Category: Equities

  • Auditors should embrace emotional intelligence, Standard Chartered advises

    Auditors should embrace emotional intelligence, Standard Chartered advises

    Chief Executive Officer, Standard Chartered Bank Nigeria Ltd, Mr. Dalu Ajene, has called on auditors to ensure that they always apply  emotional intelligence in addressing the inherent challenges that come with practising their profession.

    He made the call in his keynote speech at the 58th quarterly general meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) held in Lagos.

     Agene noted that the theme of the meeting, “Being a Human Auditor in a Challenging Environment,” was timely and crucial, as according to him, “we live and work in an era marked by rapid technological changes, economic uncertainties, and evolving regulatory landscapes.”

    He pointed out that the role of an auditor has always been complex,  as it requires not only technical proficiency and an unwavering commitment to ethical standards on the part of  practitioners of the profession, but also that they have the ability to navigate the human aspects of their work.

    “You must understand that behind every transaction, every financial statement, and every compliance check, there are people—people whose lives and livelihoods depend on your diligence, transparency, accountability and integrity. In doing so, you safeguard not only the assets of your banks but also the trust placed in us by our stakeholders, customers, and the broader community. However, beyond the technicalities and regulatory requirements, there lies an essential truth: we are humans auditing for humans.”

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    “Being a human auditor means embracing the essence of empathy and ethical responsibility. It involves recognizing the pressures and challenges, faced by your colleagues, clients, and other stakeholders. It means fostering an environment where open communication, mutual respect, and professional integrity are paramount. In doing so, you build trust, not just in your reports and audits, but in the very institutions you serve. You must therefore acknowledge the inherent challenges that come with the audit profession and the broader environment you operate in. It requires you to exercise not just your analytical acumen but also your emotional intelligence.”

    “In these challenging times, the human touch becomes even more critical. It is what allows us to build resilient teams, foster trust, and create systems that are not just compliant but also adaptable and forward-looking,” Ajene said

    He expressed his admiration for the level of training that ACAEBIN exposes its members and  internal audit teams to, noting that this is a testament that the Association understands the importance of up-skilling, especially in this era of rapid pace of technological advancement, such as artificial intelligence and blockchain and the opportunities and challenges both presents.

    He noted that while the  progress and contributions the Association has made in the industry is commendable, members of the association should intensify their efforts  in addressing challenges and developing strategies, that will help the banking industry navigate these turbulent times with confidence and integrity.

    In his address, ACAEBIN Chairman, Prince Akamadu,  expressed gratitude to Ajene and Standard Chartered Bank Nigeria Ltd for once again hosting a meeting of the association.

    He also expressed his appreciation to the association’s members, regulators in the banking industry as well as law enforcement agencies for their support and contributions to the growth of  ACAEBIN and the field of audit in the country’s banking industry.

    According to him, the meeting was an opportunity for members of the association to reflect on and explore how they  can continue to be effective auditors while maintaining their humanity.

    “Being a human auditor means balancing the rigors of our profession with empathy, ethical judgment, and a commitment to the greater good. It involves understanding the broader impact of our work on people, organizations, and society,” Akamadu said.

  • New stockbrokers’ leadership capable of driving growth, says Ekiti Governor

    New stockbrokers’ leadership capable of driving growth, says Ekiti Governor

    Ekiti State Governor, Mr Biodun Oyebanji has said the new leadership of the Chartered Institute of Stockbrokers (CIS) has the experience and knowledge to further distinguish the institute and contribute to national growth.

    Oyebanji said the election of Mr Oluropo Dada as the 13th President and Chairman of Governing Council of CIS as well as that of Mrs Fiona Ahimie and Dr Akeem Oyewale, the 1st and 2nd Vice Presidents respectively, will benefit the institute.

    Dada, who was the former 1st Vice President,  was elected the 13th  President after the Institute’s Annual General Meeting (AGM), on Tuesday, April 30 in Lagos. The election followed  the expiration of the tenure of Mr Oluwole Adeosun, who is now the Immediate Past President (IPP).

    In a congratulatory letter, signed by Governor Oyebanji , he described Dada as a distinguished  industry leader.

    “It gives me a great delight to receive the thrilling news of your recent election to the prestigious position of the President and Chairman of Council of the Chartered Institute of Stockbrokers.

     “I want to heartily congratulate you and other esteemed Council members that were elected to serve with you. In particular, let me extent my warmest wishes to the first and second Vice Presidents, Mrs. Fiona Nyako Ahimie and Dr Sina Akeem Oyewale, respectively.

    “Going by your solid reputation as a professional stockbroker and a distinguished industry leader, I have no doubt that you will bring your enormous experience and rich network to bear on your new role.

    “The Institute will surely benefit immensely from your knowledge, competence and leadership acumen. On behalf of my wife, the Government and the good people of Ekiti, congratulations once again. “, according to the letter .

