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Market Survey: Price of tomatoes, palm oil, rice spike as traders lament low patronage

The survey found that major markets across Lagos state have been hit with low patronage.



Alert: Tomato prices are up by over 80% in these Lagos markets

Prices of major household items such as tomatoes, palm oil, rice and several others have recorded significant increase across major markets, this is according to the latest household market survey carried out by Nairametrics Research.

The latest household survey conducted by Nairametrics Research Team, revealed that major markets across Lagos state have been hit with low patronage, as traders across complained of low sales due to alternate opening of the markets.


Key Highlights

A big basket of round shaped tomatoes now sells for an average of N16,000 compared to N12,500 recorded in May, which indicates a significant 28% increase. The price of 25 litres gallon of locally made palm oil, which was sold for an average of N10,000 in May rose to an average of N10,750.

Meanwhile, the team found that the price of a big basket of Sweet potatoes reduced significantly by 46.7%, from an initial average of N15,000 to sell for an average of N8,000. Also, a big bag size of dry onions, which was sold for an average of N17,000 now sells for N16,500.

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The report also detailed other items that witnessed significant increase in price, items that recorded decrease in price, items that maintained initial prices, special markets and insights.

Items that witnessed price increase

Some of the items that recorded significant increase in price includes;

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  • A 25 litres gallon of locally made palm oil now sells for an average of N10,750. A 7.5% increase compared to N10,000 recorded in the previous month.
  • Also, a 5 litres gallon of locally produced palm oil also increased by 4.94% to sell at an average of N2,125 compared to an initial average of N2,025.
  • A big basket of round shaped tomatoes recorded a significant spike as it now sells for an average of N16,000. This indicates a 28% increase when compared to an initial average of N12,500.
  • Medium-sized basket of round shaped tomatoes that was initially sold for an average of N6,500, has increased by 46.2% to sell for an average of N9,500 while a small basket sells for an average of N6,000 compared to an initial average of N4,000.
  • A 50kg bag of Mama’s Pride, which was sold for an average of N19,375 in May now cost an average of N21,000 across the four markets.
  • A 50kg bag of Mama Gold now sells for an average of N21,125. A 3.68% increase compared to N20,375 recorded in May 2020.
  • A big bag size of Yellow maize spiked by 23.2% to sell for an average of N17,250 compared to N14,000 recorded in the previous month.
  • A big bag size of White maize also increased by 27.3% to sell for an average of N17,500. A significant change compared to N13,750 recorded in May 2020.
  • A single pack of 500g Bonita pasta that was initially sold for an average of N208 currently sells for an average of N220.
  • The smallest basket of Irish potatoes increased slightly by 4.4% to sell at an average of N1,567 compared to an initial average of N1,500.
  • A bag of Ijebu garri currently sells for an average of N13,375. A 2.88% increase compared to N13,000 recorded in March.


Items that recorded decrease in price

Despite the increase recorded in the price of major household food items, a few items recorded a decline in price

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  • A big sized tuber of yam fell from its thousand mark to sell for an average of N950. This is 24% reduction when compared to an initial average of N1,250.
  • The price of a big basket of Sweet potatoes recorded decline as it now sells for an average of N8,000 compared to an initial average of N15,000 recorded previously.
  • A small basket size of Sweet potatoes also reduced in price, as it moved from an average of N1,000 recorded in May to sell for an average of N633.
  • The price of a big bag of dry onion is currently sold for an average of N16,500. A 2.9% decrease compared to an initial average of N17,000.

Items that maintained initial price

Household items that maintained their initial prices include Milk, Cocoa beverages, vegetable oil, and Flour.

  • A 400g Peak Powdered (Tin) milk continues to sell for an average of N1,213 while 900g still sells for an average of N2,375.
  • 12.5kg of household cooking gas (Refilling) continues to sell for an average of N3,375 while 5kg cylinder is still filled for an average of N1,375.
  • 500g Milo Tin and 900g still sell for an average of N1,038 and N2,075 respectively across the four markets.
  • 5 Litres and 25 Litres gallon of locally made vegetable oil maintained their initial prices at N2,200 and 12,575 respectively.
  • The price of Kote and Titus fish continues to sell for N563 and 575 respectively.
  • Big bag of pepper currently sells for an average of N15,000 at Mile 12 market while the medium-sized bag maintains its initial price of N8,000.



