Economy
Nigeria’s Revenue-to-GDP Ratio Too Low for Economic Growth—IMF
By Dipo Olowookere
The International Monetary Fund (IMF) has said Nigeria’s revenue–to-gross domestic product (GDP) ratio of about 9 per cent was too low to trigger the economic growth projected by President Bola Tinubu in his Renewed Hope Agenda.
Addressing journalists at its last press briefing for 2023 on Thursday, the global lender said the administration of Mr Tinubu must boost the government’s revenue to have funds to achieve his goals.
On May 29, 2023, Mr Tinubu took over from Mr Muhammadu Buhari, promising to jump-start the economy and work tirelessly to address food security, end hunger, eradicate poverty, create jobs, and help the most vulnerable members of society
To kick start, he removed the payment of subsidies for petrol and adopted a foreign exchange liberalisation policy, though the exchange rate between the official and the black markets remains wide (N843.07/$1 at NAFEM and N1,180/$1 at the black market.)
At the briefing yesterday, the IMF Director for Communications Department, Ms Julie Kozak, praised Mr Tinubu for the “two bold and important reforms shortly.”
However, she stressed that the revenue-to-GDP ratio must be improved to “create fiscal space for social and development spending.”
“Raising revenue from the very current low revenue to GDP ratio of 9 per cent is essential to create fiscal space for social and development spending.
“Nine per cent of GDP is a very low revenue-to-GDP ratio, and it is not high enough to be able to support strong social safety nets and development spending, to help protect vulnerable households and also to meet Nigeria’s development needs.
“The 2024 budget aims to reduce the fiscal deficit while also creating space for these priority spendings, both on the social side and also on the development side,” she said.
While commenting on the rising inflation in the country, Ms Kozak said the Central Bank of Nigeria (CBN) may have to raise the monetary policy rate (MPC) at its next Monetary Policy Committee (MPC) meeting.
Recall that last month, the National Bureau of Statistics (NBS) said inflation in October 2023 increased by 27.33 per cent, while the MPC at its last meeting in July pegged the benchmark interest rate at 18.75 per cent.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a decline of 0.61 per cent in the 25th trading week of 2025, with the benchmark index, the NASD Unlisted Security Index (NSI), going down by 20.31 points to 3,320.91 points from the 3,341.22 points posted in Week 24.
In the same vein, the market capitalisation, which captures the total value of stocks on the platform, went down by N20 billion to N1.94 trillion from the N1.96 trillion recorded in the preceding week.
Business Post reports that there were eight price gainers and three price losers in the five-day trading week, led by Okitipupa Oil Palm Plc, which fell by 9.50 per cent to close at N219.00 per unit versus the preceding week’s N242.00 per unit, Central Securities Clearing System (CSCS) Plc lost 2.78 per cent to trade at N29.00 per share versus N29.43 per cent share of the earlier week, and Friesland Campina Wamco Nigeria Plc shed 2.06 per cent to trade at N69.38 per unit compared with the preceding week’s N70.84 per unit.
On the flip side, Geo-Fluids Plc gained 9.87 per cent to finish at N4.23 per share versus N3.85 per share. Air Liquide Plc appreciated by 9.80 per cent to N9.97 per unit versus N9.08, AG Mortgage Bank Plc rose by 9.21 per cent to N83 Kobo per share from 76 Kobo per share, FirstTrust Mortgage Bank Plc improved by 8.62 per cent to 63 Kobo per unit from 58 Kobo per unit, Food Concepts Plc expanded by 7.27 per cent N1.77 per share from N1.65 per share, Acorn Petroleum Plc grew by 6.36 per cent to N1.17 per unit from N1.10 per unit, Industrial and General Insurance Plc chalked up 2.86 per cent to quote at N36 Kobo per share versus N35 Kobo per share, UBN Property Plc increased by 2.75 per cent to N2.34 per unit from N2.18 per unit, and Afriland Properties Plc jumped by 0.78 per cent to N29.40 per share from N19.25 per share.
In the week, the total value of trades went up by 255.2 per cent to N113.13 million from N39.1 million, while the total volume of transactions went down by 35.6 to 2.44 million units from 3.80 million units.
FrieslandCampina Wamco Nigeria Plc was the busiest stock by value with N90.3 million, CSCS Plc recorded N13.2 million, Okitipupa Plc posted N5.2 billion, Afriland Properties Plc sold N1.6 million, and 11 Plc achieved N1.1 million.
