Category: Equities

FMDQ Securities Exchange Limited will next month introduce its Exchange-Traded Derivatives (ETD) market

The FMDQ ETD market will commence trading with three products – Federal Government of Nigeria Bond Futures, Treasury Bills Futures, and Open Market Operation Bills Futures.

FMDQ yesterday said it  envisaged that the products will deliver the dividends of a derivatives markets by serving as useful risk management tools, supporting price discovery, competitiveness, and market efficiency, which in turn will help attract capital flows, reduce cost of capital, promote secondary market liquidity, and ultimately deepen the Nigerian financial markets. 

“The stage is, therefore, set for the go-live of the FMDQ ETD market, the biggest innovation to yet arise from the stables of the FMDQ franchise, following the launch of the Naira-Settled OTC FX Futures by CBN and FMDQ in 2016, which was instrumental in minimising the disequilibrium in the FX market, whilst attracting significant inflows into the Nigerian fixed income and equity markets,” FMDQ stated.

The FMDQ ETD market is being supported by Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), FMDQ Clear Limited, and key market participants.

Globally, financial markets are plagued with heightened price volatility, fluctuating market prices and rates, and constant uncertainty of macroeconomic indicators, with the Nigerian financial markets not faring any better. To counter and assuage these adverse effects, robust and efficient risk management tools, such as derivatives are typically employed. Whilst model markets have been able to harness the potential of the derivatives markets to mitigate risk efficiently, diversify investment portfolios, and allow businesses pursue expansion with higher risk in a safe manner, the reverse is the case in emerging and frontier markets, such as Nigeria, as derivatives markets are non-existent or small – with dearth of derivatives products – at best, and hedging costs are high, making it uninteresting for market participants.

 FMDQ Exchange had commenced a feasibility study in 2015, with a project set up with the aim to launch ETD market, in collaboration with market stakeholders; thereby introducing exchange-traded risk hedging products to the financial markets, as is obtainable in other developing and developed financial markets globally.

The project has recorded many milestones and implemented several initiatives including, the development of the FMDQ ETD Market Framework, SEC-approved Rules, and membership requirements; deployment of fit-for-purpose and optimised ETD trading and clearing modules on the FMDQ Q-ex System; development of Risk Management and Operational Framework across the financial market infrastructure (FMI) value chain; development of SEC-registered derivatives products; and execution of various stakeholder engagements and training sessions, impacting over 2,600 market stakeholders across the financial markets value chain, ranging from regulators, financial and non-bank financial institutions, corporate treasurers, accountants, legal practitioners, journalists and individuals, to sensitise and promote readiness for the imminent launch of the FMDQ ETD market.

Also primed for the activation of the FMDQ ETD market is FMDQ Clear Limited (“FMDQ Clear”), Nigeria’s foremost Central Counterparty (“CCP”), which since receiving its CCP registration from the SEC in 2021, has re-defined the landscape of the sanctity of financial transactions and sparked the introduction of endless possibilities to the scope of permissible products (including derivatives), which can be developed and deployed within the Nigerian financial markets. FMDQ Clear, in preparation for the ultra-important CCP role of de-risking the Nigerian financial markets, has steadily built its Default Resolution Reserve, which will form part of its robust default waterfall, to ensure adequate financial resources are available to the CCP to deal with any defaults that may arise in the ETD market, to c. $20mm from its retained earnings over the past five (5) years, and is positioned to grow this to over $30mm in the short- to medium-term. With its extensive risk management structures and robust financial resources, FMDQ Clear is well able to manage the consolidated risks in an operational, cost and capital efficient manner that unlocks value for market participants in the FMDQ ETD market, by aggregating and consolidating counterparty risks and introducing the much-desired counterparty agnostic trading feature that will propel the growth of trading liquidity of financial products in the Nigerian financial markets to international standards and practices.

 FMDQ Exchange is working with its 21 dealing members to participate in the FMDQ ETD market as its pioneer derivatives trading members (DTMs). The DTMs will receive support from FMDQ Clear, through six deposit money banks (DMBs) who will share mutualised responsibility, as Members of the CCP, in its mandate of ‘de-risking’ the Nigerian financial markets either as General Clearing Members (GCMs) – capable of clearing transactions for their proprietary positions and those of other DTMs and clients; or as Direct Clearing Members (DCMs)  – capable of clearing their proprietary positions and those of their clients only. 

