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Business News

Equities: CBN’s heterodox policies is driving domestic investors’ to the stock market.

The NSE data on investor participation for March 2020, total value of transactions executed at the local bourse increased by 64% m/m

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Godwin Emefiele, CBN expands scope of regional banks in Nigeria, gives compliance timeframe

According to recently released data from the Nigerian Stock Exchange (NSE) on domestic and foreign investor participation for March 2020, total value of transactions executed at the local bourse increased by 64% m/m to N242.9bn in March from N148.5bn in February.

The breakdown of the data revealed that the growth in the value of transactions was largely driven by domestic investors (up 72% m/m) compared to their foreign counterparts (up 54% m/m). Interestingly, inflows (N98.3bn) outpaced outflows (N34.4bn), resulting in a net inflow of N63.9bn which is an increase of 1.9x m/m.

Foreign inflows grew 19% m/m to N22.5bn, while foreign outflows grew at a faster pace, up 68% m/m to N87.7bn. Consequently, net outflows spiked from N33.4bn in February to N65.2bn in March, the highest since May 2018.

We believe the intensified sell-off by foreign investors was due to the elevated global risk aversion for EM/FM assets, trigggered by the outbreak of the global pandemic.

The selldown by foreign investors is consistent with the broadly bearish trend in the month of March, as the NSE All Share Index shed 19%.

The sell off by foreign investors pushed the share prices of major bellwethers to historic lows, providing an attractive entry point.

Hence, we think the surge in net inflows from domestic investors in the month was purely driven by cheap valuations amidst elevated system liquidity driven by maturities from OMO bills and low yields on fixed income securities.

In the short to medium term, we expect this trend from domestic investors to persist, given the dislocation in the fixed income markets due to the heterodox policies adopted by the CBN.

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(READ MORE: NSE Amplifies Social Distancing with Tuface Idibia)

On the other hand, although we began to see increased level of foreign investor participation in April, we believe this was driven by the inability of many foreign investors to get dollars for repatriation, forcing some to reinvest their funds.

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We generally expect foreign investors’ interest to remain weak, owing to increased macroeconomic fragilities concerns on stability of the currency, amidst heightened uncertainties on the regulatory landscape in the banking sector.


CSL Stockbrokers Limited, Lagos (CSLS) is a wholly-owned subsidiary of FCMB Group Plc and is regulated by the Securities and Exchange Commission.

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Business News

BUA Group, French company announce progress in 200,000 bpd refinery project

This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.

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The BUA Group and Axens, a French-based petroleum technology company, have both signed a progress acknowledgement statement for the proposed BUA multi-billion-dollar integrated 200,000 barrels per day refinery in Akwa Ibom State.

This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.

BUA, while making the disclosure in a statement on Wednesday, April 14, 2021, said that the French President, Emmanuel Macron, commended its Chairman, Abdul Samad Rabiu, for his commitment to developing lasting relationships between French and Nigerian businesses.

READ: What the $1.5 billion Port Harcourt refinery deal means to us – Maire Tecnimont

The statement said that this came as the French Minister for Foreign Trade and Economic Attractiveness, Franck Riester, paid a visit to the BUA Group Headquarters in Lagos where he handed over a personal invitation from Macron to Rabiu to attend the Choose France Summit in June in Paris representing business leaders from Nigeria and Africa.

The French minister also witnessed the signing of a progress acknowledgement statement between BUA Group and Axens of France for the proposed refinery project, according to the statement.

The statement also said that during the visit, it was announced that the BUA chairman had been appointed Chairman of the France Nigeria Investment Club.

READ: FG reacts to reports of revoking 32 refinery licenses

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While thanking the minister and Macron for their unwavering support in bringing BUA and French businesses together, Rabiu said BUA had so far initiated partnerships and had developed personal relationships with a few French businesses, including Axens.

He expressed confidence in the quality of expertise and technical know-how of the French companies BUA had partnered with.

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Rabiu pointed out that the BUA refinery would reduce the huge cost of transporting Nigerian crude offshore, refining it and bringing it back into the country when fully operational.

READ: Abdulsamad Rabiu’s stake in BUA Cement has increased by N1.2 trillion in value since listing in 2020

He said that the choice of Akwa Ibom for the refinery was due to the huge availability of raw materials and its proximity to export petroleum products to regional countries.

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The President of Axens, Jean Sentenac, in his statement, said he was pleased that the project was advancing on schedule and expressed delight for the very good cooperation between all the involved parties, reiterating the commitment of Axens in delivering the BUA Refinery Project on time and with the highest standards.

READ: FG to open LPG distribution channels in all local governments

Bottom line

The completion and take-off of the refinery owned by the BUA Group would come as a huge boost for the Federal Government’s effort to stop the importation of refined petroleum products, ensuring that the country becomes a net exporter of these products.

This will also help to conserve the scarce foreign exchange as the completion and take-off of the Dangote refinery and other similar refinery projects will help ensure self-sufficiency in the country.

The BUA Group, just a few days ago, was listed as one of the companies with an active refinery license from the Department of Petroleum Resources (DPR).

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Coronavirus

Covid-19: Nigeria records over 1 million vaccinations

The NPHCDA has stated that it has vaccinated 1,043,737 persons, which is 51.9% of the targeted total proportion.

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Covid-19: First world nations oppose waiving intellectual rights for vaccine development

The National Primary Health Care Development Agency has disclosed that Nigeria, as of April 14th, 2021, had vaccinated 1,043,737 persons, which is 51.9% of the targeted total proportion.

The NPHCDA revealed this in a statement on Wednesday evening.

Kwara State leads in the vaccination percentage of target reached, at 110% with 30,708 vaccinations.

READ: Only 10 countries have administered 75% of all vaccinations – UN Secretary-General

Meanwhile, Lagos State has conducted the most vaccinations so far at 192,061 representing 75.7% of its percentage target reached so far.

The Federal Capital has vaccinated 40.1% of its target so far at 44,098 and Kogi State has conducted the least number of vaccinations at 5,568.

READ: Covid-19: Pope Francis set to get vaccinated, says its ethical

In case you missed it

Nairametrics reported earlier that the Nigerian government aimed to get 70 million Johnson and Johnson single-shot COVID-19 vaccines after the African Union recently announced a deal with the drugmaker for 400 million vaccine doses.

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