Investor Presentaiton

Macroeconomic Overview (3/3) 1000 800 Before unification 600 400 200 о 03-Jan-23 The Nigerian Capital Market Update PwC In June 2023, the announcement of the unification of exchange rates as well as the removal of fuel subsidy caused a huge spike in exchange rates and fuel prices Exchange rates Year-to-date Average fuel pump price Year-to-date 03-Feb-23 03-Mar-23 03-Apr-23 03-May-23 03-Jun-23 After unification 03-Jul-23 03-Aug-23 Average price per litre 700 617 590 600 538 500 400 306 300 245 213 208 214 200 100 0 ill March January February April May June July August Source: Central Bank of Nigeria Opportunities Amidst Disruptions Amidst the economic disruptions arising from sudden macro-economic reforms in the short run, it is expected that these reforms would yield positive benefits for the economy and the capital market in the long run The liberalisation of the foreign exchange market could potentially attract foreign investments and positive capital flows ■ In addition, the removal of fuel subsidy will provide more fiscal space for the Federal Government and allow for channeling of the funds saved from payment of subsidy into more developmental projects such as infrastructure development. However, policy implementation and accountability in fiscal offices is key to reap the benefits of the subsidy removal ■ Source: National Bureau of Statistics, Trading Economics, PwC research Other macro-economic initiatives of the Federal Government aimed to improve its fiscal position and increase revenue including setting up the Presidential Committee on Fiscal Policy and Tax Reforms to enhance revenue collection efficiency, ensure transparent reporting, and promote the effective utilisation of tax etc. and the planned sale of about 20 state-run companies to raise funds and improve governance in these entities also presents opportunities for the capital market. The Sale of the state-owned entities through the capital market would deepen and grow the market. Furthermore, tax incentives to attract more companies to utilise the capital markets as well as investors to participate in investing in the capital markets could be introduced through the tax reform process August 2023 6

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