Business News
Coronavirus blamed for Monday’s negative performance by Nigerian stocks
Investors in the Nigerian equity market sold off most of their shares, on Monday, causing the market to decline.
Investors in the Nigerian equity market sold off most of their shares, on Monday, causing the market to decline by 1.08%, even as the NSE All Share Index dropped down to 28, 533.40 points. This represents a 3-week low.
As it turns out, the bearish sentiment was caused by the Coronavirus which has continued to threaten the Chinese economy. Reuters reported that equity investors on the NSE are afraid that the virus threat could eventually affect Chinese demand for various goods, including raw materials like crude, which Nigeria sells to the country.
Note that China is Nigeria’s major partner, buying a significant portion of the West African country’s crude output which it uses to power its many industries.
The Nigerian economy depends mostly on revenues realized from oil sales to countries such as China. What this means, therefore, is that the Nigerian economy could face serious troubles if Chinese demand for Nigerian crude drops.
Already, the Nigerian economy has faced various challenges, including revenue shortage due to lower oil revenue, high inflation rate, depleting foreign reserves, and even a possible devaluation of the naira. As you can expect, some of these indicators have mostly affected the stock market negatively, especially in 2019. As Nairametrics reported, the NSE All-Share Index ended the year with a 14.6% loss.
However, in early 2020, the Nigerian stock market began to pick up with hopes of better performance. Analysts attributed this to higher oil prices which led to an inflow of revenue into the country, thereby encouraging local equity investors to channel money into buying shares.
[READ MORE: NSE: Investors lose N403.02 billion last week, as bear rules]
Unfortunately, as the fear rise Chinese demand for Nigerian crude could decline due to the Coronavirus, many investors are worried about what this could mean to their shareholding, hence the sell-offs. There is also the worry over what possible [negative] implications the US ban on Nigerian immigration could have on the Nigerian economy.
Coronavirus
COVID-19 Update in Nigeria
On the 30th of September 2020, 201 new confirmed cases and 1 death was recorded in Nigeria
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 58,848 confirmed cases.
On the 30th of September 2020, 201 new confirmed cases and 1 death was recorded in Nigeria, having carried out a total daily test of 2,549 samples across the country.
To date, 58,848 cases have been confirmed, 50,358 cases have been discharged and 1,112 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 509,555 tests have been carried out as of September 30th, 2020 compared to 507,006 tests a day earlier.
COVID-19 Case Updates- 30th September 2020,
- Total Number of Cases – 58,848
- Total Number Discharged – 50,358
- Total Deaths – 1,112
- Total Tests Carried out – 509,555
According to the NCDC, the 201 new cases were reported from 13 states- Lagos (77), Rivers (37), Plateau (25), FCT (13), Kaduna (12), Ogun (12), Adamawa (8), Taraba (7), Imo (4), Kwara (2), Osun (2), Abia (1), Oyo (1).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 19,461, followed by Abuja (5,709), Plateau (3,450), Oyo (3,261), Edo (2,626), Rivers (2,432), Kaduna (2,419), Ogun (1,850), Delta (1,802), Kano (1,737), Ondo (1,631), Enugu (1,289), Ebonyi (1,040), Kwara (1,036), Abia (895), Gombe (883). Katsina (861), Osun (839), Borno (745), and Bauchi (699).
Imo State has recorded 572 cases, Benue (481), Nasarawa (450), Bayelsa (399), Jigawa (325), Ekiti (321), Akwa Ibom (288), Niger (259), Adamawa (248), Anambra (237), Sokoto (162), Taraba (102), Kebbi (93), Cross River (87), Zamfara (78), Yobe (76), while Kogi state has recorded 5 cases only.
READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous
Business
Lagos cancels parade, opts for a low-key celebration of Independence Day
Due to the threat of the novel coronavirus, the Lagos state government has said it would observe a low-key celebration.
Lagos State government has opted for a low-key celebration of the 60th independence anniversary of the nation. This decision is due to the ravaging effects of the COVID-19 pandemic, which is still with us.
This statement was made by the Government of Lagos State today, via its official Twitter account.
The Lagos State Government has opted for a low key celebration of the 60th Independence Anniversary due to the ravaging effects of the COVID-19 pandemic, which is still with us.@jidesanwoolu @drobafemihamzat @gbenga_omo @gboyegaakosile @Mr_JAGss #LASG #ForAGreaterLagos pic.twitter.com/xDzMGWig7w
— The Lagos State Govt (@followlasg) September 30, 2020
Governor Babajide Sanwo-Olu has directed that the planned Independence Day Parade at the Agege Stadium by 9 a.m and other activities that involve the gathering of more than 50 people should be canceled.
He congratulates Lagosians on this auspicious occasion and strongly advises that they should celebrate quietly at home and pray for the country. He asked that they should also observe the COVID-19 protocols, including wearing of face masks to protect themselves and their loved ones.
(READ MORE:Lagos approves resumption of full services for churches, mosques)
The Governor urges Lagosians not to let down their guards on COVID-19 so as not to reverse the gains that the state has made in fighting the disease.
