The Nation Newspaper

Author: The Nation

  • ‘Flouting of national building code cause of building collapse’

    ‘Flouting of national building code cause of building collapse’

    Chief Executive Officer, Adrian Homes Limited, Toyin Amuzu is a building construction expert, astute estate developer and one of the top tier realtors in the country. In this interview with Ibrahim Yusuf, Amuzu shares insights on the recurring problem of building collapse, offering suggestions on the way forward and other sundry issues affecting the built and construction landscape. Excerpts:

    What would you say is responsible for the rising case of building collapse in the country?

    Building collapse has been a major challenge in Nigeria, leading to massive economic and human loss due to wanton destruction of properties and lives. According to the Building Collapse Prevention Guild, BCPG, Nigeria recorded at least 62 catastrophes in 2022, causing 84 deaths and injuring 113 persons. Lagos had 20 cases, while Kano and Anambra recorded five building accidents each, and Delta and Jigawa four each. Also, 135 cases were reported between 2007 and 2013. Ghana’s capital, Accra, in contrast, had only eight building collapses between February, 2000 and April, 2016. We have witnessed a series of building collapse cases in Nigeria, a major collapse occurred in Abuja on Wednesday night, August 23, 2023 leaving two persons dead and 37 rescued, another two- storey building collapsed on Thursday, May 30 this year at Idunganran Street, on Lagos Island.

    Talking about the spate of recurrence, with my years of experience in building construction and drawing from my previous research, I have observed that high-rise residential buildings, old and substandard buildings make up most of the collapses in Nigeria. The reasons for such incidents basically include the use of substandard materials and unqualified or unskilled builders.

    In other words, the reasons a building collapses can be due to poor structural design, poor compliance with specifications, poor quality control, faulty construction methodology, foundation failure, and corruption. Natural disasters are also identified as a cause of building collapse.

    Other factors include non-adherence to the National Building Code, old or weak structure, illegal conversion of existing structures and ineffective monitoring by regulatory agencies among other reasons.

    What is the national building code in Nigeria?

    The National Building Code was signed into law in 2007 by the civilian government of Chief Olusegun Obasanjo after a series of building collapses in Nigeria especially in Lagos. The National Building Code is a guide Adrian Homes holds high in our day-to-day construction activities. The code provides necessary guides on general specifications for materials and quality control to ensure that the materials meet minimum standards. It provides minimum standards to safeguard life and property and further guarantees public health and safety for different building types. There are building regulations which warn against building on waterways or under high tension power lines; wants builders to observe stipulated setbacks and airspace; preaches the use of professionals in the building industry for your construction and obtaining the necessary permits from the Ministry of Physical Planning and Urban Development or other government concerns.

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    Is the national building code the only guide in building construction in Nigeria and how important is it?

    No, there are other codes like the State building Codes, Local building codes, international building codes, Green building codes and others. However, the national building code is a thorough collection of guidelines for the Nigerian construction sector, to guarantee that buildings are built in accordance with specific criteria and norms as approved by the Federal Government.

    The National Building Code covers a number of aspects relating to the construction and development of buildings, such as site preparation, design, supplies, and construction methods.

    It also offers instructions for the installation of services including plumbing, ventilation, and electricity. The purpose of the code is to guarantee that structures are secure, environmentally friendly, and generally habitable by their occupants. All types of real estate are subject to the national building code, including residential, commercial, industrial, and institutional buildings. In Nigeria, the national building code is a requirement for all construction projects, and failing to abide by the code can lead to fines, penalties, and legal action. To keep the National Building Code current and useful, it is reviewed and modified frequently.

    The national building code is crucial for ensuring that buildings in Nigeria are built to high standards and that their occupants are safe and comfortable. If you are involved in the construction and development of properties, If you are an architect, developer, engineer, estate surveyor/valuer, or town planner, this is something you need to fully understand, as it has a lot of importance in the real estate world. In simple terms, building codes are regulations established by the government and other regulatory bodies to ensure that buildings are safe and habitable for their occupants, thus it is so important.

    So, with all these regulations why then do we still have people flouting these rules?

    I must state that the Lagos State government is trying its best to ensure strict monitoring and compliance, in fact, I give it to them. However, people still flout rules due to ignorance, blatant resistance or the involvement of quacks. Having built many befitting accommodation in Adrian Homes for the comfort of people, quality control with the use of qualified professionals and standard materials among other needs, are at the core of our development. Ordinarily, you can’t expect people that are not professional, to do good jobs, they would definitely compromise standards and cut corners. That is part of the corruption I spoke about earlier on.