FMDQ noted that as an important financial market infrastructure aspiring to transform the Nigerian financial markets, in collaboration with key market stakeholders, to be globally competitive, operationally excellent, liquid and diverse, in line with the FMDQ ‘GOLD’ Agenda, the overarching essentiality of the FMDQ ETD market cannot be overemphasised as it leads a pathway to the future of the Nigerian markets, which will see the actualisation of a thriving financial market like other developed economies and markets. “While acknowledging the susceptibility of the Nigerian financial markets and the broader economy to external shocks, it is envisaged that the combined strength and resilience of the Nigerian people and markets, coupled with the launch of the FMDQ ETD market, will propel the Nigerian financial markets towards a trajectory of growth and progress,” FMDQ stated.

Nigeria yesterday launched two global reporting standards in a bid to empower investors to make better investment decisions and encourage corporates to adopt sustainability at the core of their financial reporting.

Public and private regulators including Financial Reporting Council (FRC) of Nigeria, International Sustainability Standards Board (ISSB) and NGX Regulation Limited (NGX RegCo) jointly launched  the first two IFRS Sustainability Disclosure Standards- IFRS S1 and IFRS S2 Standards.

The launch which held at Nigerian Exchange Group House in Lagos made Nigeria the first African country to adopt the standards, just as they were also launched in six major global financial centers including; New York, London, Frankfurt, Singapore, Santiago and Montreal.

Speaking at the launch, Executive Secretary, FRC, Ambassador Shuaibu Adamu, noted that it marks a historic milestone for Nigeria and is a testament to the country’s unwavering commitment to responsible and sustainable business practices. He also said that as Nigeria adopts the standards, it is setting a powerful example for other nations and reaffirming its position as one of the global leaders in sustainability reporting.

“Today, there is a growing global, environmental, social and governance investor base of over $2 trillion in global institutional investor funds under management. No country or institution can attract or accept these private investment capital if you are not seen to be committed to climate and sustainable development. Nigeria must therefore compete with the rest of the world for this private capital.

“Obviously, in Nigeria, NGX provides a veritable platform to attract this capital. Comprehensive, comparable and transparent information about sustainability and climate related risks and opportunities will play an essential role in appropriately pricing these risk and opportunities and unlock the needed private capital flows,” Adamu said.

Chief Executive Officer, NGX RegCo, Ms Tinuade Awe, said that the launch was tremendous for the growth of the capital market as companies in Nigeria will now have a global baseline that it can use. Awe, while calling for focus on the forthcoming standards stated, “NGX RegCo remains committed to promoting a fair, transparent and orderly market that thrives on full and timely information needed for the protection of investors in the Nigerian capital market.”

Board Member, ISSB, Ndidi Nnoli-Edozien, said that ISSB was born at COP 26 as a sister entity to the International Accounting Standard Board (IASB) while noting that its intention to launch the standards was to see how Nigerian firms process sustainability, climate related risks and opportunities and embed them in their reporting to help guide capital flows. “There are close to 300 different standards and what we have done is create a single global baseline that is interoperable with standards such as GRI and reduce the cost of reporting burden,” she said.

Director-General, Securities and Exchange Commission (SEC), Lamido Yuguda who was represented by the Executive Commissioner, Operations, Dayo Obisan, said the launch of the ISSB Standards in Nigeria signals the country’s readiness to embrace sustainability as a core value in financial reporting practices.

“This sends a strong message to the global community that Nigeria is committed to transparent and responsible business practices that prioritize environmental stewardship, social well-being as well as good governance,” Yuguda said..

Commending the NGX RegCo and FRC, Chair, ISSB, Emmanuel Faber, said that the lack of comparability and ambiguity about the many available standards and frameworks have limited the effectiveness of reporting and the efficiency of capital markets.

Faber further stated that the standards are cost effective for reporters and useful for investors and added that organizations that use IFRS 1 and 2 as a tool to communicate to investors will win a financing competitive advantage.

