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Profit taking: NSE market capitalisation sheds N136bn in a day



NSE’s indices drop further by 0.13%

…As SON says Calibration of products, services will boost local, int’l trade***

Bearish trend persisted on the Nigerian Stock Exchange (NSE) with crucial market indices dropping further by 1.22 per cent, thereby forcing the market capitalisation to dip below the N11 trillion mark.

The decline was as a result of sustained profit taking embarked by investors due to month-end activities.

Specifically, the All Share Index (ASI) shed 361.32 points, representing a dip of 1.22 per cent to close at 29,159.74 against 29,521.06 posted on Monday.

Similarly, the market capitalisation shed N136 billion to close at N10.958 trillion in contrast with N11.094 trillion achieved on Monday.

Market performance was influenced by price depreciation in medium and large capitalised stocks, among which are, Nestle Nigeria, Dangote Cement, Stanbic IBTC Holdings, Cement Company of Northern Nigeria (CCNN) and NASCON.

Analysts at Cordros Capital Limited noted that “in the absence of a positive catalyst, we guide investors to trade cautiously in the short term.

”However, stable macro-economic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term,” they said.

Analysts at APT Securities and Funds Limited said that “the NSE-ASI extends negative outlook amidst good fundamentals. However, positive first quarter result had an ample effect on company’s stock prices.

“Therefore, there is still room for more up days. Investors are thereby encouraged to take a medium to long term position in fundamentally justifiable stocks.”

However, market breadth was positive with 26 gainers against 19 losers.

Japaul Oil & Maritime Services, UACN Property Development Company and Caverton Offshore Support Group recorded the highest price gain of 10 per cent, each to close at 33k, N1.65 and N2.97 per share, respectively.

Forte Oil followed with a gain of 9.97 per cent, to close at N35.30, while Dangote Flour Mills rose by 9.94 per cent to close at N18.80, per share.

On the other hand, Cutix led the losers’ chart by 9.76 per cent, to close at N1.85, per share.

Goldlink Insurance followed with a decline of 9.09 per cent to close at 40k, while CCNN declined by 8.79 per cent to close at N14, per share.

Unity Bank declined by 5.88 per cent to close at 80k, while NASCON Allied Industries was down by 4.74 per cent to close at N18.10, per share.

Also, the total volume traded went up by 91.51 per cent with an exchange of 543.92 million shares, valued at N8.2 billion exchanged in 4,682 deals.

This was against the 290.19 million shares worth N2.16 billion transacted in 4,302 deals on Monday.

CCNN was the toast of investors, accounting for 132.33 million shares valued at N1.86 billion.

FBN Holdings followed with 68.78 million shares worth N497.25 million, while Unilever Nigeria sold 50.47 million shares valued at N1.56 billion.

Guaranty Trust Bank traded 41.44 million shares valued at N1.38 billion, while Dangote Flour transacted 37.88 million shares worth N712.1 million.

Market reopens May 2 following public holiday declared by the Federal Government on May 1, to mark Worker’s Day.

Meanwhile, the Standards Organisation of Nigeria (SON) said on Tuesday that the calibration of products and services would boost local and international trade meant to facilitate diversification of the economy.

The Director-General of SON, Mr Osita Aboloma, said this in Enugu at a Stakeholders’ Forum on Calibration Services.

Calibration in measurement technology and metrology is the comparison of measurement values delivered by a device under test with those of a calibration standard of known accuracy.

Such a standard could be another measurement device of known accuracy, a device generating the quantity to be measured such as a voltage, sound, tone, or a physical artefact, such as a metre ruler.

The theme of the forum was `The Role of Calibration in Trade and Business Facilitation and Growth’.

Aboloma, represented by the Director of National Metrology Institute (NMI), Enugu, Dr Bede Obayi, said that Nigerians and the Nigeria economy would benefit a lot by bracing calibration, which is adding value for money on every product or service in the country.

“Adopting the best practices of calibration with NMI will help the country to conserve hard earned foreign exchange hitherto paid to other countries’ metrology institutes.

“It will be a confidence-booster to exporters due to reliability of the products.

“It will engender safe environment by providing accuracy in measurements and improve the health of the citizenry.

“It will strength other components of National Quality Infrastructure through Standardisation, Accreditation, Certification and Testing,’’ he said.

The SON boss lauded the contributions of development partners – UNIDO, Germany government, National Institute of Standards, Egypt – for supply of equipment, staff capacity building, calibration of standards among other collaborative assistance.

