The Nation Newspaper

Category: Capital Market

  • How digital innovations can improve capital market, by Nnadozie

    How digital innovations can improve capital market, by Nnadozie

    Stakeholders in the capital market industry have been urged to deploy digital innovations, which would enhance the sector, boost confidence levels, reduce fraud, and grow the economy.

    Head of Business Technology and Digital Innovation at Central Securities Clearing System (CSCS) Plc, Mr. Tobe Nnadozie, gave the charge in Ibadan, Oyo State, recently during the Annual Chartered Institute of Stockbrokers’ Conference 2024.

    Speaking on ‘Harnessing Digital Innovation for Capital ‘Market Expansion and Economic Growth in Nigeria’, Nnadozie said the time had come to unlock the potential the nation’s capital market possesses.

    According to him, digital innovation refers to the use of technology to create new or improve existing products, services, and processes.

    This, he added, includes fintech solutions, blockchain and cryptocurrency, and artificial intelligence and data analytics.

    While noting that capital markets are financial markets where companies and governments can raise money by selling securities, Nnadozie however, lamented a situation where many accounts in the market were inactive.

    He said: “As of September 2024, 6,099,128 were total tradeable accounts, 531,262 were active accounts, representing 9.54 percent only while 4,128,068 were suspended accounts. This speaks volumes.”

    Nnadozie noted that the market currently faces a myriad of challenges that threaten the growth of the sector and the nation at large.

    But he said, those constraints were not insurmountable where there was willingness to adopt digital innovations by all concerned.

    “Nigeria’s capital market faces several challenges, including low liquidity, limited investor participation, and inadequate regulatory framework, that create barriers to growth.

    “The Nigerian capital market presents opportunities for growth, including the potential for increased institutional and retail investor participation, leading to a more liquid and diversified market.”

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    He said that when digital innovation is embraced, it will lead to improvement in efficiency by automating processes and reducing transaction costs, making it easier for investors to participate in the market.

    Nnadozie added that the innovation will also bring about transparency that would make it easier for investors to access information and track transactions, reducing the risk of fraud or manipulation.

    Also, the CSCS official added that digital innovation in capital markets can expand investor participation by making it easier for new investors to enter the market, increasing liquidity, and diversifying investment opportunities.

    Among others, Nnadozie said that digital innovations will lead to increased investment and liquidity and will also encourage job creation and entrepreneurship opportunities.

    He said that digital investment platforms were making capital markets more accessible to retail investors, allowing them to invest in a wide range of financial products and services from anywhere at any time.

    On strategies to promote digital innovation in Nigeria, Nnadozie advocated for policy and regulatory framework, public-private partnerships, capacity building and education, well-educated investor base.

    He commended the regulator, the Securities and Exchange Commission (SEC) for its commitment to various initiatives that are driving digital innovation in the capital market.

    According to him, one of the major steps taken was a Know Your Customer (KYC) update and a new account validation system.

    This major initiative, he added, has led to easier adoption of digital solutions in the market.

    He said both the issuers and the Nigerian Exchange (NGX) have made noticeable progress through the digital trading platform, which has eased the ongoing rights and public offers in the market.

    He advocated for more of these initiatives and positioned that the CSCS through the current leadership having created the founding layers of digitalization with various self-service portals and Application Programming Interfaces (API) will be willing to work with the market.

  • Noor Takaful Insurance increases dividends on 123% profit growth

    Noor Takaful Insurance increases dividends on 123% profit growth

    Noor Takaful Insurance Ltd, Nigeria’s pioneer and leading takaful operator, has increased dividend payout by about 67 per cent after the alternative insurance provider recorded 123 per cent growth in profitability.

    With the profit growth in the 2023 financial year, the company increased dividend per share to 5.0 kobo for the 2023 financial year compared with 3.0 kobo paid for the 2022 financial year.

    At the annual general meeting at the company’s head office in Lagos, Chairman, Noor Takaful Insurance Limited, Mr. Muhtar Bakare said that the company’s gross written contribution grew from over N4.9 billion in 2022 to N6.5 billion in 2023, representing an increase of 30 per cent.

    He added that profit after tax rose from N468.5 million in 2022 to N1.05 billion in 2023, representing a remarkable 123 per cent rise in profitability.

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    Bakare highlighted the company’s unwavering focus on its takaful and ethical model as the main driver of the growth.

    He noted that the company remains focused on bringing innovation that would help improve its current achievements. He stated that the company has identified the need for financial inclusion as the driving force behind its success.