Nigerian equities market opened yesterday with net capital gains of N72 billion as investors continued to show preference for quoted shares.

With two gainers to every loser, benchmark indices at the Nigerian Exchange (NGX) indicated average gain of 0.22 per cent, equivalent to net capital gain of N72 billion.

The All Share Index (ASI)- the common value-based index that tracks all share prices at the Exchange,  rose by 132.13 points to close at 59,335.88 points.

Aggregate market capitalisation of all quoted equities increased by N72 billion to close at N32.309 trillion.

The positive overall situation was driven ny widespread buy sentiments across the sectors.

There were 46 gainers against 23 losers.

Academy Press, Associated Bus Company, Ikeja Hotel, Tantalizers, Thomas Wyatt Nigeria and Transcorp Hotel recorded the highest price gain of 10 per cent each to close at N2.20, 44 kobo, N3.30, 22 kobo, N1.43 and 19.36 respectively.

Eterna followed with a gain of 9.78 per cent to close at N17.40 while Skyway Aviation Handling Company rose by 9.73 per cent to close at N10.15, per share.

On the other hand, Unity Bank led the losers’ chart by 10 per cent, to close at 99 kobo per share. Japaul Gold & Ventures followed with a decline of 9.23 per cent to close at 59 kobo.2 Veritas Kapital Assurance declined by 8.70 per cent to close at 21 kobo uper share.

Secure Electronic Technology depreciated by 7.89 per cent to close at 35 kobo while Cutix declined by 5.45 per cent to close at N2.60, per share.

The total volume traded declined by 12.0 per cent to 552.689 million shares valued at N13.057 billion in 8,052 deals. Transactions in the shares of Access Holdings topped the activity chart with 74.602 million shares valued at N1.134 billion. BUA Cement followed with 45.406 million shares worth N3.861 billion.  GTCO traded 44.833 million shares valued at N1.449 billion.

Universal Insurance traded 40.374 million shares valued at N9.094 million, while Ecobank Transnational Incorporated (ETI) sold 39.822 million shares worth N604.805 million.

Nigerian equities reopened yesterday on a positive note as investors increased orders for several stocks.

 All Share Index (ASI) gained by 13.89 points, representing a growth of 0.02 per cent to close at 59,014.85 points. Also, market capitalisation gained N8 billion to close at N32.134 trillion.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Dangote Cement, Guaranty Trust Holding Company (GTCO), Zenith Bank, Stanbic IBTC Holdings and Skyway Aviation Handling Company.

This week, United Capital Plc said “we expect the bullish sentiments in the market to linger in the short-term, driven by positive sentiments by investors on account of interesting pronouncement and policies implementation by the new administration.

“However, we foresee pockets of profit-taking activities as some investors would book their gains from the bourse’s recent rally.”

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There were 44 gainers to  22 losers. Tantalizers and Universal Insurance recorded the highest price gain of 10 per cent each to close at 22 kobo each, while Unity Bank followed with a gain of 9.80 per cent to close at N1.12, per share.

Mutual Benefits Assurance went up by 9.76 per cent to close at 45 kobo, while FTN Cocoa processors appreciated by 9.63 per cent to close at N1.48, per share. On the other hand, Ellah Lakes led the losers’ chart by 10 per cent, to close at N3.24, while John Holt followed with a decline of 9.57 per cent to close at N1.04, per share.

Academy Press depreciated by 9.55 per cent to close at N1.80, while Omatek Ventures and Regency Alliance Insurance declined by 7.14 per cent each to close at 26 kobo and 39 kobo respectively, per share.

The total volume traded increased by 43.47 per cent to 892.956 million shares valued at N11.147 billion, and exchanged in 9,274 deals. Transactions in the shares of Jaiz Bank topped the activity chart with 139.891 million shares valued at N244.317 million. Sterling Financial Holdings Company followed with 105.543 million shares worth N311.106 million, while Universal Insurance traded 95.116 million shares valued at N19.253 million.

Guaranty Trust Holding Company (GTCO) traded 83.801 million shares valued at N2.650 billion, while United Bank for Africa (UBA) sold 60.091 million shares worth N693.272 million.