Special Markets

  • Market traders are feeling the brunt of restrictions imposed in the form of alternate days to open markets as they expressed their dissatisfaction due to low sales in recent weeks. Recall that, Lagos state government ordered food selling markets in the state to only open on Tuesdays, Thursdays and Saturdays of the week as a measure to curb the spread of COVID-19 pandemic.
  • Due to this alternating market days, sales have reportedly declined by almost half in major markets, as expressed by major traders interviewed by Nairametrics Research.
  • Oval shaped tomatoes popularly regarded as Yoruba tomatoes was sighted at Mile 12 market during the week. Recall that it had not been available in the past couple of weeks due to harvesting season. Meanwhile, a big basket is sold for an average of N8,500 while a small basket cost N6,500.
  • Sellers of tomatoes at the market told Nairametric Research that the price of tomatoes is highly volatile and changes from time to time. “basket of tomatoes could be sold for an average of N20,000 in the morning, and by afternoon drop to N9,000. So is the nature of tomatoes price,” Shehu said.



Market Insights

  • A big bag of dry Bush mango (Ogbono) recorded a decrease in price from an initial N75,000 recorded in May to an average of N70,000 while a bag of melon (egusi) sells for an average of N68,000.
  • Although the price of Sweet potatoes reduced by 46.7% compared to N15,000 recorded in May, but it is yet to return to its average price of N5,000 being sold earlier in the year.
  • According to a trader interviewed at Oyingbo market who requested to remain anonymous, she said; “over the years, palm oil price usually goes up during rainy season so we are not surprised that the price of palm oil recorded an increase”.
  • Price of various locally made rice sighted at Daleko market are given below:

Mama’s Pride (N21,000), Umza (N21,000), Labana (N22,000), Alamzat (N22,000), Big bull (N23,000), Mama choice (N21,000), and Royal Naija (N20,000).

