By Adedapo Adesanya
The Naira depreciated to a new low against the US Dollar at the parallel market segment of the foreign exchange (FX) market on Thursday, September 2 to trade at N530/$1.
Business Post reports that at the preceding session, the local currency was traded at N528/$1, indicating that it lost N2 to the greenback yesterday as forex shortage continues to grip the market.
At the same market segment, the value of the Naira against the Pound Sterling further depreciated on Thursday by N3 as it closed at N720/£1 compared with N717/£1 it closed on Wednesday and against the Euro, the Nigerian currency lost N4 to close at N620/€1 versus N616/€1 it ended at the previous session.
A look at the country’s official exchange rate window, the interbank market, the Nigerian Naira further lost 2 kobo or 0.01 per cent to quote at N410.37/$1 in contrast to N410.35/$1 of the prior trading session.
At the Investors and Exporters (I&E) window, the domestic currency suffered a 67 kobo or 0.04 per cent loss against the American currency on Thursday, closing at N411.67/$1 compared with N411.50/$1 it sold on Wednesday.
Data showed that there was a significant decline in the turnover at the I&E segment yesterday but the FX shortage put pressure on the local currency.
Transactions worth $296.34 million were carried out during the session, 39.06 per cent or $189.97 million lower than the $486.31 million executed on Wednesday.
Meanwhile, the cryptocurrency market was predominantly bullish yesterday as six of the seven tokens tracked by Business Post on the trading platform, Quidax, pointed north.
The only price loser was Bitcoin (BTC) as it sold for N25,726,852.65 following a 1.1 per cent drop.
Tron (TRX) recorded the highest growth of 9.5 per cent to sell for N54.40, Litecoin (LTC) grew by 5.1 per cent to trade at N99,350.73, while Ethereum (ETH) recorded a 3.9 per cent appreciation to sell at N1,983,500.01.
In addition, Dash (DASH) gained 3.4 per cent to trade at N131,270.32, the US Dollar Tether (USDT) appreciated by 0.3 per cent to quote at N528.33, while Ripple (XRP) increased by 0.2 per cent to trade at N650.99.
Introduction of Capital Gains Tax Could Discourage Investors—Popoola
By Aduragbemi Omiyale
As part of efforts to raise more funds for the provision of critical infrastructure in the country, the federal government recently introduced the capital gains tax.
This was embedded in the 2021 Finance Act and it required the payment of capital gains tax on transactions worth over N100 million.
The chief executive of the Nigerian Exchange (NGX) Limited, Mr Temi Popoola, applauded this initiative of the government but warned that it could discourage investors, especially the high net-worth individuals (HNIs) and institutional investors, who carried out such heavy deals.
Mr Popoola, who spoke a few months ago at the Nigerian Economic Summit Group (NESG) Fiscal Policy Roundtable, called for a balance.
He admitted that the capital gains tax is in line with the government’s drive towards an increased tax bracket but was only worried about the adverse effect the laudable policy could have on the economy in the long run.
However, Mr Popoola commended the economic policy direction of the administration of President Muhammadu Buhari, noting that it was an indication of the government’s commitment to driving non-oil revenues into the country.
The NGX chief said the tenets of the 2021 Finance Act brought a lot more clarity on investment such as the Real Estate Investment Trust (REIT), Capital Gain Tax (CGT) and securities lending transactions.
According to him, investing in real estate investment brings a lot of potential gains and “if you look at our market today, all our assets class has helped to boost investors’ confidence.”
He stated that the Finance Act will boost the capital market and the economy, reiterating NGX’s commitment to adhering to government policy and driving growth in the capital market.
However, he further stressed that the introduction of excise taxes on non-alcoholic beverages and the education tax could also affect the economy.
According to him, these taxes could hamper the ability of companies affected by these developments to raise capital and pay dividends to investors because the policies are coming at a time the economy was undergoing a recovery.
Business Post reports that the event, which precisely took place in March 2022, was put together by NESG to access the impact of the 2021 Finance Act on the economy.
Inflation in Nigeria Jumps to 16.82% in April 2022
By Aduragbemi Omiyale
The National Bureau of Statistics (NBS) on Tuesday disclosed that inflation in Nigeria increased by 16.82 per cent in April 2022 from the 15.92 per cent recorded in March 2022.