In a lecture entitled “Effective Calibration Services in Metrology on Trade, Business and Economic Growth in Nigeria’’ Mr Kayode Olagunju, said that the Holy Books encouraged right and just measurement and treatment of all at all times.

Olagunju, a metrology expert with SON, said that calibration or right measurement was necessary for all one do in life and ensures that the right standards was maintained to build business confidence.

“Calibration should be taken seriously by all as we are moving towards a global business and trade environment that requires not just right quantity but also quality in all we offer as products and services,” he said.

Earlier in a goodwill message, Dr D.V.C. Obi, Board Member representing Manufacturers Association of Nigeria (MAN) in National Automotive Design and Development Council, said the association would continue to partner with SON to ensure that its NMI calibration efforts succeeded.

The General Officer Commanding 82 Division of Nigerian Army, Maj.-Gen. Abubakar Maikobi, represented by Brig.-Gen. Sylvester Oloyede, said the issue of right and accurate calibration of goods and services would enhance the current military-civilian relationship.

Mr Samuel Bot, the Assistant Comptroller of Customs in-charge of Operations in Enugu/Anambra/Ebonyi Command, said that his office would work with NMI to ensure that proper calibration was done on goods so that importers would pay right duties to Federal Government.

Dr. Frank Ugwu, Chairman of Udenu Local Government Area, said that ensuring right calibration would build trust and long lasting goodwill in businesses as well as ensure confidence at all time.

Ugwu urged SON to carry out massive awareness campaign on calibration as well as follow it up with some enforcement in order to ensure that all Nigerians complied to better the business environment in the country


Troops Destroy 51 Illegal Refining Sites, Recover Stolen Crude Oil – DHQ



….Destroy 7 dugout pits, 25 boats, 47 storage tanks, five vehicles, one outboard engine, others

The Defence Headquarters says  troops of Operation Delta Safe have  destroyed 51 illegal oil refining sites and recovered stolen crude oil and refined products in the Niger Delta in the last one week.

The Director of Defence Media Operations, Maj.-Gen. Edward Buba, disclosed  in a statement on Friday in Abuja.

Buba said the troops also apprehended 58 perpetrators of oil theft and denied them of  estimated sum of N668.7 million

He said the troops destroyed seven dugout pits, 25 boats, 47 storage tanks, five vehicles, 141 cooking ovens, one pumping machine, one outboard engine, one tricycle, one speedboat and one tugboat.

According to him, troops recovered 267,700 litres of stolen crude oil, 567,700 litres of illegally refined AGO and 5,000 litres of DPK.

“Troops has maintained momentum against oil theft and arrested persons involved in oil theft in Bonny and Ikpoba Local Government Areas of Rivers and Edo States respectively.

“Troops also arrested suspected armed robbers and foiled illegal bunkering activities in Oshimili South and Ukwa West of Delta and Abia States respectively,” he said.

In the South East, Buba said  troops of Operation UDO KA arrested 15 suspected criminals and repelled attacks by IPOB/ESN criminals in Anambra, Abia and Imo States.

He said the troops conducted raids and rescued kidnapped hostages in Ishielu and Igbo Eze North Local Government Areas of Ebonyi and Enugu States respectively.

He said the troops neutralised three criminals, rescued five kidnapped hostages and recovered 14 rounds of 7.62mm NATO ammo.

In the South West, Buba said  troops of Operation AWATSE foiled armed robbery attacks in Orelope and Olorunsogo Local Government Areas of Oyo State and arrested a gunrunner in Obafemi Owode Local Government Area of Ogun.

According to him, troops rescued 15 kidnapped hostages and recovered two vehicles.

“All recovered items, arrested suspects and rescued hostages were handed over to the relevant authority for further action,” he added.

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NEPZA Boss Says Nation’s Free Trade Zones Not Really `Free’



The Nigeria Export Processing Zones Authority (NEPZA) says the country’s Free Trade Zones are business anchorages that have for decades been used to generate revenues for the Federal Government.

Dr Olufemi Ogunyemi, the Managing Director of NEPZA, said this in a statement by the authority’s
Head of Corporate Communications, Martins Odeh, on Monday in Abuja, stressing that the the widely held notion that the scheme is a `free meal ticket’ for investors and not a means for the government to generate revenue is incorrect.

Ogunyemi said this public statement was essential to clarify the misunderstanding by various individuals and entities, in and out of government, on the nature of the scheme.

