting Countries (OPEC) decided to boost oil output by more than previously expected.

Crude prices went higher on hopes the world’s two biggest oil consumers can end a trade war that has stoked fears of recession.

In Saudi Arabia, the biggest producer in OPEC, oil giant Aramco said it expects oil demand to remain resilient this year and sees further upside if the US and China resolve their trade dispute.

In Iraq, OPEC’s second largest producer, crude exports were on track to decline to around 3.2 million barrels per day  in May and June, which would be a significant reduction from previous months.

Halt in production as Norwegian energy firm Equinor said it temporarily halted output from the Johan Castberg oilfield in the Arctic Barents Sea to make repairs also offered support.

Ongoing talks between the US and Iran over the c0untry’s nuclear program could pressure crude prices, since Iran is OPEC’s third largest producer and any nuclear deal could reduce sanctions on Iran’s exports.

Russian crude supply could also increase on global markets if U.S.-brokered talks result in peace between Russia and Ukraine.

Ukrainian President Volodymyr Zelenskiy said he was ready to meet Russia’s Vladimir Putin in Turkey on Thursday after US President Donald Trump told him publicly to immediately accept proposal of direct talks.

In India, Prime Minister Narendra Modi warned Pakistan that it would target “terrorist hideouts” across the border again if there were new attacks on India. This could have effects as India is the world’s third biggest consumer of oil.