  • Some other variety of beans and their respective prices; Oloyin beans (Honey beans N14,500), Oloyin pelebe (N15,000), Niger brown beans (N23,000), Maiduguri brown beans (24,000).
ItemsBrandUnitMUSHIN (18/06/2020)DALEKO (18/06/2020)OYINGBO (18/06/2020)MILE 12 (18/06/2020)Average MUSHIN (28/05/2020)DALEKO (28/05/2020)OYINGBO (28/05/2020)MILE 12 (28/05/2020)Average
Bag of RiceMama Gold10kgNA4000NANA4000NA4000NANA4000
Bag of RiceRoyal Stallion50Kg28000NA27000275002750028000NA270002700027333.333333333
Bag of RiceRice Master10kgNA3500NA40003750NA3500NA40003750
Bag of RiceMama Gold50kg22000215002100020000211252000020000210002050020375
Bag of RiceCaprice50kg28000NA275002750027666.6666666672800027000275002700027375
Bag of RiceMama's Pride50kg21000210002100021000210001950019000195001950019375
Bag of BeansOloyin50kg13000125001300012500127501300012500130001250012750
Bag of BeansWhite50kg22000205002100021000211252200020500210002100021125
Bag of BeansBrown>50kg20500195002150021000206252050019500215002100020625
Tuber of YamAbuja1 Big Size Tuber1000900900100095013001200130012001250
Tuber of YamAbuja1 Medium Size Tuber650700750700700700700750700712.5
Carton of NoodlesIndomie305g (Belle full)2900290029002900290029002900290029002900
Carton of NoodlesIndomie200g (Hungry man)3200320032003200320032003200320032003200
Carton of NoodlesChikki100g2000220021002100210020002200210021002100
Carton of NoodlesMinimie70g1600165017001650165016001650170016501650
Carton of NoodlesGolden Penny70g1400140014001400140014001400140014001400
Bag of GarriIjebu80kg13000135001300014000133751250013000125001400013000
Bag of GarriWhite50kg11000115001150011000112501100011500115001100011250
Bag of GarriYellow50kg12000125001200012500122501200012500120001250012250
Basket of PotatoSweetBig Basket800080001500015000
Basket of PotatoSweetSmall Basket700600600633.3333333333310001000
Basket of PotatosweetSmallest Basket200200200200500500
Basket of PotatoIrishBiggest Basket20000200002000020000
Basket of PotatoIrishSmall Basket20002000200020002000
Basket of PotatoIrishSmallest Basket1700150015001566.666666666715001500
Packet of PastaGolden Penny500g4300440043004200430043004400430042004300
Packet of PastaDangote500g4100410042004100412540004100420041004100
Packet of PastaPower (1 pc)500g220220220220220220220220220220
Packet of PastaBonita (1 pc)500g230200230220220220200200210207.5
Gallon of Palm OilLocal5 Litres2200210021002100212521002000200020002025
Gallon of Palm OilLocal25 Litres110001050011000105001075010000950010000950010000
Gallon of Vegetable OilLocal5 Litres2200220022002200220022002200220022002200
Gallon of Vegetable OilLocal25 Litres12600124001290012400125751260012400129001240012575
Gallon of Vegetable OilKings5 Litres3000300030003000300030003000300030003000
Gallon of Vegetable OilWesson5 Litres3900390039003900390039003900390039003900
Gallon of Vegetable OilMamador3.8 Litres25002450250024002462.525002450250024002462.5
Gallon of Vegetable OilPower3 Litres1800180018001800180018001800180018001800
Bunch of PlaintainPlaintain1 Big Bunch500400450500462.5500400450500462.5
Bag of FlourDangote50kg11200112001100011000111001120011200110001100011100
Bag of FlourHoney well50Kg11200112001120011200112001120011200112001120011200
Bag of FlourMama Gold50kg11000113001100011000110751100011300110001100011075
MilkPeak Powdered (Tin)400g12501200120012001212.512501200120012001212.5
Milkpeak Powdered(Tin)900g2400240024002300237524002400240023002375
MilkPeak milk (Refill)500g10501000100010001012.510501000100010001012.5
MilkDano Powdered (Tin)500g1000100010001000100010001000100010001000
MilkDano Powdered(Tin)900g2000200020002000200020002000200020002000
MilkDano (Refill)500g850800800800812.5850800800800812.5
MilkThree Crown (Refill)380g720700750700717.5720700750700717.5
MilkLoya Powdered (Tin)400g10001000100010501012.510001000100010501012.5
MilkLoya (Refill)400g850800850800825850800850800825
MilkCoast (Refill)500g750750750750750750750750750750
Cocoa BeveragesMilo (Tin)500g10001100105010001037.510001100105010001037.5
Cocoa BeveragesMilo (Tin)900g2000210021002100207520002100210021002075
Cocoa BeveragesMilo Refill500g900900900900900900900900900900
Cocoa BeveragesBournvita Refill500g95010009509009509501000950900950
Cocoa BeveragesBournvita (Plastic)900g2000200020002000200020002000200020002000
Cocoa BeveragesOvaltine Refill500g800800850850825800800850850825
Cocoa BeveragesOvaltine(Plastic)500g1100110010001100107511001100100011001075
CoffeeNescafe Classic50g600600600600600600600600600600
TeaLipton Yellow label52g310290300300300310290300300300
TeaTop tea52g300300300300300300300300300300
SugarSt' Loius Sugar(Cube) 500g500550550550537.5500550550550537.5
SugarGolden Penny Sugar (cube)500g350350350400362.5350350350400362.5
BreadButterfield1 loaf350350350350350350350350350350
Bottled Water (Refill)CwayRefill600600650600612.5600600650600612.5
Juice5 Alive1 litre600550550600575600550550600575
JuiceChivita1 litre600550600550575600550600550575
TomatoesBig Basketround shaped16000160001250012500
Medium Basketround shaped9500950065006500
Small Basketround shaped6000600040004000
Big BasketOval Shaped85008500NANA
Small BasketOval Shaped65006500NANA
FishKote (Horse Mackerel)1 big Fish550600550550562.5550600550550562.5
FishTitus (Mackerel)1 big Fish550600550600575550600550600575
PepperBig bag15000150001500015000
Medium bag8000800080008000
MelonBig bag68000680006800068000
OnionsBig bagDry Onions16500165001700017000
OnionsBig bagNew OnionsNANANANA

About Nairametrics Food Price Survey

The Nairametrics Food Price Watch is a bi-weekly household market survey that covers the prices of major food items, with emphasis on five major markets in Lagos – Mushin Market, Daleko Market, Oyingbo Market, Idi-Oro Market and Mile 12 Market.



Nairametrics Research team tracks, collates, maintains and manages a rich database of macro-economic and micro-economic data from Nigeria and Africa. Our analysts share some of the data collated on Nairametrics, using formats such as docs, tables and charts etc. The team also publishes research based analysis as articles on a regular basis.

