The Nation Newspaper

Category: Equities

  • Acquiring entrepreneurial skills for fiscal stability

    Acquiring entrepreneurial skills for fiscal stability

    The seeming norm of the congregation taking care of the church has transmuted to the church recognising a pressing need to reciprocate efforts of the parishioners in lifting it. The church now gives back to its members and the wider community. This giving back takes the form of establishing avenues for skills development. The all-embracing goal is to promote exceptional individuals who, in turn, will contribute to lifting humanity and fueling economic growth. AMBROSE NNAJI reports

    Going by the current realities when degree certificates do not guarantee acquisition of white-collar jobs, efforts are being channeled to skills acquisition through which those who graduated from universities could be self-employed and financially independent.
    The government at all levels; corporate entities and individuals have been at the forefront of tracking this new reality. The youth have been empowered through these gestures.
    When it was thought that providing job opportunities and giving empowerment to the people; whether in the circular or ecclesiastical milieus, squarely rests on the shoulders of the people in the government, the Church has joined the fray.
    In the circumstances, the Saints Peter and Paul Catholic Church in Oke-Afa, Ejigbo area of Lagos has initiated an eight-week skills acquisition programme for the local community.
    The church, in collaboration with Reli Communications, aims at empowering individuals who will subsequently give back to society, by actively contributing to the advancement of humanity.
    The initiative stems from Reli Communications Limited, specifically through its offshoot, Reli Entrepreneurship Advocacy, which is committed to fostering entrepreneurship, generating employment opportunities for youths and combating poverty.
    Through this, the church authorities decided to make an option for the poor; which is “an option in the sense of being a conscious choice to be in solidarity with those who are underprivileged, marginalised or disrespected and to work for structural change to transform the causes of poverty and marginalisation.”
    The church also recognised that skills development helps people get better jobs by improving existing skills or learning new ones. This includes improving communication skills with colleagues; problem-solving skills; reading faster and making better decisions, among others.
    This kind of development, the church reasons, “does not come by chance but through the process of acquiring new skills. It can either be formal or informal, and it’s a lifelong process.”
    Experts in the economic circle have argued that “skills are needed to keep up with the changing world. The pace of change is so rapid that people need more skills to compete in the job market and succeed in life.
    “Skills development is vital for economic growth and social stability One may wonder the correlation between skills development and economic growth, unemployment and social stability.”
    Now in its second edition, the programme is open to individuals of all ages and backgrounds and women, graduates and non-graduates alike. It offers training in 10 diverse entrepreneurial skills, including information technology, business management, catering, household production, digital marketing, video and photography, music and music production as well as sewing and fashion designing, among other areas. Over 500 trainees have participated in this edition.
    In a chat with reporters, the Assistant Parish Priest of Saints Peter and Paul Catholic Church, Oke-Afa Rev. Fr Moses Ojobo said: “The goal of the programme is for the trainees to become exceptional individuals who utilise their skills and talents to make contributions to society, enhancing the human experience and blessing humanity through their crafts.”
    Fr Ojobo emphasised that “the training initiative signifies an effort to give back to the parish, the community and its people and the parishioners. He also stressed the collaborative partnership with Reli Communications, which, he said, was aimed at encouraging individuals within the church who will positively impact society and contribute to the well-being of humanity.

