Investors’ divestments cost stock market N1.8tr in six months
The continuous exit of funds from the equities market to another investment instrument, especially the fixed income segment has become a source of worry to capital market stakeholders, as they urged the Federal Government to tackle growing security challenges in Nigeria.
The stakeholders argued that insecurity problem in Nigeria has increased investors’ apathy in the stock market as they prefer to stake their funds in the fixed market where there is some stability.
They maintained that the spate of insecurity in the country is having a multiplier effect on the stock market, adding that it is a major factor responsible for the lull being witnessed in the market currently.
The market capitalisation which stood at N21.515 trillion as at January 5, 2021, when the market reopened for transactions for the year, dropped to N19.725 trillion as at close of trading on yesterday, representing N1.8 trillion loss while the All-Share Index plunged by 3,300.32 points or 9.0 per cent from 41,147.39 to 37,847.07.
The stakeholders insisted that if authorities fail to restore stability in the country, notwithstanding improved macroeconomic indicators, the soured state of the nation would erode the positive attributes of the macroeconomy with a the multiplier effect on the stock market.
Zamfara home to highest number of poor Nigerians – NSR
Zamfara State has the highest number of the poor and vulnerable people in Nigeria, with a record of 3,836,484 people from 825,337 households, according to data from the National Social Registry.
The Communications Manager of the National Social Safety-Net Coordinating Office (NASSCO), Joe Abuku, made the data available through email in response to enquiries made by our correspondent.
NASSCO was established in 2016 through a partnership between the Federal Government and the World Bank to help end extreme poverty and promote shared prosperity.
The NSR was created as a core mandate of NASSCO to keep a reliable database of poor and vulnerable households in Nigeria.
According to the data, the Federal Government has documented 35,267,966 poor and vulnerable Nigerians in its National Social Registry as of May 31, 2021.
Bitcoin falls below $30,000
Flagship cryptocurrency, Bitcoin, just fell below the $30,000 critical support level for the first time since January 2021. According to CoinDesk 20 data, Bitcoin traded at $29,700 a short while ago, bringing the year-to-date gain down to just 3%.
The drop in the price is a result of significant FUD (Fear Uncertainty and Doubt) surrounding China’s war against cryptocurrencies.
Read Also: Over N360bn lost as investors sell Airtel, other Nigerian stocks
FG disobeys own law, flouts workers pension remittance
Seven years after the Federal Government amended the Pension Reform Act, which stipulated that employers should remit 18 per cent of workers’ monthly emoluments into their RSAs, the government is yet to comply with its own law.
The Pension Reform Act promulgated in 2004 had stipulated that workers and employers should contribute 7.5 per cent each of the monthly emoluments into the workers’ RSAs with their respective Pension Fund Administrators.
The amended PRA 2014 mandated all employers under the CPS to raise workers’ pension remittance to 18 per cent.
But while most private-sector employers have complied, the Federal Government had continued to remit the old amount of 15 per cent into the workers’ RSAs seven years after.
The managing director of a Pension Fund Administrator, who spoke to our correspondent on condition of anonymity on Tuesday, confirmed that the Federal Government had not been remitting 18 per cent of all its workers’ salaries as stipulated by the law.
The source said, “Even the 15 per cent is not paid up to date. The Federal Government workers that are paid through the accountant general office are paid regularly, but those that are paid through PenCom are not up to date.
Twitter wants ban lifted, Reps say suspension dictatorial, ill-timed
The micro-blogging and social media platform, Twitter, has written the President, Major General Muhammadu Buhari (retd.), seeking restoration of its operations in Nigeria.
The Special Assistant to the Minister of Information and Culture, Segun Adeyemi, who disclosed this in a statement in Abuja on Tuesday, also said the President had constituted a team to engage with Twitter on the recent suspension of its operations.
These came to fore as members of the House of Representatives on Tuesday described the suspension of Twitter operations as ill-timed and dictatorial.
Recall that the Federal Government had on June 4 through the Minister of Information and Culture, Alhaji Lai Mohammed, suspended Twitter operations on the grounds that the platform was undermining the country’s corporate existence.
The following day, the Attorney General of the Federation and Minister of Justice, Abubakar Malami, SAN, directed the Director of Public Prosecution in his ministry to begin the process of prosecuting violators of the suspension order.
The Federal Government’s action was heavily criticised by groups and nations including the Nigerian Bar Association, the United States, the United Kingdom and Canada.
On Tuesday, the Ministry of Information and Culture, in a statement titled, “Twitter writes President Buhari seeking restoration of access in Nigeria,” said the President had approved negotiations with Twitter.
According to the statement, the negotiations will be led by the Minister of Information and Culture, Mohammed.
Other members of the team are the Attorney General of the Federation and Minister of Justice, Malami; the Minister of Communications and Digital Economy, Isa Pantami; the Minister of Foreign Affairs, Geoffrey Onyeama; the Minister of Works and Housing, Babatunde Fashola; and the Minister of State for Labour and Employment, Festus Keyamo.