1 Comment

1 Comment

  1. Lola

    June 27, 2020 at 12:05 am

    Well written, well researched. Welldone!!!

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COVID-19 Update in Nigeria

On the 7th of July 2020, 503 new confirmed cases and 15 deaths were recorded in Nigeria.



The spread of novel Corona Virus Disease (COVID-19) in Nigeria continue to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 29,789 confirmed cases.

On the 7th of July 2020, 503 new confirmed cases and 15 deaths were recorded in Nigeria, having carried out a total daily test of 1,831 samples across the country.


To date, 29,879 cases have been confirmed, 12,108 cases have been discharged and 669 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 152,952 tests have been carried out as of July 6th, 2020 compared to 151,121 tests a day earlier.

COVID-19 Case Updates- 7th July 2020

  • Total Number of Cases – 29,789
  • Total Number Discharged – 12,108
  • Total Deaths – 669
  • Total Tests Carried out – 152,952

According to the NCDC, the 503 new cases were reported from 20 states- Lagos (153), Ondo (76) Edo (54), FCT (41), Enugu (37), Rivers (30), Benue (24), Osun (20), Kaduna (15), Kwara (13), Abia (9), Borno (8), Plateau (6),Taraba (5), Ogun (3), Kano (3), Kebbi (2), Nasarawa (2), Bayelsa (1), Gombe (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 11,520, followed by Abuja (2,322), Oyo (1,530), Edo (1,489), Delta (1,285), Kano (1,271), Rivers (1,235), Ogun (1,050),  Kaduna (883), Katsina (628), Borno (555), Ondo (550), Gombe (521), Bauchi (516), Ebonyi (503), Plateau (460), Enugu (418), Abia (400),  Imo (352), Jigawa (318).

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Kwara state has recorded 297 cases, Bayelsa (269), Nasarawa (234), Osun (198), Sokoto (153),  Niger (122), Benue (121), Akwa Ibom (112), Adamawa (99), Kebbi (86), Zamfara (76), Anambra (73), Yobe (61), Ekiti (45), Taraba (27), while Kogi state has recorded 5 cases.


READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

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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.

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READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

DateConfirmed caseNew casesTotal deathsNew deathsTotal recoveryActive casesCritical cases
July 7, 2020297895036691512108170127
July 6, 202029286575654911828168047
July 5, 2020287115446451111665164017
July 4, 202028167603634611462160717
July 3, 2020275644546281211069158677
July 2, 2020271106266161310801156937
July 1, 2020264847906031310152157297
June 30, 202025694561590179746153587
June 29, 20202513356657389402151587
June 28, 20202486749056579007149957
June 27, 20202407777955848625148947
June 26, 20202329868455458253144917
June 25, 20202261459454977822142437
June 24, 20202202064954297613138657
June 23, 20202137145253387338135007
June 22, 20202091967552577109132857
June 21, 202020242436518126879128477
June 20, 202019808661506196718125847
June 19, 202019147667487126581120797
June 18, 20201848074547566307116987
June 17, 202017735587469145967112997
June 16, 202017148490455315623110707
June 15, 20201665857342445349108857
June 14, 202016085403420135220104457
June 13, 20201568250140785101101747
June 12, 20201518162739912489198917
June 11, 2020145546813875449496737
June 10, 20201387340938217435191407
June 9, 2020134646633654420688937
June 8, 2020128013153617404084007
June 7, 20201248626035412395981737
June 6, 2020122333893429382680657
June 5, 20201184432833310369678157
June 4, 2020115163503238353576467
June 3, 2020111663483151332975227
June 2, 20201081924131415323972667
June 1, 20201057841629912312271579
May 31, 20201016230728714300768687
May 30, 2020985555327312285667267
May 29, 202093023872612269763447
May 28, 202089151822595259260647
May 27, 202087333892545250159787
May 26, 2020834427624916238557107
May 25, 202080682292337231155247
May 24, 202078393132265226353607
May 23, 202075262652210217451317
May 22, 2020726124522110200750337
May 21, 2020701633921111190748987
May 20, 202066772842008184046377
May 19, 202064012261921173444757
May 18, 202061752161919164443407
May 17, 202059593881826159441837
May 16, 202056211761765147239737
May 15, 202054452881713132039544
May 14, 202051621931683118038154
May 13, 202049711841646107037374
May 12, 20204787146158695936704
May 11, 202046412421521090235894
May 10, 202043992481421777834794
May 9, 202041512391271174532784
May 8, 202039123861181067931154
May 7, 20203526381108460128184
May 6, 20203145195104553425071
May 5, 2020295014899548123704
May 4, 2020280224594641722912
May 3, 2020255817088240020702
May 2, 20202388220861735119522
May 1, 20202170238691035117512
April 30, 2020193220459731715562
April 29, 2020172819652730713692
April 28, 2020153219545425512322
April 27, 20201337644102559942
April 26, 20201273914152399942
April 25, 20201182873632229252
April 24, 202010951143312088552
April 23, 20209811083231977532
April 22, 2020873912931976482
April 21, 20207821172631975602
April 20, 2020665382311884662
April 19, 2020627862221704362
April 18, 2020541482021663562
April 17, 2020493511841593172
April 16, 2020442351311522772
April 15, 2020407341211282672
April 14, 202037330111992632
April 13, 202034320100912422
April 12, 20203235100852282
April 11, 202031813103702382
April 10, 20203051770582402
April 9, 20202881471512302
April 8, 20202742260442262
April 7, 20202541661442042
April 6, 2020238650351982
April 5, 20202321851331942
April 4, 2020214540251850
April 3, 20202092542251800
April 2, 20201841020201620
April 1, 2020174352091630
March 31, 202013982091280
March 30, 2020131202181210
March 29, 2020111221031070
March 28, 20208919103850
March 27, 2020705103660
March 26, 20206514102620
March 25, 2020517102480
March 24, 2020444102410
March 23, 20204010112370
March 22, 2020308002280
March 21, 20202210001210
March 20, 2020124001110
March 19, 20208000170
March 18, 20208500170
March 17, 20203100030
March 16, 20202000020
March 15, 20202000020
March 14, 20202000020
March 13, 20202000020
March 12, 20202000020
March 11, 20202000020
March 10, 20202000020
March 9, 20202100020
March 8, 20201000010
March 7, 20201000010
March 6, 20201000010
March 5, 20201000010
March 4, 20201000010
March 3, 20201000010
March 2, 20201000010
March 1, 20201000010
February 29, 20201000010
February 28, 20201100010

