Nigeria’s headline inflation rate surged to 27.33% in October 2023, marking a 0.61% increase from September’s 26.72%.

Year-on-year, this represents a substantial 6.24% rise compared to October 2022, when the inflation rate was at 21.09%.

The impact of such inflation on investments is crucial to understand, as it erodes the purchasing power of money over time.

While investors often concentrate on nominal return’ which is the actual percentage gain or loss on an investment, it is equally crucial to consider real returns, which account for inflation.

Real returns offer a more accurate reflection of the actual increase in purchasing power and are vital in an inflationary situation.

In this context, traditional asset classes, such as bonds and cash equivalents, often face challenges in providing positive real returns, while stocks generally have the potential to outperform inflation and provide positive real returns though individual stock performance can vary widely.

Some stocks may indeed experience negative real returns, especially if their growth doesn’t outpace inflation.

The interplay becomes especially evident in stock investment when considering the total return of stocks, which includes capital gains and dividend yields, about the inflation rate.

In 2022, for example, this played out, showcasing divergent outcomes among stocks. Some recorded positive real returns, indicating growth that outpaced the closing inflation rate of 21.34%, while others grappled with negative real returns

Take, for instance, Guinness Nigeria Plc, which achieved an impressive total return of 87.99% for 2022.

Considering the inflation rate closing at 21.34%, Guinness Plc secured a real return of 54.93%. This indicates that the investment in Guinness Plc not only outpaced the inflation rate but also provided a substantial real return, reflecting strong performance during the period in question.

In contrast, within the penny stock category, AXA Mansard recorded a total return of +4.21% in 2022. However, when factoring in the inflation rate of 21.34%, the real return for AXA Mansard turned negative, settling at -14.12%.

This reminds us that even in a positive total return scenario, the impact of inflation can result in a diminished real return.

In 2023, penny stocks have shown resilience and growth. Over 40 of these stocks have year-to-date gains above the current inflation rate.

Notably, ten standout performers, including CHAM, JAPAULGOLD, FTNCocoa, Ikeja Hotel, OMATEK, Golden Breweries, ABC Transport, THOMASWY, SUNUAssurance, and TRIPPLEG, have not only outpaced inflation but have soared with triple-digit year-to-date gains.

Penny stocks, identified by their modest per-share value often below N5, present an accessible entry into the market, making them an attractive option for investors.

Their affordability, coupled with the potential for significant returns, positions penny stocks as an enticing opportunity for individuals seeking to venture into investing without a substantial upfront commitment.

However, it’s essential to acknowledge the dual nature of penny stocks. Characterized by high volatility, these stocks are prone to substantial drawdowns, making them a blend of high-risk and high-profit instruments.

Consequently, some stock analysts caution against adopting long-term buy-and-hold strategies in the penny stock sector.

The tendency for short-term trades in this domain highlights the need for investors to navigate with care and consider the associated risks in their investment decisions.

This cautionary approach becomes particularly relevant, even when examining the performance of the top ten penny stock performers in 2023 in comparison to their 2022 performance.

In 2022, except for Thomas Watt Nigeria, which recorded a year-to-date gain of +169.44%, the remaining nine top performers for 2023 either remained stagnant or experienced negative year-to-date returns.

Therefore, it becomes crucial for investors to discern opportune moments to capitalize on profits, given the cyclic returns often associated with these stocks.

However, it’s crucial to acknowledge the absence of guarantees in equity investments. At best, such investments may be considered inflation-protected.

Against the backdrop of the current inflation rate of 27.33%, these penny stocks have not only weathered the economic storm but have also surpassed the rising inflation.

Omatek Ventures: +335% YTD

Omatek Ventures, with a 335% share price YtD gain, emerged as the 5th most-performing penny stock on the NGX.

It commands trading liquidity with a trading volume of 393 million shares over the past four months, ranking it as the 17th most traded stock on the NGX.

OMATEK, which operates in the ICT/Computers and Peripherals sector/subsector, is presently the 112th most valuable stock with a market capitalization of NGN 2.56 billion.

