The Nigerian Exchange (NGX) has received approval for a regulatory framework for operation of a new trading window for fixed-income securities, paving the way for the launch of the new platform.

Securities and Exchange Commission (SEC),  Nigeria’s apex capital market regulator,  has approved NGX’s guidelines on trade execution through NGX On-Manual Negotiated Deal Trading Window (Neg-Deal Window).

The Neg-Deal Window is a trading channel for executing negotiated fixed income deals during trading hours. The Neg-Deal Window complements order executions via the Central Order Book and shall be used only for permissible volume of fixed income securities on bilateral pre-agreed terms. Trades executed via the Neg-Deal Window will be recognised for price-setting purposes and will reflect in NGX’s trading statistics.

The NGX noted that the new window further widen the stock market as the fixed income market provides access to both retail and institutional investors to trade fixed income securities listed by the Federal Government, states, corporates, and supranational issuers on the Exchange.

According to NGX, the new window adopts an integrated straight-through trading and settlement process using best in class market infrastructure without trade failures.

Read Also: NGX woos investors to Africa’s growth market

Permissible securities to be traded on the window are only listed debt securities deposited in a recognised Central Securities Depository (CSD) in Nigeria. Minimum order size on the window  will be a round lot size no less than 10,000 units or minimum value of N10 million.

The window shall be available for users within the trading hours of the Exchange although the trading hours may be extended or reduced by the Exchange with notification to trading license holders.

The new framework empowers the Exchange to suspend or halt deal execution in circumstances where such deal is being influenced by a manipulative or deceptive trading practice, or further to a regulatory directive.

License Holders are required to ensure that there is no time lag between the buy and sell decision and no open position beyond the agreed time while pricing is going to be pre-agreed prices which must be entered for trades as ‘clean’ prices. A pre-agreed price executed on a Neg-Deal trade will impact the published market price of that security.

Also, trades executed via the Neg-Deal Window shall be reported in real time to the Exchange, and shall update published market trade statistics. However; the new window shall not be used for cross deals or unilateral trade executions.

To prevent market abuse, the new framework provides that notwithstanding the origin of an order to be submitted to the Neg-Deal Window, each trading license holder must take reasonable steps to satisfy itself that such orders and any resultant trades will not have adverse impact on the market or result in a breach of the existing rules of the Exchange.

“Each trading license holder must ensure that all of its employees who are involved in the execution of bilateral trade agreements via the Neg-Deal Window are familiar with the provisions of the above trading license holders’ rules and any other relevant Rules of the Exchange, and that those employees receive adequate guidance to make them recognise and avoid entering into any transaction which will result in, or is likely to result in, a breach of those provisions or impact the market’s integrity,” the approved guidelines stated.

Nirsal Microfinance Bank Limited (NIRSAL MFB) has launched three new products, as part of its on-balance sheet lending (OBSL) portfolio.

A statement from NIRSAL MFB said the three products were designed for easy access to credit facilities by micro, small and medium enterprises that require affordable credit facilities to boost their businesses, and salary earners to cater for immediate/pressing needs..

“The SME Loan is for micro businesses and SMEs engaged in trading activities with daily sales.

“The loan sum accessible to this set of customers ranges from N50,000 to N250million, subject to a satisfactory turnover that covers the expected facility amount.

“This product is also open to petty traders in organised markets who have existing businesses and require credit facilities ranging from N50,000 to N300,000 to augment their business capital.

“The petty trader does not necessarily need to have account history with NMFB or any other bank to access the facility,” it said.

The Salary Advance is “for individuals in paid employment whose salaries have been consistent for three months, prior to making an application to the bank”.

Staff of corporate organizations whose salary accounts are domiciled with NMFB can, easily, access this facility” the bank stated.

According to the bank; interest rate for the products is very competitive with a streamlined documentation process for access to any of the above facilities from the bank..

NMFB reiterated that these products are different from the government intervention products administered by the bank.

