₦airaland Forum

danijesus:
"Nigeria is not poor, Nigeria is poorly governed" Peter obi

Peter Obi is among those that poorly governed Nigeria.

PlushyRealtor:
You are absolutely right — investors do not ignore fundamentals in the long run. If company fundamentals are weak and future earnings outlook is poor, sustained demand will drop and prices will eventually fall. The stock market cannot permanently rise on bad fundamentals.
However, what we are seeing with the NGX crossing ₦100 trillion market cap is not a single-factor story. It is driven by three layers of demand, not just company performance:
1. Short- to Medium-Term Capital Preservation
In a high-inflation and currency-devaluation environment, investors sometimes buy stocks not because companies are excellent, but because:
Cash is losing value rapidly
Fixed-income yields are negative in real terms
Stocks become a store of value, even with modest growth prospects
So demand can rise even when fundamentals are only average, as long as stocks are seen as the least bad option.
2. Uneven Fundamentals (Not All Companies Are Weak)
While some companies have weak fundamentals, many large-cap stocks driving market cap growth do not:
Banks are reporting strong interest income due to high rates
Telecoms, cement, and energy companies are posting revenue growth driven by inflation and FX revaluation
FX-exposed companies are benefiting from naira devaluation
So the market cap expansion is concentrated, not broad-based.
3. Price Can Rise Before Fundamentals Improve
Markets are forward-looking. Prices move on:
Expectations
Liquidity
Policy changes
FX reforms
If investors believe fundamentals will improve in 6–18 months, prices can rise today, even if current numbers look weak.
Addressing the Land Analogy Directly
Your land example is 100% correct — and that’s exactly how the stock market works too.
If the area becomes unsafe or undesirable → land prices fall
If owners are desperate sellers and buyers disappear → prices crash
You may not even recover your initial capital
Same with stocks:
If fundamentals deteriorate and
There is no liquidity or confidence
→ prices fall, market cap shrinks, and investors lose money.
So Why Did NGX Market Cap Still Cross ₦100 Trillion?
Because:
Inflation inflated nominal prices
FX devaluation re-priced assets
Liquidity rotated into equities
A few heavy-weight stocks moved sharply
It does not mean:
All companies are healthy
Prices will keep rising forever
Fundamentals no longer matter
Bottom Line (One-Sentence Answer)
Prices can rise temporarily despite weak fundamentals due to liquidity, inflation, and expectations, but in the long run—just like bad-location land—poor fundamentals will always drag prices down.

Very thoughtful. Regards.

NwaliE01:
It's Criminal. I have been living abroad (Australia) for over 4 years now. They haven't deducted a cent from my account for any charge. Zero charge all year round.

No fear my battery, light no dey go off

Nigeria is getting very close to h3ll.

Relax and don't harass us with where you live. If you want us to do a comparative study of tax in Australia and Nigeria then bring the entire tax regime of Australia and put it side by side with Nigeria's. If there is zero charge on your savings account in Australia and there's on Nigeria there could be other taxes in Australia that are not applied in Nigeria. Don't pick one and begin to praise where you live and call Nigeria hell.

Btw what is the tax to GDP rate in Australia?

Truthissupreme:
you are sick in the head o

Do you know what #70 Is to a poor man account, una true true dey underate the poverty level apc has taken Nigeria

There are still Nigerians that scrap every penny in their account

This is not the point. These charges have been there before now. Why dishonestly make it look like it came through the new tax law.

Richtaiwo:
That clown’s claim that he transferred N100k and only N63k was credited to his other account is a barefaced lie. Where is the evidence, where is the proof to back up such a ridiculous story?

Are you sure that he's not owing the bank?

Namaster:
Why are ID1OTS spreading FAKE news and causing panic for ordinary Nigerians.

“I was charged almost ₦100 for tax. Nigeria, which way? This tax is too much o. That means ₦100,000 tax fee will be very, very big. This is getting serious"

Stamp Duty is a FIXED charge of #50.
Whether you transfer #10,000 or #10 MILLION.

The remaining part of the #87 is likely just bank charges plus VAT on bank charges which would also remain the SAME whether you transfer #10,000 or #10 MILLION.

This is EXACTLY the reality on ground BEFORE the New Tax Laws were introduced.