The African continent would be unable to achieve its growth objectives unless it had strong development financial institutions, President Nana Akufo-Addo of Ghana has said.

He spoke yesterday in Accra as he performed the formal opening of the 30th Annual General Meetings of the African Export-Import Bank (Afreximbank).

The Afreximbank Annual Meetings (AAM2023) is also being held to celebrate the 30th anniversary of the establishment of the bank, which was founded in 1993.

Akufo-Addo told participants that Africa’s financial development institutions had remained highly undercapitalised, saying those institutions needed to be properly capitalised and to have effective coordination with the African Union (AU) in order to be able to deliver effectively for the continent.

Noting that a bank like the China Exim Bank had a capital of $54 billion while Afreximbank had only $6 billion, he urged African countries and Africans to contribute to Afreximbank’s general capital initiative by subscribing to their allotted shares.

Akufo-Addo commended Afreximbank for its catalytic role in Africa and urged it to strive to further improve its rating with the credit rating agencies in order to enhance its operations and be able to work consistently for Africa and the African Diaspora.

He pledged to work for Afreximbank to be admitted to a special status at the AU in recognition of its role and contributions to the continent and described AAM2023 as a truly intercontinental event with the participation of several Caribbean countries that had become full members of the Bank following the signing of partnerships agreements with the institution.

He further welcomed the bank’s support for Ghana, noting that its first transaction was with the Ghana Cocoa Board and that, beyond that, Afreximbank had provided timely support to Ghana through its Counter-Cyclical Liquidity Facility (COTRAFL) which it had put together at a time when global financial institutions were exiting Africa.

“When dealing with powerful global financial financial institutions, it is important to have your own powerful financial institutions,” said the President.

Earlier, Prof. Benedict Oramah, President and Chairman of the board of Afreximbank, said that the bank was delivering on the blueprint laid out by the pioneers of the OAU for Africa’s socio-economic transformation.

The pioneers had set priority key goals to establish a free trade area among the various African countries; to establish a pan-African payments and clearing union; to establish a common external tariff to protect the emergent industries and set up a raw material price stabilisation fund; to develop trade among African countries by the organisation and participation in African trade fairs and exhibitions and by granting transport and transit facilities; and to progressively free national currencies from all non-technical external attachments and the establishment of a pan-African monetary zone,” he said.

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“For sixty years, this well-articulated road map remained a map and gathered dust,” said President Oramah. “But thanks to the vision of African leaders who founded Afreximbank 30 years ago, one by one, they are being delivered within the framework of ‘Team Africa’, comprising the African Union and its Agencies, the AfCFTA Secretariat and Afreximbank as the underpinning banker”.

“Today, the Pan-African Payment and Settlement System (PAPSS) is up and running, which will save the continent 5 billion US dollars in intra-African transfer changes. It will also expedite and enable payments for intra-African trade in African currencies,” he said. “Very soon, we will domesticate all intra-African payments and extend the same to the CARICOM, where just a few days ago, the Association of CARICOM Central Banks adopted PAPSS as their preferred payment infrastructure for a pilot project. By this singular move, we are one step closer to a full integration of African and CARICOM economies”.

He added that, in response to the founding fathers’ aspiration to develop trade among African States by organising and participating in African trade fairs, Afreximbank, in 2018, worked in partnership with the African Union to introduce biennial Intra-African Trade Fairs (IATF). Afreximbank pre-funded the organisation of the trade fairs, of which two had been held in Cairo and Durban, South Africa, attracting an aggregate of about 40,000 visitors and about 75 billion US dollars in deals.

With the AfCFTA Secretariat joining the partnership following its establishment, the IATF, branded the AfCFTA Marketplace, had become the largest gathering of African businesses and traders, he continued. The third edition would hold in Cairo from 9 to 15 November 2023.

It was also because Africa had Afreximbank that an integrated regional transit guarantee scheme for the continent had been birthed to ease the movement of goods across the 110 borders that divide Africa, said Prof. Oramah. Under the Scheme, goods could move across multiple African borders under one transit bond, significantly reducing border delays and transit costs.