    In another angle, the late Myles Munroe once said, “When the purpose (of a thing) is unknown, abuse is inevitable.” This truism aptly captures the challenge faced by many government institutions as they try to implement certain policies and programmes but meet with a minimal level of compliance or blatant resistance, either due to ignorance or the deliberate disregard of such by the people whom the policies are designed to benefit. Government ministries, departments and agencies in charge of formulating policies, therefore, still have to periodically inform and educate the public of the raison d’etre for their activities so that members of the public can comply with stipulated rules and regulations from a position of knowledge. Public sensitisation is key in this regard.

    Has Adrian Homes experienced such collapse before?

    To the glory of God, there has been no case of building collapse because we never compromised standards. At Adrian Homes we prioritise quality construction, meticulous attention to detail, and a focus on delivering exceptional finishes. The company embraces eco-friendly building methods, energy-efficient solutions, and cutting-edge technologies to create sustainable and future-proof spaces. Adrian Homes can boast of a team of seasoned professionals, skilled artisans, and expert project managers who ensure efficient and smooth project delivery. In the industry, Adrian Homes has become a force to reckon with as we hold relevant certifications, demonstrating our commitment to quality, safety, and industry best practices. Adrian Homes differentiates itself in the market, attracting discerning clients seeking high-quality construction services.

    When a building collapses, what effect or consequences would it have on the society?

    The loss are so many, there is loss of lives and the economic loss, which include loss of property, Loss of annual income/capital investment, Loss of materials, Bankruptcy of the investor/developer, Decrease in the contributions of real estate sector to the nation’s GDP, Loss of investment, Increase in the cost of maintenance, shortage in the supply of real estate facilities.

    So how do we curb incidences of building collapse in Nigeria?

    There is the need for the Federal Government to strengthen the National Building Code, put in place a Construction Industry Commission, enhance training and retraining of building practitioners and put in place strict adherence to using quality building materials according to specifications to ensure building safety, stability and sustainability especially now that prices of building materials are on the high side.

    Given the disastrous state of building development in Nigeria in the past four years, the federal government must consider testing the integrity of buildings. The starting point is to recognise that high-rise structures are not at the highest risk of collapse. This could be due to structural inadequacies and professional ineptitude. Urgent and frequent integrity tests of all high-rise buildings, especially those built many years ago are in particular need of testing. A structural integrity test confirms the stability of buildings and determines whether they are fit for people to live in. Government must also ensure that buildings that are not structurally habitable are strengthened. Government must ensure that only acceptable high quality building materials either locally produced or imported gets to the market. It must identify and prosecute landowners, investors, consultants, architects, quantity surveyors and engineers involved in previous cases of collapse. It must also publish all permits received during those projects and all documents related to safety testing.

    This will show its commitment to putting an end to the loss of lives and property. It will also enable a thorough investigation into the causes of building collapses and ensure there are consequences for failures. Agencies and ministries of government responsible for monitoring the construction process must be upgraded. A total overhaul and restructuring of all the agencies and ministries responsible for monitoring the construction process is urgently required. Improved tactics and logistics in monitoring construction could also be deployed. The government must ensure that builders, engineers, and architects receive proper training and certification. Government must also collaborate with professional bodies and make sure that individuals or building developers consult certified professionals. By the time Building Codes and Regulations are strengthened and construction standards are adhered to strictly and regularly updated to reflect best practices, with inspection, monitoring, public awareness, training of practitioners and enforcement the job of combating building collapse would have been done

  • Farm seeks policy coherence to boost agriculture

    Farm seeks policy coherence to boost agriculture

    Amo Farm Sieberer Hatchery Limited has emphasised the critical need for policy coherence to enhance market access and build resilient food systems in Nigeria.

    The company’s Group Managing Director, Dr. Ayoola Oduntan, stated this at the recently concluded Agriconnect Summit 2024, held at the Landmark Event Center, Victoria Island, Lagos.

    The summit, themed “Bridging the Divide: Fostering Collaboration and Innovation for a Sustainable Agricultural Future,” underscored the urgent need for concerted efforts to address the challenges facing the agriculture industry and to unlock its full potential.

    Dr. Oduntan, during a panel discussion titled ‘From Farm to Table: Enhancing Market Access and Building Resilient Food Systems,’ addressed the challenge of inconsistent government policies hindering the advancement of agribusiness in Nigeria. He highlighted the perpetual cycle of new policies introduced by different ministers of agriculture without adequate consideration for the continuity of previous initiatives.

