Photograph — Market Digest Nigeria

Following the reinstatement of Value-Added Tax (VAT) collection on stock market transactions in Nigeria, reports have shown that investors could pay as much as N2.5 billion yearly in additional costs on trading.

The five-year VAT exemption on stock exchange transactions expired on July 24, 2019. Thus, investors and dealing members of the capital market began to pay the tax for transactions carried out on the Nigerian Stock Exchange (NSE) from July 25. The charges are applicable to commissions earned on the traded value of shares; commissions payable to the Security and Exchange Commission (SEC); and commissions payable to the Central Securities Clearing System (CSCS). Read more here.

Below is the Ventures Africa Weekly Economic Index, for the week ending 2nd of August, 2019. This economic index gives you a glimpse into recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:

Nigerian Stock Exchange

Data released by the Nigerian Stock Exchange (NSE), as of 2nd August 2019, showed that the NSE All-Share Index depreciated by 1.038 percent to close the week at 27,630.46. While Market Capitalization went down 1.032 percent to close at N13.464 trillion. Similarly, all other indices finished lower with the exception of NSE ASeM and NSE Industrial Goods Indices which appreciated by 0.17 percent and 0.98 percent respectively.

Top five price gainers and decliners in the week under review:

Top five price gainers

Unity Bank Plc.

C&I Leasing Plc.

Vitafoam Nig Plc.

Julius Berger Nig. Plc. 

Trans-nationwide Express Plc.

Top five price decliners

Eterna Plc.

Nigerian Breweries Plc.

NCR (Nigeria) Plc.

University Press Plc. 

Total Nigeria Plc.

How did the Naira fare?

Nigeria's-Inflation-rate
Picture credit:  PIUS UTOMI EKPEI/AFP/Getty Images

The Naira maintained its value against the dollar last week as it closed at 361 Naira per dollar on the 2nd of August 2019, same as the rate it had recorded a week before.

How did the price of oil fare?

Brent oil prices closed out the week on the 2nd of August 2019 at $60.26 per barrel, down from around $62.30 recorded a week ago. Oil prices plunged by over eight percent after the United States (U.S.) President Donald Trump announced another round of tariffs on China. The news pushed WTI below $55 per barrel and Brent down to $61 on Thursday. The new tariff was announced at a poor time for the oil market, which was already heading south due to the disappointing result from the U.S. Federal Reserve. 

As expected, the Central Bank cut interest rates but Fed Chairman Jerome Powell essentially said that the apex bank was not embarking upon an extended period of monetary easing. Also, a recent wave of oil reports all predicted a big supply surplus in 2020, which is the result of limp demand growth at a time of surging supply.

Elsewhere on Ventures

Triangle arrow