“Consequently, applications for loan facilities within the On-Balance Sheet Lending portfolio will be appraised in line with the Risk Acceptance Criteria of the Bank”.

The bank, also, stated that a loan product for the agriculture sector, covering farmers and all businesses in the agricultural value chain, would be launched within the year.

Successful applicants of this product will, also, enjoy the benefits of the Federal Government Agricultural Credit Guarantee Scheme Fund (ACGSF), as well as the Interest Drawback Programme for farmers and businesses in the agricultural value chain.

CWG Plc and Customer XPs Software have launched a new sophisticated software that provides real-time detection and prevention of cyber threats into the market.

The software, known as Clarii5 is a real-time intelligence solution that provides real-time anti-fraud and anti-money laundering capabilities on a unified real-time intelligence platform. It is also a fraud detection, monitoring and prevention solution that monitors suspicious patterns across transactions, events, users, accounts, systems in real-time and responds with the right action to pass or block transaction, or generate real-time alerts for manual investigation.

Chief Technology Officer, CWG, Moruf Yusuf, said Clari5 would help the financial industry to checkmate the threats of digitisation while benefitting fro the global trend.

He explained that the partnership with CustomerXPs started in 2019  to ensure that Nigerian banks and other financial institutions have access to globally acknowledged technology to tackle cybercrimes.

He outlined that the product, which has also been launched in Ghana has started off to well as it has already on-boarded one of the largest financial institutions in Nigeria and three Ghanaian banks.

“We are also in discussions with other banks in Nigeria too to see how we can bring them on our platform. We are able to do this because we have a solution that can prevent fraud in real time online. Other solution competitors in this space do not have the kind of superior technology that we have and for that our clients are happy that they came onboard with us.

“Beyond that, we have actually done so many Proof of Concepts (POCs) and we are sure that before the end of this year, we are going to add more logos to the list of clients that we have,’ he added.’

“We have also been able to customise our solution to meet the Central Bank of Nigeria’s (CBN) requirements. Beyond that, we have good local support and interestingly, we are not affected by the dollar regime and because of this unique partnership, we are able to accept local currency payments. We are also connected to all the payment channels so that if any transaction is to take place, we are the first to know and to determine if it is fraudulent or not.

“Other solution competitors in this space do not have the kind of superior technology that we have and for that our clients are happy that they came onboard with us,” Yusuf said.

Chief Executive Officer, CustomerXPs Software, Rivi Varghese described Clari5 as an “intelligent soul” for financial transactions as it uses the the best of technology to help financial institutions achieve their financial crime risk management.

According to him,  Clari5 real-time intelligence solutions are deployed enterprise wide using commodity hardware in some of the biggest global banks with the solution suite providing real-time anti-fraud and anti-money laundering capabilities on a unified real-time intelligence platform.

“CWG is in partnership with Clari5 to help African banks combat financial crime in real-time. When economy start growing, financial growth start increasing in the country, and fraud happens.  This is a moment of growth for Nigeria because the best of technology for crime management is meant for Nigeria and that’s why we’re working with CWG

“Based on our experience, we are a global category leader and we have 60 banks as a subscriber. You know, in almost every bank, they will recover a couple of multiple times their investment in the same year itself in terms of preventing frauds. So, let’s say, for putting a solution like this, they spent $10; they would have recovered $40 to $50 in one year” Varghese said

He explained that the software would be connected to everything in the financial institution starting from mobile, internet banking, Automated Teller Machines (ATMs), banking hall among others adding that the software is constructed in a way to identify details of the customers before agreeing to a transaction.

“When the details of the customer do not correspond or when there are too many enquiries on the customers’ details or there is a suspicion on the transaction, it automatically blocks the account of the customers to ensure it is not hacked.

“This is why we are bringing this concept to Nigeria because payment is slowly becoming faceless and with the unprecedented growth of cybercrime, there is a need to leverage on this concept so that the severity of fraud is reduced,” Varghese said.