    “We have all the right ideas to take agribusiness to where it should be, but a major challenge has been the implementation of policies. In my over 30 years of experience in the agricultural sector, I have witnessed numerous policy shifts with each new Minister of Agriculture. This inconsistency hampers the progress of our agribusiness,” Dr. Oduntan said.

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    Proposing a solution to this, the Amo Farm GMD stressed the necessity for a central coordinating agency to ensure policy coherence, allocate resources, and facilitate effective implementation.

    “We need a central coordinating agency to provide direction, allocate resources, and ensure the sustained implementation of agricultural policies,” Dr. Oduntan said.

    Former President Olusegun Obasanjo, who chaired the summit, urged the federal government to prioritize food security by offering single-digit interest loans to farmers.

    “Any country that offers more than a single-digit loan to people in agribusiness is not helping farmers,” he emphasised.

    As the former president stated, “We must recognize food as a national security need and provide the necessary financial support to farmers.”

    As Nigeria strives to enhance market access and build resilient food systems, Amo Farm Sieberer Hatchery Limited said it remained committed to driving positive change and fostering collaboration within the agricultural ecosystem.

  • ‘How Nigeria can leverage BRICS for economic growth’

    ‘How Nigeria can leverage BRICS for economic growth’

    Hopes of a faster growth of the Nigerian economy was played up at the recent Brazil, Russia, India, China, and South Africa (BRICS) Business Breakfast meeting held in Nairobi, Kenya. According to experts and stakeholders at the event held in conjunction with the African Development Bank (AfDB) group, Nigeria is in a prime position to take advantage of the enormous potential offered by the BRICS alliance, especially as the focus aligns seamlessly with the President Bola Tinubu’s “Renewed Hope Agenda,” which is aimed at fostering economic growth, social development, and infrastructural advancements.

    The experts agreed that Nigeria- Africa’s largest economy, stands at a promising juncture to broaden its investment horizons through strategic alliances with the BRICS.

    According to the Observatory of Economic Complexity (OEC)- an online data visualisation and distribution platform focused on the geography and dynamics of economic activities, over the last 27 years the exports of Nigeria to Brazil have increased at an annualised rate of 5.22 per cent from $508 million in 1995 to $2 billion in 2022. In 2022, Brazil’s export to Nigeria stood at $932 million.

    Similarly, the OEC data showed that over the past five years, the exports of Nigeria to Russia have increased at an annualised rate of 41 percent- from $8.23m in 2017 to $45.8m in 2022. In 2022, Nigeria did not export any services to Russia, while in 2022, Russia exported $670m to Nigeria.

    Yet, from the available statistics from the OEC, India is the largest trading partner of Nigeria and Nigeria is India’s largest trading partner in Africa. The total bilateral trade between India and Nigeria during the year 2021-22 registered $14.95 billion, as against $8.81 billion during the year 2020-21.

    For China, the Consul-General, Consulate General of People’s Republic of China, Ms. Yan Yuqing, noted that in recent years, the economic and trade cooperation between the Nigeria and China has been deepening, with China-Nigeria bilateral trade reached $22.56 billion in 2023.

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    Still, records showed that Nigeria exported $1.72 billion to South Africa in 2022, while South Africa exported $447 million to Nigeria over the same period.

    This is why experts and stakeholders are convinced that with proper coordination and cooperation with BRICS, the Nigerian economy will be the better for it. At AU summit held in March, in Ethiopia, President Bola Tinubu and his Brazilian counterpart, President Luiz Inácio Lula da Silva, agreed to reinvigorate bilateral ties between both countries. For the country, it was particularly a cheery news when President Luiz Inácio Lula da Silva expressed his unwavering commitment to revitalizing the trade relations between Nigeria and Brazil, regretting the noticeable decline in bilateral trade volume from over $10 billion to $1.6 billion in recent years.

    Stressing the importance of reinvigorating bilateral trade, President Lula da Silva underscored his determination to fortify ties with Nigeria and explore opportunities for mutual economic growth and collaboration. In response, President Bola Tinubu reiterated Nigeria’s vast economic potential and the government’s proactive measures to create an enabling environment for businesses to flourish. He reaffirmed his administration’s unwavering commitment to dismantling barriers to investment and fostering sustainable economic development through strategic investments in critical sectors such as healthcare, education, and agriculture.