    Read Also: Uzodimma empowers 15,000 youths in digital skills 


    The cleric stressed the notion that people possess diverse skills, and it’s crucial to find ways to harness these God-given talents and skills to uplift those around them.
    With regard to the entrepreneurship and skills acquisition programme, he said it offers an opportunity for parishioners, local residents and society to benefit by acquiring crafts that can improve their lives.
    Fr. Ojobo stressed the need for the church to give back to its members and society through empowerment programmes. He also admitted that “while the government plays its role, individuals should not passively wait for the government’s deficiencies in intervening in situations where the poor are not catered for.”
    He stated that “God has a purpose for everyone, and to manifest that purpose, individuals must tap into their capacities. There is a need to build capacity to enable the grace of God to work in harmony with one’s nature when engaging in meaningful endeavours.”
    The Chief Executive Officer (CEO) of Reli Entrepreneurship Advocacy, Emma Anyagwa stressed the proactive role of the Grooming Centre, an organisation that has been championing entrepreneurship in schools and among the youth for over half a decade. Anyagwa decried the lack of entrepreneurship as a formal course in many universities, even as he condemned the government’s lack of commitment to promoting entrepreneurship.
    Anyagwa said the Catholic Church and the Entrepreneurship Advocacy have collaborated in the initiative not only to support self-employment but also to demonstrate practical ways it can be achieved.
    He emphasised that creating employment and alleviating poverty do not always necessitate immense financial resources, but rather require practical, achievable, realistic and sustainable steps.
    To bridge this gap, Anyagwa stated that about 500 youths from the church and community have received training in job creation and gainful employment, adding that the programme was aimed at creating wealth and providing employment opportunities.
    He said the church and the entrepreneurship group are collaborating with organisations that offer loans to aspiring entrepreneurs, providing guidance on the appropriate use of the funds to benefit their businesses. Anyagwa urged organisations, the government and individuals to join in the effort of empowering the less privileged towards self-employment, emphasising that poverty alleviation requires a collective effort to create wealth and reduce crime in society.
    He also encouraged parents to enable their children to learn at least one skill, especially during holidays, to ensure a productive transition into the workforce after their academic pursuits.
    The Chairman/CEO of the Grooming Centre and sponsor of the event, Dr. Godwin Nwabunka said the event is to commemorate the significant event of empowering young people, particularly women, facilitated by Reli Group and Saints Peter and Paul, Oke-Afa.
    He said the Grooming Centre has always been dedicated to empowering the less privileged and resourceful individuals, providing them with the necessary support to realise their potential. This vision, he added, aligns with the purpose of the event and is delighted to share the vision with the organisers.
    Represented by Luis Orioha, who is in charge of Business Sustainability, the Chairman encouraged the trainees to carve out a niche for themselves.
    He urged the youth to offer exceptional services or products that will allow them to command a premium, adding that individuals seeking their services will be willing to pay that premium.
    “Within our portfolio, we offer various products-catering to market women, artisans and other groups.”
    He said the organisation empowers individuals by providing financial support and guidance.
    “For this programme, we have provided general support and we remain open to further support based on specific needs and requests,” he said.
    On government involvement, Orioha, said: “The organisation preferred not to solely rely on government’s intervention, adding that blaming the government for various challenges is easy. As entrepreneurs, we believe in our abilities and what we can achieve. Thus, we emphasise that trainees put in their best effort. Doing so attracts support from individuals and entities, including the possibility of securing loans for those deserving based on their merits.”
    On what he called a primary challenge, Orioha said it lies in sincerity and commitment.
    “When individuals display sincerity and commitment to their endeavours, it sets a positive tone for the journey. We invest in people, providing loans at very reasonable rates, lower than what others typically offer. However, if sincerity and commitment are lacking, the outcome may not be favourable.
    “We have numerous success stories of individuals who, through our empowerment programmes, grants and loans have excelled. These success stories keep us motivated and committed to our mission.
    “Everyone possesses capabilities and potential; it’s the determination to be creative, to tap into resources within oneself and to harness the support available from various sources, including churches, individuals, organisations and even the government that sets individuals on a path from consumption to production.”
    Expressing her support for the initiative, the Divisional Police Officer (DPO) of Ejigbo, Lagos, a Chief Superintendent of Police (CSP), Mariam Shonubi declared her commitment to encouraging the youth in her capacity as a senior police officer and a mother.
    She stressed the responsibility of safeguarding lives, properties and the overall well-being of the community, highlighting that God is the ultimate source of security.
    She pledged to participate in one of the training days to motivate the youth and share her experiences.
    Shonubi emphasised the significance of starting from humble beginnings and using one’s experiences to progress. She encouraged the youth to believe in themselves, maintain focus and advance by having faith in God.
    The Secretary of the Parish Pastoral Council (PPC) of the church, Chinaka Richard acknowledged the foresight of the Parish Priest in initiating the programme.
    “This programme is truly outstanding, and we extend our gratitude to the sponsors, especially the Grooming Centre, who have consistently been a pillar of support whenever we needed them,” Richard said.
    He said the programme is monumental and has become an integral part of the parish.
    “We believe that, in time, we will all harvest the benefits of this initiative,” Richard stated.
    He commended the organisers of the initiative, particularly Reli Communications and their team.