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The risk of buying Forex at black market rate of N460/$1 

Between 2012 and 2017 the naira has depreciated by 30% compounded annually.



If you ask anyone today to choose between being paid in dollars or in naira, there will only be one winner. Since the oil price crash in early March and the ravaging COVID-19 virus, the exchange rate between the naira and dollar has depreciated across the multiple official and unofficial markets where the currency can be purchased. 

At the black market, the exchange rate sells for an average N460/$1 (as at this week) and is projected to go higher depending on who you speak to. At the NAFEX market where forex is sold by exporters and investors, the exchange rate is closer to N388/$1 oscillating between a plus or minus N2 band. Just last week the CBN informed the market that the SMIS window where forex is sold to importers and traders that the new floor for forex purchase in N380/$1. The exchange rate at the official CBN window remains N360/$1.  


READ ALSO: Investors lose N162 billion amidst buying pressure from ZENITH, GTBANK 

This buttresses the growing calls for the unification of the various exchange rate windows. The market wants a single uniform rate. It is easy to see why. No one wants to be on the losing side if a repeat of 2017 occurs. In case you forgot, the exchange rate was highly volatile in the parallel market trading for as high as N505/$1 before crashing down to N366/$1 after the CBN introduced the NAFEX window. Many people lost money as the naira converged towards that rate. You don’t be in this boat if history repeats itself.  

This is why speculating the exchange rate between the naira and dollar can be a brutally risky exercise compounded by the multiple exchange windows in the country. Buy at N460/$1 today and hold as most non-savvy speculators often do and the multiple forex windows are collapsed into one at N388/$1, as the central bank governor alludes to, things could get very risky. If unifying the exchange unlocks liquidity into the market rate and it holds at N388/$1, there is every likelihood that the parallel market rate will follow suit. Those on the other side of the trade looking to convert their dollars (purchased at N460/$1) into naira will be burned badly.  

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Perhaps a consolation is that so long as Nigeria continues to be import-dependent, it is only a matter of time before the naira depreciates to your buying price. Between 2012 and 2017, the naira has depreciated by 30% compounded annually. You probably only need to wait another 2-3 years and you claw back your losses. But the same cannot be said for anyone with a dollar investment and looking to convert to naira. The burn can be severe. 

