The Nation Newspaper

Category: Capital Market

Jaiz Bank leads equities’ N485b rebound on recapitalisation success
- N70b capital base target, high dividend excite investors
Nigeria’s premier and largest non-interest bank, Jaiz Bank Plc, was the most sought after stock at the stock market as investors scrambled to take positions in the bank after official confirmation of its recent recapitalisation.

The board of Jaiz Bank announced that the bank plans to scale up its capital base to N70 billion, after it successfully raised additional N10.4 billion new equity capital through a recent private placement.

The new capital brought the bank’s share capital and share premium to N18.7 billion, N1.3 billion below Central Bank of Nigeria (CBN)’s new minimum capital requirement of N20 billion.

Jaiz Bank is one of the three banks with highest relevant minimum capital base, as defined by the CBN. Banks have up till March 2026 to comply with the new minimum capital requirements for their various licenses.

Jaiz Bank was the most active stock at the stock market in a rebound that saw Nigerian equities closing weekend with net capital gain of N485.4 billion.

Transactions on Jaiz Bank accounted for 686.93 million shares valued at N1.49 billion in 955 deals, the highest by any stock for the week. Cutix Plc occupied a distant second with a turnover of 232.07 million shares worth N1.44 billion in 822 deals. FCMB Group placed third with a turnover of 220.7 million shares worth N1.71 billion in 924 deals.

Altogether, the three most active stocks accounted for 1.14 billion shares worth N4.63 billion in 2,701 deals, representing 40.32 per cent and 10.93 per cent of the total equity turnover volume and value respectively.

Total turnover at the Nigerian Exchange (NGX) rose to 2.827 billion shares worth N42.366 billion in 44,277 deals last week as against 2.765 billion shares valued at N85.230 billion traded in 40,796 deals two weeks ago.

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The banking-led financial services sector accounted for more than three quarters of transactions at the market, with a sectoral turnover of 2.179 billion shares valued at N30.667 billion traded in 25,260 deals, representing 77.08 per cent and 72.38 per cent of the total equity turnover volume and value respectively. The industrial goods sector was a distant second with a turnover of 246.921 million shares worth N2.039 billion in 2,068 deals while the oil and gas sector placed third with a turnover of 107.218 million shares worth N1.704 billion in 3,128 deals.

Benchmark indices indicated average gain of 0.87 per cent during the week, equivalent to net capital gain of N485.4 billion. The All Share Index (ASI)-the value-based common index that tracks all share prices at the NGX, rose from its week’s opening index of 99,671.28 points to close at 100,539.40 points.

Aggregate market value of all quoted equities also increased correspondingly from the week’s opening value of N56.441 trillion to close weekend at N56.929 trillion. The market capitalisation was slightly moderated by the delisting of three companies during the week.

The market sentiment was generally positive with more gainers that losers. There were 37 gainers and 34 losers last week compared with 34 gainers and 38 losers recorded in the previous week.

Chairman, Jaiz Bank Plc, Alhaji Mustapha Bintube, last week said the bank plans to grow its capital base to N70 billion by the end of this year.

He pointed out that the bank is also poised for another impressive performance in 2024, noting that half year profit for 2024 had already surpassed the bank’s full-year profit of N11 billion in 2023.

According to him, from its humble beginning of initial capital of N6 billion in 2012, Jaiz Bank has grown consistently to become a dominant ethical bank in the West African region.

Bintube said the bank would continue to reflect its growth in dividend payment to shareholders, promising to increase the dividend payouts in the years ahead.

Managing Director, Jaiz Bank Plc, Haruna Musa, said the bank was working to be the first bank to complete its recapitalisation process.

According to him, the bank would soon launch a public offer to raise additional equity capital.
July 22, 2024
NSIA gives $220,000 prizes to three innovators

The Nigeria Sovereign Investment Authority has given out combined prize value of $220,000 to three winners in the second edition of the NSIA Prize for Innovation (NPI 2.0) held at the weekend in Lagos.