Business Director, Financial Service Institution, CWG, Mr. Olatunji Kehinde, noted that as digitization leads to increased expansion and aess, there are also developing threats.

He identified cybercrime as one of such threats that must be talked in order to ensure that customers can transact e-commerce and other electronic transactions confidently.

“We are all opportune to be alive at this wonderful time in history. Wonderful because we’re seeing the growth of technology more than ever before affecting all spheres of life in a very transformative way. But as that expansion and transformation is going on, there are challenges and threats. One of these threats-cyber security threat; is one of the greatest risks to the evolution of what we call the fourth industrial revolution

“So our job is to help our customers to be able to engage confidently in this new era. You want to do ecommerce,  you want to do electronic transactions, you can do it confidently knowing that you have the platforms and the tools to keep your company and your customers safe and secure,” Kehinde said

Vitafoam Nigeria Plc will focus on increased investments in research and development to drive its new strategic growth plan aimed at sustaining the company’s profitability and competitiveness over the next six decades.

As it celebrates 60 years of operations in Nigeria, Vitafoam at the weekend said it would leverage its business diversity; pedigree and more investments in research and development (R & D) to remain ahead of competition in the years ahead.

Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi  said the group would implement policy  to invest more in research and development (R&D) while identifying  the needs of its diverse customers ahead of introducing any product  and deepening of technology deployment.

He noted that that Vitafoam had always weathered the storm in the past six decades by connecting with its customers and ensuring top quality products and services.

“The next  sixty years will be built on our legacies of innovation, integrity and exceptional customer experience , leveraging technology and professionalism to produce quality products, as we are committed to producing ground-breaking products that will support Nigerians with great comfort and total wellbeing

”We shall build on our legacies of innovation, integrity and exceptional service of customer experience, leveraging technology and professionalism to produce quality products and services,” Adeniyi said

He added that Vitafoam shall continue to play pivotal role in the area of community social responsibility (CSR) including pioneering partnership  with a sleep expert to educate Nigerians on quality sleep and healthy living.

“We appreciate everyone who has supported us at one time or the other in making Vitafoam a household name and a respected brand. We will celebrate our 60th anniversary with donations to orphanages and array of competitions among different categories of our customers and celebrities,” Adeniyi said.

In pursuit of creating healthy competition among its distributors nationwide, the company had last year rewarded the distillery ones with prizes including cars and trucks.

The company rewarded its shareholders with N1.9 billion dividend, following its improved performance for the 2021 financial year. The dividend, which translated into N1.50 per share, was approved by the shareholders at the company’s 60th yearly general meeting held in Lagos in March this year.

Dangote Sugar Refinery (DSR) Plc recorded a well-rounded performance in the first half with considerable growths in sales and profit

The six-month report for the period ended June 30 2022 showed that profit before tax  rose to N29.73 billion in first half of the year as against N18.76 billion recorded in the corresponding period of 2021. Profit after tax also rose to N20.24 billion as against N12.61 billion in first half 2021. Total turnover jumped to N185.46 billion in first half 2022 compared with N131.95 billion in corresponding period of 2021. Gross profit maintained the same upswing, rising from N28.60 billion to N38.82 billion.

Group Managing Director, Dangote Sugar Refinery Plc, Ravindra Singhvi attributed the positive results in the half year to key trade interventions introduced during the year and   positive market responses.

He said the impressive performance in the half year demonstrated the group’s resilience in the face of prevalent challenges, which rightly reflected in strong topline growth shown in the financial results.

He noted that Dangote Sugar Refinery has continued to implement its sugar backward integration projects plans and the enhancement of its outgrowers scheme to support the economic growth of the immediate communities.

He pointed out that the aim was to develop a robust outgrower scheme with about 5,000 outgrowers when the projects have fully taken off, in addition to the achievement of other targets of its Sugar for Nigeria Project plan.