    This is why the BRICS Breakfast meeting is said to hold greater prospects for Nigeria, especially in the area of addressing trade barriers, enhancing knowledge exchange, bridging infrastructure gaps, and promoting sustainable development, all of which are crucial for Nigeria’s growth trajectory.

    AfDB’s Secretary-General, Prof. Vincent Nmehielle, encapsulated the potential of the alliance, stating, “The BRICS Alliance, together with the new member additions, provides immense trade and investment opportunities for the African continent. These countries are emerging economies with a growing middle class and a substantial consumer market; expanding into these markets will lead to growth opportunities for the continent.”

    Nmehielle emphasised tackling barriers such as bilateral investment agreements can improve exports and import performance adding, “This strategic move can enhance Nigeria’s economic resilience and integration into the global market.”

    The transformation of education and skills development is another crucial area where Nigeria can benefit from BRICS. With the growing influence of artificial intelligence (AI), there is a pressing need for knowledge exchange.

    According to him, the importance of transforming education and skills development which interestingly aligns with Nigeria’s objectives to enhance its educational sector and equip its workforce with future-ready skills, crucial for sustainable economic growth.

    As Africa continues to battle with infrastructural and investment deficit, estimated at between $70 to $100 billion annually, BRICS Plus, experts say, offers a strategic avenue to bridge this gap.

    Nmehielle suggested that collaboration between the New Development Bank, AfDB, and UN could be instrumental in jointly identifying, preparing, and co-financing projects of mutual interest. This collaborative approach can help Nigeria address its infrastructure needs, fostering economic development and connectivity.

    The energy challenge is a major concern for African countries especially now that there is a major transition to renewable and cleaner energy. This is why Nmehielle is convinced that African countries need to partner with BRICS Plus to achieve a just and equitable energy transition. And for Nigeria, this partnership can facilitate the adoption of sustainable energy practices, crucial for long-term environmental and economic health.

    The Chairperson of the South African Chapter of the BRICS Business Council, Busi Mabuza, highlighted the platform that BRICS Plus provides for exploring and capitalising on available opportunities.

    “The BRICS Plus countries are leading emerging economies with a growing middle class and a substantial consumer market. Expanding into these markets can lead to growth opportunities for our continent,” Mabuza stated.

    Similarly, the Acting Chief Marketing Officer of Brand South Africa, Mpumi Mabuza, noted that South Africa’s growing green economy serves as a model considering the significant foreign direct investment (FDI) and job creation brought to the country.

    An economist, Shomuyiwa Akintade, noted that Nigeria can leverage these insights provided at the BRICS summit to tap into the vast consumer markets within the BRICS nations, thereby driving her economic growth.

    “Nigeria, with its rich natural resources and burgeoning tech sector, can attract similar investments by focusing on green economy initiatives and sustainable practices,” Akintade said.

    He argued that the BRICS Business Breakfast which also touched on discussions on leveraging the African Continental Free Trade Area (AfCFTA) and the challenges and opportunities of attracting private capital, offers opportunities and valuable insights into creating a more conducive environment for foreign and domestic investments. “By aligning with BRICS strategies, Nigeria can enhance its trade relationships and investment appeal,” he said.

  • Fed Govt ’ll support local manufacturers, minister pledges

    Fed Govt ’ll support local manufacturers, minister pledges

    The Federal Government will prioritise local manufacturers in its policy direction and procurement as part of efforrts to develop domestic industrial capacity and create sustainable economic growth.

    Minister of Power,c, during a tour of Coleman’s factories in Arepo and Sagamu, Ogun State, at the weekend, said the government was ready to collaborate with local manufacturers such as Coleman Wires and Cables Industries Limited.

    Speaking with newsmen after the tour, the minister emphasised Coleman’s capacity to support the power sector in all segments. Adelabu said: “A lot of investment has gone in here, and I am impressed that they are in a position to support the power sector in all segments, from generation to transmission and distribution. The government is ready to support local manufacturers by improving local content and government patronage.

    The minister stressed that the government needs to support companies like Coleman and make their operations easier. “We should also support them in terms of patronage and allow them to contribute to power sector projects in Nigeria,” he added.

    Adelabu also stated that the government would support local manufacturers in sourcing foreign exchange for the import content in their production, which is one of the significant challenges in manufacturing in Nigeria.