The NSIA announced Sycamore the winner of the second edition of the competition, winning combined prize value of $100,000.

Sycamore emerged winner following an assessment of pitches from 10 innovators to an expert panel of judges drawn from the business and technology eco-system.

The evaluation was based on key metrics including market potential, team composition, traction and competitiveness of the solution proposed. Sycamore, led by Babatunde Akin-Moses is a peer-to-peer lending fintech platform which leverages technology to connect lenders and borrowers. Founded in 2019, Sycamore primarily exists to empower African businesses and propel economic growth by bridging the credit gap with technology.

Kunda Kids – an edtech media company focused on providing well illustrated engaging African inspired digital content to children, parents and libraries globally – followed closely at the second position with a combined prize value of $70,000.

PaveHQ, a learning and career ecosystem that support students to achieve a successful career came third with a total combined prize value of $50,000, bringing total combined prize value to $220,000.

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While speaking at the recently concluded NPI Demo Day, Managing Director & Chief Executive of NSIA, Aminu Umar-Sadiq, shared that ‘the NSIA Prize for Innovation was conceptualised in recognition of the pivotal role that technology plays to shape positive socio-economic outcomes, strengthen multiple sectors, significantly expand opportunities across multiple sectors and re-position homegrown talent for global relevance.

Now in its second year, it has so far received commendable attention from the tech eco-system as the registration of credible start-ups across Nigeria to join the programme has grown from 2,000 to over 7,000 entries within the current year.

The NPI programme validates the Authority’s commitment to propel innovation, support entrepreneurship and position young Nigerians within the technology eco-system for global relevance. This year, the programme has been expanded to include a five-week all-expense paid training at Draper University, Silicon Valley USA, to enable all top ten innovators expand their horizon and potentially deliver solutions on global platforms.

The NSIA Prize for Innovation is the Authority’s multi-year commitment to identify and nurture early stage innovative businesses within the tech ecosystem to create sustainable positive impact. It adopts a four-stage competition process to catalyse investments for early-stage businesses.

July 22, 2024
Impact investors hold summit

The Africa Social Impact Summit (ASIS) 2024,with the theme: “Reimagining Progress: A New Blueprint for Sustainable Growth in Africa,” set for July 25 and 26 at the Eko Convention Centre, is the definitive event for impact investors aiming to contribute meaningfully to Africa’s sustainable development.

Scheduled for July 24, the ASIS investor roundtable offers a unique opportunity for investors to engage with top entrepreneurs, innovative startups, and leading development organisations. This pre-event is designed to encourage dialogue and collaboration, paving the way for impactful investments.

Africa’s social impact space is burgeoning with opportunities. From healthcare and education to climate action and financial inclusion, the continent presents fertile ground for investments that yield both financial returns and social benefits. ESG principles and impact investing are not mere trends but essential components of sustainable development in Africa.

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Investors are increasingly recognizing the value of ESG (Environmental, Social, and Governance) criteria in driving sustainable business practices. Green bonds, in particular, offer a promising avenue for funding environmentally friendly projects, aligning financial goals with social responsibility.

“Impact investing is crucial for addressing Africa’s development challenges. ASIS 2024 offers a platform for investors to connect with transformative projects and initiatives that align with ESG principles. It’s an opportunity to drive significant social change while achieving sustainable financial returns,” stated Olapeju Ibekwe, CEO of Sterling One Foundation.

ASIS 2024 promises to be a landmark event, attracting over 5,000 registrants from 70+ nationalities. With 50+ speakers and 20 deal room finalists, the summit is set to highlight the most innovative and impactful ventures in Africa.

July 22, 2024
FMDQ Vice Chair becomes a stockbroker

Vice Chairman, FMDQ Group Plc, Dr. Jibril Aku, has joined the league of securities professionals, popularly called stockbrokers in Nigeria, with his induction as an Associate Member of Chartered Institute of Stockbrokers (CIS).