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    Recently, the Nigerian Vice President, Kashim Shettima, congratulated Dada on his election, during the courtesy visit of the leadership of the Institute to the Vice President in Aso Rock Villa. Abuja. Also, many notable groups, including the leadership of NGX PLC,  had paid courtesy visit to Dada at CIS Council Chamber after his election.

    Dada’s Investiture has been scheduled for Friday, June 28, 2024 at Muson Centre, Lagos. It is expected to attract many distinguished Nigerians and captains of industries.

  • Italy, AfDB launch $300m funds to support Africa’s growth

    Italy, AfDB launch $300m funds to support Africa’s growth

    Italy and African Development Bank Group (AfDB) have formed a strategic alliance to launch a $300 million funding support for Africa’s economic growth.

     Prime Minister  of Italy, Ms. Giorgia Meloni, and the President of the African Development Bank Group, Dr. Akinwumi Adesina, met on the sidelines of the G7 Heads of State and Government Summit in Puglia.

    Their discussion focused on the forthcoming launch of a series of joint initiatives to support the implementation of Italy’s Mattei Plan for Africa and Rome Process on Migration and Development agenda as agreed during the Italy-Africa Summit held in Roma in January 2024.

    “Italy’s ‘Piano Mattei’ will foster economic and strategic partnerships with African nations and institutions, and the African Development Bank Group is our main strategic financial partner for its implementation. Our collaboration will sustain the development of initiatives with Africa’s public and private sectors, with additional opportunities for Italian businesses,” Meloni said.

    Adesina said the launch of the Mattei plan and the strategic partnership will deliver impactful development impacts across African countries, expand access to energy, tackle climate change, support food security, boost health services, and expand skills and jobs for the youth.

    “This will help create more economic opportunities in Africa and help stem drivers of migration,” Adesina said.

    The partnership included establishment of a multi-donor special fund to serve the Mattei Plan for Africa and the Rome Process on Migration and Development. The fund targets high impact and climate aligned investments in key strategic sectors in support of sovereign entities in Africa.

    With its multi-donor nature, it will be able to attract other international partners to combine forces and leverage funding. An initial pledge of around $130 million in highly concessional loans and grants has been announced by Italy, together with an additional commitment by the United Arab Emirates (UAE). The African Development Bank Group has committed to at least match the Fund’s contributions on each project with its own resources.

    Bilateral agreement between Italy and the African Development Bank Group encompassing a cofinancing arrangement and trust fund to finance joint projects. Italy has committed approximately $150 million in highly concessional loans and grants and the African Development Bank Group will at least match this amount.

    The objective is to pursue Italian and African Development Bank Group priorities as set out by the Mattei Plan for Africa and by the Italian Development Cooperation strategy, to foster economic and strategic partnerships with African nations and institutions by building common business opportunities and scaling up investment flows. The priority areas are energy, water, agriculture, health, education and training and infrastructure both physical and digital.

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    A common platform to promote private sector investments, the Growth and Resilience platform for Africa (GRAf). The platform aims to mobilize equity capital to regional funds that would finance entrepreneurial activities to support job creation in Africa. The Italian development financial institution, Cassa Depositi e Prestiti (CDP), has indicated the intention to catalyze up to around $820 million over a five-year horizon alongside key African and international partners, with CDP and the African Development Bank Group each considering up to $200 million over the same period.

    Moreover, Italy has already committed to contributing up to $45 million to the Alliance for Green Infrastructure in Africa (AGIA), a transformative initiative promoted by the African Development Bank Group, the African Union and Africa50 aimed at mobilizing $10 billion to support investment in green infrastructure across Africa.

  • SEC to adapt capital market regulations for emerging fintechs

    SEC to adapt capital market regulations for emerging fintechs

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has affirmed willingness to adapt capital market regulations to meet the needs of emerging financial technologies and innovations.

    Director General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama said SEC was aware of the new financial products and services that are emerging due to technology and is committed to adapting its regulations to address these innovations.

    According to him, the commission has a three-pronged approach to regulating innovation: safety, market deepening, and solutions to problems, which has always helped to create a more efficient and reliable capital market ecosystem.

    “In the efforts to support the innovation and growth in the market, the SEC had established a programme of assessment called Regulatory Incubation to help new FinTech businesses. The programme allows them to operate for one year within a highly fortified and limited regulatory perimeter while the SEC develops applicable rules that address these innovative technologies. The incubation programme helps ensure investor protection and market stability while fostering financial technology advancements in the Nigerian capital market,” Agama said.

    He reiterated that one of the cardinal objectives of the Revised Capital Market Master Plan (CMMP 2021-2025), is to leverage technology and innovation to expand the depth and breadth of the Nigerian capital market, to enable it contribute significantly to national economic development.