  • Wema Bank, Wakanow partner on ALAT integration

    Wema Bank, Wakanow partner on ALAT integration

    Wema Bank’s ALAT has partnered  Wakanow to integrate digital banking and seamless flight bookings through the former’s platform.

    According to Wema Bank, the partnership aims to revolutionise banking and financial services by offering Nigerians a seamless way to book local and international flights at a discounted rate.

    Executive Director, Lagos Directorate at Wema Bank, Oluwole Ajimisinmi, expressed the bank’s optimism at the prospect of partnering an industry-certified brand like Wakanow.

    He addid that with the deal, customers that book their flights on ALAT would get a cashback of 0.5 per cent within a three-month timeline.

    Read Also: Wema Bank to raise N40b new equity funds from shareholders

    “By merging the functionalities of our digital banking platform ALAT and Wakanow flight bookings, we are enabling Nigerians to have all their financial and travel needs met in one place. This collaboration reflects our commitment to constantly deliver innovative solutions that enhance our customer convenience and satisfaction, he said.

    CEO, Wakanow Nigeria, Adenike Macaulay, stated that the partnership is not just a convergence of banking and travel services but also a testament to Wakanow and Wema Bank’s shared vision of leveraging technology to enhance the lives of customers.

    “We take immense pride in being a leading travel technology company in Africa, dedicated to democratizing travel and simplifying access for all. Our collaboration with Wema Bank’s ALAT is a testament to our commitment to working with the banking sector to achieve this goal. We are thrilled about this partnership and look forward to forging more innovative alliances, both within and outside the banking sector,” Adenike stated.

  • How can avert debt crisis, by IMF

    How can avert debt crisis, by IMF

    The International Monetary Fund (IMF) has suggested key steps to be taken by Nigeria and other Sub-Saharan economies to avert debt trap.

    Data from the Debt Management Office (DMO) shows that Nigeria’s total debt stood at $113.4 billion (N87.3 trillion) as at June 30. 

    As of last December 31, the total public debt stock was N46.25 trillion (or $103.11 billion). The naira devaluation had spiked Nigeria’s debt position to current level. 

    The fund advised Nigeria and other economies within the region to establish clear debt goals that balance debt sustainability with development objectives, rather than just focusing on short-term deficits.

     “In many sub-Saharan African countries, fiscal policy often prioritises short-term goals without a clear long-term plan. This lack of planning leads to frequent breaking of fiscal rules and a growing public debt,” it stated.

    Also, African countries should undertake fiscal adjustments to bring debt back to a safer level.

    Analysis by IMF staff noted that many countries in the region must cut their budget shortfalls in the years ahead. For the average country, the amount of adjustment is about 2 to 3 per cent of GDP.

    “On the other hand, a few countries have very large adjustment needs; for them, it is unlikely that fiscal consolidation alone will be enough to ensure fiscal sustainability. It may need to be complemented by debt reprofiling or restructuring,” it said.

    The IMF also suggested that Sub-Saharan African countries should be non-reliant on expenditure cuts to reduce their fiscal deficits. Although this may be warranted in some circumstances, revenue measures, like eliminating tax exemptions or digitalising filing and payment systems, should play a greater role.

    The Britton Wood financial institution argued that mobilising domestic revenue is less detrimental to growth in countries where initial tax levels are low, whereas the cost associated with reducing expenditures is particularly high given Africa’s large development needs.

    The fourth measure is to strengthen budget institutions to improve the implementation of fiscal plans as they help countries avoid budgetary slippages, as well as decrease the risk of extra-budgetary commitments, which are widespread in the region.

    Read Also: IMF: Nigeria, others can avert debt crisis

    Lastly, the IMF emphasised that public acceptance should be a central consideration in policy design – for instance, by sequencing reforms carefully and introducing compensatory measures.

    The IMF said the average debt ratio in sub-Saharan Africa has almost doubled in just a decade—from 30 per cent of Gross Domestic Product (GDP) at the end of 2013 to nearly 60 per cent of GDP by the end of 2022.

    It explained that while the debts were rising, repayment costs have also spiked.

    The IMF  revealed that the region’s ratio of interest payments to revenue, a key metric to assess debt servicing capacity and predict the risk of a fiscal crisis, has more than doubled since the early 2010s and is now close to four times the ratio in advanced economies.