He reiterated the authority’s commitment to enhancing public knowledge of the principal reason for the country’s adoption of the scheme by the NEPZA Act 63 of 1992.

“The Free Trade Zones are not hot spots for revenue generation. Instead, they exist to support socioeconomic development.

“These include but are not limited to industrialisation, infrastructure development, employment generation, skills acquisition, foreign exchange earnings, and Foreign Direct Investments(FDI) inflows,” Ogunyemi said.

The managing director said the NEPZA Act provided exemption from all federal, state, and local government taxes, rates, levies, and charges for FZE, of which duty and VAT were part.

“However, goods and services exported into Nigeria attract duty, which includes VAT and other charges.

“In addition, NEPZA collects over 20 types of revenues, ranging from 500,000 dollars-Declaration fees, 60,000 dollars for Operation License (OPL) Renewal Fees between three and five years.

“There is also the 100-300 dollar Examination and Documentation fees per transaction, which occurs daily.

“There are other periodic revenues derived from vehicle registration and visas, among others.

“The operations within the free trade zones are not free in the context of the word,” he said.

Ogunyemi said the global business space had contracted significantly, adding that to win a sizable space would require the ingenuity of the government to either expand or maintain the promised incentives.

“These incentives will encourage more multinational corporations and local investors to leverage on the scheme, which has a cumulative investment valued at 30 billion dollars.

“The scheme has caused an influx of FDIs; it has also brought advanced technologies, managerial expertise, and access to global markets.

“For instance, the 52 FTZs with 612 enterprises have and will continue to facilitate the creation of numerous direct and indirect jobs, currently estimated to be within the region of 170,000,” he said.

Ogunyemi said an adjustment in title and introduction of current global business practices would significantly advance the scheme, increasing forward and backward linkages.

“This is with a more significant market offered by the Africa Continental Free Trade Agreement (AfCTA).

“We have commenced negotiations across the board to ensure that the NEPZA Act is amended to give room for adjusting the scheme’s title from `Free Trade Zones to Special Economic Zones respectively.

“This will open up the system for the benefit of all citizens,” he said.

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2023 CLPA: Policy Cohesion Imperative For Implementation Of AfCFTA Agreements, Others



Some policy experts and stakeholders have called for policy cohesion across Africa for the successful implementation of multilateral policy decisions.

They spoke on Wednesday during one of the plenaries at the 2023 Conference on Land Policy in Africa (CLPA), held in Addis Ababa.

The CLPA, the fifth in the series, is organised by the tripartite consortium consisting of the African Union Commission (AUC), the African Development Bank (AfDB), and the United Nations Economic Commission for Africa (ECA).

The 2023 edition has the theme, ‘Year of AfCFTA: Acceleration of the African Continental Free Trade Area Implementation’.

Dr Medhat El-Helepi (ECA), chaired the plenary with the sub-theme: ‘Land Governance, Regional Integration, and Intra-Africa Trade: Opportunities and Challenges’.

Panelists at the plenary included Dr Stephen Karingi, Director, Regional Integration and Trade, ECA; Mr Tsotetsi Makong, Head of Capacity Building and Technical Assistance, AfCFTA Secretariat.

Others were Mr Kebur Ghenna, CEO, of the Pan African Chamber of Commerce and Industry (PACCI) and Ms Eileen Wakesho, Director of Community Land Protection at Namati, Kenya.

The event also attracted various stakeholders, including traditional leaders, Civil Society Organisations, and policy decision-makers.

Makong expressed worries over the reluctance of some participants to openly discuss some matters, pleading ‘no go areas of domestic affairs’.

He, however, noted that the issues of land were within the limit of domestic regulations, adding that tenure land security was the solution that would allow intra-African investment that is still low in Africa.

Makong pointed out that the success of the investment protocol under the AfCFTA would depend on countries’ domestic laws that should be in line with the AfCFTA.

“There are guidelines on land reforms that need to be turned into regulations within the domestic systems.

“Policy coherence has to be at the heart of what we do. This can be achieved by engaging everyone including women and youth at the grassroots level.

“Also, you cannot be talking of AfCFTA as of it is just about Ministers of Trade, Economy or Investment. The idea is a totality of the entire governance structure. This is very important,” he said.

Speakers also noted that inclusive land governance was one of the key pillars to enhance Africa’s drive to improve intra-African trade, food security, and sustainable food systems.

They said an inclusive governance system would allow stakeholders to create transparency, subsidiarity, inclusiveness, prior informed participation, and social acceptance by affected communities in land-based initiatives beyond their borders.

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