Prof. Oramah also noted that the signing of the African Continental Free Trade Agreement (AfCFTA) in 2018, and its entry into force a year later, fulfilled another key aspiration of the continent’s founding leaders, saying that to make that Agreement work for Africa, a financial backbone was necessary. “Afreximbank’s existence will give the AfCFTA the best chance of success”.

He announced that, to deal with the considerable intra-African trade finance gap, Afreximbank disbursed over 20 billion US dollars in the five years to 2021 and projected to double those disbursements to 40 billion US dollars in the five years to 2026.

Prof. Oramah added that it was Afreximbank: that arranged the 2.9 billion US dollar bundle of credit and guarantees that made it possible for Egyptian contractors to begin executing the largest intra-African construction contract for a dam in Tanzania; that supported, phosphate fertiliser imports from Morocco to Nigeria and Ethiopia with hundreds of millions of US dollars; and that enabled Vista Bank, Burkina Faso, to complete the acquisition of some BNP subsidiaries in West Africa.

Afreximbank and the AfCFTA Secretariat had also established the AfCFTA Adjustment Fund to, among others, compensate eligible countries for tariff revenue losses arising from the new trade regime while also supporting the private sector to adjust in an orderly manner to the new arrangement under the AfCFTA, he continued.

Prof. Oramah added that Afreximbank was working with the African Regional Standards Organization to harmonise trade standards across Africa and had used Afreximbank mobilised grant funding to harmonise over 155 standards covering priority areas of automobile, medical equipment and pharmaceuticals.

The Bank was working with Bureau Veritas of France to build testing, inspection, and certification centres across Africa under the branded Africa Quality Assurance Centres, he said. The first project had been completed in West Africa and others were underway in North and East Africa.

In his speech, Philip Davis, Prime Minister of The Bahamas and Chairman of CARICOM, noted that the countries of Africa and the Caribbean shared similar challenges but had not been maximising the hands dealt them by geography.

Prime Minister Davis expressed appreciation for the warm welcome extended to the Caribbean delegation to AAM2023, noting that many people in the Caribbean traced their ancestral ties to Ghana and Africa.

He added that the new linkages between Afreximbank and the Caribbean represented a strong testament to the shared goal of pan-African prosperity.

He highlighted the risks posed to Caribbean states by climate change and said that those countries were on the frontlines of the of the threat of climate change.

Speaking on behalf of Azali Assoumni, President of Comoros and Chairman of the African Union, Assoumany Aboudou Salam, Special Adviser to the President and former Minister of Finance of Comoros, said that it was time to think about relaunching of Africa’s economies.

He said that Africa needed strong visionary leaders that were committed to working for the welfare of all Africans, adding that there should be an emphasis in investing in technology in order to stimulate economic development and job creation for the continent’s youth.

Albert Muchanga, the AU Commissioner for Economic Development, Trade, Industry and Mining, speaking on behalf of Musa Faki Mahamat, Chairman of the African Union Commission, congratulated Afreximbank on its 30th anniversary and said that the AU was a great friend and supporter of all African financial institutions.

He commended Afreximbank for its role in pioneering a relationship with the Caribbean countries and said that Africa would still have to go deeper in its integration with the Caribbean.

Earlier, Ken Ofori-Atta, Minister of Finance of Ghana, had welcomed participants to AAM2023 and noted that in its 30 years, Afreximbank had made significant contributions in building prosperity for all Africans.

He commended the Bank and its President for the decisive role it had played in supporting African countries during the COVID-19 pandemic, including making available $7 billion to help address COVID-19 related challenges and setting up the African Vaccine Acquisition Trust.

The opening ceremony also featured a poem delivery by South African artiste Lebo Mashile, an enactment of the life of famed Mali Empire ruler Mansa Musa, and a hologram featuring the words of Kwame Nkrumah.

The meeting, which ends on 21 June, is being attended by political and business leaders, bankers and other trade and trade finance practitioners from across Africa and beyond, including leaders of several member countries of the Caribbean Community.

The International Organisation of Securities Commissions (IOSCO) has emphasised the importance of standard setting, financial inclusion and investor’s confidence in driving the global securities markets.

This was a conclusion at the 48th annual meeting of IOSCO, hosted by the Securities and Exchange Commission of Thailand, in Bangkok.