    As of 2022, over 50 per cent of the low-income countries in sub-Saharan Africa were assessed by the IMF to be at high risk or already in debt distress.

    To avoid a looming debt crisis in the region the IMF identified five policy actions African governments can take to preserve public finances’ sustainability while also achieving the region’s development goals.

  • World’s investor week focuses on sustainable investments

    World’s investor week focuses on sustainable investments

    Investment regulators and stakeholders across the world yesterday began a week-long campaign to promote sustainable investment and enhance investors’ protection amidst changes in the global securities market.

    The 7th annual World Investor Week (WIW) is focusing on three main themes of investor resilience, crypto assets and sustainable finance. Additional themes explore frauds and scams prevention, basics of investing, technology and digital finance. Also, countries have identified other topics relevant to their local campaigns.

    Chairman, Board, International Organisation of Securities Commission (IOSCO), Mr. Jean-Paul Servais, said WIW campaign is a key practical initiative through which IOSCO is supporting investor education and protection.

    According to him, the main themes of WIW 2023 are an integral part of the IOSCO priorities regarding investor protection and sustainable and digital finance.

    “The WIW theme on sustainable investment in the field of investor education builds on IOSCO’s achievements regarding sustainable finance, such as the recent endorsement of the ISSB’s global sustainability reporting standards,” Servais, who is also Chairman, Financial Services and Markets Authority, Belgium, said.

    He outlined that the WIW also focuses on crypto-assets, where IOSCO will deliver a global policy handbook to address key risks to investor protection and market integrity.

    Read Also: NGX tightens brokers’ rules to enhance investors’ protection

    He noted that the WIW’s key messages are a reminder of the importance of good financial education for investors, pointing out that financial education is a complementary tool to regulation and supervision to enhance investors’ awareness, critical sense and rational behaviour.

    IOSCO explained that given the increasing participation of retail investors in capital markets in recent years, these investor issues have risen to the top of the WIW agenda. As in previous years, the G20, under the India Presidency, is supporting the WIW campaign.

    “Financial innovation is impacting the financial system, bringing with it new business opportunities for the industry and potential benefits for investors, but also posing challenges and risks that need to be addressed in an effective way.

    “Financial education has an important role to play in conjunction with investor protection measures taken by regulators and the industry,” IOSCO stated.

    Chairman, IOSCO Committee 8, Pasquale Munafò said new jurisdictions and stakeholders, from both developed and emerging markets, are joining the WIW campaign this year.

    “This interest underscores how financial education and investor protection have become top priorities for regulators and market participants around the world. The WIW welcomes the participation of new supporters in this global effort,” Munafò, also of Consob, Italy, said.

  • Turkiye, Egypt, Ghana, Nigeria lead global equities’ returns

    Turkiye, Egypt, Ghana, Nigeria lead global equities’ returns

    Merging markets equities dominated the top global returns chart for the third quarter 2023 as domestic and foreign investors defied macro risks to lock into bargains in African and Asian markets.

    Global stock data tracked by The Nation’s Market Intelligence at the weekend indicated that African and Asian stock markets dominated the top five global market returns, with Africa as the largest continental bloc within the world’s top biggest returns in the first nine months of the year.

    The data included the most prominent stock markets and cut across the various tiers of advanced, emerging and frontier markets. These included United States, United Kingdom, Germany, Japan, France, Hong Kong, Russia, India, Brazil, China, Thailand, Turkiye, Saudi Arabia, Qatar and United Arab Emirates (UAE). African markets included Nigeria, South Africa, Kenya, Morocco, Ghana, Egypt and Mauritius.

    Asian emerging market, Turkiye’s BIST 100 Index indicated highest return of 51.3 per cent. Egypt led the African group with the EGX 30 Index returning 38.2 per cent, the second highest return among tracked global stock markets. Ghana’s GSE Composite Index indicated average return of 29.8 per cent. Nigeria trailed with average return of 29.52 per cent. United States’ Nasdaq Index posted average return of 26.6 per cent, but this was moderated by average return of 12.2 per cent by the S & P 500 Index. Japan’s Nikkei 225 Index placed sixth with 22.1 per cent.

