Economy
NASD to Launch Investor Protection Fund, Strengthen Trading in H2 2021
By Ashemiriogwa Emmanuel
Following a very impressive first-half performance, the NASD Over-the-Counter (OTC) Securities Exchange is set for an active second half of 2021.
In this half of the year, there are plans to commence the NASD Investor Protection Fund (IPF), among other implementations to further strengthen the unlisted securities bourse.
The Managing Director and Chief Executive Officer (CEO) of NASD, Mr Bola Ajomale, while speaking at a webinar held last Friday, which was monitored by Business Post, stated that the IPF scheme is to compensate investors with genuine claims of pecuniary loss resulting from insolvency, bankruptcy or negligence of a capital market operator.
In addition, he said there are also plans to implement the Financial Information Exchange (FIX) Protocol which will be used to disseminate price and trade information among investment banks and broker-dealers.
He added that there will be the implementation of a tight-coupling to Central Securities Depository (CSD) in the second half of the year which provides securities accounts, central safekeeping services and asset services in helping to ensure the integrity of securities issues.
“We believe these plans will come into fruition in the second half of 2021. We are trying to get market investors into different asset classes to allow investors to participate in the market through buying into funds and several asset classes.
“With ETFs, you are allowed to buy into asset classes that allow you to hedge against risks. We are going to work according to guidelines issued by the SEC on the process of tokenization. When we are set, we will run a web shot of it and be sure,” he stated.
According to him, there are moves to launch a mobile application by the end of the third quarter.
“We are working on making it standardised; engage all operators or participating institutions in the market and then run a test to get feedback,” he said.
Speaking on strategies for the NASD to attract more foreign investors, the NASD helmsman said, “The OTC market we operate is one where we see foreign investors come in for the long term stocks and take a short position in a short period and sometimes, they come in a position (long or short) in a particular stock and exit the stock or market leaving Nigerians to buy the awkward end of that stock. So, the OTC market is one for short term positions on stocks.”
He also said the bourse plans to regulate crowdfunded projects to open its crowdfunding portal, VentureRamp, for donor-based crowdfunding which facilitates capital raise for enterprises seeking to fund projects of varying sizes, expansion, new product development, and so on.
Mr Ajomale noted that the exchange will open its dealer category for applicants who want to register with NASD as dealers on the OTC Market while onboarding was set to commence soon.
NASD OTC Securities Q2 Market Performance Breakdown
Meanwhile, NASD recorded a positive market performance at the close of the second quarter of 2021 compared to the previous quarter as its market capitalisation increased by 22.9 per cent to N652.5 billion from the N531 billion recorded in the first quarter of the year.
Similarly, NASD Security Index (NSI) also rose by 1.1 per cent to 754.9 index points from the 747.01 recorded at the end of the first three months of 2021.
Trading activity in the period under review showed that the total value on the market jumped to N7.8 billion from the N1.4 billion, a 457 per cent increase, while the volume also skyrocketed by 936.6 per cent from 41 million units to 425 million units.
This happened as three new companies joined the market in the period under review; the Nigerian Exchange Group Plc, 11 Plc and Capital Bancorp Plc.
This equally led to a rise in the number of deals recorded at the bourse for the quarter under review as investors executed a total of 2,292 deals, 512.8 per cent higher than the 374 recorded in Q1 2021.
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
By Adedapo Adesanya
The Naira appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, July 17, by N1.35 or 0.07 per cent to N1,380.18/$1 from N1,381.53/$1.
It also improved its value against the Pound Sterling in the same market segment during the session by N11.75 to trade at N1,854.42/£1 compared with the previous day’s N1,866.17/£1, and gained N5.69 against the Euro to sell at N1,576.99/€1 versus Thursday’s closing price of N1,582.68/€1.
In the same vein, the Naira chalked up N1 against the United States currency yesterday at the GTBank forex desk to quote at N1,388/$1, in contrast to the preceding day’s N1,389/$1, but closed flat at the black market at N1,405/$1.
The appreciation of the Nigerian currency on Friday came amid fresh signals that Nigeria is building its external reserves for protection against shocks and excessive currency volatility.
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, said the country’s gross reserves had risen above approximately $52 billion by 15 July, while net reserves had increased from about $3 billion when the current CBN leadership took office to more than $40 billion.
Mr Cardoso linked the increase in reserves to reforms that had restored greater confidence in the foreign exchange system. He also pointed to efforts to diversify foreign currency inflows, including policies designed to increase remittances through official channels.
He noted that monthly diaspora remittances had risen above $600 million and the CBN expected them to reach approximately $1 billion by the end of 2026. The target is part of a broader effort to grow reserves through recurring inflows rather than temporary measures.
The improvement, he argued, had strengthened Nigeria’s capacity to respond when unexpected events threatened market stability.
The apex bank has also launched a new digital platform that will track every foreign exchange transaction involving Bureau De Change (BDC) operators, marking a major step in its efforts to improve transparency and strengthen oversight of Nigeria’s retail forex market.
As for the crypto market, prices were up as markets overlooked geopolitical developments and macro forces weighing on the whole market ecosystem rather than anything crypto-specific, with Cardano (ADA) up by 4.6 per cent to $0.1661.
Bitcoin (BTC) jumped by 1.8 per cent to $63,968.32, Ethereum (ETH) improved by 0.9 per cent to $1,843.88, Dogecoin (DOGE) also rose by 0.9 per cent to $0.0723, Solana (SOL) soared by 0.6 per cent to $74.90, Ripple (XRP) also appreciated by 0.6 per cent to $1.08, and Binance Coin (BNB) advanced by 0.1 per cent to $567.32.
However, TRON (TRX) depreciated by 0.2 per cent to close at $0.3218, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