Also, FrieslandCampina Wamco Nigeria Plc was the most active by volume with 1.3 million units, CSCS Plc traded 0.43 million units, UBN Property Plc exchanged 0.27 million units, Lagos Building Investment Company (LBIC) Plc reported 0.15 million units, and Afriland Plc transacted 0.08 million units.
By Aduragbemi Omiyale
The suspension earlier placed on Thomas Wyatt Nigeria Plc by the Nigerian Exchange (NGX) Limited has been lifted.
This action was taken on Wednesday, allowing investors to resume trading in the shares of the company, a pioneer paper conversion and printing firm in Nigeria.
Recall that on February 11, 2025, the stock market regulator suspended trading in the equities of Thomas Wyatt because of its inability to publish its financial statements for the year ended March 31, 2024.
The embargo on the organisation, according to the NGX, was in line with the provisions of Rule 3.1: Rules for Filing of Accounts and Treatment of Default Filing (Default Filing Rules).
Business Post reports that the rule requires the regulator to prohibit the buying and selling of the company’s securities on its platform “If an issuer fails to file the relevant accounts by the expiration of the cure period.”
However, before the suspension if effected, the NGX must have sent the defaulting firm “a second filing deficiency notification” within two business days after the end of the cure period.
After the suspension of trading in the issuer’s securities, the NGX must “notify the Securities and Exchange Commission (SEC) and the market within 24 hours.”
In a statement last Wednesday, the stock exchange informed the market that “Thomas Wyatt Nigeria has now filed its audited financial statements for the year ended March 31, 2024, and other outstanding unaudited financial statements for 2024.”
“In view of the company’s submission of its 2024 AFS, and pursuant to Rule 3.3 of the default filing rules, which states that the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided the exchange is satisfied that the accounts comply with all applicable rules of the exchange. the exchange shall thereafter also announce through the medium by which the public and the sec was initially notified of the suspension, that the suspension has been lifted, trading license holders and the investing public are hereby notified that the suspension placed on trading on the shares of Thomas Wyatt Nigeria Plc was lifted on Wednesday, June 18, 2025,” the notice stated.
By Dipo Olowookere
There was an improvement in the level of activity at the Nigerian Exchange (NGX) Limited last week, with 3.566 billion stocks worth N115.403 billion exchanging hands in 99,960 deals compared with the 2.057 billion stocks valued at N51.015 billion traded a week earlier in 65,016 deals.
It was observed that the financial services sector was the most active with 2.166 billion shares sold for N62.046 billion in 45,851 deals, contributing 60.73 per cent and 53.76 per cent to the total trading volume and value, respectively.
The consumer goods industry traded 580.893 million equities valued at N10.896 billion in 10,909 deals, and the services counter exchanged 193.300 million shares worth N2.449 billion in 6,306 deals.
The trio of Zenith Bank, Champion Breweries, and Access Holdings accounted for 1.003 billion stocks valued at N26.076 billion in 14,232 deals, contributing 28.14 per cent and 22.60 per cent to the total trading volume and value, respectively.
In the five-day trading week, 55 equities appreciated like the preceding week, 42 shares depreciated versus 39 shares of the previous week, and 51 stocks closed flat, in contrast to 54 stocks of the previous week.
Ellah Lakes gained 23.09 per cent to sell for N5.33, Beta Glass appreciated by 19.43 per cent to N276.00, LivingTrust Mortgage Bank improved by 18.88 per cent to N6.80, GTCO advanced by 18.81 per cent to N84.95, and Meyer rose by 13.61 per cent to N9.60.
Conversely, Northern Nigeria Flour Mills lost 17.19 per cent to trade at N93.20, Sunu Assurances depleted by 12.81 per cent to N4.56, Oando tumbled by 11.59 per cent to N61.00, International Energy Insurance crashed by 9.55 per cent to N1.61, and Omatek deflated by 7.59 per cent to 73 Kobo.
Business Post reports that the All-Share Index (ASI) and the market capitalisation appreciated by 2.35 per cent and 2.40 per cent to close the week at 118,138.22 points and N74.534 trillion, respectively.
Similarly, all other indices finished higher except the industrial goods and sovereign bond indices, which fell by 0.36 per cent and 0.78 per cent apiece, while the AseM index closed flat.
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