    Other top-10 returns included Morocco’s Casablanca Masi Index, 10.7 per cent; Germany’s Xetra DAX, 10.5 per cent; France’s CAC 40 Index, 10.2 per cent and India’s BSE Sens Index, which posted average return of 8.2 per cent for the nine-month period.

    Two of the other three African markets however posted negative returns. Kenya posted negative return of -10 per cent while South Africa witnessed marginal decline of 0.9 per cent. Mauritius meanwhile recorded modest positive return of 4.2 per cent.

    Other global markets with year-to-date positive returns included United Kingdom’s FTSE All Share Index, 1.3 per cent; Brazil’s Ibovespa, 6.0 per cent; Russia’s RTS Index, 3.8 per cent; China’s Shanghai Composite Index, 0.7 per cent, Thailand’s SET Index, 5.5 per cent and Saudi Arabia’s Tadawul All Share Index, with average year-to-date return of 5.5 per cent.

    However, Hong Kong’s Hang Seng, UAE’s ADX General Index and Qatar’s DSM 20 Index reported negative returns of -10.0 per cent; -4.2 per cent and -4.0 per cent respectively.

    Nigeria’s benchmark index, the All Share Index (ASI) of the Nigerian Exchange (NGX), is a common value-based index and it tracks all share prices at the Exchange, a feature shared with benchmark indices of United Kingdom, South Africa, Saudi Arabia and UAE among others. Most other indices are selective indices, tracking a basket of stocks, although mostly representative of their markets.

    A report by Afrinvest Securities showed that the global stock markets largely suffered a relapse in the month of September, which moderated returns across the markets.

    According to the report, the global equities market ended September 2023 on a bearish note as fresh hawkish signal by the United States Fed and weak macroeconomic data releases in the Euro-area dampened investors’ sentiment.

    Read Also: Turkiye, Egypt, Ghana, Nigeria lead global equities’ returns

    The US Fed at the end of its FOMC meeting earlier in the month had hinted about a possible interest rate hike at its next meeting following two consecutive months of negative inflation surprises, which rose 0.2 and 0.5 percentage points in July and August to 3.7 per cent. In the Euro-area, there was negative market reaction to the region’s dismal trade performance, as surplus weakened to Euro 6.5 billion in August from Euro 18.5 billion in the prior month. European Central Bank (ECB) also hiked its benchmark rate by 25 basis points to 4.0 per cent, the highest since 1999.

    The broad, global index, MSCI world equity index dropped by 4.4 per cent in September. In the US, the NASDAQ and S & P 500 indices dropped by 5.6 per cent and 4.5 per cent respectively. Germany’s XETRA DAX, Hong Kong’s Hang Seng, France’s CAC 40, and Japan’s Nikkei 225 indices declined by 3.5 per cent, 3.1 per cent, 2.5 per cent and 2.3 per cent respectively, as portfolio investors reassess the likely impact of the Fed’s new hawkish signal on year-end portfolio performances.

    Conversely, the UK’s FTSE index gained 1.7 per cent, spurred by the positive but relatively weak GDP expansion of 0.2 per cent in second quarter 2023.

    Across the BRICS markets, performance was negatively skewed as three of the five indices closed in the red. In Russia, the RTS index dipped by 4.9 per cent despite key interest rate increase of 100 basis points to 13.0 per cent aligning with market projections. Likewise, South Africa’s JSE and China’s Shanghai Composite indices depreciated by 3.4 per cent and 0.3 per cent respectively. Conversely, India’s BSE Sens and Brazil’s Ibovespa indices posted gains of 1.5 per cent and 0.5 per cent respectively, owing to attractive valuations.

    In the African markets, Egypt’s EGX 30, Mauritius SEMDEX, and Ghana’s GSE Composite indices closed in the green with gains of 6.9 per cent, 2.9 per cent, and 2.8 per cent respectively. Ghana’s inflation rate had fallen for the first time in four months to 40.1 per cent – its lowest since September 2022. On the flip side, Kenya’s NSE 20 and Nigeria’s All Share indices fell by 2.0 per cent and 0.25 per cent respectively.

    The Asian and Middle East markets were also bearish as Thailand’s SET and Saudi Arabia’s Tadawul indices dropped by 3.8 per cent each while UAE’s ADX general index fell by 0.3 per cent. However, Turkey’s BIST 100 and Qatar’s DSM 20 indices rose by 5.3 per cent and 0.6 per cent respectively.