However, on a year-on-year basis, the rate moderated by 1.3 per cent as inflation was 18.12 per cent in the corresponding month of 2021.
The NBS disclosed that the percentage change in the average composite consumer price index (CPI) for the 12 months period ending April 2022 over the average of the CPI for the previous 12 months period was 16.45 per cent, 0.1 per cent lower than the 16.54 per cent recorded in March 2022.
It also stated that in the month under review, the urban inflation rate increased to 17.35 per cent (year-on-year) in April 2022 from 18.68 per cent recorded in April 2021, while the rural inflation rate increased to 16.32 per cent in April 2022 from 17.57 per cent in April 2021.
On a month-on-month basis, the urban index rose to 1.78 per cent in April 2022, up by 0.02 from the rate recorded in March 2022 at 1.76 per cent, while the rural index also rose to 1.74 per cent in April 2022, up by 0.01 from the rate that was recorded in March 2022 at 1.73 per cent.
The corresponding 12-month year-on-year average percentage change for the urban index is 17.01 per cent in April 2022, lower than 17.10 per cent reported in March 2022, while the corresponding rural inflation rate in April 2022 is 15.91 per cent compared to 16.00 per cent recorded in March 2022.
In the report, the stats agency said in April 2022, the composite food index rose by 18.37 per cent in contrast to the 22.72 per cent achieved in April 2021, attributing the increase to a hike in the prices of bread and cereals, food products n.e.c, potatoes, yam, and other tubers, wine, fish, meat, and oils.
On a month-on-month basis, the food sub-index increased to 2.00 per cent in April 2022, up by 0.01 per cent points from 1.99 per cent recorded in March 2022, the report added.
It was further stated that the average annual rate of change of the food sub-index for the 12-month period ending April 2022 over the previous 12-month average is 18.88 per cent, 0.34 per cent points from the average annual rate of change recorded in March 2022 at 19.21 per cent.
OTC Securities Exchange Closes 0.02% Lower
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed marginally lower by 0.02 per cent on Monday on the back of a price depreciation in Central Securities Clearing Systems (CSCS) Plc.
The stock, which was the only price loser yesterday, went down by 5 kobo or 0.29 per cent to sell at N16.95 per unit compared to the previous session’s N17.00 per unit.
At the close of transactions, it reduced the market capitalisation of the OTC securities exchange by N250 million to N1.05 trillion from N1.06 trillion and sliced the NASD Unlisted Securities Index (NSI) by 0.19 points to 807.56 points from 807.75 points.
Business Post observed that the level of activity during the session was low as the volume of securities recorded a decline of 99.8 per cent to 61,131 units from 7.5 million units, the value of trades also depreciated by 99.8 per cent to N4.6 million from N2.2 billion, while the number of deals remained unchanged at 11 deals.
AG Mortgage Bank Plc closed the session as the most traded stock by volume (year-to-date) with 2.3 billion units worth N1.2 billion, CSCS Plc was in second place with 661.6 million units worth N13.9 billion, while Food Concepts Plc held the third position with 94 million units worth N77.8 million.
But the most active stock by value (year-to-date) was CSCS Plc with 661.6 million units valued at N13.9 billion, VFD Group followed with 9.4 million units valued at N2.9 billion, and AG Mortgage Bank Plc with 2.3 billion units valued at N1.2 billion.
Latest News on Business Post
- YouTube Music, Sarz Academy to Train Producers, Songwriters May 17, 2022
- Who Wears Nigerian Idol Season 7 Crown, Progress or Zadok? May 17, 2022
- Cyber Attacks: Africa Must Encourage Digital Skills Development—Experts May 17, 2022
- B2B e-Commerce: Fostering Sales, Distribution with Data Analytics May 17, 2022
- Akinwumi Adesina Turns Down Requests to Become Next Nigerian President May 17, 2022
- Oyo Catholic Diocese Gets Licence to Operate Microfinance Bank May 17, 2022
- Introduction of Capital Gains Tax Could Discourage Investors—Popoola May 17, 2022
- Afreximbank, APPO to Establish African Energy Bank May 17, 2022
- NowNow Unveils New Features to Boost Contactless Payments May 17, 2022
- Inflation in Nigeria Jumps to 16.82% in April 2022 May 17, 2022