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Local Stock Market Indices Down by 0.02% on Persistent Sell Pressure



local stock market indices

By Dipo Olowookere

Investor sentiment was weak on the floor of the Nigerian Exchange (NGX) Limited on Thursday as traders struggled to regain their confidence in the bourse.

This affected the local stock market indices, which were depressed by 0.02 per cent at the close of transactions due to sustained profit-taking, especially in large and mid-cap equities.

The news of a billionaire businessman, Mr Femi Otedola, acquiring about a 5.5 per cent stake in Transcorp to become one of its largest shareholders could not lift the spirits yesterday.

The development only triggered buying pressure on Transcorp stocks, which appreciated during the session by 10.00 per cent to close at N1.54. Coronation Insurance rose by 7.69 per cent to 42 Kobo, Champion Breweries grew by 7.64 per cent to N4.93, Mutual Benefits gained 6.25 per cent to quote at 34 Kobo, and Prestige Assurance improved by 5.26 per cent to 40 Kobo.

Conversely, May and Baker declined by 10.00 per cent to N4.05, Ikeja Hotel lost 9.24 per cent to close at N1.08, Multiverse fell by 7.60 per cent to N2.31, Academy Press shed 6.67 per cent to trade at N1.26, and NPF Microfinance Bank slumped by 6.32 per cent to N1.78.

Business Post reports that when the market ended for the session, the market breadth was negative as there were 18 price gainers and 21 price losers.

The energy index remained flat during the session, as the industrial goods and the consumer goods counters expanded by 0.16 per cent and 0.05 per cent apiece, while the banking and the insurance sectors depreciated by 0.75 per cent and 0.29 per cent, respectively.

Consequently, the All-Share Index (ASI) decreased by 8.83 points to 51,944.58 points from 51,953.41 points, while the market capitalisation depleted by N4 billion to N28.296 trillion from N28.300 trillion.

A total of 302.9 million shares valued at N2.0 billion exchanged hands in 3,743 deals on Thursday, in contrast to the 255.2 million shares worth N1.8 billion traded in 3,890 deals in the midweek session, implying a decline in the number of deals by 3.78 per cent, and an increase in the trading volume and value by 18.69 per cent and 11.11 per cent apiece.

Transcorp remained the most active stock during the trading day as it sold 107.2 million, while Fidelity Bank traded 39.3 million units. UBA transacted 22.6 million equities, Zenith Bank exchanged 20.6 million stocks, and FCMB traded 12.6 million shares.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via


Subsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN




By Adedapo Adesanya

The Independent Petroleum Manufacturers Association of Nigeria (IPMAN) has advised Nigerians to begin to look into the direction of Compressed Natural Gas (CNG) as an alternative energy source to cushion the effect of subsidy removal.

The National President of IPMAN, Mr Chinedu Okorokwo, made this known in an interview with the News Agency of Nigeria (NAN) in Abuja on Wednesday, as the federal government continues its dialogue with the organised labour over the hike in the price of premium motor spirit (PMS), otherwise known as petrol.

On May 29, 2023, during his inaugural speech, President Bola Tinubu said the payment of subsidy for fuel had ended because there was no provision for it in the 2023 budget beyond June 30.

His announcement triggered the hoarding of fuel by marketers, and when the Nigerian National Petroleum Company (NNPC) Limited increased the price of the product across its retail outlets, prices of food, transportation and services went up, forcing the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to threaten a nationwide strike, which was supposed to start today but was stopped by the National Industrial Court.

At a meeting on Monday night between the government and the labour unions, it was agreed that the adoption of CNG as an alternative fuel would be the best option, and it was agreed that the CNG conversion programme earlier planned in 2021 should be revived.

CNG, which is a gas mainly composed of methane and produces less emission, is the cleanest burning fuel operating today with less vehicle maintenance and longer engine life.

In the interview with NAN, Mr Okoronkwo said bringing CNG, which was cheaper than even firewood, as an alternative energy, would create relief for the government and its citizens.

“We have also discovered that bringing an alternative that is cheaper than even firewood which is CNG, will not only create relief for the government and its citizens but it is environmentally friendly.