Addressing the participants at the Induction Ceremony at the Institute’s Chamber in Lagos, President, Chartered Institute of Stockbrokers (CIS), Mr Oluropo Dada, described Aku’s induction as symbolic.

According to him, it helps to elevate professional inclusion and promote unity among the operators in the capital market community in Nigeria. He reiterated the importance of integrity in the securities and investment industry, aligning it with the principle of “My word is my bond” and advised Aku to uphold this standard in his new role.

He encouraged Aku to join some committees within the institute to leverage his extensive experience to advance the securities and investment profession in Nigeria.

Dada applauded Aku for his excellent disposition to studies as a trainee stockbroker, saying despite his exalted position and accomplishments in the society, he passed the institute’s professional examination.

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Responding, Aku, expressed gratitude to the Institute. Hestated that he had the option of receiving the honorary CIS membership but decided to take the examination route to ensure that he is an active participant in the task of bringing the money and capital market together for more liquidity in the capital Market, describing this as the last stage that needs to be achieved to increase liquidity in the capital market – a market with potential to be several times bigger than the banks in terms of volume and value of transactions.

“The curriculum of CIS is more weighted towards bonds and fixed incomes trading rather than equity but dealers are sitting on the equity side and ignoring the other side. The older ones might not want to convert but we have the younger ones and we should not let them go the way of the older ones. We have to find a way to create that bridge,” Aku said.

In attendance at the ceremony were the Institute’s 1st Vice President, Mrs Fiona Ahimie, 2nd Vice President, Dr Akeem Oyewale and the Registrar and Chief Executive, Mr Josiah Akerewusi.

July 22, 2024
Regulators, stakeholders urged to collaborate on ESG

As Nigeria continues on the adoption of environmental social governance (ESG) principles, sector regulators, businesses, and stakeholders have been urged to collaborate effectively in the attainment of sustainable development goals.

Director-General of the Securities and Exchange Commission, Dr. Emomotimi Agama stated this during the Regional Training and Capacity Building programme for securities regulatory authorities in Luanda, Angola recently.

ESG principles represent a set of criteria that socially conscious investors and stakeholders use to evaluate a company’s operations and impact on society and the environment

The SEC DG stated that issuing clear guidelines, building capacity, and monitoring disclosures will ensure that the adoption of ESG principles translates into tangible benefits for the environment, society, and the economy.

“As Nigeria continues to develop economically, integrating ESG principles not only helps mitigate risks but also enhances long-term resilience and contributes to sustainable development goals.

“Through these efforts, Nigeria not only mitigates risks but also positions itself as a responsible and attractive destination for sustainable investments, contributing significantly to the global sustainable development agenda” he stated.

Agama said that ESG considerations in Nigeria are gaining traction as businesses and stakeholders recognize the importance of sustainable practice due to significant environmental challenges, including pollution, deforestation, erosion, flood and waste management issues adding that companies are adopting practices such as renewable energy investments, water conservation, and eco-friendly manufacturing processes to mitigate environmental impact.

“On the Social angle, companies are focusing on community engagement, labor rights, and diversity. Companies are encouraged to promote fair labor practices, support local communities through CSR (Corporate Social Responsibility) initiatives, and inclusive workplaces.

“Governance is crucial for transparency and accountability. Nigerian companies are improving board diversity, enhancing corporate governance structures, and adhering to regulatory requirements to build trust with stakeholders” he stated.

The SEC DG said ESG initiatives play a crucial role in promoting sustainable development in Africa for several compelling reasons such as Environmental Conservation, Social Impact, Governance and Transparency, Resilience to Climate Change, and Attracting Responsible Investments and Compliance with International Standards.