    Some shareholders who attended the meeting applauded the company’s leadership for ensuring steady annual growth. They expressed confidence in the outgoing chairman’s ability to replicate this success as he transitions to his new role as Chairman of Noor Health.

    Noor Health, a subsidiary of Noor Takaful, recently received approval to operate as a national health management organisation and is expected to commence operations in November of this year.

    During the meeting, the outgoing chairman, Bakare, also unveiled the company’s upcoming mobile app, RAHA by Noor.

    According to him, the new digital platform is designed to cater to customers’ insurance needs, providing a seamless participant acquisition tool and serving as a gateway to Noor Takaful’s full suite of digital solutions. By streamlining access and reducing the need for retail staff interactions, RAHA promises to save participants valuable time.

    ”The app reflects one of Noor Takaful’s core values: innovation, furthering its mission to become a leading provider of ethical finance solutions across Africa,” he said.

    Stakeholders expressed excitement about these developments and voiced their anticipation for the upcoming African Takaful and Non-Interest Finance Conference, scheduled for November 12–13, 2024. This conference will serve as a platform for Noor Takaful to advance its ultimate goal of becoming a key player in Africa’s non-interest finance sector.

    Noor Takaful Insurance Limited, a takaful insurance firm, was established and duly licensed by NAICOM in April 2016 as the full-fledged composite takaful insurance operator in Nigeria with 100 per cent indigenous Nigerian shareholding.

    The company currently plays a pioneering and leading role in unlocking Nigeria’s takaful insurance potential. Its operational framework is regulated by NAICOM and is subject to the Insurance Act 2003.

  • NDIC uses BVN to pay N5m deposit to Heritage Bank customers

    NDIC uses BVN to pay N5m deposit to Heritage Bank customers

    The Nigeria Deposit Insurance Corporation (NDIC) has commenced payment of N5 million maximum deposit per depositor to defunct Heritage Bank customers.

    The payment was facilitated using Bank Verification Numbers (BVN) as a unique identifier to locate depositors’ alternate accounts in other banks.

    This followed the revocation of Heritage Bank’s license by the Central Bank of Nigeria (CBN) in June.

    The NDIC was appointed as liquidator and the corporation, in accordance with Section 12(2) of BOFIA 2020 and Section 55 subsections 1 & 2 of the NDIC Act 2023, commenced the process of verification and payment to insured depositors.

    In discharge of its deposit guarantee mandate, the corporation began the payment of the insured deposits of N5 million maximum per depositor within a record time of four days of the bank closure.

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    However, depositors with balances exceeding N5 million have been paid the initial insured N5 million, while the remaining balances (classified as uninsured deposits) will be paid as liquidation dividends upon realisation of the defunct bank’s assets and recovery of debts owed to the defunct bank.

    This unprecedented achievement of direct payment through BVN-linked alternate accounts, without the need for depositors to visit NDIC offices or fill out forms, marks a historic shift for the NDIC in the prompt reimbursement of depositors with payment of about 82.36 per cent of the total insured deposit to date.

    It is instructive to state that, the remaining 17.64 per cent of the insured deposits yet to be paid were largely depositors whose accounts have post no debits (PND) instructions or have no BVN. Others are those with no alternative accounts in other banks or accounts with KYC limit on the maximum lodgment per day and are yet to come forward for verification.

    These category of depositors are presently being contacted by the corporation through telephone calls and text messages to come forward for verification.

    The corporation said all depositors with amounts in excess of the maximum insured amount of N5 million are timely paid through liquidation dividend from realisation of the defunct bank’s assets.

    The Corporation has already initiated the process of debt recovery and realisation of investments and physical assets of the defunct bank to ensure timely reimbursement of the uninsured depositors of the defunct bank.

    Subsequently, after the full payment of both insured and uninsured portion of deposits, the Corporation will proceed with the payment of creditors in accordance with priority of claim as provided in the extant law. We will like to reiterate that, all payments other than that of insured deposits, are subject to availability and realisation of assets of the bank in the form of liquidation dividend. 

    The NDIC is committed to the safety of depositors’ funds in all licensed banks. Members of the public are enjoined to continue their banking activities without fear, as all other banks remain safe and sound.

  • Vista Group completes bank acquisition

    Vista Group completes bank acquisition

    Vista Group Holding has completed its acquisition of 100 per cent shareholdings in Banco Société Générale Moçambique (BSGM), which will further expand the group’s presence in Africa.

