•FTSE Russell delays Nigeria’s Frontier Market status   over T+1 concerns

By Peter Egwuatu

The Nigerian stock market ended June on a bearish note, with investors losing a whopping N13.3 trillion in the value of their investments listed on the Nigerian Exchange Limited (NGX) on a month-on-month (MoM) basis, the highest monthly loss recorded in the first six months of 2026.

Despite the sharp decline in June, equity investors recorded a gain of N44.8 trillion in the first half of 2026 (H1’26), reflecting improved capital gains.

Market analysts attributed the bearish performance in June to sustained profit-taking in blue-chip and fundamentally sound stocks, which overshadowed bargain hunting and extended the market’s recent corrective trend.

They noted that investors remained cautious after the impressive rally recorded in May, opting to lock in gains across key sectors amid continued portfolio rebalancing ahead of the half-year earnings season.

Analysis of month-on-month trading showed that the NGX market capitalisation, which represents the total value of equities listed on the Exchange, closed the last trading day of June at N147.217 trillion, down from N160.508 trillion in May 2026, indicating massive sell-offs by investors.

Similarly, the NGX All-Share Index (ASI), another major market performance indicator that measures the cumulative price movement of listed equities, declined by 8.4 per cent to close at 229,419.18 points, compared with 250,385.47 points recorded in May 2026.

The renewed wave of profit-taking came despite the country’s improving macroeconomic indicators and expectations that listed companies with strong fundamentals would deliver resilient half-year results. Investors appeared to adopt a more selective approach, rotating funds into defensive stocks while taking profits in equities that had posted significant capital appreciation since the beginning of the year.

However, in H1’26, the NGX market capitalisation rose by N47.841 trillion to close at N147.217 trillion, from N99.376 trillion recorded at the end of trading in December 2025. Similarly, the NGX ASI surged by 47.4 per cent to close at 229,419.18 points, from 155,613.03 points recorded at the end of December 2025.

Meanwhile, FTSE Russell, a global provider of stock market indices and data analytics, yesterday stated that it had placed Nigeria’s planned reclassification to Frontier Market status under further review.

The global index provider disclosed the development in a statement, citing concerns over the country’s transition to a T+1 settlement cycle, which allows trades to settle one business day after execution. According to the statement, the pause in Nigeria’s planned status upgrade would allow FTSE Russell to examine the implications of the transition for foreign investors.

“Further to the FTSE Equity Country Classification March 2026 Interim Announcement, which confirmed the reclassification of Nigeria from Unclassified to Frontier Market status from September 2026, FTSE Russell announces that the reclassification of Nigeria is under further review.

“A requirement to prefund equity trades is deemed a negative for the ‘Settlement Cycle (DvP)’ criterion, which is one of the five core FTSE Quality of Markets criteria required for attaining Frontier Market status within the FTSE Equity Country Classification scheme.

“Consequently, the reclassification of Nigeria is under further review to assess the implications of the transition to a T+1 settlement cycle for international institutional investors.”

FTSE Russell said it would provide an update on Nigeria’s potential reclassification to Frontier Market status by the end of August 2026.

The Federal Competition and Consumer Protection Commission (FCCPC) has warned oil marketers against exploiting consumers, saying the current retail prices of petrol do not reflect the sharp decline in global crude oil prices.

In a statement issued on Sunday, the Commission said its ongoing surveillance of the downstream petroleum sector had uncovered indications of consumer exploitation, as recent reductions in petrol prices by refiners, depot operators and marketers remain insignificant despite the sustained fall in crude oil prices.

According to the FCCPC, global crude oil prices have dropped to about 73 dollars per barrel following the ceasefire between the United States and Iran and the reopening of the Strait of Hormuz. The agency noted that crude prices had climbed to about 120 dollars per barrel at the height of tensions in the Middle East between April and May, prompting a swift increase in petrol pump prices across Nigeria.

The Commission observed that while crude oil prices have now returned to levels recorded in February, retail fuel prices have remained relatively high.

It recalled that petrol sold for between ₦800 and ₦900 per litre in February, but rose sharply to between ₦1,350 and ₦1,500 per litre during the period of heightened geopolitical tensions. Despite the subsequent drop in crude oil prices, petrol is still being sold at an average of about ₦1,200 per litre, while some local refiners have fixed ex-depot prices between ₦1,025 and ₦1,075 per litre.