It's just that instead of the #50 Stamp Duty to be deducted from the Receiver's account, it's now deducted from the Sender's account so that the receiver can get the FULL amount of the transaction.

Meanwhile, this one is already here spreading FAKE NEWS and panic.

This Single Mother of 2 (NOT surprised) is too DMUB.

And the INTELLECTUALLY-DEFICIENT people on Twitter are already lapping up the NONSENSE like it's spring water.

NOBODY WILL DEDUCT TAX FROM YOUR BANK TRANSACTIONS!

Another one said he transferred #100K and got #63K.

My brother just ignore Nigerians. They have left price of rice and dollar exchange rate. It's now propaganda about tax. Just read and ignore.

Successlane:
Tinubu really continues from where Buhari stops.

When e reach your turn, go appoint from another tribe, na you know

This appointment is not a federal appointment. NLNG is a corporate entity control by a board. It's not solely owned by FGN. Even if this man is from sambisa forest are you not waow by his record. This is why Nigeria finds it difficult to develop. Everything is tribe and religion.

Very gbamsomely. All eyes are on PBAT. All attention are on FGN. Poor PBAT. A man that is thinking more of the future of Nigeria and risking his popularity just to lay a solid foundation for the economy of Nigeria. He is doing the dirty job that others avoided and he's being called names.

Personal Income Tax is strictly for your states. When Oti begins to build roads they will hail him but will hate the man that made it possible. Is it not crazy that the PITA we are using now was enacted in 1993. A whole 32 years. What were the past presidents thinking. Let's face facts neither Obi nor Atiku can ever put their minds in these areas but these are the foundations of great economies.

PlushyRealtor:
What does “NGX Market Cap crosses ₦100 trillion” mean?
NGX = Nigerian Exchange (the Nigerian stock market)
Market Capitalization (Market Cap) = the total value of all companies listed on the stock exchange
So when people say:
“NGX Market Cap has crossed ₦100 trillion”
It means:
👉 If you add up the value of every company listed on the Nigerian stock market, the total is now over ₦100 trillion.
How is market cap calculated? (Very simple)
For each company:
Share price × Total number of shares = Company value
Then:
All company values combined = NGX Market Cap
Why is this important?
It shows the stock market is growing
Companies’ share prices have gone up
Or new big companies joined the market
It reflects inflation & naira devaluation
Because the naira has weakened, asset prices (shares) look higher in naira terms
So part of this growth is nominal, not pure wealth creation
Investors are moving money into stocks
People prefer stocks to cash because cash is losing value
Big investors (local & foreign) are hedging against inflation
Does it mean Nigerians are suddenly richer?
❌ Not necessarily
The economy is still under pressure
Many people are struggling
A lot of the increase is:
Inflation-driven
Currency-driven
Concentrated in a few big companies (banks, cement, telecoms)
Simple analogy
Imagine you own land bought for ₦5 million in 2015.
Today, because of inflation, it’s worth ₦30 million.
👉 You didn’t add new land
👉 The value just adjusted to inflation
That’s similar to what’s happening in the stock market.

Just one question: if the fundamentals of the companies are not looking good, will the investors put their money. You mentioned price, hence on the exchange price is determined by factors of demand and supply if there is low demand due to poor future forecast will price go up.

Again on your land analogy: N5 million in 2015. If the location has gotten so bad that land owners around there are offloading and few people are willing to buy you will be lucky to recoup your initial investment today.

You are selling it #30 million today because the location has relatively developed and you have more people willing to buy because the location commands more appeal relative to 2015.

tunjijones:
Please what does this mean to Nigerians?

It means that the Nigerian economy according to experts that invest their money is headed north. It means that the fundamentals of the companies that produce goods and services in Nigeria are looking good. There are indicators that are used to judge an economy. Expect a boom from now on subject to.........

The old foundation that held the Nigerian economy bound are gradually being dismantled. Can you imagine that the Personal Income Tax Act PITA we are using in 2025 was enacted 1993. And we have been having presidents since then. A law made 32 years ago when tax laws are reviewed regularly to take care of changes in the economy. CGTA and CTA laws are colonial laws. Past presidents took the easy route.

Don't call me you guys usual names I pay people wages. I'm not interested in party or who the president is but I write as someone that has economic and financial training.