The governor congratulates Lagosians on the auspicious occasion and strongly advises that they should celebrate quietly at home and pray for the country. They should also observe the COVID-19 protocols, including wearing of face masks to protect themselves and their loved ones.
Business
Lagos takes major step towards delivery of Fourth Mainland Bridge
The Governor revealed that the proposed bridge has been well integrated into the overall Lagos Master Plan.
The Lagos State Government has taken a major step towards the realization of the Fourth Mainland Bridge by the hosting of the first stakeholders meeting on Environmental and Social Impact Assessment for the construction and launch of the Bridge’s logo.
Speaking at the meeting, the Lagos State Governor Babajide Olusola Sanwo-Olu, who was represented by his Deputy, Dr Kadri Obafemi Hamzat, described the event as a significant one in the joint effort to change the narrative of the socio-economic development of the State, through the provision of critical infrastructure for sustainable prosperity.
The Governor revealed that the proposed Fourth Mainland Bridge has been well integrated into the overall Lagos Master Plan in relation to transportation infrastructure, adding that the project allows for the first time, direct access from the large suburb of Ikorodu to the Island and the Lekki Free Trade Zone area.
Sanwo-Olu disclosed that the state government reactivated the construction of the bridge in October 2019 with the development of a 6 step process that will lead to the selection of a suitable concessionaire in line with global best practices. He noted that the present administration has left no stone unturned in ensuring that the strategic project becomes a reality.
The Governor emphasized that the stakeholder-engagement and consultation on Environmental and Social Impact Assessment was a precursor to the third step, which will involve issuing a Request for Proposal to the six consortia for the presentation of their respective financial proposals and methodologies for carrying out the project.
According to him, “The stakeholders’ meeting was organised to open the project to further inputs, comments, ideas and observations for incorporation into the ongoing social and environmental impact assessment. We hope the meeting would boost the acceptability and implementation ratings of the 4th Mainland Bridge in line with global best practices”.
In her welcome address, the Special Adviser to the Governor on Works and Infrastructure, Engr. Aramide Adeyoye stated that the meeting was another bold step by the present administration towards ensuring the buy-in of Lagosians into the government project and another fulfilment of the promise of Mr Governor to adopt inclusiveness as a tool for governance.
While giving assurances of his unalloyed support towards the project, the Minister for Works and Housing and former Governor of the State, Mr Babatunde Raji Fashola, represented by Dr Adetunji Adeoye, commended Lagos for the construction of the Fourth Mainland Bridge, adding that the construction will create a lot of activities and job opportunities for residents.
The Minister of State for the Environment, represented by Mrs Oluwatoyin Agbenla, described the Fourth Mainland Bridge as an endearing project to the citizens, which will be executed with the highest levels of environmental sustainability.
Nairametrics, last month, reported that the Lagos State Government has shortlisted 6 companies for the design, development, construction, operation, and maintenance of the Fourth Mainland Bridge. This followed the government’s issuance of a Request for Qualification (RFQ) in February this year. The 6 companies were said to have completed the technical and financial capacity requirements.
Lagos State said it will announce the selection of the next stage in due course, even as the RFQ will be given to the pre-qualified bidders.
The Fourth Mainland Bridge is a 37.4km freeway subdivided into three sections namely Island Section, Lagoon Section and Mainland Section. It will commence from Abraham Adesanya Roundabout in Lekki through Ajah and Langbasa areas, crossing the Ado Badore Road before arriving at the Lagoon shoreline.
The road crosses the Lagoon via a 4.5km Lagoon Bridge landing between Bayeku and Ijede villages, passing through Ikorodu-Epe expressway to further link Isawo Road and from there to Lagos/Ibadan Expressway.
A major step towards the realisation of the Fourth Mainland Bridge was, today, taken by the State Government with the first stakeholders meeting on Environmental and Social Impact Assessment for the construction and launch of the Bridge’s logo.@jidesanwoolu#ForAGreaterLagos pic.twitter.com/E4XPivJOxd
— The Lagos State Govt (@followlasg) September 29, 2020
COVID-19 Update in Nigeria
Lagos cancels parade, opts for a low-key celebration of Independence Day
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Lagos takes major step towards delivery of Fourth Mainland Bridge
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COVID-19 Update in Nigeria
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Stanley
February 4, 2020 at 10:53 pm
Of course, ordinarily stock markets thrive on positive vibes about an economy; the kind of vibes which is hard to find in Nigeria at the moment. The poor security situation in the country and corresponding danger to businesses, the high corruption index, rising debt and poor infrastructure, ineffective economic policies as well as over dependence on oil (as pointed out by the IMF on several occasions) have all contributed to put off foreign investors from the country. The current sell offs have nothing to do with the performance of listed firms since many are still healthy and very profitable which is why I expect local investors and portfolio managers to continue to invest in value stocks rather than waiting for foreigners to take the initiative. The doom & gloom prophesied about the Nigerian economy by some foreign rating agencies may still be on course if the Federal government does not implement some drastic changes & policies to truly stimulate the economy. I also believe these forecasts about the Nigerian economy are about 5 years early. Hence, local investors can still take advantage of the current low valuation of value stocks in the short to medium term.