He stated that the current landscape of ESG in Africa is evolving rapidly, driven by various factors including regulatory developments, investor demand, and local initiatives and disclosed that challenges to widespread ESG adoption in Africa include: Limited awareness, Capacity constraints and Varying regulatory environments across countries.

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Agama however said that, these challenges present opportunities for: Capacity building, Knowledge sharing andCollaboration among stakeholders to drive sustainable development.

The SEC Boss said that the Securities and Exchange Commission (SEC), Nigeria issued rules and guidelines that listed companies must follow regarding corporate governance practices, including disclosure requirements related to sustainability and ESG factors.

According to him, “The SEC regulates the Nigerian capital market and plays a pivotal role in setting guidelines for sustainability disclosures. In 2021, SEC approved the Guidelines on Sustainability Financial Principles for the Nigerian Capital Market. The objectives of the guidelines include to stimulate a resilient, competitive and sustainable capital market, and to improve corporate governance practices.

“The guideline requires public interest/ listed entities to integrate ESG considerations into their operations and decision-making processes to avoid, minimize or offset negative impacts.

“The Guidelines set out 5 Principles for entities in the capital market: Environmental, Social, and Governance (ESG) Considerations, Collaborative Partnership and Capacity Building, Financing of priority sectors of the economy, Human rights, women’s economic empowerment, job creation, and financial inclusion and Reporting and Disclosures” he said.

July 22, 2024
Why Zenith Bank enjoys high investors’ confidence, by Umeoji
- N230b offer underway
Zenith Bank Plc’s track records of sustained growths and superior returns to investors have endeared the financial services group to the investing public.

Group Managing Director, Zenith Bank Plc, Dr. Adaora Umeoji, said the bank’s growth plans, strategic goals and historical market performance are attractions to investors.

At an interactive session with capital market stakeholders and investors, Umeoji outlined that the group would rely on its track records at the stock market and its operational performance as it embarks on recapitalisation drive.

According to her, with its solid risk management practices, regulatory compliance, capital adequacy, and low levels of non-performing loans, Zenith Bank would easily achieve its recapitalisation targets.

Umeoji highlighted the bank’s robust financials, including tier-1 capital of N1.8 trillion, shareholders’ funds of N2.3 trillion, market capitalisation of N1.3 trillion, and a profit after tax of N796 billion for the year ended December 2023.

She said the bank remains confident in its ability to deliver superior value to investors, owing to a high-quality board, strong management, and a solid corporate culture.

She also outlined future plans to promote financial inclusion, expand corporate and retail banking through advanced technology, and establish a fintech subsidiary, ZenPay, to drive profitability. Additionally, the bank aims to expand into France and the Francophone African region.

“Zenith Bank is set to raise capital from the market, targeting N230 billion, with N270.7 billion already secured, making it the least amount to raise among peers. We possess the capacity, network, balance sheet, human capital, and track record to achieve this. Our advanced technology will ensure seamless processes and integration,” Umeoji said.

Chief Financial Officer, Zenith Bank Plc, Dr. Mukhtar Adam pointed out that the bank’s compound annual growth rate (CAGR) in revenue has exceeded 27 per cent over the past five years.

“This growth continues annually. Despite Nigeria’s recession during this period, we maintained growth. Over the past five years, our profit before tax has grown by about 28 per cent,” Adam said.

Executive Director, Zenith Bank Plc, Dr. Henry Oroh highlighted the bank’s digital transformation and future direction with focus on financing small and medium enterprises and trade.

“We are investing in technology to build world-class solutions that enhance customer experience and market penetration. We are also addressing cyber-security issues by developing a network of tech products with zero vulnerabilities, including firewalls and other protections,” Oroh said.

Key extracts of the audited results and accounts for the year ended December 31, 2023, Zenith Bank achieved a significant growth of 125 per cent in gross earnings, from N945.6 billion in 2022 to N2.132 trillion in 2023. This growth resulted in a 180 per cent increase in profit before tax, from N284.7 billion in 2022 to N796 billion in 2023, and a 202 per cent increase in profit after tax, from N223.9 billion to N676.9 billion.