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    “In order to facilitate the success of the RCMMP, a major task before the Securities and Exchange Commission, is creating an enabling regulatory and supervisory environment for innovation to thrive as means of deepening the Nigerian Capital Market in terms of new products & processes” Agama said.

    He however cautioned that as the market embraces innovation, operators and participants must remain vigilant to the risks they entail, including cybersecurity threats, regulatory complexities, and market volatility.

    According to him, wwhile the potential of innovation is undeniable, embracing it also comes with challenges. Hence, the market must be mindful that exploration of new instruments must be balanced with robust risk management frameworks.

    He said SEC would ensure appropriate safeguards are in place to protect investors and maintain market stability.

    “Investor confidence is the bedrock of any successful market. Fostering trust in innovative instruments through transparency and clear communication will be key.

    “The success of these initiatives demands collaboration by all stakeholders, including the CMSA, legal professionals, regulators, and market participants. We must create a forum for open dialogue and continuous improvement,” Agama said.

    He urged stakeholders in the capital market to embrace innovation as a catalyst for growth, increased efficiency, heightened transparency, and resilience.

    Agama spoke as the keynote speaker at the 2024 Capital Market Solicitors Association Annual Business Summit in Lagos with the theme “Revolutionising the Nigerian Capital Market through Innovative Financial Instruments for Sustainable Development”.

     He commended the organisers of the event for bringing together thought leaders from diverse sectors of finance, law and the capital market, alongside regulators and operators, to exchange insights towards advancing the Nigerian capital market and by extension, the Nigerian economy.

  • Neimeth falls below regulatory standard over rights’ renunciation

    Neimeth falls below regulatory standard over rights’ renunciation

    Neimeth International Pharmaceuticals Plc has fallen below the regulatory standard for the minimum number of shares in the hands of ordinary shareholders.

    Neimeth’s free float, which stood at 37 per cent prior to the recent rights issue, fell to 17.78 per cent after the rights issue, 2.22 percentage points below the regulatory minimum level of 20 per cent.

    This underlined that minority shareholders failed to pick their allotted shares during the rights issue. Rights are traditionally pre-allotted proportionately to existing shareholdings.

    The decline in free float implies a concentration of shares in the hands of major insiders and shareholders, a situation that technically may affect effective price discovery for secondary trading of the company’s shares.

    Free float is the minimum number of shares that must be in the hands of retail, minority shareholders, as prescribed by extant capital market regulations. Stock markets globally apply specific free float requirements in order to ensure efficient share price discovery.

    Managing Director, Neimeth International Pharmaceuticals Plc,  Pharm. Valentine Okelu, who confirmed the decline in free float, said the drop in free float occured “in the course of 2023, following the conclusion of the company’s rights issue exercise”.

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    He explained that following Neimeth’s engagement with the NGX Regulation Limited, a two-year extension period has been approved for the company, within which to achieve the required free float threshold or have trading in its securities suspended.

    “The approval was granted subject to conditions which the company has committed to meeting,” Okelu said.

    On the company’s outlook, Okelu projected a sales growth of 189.88 per cent from N5.002 billion in 2024 to N14.5 billion in 2028, while profit before tax forecast to grow to N691.685 million from N211.889 million in 2024.

    In first quarter 2024, Neimeth had posted a turnover of N648.257 million compared to N468.780 million in the corresponding period of the previous year. It recorded a profit before tax of N77.653 million in first quarter 2024 compared to a loss of N189.505 million in the same period in 2013.

  • Equities regain rally with N114b gain

    Equities regain rally with N114b gain

    Nigerian equities staged a rebound yesterday as investors rallied to lock into value stocks.

    Benchmark indices at the Nigerian Exchange (NGX) indicated average gain of 0.20 per cent, equivalent to net capital gain of N114 billion.

    With nearly two advancers for every decliner, the positive overall market position was driven by widespread demand, especially within banks and manufacturing companies.

    The All Share Index (ASI)-the value-based common index that tracks all share prices at the NGX,  gained 201.74 points or 0.20 per cent to close at 99,832.25 points. Aggregate market capitalisation of equities rose by N114 billion to close at N56.474 trillion.

    The upturn was particularly driven by price appreciation in large and medium capitalised stocks including Nigerian Breweries, United Capital, United Bank for Africa (UBA), UAC of Nigeria (UACN) and Guaranty Trust Holding Company (GTCO).

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    There were 30 gainers to 18 losers. Nigerian Breweries recorded the highest gain of 10 per cent to close at N31.90 per share. Unity Bank followed with a gain of 9.91 per cent to close at N1.22. NEM Insurance up by 9.77 per cent to close at N9.55 per share. Thomas Wyatt Nigeria rose by 9.43 per cent to close at N1.74 while UACN appreciated by 8.65 per cent to close at N14.45.

