Economy
NECA Backs Tinubu’s 15% Fuel Import Levy
By Adedapo Adesanya
The Nigeria Employers’ Consultative Association (NECA) has backed the proposed 15 per cent fuel import tariff introduced by the President Bola Tinubu-led government.
According to NECA Director General, Mr Wale Smatt Oyerinde, the move will enhance local production of the commodity.
“We support the policy of a 15 per cent tariff on imported petroleum products — not on locally produced ones.
“If the 15 per cent tariff is the ‘punishment’ we must bear collectively for our recklessness in allowing our four refineries to collapse, then so be it,” he said when he was interviewed on Channels Television on Friday.
“Even developed nations like the US are introducing protectionist policies to protect their local industries. We don’t have much excuse not to do the same,” the NECA boss said.
Recall that President Tinubu had approved the 15 percent tariff increase in a letter sent to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, mandating its enforcement.
Critics have faulted the move, arguing it will lead to an increase in the landing cost of the product, with petrol and diesel expected to see further increment.
However, support for the programme has come from many quarters including energy businessman, Mr Femi Otedola, who backed move recently.
The NECA chief also believes the policy is a step in the right direction, adding that a similar actions should be extended to other areas.
“The president gave approval about two weeks ago, and the OPS has done its analysis. We’re also looking beyond petrol and diesel.
“To ramp up production in the manufacturing and real sectors, this kind of policy should extend there too. Why do we import things we can produce locally? It affects forex and other aspects of the economy,” Mr Oyerinde said.
“We’ve said that everything we can produce locally should attract import duties, provided we have made sufficient arrangements for local production to meet our needs. If we have to give businesses a one- or two-year moratorium to integrate backward, then fine, but let’s reduce the tendency to import,” he added.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the green territory on Tuesday, January 6 as it further expanded by 1.08 per cent at the close of business.
During the session, the NASD Unlisted Security Index (NSI) closed higher by 38.63 points to 3,613.96 points from the 3,575.33 points it finished a day earlier, and the market capitalisation added N23.11 billion to close at N2.162 trillion compared with the N2.139 trillion it finished on Monday.
Yesterday, investors completed their transactions in 56 deals, 273.3 per cent higher than the 15 deals carried out on Monday.
In the same vein, the volume of securities transacted by investors increased by 594.9 per cent to 1.4 million units from the previous day’s 193,973 units and the value of securities surged by 525.0 per cent to N28.0 million from Monday’s N4.5 billion.
On a year-to-date basis, Central Securities Clearing System (CSCS) Plc ended the day as the most traded stock by value with 564,080 units sold for N20.8 million, trailed by Okitipupa Plc with the sale of 49,000 units valued at N10.9 million, and Geo-Fluids Plc with a turnover of 1.6 million units worth N10.7 million.
But, Industrial and General Insurance (IGI) Plc finished the session as the busiest stock on a year-to-date basis with 2.9 million units traded for N1.9 million, followed by Geo-Fluids Plc with 1.6 million units valued at N10.7 million, and CSCS Plc with 564,080 units transacted for N20.8 million.
Business Post reports that there were two price gainers on Tuesday and one price loser led by Geo-Fluids Plc, gave up 16 Kobo to close at N6.78 per unit versus N6.94 per unit.
However, FrieslandCampina Wamco Nigeria Plc added N5.17 to close at N56.87 per share compared with the previous day’s rate of N51.70 per share, and CSCS Plc appreciated by N2.74 to N38.74 per unit from N36.00 per unit.
By Dipo Olowookere
The second trading session of the week on the Nigerian Exchange (NGX) Limited ended on a positive note with a further 0.46 per cent surge on Tuesday.
The strong appetite for Nigerian stocks helped the market capitalisation of Customs Street to grow by N468 billion to N102.275 trillion from N101.807 trillion and the All-Share Index (ASI) soared by 732.86 points to 159,951.08 points from the previous day’s 159,218.22 points.
Yesterday, 65 equities ended on the gainers’ chart and 21 equities finished on the losers’ table, indicating a positive market breadth index and bullish investor sentiment.
Meyer expanded by 10.00 per cent to N14.30, Jaiz Bank appreciated by 10.00 per cent to N5.28, ABC Transport increased by 9.98 per cent to N4.96, and Austin Laz gained 9.94 per cent to close at N5.64.
Conversely, Aluminium Extrusion lost 9.96 per cent to settle at N21.70, Learn Africa decreased by 9.16 per cent to N5.95, Oando shrank by 7.69 per cent to N40.80, UBA weakened by 6.22 per cent to N43.00, and Access Holdings crashed by 6.00 per cent to N23.50.
Business Post reports that Linkage Assurance led the activity chart after it transacted 51.6 million shares worth N93.1 million, Sterling Holdings traded 49.2 million stocks valued at N368.5 million, Access Holdings sold 48.7 million equities for N1.2 billion, Mutual Benefits exchanged 34.7 million shares valued at N142.0 million, and Regency Alliance transacted 26.4 million stocks worth N33.6 million.
At the close of trades, market participants bought and sold 759.0 million equities for N19.9 billion in 54,212 deals during the session versus the 695.7 million equities worth N18.6 billion in 56,632 deals on Monday.
This showed that the volume of transactions and the value of trades went up by 9.10 per cent, and 6.99 per cent, respectively, while the number of deals went down by 4.27 per cent.
By Adedapo Adesanya
The Naira recorded a N10.24 or 0.72 per cent gain on the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, January 6, to close at N1,419.07/$1 compared with the previous day’s N1,429.31/$1, extending the stellar start to the year.
The local currency also improved its value against the Pound Sterling in the same market window yesterday by N2.98 to trade at N1,917.20/£1 versus N1,920.27/£1 and gained N7.12 on the Euro to end at N1,660.31/€1 compared with Monday’s closing price of N1,667.43/€1.
At the GTBank forex counter, the domestic currency appreciated against the greenback on Tuesday by N3 to finish at N1,435/$1 versus the previous value of N1,438/$1 and at the parallel market, it maintained stability on the Dollar at N1,470/$1.
The Naira gains come amid ease in demand seen in the softer market activity at the start of the year, alongside reduced participation from offshore investors.
FX inflows into the NFEM window declined by 20.67 per cent week on week to $593.70 million from $748.40 million in the previous week, according to a weekly report by Coronation Merchant Bank.
Market analysts expect that the Central Bank of Nigeria (CBN) will maintain its strategic interventions in the FX market and implement initiatives aimed at boosting liquidity and curbing speculative activities.
Meanwhile, the CBN’s gross external reserves edged up by 0.58 per cent, rising by $264.56 million at the start of the year to $45.50 billion, and increasing further to $45.56 billion as of January 2, 2025.
A look at the digital currency market showed that it was in red, triggered by renewed selling pressure with market analysts saying the digital currencies are starting the year in recalibration mode rather than retreat.
After earlier gains. Ripple (XRP) slumped by 5.2 per cent to $2.25, Cardano (ADA) declined by 2.9 per cent to $0.4111, Dogecoin (DOGE) shrank by 2.6 per cent to $0.1479, Bitcoin (BTC) slid by 1.4 per cent to $93,625.47, Litecoin (LTC) went down by 1.0 per cent to $82.90, and Solana (SOL) lost 0.4 per cent to sell $138.76.
On the flip side, Binance Coin (BNB) appreciated by 0.7 per cent to $914.53, and Ethereum (ETH) improved by 0.3 per cent to $3,248.36, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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