The increase in gross earnings was driven by growth in interest and non-interest income. Interest income rose by 112 per cent, from N540 billion in 2022 to N1.1 trillion in 2023, while non-interest income grew by 141 per cent, from N381 billion to N918.9 billion. The growth in interest income was due to the expansion of risk assets and their effective repricing, as well as higher yields on interest-bearing instruments. Non-interest income growth was driven by significant trading gains and foreign currency revaluation gains.

Zenith Bank’s cost of funds rose from 1.9 per cent in 2022 to three per cent in 2023 due to a high interest rate environment, while interest expenses increased by 135 per cent, from N173.5 billion in 2022 to N408.5 billion in 2023. Despite a 32 per cent increase in operating expenses in 2023, the Group’s cost-to-income ratio improved significantly from 54.4 per cent in 2022 to 36.1 per cent in 2023, thanks to improved top-line performance. Return on Average Equity (ROAE) increased by 118 per cent, from 16.8 per cent in 2022 to 36.6 per cent in 2023, driven by higher gross earnings. Return on Average Assets (ROAA) also grew by 95 per cent, from 2.1 per cent to 4.1 per cent.

Zenith Bank recently won the Best Commercial Bank, Nigeria, at the World Finance Banking Awards 2024 for the fourth consecutive year. The bank also received the Best Corporate Governance, Nigeria, award for the third year running. These awards, published in the Summer 2024 issue of World Finance Magazine, recognised the bank’s financial performance, customer service, sustainability initiatives, and corporate governance practices.

Umeoji said the awards reflected the group’s commitment to excellence, adherence to global best practices, and dedication to delivering superior value through innovative products and services.

“Our consecutive awards demonstrate the dedication of our staff, the loyalty of our customers, and the support of our shareholders. We remain committed to setting industry benchmarks and driving excellence across all operations,” Umeoji said.

She dedicated the awards to Founder and Chairman Dr. Jim Ovia, CFR, for his leadership, and expressed gratitude to the board, staff, and customers. World Finance provides comprehensive coverage and analysis of the financial industry, international business, and the global economy.

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Established in May 1990, Zenith Bank began operations in July 1990. The bank became a public limited company on June 17, 2004, and was listed on the Nigerian Stock Exchange (NSE) on October 21, 2004, following a successful initial public offering (IPO). In 2013, the bank listed $850 million worth of shares at $6.80 each on the London Stock Exchange (LSE). Headquartered in Lagos, Nigeria, Zenith Bank has over 400 branches and business offices across all states of Nigeria and the Federal Capital Territory (FCT).

Founded by Jim Ovia in 1990, Zenith Bank has grown into one of Africa’s leading financial institutions. The bank’s philosophy is to remain customer-centric with a clear understanding of its market and environment. Zenith Bank’s excellent performance has earned numerous awards, including being recognised as the Number One Bank in Nigeria by Tier-1 Capital for the 14th consecutive year in the 2023 Top 1000 World Banks Ranking, published by The Banker Magazine; Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards for 2020 and 2022; and Most Sustainable Bank, Nigeria, in the International Banker 2024 Banking Awards.

In March 2007, Zenith Bank was licensed by the Financial Services Authority (FSA) of the United Kingdom to establish Zenith Bank (UK) Limited. The bank also has subsidiaries in Ghana, Sierra Leone, The Gambia, and a representative office in China. The bank plans to expand further into Africa, Europe, and Asia.

Zenith Bank has been a pioneer in digital banking in Nigeria, deploying Information and Communication Technology (ICT) infrastructure to create innovative products that meet customer needs. The bank is a leader in deploying various banking technologies, and the Zenith brand is synonymous with state-of-the-art banking technologies. Driven by excellence and global best practices, the bank combines vision, banking expertise, and cutting-edge technology to create products and services that meet customer expectations, enable businesses to thrive, and grow customer wealth.

