Economy
NSE Boosts Assets by 9% Amid 13% Drop in Transaction Fees
By Adedapo Adesanya
The Nigerian Stock Exchange (NSE) recorded a boost in its total assets in the financial year ended December 31, 2018 despite the decline in transaction fees, Business Post reports.
The exchange, at its 58th Annual General Meeting (AGM) held on Monday, September 30, 2019, at the NSE Event Centre, Lagos, said its assets recorded a 9 percent growth, closing the 2018 fiscal year at N29.1 billion.
At the meeting, CEO of the exchange, Mr Oscar Onyema, informed participants that N4.1 billion of the total assets, representing 14 percent, was held in liquid assets and an accumulated fund of N25.9 billion to close 2018 with a sound liquidity position.
However, the exchange recorded a 13 percent decline in transaction fees to N3.3 billion in 2018, mainly influenced by the capital market trends within the period, mostly impacting on the listings revenue stream.
But Mr stressed that the exchange demonstrated resilience in the face of a challenging operating environment closing the year with surplus of N2.70 billion.
“Total revenue declined to 8 percent that is N7.67 billion as investors sought towards more guaranteed investment asset classes in the face of uncertainty. Our listings revenue stream was the most impacted, as it fell by 21 percent to N1.4 billion.
“Influenced by the capital market trends within the period, transaction fees also declined to N3.3 billion, a 13 percent drop from last year.
“The balance sheet remained strong with a 9% growth in total assets as the group closed 2018 with total assets of N29.1 billion, with approximately N4.1 billion (14 percent) held in liquid assets and an accumulated fund of N25.9 billion to close the year with a sound liquidity position and strong balance sheet,” he said.
Speaking at the meeting, the President of the National Council of the NSE, Mr Abimbola Ogunbanjo, said, “In line with global markets, our equities market experienced a decline in 2018. This trend, however, was counterbalanced by the NSE’s delivery of key initiatives for the development of the Nigerian capital market.
“We witnessed the Debt Management Office (DMO) list the pioneer N10.69 billion Federal Government of Nigeria (FGN) Sovereign Green Bond, and a N100 billion FGN Ijarah Sukuk Bond.
“This further asserted our aspiration as the platform for both the public and private sector to raise and access capital, encourage financial inclusion and create sustainable value.”
Mr Ogunbanjo also noted that the NSE has expanded its focus on retail investment, positioning the it to deploy innovative and agile smart products and services.
“We made significant progress with the Demutualization process, with the bill now signed into law and assented to the President.
“The successful completion of this project will ultimately strengthen our market as a significant driver of socio-economic development,” he added.
He expressed hope that the NSE will continue to capitalize on new opportunities while taking advantage of recent technological disruptions and seek corporate partnerships in order to maintain a fair and orderly market while delivering sustainable values to its customers and stakeholders.
During the AGM, Members of the Exchange re-elected Mrs. Catherine Nwakaego Echeozo who retired by rotation, as a member of the National Council. Members also re-elected Katsina State Investment & Property Development Co. Limited (Represented by Mrs. Fatimah Bintah Bello–Ismail); Fortress Capital Limited (Represented by Mr. Yomi Adeyemi) and Pilot Securities Limited (Represented by Mr. Seyi Osunkeye).
The Audited Financial Statements of The Exchange as at December 31, 2018 and the reports of National Council and Auditors were presented to the members as part of the Ordinary Business of the day.
By Aduragbemi Omiyale
The Debt Management Office (DMO) on Monday allotted bonds worth N929.3 billion to investors from the N1.7 trillion bids it received from subscribers.
The exercise, which took place on Monday, July 20, 2026, was oversubscribed by market participants, reflecting the confidence investors have in the government’s ability to redeem the debt instrument on maturity.
On offer for sale for the July auction was N1.2 trillion worth of the FGN bonds, but the DMO allotted below this, despite receiving bids above the offer.
The papers were offered in 10-year, 15-year, and 20-year tenors, at N400 billion each.
