Economy
Stocks Further Shed 0.17% as Investors Lose Confidence in CBN FX Policy
By Dipo Olowookere
Nigerian stocks received further beatings on Tuesday as investors began to lose confidence in the foreign exchange (FX) policy of the Central Bank of Nigeria (CBN).
On Monday, the acting CBN Governor, Mr Folashodun Shonubi, after a meeting with President Bola Tinubu at the State House in Abuja, said plans are being made to stabilise the Naira, warning that speculators will soon regret selling their local currency assets for Dollars.
He said this after the audit accounts of the apex bank for the 2022 fiscal year showed that what is left in the external reserves, about $20 billion, may not be enough to defend the Nigerian currency, triggering fears among some investors.
At the market yesterday, traders offloaded some of their equities, apparently in panic so as not to be caught off-guard. Some of them are selling to buy forex to edge their funds against Naira.
Business Post observed that apart from the insurance counter, which appreciated by 1.32 per cent, every other sector finished lower at the close of transactions.
The consumer goods space lost 0.68 per cent, the energy index depreciated by 0.40 per cent, the banking sector went down by 0.08 per cent, and the industrial goods counter finished lower by 0.06 per cent.
As a result, the All-Share Index (ASI) decreased by 107.39 points to 64,928.98 points from 65,036.37 points, and the market capitalisation moderated by N58 billion to N35.357 trillion from N35.415 trillion.
Eterna ended the trading session as the heaviest price loser as it shed 9.86 per cent to trade at N16.00, Sunu Assurance trended downward by 9.62 per cent to 94 Kobo, Omatek declined by 8.11 per cent to 34 Kobo, Unilever Nigeria slumped by 7.05 per cent to N14.50, and AIICO Insurance dropped 5.63 per cent to sell at 67 Kobo.
The biggest price gainer was Tantalizers as it improved by 10.00 per cent to 44 Kobo, Ikeja Hotel grew by 9.82 per cent to N3.13, Cornerstone Insurance expanded by 9.30 per cent to N1.41, The Initiates appreciated by 8.82 per cent to N1.11, and Linkage Assurance rose by 8.33 per cent to 91 Kobo.
At the close of business, there were 31 price losers and 19 price gainers, indicating a negative market breadth index and a weak investor sentiment.
Apart from the CBN policy, the market reacted to the inflation figures of July 2023 released by the National Bureau of Statistics (NBS) on Tuesday.
The agency revealed that the average price of goods and services increased on a year-on-year basis by 24.08 per cent. In the previous month, inflation rose by 22.79 per cent.
This may have also put the Nigerian Exchange (NGX) Limited under selling pressure yesterday, as the level of activity increased, with the trading volume, value, and the number of deals rising by 8.30 per cent, 11.91 per cent, and 6.73 per cent, respectively.
This was because the bourse recorded the sale of 280.5 million equities worth N4.7 billion in 6,296 deals compared with the 259.0 million equities worth N4.2 billion traded in 5,899 deals on Monday.
For another trading session, Transcorp was the most active after selling 36.5 million stocks valued at N147.5 million, followed by UBA, which sold 23.2 million shares for N325.4 million. Access Holdings transacted 17.7 million equities worth N299.4 million, Sterling Holdings exchanged 16.0 million shares worth N57.5 million, and Japaul traded 11.4 million stocks valued at N11.0 million.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB) have issued new guidelines clarifying the taxation of virtual assets in Nigeria.
The guidelines provide an administrative framework for the taxation of virtual assets and specify the tax obligations of individuals and businesses operating in the sector.
According to a public notice issued by the two agencies, the framework covers registration, reporting and record-keeping requirements, valuation principles and the tax treatment of virtual asset transactions.
It applies to taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer (P2P) marketplace operators, tax practitioners and other persons engaged in virtual asset-related activities.
The NRS and JRB said the guidelines were developed in line with the provisions of the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025.
The two bodies said the release was aimed at providing clarity, certainty and consistency in the administration of Nigeria’s tax laws as the country’s virtual asset ecosystem continues to evolve.
The agencies added that the framework would promote voluntary compliance, enhance transparency and support the development of a fair and efficient tax system for digital asset transactions.
They urged all affected taxpayers and stakeholders to familiarise themselves with the guidelines and ensure compliance with the applicable tax obligations.
The guidelines are available on the official websites of the two agencies.
By Adedapo Adesanya
Manufacturers are yet to benefit from relief on the burden of multiple taxes and levies despite the enactment of the Nigeria Tax Act 2025, according to the Manufacturers Association of Nigeria (MAN).
The association, in its Manufacturers CEO Confidence Index (MCCI) report for the second quarter of 2026, said manufacturers continued to face multiple tax collectors and regulatory agencies during the period.
Director-General of MAN, Mr Segun Ajayi-Kadir, said the new tax law, which was expected to reduce the burden of multiple taxation, had yet to deliver the intended benefits.
“Manufacturers complained that they were still met with multiple tax collectors and regulators in Q2 2026. It follows that the implementation of the Nigeria Tax Act 2025 is yet to achieve its objective of relieving manufacturers of the burden of taxes and levies,” he said.
According to the report, Nigeria’s business environment remains largely unsupportive of manufacturing growth, with local sourcing of raw materials emerging as the only indicator that recorded noticeable improvement.
MAN, however, warned that the gains in local sourcing could be undermined by worsening insecurity in parts of the country.
The association attributed the improvement largely to persistent foreign exchange constraints, which have forced many manufacturers to source inputs locally.
Despite this, it said excessive regulation and multiple taxation continue to weigh heavily on manufacturers.
The report showed that manufacturers recorded a modest increase in sales volume during the second quarter, but rising production, distribution and logistics costs continued to erode profitability.
It added that capacity utilisation, production levels, investment and employment remained broadly unchanged during the review period.
MAN further observed that although recent foreign exchange reforms had helped stabilise the naira, inadequate foreign currency supply remained a major constraint to manufacturing operations.
Other key challenges identified in the report include poor infrastructure, high production costs, raw material shortages and unfavourable trade policies.
The association said the findings underscore the continued pressure on manufacturers despite recent fiscal and foreign exchange reforms, stressing the need for more effective implementation of policies aimed at improving the operating environment for the real sector.
By Adedapo Adesanya
The federal government spent N3.14 trillion on servicing its domestic debt in the first quarter (Q1) of 2026, according to the Debt Management Office (DMO).
The figure, contained in the DMO’s latest domestic debt service report for Q1 2026, comprised N2.97 trillion in interest payments and N169.68 billion in principal repayments.
According to the report, the government spent N741.82 billion on domestic debt service in January before the figure rose to N967.67 billion in February.
Debt service increased further to N1.43 trillion in March, bringing total spending for the quarter to N3.14 trillion.
The March figure represented a 47.7 per cent increase from the N967.67 billion recorded in February and was 92.7 per cent higher than the N741.82 billion spent in January.
The debt office said interest payments accounted for approximately 94.6 per cent of the total domestic debt service during the quarter.
Treasury bills accounted for the largest share of interest payments at N1 trillion, while interest payments on Federal Government bonds stood at N1.96 trillion.
The government also paid N4.24 billion in interest on FGN savings bonds during the period.
The debt management body said the principal component of the debt service comprised N169.68 billion in repayments on local-denominated promissory notes.
Overall, domestic debt service rose significantly throughout the quarter, with March alone accounting for nearly half of the N3.14 trillion spent between January and March.
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