According to him, the key focus is of the sugar refiner is achievement of the Dangote Sugar Backward Integration Projects targets and put Nigeria on the path of sugar self-sufficiency and the world sugar map.

He assured that employees’ health and safety as well as that of its partners remains a top priority at the company’s operations at its different facilities including its Apapa Refinery, Sugar Backward Integration Operations in Numan, Adamawa State and Tunga, Nasarawa State.

He noted that the company’s  processes were in compliance with stipulated  health and safety protocols.

Dangote Sugar Refinery is Nigeria’s largest producer of household and commercial sugar with 1.44M MT refining capacity at the same location, refines raw sugar imported from Brazil to white, Vitamin A fortified refined granulated white sugar suitable for household and industrial uses.

Sterling Bank Plc has raised $ 25.5 million from BlueOrchard Finance Limited, a Swiss global impact fund management firm.

The new capital would be used to grow Sterling Bank’s supports for the key sectors of the economy, including health, education, agribusiness, renewable energy, and transportation sectors. The deal was structured by Alpen Capital.

Sterling Bank at the weekend explained that the fund was secured as a multi-credit on-lending facility to expand the bank’s financial interventions in the five sectors forming its ‘HEART’ strategy.

According to the bank, the fund would be deployed in line with its strategic focus to invest in high impact sectors that will drive sustainable growth and prosperity for the economy.

The bank explained that the facility will be used to expand its HEART strategy, grow the bank’s lending portfolio to micro, small and medium enterprises in the bank’s continuing bid to address the impact of COVID-19 on key sectors.

The facility was the latest of recent initiatives to drive sustained growth to the real sector of the economy through specialised products, investments, lending and fundraising. Recent initiatives included the bank’s ongoing partnership with Mastercard Foundation on the Sterling Women and Youth Agric Finance product, SWAY AgFin – a single digit facility specifically designed for women and youths aged 18 and 35 years to drive an increase in production in Nigeria’s agric sector, a zero interest facility for schools through Edubanc, as well as the launching of the Health Workers’ Fund to provide supplementary equipment for healthcare workers on the frontlines of the COVID-19 pandemic.

Founded in 2001, Blue Orchard is a Swiss-based global impact investment manager. BlueOrchard has invested to date over $9.8 billion across more than 100 countries. Two hundred and forty-six million underserved individuals and MSMEs in emerging and frontier markets received access to financial and related services with the support of BlueOrchard as of last March.

Alpen Capital Limited is an investment banking advisory firm which offers solutions in the areas of debt, mergers and acquisitions and equity to institutional and corporate clients across the Gulf Cooperation Countries, Africa, South Asia and Levant. With offices in the UAE, Qatar, Oman and India, Alpen Capital works with some of the leading business groups in its operating markets.

The Nigerian Exchange Group (NGX Group) Plc rode on the back of increased transactions to record significant growths in incomes and profitability in the first half.

Key extracts of the interim report and accounts of NGX for the first half ended June 30, 2022 showed that profit before tax rose by 134.38 per cent to N1.22 billion in first half 2022 as against N521.89 million recorded in comparable period of 2021. Profit after tax grew by 82.4 per cent from N449.66 million to N820.17 million. Gross earnings had grown by 138.3 per cent to N4.22 billion in first half 2022 as against N1.77 billion in first half 2021. The performance of the holding group for the Nigerian Exchange (NGX) was boosted by increased returns from its subsidiaries, with profit-equity from investees rising from N699.07 million to N949.97 million.

The report also showed improvements in the balance sheet and underlying ratios of the group. Total assets rose by 60 per cent from N24.87 billion to N39.76 billion. Total shareholders’ funds also increased from N21.94 billion to N22.49 billion. Returns on assets rose from 2.05 per cent to 3.65 per cent while returns on equity improved from 1.81 per cent to 2.06 per cent.