However, it has not paid dividends for the past five years, and there are concerns about the share price growth being unsupported by earnings, given the company’s loss after tax recorded over the past five years.

Ikeja Hotels Plc: +349.52% YTD

In 2022, Ikeja Hotels faced a setback, witnessing a decline and losing about 14% of its share price value. However, a turnaround occurred in the current year, as the stock rebounded significantly, gaining around 350%.

In contrast to OMATEK, Ikeja Hotels has a relatively positive dividend history. It has distributed dividends for three out of the last five years.

Additionally, the company displayed financial resilience in the first nine months of 2023, reporting a pre-tax profit of N1.070 billion compared to a pre-tax loss of N72 million in the corresponding period of the previous year.

Despite this recent positive performance, the company’s earnings have not been stable over the last five years, including a reported pre-tax loss of N3.357 billion in 2022.

This inconsistency in earnings might raise questions about the sustainability of the share price rally and whether it is fully supported by underlying fundamentals.

FTN Cocoa Processors: +489.66% YTD

FTN Cocoa Processors is the 22nd most traded stock on the Nigerian Stock Exchange over the past three months with a total volume of 226 million shares.

This suggests significant market activity and investor interest in the stock and could have an impact on the share price.

Higher trading volumes often indicate increased market liquidity and may attract more investors, contributing to price movements.

However, it is better to approach FTN Cocoa’s share price rally with caution, as it appears not to be supported by the company’s financial performance.

The company has consistently reported pre-tax losses over the past five years, and this trend continued into 2023 with a pre-tax loss of N332 million in Q3.

Additionally, FTN Cocoa lacks a stable dividend history, having not paid dividends over the last five years.

Given these factors, investors are advised to carefully consider the risks and potential implications of the share price movement considering the company’s financial record.

Japaul Gold and Ventures Plc: +507.14% YTD

Japaul Gold, formerly known as Japaul Oil and Maritime Services Plc, operates as a Nigerian upstream service company involved in diverse sectors including mining, oil and gas, maritime, dredging, transportation, engineering, and construction services.

Over the past three months, Japaul Gold has experienced significant trading activity, with an impressive volume exceeding 1.3 billion shares.

This places the company as the 6th most traded stock on the Nigerian Stock Exchange (NGX).

Japaul Gold’s financial performance has been a mix of ups and downs. Investors might perceive the company’s 9M 2023 results as a return to its golden era in 2019 when it reported a substantial pre-tax profit of N41 billion.

CHAMS Plc: +827.27% YTD

Chams Plc is Nigeria’s leading provider of integrated identity management and payment transactional systems. CHAMS Plc with a share price YtD gain of 827.27% is ranked first on the NGX in terms of share price YtD performance.

The stock has also seen trading liquidity, with a substantial volume of 707 million shares traded over the past three months.

This suggests a significant level of market activity and investor interest in Chams Plc.

The positive momentum in Chams Plc’s share price may be attributed to investors perceiving its financial performance in 9M 2023 as a welcomed improvement.

The company has recorded pre-tax losses over the last five years; however, in 9M 2023, it reported a pre-tax profit of N255 million.

[Nairametrics]

The Court of Appeal sitting in Abuja, on Sunday, nullified the election of Governor Caleb Mutfwang of Plateau State.

The appellate court, in a unanimous decision by a three-member panel of Justices, held that Mutfwang was not validly nominated and sponsored by the Peoples Democratic Party, PDP, to participate in the gubernatorial contest that held on March 18.

It held that all the votes that were credited to him and the PDP after the election amounted to wasted votes.

Consequently, the appellate court panel, led by Justice Elfrieda Williams-Dawodu, ordered the Independent National Electoral Commission, INEC, to withdraw the Certificate of Return that it earlier issued to Mutfwang of the PDP as winner of the governorship poll.

It ordered that the candidate that got the second majority lawful votes at the election, should be sworn in as governor of the state.

The judgement followed an appeal that was lodged against governor Muftwang’s election by the governorship candidate of the All Progressive Congress, APC, in the state, Mr. Nentawe Goshwe.