The financial supervisors that are members of IOSCO regulate more than 95 per cent of the world’s financial markets across 130 jurisdictions. The IOSCO annual meeting serves as a platform for IOSCO members to convene, discuss market developments, share knowledge, foster collaboration and agree on common positions.

Jean-Paul Servais, Chair of IOSCO welcomed the work done and emphasised the important progress made in recent months on some key topics:

“The meetings of the IOSCO Board and other IOSCO committees have been the occasion to monitor recent market developments and to highlight the work realised in relation to the three fundamental priorities we identified during our previous Annual Meeting in Marrakech in October 2022. These include crypto assets, sustainable finance and financial stability. This week’s meetings have also illustrated IOSCO’s inclusive approach to all our members from different geographies, of different sizes and of different stages of development.

All IOSCO members are connected through the thread of our shared goals of investor protection, market integrity and financial stability. I personally learn a lot from our members, and it was rewarding to be part of the discussions of the different regional committees, the Growth and Emerging Markets Committee and the Affiliate Members Consultative Committee.

I am very grateful to the SEC Thailand for hosting the IOSCO members for this very significant set of meetings.”

At the IOSCO Board and the different Committees including the Annual General Meeting of IOSCO (called the Presidents’ Committee), 381 delegates discussed diverse subjects such as sustainable finance, private finance, liquidity risk management, CCP margin requirements, decentralized finance, leveraged loans and benchmarks.

Market Developments and Capacity Building in emerging markets were key items for discussion where IOSCO will be moving forward with concrete measures. IOSCO will be seeking to harness the capabilities within the Growth and Emerging Markets Committee, regional committees and the Affiliate Members Consultative Committee to deliver these goals.

By the next quarter, investors across Africa will have greater access to buy and sell shares and other securities on most African stock markets anywhere they are.

The African Stock Exchange Association (ASEA) plans to launch as revealed that second phase of the African Exchanges Linkage Project (AELP), following the success of the first phase.

The expansion will enable investors to take advantage of the wide array of investment prospects across African capital markets.

President, ASEA and Chief Executive Officer of Botswana Stock Exchange, Mr Thapelo Tsheole, disclosed this to market stakeholders during the AELP webinar themed; Exchange Linkage Project- Facilitating trades across borders . The webinar which was hosted by Nigerian Exchange Limited (NGX) and supported by Chapel Hill Denham Securities Limited, Central Securities and Clearing System (CSCS), Cordros Securities Limited and Stanbic IBTC Limited,  provided insights into the benefits and objectives of the AELP, Pan African Payment and Settlement (PAPSS) and other cross-border transaction requirements.

Tsheole noted that although African economies have encountered numerous challenges, the continent’s resilience in the face of adversities underscores its potential for sustained economic resilience and initiatives such as the AELP are very vital for Africa to rely on itself as it presents a momentum of opportunities for investors across Africa and the world by fostering deeper integration and connectivity among Africa’s capital markets.

“Having successfully launched phase one of the project in December 2022, connecting 7 exchanges across Africa, we urge Nigerian brokers in the process now to reach out to their counterparts in other countries and strive for an expanded cross-border trading across the continent. We are looking at the rolling out Phase 2 of the AELP in Q3 2023 as funding has already been approved by the African Development Bank (AfDB)

‘’We will expand the number of participating exchanges to about 15 exchanges and we think this will enable investors in the continent to maximize and take advantage of the wide array of investment prospects across Africa”, Tsheole said.

Project Manager, AELP,Lina Tonui, in her presentation, said through the support of the AfDB, it received $980,000 from KOAFEC for the AELP implementation, phase one of the project while adding that the opportunities in the project is huge.

Tonui added that the phase 1 and 2 will see linked exchanges with market capitalization of $1.5 billion, increase visibility to domestic and global investors, give access to diverse investment products, support innovation and facilitate Pan-African capital raising through IPOs.

Head, Technology and Operations at PAPSS, Ositadimma Ugwu said the key benefits for every participating exchange is that local currency payment will reduce the pressure on any country’s reserves and the elimination of third party dependencies will make intra-African trade significantly easier.