The Commission acknowledged that domestic fuel prices are influenced by several factors, including refining costs, foreign exchange fluctuations, logistics, financing and distribution expenses. However, it maintained that consumers should benefit from lower crude oil prices through competitive market pricing.

Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said although the Commission does not regulate petrol prices in Nigeria’s deregulated downstream petroleum sector, it has a statutory responsibility to ensure consumers are protected from unfair and exploitative practices.

“To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market. Our responsibility under the Federal Competition and Consumer Protection Act, 2018, is to promote competitive markets, prevent anti-competitive conduct and protect consumers from unfair, deceptive and exploitative business practices,” Bello said.

He questioned why marketers often respond immediately by increasing pump prices whenever crude oil prices rise, yet delay passing on the benefits to consumers when prices fall.

“We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is curious that it is taking forever for consumers to benefit significantly when crude prices fall. Competitive markets must work fairly in both directions,” he added.

Bello warned that deregulation does not absolve businesses of the responsibility to compete fairly or respect consumer rights.

According to him, the Commission will investigate and sanction any company found engaging in anti-competitive conduct, consumer exploitation or any practice that violates the Federal Competition and Consumer Protection Act.

“Where credible evidence indicates conduct that undermines competition, exploits consumers or otherwise contravenes the Federal Competition and Consumer Protection Act, the Commission will investigate and take appropriate enforcement action,” he said.

He also urged Nigerians to continue reporting suspected price manipulation, anti-competitive practices and other unfair market behaviour through the Commission’s official complaint channels.

The FCCPC’s warning comes days after the Dangote Refinery reduced its ex-depot petrol price from ₦1,175 to ₦1,125 per litre, following the continued decline in international crude oil prices. Brent crude, the global oil benchmark, recently fell to about 72.97 dollars per barrel, its lowest level since February.

By Godwin Oritse

The Association of Nigerian Licensed Customs Agents (ANLCA) has called on the Federal Government (FG) to suspend the implementation of the Green Tax Policy, scheduled to take off from July 1st, 2026,  citing inadequate stakeholder engagement by the implementing agency, the Nigeria Customs Service (NCS).

The association argued that key stakeholders, particularly licensed customs agents and importers, who will be directly affected by the policy were not sufficiently sensitised or consulted before its rollout.

In a statement signed by ANLCA President, Emenike Nwokeoji, yesterday, the association expressed concern that a fiscal policy with such far-reaching implications for import duty, cargo valuation, contractual obligations, shipping arrangements and business planning was communicated to only a section of the critical trading community in Lagos barely 72 hours before its proposed implementation.

“Even more astonishing was the extremely late invitation extended to stakeholders for the consultation meeting. Such an approach is insensitive, procedurally defective and inconsistent with the principles of fairness, inclusiveness, stakeholder engagement and due consultation that should ordinarily guide the implementation of major public policies.

“Fiscal policies of this magnitude ought to be preceded by adequate notice, extensive consultations with all relevant stakeholders across the country, comprehensive sensitisation and sufficient transitional periods to ensure seamless compliance.

Anything short of this undermines confidence in government policies, exposes legitimate businesses to avoidable financial losses and ultimately erodes the confidence of both local and foreign investors in Nigeria’s trade environment.”

The group also raised concern about the decision to subject shipments already in transit to Nigeria to the new levy.

“This amounts to a retrospective fiscal burden on importers and licensed customs agents who had already entered into binding commercial contracts based on the existing tariff regime. Such a development will inevitably result in severe financial losses and unnecessary disputes within the international trading community.

“Furthermore, the stakeholders’ meeting failed to adequately address critical implementation issues. For instance, there was no clear methodology provided for determining engine capacities for the purpose of Green Tax assessment.

“This ambiguity is capable of creating confusion, inconsistent assessments, avoidable disputes and ultimately leaving the trading public at the discretion of individual assessment officers.

“ANLCA remains committed to constructive engagement with the Federal Government and the Nigeria Customs Service in pursuit of policies that promote legitimate trade while achieving national objectives,” he said.

The association also made it clear that it is not challenging the authority of the Federal Government to formulate or implement fiscal policies. It, however, demanded the immediate suspension or postponement of the implementation of the Green Tax Policy until adequate stakeholder consultations have been conducted nationwide.