As Zenith Bank prepares to launch its capital-raising drive and complete its transition to a holding company structure, these initiatives are expected to position the bank to explore emerging market opportunities, enhance its digital and retail banking initiatives, and deliver superior value to stakeholders.
July 16, 2024
Afreximbank increases share capital to $25b

Shareholders of African Export-Import Bank (Afreximbank) has increased the bank’s authroised capital from $ 5 billion to $25 billion.

At the annual general meeting of the bank, shareholders voted to increase the authorised share capital in recognition of the rapid growth of the bank and in response to the challenges facing the African continent.

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President, African Export-Import Bank (Afreximbank), Prof Benedict Oramah said the increased authorised share capital creates capacity for the bank to support the growth and development envisaged for the African continent in line with its mandate to promote the continent’s trade and affirm its relevance on the global stage.

“The overwhelming endorsement by shareholders of the historic increase of the bank from $5 billion to $25 billion reflected their firm belief and trust in the board and management of the bank and in the bank’s mission. This move gives us the necessary headroom to mobilise the capital we need to create a bank that serves all Africans,” Oramah said.

July 15, 2024
SEC, AfDB build capacity on green finance

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) and African Development Bank (AfDB) are set to host a capacity building workshop for capital markets operators on green finance.

This strategic initiative, funded by the Capital Markets Development Trust Fund (CMDTF) administered by the AfDB, aims to fortify Nigeria’s position as Africa’s leading hub for green and sustainable finance and it is being facilitated by Climate Transition Limited.

The workshop, scheduled for next week in Lagos, is a vital step in consolidating these gains and ensuring the Nigerian capital market meets the goal of becoming Africa’s deepest and most liquid capital market, contributing to the nation’s socio-economic development.

Over the past decade, the Nigerian capital market has experienced substantial growth, marked by increased activities in both equity and bond markets. In alignment with global sustainability mandates, the SEC launched rules for green bonds issuance in December 2018, creating a conducive environment for green finance.

Director-General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama said SEC remains committed to fostering a sustainable financial ecosystem in Nigeria.

According to him, the workshop is part of the Commission’s broader strategy to integrate green finance into our capital markets and attract more sustainable investments.

“By enhancing the capabilities of our market operators, we are not only promoting environmental stewardship but also driving long-term economic growth,” Agama said.

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He outlined that the primary objective of the workshop is to enhance the knowledge and understanding of capital market operators regarding green finance.

He noted that by developing the necessary skills and competencies, the workshop aims to promote collaboration and networking among stakeholders; support regulatory compliance with SEC’s rules; attract more sustainable investments and integrate environmental, social, and governance (ESG) factors into investment strategies.

He added that the workshop would also enhance the reputation and credibility of capital market operators and facilitate funding for innovative, environmentally friendly projects driving sustainable economic growth.

Co-Founder and Executive Director, Climate Transition Limited, Olumide Lala, said the transition to a green economy is essential for Nigeria’s sustainable development, and green finance is a critical component of this transition.

“This workshop will provide market operators with the tools they need to drive this change and contribute to a more resilient and sustainable economy,” Lala said.

The event will draw delegates from various sectors of the financial ecosystem, including investors, issuers, regulators government agencies and market intermediaries among others.

Participants in the workshop will gain several key benefits, including: Diverse Expertise: Enriched discussions and learning experiences from a diverse group of participants; Comprehensive Understanding; Insight into the entire green finance ecosystem, from regulatory frameworks to investment strategies and Networking Opportunities.

Other benefits are fostering collaborations and partnerships with key players across various segments of the financial market; regulatory insights: direct interaction with regulators for clarity on compliance and regulatory expectations; innovative practices: exposure to emerging trends and strategies in green finance; Insights into upcoming policy changes and opportunities to influence future green finance policies and sharing best practices and strategies to overcome barriers, contributing to the growth of Nigeria’s green finance market.