    BSGM, which has eight branches, will be renamed Vista Bank Moçambique.

    Chairman, Vista Group Holding, Simon Tiemtore, said the acquisition of BSGM represented an important milestone in Vista Bank Group’s journey towards its goal of becoming a world-class pan-African financial services group, with the aim of operating in 25 countries by 2026.

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    “The new acquisition increases the group’s support and impact in driving economic growth and financial inclusion in Africa. Following this acquisition, we are now operating in five countries: Burkina Faso, The Gambia, Republic of Guinea (Conakry), Mozambique and Sierra Leone,” Tiemtore said.

    He noted that the Vista Group, which is owned by Lilium Group LLC, offers a full range of innovative banking products, solutions and services that are accessible to everyone, including individuals, small and medium-sized enterprises (SMEs), businesses and governments, helping to promote financial inclusion, economic growth and prosperity in its countries of operation.

  • CIS, ASHON renew collaborations on capital market development

    CIS, ASHON renew collaborations on capital market development

    Stockbrokers and securities dealing firms have reiterated their commitment to the development of the Nigerian capital market.

    The leadership of Chartered Institute of Stockbrokers (CIS) and Association of Securities Dealing Houses of Nigeria (ASHON) agreed to strengthen their collaborations. CIS comprises individual securities dealers commonly referred to as stockbrokers while ASHON is the umbrella body for all securities dealing firms in Nigeria.

    In his welcome address during the visit of ASHON leadership, led by its Chairman, Sam Onukwue, to CIS, its President, Oluropo Dada said the two bodies should work together in all areas of professionalism to enhance advocacy and overall market development .

    “Your presence is of particular importance to us because of the long-standing relationship between CIS and ASHON which has fostered naturally over the years. As we all know, CIS is the duly chartered professional body of all individual securities dealers in Nigeria, and, as an institute, we acknowledge the contribution of ASHON to the development of our market as the umbrella body of all the securities dealing firms in the country. So, in essence, we are both part of one family and should be working together for the same mutual interest

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    “We strongly believe that CIS and ASHON should work together in every area that will uplift and further develop our market. Specifically, the two bodies should collaborate to ensure a big and strong market, jointly engage in public advocacies, present joint position papers on issues affecting the capital market to government and its agencies, develop position papers on economic and capital market related issues, organise joint workshops on Economic and Capital market issues amongst others,” Dada said.

    Responding, Onukwue lauded CIS for its initiatives on digitalisation of its operations, including introduction of e-Examinations across the board. 

    He underscored the need to intensify efforts to attract millennials, Gen. Z , Gen Alpha and others in the category as they form the core group of future investors. 

    He lamented the manner at which stockbrokers were being treated on vending agreement during market issues. 

    He said ASHON frowned at the current trend in the recapitalisation of banks whereby some of them have opened portals to attract investors directly bypassing stockbrokers, saying this should be looked into by the two bodies.

    Onukkwe said ASHON aligned with the need to have a joint position with the institute on critical areas of market development.

    According to him, the two bodies should present a joint position to the Capital Market Committee of the Securities and Exchange Commission on market development. He noted that  a joint workshop and seminar by the two bodies was desirable to create awareness on the market and advise the government and market regulators  on the way forward.

    The meeting was attended by the office holders of CIS, Past President of CIS, Olatunde Amolegbe, Past Chairman of ASHON, Chief Onyenechukwu Ezeagu, some council members and other top officials of both bodies.

  • NIPCO eyes long-term growth on strategic investments

    NIPCO eyes long-term growth on strategic investments

    NIPCO Plc’s strategic investments would provide a strong pathway for the downstream oil and gas company to sustain a stable long-term growth over the years.

    Its Chairman, Chief Bestman Anekwe, at the company’s annual general meeting in Abuja, said the company recorded 69 per cent increase in turnover in the fiscal year 2023 compared to the previous year despite facing product and foreign exchange challenges

    He expressed optimism about NIPCO’s future, noting that 69 per cent increase in turnover for 2023 is a good pointer to better performance in 2024. 

    “Our strategic investments are poised to create new pathways for long-term growth,” Anekwe said.

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    He emphasised the potential of the oil and gas sector to drive economic progress amid the country’s ongoing efforts to curb pipeline vandalism and oil theft.

