By Adedapo Adesanya

The value of the Naira further appreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, January 13 by N1.80 or 0.13 per cent to N1,419.66/$1 from Monday’s N1,421.46/$1.

This was boosted by an inject of $50 million into the official forex market by the Central Bank of Nigeria (CBN) in an effort to defend the local currency.

At the same spot market, the Nigerian currency improved its rate against the Pound Sterling during the session by N1.86 to close at N1,913.98/£1 versus the previous day’s N1,915.84/£1 and gained N5.09 on the Euro to settle at N1,656.59/€1, in contrast to the N1,661.68/€1 it was transacted a day earlier.

At the parallel market and the GTBank FX counter, the Naira maintained stability against the DOllar yesterday at N1,490/$1 and N1,431/$1, respectively.

Market analysts have noted that proper CBN support, stronger external inflows from foreign portfolio investors (FPIs), improving current account dynamics, and more disciplined FX management will give the Naira stronger footing in the near term, with threats coming from externalities.

Meanwhile, the cryptocurrency market was elevated on Tuesday as US inflation eased and political uncertainty around the Federal Reserve increased demand for non-sovereign assets.

Ease in US inflation data reinforced expectations that the Federal Reserve will continue cutting rates this year. Lower inflation eased pressure on bond yields and improved liquidity conditions, a setup that has historically favored crypto and other risk assets.

Also, reports that the US Justice Department had served grand jury subpoenas on the Federal Reserve earlier this week unsettled markets and weakened the Dollar, boosting the appeal of assets viewed as insulated from central bank risk.

Cardano (ADA) surged by 7.5 per cent to $0.4206, Ethereum (ETH) appreciated by 6.2 per cent to $3,321.77, Dogecoin (DOGE) grew by 5.8 per cent to $0.1472, Ripple (XRP) rose by 3.9 per cent to $2.14, Binance Coin (BNB) expanded by 3.1 per cent to $936.96, Litecoin (LTC) jumped by 3.1 per cent to $78.58, Bitcoin (BTC) increased by 2.9 per cent to $94,662.42, and Solana (SOL) soared by 1.6 per cent to $144.03, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece. 

By Dipo Olowookere

The bulls have refused to leave the Nigerian Exchange (NGX) Limited as they further lifted the market by 1.59 per cent on Tuesday on the back of continued bargain-hunting.

The bourse recorded a significant rise yesterday as a result of the gains posted by some large-cap equities, including MTN Nigeria and others.

The sterling performance was across the key sectors of Customs Street, except the insurance counter, which went down by 0.06 per cent due to mild profit-taking.

However, the banking segment appreciated by 1.33 per cent, the consumer goods index soared by 0.74 per cent, the energy index grew by 0.39 per cent, the industrial goods space gained 0.10 per cent, and the commodity landscape improved by 0.01 per cent.

As a result, the All-Share Index (ASI) moved up by 2,592.63 points to 165,837.32 points from 163,244.69 points and the market capitalisation increased by N1.661 trillion to N106.182 trillion from N104.521 trillion.

Caverton, PZ Cussons, Deap Capital, eTranzact, and MTN Nigeria all gained 10.00 per cent during the session to settle at N7.70, N58.30, N3.63, N18.15, and N605.00, respectively.

However, Universal Insurance lost 6.25 per cent to close at N1.20, Prestige Assurance declined by 5.81 per cent to N1.62, Regency Alliance slumped by 5.17 per cent to N1.10, Academy Press depreciated by 5.06 per cent to N7.50, and Royal Exchange dropped 3.98 per cent to sell for N1.93.

A total of 55 stocks ended on the advancers’ log and 13 stocks finished on the laggards’ end, indicating a positive market breadth index and bullish investor sentiment.

The activity level was mixed, with the trading value up by 75.00 per cent to N33.6 billion from N19.2 billion.

But the trading volume was slightly down by 8.33 per cent to 1.1 billion shares from the 1.2 billion shares recorded a day earlier, as the number of deals decreased by 17.09 per cent to 49,216 deals from 59,359 deals.

For another trading day, Sovereign Trust Insurance led the activity chart with the sale 343.5 million units shares worth N1.1 billion, Access Holdings traded 86.2 million equities valued at N2.0 billion, eTranzact transacted 61.1 million stocks worth N1.1 billion, Linkage Assurance exchanged 49.9 million shares valued at N88.0 million, and Chams pulled a turnover of 35.4 million equities for N139.2 million.

By Aduragbemi Omiyale

The presidential candidate of the Labour Party in the 2023 general elections, Mr Peter Obi, has likened Nigeria’s new tax system to extortion because it fails to clearly state how it intends to deliver “tangible benefits to citizens.”

In a post on X, formerly Twitter on Tuesday, the former Anambra State Governor, therefore, called for the suspension of the implementation of the tax laws, most especially after a renowned global accounting firm, KPMG, highlighted some errors in the laws.

Last week, KPMG Nigeria in a note on its website pinpointed some issues in the new laws, warning that they could discourage investments in the country.

However, the government reacted via the chairman on the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, saying the agency misunderstood the laws.

This week, officials of KPMG had a meeting with the chairman of the National Revenue Service (NRS), Mr Zacch Adedeji, on the issue.

For Mr Obi, “The fact that it took private meetings between the National Revenue Service and KPMG for these serious issues to be acknowledged” makes it more alarming.

He posited that, “It is now undeniable that the tax laws have been fundamentally altered, and even a firm as esteemed as KPMG has pinpointed 31 critical problem areas, from drafting errors to glaring policy contradictions and administrative gaps. This revelation should prompt every responsible government to take immediate action.”

“If experts require closed-door discussions to navigate the complexities of our tax laws, what hope does the average Nigerian have of comprehending the obligations being imposed on them?

“Taxation transcends mere fiscal policy; it represents a social contract between the government and its citizens. You cannot enforce a social contract that isn’t understood or trusted.

“Globally, tax policies are justified by delivering tangible benefits to citizens: improved healthcare, better educational systems, job opportunities, infrastructure development, and social safety nets. This is what the social contract signifies.

“In Nigeria, the narrative is all about how much more the government seeks to extract, rather than what it is prepared to offer in return. A tax system devoid of clear public benefits isn’t reform; it is, quite frankly, extortion,” he stated.

Speaking further, he said, “Typically, months, if not years, are dedicated to consulting with businesses, workers, and civil society before tax drafts are presented for public discussion, with the ramifications clearly explained. People must be informed not only about their financial contributions but also about the benefits that will ensue. This is how legitimacy is cultivated. Yet, in Nigeria, we have seen no such public consultations or discussions regarding the final tax laws, leaving ordinary citizens completely in the dark about both the regulations and the benefits of the taxes they’re expected to pay.

“We have hastily pursued collection without securing a consensus and imposed enforcement without providing adequate explanations. Even after the removal of subsidies, Nigerians remain in limbo, waiting for tangible benefits or relief. Instead, they are grappling with skyrocketing food prices, exorbitant transport costs, dwindling purchasing power, and escalating poverty levels.

“Before we have even begun to address these issues, we are being thrust into an expansive new tax regime, riddled with inconsistencies and producing 31 alarming red flags from a leading global accounting firm. This is not the hallmark of responsible governance.

“Without trust, taxation feels like punishment. Without clarity, it breeds confusion. Without evident public value, it amounts to robbery.

“Nigeria cannot afford to place further burdens on its already struggling citizens. What we need is a government that listens, communicates effectively, and prioritises building national consensus. This is the only viable path to genuine reform, unity, growth, and shared prosperity.”