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    “Many of them struggle to source foreign exchange for their importation. I am pledging that we will engage the Central Bank of Nigeria (CBN) to find ways of supporting local manufacturers so that we can compete globally.’’

    Responding, Coleman Managing Director George Onafowokan, emphasised that collaboration with the government would benefit the company and encourage further investment in the country.

    “We see the expansion of our power plant creating capacity in the country. Coleman is here for Nigeria to deliver the country’s goals, making local content possible. When we achieve this, we create value and export to other countries. This collaboration with the government will be an advantage to us and encourage us to invest more,” he said.

    Earlier, while addressing newsmen, the Coleman MD called on the government to focus more on solving power transmission problems with the support of local manufacturers. Onafowokan, who is also the Chairman of the Manufacturers Association of Nigeria in Ogun State, urged the Federal Government to localise solutions to power transmission.

    According to him, this should be done by developing the capacities of indigenous manufacturers and creating a more enabling, incentivised business environment. “In the drive for solutions to power transmission in the country, there must be a move that is seen from a local perspective, deliberately pushing for local industries to grow,” he stated.

    Onafowokan, while noting that Nigeria can be a processing country with her large population, however, said it is important to balance fiscal and monetary policies to address foreign exchange volatility and create an enabling environment.

    His words: “Enablers for the transition to a processing country must allow the import of raw materials easily and the export of finished products, focusing on value addition for every sector to grow.

    “We must also push domestic direct investment, incentivize them, and address counterfeiting to drive Nigeria’s non-oil exports.”

  • FBNQuest Trustees champions estate planning

    FBNQuest Trustees champions estate planning

    FBNQuest Trustees, a subsidiary of FBN Holdings, and a leading provider of trust solutions to individuals, corporate entities, and government institutions, recently held its first Estate Planning Clinic in Ibadan, Oyo State. The event aimed to provide participants with a thorough understanding of the essential steps and actions required to preserve and manage their properties and legacies for future generations.

    The event, with the theme: “Preserving Legacies Across Generations,” offered valuable insights on the importance of Estate Planning and intergenerational wealth transfer to the residents of Ibadan and its surrounding areas.

    Industry experts from FBNQuest Trustees shared insights and provided attendees with in-depth knowledge on the benefits of having a well-planned estate. Participants learned how to prevent costly court battles, plan for unforeseen incapacitation, and ensure that their loved ones are well taken care of. This event equipped attendees with the knowledge and tools necessary to make informed decisions about their legacy and ensure that their wishes are respected for generations to come.

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    In his message, the Managing Director/CEO of FBNQuest Trustees, Adekunle Awojobi, represented by the Head of Business Development at FBNQuest Trustees, Babajide Fetuga, underscored the importance of a well-drafted estate plan. He highlighted how FBNQuest Trustees, with their expertise and experience, can guide potential clients in this crucial process. This ensures that assets are properly allocated to the right individuals at the right time, thereby preventing future disputes or legal issues among family members.

    He shared examples of unfortunate situations that have occurred in families of prominent Nigerians who lacked estate plans. He also emphasised the importance of seeking guidance from professionals at FBNQuest Trustees to establish a comprehensive blueprint for estate planning that benefits future generations. Understanding the actual value of your legacy is crucial to preserving it. Your legacy extends far beyond material possessions, encompassing our positive impact on those around us and the values we uphold,” he added.

  • EFCC, AMCON team up for assets recovery

    EFCC, AMCON team up for assets recovery

    Economic and Financial Crimes Commission (EFCC) and Asset Management Corporation of Nigeria (AMCON) have made fresh moves to strengthen their working relationship towards improved asset recoveries and management.

    Head, Media & Publicity  at  EFCC, Dele Oyewale, disclosed the plan  when AMCON’s management, led by its  Managing Director, Gbenga Alade paid a courtesy visit to the Executive Chairman of the EFCC, Ola Olukoyede at the Commission’s corporate headquarters.

    While acknowledging the support of the EFCC over the years, Alade stated that his Corporation craved for more support from the Commission.

    “I really want to appreciate what you have done for AMCON, but we want more and that is why we are here. AMCON cannot achieve anything without the EFCC. We cannot achieve our objectives without the EFCC, and this is the reason for our strategic alliance”, he said.