Gbadebo19:
You are a dünce

I have consistently said that nairaland must find a way to eliminate insults and usage of gutter language. Otherwise a lot of the respectable people that come here will wave this forum bye. Things that most people can't say directly to some people are said here because this is a faceless forum.

Imagine the above insult. I'm very very sure that face-to-face this Gbadebo guy wouldn't say this to me.

Gbadebo19:
So, where are the dead civilians. All I see are destroyed russian garbage called Air Defence systems.

Trump will not show you the dead civilians. He will suppress it to look good. Most Republican presidents are murderers.

Truths9ja:
In a month's time there will be a safe transition. Trump will only maintain peace and order in Venezuela

Fat lie. Just watch. They will milk that nation dry. Those jubilating now will regret. They will install a puppet. We thought that it was drug. It's now oil. The devil can't give you without collecting more.

givedemwotowoto:
You go cry tire. Fix your country, you refuse and continue to destroy it with corruption and in-fighting, and squander the resources, but when external pressure comes due to your failures, you start crying

What is the essence of such invasion if not for the good of USA when the country becomes worse of after the invasion.

If you can't help them solve their problems then why are you invading if not for the good of USA.

seunmsg:
Exactly how Libyans all over the world were said to have celebrated the day Gadaffi was killed. We’ve seen this script play over and over again.

Very apt my brother. The ignorant will just be celebrating and hailing this bully. It has never ended in favour of the country. History will repeat itself.

Riversides2003:
Nothing Dey happen no shaking, he has been captured. He was warned several times in the activities of these drug lords but he turned a deaf ear, he will learn the hard way. All Hail the President of the world.

Watch how Venezuela will end up. Anywhere America do this the country has never been the same. Bookmark 🔖 this.

Brendaniel:
That is why you should elect good leaders that will make your country great and powerful not leaders like Tinubu that is busy destroying Nigeria, you think if china were having leaders like Tinubu they will be anywhere near being a world power today?

If Chinese development had come today America wouldn't have allowed it. They don't want any country to rise. China bluffed America back then. America would have balkanized them if it had happened now.

Meanwhile little denial of old comfort to lay good foundation for our growth and Nigerians are shouting. Chinese were using bicycles when you were using cars because of free petrodollar. They produced and used inferior goods. They came here operated factories and some of them lived in factory premises like slaves and we called them kora. We were living false life because of petrodollar. Today how market.

BlackViper:
Oseni Rufai Shares Data On Rent For 1-bedroom In Lagos




Source

750k for one room for ajegunle. Fat lie

Sirmwill:
No
It would affect the poor more than the rich
Manufacturers, CEOs etc, they would be forced to increase prices of their produced commodities and services, even importers
This would drastically increase prices of things in the coming days

No sir.
Essential goods and services are not subject to vat. FYI there is vat in and vat out.
Before now:
A producer of essential goods selling price is made up of cost (which includes vat in) plus margin. No vat on the finished goods because it's vat exempt.

NOW
Selling price = cost ( excluding vat on raw material and associated costs) plus margin.

If you produce essential goods, the vat that you pay for your input material is refundable. This should bring down your cost of production. And of course you are not expected to charge vat on your finished goods.

KEY CHALLENGE
Nigerian producers will claim the vat refund but will not use it to reduce their cost of production. They will pretend that it is the pre January 2026 that is still in operation.

DeepSight:
+
Oh and it's BAT that can be trusted with savings. When both BAT and PMB have astronomically increased our total debt.

Hahahahahahahahaha!

No reply. No time to waste. Aren't defending anybody but laying economic facts.

DeepSight:
+
Why then did you claim Jonathan left things in 2012.

Secondly you said he had run the economy around when it is on record that we had our highest GDP then, which began to fall drastically after he left office and most drastically in the last two years. From biggest economy in Africa we have fallen to fourth.

Who said that Jonathan left office in 2012?
Anyway you are not the one that I'm discussing with. If you want to join, I will relay the questions to you and ask you to counter with economic proofs. In economics, finance and accounting we talk with figures and not going round and round with words. Verifiable figures don't lie.

DeepSight:
+
Its amazing how you dont know the basic dates and you are talking.

Which dates are you talking about?
OBJ regime ended 2007
Yaradua/Jonathan ended 2011
Jonathan sole regime ended 2015.