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For example, you purchase $1,000 at N460 and invest in an asset that should earn you 10% or $100 in profits. If by the time you liquidate your $1,100 and the exchange rate has strengthened to say N400, your $1100 is now N440,000 compared to the N460,000 it cost you when you purchased at $1,000. The exchange rate loss has basically wiped out your profits and part of your capital.  

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Speculating in forex is hugely rewarding but also very risky. Don’t be fooled to believe it only goes up, things can go down faster than you can imagine. The market will always deliver greater fools. 

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Debt Securities

Covid-19: Companies raise N222 billion in capital during lockdown

Corporate organizations successfully raised at least N222.6 billion from the 24th of March till date.



Covid-19: SBM Intel lists out industries that may be out of business post Coronavirus

The COVID-19 pandemic is unarguably the greatest disruption of recent times. Not only has the world been faced with the existence of a real-life plague, but its impact has also been felt across industries, economies, markets, and more. Yet, corporate organizations successfully raised at least N222.6 billion from the 24th of March till date, covering the toughest periods of the economic impact of the pandemic itself as well as the pandemic-induced lockdown.

Across the world, businesses and companies alike have sought out ways to curb the menace that is the pandemic through the introduction of cost-cutting measures to withstand the storm. However, in the midst of this, an array of companies have also sought out ways to raise finance to ensure their sustainability while also leveraging the relatively cheap opportunity to raise capital.


READ ALSO: NSE promotes gold as viable option in the current investment landscape

Increase in Listing

Data from the Nigerian Stock Exchange (NSE) reveals corporate bodies and the government have raised capital and facilitated secondary market trading activities worth over N1.8 trillion. A number of securities have also been listed on FMDQ. Methods used cut across Rights Issues, private placements, bond listings, etc., and they have been supposedly geared towards supporting working capital needs of the organizations, facilitating business expansion and more.

Listings over the period include; LAPO Microfinance Bank’s bond worth N6.2 Billion, NewGold ETF valued at N7 Billion, UACN Property Development Plc’s N16 Billion Rights Issue, Dangote Cement Plc’s bond worth N100 Billion, FBNQuest Merchant Bank’s Series-1 N5Bn Bond, Flour Mills’ N30 Billion Series 13 & 14 Commercial Paper programme, Primero BRT Securitisation SPV Plc bond worth N16.1Bn Bond, and the Golden Guinea Breweries Plc’s private placement of N1.2 Billion. Also listed are MTN Nigeria Communications plc’s proposed series of N50 billion and Transcorp Hotel’s N10 billion Rights Issue.

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In addition to this, several Government Bonds worth over N797 Billion have also been listed within the past few months. Other companies have also listed capital financial issues include Guinness Nigeria (N5 billion) and United Capital (N20 billion) through commercial papers, also offering low-interest rates to suit the overall trajectory of the economy.

READ MORE: Lafarge Africa hits 5 year low as NSE ends week in the red

The amounts raised

Of the various amounts listed over the same period, Flour Mills has raised N7 billion. FBNQuest Merchant Bank’s 5 billion issuance was 2.3 times oversubscribed but news reports are not clear as to how much was actually received; UACN Property Development raised N16 billion; Dangote Cement was 1.5 times oversubscribed, raising N155 billion; The Golden Guinea Breweries, Primero BRT Securitisation SPV, and NewGold ETF were all 100% subscribed at  N1.2 billion, N16.1 billion, and N7 billion respectively. United Capital raised N5.3 billion in Commercial paper issuance and N10 billion in its Series 1 Bond issuance, and LAPO Microfinance is ongoing. This brings the total amount raised in the period to at least, N222.6 billion.

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The attraction with raising capital in a COVID-19 era

The pandemic has brought about the world’s worst statistics and Nigeria is no exception with rising inflation juxtaposed with lower-than-normal interest rates – and that appears to be the catch. A common phenomenon across these bond listings is that many have been oversubscribed despite COVID-19 headwinds. In other words, with very limited opportunities available across markets, investors have rushed at many of these bonds at their comparatively low coupon rates. Given that these investments are locked at fixed interest rates, companies now have the opportunity to piggyback growth strategies on affordable capital raising. With investors, on the other hand, grappling for opportunities to shield their funds from inflation, the situation appears to take the semblance of a win-win situation.

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