“The CNG is abundantly available in Nigeria than anywhere in Africa.

“In the Niger Delta region, you see billions of tonnes of gas flare being wasted daily, these are huge amounts that should be accruing to our GDP, but we are wasting it because there is no market for it.

“So, we are asking the government to create the market. How do you create the market?

“What Egypt and India did was to give soft loans to be paid back within stipulated periods; from there, you can get vehicles to use gas instead of fuel,” he said.

“There’s a franchise for the bottling of CNG so that an average woman in the kitchen can use it,’’ he added, noting that the introduction of CNG would cushion the effect occasioned by the high price of fuel currently as a litre of CNG would not cost more than N130.

He advised that repairing the local refineries as well would reduce the impact of the removal as it would eliminate the cost of importation and exportation.

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Nigeria Upgrades Tax-to-GDP Ratio to 10.86% From 6%



tax-to-GDP ratio

By Modupe Gbadeyanka

The National Bureau of Statistics (NBS) has disclosed that Nigeria’s tax to Gross Domestic Product (GDP) ratio has been upwardly reviewed to 10.86 per cent from the 6 per cent earlier reported to reflect better data sources and improved estimation using the Organisation for Economic Co-operation and Development (OECD) manual.

The OECD manual is an improvement over the System of National Accounts (SNA 2008) classification of taxes.

Although the System of National Accounts conceptual framework and its definitions of the various sectors of the economy are reflected in the OECD’s classification of taxes, the OECD classifications provide the maximum disaggregation of statistical data on what is generally regarded as taxes by tax administrations.

In a disclosure, the statistics office said the country’s total tax revenue compared with its GDP was at that level in 2021, higher than 8.40 per cent in 2020, which was impacted by the COVID-19 pandemic.

In the previous year, the ratio was 10.20 per cent, marginally lower than the 10.36 per cent recorded in 2018 but higher than the 9.02 per cent in 2017.

The NBS said the revised computation considered more comprehensive coverage of data at the federal, state, and local government levels and revenue items not previously included in the computations, particularly relevant revenue collected by other government agencies.

The review of the tax-to-GDP ratio was initiated by the Federal Inland Revenue Service, which collaborated with the Federal Ministry of Finance and the NBS for better measurement of the ratio.

The data used were sourced from the Office of the Accountant General of the Federation (OAGF), FIRS, NBS, the Nigeria Customs Service (NCS), the Joint Tax Board (JTB), and other relevant agencies of government that collect revenue.

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VFD Group to Join Nigerian Exchange After Exit From NASD



VFD Group

By Adedapo Adesanya

VFD Group Plc has announced its intention to list its shares on the Nigerian Exchange Group (NGX) after leaving the NASD Over-the-Counter Securities Exchange, where it has been trading its stocks for the past three years.

This development, according to analysts, is a strategic move that would allow the company to gain access to public equity markets, increase its visibility, and strengthen its financial position.

VFD Group Plc is a leading proprietary investment company with a proven track record of generating attractive returns for its investors through a variety of investment strategies.

The company has a diverse portfolio of investments in various sectors, including banking, technology, media, energy, and real estate. The group has been listed on the NASD OTC Securities Exchange since 2020.

Speaking on this big step, Mr Nonso Okpala, Group Managing Director of VFD Group, stated, “We are excited to take this next step in the evolution of our company.”

“Listing on a major stock exchange will give us access to a larger pool of investors, enhance our profile, and provide superior returns to our investors,” he added.

With the intention of listing on the NGX, the company will delist from the NASD and is subject to regulatory approvals and market conditions.

VFD Group noted that it would provide additional updates as the listing process progresses.

At the close of business on Tuesday, the securities of the organisation closed on the NASD OTC exchange at N244.88 per unit, the same rate they finished in the preceding trading session.

Business Post reports that the NASD was created to provide an avenue for public companies to transition smoothly into the country’s main stock exchange.

However, it has witnessed the movement of firms from the NGX to the NASD, especially due to the very strict regulatory requirements by the former.

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