INEC had declared that Mutfwang of the PDP won the gubernatorial contest with a total of 525,299 votes, ahead of the APC candidate, Goshwe, who polled 481,370 votes.

Dissatisfied with the outcome of the election, Goshwe, went before the Plateau State Governorship Election Petition Tribunal to challenge it.

He, among other things, contended that the PDP lacked a political structure in the states and was therefore incapable of validly nominating or sponsoring any candidate for the governorship poll.

Besides, he argued that the election of Mutfwang was not conducted in compliance with the Electoral Act, insisting that he did not win the majority of lawful votes cast during the election.

Meanwhile, a three-member panel of the tribunal headed by Justuce R. Irele-Ifijeh, in a unanimous decision, dismissed Goshwe’s petition as lacking in merit.

Not happy with the judgement of the tribunal, Goshwe brought the case before the appellate court, maintaining his ground that the PDP candidate, governor Muftwang, lacked the platform and legal qualification to contest the election.

He further alleged that the election was marred by over-voting and non-compliance with key provisions of the the 2022 Electoral Act.

While adopting his final brief of argument, Goshwe, through his team of lawyers led by Prof. Fakunle Olagoke, SAN, told the court that Mutfwang was not qualified to contest the election by virtue of a lack of valid sponsorship by a political party, contrary to section 177 (C) of the 1999 Constitution, as amended.

However, the governor, through his counsel, Chief Kanu Agabi, SAN, urged the court to dismiss the appeal and uphold the earlier verdict of the tribunal.

Agabi, SAN, argued that the issue of nomination and sponsorship of a candidate for an election was purely an internal affair of a political party which no court had the jurisdiction to wad into.

More so, he contended that the Appellant lacked the locus standi to query a nomination and sponsorship of the candidate of another political party.

Likewise, the counsel for the PDP, Mr. Emeka Etiaba, SAN, urged the court to strike out grounds 1 and 8 of the Appellant’s grounds of appeal, saying they lacked competence.

Etiaba, SAN, argued that governor Mutfwang emerged as gubernatorial flag-bearer of the PDP, through a validly conducted primary election he said was duly monitored by INEC.

Delivering its judgement in the matter on Sunday, the appellate court upheld the appeal and nullified the election of governor Mutfwang.

Other Justices on the panel were; Muhammed Mustapha and Okon Abang.

It will be recalled that the same panel of the appellate court had on November 7, also sacked a Senator and three members of the House of Representatives in the state that won their respective elections on the platform of the PDP.

The panel based its decision on failure of the PDP to fully comply with a court order that was made in 2022, which it said directed the party to conduct congress in the 17 Local Government Areas in the state.

It held that an evidence the PDP produced to prove that it complied with the order, showed that 12 LGAs were excluded in a purported congress it held to select its candidates for the 2023 general elections.

The appellate court, therefore, held that though the lawmakers won their respective seats during the National Assembly election that held on February 25, all the scores that were credited them, amounted to wasted votes as they were not valid candidates.

[Vanguard]

A humanitarian Oyinade Samuel-Eluwole has advocated the establishment of a ministry for Men Affairs to tackle issues relating to men, particularly, the menace of suicide among male folks.

In a speech to commemorate the 2023 International Men’s Day in Nigeria, the founder Elizabethan Humanitarian Life Foundation reiterated that it was high time the federal government set up the ministry to rescue men.

Mrs Samuel-Oyewole said, ” Suicide is a global problem but it is worrisome to have Nigeria as one epicentre of suicide in the world and the majority of reported cases are males.

The foundation decried the frightening suicide statistics, adding that reports indicated that suicide incidents in Nigeria are 80.6% males, and out of this, 51.8% are married while 33.6% are students.

Getting appropriate data, according to her, is a challenge in Nigeria but we have to tackle this menace collectively to avoid losing our men to suicide.