    He asked for the Commission’s enhanced support for AMCON’s recovery drives in aviation, oil and gas and the power sectors. “We have some knotty issues particularly with the airlines which are of strategic importance to Nigeria. We have a lot of oil and gas cases too. The power sector is another one. We have many people that are owing. The airlines, the oil sector and the power sector are of strategic importance to the economy of Nigeria. We want to concentrate on these areas. The amount of money we are talking about here are in millions of dollars and billions of naira. If we can concentrate on these sectors and crack the issues, it will help the economy of Nigeria. This is why we have come, we need more support from you.”, he said.

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    Responding, Olukoyede assured him of the support and collaboration of the Commission, stating that an enhanced working relationship between the two organisations was necessary in the interest of the country.

    “AMCON and EFCC have always been partners. That is the line we will continue to toe in the EFCC. We will review issues and continue to work in the interest of this nation. Over the years, I am not sure there is any agency that supported AMCON like the EFCC. That is why we dedicated a Desk to AMCON. So far, the relationship has been mutually beneficial. You have supported us in our investigations, and we have also supported you in carrying out your mandate. We must realise that we must work in the interest of Nigerians first,” he said.

    While reiterating that the EFCC under his leadership will always do right things, Olukoyede reaffirmed that the new anti-corruption fight is tailored towards stimulation and reflation of the economy.

     “I want to promise you that we will always do the right thing. I am going to use the instrumentality of the anti-corruption fight to drive and stimulate the economy and that is where EFCC and AMCON need to come together and collaborate. Where there is a crime, we identify and investigate and do what we are supposed to do. We have had instances where we recovered money and properties for AMCON”,  he said.

    The AMCON MD/CEO was at the EFCC in the company of Mr Adeshola Lamidi, the Executive Director of Resolution/Enforcement, and Lucky Adaghe, the Executive Director of Operations. Other members of the team include Mr Kamilu Omokide, the Group Head of Asset Management, Mr Albert Nwanozie, Head of Legal Department, Mr Jude Nwauzor, Head of Corporate Communications Department, and Mrs Irene Inalegwu of the Inter-Governmental Department of AMCON.

  • Stock Exchange to drive market penetration with USSD short code

    Stock Exchange to drive market penetration with USSD short code

    Investors can access a vast bouquet of information about the Nigerian stock market and connect with stockbrokers through the use of Unstructured Supplementary Service Data (USSD) short code.

    Head, Trading and Products, Nigerian Exchange (NGX), Abimbola Babalola, at the weekend said the NGX USSD platform is a technology that allows mobile phone users to access a variety of services by dialing a short code,  *5474# on their phone keypad.

    He said the NGX USSD platform is a new and innovative way for investors to access real-time stock market information and connect with a stockbroker.

     According to him, the product is designed to boost financial inclusion and market participation in Nigeria by providing investors easy access to price information of listed companies and connecting them with trading license holders.

    He further said that “what we are doing at the exchange is to put investors at the driver’s seat of their investment. Gone are those days when you buy securities and you go to sleep, or you have to start reading the newspaper or wait for news to know what is happening to the stocks. So, this time around, you have a device that you can use to monitor your stock at any time.”

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    Babalola added that investors’ education is key, and this is what the products will address.

     Babalola spoke at a virtual Investor Education Series organised by the NGX in collaboration with Meristem. The theme of the event was: ‘Unlocking Potential: Leveraging USSD For Enhanced Capital Market Access’.

    Head, Investment Advisory at Meristem Stockbrokers Limited, Temitope Oludimu said that Meristem Securities has been in the industry for over two decades, growing her clients’ wealth and enhancing their financial wellbeing.

    She noted that the Stockbrokers subsidiary of the Group provides easy access to online brokerage accounts allowing clients to monitor trades in real-time via MeriTrade and the first online stock trading platform in Nigeria commenced in 2014.

    Oludimu added that “MeriTrade allows users to buy and sell stocks online through the Nigerian Stock Exchange from the comfort of their home, office, car and even on the go.

     “The platform defines stock broking in an entirely different language and creates a world class experience, bringing your broker (electronically) to the comfort of your home and office.”

    The panel session speaking on the theme for the event emphasized the importance of investors’ education in the capital market.

    Afeez Ramoni, Head, Data and Digital Innovation, NGX stated that the public can now conveniently receive market information and commence account opening processes through their mobile phones by dialing *5474#. This marks a significant stride in NGX’s commitment to democratizing access to investment opportunities and promoting retail investors participation through digital channels for accessing the capital market.

    He anticipates that the USSD short code *5474# will enhance market accessibility and contribute significantly to the broader financial inclusion landscape in Nigeria.