    Analysts at Afrinvest Securities said they expected extended risk-off sentiment across major markets this month as investors re-assess the potential impact of an impending interest rate increase by the FOMC.

  • FCMB Group lists first tranche in N300b capital raising

    FCMB Group lists first tranche in N300b capital raising

    FCMB Group Plc, the holding company for First City Monument Bank (FCMB) Limited and other subsidiaries, has listed a N20.69 billion on the Nigerian Exchange (NGX), successfully completing the transaction process for the first tranche of its N300 billion capital raising programme.

    FCMB Group’s N20.69 billion perpetual fixed-rate resettable NC5.25 additional tier 1 capital subordinated bonds were listed under memorandum listing at the NGX.

    A total of 20.686 million bond units valued at N20.686 billion were listed at par value of N1,000. The bonds were issued on February 16, 2023 with a coupon of 16.00 per cent.

    As a perpetual instrument, the bonds have no scheduled maturity date, and they are only subject to call or reset at whatever date to be notified by the issuer.

    FCMB Group had indicated that the bonds were well received by the market, with active participation from a diverse range of investors.

    The group indicated that the net proceeds would be invested in First City Monument Bank Limited to enhance the bank’s tier 1 and total capital adequacy ratios.

    FCMB noted that its AT1 issuance was the first non-sharia local currency AT1 instrument issued in Nigeria.

    Chapel Hill Denham Advisory Limited and FCMB Capital Markets Limited acted as the issuing houses to the series 1 bond.

    First City Monument Bank had in early 2022 raised N30 billion through commercial paper (CP) issuance. It was issued under the bank’s N100 billion CP issuance programme.

    Read Also: FCMB, Tulsi Chanrai Foundation restore sight of over 2,000 in Kebbi

    The net proceeds of the CP issuance was used to support the bank’s short-term financing requirements.

    FCMB Group distributed N5 billion as cash dividends for the financial year ended December 31, 2022. This implied a dividend per share of 25 kobo per ordinary share for 2022, as against 20 kobo per share paid for 2021.

    The results showed that the banking group grew by 71.7 per cent, while the consumer finance, investment management and investment banking segments grew by 25.6 per cent, 45.7 per cent and 26.7 per cent, respectively.

    The group’s results showed a 33.5 per cent growth in gross revenue to N283 billion from N212 billion the previous year. Customer deposits rose 25.1 per cent to N1.94 trillion in December 2022 from N1.55 trillion the previous year, while loans and advances witnessed a 12.4 per cent surge to N1.20 trillion as against N1.06 trillion in 2021.

  • Stock Exchange to mobilse capital for Fed Govt’s agenda

    Stock Exchange to mobilse capital for Fed Govt’s agenda

    Chief Executive Officer, Nigerian Exchange (NGX), Mr. Temi Popoola, has reiterated the commitment of the Exchange to lend its support to the Federal Government’s economic rejuvenation programmes.

    He said NGX aims to support government by mobilizing capital that will address government challenges and foster wealth creation for Nigerians.

    Speaking on the sidelines of a Roadshow to BBC in London, Popoola highlighted the privatization initiatives in the telecommunications sector as a compelling illustration of this concept.

    He pointed out that President Tinubu’s administration, presently engaged in tax reforms to boost revenue, can harness the potential of the capital market to create value and simultaneously achieve its objectives while delivering returns to investors.

    As part of ongoing endeavors to attract foreign investors to the Nigerian economy, Mr. Wale Edun, the Minister of Finance and the Coordinating Minister of the Economy, ceremonially rang the opening bell at the London Stock Exchange yesterday to spotlight the London arm of the Roadshow.

    Read Also: INEC to conduct mock accreditation in Kogi, Imo, Bayelsa

    Since the onset of the COVID-19 pandemic in 2020, foreign investment in Nigeria has experienced a significant decline, mirroring the trend observed in other emerging economies during the same period.

    “What we are trying to achieve is to emphasize to investors that Nigeria is open for business and also reinforce that the enormity of the challenges are clear and work has begun to address all the issues. Whether capital inflows or foreign exchange illiquidity, NGX remains a veritable platform for solving these economic challenges,” Popoola said.