    According to him, NIPCO’s collaboration with NNPC Limited to establish 35 CNG stations across Nigeria, catering to over 200,000 vehicles daily, is a remarkable endeavour which will be pursued vigorously

    However, he acknowledged the initiative’s challenges, including significant capital investment and infrastructure deficits.

    He noted that the outlook for 2024 is mixed, with expectations of increased drilling, local petroleum product refining, gas commercialisation, and the completion of the Ajaokuta-Kaduna-Kano Gas Pipeline project.

    “These developments are poised to jump-start Nigeria’s economic engine,” Anekwe said, while also highlighting the ongoing security challenges facing the oil and gas industry.

    He further acknowledged the challenges of product availability and foreign exchange but expressed confidence in the company’s ability to navigate these obstacles.

    Anekwe, who was represented at the meeting by Alhaji Aminu Abdulkadir , Group Executive Director, Corporate Services, NIPCO, said the group’s good balance sheet, exemplary service delivery, and dedicated workforce have positioned it for continued success.

    He commended the management team of NIPCO for its resilience and innovation, adding that  “NIPCO Group is in good hands”.

  • AXA Mansard wins award

    AXA Mansard wins award

    AXA Mansard, a member of AXA, was named the General Insurance Company of the Year at the 2023 edition of Almond Insurance Industry Awards.

    The Almond Insurance Industry Awards is designed to promote the best practices in corporate management, leadership, governance, innovation, and sustainable growth within the insurance sector.

    According to the organiser of the event, the yearly event serves as a platform to acknowledge and celebrate the remarkable achievements of industry professionals.

    Receiving the award, Chief Security Officer, AXA Mansard Insurance, Adekunle Akinbowale, said the award, which was presented to the company at a ceremony in Lagos, was another testament of its industry leadership and unwavering commitment to customer service.

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    According to him, the award is another testimony to the relentless efforts of the underwriter team to ensure that AXA’s purpose of acting for human progress is experienced by every Nigerian.

    Chief Executive Officer, AXA Mansard Insurance Plc, Kunle Ahmed, said the recognition would spur AXA Mansard to continue to do more for its customers and provide exemplary leadership for the industry, especially at a time like this that is beclouded by uncertainties.

     “We are once again, humbled by this award as the General Insurance Company of the Year because it signals the level of confidence that customers have in us. It is another way customers have spoken that since we always put them first; they will always prefer us as well.

     We are aware that this is another challenge to do more. We do not take their trust for granted, but we accept the challenge to do more across all our business lines – General, Life, Health and Investments,” Ahmed said.

  • New SEC DG to outline agenda

    New SEC DG to outline agenda

    The newly-appointed Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, will this week lead stakeholders in laying out capital market roles in the achievement of the national economic agenda.

    Agama, who was appointed by President Bola Tinubu, had promised to deploy the capital market as a catalyst for the government’s Renewed Hope Agenda, including the achievement of the $1 trillion economy target.

    Agama will host the Capital Market Committee (CMC) meeting, which will brainstorm on further strategies for enhancing the capital market’s role in driving economic growth and development through initiatives that attract investments, improve market efficiency, and safeguard investor interests.

    “The meeting will bring together key stakeholders in the Nigerian capital market to discuss the industry’s current landscape, regulatory framework, and strategies for future growth. Participants will exchange ideas and reaffirm their commitment to fostering a robust investment climate characterized by innovation, sustainability, and investor protection.”

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    “The meeting would focus on critical issues affecting the market and ensure that those concerns were thoroughly addressed. To inform its deliberations, the committee will review reports from technical committees, market infrastructures, and industry observers. Emerging market trends will also be a focal point of discussion,” SEC stated about the meeting holding in Lagos.

    The CMC is an industry-wide body comprising the SEC, capital market operators, trade groups, and other stakeholders. It serves as a pivotal platform for dialogue, facilitates the exchange of ideas, addresses key issues impacting market growth and organisation, and collaborates on shaping the market’s future.

    The committee was established primarily as a means for stakeholders to exchange ideas and provide feedback to the SEC, aiding in the continuous improvement of market operations and regulatory frameworks.

  • New digital share offering platform to stem unclaimed dividends

    New digital share offering platform to stem unclaimed dividends

    The new digital share offering platform, launched by the Nigerian Exchange Group (NGX Group)-NGX Invest, will help to streamline dividend payment and stem the recurring incidence of unclaimed dividends.

    NGX Invest is an innovative online platform for the distribution and subscription of public offerings and rights in the Nigerian capital market. The platform has quickly gained popularity among investors, successfully onboarding a diverse range of participants.