July 15, 2024
New mutual fund for high networth investors

United Capital Asset Management Limited has launched a new mutual fund aimed at ensuring stable returns to value investors.

The new mutual fund, known as United Capital Stable Income Fund, is a specialised, open-ended, naira-denominated mutual fund that invests in a diversified portfolio of money market and fixed-income securities including government bonds, corporate bonds, and other fixed-income securities.

United Capital Asset Management, a subsidiary of United Capital Plc, the only publicly quoted investment banking company, designed the new fund as a low-risk investment product aimed at providing investors with stable returns over a medium to long-term period while ensuring the preservation and protection of their capital.

Managing Director, United Capital Asset Management Limited, Odiri Oginni said the new fund underscores the company’s commitment to delivering innovative and reliable financial solutions for investors.

“We are thrilled to introduce the United Capital Stable Income Fund, the latest fund in the array of our mutual fund offerings, to the investing public. This fund was created in response to the growing market demand for low-risk investment options that offer stability and consistent returns, especially amidst current market volatility. It offers a well-diversified portfolio and is specially designed for investors who prioritise capital preservation and steady growth, ensuring that investors can achieve their financial goals with confidence and peace of mind.

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“We are confident that the fund will perform excellently in the market. It is professionally managed by top-tier portfolio managers who use innovative strategies, thorough market research, and analysis of pricing trends, to ensure the fund performs optimally,” Oginni said.

According to her, in addition to capital preservation and consistent returns, the new fund offers investors annual dividends and an opportunity to invest in a diversified portfolio aimed at providing competitive yield, liquidity, and safety.

With a minimum investable amount of N50 million and a minimum subscription of 500,000 units and multiples of 100,000 units thereafter, the fund targets qualified institutional investors and high net worth individuals (HNIs) as defined by the Securities and Exchange Commission (SEC) rules.

July 15, 2024
Oyetola to position Nigeria as major seafood exporter
- Norway seeks fish inclusion in duty-free baske
Minister of Marine and Blue Economy, Gboyega Oyetola, at the weekend pledged to leverage the nation’s abundant marine resources and positions it for a prominent role in the global seafood market.

Oyetola, who gave the pledge during a one-day interactive workshop with stakeholders and regulatory authorities involved in stock fish and seafood imports and exports trade in Nigeria, said the country is a significant player in the global seafood market, with a large demand for fish and fisheries products, adding however, that the country faced a substantial demand-supply gap, with a significant portion of her seafood needs met through imports. “Nevertheless, we have immense potential in the Blue Economy, with a thriving fishing industry, abundant marine resources, and a strategic location,” the minister said.

Also, Ambassador of the Royal Norwegian Embassy to Nigeria, Svein Baera, commended the Federal Government’s “150-Day Duty-Free Import Window for Food Commodities” and sought the inclusion of stock fish on the list considering its rich nutritious value and contribution to the health of the people. “This action is undeniably positive,” he said.

Commenting on the zero import duty on stock fish request by the Norwegian Seafood Council’s request, he said: “The ministry recognises fish as a vital part of the Nigerian diet and will seek its inclusion in zero-duty programmes. However, our ultimate goal remains to grow Nigeria’s fish production.”

According to Oyetola, Nigeria’s seafood production process for export involves an intricate value chain, starting with capture fisheries, where artisanal and industrial fleets harvest a diverse range of species, including shellfish (shrimp, lobsters, crabs), snails, sole fish, croaker, and others from the country’s territorial waters and Exclusive Economic Zone.

“Aquaculture has also played a significant role in increasing seafood supply to meet growing national and global demand, with catfish being the most prominent aquaculture product for export,” he added.