    According to him, encouraging listings can also address government’s problems including tax revenues, and create value for shareholders as listed companies have better governance and are more accountable with tax payment.

    Also speaking to Sky News on the sidelines of the LSE Roadshow, Michael Nzewi, Managing Director, CardinalStone Partners stated that the aim of the roadshow was to capitalize on the pace of reforms by the new administration and reverse the trend of foreign capital outflows, noting that his firm is willing to collaborate closely with NGX to ensure the Roadshow creates substantial impact.

  • NGX tightens brokers’ rules to enhance investors’ protection

    NGX tightens brokers’ rules to enhance investors’ protection

    The NGX Regulation Limited (NGX RegCo)- the self-regulatory body that regulates activities at the Nigerian Exchange (NGX), has launched a code of conduct for officials of dealing members in a bid to strengthen investors’ protection.

    The “Code of Conduct for Approved Persons of Trading License Holders, approved by Securities and Exchange Commission (SEC) on August 16, 2023, will take effect on October 3, 2023.

    Chief Executive Officer, NGX Regulation Limited (NGX RegCo), Ms Tinuade Awe said the code underlined NGX’s commitment to promoting high professional standards and ethical conduct within the capital market.

    According to her, the primary objective of the code is to establish and uphold acceptable standards of behaviour, thereby fostering professionalism, integrity, and fairness in the interactions of approved persons with clients, employers, employees, regulators, and other relevant stakeholders.

    “This commitment is poised to bolster investor confidence and pave the way for a sustainable and thriving market. The code emphasises high professional standards, reasonable skill, care, and prudence, as well as adherence to ethical and practical standards. Furthermore, it highlights the expected standards and values that Approved Persons must display at all times when conducting their businesses at all times.

    “At NGX RegCo, we understand the profound impact that a strong ethical foundation can have on the integrity and sustainability of the capital market,” Awe said.

    Read Also: Obi resisted pressure to lead mass protest against presidential poll – LP

    She pointed out that the code of conduct was an important step towards further strengthening a market where confidence is essential, urging trading licence holders’ approved persons to fully embrace the code by demonstrating their commitment to best and fair practises and the highest professional standards.

    “These are critical factors for establishing a market based on honesty and accountability, which will promote market depth, growth, and economic development,” Awe said.

    Head, Broker Dealer Regulation, NGX RegCo, Mr. Olufemi Shobanjo, added that the code reflected ongoing efforts to improve the regulatory framework of the Nigerian capital market.

    “We strongly encourage all approved persons of trading licence holders to familiarise themselves with the code and ensure its implementation and compliance within their organisations.

    “At NGX RegCo, we stand ready to guide and support all stakeholders to ensure the smooth and hitch-free adoption of the code, thereby cementing the foundation for a more robust and ethical capital market in Nigeria,” Shobanjo said.

  • How to attain sustainable economic growth, by experts

    How to attain sustainable economic growth, by experts

    Finance and economic experts have outlined a combination of fiscal and monetary strategies to drive Nigeria’s economic growth.

    President, Chartered Institute of Stockbrokers (CIS), Mr Oluwole Adeosun and other eminent professionals in the public and private sector, identified deployment of the Public Private Partnership (PPP) model and provision of liquidity under ease of doing business among other strategies to enhance accelerated growth and development of the Gross Domestic Product (GDP).

     Addressing participants at the 2023 Annual National Workshop of CIS in Abuja, Adeosun lamented that the last record of Nigerian double-digit GDP growth was in 2002 when the indicator grew by 15.33 per cent.

     According to him, much of the fundamentals of the country’s economy were built in the 1970s and 1980’s. 

    Adeosun explained that adoption of public private partnership (PPP)  model would boost economic growth and development and lift millions of Nigerians out of poverty .

    Read Also: Nigeria gets higher ICAO audit’s rating

     ”It has been established globally that one of the most effective routes towards achieving fast-paced economic growth, is the adoption of Public Private Partnership (PPP). While we accept that this has been tried in Nigeria to some extent, emphasis has not been as it should be. It is our conviction at the Institute that utilizing the capital market optimally will significantly enhance the effectiveness of Public Private Partnership in accelerating the GDP growth in Nigeria.

