Author: Julius Alagbe

Nestlé Nigeria Net Loss Expands by 107% to N165bn Nestlé Nigeria Plc net loss increased sharply in 2024, according to earnings results, on the back of lingering pressures in the consumer sectors. The consumer goods company’s loss after tax climbed to N164.595 billion in 2024, up by 107% year on year from N79.473 billion in the comparable period in 2023 despite huge tax credits. Details from Nestle Nigeria’s financial scorecard showed that revenue increased by 75% year on year to N958.814 billion in 2024, from N547.118 billion in 2023. But costs of sales rose faster than revenue growth, dragging margin…

Liquidity: Bonds Payment Stokes Pressure on Interbank Rates Interbank rates rose as Nigerian bonds auction settlement dragged liquidity in the financial system. The money market experience huge outflow relating to settlement of bonds auction sales by the Debt Office on Monday. FGN bond auction settlement of approximately N910.30 billion dragged liquidity level lower on Wednesday as market anticipates inflows from FAAC disbursement. Hence, the Nigerian Interbank Offered Rate (NIBOR) trended upward across all tenors, indicating tight liquidity conditions in the banking system. Similarly, key money market indicators showed an upward movement, with the open repo rate (OPR) increasing by 1.71%…

Bitcoin Falls Below $89K as Sell Pressures Hit Cryptos Sustained sell pressures have sank the market value of all cryptocurrencies below $3 trillion, with Bitcoin trading below $89,000 during trading hours on Wednesday. Ethereum also experienced a significant price decline, just like other top digital assets where investors booked profit. The global crypto market cap settled at $2.94 trillion, trending below $3 trillion mark on the back of stronger retail selloffs. However, there was a touch of early rally, and fluctuation in prices has become more pronounced in the crypto market amidst uncertainties. According to data from CoinMarketCap.com, the total crypto…

Transcorp Power Shareholders to Get N3.50 Final Dividend Transcorp Power Plc shareholders have approved a final dividend of N3.50 per share in respect of the 2024 earnings period at its 12th annual general meeting held on Tuesday in Abuja. The company’s dividend decision followed its impressive earnings performance for the financial year 2024. Transcorp Power grew profit by 165% year on year to N30.2 billion in financial year 2024, bolstered by increased business activities and rising prices. Details from the power generating company showed that annual revenue expanded by 115% year on year to N305.9 billion in 2024 from N142.1…

Interbank Rates Fall as OMO Bills Credit Boosts Liquidity Pressures on the short-term benchmark interest rates eased as huge OMO bill inflows or credit boosted liquidity levels in the banking system ahead of the bond auction settlement. In the absence of a significant shortage, the Nigerian Interbank Offered Rate (NIBOR) trended downward across all tenors ahead of Federal Account Allocation Committee disbursement this week. Similarly, key money market indicators showed an upward movement, with the open repo rate (OPR) decreasing by 2.40% to 30.00% and the overnight lending rate decreasing by 2.33% to 30.57%. The banking system rebounded from a…

Nigeria 10-Year Bonds Rally after Exclusion for Auction Nigeria’s 10-year bonds tenor attracted investors’ attention in the secondary market following an update from the debt office. Investors have continued to show stronger appetite for long duration naira assets to lock in profit amidst potential policy shift. In its FGN bond offer circular, Debt Management Office (DMO) announced the removal of the January 2035s from the upcoming auction. Positive real return on investment on naira assets has boosted local investors’ sentiment. Inflation rate dropped significantly while the authority keeps interest rate benchmark elevated at 27.50%. Signifying deliberate efforts to attract foreign…

Tax Reform Bills to Boost Nigeria’s Fiscal Stability – FRC Mr Victor Muruako, Executive Chairman of the Fiscal Responsibility Commission (FRC), says tax reform bills will strengthen fiscal stability, improving efficiency, transparency, and accountability in tax collection and remittance. Muruako stated this at a public hearing organised by the Senate Committee on Finance on four tax reform bills at the National Assembly in Abuja on Monday. He stated that the bills’ main objectives align with the principles of the Fiscal Responsibility Act, 2007. “In our view, the bills will enhance fiscal stability, modernise tax collection, and improve efficiency, transparency, and…

MTN Nigeria to Release Audited Report after Board Meeting MTN Nigeria Plc.’s board of directors planned to meet on Thursday for the approval of the telecom company’s 2024 audited results. In the stock market, the telecom company has recovered from selling rallies following a broken earnings performance that lasted for three quarters. Data from the Nigerian Exchange showed that MTN Nigeria has gained more than 55% since last year, when its share price bottomed at N170. The telecom company’s share price closed at N264.20 on Friday, while investors valued its 20.995 billion shares outstanding for N5.547 trillion on the Exchange.…

Oando Falls, Trades at 40% Discount as Investors Exit Positions Oando Plc fell sharply, losing about 16% of its market value as investors sold down interest in the indigenous oil company this week. Driven by negative perception, profit-taking activities that started on Monday lasted throughout the week, causing the value of the company on the Nigerian Exchange, NGX, to fall by about N137 billion. According to data from the local bourse, Oando Plc’s share price fell to N59 after more than 9 million units valued at N566.718 million were traded in the market on Friday. A sharp price depreciation witnessed…

Naira Exchange Rates Inch Near Unification with CBN Touch The naira value of a unit of US dollar rose to N1501 in the official foreign exchange market, thanks to continuous support from the Central Bank. The gain posted in FX market driven by increased foreign exchange supply from foreign portfolio investors (FPIs), international oil companies (IOCs), and the Central Bank of Nigeria’s (CBN) market interventions, AIICO Capital Limited said in a note. This boost in dollar liquidity helped ease FX demand pressure. Trading activity was robust, with transactions occurring within the $/₦1,490.00 to $/₦1,520.00 range. The CBN’s foreign exchange sales…