Group Managing Director, Nigerian Exchange Group (NGX Group) Plc, Mr. Oscar Onyema noted that the group had last year taken strategic steps to reorganise its business by laying the foundation for the rebirth of its franchise as it became a fully-fledged for-profit making company.

He said the group has a clear focus on maximising resources and improving stakeholder returns.

“Our performance in the first half of 2022 is a testament to our ability to deliver long-term value. We recorded impressive growth in our top line to deliver a profit before tax of N1.22 billion despite the peculiar challenges inherent in our operating environment.

“Our goal remains to sustain our position as a leading integrated market infrastructure group in Africa, by diversifying our revenue streams, and identifying and investing in new businesses.

“We remain focused on building formidable businesses through broader and deeper involvement in every sphere of the capital market value chain through informed investments in profitable verticals and enhanced risk management practices, without losing sight of emerging opportunities in unrelated businesses within the Sub-Saharan African region,” Onyema said.

Further analysis showed that the group recorded appreciable improvements across its income lines. The report indicated 165.1 per cent growth in treasury investment income to N1.017 billion by June 2022 relative to N383.7 million in the comparative period of 2021 driven largely by relatively higher yields on the group’s treasury bills, bonds and fixed deposit investments.

Transaction fees also rose by 198 per cent s to N2.32 billion in June 2022 from N777.7 million recorded in June 2021 due to a significant increase in trading activities on NGX.There was also  18.6 per cent increase in listing fees to N363.8 million in June 2022 from N306.8 million in June 2021 buoyed by improved listing on the Exchange in the first half of 2022 relative to the first half of 2021.

FBN Holdings Plc recorded appreciable growths across key performance indicators in the first half with net profit rising by 48 per cent to N56.5 billion within the six-month period.

Key extracts of the interim report and accounts of FBN Holdings for the first half ended June 30, 2022 released at the weekend showed that gross earnings rose by  22.4 per cent to N359.2 billion in first half 2022 as against N293.4 billion recorded in the comparable period of 2021. Profit before tax  grew by 45.3 per cent to N65.7 billion in 2022 as against N45.2 billion in 2021. After taxes, net profit stood at N56.5 billion in first half 2022 against N38.1 billion in first half 2021, representing an increase of 48 per cent.

Group Managing Director, FBN Holdings,  Mr Nnamdi Okonkwo, said the company’s performance demonstrated resilient performance despite the challenging operating environment.

He noted that the company has continued to see good progress across its performance metrics, which remain in line with its focus on driving sustainable growth.

“The group remains committed in its transformation drive, which has resulted in stronger balance sheet and better asset quality with non-performing loans closing at 5.4 per cent at first half 2022.

“Similarly, risk management capability remains robust across the group supporting the drive for enhanced earnings for sustainable capital accretion.

“Our strategic intent remains unchanged in optimising opportunities that drive growth in revenue, profitability, capital accretion and overall operational efficiency that delivers sustainable value to our stakeholders,” Okonkwo said.

Chief Executive Officer, First Bank of Nigeria, Dr Adesola Adeduntan, said the group’s flagship commercial banking business remained focus on executing key initiatives to position it for improved profitability in 2022.

“Our half-year results further reinforced our drive toward our ‘Quantum Profitability Leap’ agenda. Our gross earnings are up 22.6 per cent year-on-year to N338.5 billion and net interest income up 49.3 per cent year-on-year to N152.9 billion, respectively.

“On the back of the impressive growth recorded in our top line, our profit before tax recorded a strong growth of 40 per cent year-on-year to N60 billion.”

“Profit after tax also grew by 42.3 per cent year-on-year to N53.3 billion as the bank continues to reap the dividends of the successful restructuring of its balance sheet and revamping of our risk management architecture.

“We continue to record progress in driving down our non-performing loan ratio which now stands at 5.4 per cent at the end of first half and we are on target to bring it within regulatory limit of five per cent by end of 2022,’’ Adeduntan said.

He said th momentum of generating impressive returns from the quality risk assets portfolio already created would be sustained.