Chief Executive Officer, Nigerian Exchange (NGX), Temi Popoola, stated that despite offering high potential for growth and investment returns, African stock markets still face challenges. He noted that the AELP will encourage increased participation in investments and further enhance financial inclusion in the country and added that the NGX will continue its collaboration with all market stakeholders for the collective growth and the development of the capital market in Africa.

IDirector-General, Securities and Exchange Commission (SEC), Lamido Yuguda, said, the SEC is committed to providing regulatory support that will further deepen and enhance the transparency of the market and added that the commission is also equally supportive of all initiatives that will impact positively on the development of the capital market.

Managing Director, Chapel Hill Denham Securities Limited, Mr. Akeem Shadare said the AELP has the potential to bring significant benefits to participating African countries and their capital markets, helping to promote economic growth and development.

Nigerian financial services regulators and other stakeholders have started awareness campaign to prepare Nigerian companies for the imminent release of the International Sustainability Standards Board (ISSB)’s first two IFRS Sustainability Disclosure Standards, better known as IFRS S1- General Requirements for Disclosure of Sustainability-related Financial Information); and IFRS S2-Climate-related Disclosures.

In preparation for the standard effectiveness, the ISSB, Financial Reporting Council of Nigeria (FRCN), and NGX Regulation Limited (NGX RegCo), have organised five webinars to sensitise the stakeholders.

The webinars with the  theme, ISSB Industry-based Disclosure: Using the SASB Standards – A Tool for Disclosure of Sustainability-Related Information, was attended by over 1,500 individuals from Nigeria, Africa and beyond, and held from June 6 to June 8, 2023.  The webinars featured presentations on IFRS S1 and IFRS S2 as well as the industry-specific metrics drawn from the Sustainable Accounting Standards Board (SASB) Standards. These covered four industries: the oil and gas, telecommunications, financial services, and food and beverages and consumer goods sectors.

Commending the FRCN, ISSB and NGX RegCo for their efforts in helping to create awareness around the launch and adoption of IFRS 1 and IFRS 2, Executive Secretary of the FRCN, Ambassador Shuaibu Adamu, said, that it is encouraging that African countries are coming together to collaborate in this capacity building programme.This is because it is clear that Africa does not intend to be left behind and is partnering with the IFRS Foundation to ensure significant further investment in capacity building for African countries is delivered, also to ensure the ISSB standards are truly global in their implementation.

Speaking during the webinar series, the Director, Directorate of Accounting Standards, (Public Sector) of the FRCN, Dr. Iheanyi Anyahara, commended the joint efforts of the organizers to ensure that Nigerian companies are prepared to early adopt the ISSB Standards when they become effective.

He also noted that the capacity building engagements will continue even after the webinar series.  Additionally, Dr. Anyahara stated that the FRCN has inaugurated the Adoption Readiness Working Group (ARWG), which will make recommendations to the FRCN on the adoption of the IFRS Sustainability Standards in Nigeria.

The Chief Executive Officer of NGX RegCo, Ms. Tinuade Awe stated that as a member of the NGX Group, NGX RegCo has been involved in furthering the development of sustainability reporting in Nigeria over a period of time.

Expressing her appreciation to the FRC and the ISSB for collaborating with NGX RegCo in this successful effort, Awe noted that the webinars were necessary in order to get Nigerian and African companies ready to comply with IFRS S1 and IFRS S2 when they become effective so that they will not be left behind in the global race to unlock capital for growth and development.

On her part, Board Member of the ISSB, Dr. Ndidi Nnoli-Edozien, said that “the IFRS Accounting standards are used across 140 countries and the objective of the IFRS Sustainability Standards is to enable companies provide a global baseline of sustainability-related and climate related disclosures that are decision useful, cost-effective and market informed providing comparability across companies, industries and markets and applicable without undue cost and effort.

According to her, the sustainability-related disclosures are important to global capital markets, and will develop a common language of sustainability related disclosures that provide decision useful information to investors, with the potential to unlock capital flows.