     ”Our present infrastructure deficit is estimated at US 3 Trillion Dollars over the next 30 years, constituting 30 per cent of the GDP as against 70 per cent by other middle -income nations. This constitutes a setback which needs to be corrected. At CIS, we believe that with genuine concern, altruism, innovative ideas, patriotic zeal and political will on the part of the government, our economy will be set on the right footing,” Adeosun said.

    Plateau State Governor, Mr Caleb Muftwang, who commended the institute for the various professional suggestions to grow the Nigerian economy, reiterated his administration’s determination to utilize the capital market to develop infrastructure in the state, saying no nation can develop without a viable capital market

    Chief Executive Officer, Economic Associates, Dr Ayo Teriba, who spoke on “Macro-Economic Policy Framework for Nigeria”,  explained that government should address the issue of liquidity to tackle insecurity, rising inflation and other macro-economic vagaries affecting Nigeria.

     ”The basic economic problem in Nigeria is illiquidity. This is in form of fiscal illiquidity, forex illiquidity or systemic illiquidity. The dominant source of illiquidity are the challenges associated with exports and inability of Foreign Direct Investment (FDI) to thrive due to lack of enabling business environment. Growth is a consequence of liquidity. Countries must get liquidity right. Nigeria is rich in assets and should take advantage of assets to grow the economy rather than rely solely on revenue from taxation,” Teriba said.

    Speaking on “ Managing Nigeria’s Sovereign Debt for Economic Stability”, Director General , Debt Management Office (DMO) , Ms Patience Oniha, argued that tax revenue drive should remain one of the major sources of government revenue without prejudice  to other avenues such as exports and FDI.

    President, Association of Capital Market Academics of Nigeria, Professor Uche Uwaleke, noted that effective implementation of the eight-point agenda of the current administration would create ease of doing business in Nigeria and drive investment.

  • Equities lose N463b amid selloffs

    Equities lose N463b amid selloffs

    Nigerian equities opened yesterday with a massive selloffs as investors sought to monetise recent capital gains.

    Benchmark indices at the Nigerian Exchange (NGX) fell by 1.24 per cent, equivalent to net depreciation of N463 billion.

    The All Share Index (ASI)- the common index that tracks all share prices at the NGX dropped by 1.24 per cent to close at 67,296.18 points. Aggregate market value of all quoted equities declined by N463 billion to close at N36.832 trillion.

    With nearly three losers for every gainer, the negative overall market position was due to widespread selloffs across the sectors, especially among large-cap stocks such as Dangote Sugar Refinery, NASCON Allied Industries, Guaranty Trust Holding Company (GTCO) and Zenith Bank.

    There were 43 losers to 16 gainers. eTranzact International, NASCON Allied Industries and Secure Electronic Technology led the loserst with 10 per cent each to close at N9, N52.20 and 27 kobo respectively. Dangote Sugar Refinery followed with a decline of 9.98 per cent to close at N57.75 while Learn Africa dropped by 9.86 per cent to close at N3.29.

    On the upside, Northern Nigeria Flour Mills (NNFM) recorded the highest gain of 9.96 per cent to close at N13.25 per share. Oando followed with a gain of 9.74 per cent to close at N8.45. CWG Plc rose by 9.0 per cent to close at N6.30. NPF Microfinance Bank increased by 8.20 per cent to close at N1.98 while R.T. Briscoe Nigeria added 7.32 per cent to close at 44 kobo per share.

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    Total turnover increased by 7.58 per cent to 520.133 million shares valued at N8.334 billion in 9,914 deals. United Bank for Africa (UBA) led activity chart with 73.932 million shares worth N1.050 billion. Access Holdings followed with 57.669 million shares valued at N957.324 million. Transnational Corporation (Transcorp) traded 52.725 million shares valued at N331.529 million. Zenith Bank traded 43.129 million shares worth N1.523 billion while FBN Holdings (FBNH) traded 26.574 million shares worth N480.793 million.

    Analysts at United Capital said investors’ sentiment might tilt towards companies with strong and pending corporate actions.

    “Investors will look to take positions across listed tier one banks that are yet to release their H1, 2023 financials.

    “Overall, we expect a group of investors to remain tilted toward the money market, in a bid to take advantage of the elevated interest rate. This will be translated into pockets of bearish sentiments. However, fund managers and risk inclined investors may continue cherry-picking stocks with strong fundamentals and improved dividend yield,” United Capital stated.