Represented by the Permanent Secretary of the Ministry, Mr. Olufemi Oloruntola , in a paper, entitled: “The Potential of Nigeria’s Seafood Industry: A Focus on Sustainability and Growth,” the minister underscored the immense potential of the sector to drive economic development, enhance food security, and create jobs across the country.

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“Nigeria’s strategic location and rich marine resources provide a solid foundation for this ambitious goal,” he said.

The gap between high domestic demand for fish and lower domestic production, necessitating, he said, “presents a significant opportunity for growth across the entire seafood value chain, encompassing capture fisheries, aquaculture, processing, packaging, and transportation.”

The minister emphasized the government’s priority to grow domestic fish production. “We’re actively seeking cooperation and partnerships to improve fish production in Nigeria and the Norwegian Seafood Council’s stability makes them a valuable partner for us,” he said.

On encouraging fish import companies to invest in local production, Oyetola explained, “Fish importation is a big business, and the government is encouraging, or better yet, compelling those involved to also invest in local fish production.

“We’re reviewing the fish import quota process to incentivize investment in domestic production. The goal is to gradually decrease imports and increase local production. We have abundant resources to produce fish, and the government wants to deepen local production for the benefit of our people and the economy. This will position us to become a major exporter of fish ourselves.”

He said the creation of the dedicated Federal Ministry of Marine and Blue Economy exemplifies the government’s commitment to achieving self-sufficiency in fish production and transforming Nigeria into a major seafood exporter. “This commitment extends beyond mere production increases,” the minister stated.

Oyetola stressed the crucial role of sustainable practices in ensuring the long-term health of marine ecosystems, aligning perfectly with the growing global demand for responsibly sourced seafood.

He acknowledged the valuable contributions of partners such as the Norwegian Seafood Council in capacity development and food security initiatives. He however called for even greater collaboration between the government, private sector stakeholders, and international partners. “Through a unified effort, Nigeria has the potential to unlock its vast marine resources and emerge as a leading force in the global seafood industry, ensuring a prosperous, sustainable, and globally competitive sector for generations to come.”

Earlier in his speech, Ambassador Baera commended the strong record of cooperation between Nigeria and Norway during a seafood seminar.

“This conference addressed the crucial issue of supporting women-led businesses in Nigeria, specifically focusing on facilitating their export of goods to other African nations. The UNDP is leading this commendable initiative, and the Permanent Secretary himself delivered an address at the event. This important engagement is the reason for his delayed arrival, and we are pleased to have him join us now.”

Baera expressed his support for the Federal Government’s recent decision to establish a duty-free window for specific food items.

The Ambassador focused his remarks on the importance of stockfish within the context of the seminar. “This initiative holds particular significance for many Nigerian families facing food insecurity. Stock fish serves as a vital source of protein at an affordable price. Unfortunately, recent currency fluctuations have negatively impacted affordability for many families. Therefore, the inclusion of stock fish on the duty-free list would be a highly beneficial measure,” the envoy said.

Fisheries Consultant to the Norwegian Seafood Council, Mrs. Cheke Abiodun Oritsejemine, amplified the push for zero duty on stock fish. “Stockfish is one of the cheapest sources of protein available. Over five million Nigerians rely on importing, buying, and transporting this product,” she said.

Oritsefemiro also addressed backward integration in fish production. “The Norwegian Seafood Council is ready to assist Nigeria in boosting fish farm exports. We’re working to remove the purported ban on Nigerian fish farm products in the EU and Americas.

“We began training programs in 2022 for fisheries officers and aquaculture farmers to address quality assurance, sustainability, and current standards in fish farming. Part of our social responsibility is to educate stakeholders involved in stock fish import on the regulations to ensure compliance,” she said.

Oritsefemiro concluded by attributing the drop in stock fish imports to currency exchange rates. “Stockfish is a necessity for many Nigerians. If it becomes too expensive, people won’t be able to afford it. This is why we’re urging the Nigerian government to include stock fish in the zero-duty program for the next six months,” she said.
July 15, 2024