Members of the working groups at the webinars which include; General Manager, Sustainability & Shared Value, MTN Nigeria Plc, (a member of the ARWG), Mrs Adekemi Adisa, Chief Financial Officer, Interswitch Limited, (a member of the ARWG), Senior Lecturer in the Department of Accountancy, Nnamdi Azikiwe University, Awka, Dr Onyinye Eneh, all hinged on sustainability reporting as a critical tool for unlocking the capital that companies need and added that the release of IFRS S1 and S2 by the ISSB is a huge relief and would go a long way in addressing this issue for these companies.

‘New govt’s bold moves will favour businesses’

Chief Executive Officer, Guinness Nigeria Plc, John Musunga, has  said current reforms by the new President Bola Tinubu’s administration have reinforced confidence in the prospects of the Nigerian economy.

Speaking during a closing gong ceremony at the Nigerian Exchange (NGX), Musunga said the reforms, though might be painful initially, would have greater positive impact on businesses and the economy.

“Our outlook is bright especially as the government is taking very bold moves in areas required for business.

“They will be very painful but we know that it will be in the short term and have conviction that this will favour the business environment and businesses will thrive and deliver shareholders’ return and value,” Musunga said.

He said the company does not intend to change or deviate from its strategy.

“Our results have been stellar and the business is still growing well, up by nine per cent. We will continuously grow our margins so that our shareholders can have value for the business they invested in,” Musunga said.

He said Guinness Nigeria was proud of being part of the exchange adding that the company’s brand portfolio is down to its strategy of playing across the entire alcohol beverage sector.

Musunga stated that the company will continue to innovate and continuously grow its margins so that its shareholders can have value for the business they invested in.

Chief Executive Officer, Nigerian Exchange (NGX), Temi Popoola assured that the exchange would continue its drive towards attracting capital around sustainability and will continue to partner with market stakeholders.

Popoola while commending the growth of Guinness Nigeria in the last few years, said that the NGX has very big ambitions on sustainability and will continue its drive towards attracting capital around sustainability.

“We have discussed with Guinness the work they are doing around sustainability and the NGX has very big ambitions on sustainability. We want to make sure that we are one of the leading exchanges in attracting capital around sustainability. We believe it is the right thing to do,” Popoola said.

Doyen of the market, Mr Rasheed Yusuf, said that the stockbroking community will continue to support the company and urged the company to continue sustaining its leadership of the market and raise more capital from the market.

VFD Group Plc has approved distribution of about N1.5 billion as cash dividend for the 2022 business year.

The new dividend payment represents about 10 per cent increase on N1.36 billion paid for the 2021 business year.

Shareholders will receive a final dividend of N7.89K per share for the 2022 business year, continuing the payout trend that had seen VFD Group consistently paying dividends to its shareholders over the last five years.

Key extracts of the audited report and accounts showed that group gross earnings grew by 87 per cent to N33.8 billion in 2022 from N18.1 billion in 2021. Investment and similar income grew by 54 per cent to N17.7 billion in 2022 from N11.5 billion in 2021. Other income grew significantly by 105 per cent to N13.0 billion from N6.6 billion. Profit before tax grew  by 125 per cent to N8.8 billion in 2022 from N3.9 billion in 2021. Shareholders’ funds rose by 95 per cent to N31.5 billion in 2022 from N16.2 billion in 2021. Total assets increased by 45 per cent to N149.1 billion in 2022 from N102.8 billion in 2021.

The report indicated that growth in gross earnings was driven by significant growth of 190 per cent in placement and investment income.

Group Managing Director, VFD Group Plc, Nonso Okpala, said the results, unequivocally reaffirmed the group’s unwavering dedication to grow the wealth of its shareholders.

He noted that the financial results showed a remarkable growth trajectory in both gross earnings and profit before tax, highlighting the group’s unwavering resilience amidst a challenging business landscape.

“We are pleased with our financial results for the year, which demonstrates the strength of our business model and quality of our investments. We remain optimistic about the future, and while we understand that past successes have a role in telling our story, we would rather look forward to new victories,” Okpala said.

He outlined that, going forward, the group aims to intensify efforts in fostering exceptional cross-selling and collaboration among its investee companies, thereby potentially accelerating growth.

He added that he group plans to explore opportunities for geographical expansion, paving the way for exciting prospects and creating footprints in new markets.