“The major causes are not far-fetched: they are mainly financial lack and challenges, societal expectations, and marital conflicts as precipitating factors. You can see the need to allow males to express themselves and speak. This intervention and medium is what the Elizabethan Humanitarian Foundation stands for.”

She outlined far-reaching approaches aimed at tackling the menace, starting from the grassroots, to society and the world at large.

She said with the grassroots model, the foundation intends to ”talk and listen to their hearts, encourage them, and give them hope. Be a bridge between them and individuals, organisations, and governmental agencies”

” We intend to work with the Ministry of Education, Information and Strategy, Health, Interior, Youth and Sports, Justice, and Humanitarian Affairs

”Part of the experiences we gained at the outreach is the data we generated from our survey of the differentials between the male gender and female gender in terms of the level of social needs of the male gender compared to the female gender. We were also able to underscore the fundamental challenges the males face from the point of grassroots knowledge beyond some esoteric assertions of the issues that are not based on facts.

“We are still collating the figures and as soon as we finish with the data collation and analysis we will share them with the public. But, in the interim, we are aware based on our on-the-ground assessment that we are losing lots of our youths, especially the males, to drugs.

“We also noticed that the lack of financial capabilities of parents has made them let their children go to the streets. By our estimation, based on our interaction with the youths on the streets where we visited, eight out of ten of the youths are willing to leave the streets, go back to school, and are ready to learn trades, handwork, or technical jobs.

”A high percentage of them opened up to us that they were ready to move out of the streets if the opportunity comes. A lot of them clamour for free education because many are out of school, mostly because of school fees – even as low as five thousand naira only.

Sharing her experience on the level of acceptance from the society on the rescue mission, Mrs Samuel-Oluwole said” the acceptance has been very encouraging from all quarters. It is a known fact that the male gender needs help, and they are prepared to talk about it at this rate.

The acceptance level is expected because parents are losing their children not only to the streets but a lot who are still with their parents are already disconnected. While wives are losing their homes. So the overall picture is like at last, help has come. People move so fast to ask questions on what to expect and are ready to express themselves.

“Like every other venture, you don’t expect a new initiative to flow or flourish without initial teething problems and challenges. But, despite all these, we are still trudging on. We embarked on a self-sponsored opinion survey of males in our society and came to the understanding of what the male gender in our society goes through – from cradle to adulthood. We realised that the challenges are enormous.

“We also realised that to accomplish our goal we will need to partner and to collaborate with other bodies and organisations who are in similar advocacy terrain such as we do. They may not necessarily focus on the male gender as we do, but they are obviously fighting for the well-being of people in our society.

Super Eagles captain, Ahmed Musa has insisted that some Nigeria supporters are interested in betting not the team.

According to Musa, most Nigeria fans don’t support the Super Eagles because they are bettors.

The former Leicester City star spoke in Lagos on Friday during a ceremony to unveil the team’s ‘Let’s Do It Again’ mantra in their bid to win a fourth AFCON title in Ivory Coast next year. 

“I love this country and I know whenever we lose, I have a family back home, I know the pressure they face when we lose. When we are on the pitch, they say ‘na him mother be this, go insult me (this is his mother, insult her). So, I know I must put in everything I have so that people don’t insult my family,” Musa said. 

“Nowadays, with the players we have in the team, none of them stay in Nigeria. They don’t know the anger that most of us, who have families in Nigeria, face when the team loses.

“He [Amaju Pinnick] did his best so that we qualified for the World Cup. We lost a lot of money and that is why most of our players right now are facing challenges because we failed to qualify for the [2022] World Cup. So, we as players lost so much money.”

The 31-year-old added, “No matter where you are playing you always go down into your corner to think when you lose money. Nowadays I understand what football is and the anger of the fans. Most of us don’t support Super Eagles because we like them, they will say, ‘hey dem don cut my ticket, give me my money’ (hey they’ve spoiled my ticket, refund my money). You will see on most of our DMs ‘you cut my ticket, you no sabi play’ (you spoiled my ticket, you don’t know how to play), its because they are bettors. Before, you will see the love and passion for the team but nowadays, betting has spoiled everything.”