    Martha Ibrahim of NGX Group said that financial inclusion is really about inclusivity and creating access to financial services to investors.

    She stated that this is really important for a vibrant capital market and also the country’s economic development in general.

    According to her, with the coming up of this initiative, integrating USSD with NGX, we also understand the importance of technology as a key financial enabler for financial inclusion. We are simplifying access to the stock markets and reducing barriers to entry. This would also promote a significant increase in the level of financial inclusion we have currently within the capital markets.

     “By leveraging on this investor education and simplifying access to the markets, this validates that NGX is on the right step towards driving financial inclusion within the Nigerian capital markets.”

    Also, Oluwatobi Adesanya of Meristem added that “we cannot overemphasize the need for financial literacy in the Nigerian capital market.”

  • Oando leads in $925m Afrexim bank-NNPCL financing deal

    Oando leads in $925m Afrexim bank-NNPCL financing deal

    •We’re committed to value creation for all, says Tinubu

    Oando Plc, Nigeria’s leading indigenous energy group, contributed more than half of the latest disbursement of $925 million under the $3.3 billion structured crude-oil backed forward sale finance arrangement between African Export-Import Bank (Afreximbank) and Nigerian National Petroleum Company Limited (NNPCL).

    This came as Johanneesburg Stock Exchange (JSE) announced the resumption of trading on Oando’s shares after the energy group posted a pre-tax profit og N104 billion.

    The strong rebound underlined by the latest operational results triggered a rally on Oando’s share price at the Nigerian Exchange (NGX). Oando’s share price rose by 52.8 per cent between April 28, 2024 and June 6, 2024.

    Nigeria received additional disbursement of $925 million under the syndicated $3.3 billion crude oil deal known as Project Gazelle and sponsored by the NNPCL, bringing total current funded facility size to $ 3.175 billion, after initial funded commitments of $2.25 million in December 2023.

    Under the latest disbursement, Oando contributed $550 million through its trading arm, Oando Trading.

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    The balance $375 million was raised by other parties to get a total disbursement amount of $925 million.

    The landmark $3.3 billion Afreximbank-arranged financing is the largest syndicated loan ever raised by Nigeria in the international market and one of the largest syndicated debts raised in Africa in recent years.

    Speaking on Oando’s participation, Group Chief Executive, Oando Plc, Wale Tinubu, said the successful completion of the second disbursement signified another win for the company and the country at large.

    “The transaction further reinforces Oando’s ability to create value and the company’s status as the indigenous partner of choice in Nigeria.

    “As a proudly indigenous company our ambition has always been to use our platform to support the sustainable development of the nation. Against this backdrop, Project Gazelle will be instrumental in realising the Federal Government’s efforts to boost the country’s socio-economic indices,” Tinubu said.

    He noted that Afreximbank, as lead arranger, has continued to support African corporations – public and private growing confidence in the market and continent.

    President, African Export Import Bank (Afreximbank), Prof. Benedict Oramah said the milestone achieved thus far, on the $3.3 billion facility, demonstrates the bank’s capabilities in performing its role as a crucial development partner for Africa.

    “It reaffirms our commitment to assisting our member states in their efforts to achieve economic growth and stability. This funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities,” Oramah said.

    He noted that the facility was ‘a landmark’ for being the largest crude oil-backed facility in Nigeria and one of the largest syndicated debts raised in Africa.

    He said the closure of the first accordion demonstrated the existence of positive market appetite for well structured commodities-backed instruments.

    Group Chief Executive Officer,  Nigerian National Petroleum Company (NNPC) Limited, Mallam Mele Kyari commended Afreximbank for its investment philosophy and active interest in co-creation of prosperity.

     “The successful disbursement of the first accordion under project Gazelle and its interest in funding viable and strategic projects is a clear indication of investors’ confidence in NNPCL and Nigeria’s growth aspirations,” Kyari said.

    He further assured Afreximbank and all investing communities of NNPCL’s resolve to continue to grow the nation’s hydrocarbon resources and strengthen its partnerships across the oil and gas value chain locally, and globally.

  • Fitch upgrades Fidelity Bank’s rating on strong fundamentals

    Fitch upgrades Fidelity Bank’s rating on strong fundamentals

    Fitch Ratings has revised the outlook on Fidelity Bank PLC’s LongTerm Issuer Default Rating (IDR) to Positive from Stable, while affirming the rating at ‘B-’.

    The credit rating agency has also affirmed Fidelity Bank’s National Long-Term Rating at ‘A(nga)’ with a Stable Outlook.