    Group Managing Director, Nigerian Exchange Group (NGX Group), Mr. Temi Popoola, said one of the standout features of NGX Invest is its contribution to streamlining the dividend distribution process, which aims to reduce the incidence of unclaimed dividends in Nigeria.

    According to him, the e-dividend system represents a significant improvement over traditional paper-based method.

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    “NGX Invest allows investors to designate their preferred account for dividend payments. The system leverages real-time identity verification through NIBSS, transmitting this information directly to the registrar, thereby significantly streamlining the dividend distribution process,” Popoola said.

    He explained the potential of the platform’s integration with the Bank Verification Number (BVN) system: noting that the integration of BVN with the designated dividend account opens up possibilities for aggregation and consolidation of dividend payments from multiple shares linked to a single BVN.

    “This feature has the potential to greatly enhance efficiency in dividend management. This innovative approach to dividend distribution is expected to enhance overall efficiency and convenience for investors. By reducing the need for additional follow-up work typically required in traditional paper offerings, NGX Invest is positioning itself as a game-changer in Nigeria’s capital market.

     “The e-dividend system is just one of many features designed to improve the experience of stakeholders in the public offerings value chain. As NGX Invest continues to evolve, it promises to play a crucial role in modernizing and streamlining investment processes in Nigeria’s financial markets,” Popoola said.

  • SEC approves RT Briscoe Money Market Fund

    SEC approves RT Briscoe Money Market Fund

    RT Briscoe Nigeria Plc has announced the launch of its first-ever fund, the “R.T. Briscoe Savings and Investment Fund” and secured the Securities and Exchange Commission (SEC) approval for the fund.

    The move marks a significant step in RT Briscoe’s commitment to providing innovative opportunities to its existing and potential shareholders to invest in the Company.

    This approach ensures that investors can own a stake in R.T. Briscoe Nigeria Plc with very little initial capital, making it accessible to a broader range of investors and democratizing investment opportunities within the company.

    The R.T. Briscoe Savings and Investment Fund is an open-ended money market fund designed to offer unitholders a steady stream of income and capital preservation. By investing in a diversified portfolio of high-quality money market instruments, the fund ensures low risk and competitive returns. The primary objective is to earn a steady income and preserve capital, catering to both individual and institutional investors.

    The fund is professionally managed by DLM Asset Management Limited who recently won the best Asset Management company of the year at the African Industrial and Development Conference and Awards. This accolade underscores their commitment to ensuring expert oversight and strategic investment decisions. First City Monument Bank Limited serves as the custodian, while UTL Trust Management Services acts as the trustee, providing additional security and transparency.

    With a minimum subscription of 10 units at N1,000 per unit, the fund is accessible with a minimum investment of N10,000. The fund comprises 1,000,000 units available for subscription, providing many opportunities for investors. Additionally, the fund offers liquidity, allowing easy access to investments and the option to convert holdings into equity ownership in R.T. Briscoe Nigeria Plc.

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    Group Managing Director and Chief Executive of RT Briscoe Nigeria Plc, Seyi Onajide, expressed his enthusiasm about the launch: “We are thrilled to introduce the R.T. Briscoe Savings and Investment Fund, demonstrating our dedication to providing reliable and accessible investment opportunities that empower investors to achieve their financial goals. This launch underscores our commitment to innovation and growth, offering clients an opportunity to save to own a part of R.T. Briscoe Nigeria PLC. We believe this fund will not only enhance our investment portfolio but also reinforce our leadership across our diverse businesses, including Automobile, Industrial Air Compressor, Material Handling, Industrial Equipment, Power, and Real Estate.

    Managing Director of DLM Asset Management, commented on the RT Briscoe Nigeria Plc fund, Ugonnaya Osi, emphasising, “With the expertise of DLM Asset Management Limited and the unwavering support of our trusted partners, we are confident that the RT Briscoe Fund will deliver significant value to our investors. As stewards of the RT Briscoe Fund, our commitment extends beyond mere management; we aim to maximise returns and foster sustained financial growth through meticulous oversight and strategic foresight. This dedication ensures that every investment decision is informed by a deep understanding of market dynamics and investor needs, reinforcing our pledge to deliver excellence in financial management.” She added.

    Investing in the R.T. Briscoe Savings and Investment Fund is straightforward. Interested individuals can fill out a subscription form and complete the Know Your Customer (KYC) requirements.