Kukutente23:
You can't get common dates of events right yet you're asking for "concrete facts and figures"?
Jonathan left in 2015 not 2012

You are confusing yourself and running away from the main issue. I said that Jonathan ran the economy aground by 2015. You said that the subsidy protest took place in 2012. I said ok if your problem is 2012 and not 2015. I still insist with economic proofs that relative to what he inherited and what the economy was whether in 2012 or 2015 he ran the economy aground. He can't be trusted with savings from subsidy removal.

Counter my claim with economic proofs. That's all.

Kukutente23:
The subsidy removal protest was in 2012 not 2015
Stop revising history

Majority of states couldn't pay salaries in 2016 not 2015

No problem. I repeat show concrete economic proofs that Jonathan didn't run the economy aground judging from what he inherited and what he left it in 2012.

Majority of the states couldn't pay salaries running into months due to what they inherited by May 2025.

Speak like an economist and not politician. Bring up concrete facts and figures. You are quick to call someone zombie. You are waiting for me to roll out economic indices and then you begin to debunk like a politician.

Kukutente23:
The economy was run aground in 2012?
Zombies sha

Relative to what he inherited from Yaradua by 2015 the economy was ran aground. Counter this statement with economic facts.

One fact: majority of state governments couldn't pay salaries. Buhari had to lend them money.

Ofunaofu:
The money Tinubu is giving to APC decampees N250 billion to governors, N50 billion to senators, etc. is that not the subsidy-removal savings he is sharing as if it were his personal money?

Provide proof or I will assume that what you are saying is politics.

hatchy:
Taiwo talk reasonably for once.

Rigging 2027 election may throw the country into crises. As the year passes the citizens become more aware of their immediate environment. 2027 is surely not going to be like 2023. The people are wiser and more informed now than before

Show me a better candidate amongst the likely contenders. Give clear and verifiable evidence.

hatchy:
Not that they see anything good. It's the inducement by Tinubu that's attracting them. They are given 10 Billion each, for state governor to pocket privately to defect.

Secondly, Tinubu have also used money to induce crises in almost all the notable opposition parties. He manufacture these problems using factions, and where there is none, he'll crate one. They go as far as recalling past party office holders whose tenure have elapsed to come back and lay claims to the position, thereby creating internal crises.

Nigeria is on a very dangerous path to political crises caused by the greed of one man who’ll rather watch the country burn down than lose election.

Show your workings. Do you have proof?

ambale:
How do you expect the governors to be up and doing, when the president wants to be emperor general of the country??

He's not allowing them function well with his one party policy, so every lazy governor runs under his umbrella and they are free to do whatever they like

Very lame excuse. In all your conversations here how many times have you raised the issue of the performance of your governor?

You don't even know the size and provision of your state budget. Everything is Tinubu. That makes the governors happy. No focus on them.

Maj196:
How do people evade tax? Asking for a friend

You earn income and either refuse to declare it or you under declare your income.

adioolayi:
"What it meant was that the federal government was not subsidising just Nigeria, but the whole of West Africa, which we could not afford to do."



Very dark old days!

I would have given President Tinubu 100% for being bold about subsidy removal, but, I won't .. because he fought against it because of Politics , during Jonathan's administration.

Those protests delayed subsidy removal and Nigeria's economic recovery.

Had it been President Jonathan was allowed to remove it, maybe, by now, we would have finished ensuring the bitting effects of it on common man.

Jonathan didn't have the guts to manage subsidy removal. A president that inherited stable economy and rich purse and blew all without provision of infrastructure. How can you trust him with savings from subsidy removal.

Besides Tinubu did what any other opposition would have done. He didn't put gun on Jonathan's head to stop him. Didn't the opposition oppose Tinubu's subsidy removal just as they are opposing the tax reforms. He stuck to his decision because he knows where he's going. That's the hallmark of a strong leader.

femi4:
What has changed? Tinubu removed it, yet keeps borrowing

The money used for subsidy were even borrowed. Remember that we were selling our crude upfront.

Tinubu might decide not to borrow. The effect will be lower deficit budget which will affect infrastructural development. It means that you will develop as your pocket can afford. To reduce borrowing and continue to increase your stock of infrastructure you need to earn more money through taxation.