He assured that the group would continue to strengthen its dominant digital banking capabilities in providing best-in-class services to all segments of its customers across all its footprints in sub-Sahara Africa and beyond.

Union Bank of Nigeria (UBN) Plc recorded modest growths in the first half as the newly acquired bank reassured stakeholders of a more rewarding future.

Key extracts of the interim report and accounts of UBN for the six-month period ended June 30 2022 showed that profit before tax rose by 6.7 per cent to N12.3 billion in first half 2022 as against N11.5 billion in corresponding period of 2021. Gross earnings increased by 12.5 per cent to N87.4 billion as against N77.7 billion; driven largely by higher earning assets.

Net operating income after impairments inched up by 2.6 per cent to N49.6 billion in first half 2022 as against N48.3 billion in first half 2021. Non-interest income however dropped by 24.1 per cent from N28 billion to N21.1 billion due to foreign exchange revaluation loss.

Also operating expenses rose marginally by  up 1.3 per cent  to N37.3 billion from N36.8 billion; reflecting higher non-discretionary regulatory costs and power costs.

The balance sheet indicated that customer deposits rose by 7.0 per cent to N1.5 trillion in June 2022 as against N1.4 trillion in December 2021. Gross loans stood at N895.3 billion in June 2022 fro N899.1 billion in December  2021. Non-performing loans ratio stood at 4.4 per cent in June 2022 as against 4.3 per cent by June 2021.

Chief Executive Officer, Union Bank of Nigeria Plc, Mudassir Amray noted that following the acquisition of majority shares of the bank by Titan Trust Bank, it has focused on strengthening the core business and improving operational efficiencies across board.

“In parallel, we are going full throttle on integrating the two banks to form a ‘stronger Union’ positioned to deliver value to all stakeholders, leveraging technology and digital innovation. The integration is expected to be completed by the end of the third quarter.

“Since taking the reins as Chief Executive Officer as at June 2nd, 2022, I am confident that the Bank has all the necessary ingredients to be a tier 1 bank.

“As we drive towards a seamless integration in the second half of the year, we remain committed to achieving our business objectives. We are excited about exploiting the synergies from the newly expanded franchise post integration”  Amray said

Seplat Energy Plc grew its pre-tax profit by 238 per cent in the first half to $209.9 million from $62.1 million in 2021. The company also maintained a strong balance sheet with $350 million cash at bank.

In the company’s unaudited results for the six months ended June 30, 2022, revenue for the period under review also appreciated by 71 per cent to $527 million from $308.8 million in comparable period of 2021, with a dividend of $2.5 cents per share declared.

The indigenous energy company also reported a 208.5 per cent rise in gross profit to $274.3 million from $88.9 million in first half 2021. Seplat  has committed to stopping routine flaring by the end of 2024.

Chief Executive Officer, Seplat Energy Plc, Mr Roger Brown said the company’s production increased strongly in the second quarter, achieving 52.4 kboepd across its operations, as it expects to maintain higher volumes for the rest of the year that it plans to export liquids through the more secure Amukpe-Escravos Pipeline.

“Having divested our interest in Ubima because of its high production costs and export difficulties, we recently acquired a 95 per cent interest in the Abiala marginal field and plan to begin operations there next year using existing infrastructure in OML 40. This is consistent with the strategy for low-cost, low-risk upstream growth we announced last year.

“We remain confident that our transformational acquisition of MPNU will be approved, adding significant reserves and production capacity that will strongly reinforce Seplat Energy’s position as Nigeria’s leading indigenous oil and gas producer.   

“We have recently launched a roadmap for decarbonisation, with a clear path to ending routine flaring by 2024. In addition, our ‘Tree for Life’ initiative will plant five million saplings to sequester carbon across five states. All of these initiatives demonstrate our strategic commitment to build a sustainable company that delivers energy transition for the benefit of all Nigerians,”  Brown said.