Great Macro Trade of 2017: Changing Narratives on Nigerian Equities

How quick narratives change in frontier markets investing. Just three months back, as the Naira weakened below N500.00/US$1.00 in the parallel market and business confidence waned due to foreign currency shortages, macroeconomic risk became the most fundamental short term basis for forecasting Nigerian equities despite cheap valuation of assets.

Basic Principles of Corporate Governance

Issues of corporate governance continue to attract considerable attention nationally and internationally, especially with current global financial volatility. The ongoing global financial ‘tight spot’ has further reinforced the message that governance of organisations should always aim at protecting the interests of all stakeholders, including shareholders/ investors, employees, suppliers, customers, regulators, communities and the public.

Economic Recovery in Full Swing as PMI Improves Further?

During the week, the Central Bank of Nigeria released the Purchasing Managers’ Index (PMI) data for May 2017. The survey which gauges sentiment in the Manufacturing and Non-Manufacturing sectors expectedly came in stronger with the Manufacturing composite index recording an increase for the 2nd consecutive month while the Non-Manufacturing composite index expanded above 50 points for the first time in 17 months as the positive impact of the improvements in FX management continued to boost business activities.

Democracy Day: Acting President’s Speech in Full Text


Dear Nigerians, I bring you good wishes from President Muhammadu Buhari, GCFR, who as we all know is away from the country on medical vacation.

2017 Gross Domestic Product …An Economy on the Path to Recovery

The National Bureau of Statistics released the Q1:2017 GDP report during the week with estimates showing that the economy contracted for the fifth consecutive quarter, albeit at a slower pace than previous quarters. The report showed that economic output contracted 0.5% Y-o-Y in Q1:2017 (better than -0.7% in Q1:2016 and -1.7% in Q4:2016). We present further analysis of the report below.

Pre-MPC Note: Maintaining Status Quo While Consolidating on FX Market Gains

This week Monday and Tuesday, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) will be meeting to review major developments in the global and domestic space since its last meeting. This 3rd meeting in 2017 is coming at a time when the global economy is viewed to be in a sweet spot following respite in global downside risks related to the US elections, Brexit uncertainty and concerns of slower growth in China. The impact of the expectations of expansionary fiscal policy is evident in the bullish trend in US equities as well as a stronger dollar.

Five Richest Nigerians can End Poverty

The Inequality report released by Oxfam International on Wednesday, revealed that the combine wealth of five richest Nigerians, put at $29.9 billion, could end extreme poverty in the country.

The report, entitled ‘’Inequality in Nigeria, Exploring the Drivers” exposed the large and growing gap between the rich and poor in Nigeria, the News Agency of Nigeria reports.

It revealed that the benefits of the nation’s economic growth had been captured by a few wealthy elite at the expense of the ordinary Nigerians.

Equities Flourishing on Developments in the FX Market …But for How Long?

The depressed state of the Nigerian economy over the last two years has been broadly reflected in capital market activities. Foreign investors’ appetite for Nigerian assets has waned significantly on the back of currency crisis which in turn has fundamentally weakened macroeconomic performance, dragged corporate earnings and also impacted on equities market viability. This condition has also lingered into the year 2017 as investors have been dumping equities for less risky investment opportunities in the fixed income market especially given the current relatively high yield environment.

Taxation of Entertainers and Sportsmen in Nigeria –What, How and Where?

It is trite that around the world, entertainers and sportsmen are some of the highest paid individuals. Their sources of income are vast, ranging from performance and appearance fees to endorsement deals, royalties from image rights, tournament participation fees, etc. These incomes are often earned in multiple jurisdictions, which can potentially make accounting for appropriate taxes complicated.