For the decade-old note, investors staked N444.47 billion, but the debt office sold N245.73 billion at an 18.34 per cent coupon rate. For the one and a half-decade-old paper, bids valued at N518.00 billion were received by the DMO, with a non-competitive bid of N50.00 billion, with N302.13 billion allotted to investors at 18.40 per cent, and for the two-decade paper, the DMO got competitive bids of N665.19 billion and N381.46 billion was sold to bondholders at 18.35 per cent.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, disclosed that Nigeria’s external reserves had risen to $52.5 billion, enough to finance about nine months of imports.
He disclosed this on Tuesday at the end of the 306th meeting of the Monetary Policy Committee (MPC) held in Abuja, where the Monetary Policy Committee (MPC) retained the benchmark interest rate at 26.50 per cent as well as the standing facilities corridor at +50/-450 basis points around the MPR.
Similarly, the Cash Reserve Requirement (CRR) was maintained at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.
Speaking on FX developments, the central banker said at the $52 billion level, the country’s external reserves were significantly above the internationally recommended threshold of three months of import cover.
On the Naira exchange rate, Mr Cardoso said the foreign exchange market had deepened and was now operating on a transparent willing-buyer, willing-seller basis.
He said the apex bank remained committed to maintaining a liquid and functional foreign exchange market, adding that daily market turnover sometimes exceeded $1 billion.
According to him, the long-term stability of the naira would depend on key economic fundamentals, including increased oil exports, foreign direct investment, and improved domestic productivity to reduce dependence on imports.
He also added that the MPC welcomed the federal government’s renewed commitment to stronger policy coordination, particularly collaboration between fiscal and monetary authorities, which he said had helped reduce the impact of the Middle East crisis on the Nigerian economy.
Mr Cardoso said members of the committee also commended efforts to improve crude oil production and urged relevant agencies to intensify reforms in other sectors, including solid minerals, to boost government revenue.
On the regulatory forbearance granted to banks during the COVID-19 period, he reiterated that this had been discontinued because it had served its purpose.
According to him, the policy had “outlived its time” and was no longer necessary in assessing the health of the banking sector.
“Forbearance, we felt, had outlived its time. Many of you will recall this is something that came as a result of COVID. And now we are in 2026; we did not see the reason why that should continue to form part of the analysis of the banking system,” he said.
Mr Cardoso explained that banks had begun recalibrating their portfolios following the end of the policy, leading to a temporary reduction in outstanding risk assets.
He, however, assured that the development was part of a transition towards a stronger and more sustainable credit environment.
“It reflects a transition to a more sustainable and better quality credit environment, which is what we all want. We don’t want unanticipated shocks that come in a boom-and-bust fashion,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its recent positive run by 1.17 per cent on Tuesday, July 21, triggered by appreciation seen in four bellwethers.
Leading the pack was FrieslandCampina Wamco Nigeria Plc, which added N12.00 to its value to close at N153.15 per share compared with the previous day’s N141.15 per share. NASD Plc appreciated by N1.90 to N36.00 per unit from N34.10 per unit, Food Concepts Plc improved by 23 Kobo to N2.48 per share from N2.25 per share, and Afriland Properties Plc grew by a marginal 1 Kobo to N15.01 per unit from N15.00 per unit.
As a result, the market capitalisation of the bourse increased by N30.40 billion to N2.637 trillion from Monday’s N2.606 trillion, and the NASD Security Index (NSI) gained 50.70 points to finish at 4,393.97 points, in contrast to the 4,343.27 points it ended a day earlier.
The unlisted securities exchange recorded a price loser yesterday, and it was Geo-Fluids Plc, which shed 1 Kobo to settle at N2.30 per share versus N2.31 per share.
During the trading day, the volume of securities traded by market participants on Tuesday dropped 99.4 per cent to 322,147 units from the previous day’s 52.6 million units, the value of securities dipped by 89.8 per cent to N19.4 million from the preceding session’s N191.2 million, and the number of deals contracted by 3.6 per cent to 27 deals from 28 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis, with 3.4 billion units traded for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 75.4 million units exchanged for N5.3 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