    In a statement released on Friday, Fitch said that the outlook revision reflects its, “expectations that the bank’s capitalisation will strengthen in the near term as a result of core capital issuances, including to meet the new paid-in capital requirement of N500 billion for banks with an international licence effective by end-1Q26.”

    According to the statement: “Fidelity’s IDRs are driven by its standalone creditworthiness, as expressed by its Viability Rating (VR) of ‘b-’. The VR balances the concentration of operations in Nigeria’s challenging operating environment, very high credit concentration and high Stage 2 loans against a growing franchise, sound profitability metrics, good capital buffers and reasonable foreign-currency (FC) liquidity coverage.

    “Fidelity’s National Ratings are driven by its standalone creditworthiness. They balance a growing franchise and good capital buffers against weaker profitability than higher rated peers.”

    The rating agency said that Fidelity is Nigeria’s sixth-largest bank, as it accounted for   five per cent of domestic banking system assets at end-2023, adding that  strong balance-sheet growth in recent years has increased bank’s market shares and that it expects these to increase further but remain below those of the five largest banking groups.

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    Although it said that Fidelity Bank’s single-borrower credit concentration is high, Fitch said it expects concentration to moderate relative to capital due to capital raising.

    According to the agency,  Fidelity’s operating profit/risk-weighted assets (RWA) averaged 3.6% over the past four years,

     “Operating profit/RWAs improved to 6.6% in 2023 from 3.4% in 2022 owing to a wider net interest margin (NIM), large foreign-exchange revaluation gains that accompanied the naira devaluation and a declining RWA density. The metric increased further to 8.6% in 1Q24 (annualised) due to further NIM widening, strong fees and a continued reduction in the RWA density,” Fitch stated.

    The agency further said that while Fidelity’s total Capital Adequacy Ratio (end-1Q24: 16.3%; excluding unaudited profits) has a modest buffer over the 15% minimum requirement, it expects “capitalisation to strengthen materially in the near term owing to a rights issue due to be concluded in 2024 (equivalent to 650bp of RWAs at end-1Q24) and further capital issuances to meet the new paid-in capital requirement of N500 billion for banks with an international licence by end-1Q26.”

    On factors that could lead to negative rating action/downgrade, the agency said: “A sovereign downgrade could result in a downgrade of Fidelity’s VR and Long-Term IDR if Fitch believes that the direct and indirect effects of a sovereign default would be likely to have a sufficiently large effect on capitalisation and foreign-currency liquidity to undermine the bank’s viability. However, this is unlikely considering the Positive Outlook on Nigeria’s Long-Term IDRs.”

    It, however, said that while key reforms pursued by President Tinubu since he assumed office in May 2023, such as reducing the fuel subsidy and embracing liberalisation of the forex market, are positive for Nigeria’s creditworthiness and FX market liquidity, they “pose near-term macroeconomic challenges for the banking sector.”

  • Edo govt to foot bills of shot soldiers, policemen

    Edo govt to foot bills of shot soldiers, policemen

    Edo State Commissioner for Communication and Orientation, Chris Nehikhare, yesterday promised to foot the bills of the two soldiers and a policeman shot last week by suspected cultists at Okomu in Ovia Southwest Local Government Area of the state.
    He warned the criminals, particularly cultists, that were terrorising Edo residents to desist, or be ready to face the consequences of their actions.
    He made the pledge during a visit to the victims at the Military Hospital, Benin City, the state capital.
    He said: “It is not right in any way for security personnel to be attacked in any community in Edo State. A few weeks ago, we were all aware of what happened in neighbouring Delta State, where many soldiers were killed by some youths. In Edo State, we have a bad case of cultism.
    “One of the shot soldiers is in a critical condition in the hospital. The gunboat that the security operatives were in, were destroyed and riddled with bullets.”

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    We do not want a situation where we will be losing soldiers and other security personnel to civilians or the reckless and dangerous cult groups.
    “We plead with our leaders, especially in Edo South Senatorial District, to rein in their children and wards, because the arms they are using are kept somewhere, and they are provided by somebody.
    “It is a serious matter, and all Edo people, irrespective of political affiliations, must support the state government in the fight against cultism and killings going on. Since January till date, we have lost 150 people in cult-related violence in Edo State.”
    The commissioner urged residents to continue to give peace a chance, and support the administration of Governor Godwin Obaseki, until November 12, this year when he would hand over.