    On the negative side, Ecobank Transnational Incorporated (ETI) led the losers with a drop of 9.92 per cent to close at N21.35. DAAR Communications followed with a decline of 8.77 per cent to close at 52 kobo. C&I Leasing dropped by 7.14 per cent to close at N2.60, while Custodian Investment and R.T Briscoe lost 5.08 per cent each to close at N9.35 and 56 kobo respectively, per share.

  • Aradel Holdings to pay N170 per share as dividend, to list on NGX

    Aradel Holdings to pay N170 per share as dividend, to list on NGX

    Aradel Holdings Plc, an integrated indigenous energy Company listed on the NASD Exchange and the FMDQ, has announced a final dividend of N170 per share, as recommended by the Board of Directors was approved by the shareholders at its recently held 29th annual general meeting (AGM).  

    Speaking at the event, which held virtually, the Chairman of Aradel Holdings Plc, Ladi Jadesimi, said in the 2023 financial trading year, the firm’s performance was characterised by unprecedented growth, underpinned by the sound strategic initiatives implemented in 2022 in addition to the 2023 new initiatives.

    “We increased our overall crude production volumes and enhanced our well delivery performance and potential. The Alternative Crude Evacuation (ACE) system completed in 2022 was subsequently optimised further during the year under review, facilitating the safe evacuation of crude with the impact being a significant reduction in crude loss compared to levels experienced in prior years,’’ he explained.

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    These initiatives leading to 2023, ensured the Company recorded revenue growth of 234.5 per cent to N221.1 billion ($342.3 million) from the N66.1 billion ($156.1 million) attained in 2022. The Company also achieved a significant increase of 254.9 per cent in Profit After Tax (PAT) to N53.7 billion ($69.1 million) from N15.1 billion ($35.5 million) recorded in 2022.

    The Chief Executive Officer/Managing Director of Aradel Holdings, Adegbite Falade, hailed the performance thus: “The dogged pursuit of multiple initiatives, guided by the visionary wisdom of a most experienced Board of Directors, fuelled by an extremely hard-working, passionate and dedicated workforce created mutually assuring outcomes that enabled the outstanding growth in the operational performance seen in 2023.’’

  • ‘Recapitalisation will make Nigerian banks more competitive globally’

    ‘Recapitalisation will make Nigerian banks more competitive globally’

    The ongoing recapitalisation exercise will enhance the capacity of Nigerian banks to play increasingly dominant roles in Africa’s financial markets and compete for large-ticket transactions globally.

    Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Mr Sam Onukwue, said the decision of the Central Bank of Nigeria (CBN) to increase the capital requirements for various banks was in the best interest of the banking sector and the Nigerian economy.

    According to him, the new minimum capital for various banks is in order given the level of risks that banks bear nowadays.

    “I believe that the CBN has done the right thing if our banks should compete in the global market, including the African Continental Free Trade Area (AfCFTA). With the current inflation rate and exchange rate, it has become almost impossible for our banks to operate in line with new global minimum capital threshold

    “Besides, the level of risks which the banks bear today has significantly been exacerbated by the current macro-economic vagaries. I also believe the apex bank is repositioning the banks to be able to finance the envisaged $1 trillion economy in the next seven to eight years. In the light of the foregoing, I have no doubt that the apex bank is fair enough to base the new share capital on the level of authorisation of each bank.

    “The next thing is for every bank to justify why it should continue to operate in the banking sector. We must admit that various external and domestic factors have significantly impacted the Nigerian economy, necessitating an increase in minimum capital requirements for banks. This measure aims to fortify their capital base, enable them to absorb unforeseen losses and sustain their role in fostering growth and development,” Onukwue said.

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    He added that the new capital requirements of banks would also spur activities in the primary segment of the Nigerian capital market, which has remained largely inactive due to paucity of new issues over the years.

    “The primary market has been relatively inactive over the years because of the general lull in the economy. Potential companies that would have floated initial public offerings (IPOs) were reluctant for fear of undersubscription. To worsen the situation, many investors have lost money in the primary market due to failure of companies to list their shares in the secondary market after capital raising in the primary market.

    However, with the directive on banks’ recapitalisation, activities shall bounce back in the primary market,” Onukwue said.

    He pointed out that ASHON has always ensured that its members operate professionally, while the association collaborates with the capital market regulators, operators and investors in the ecosystem.

    He recalled that when the former Governor of the CBN, Professor Chukwumah Soludo, announced that banks in Nigeria should have a minimum capital base of N25 billion by the end of 2005, ASHON members served as stockbrokers to the issues, issuing  houses, and other areas of fund raising for the banks.

    “Many lessons were learned at the end of the exercise. Our members have  capacity to work with banks in various ways to meet the new requirements of  recapitalisation,” Onukwue said.

    The CBN had on March 28, 2024 announced new capital base on the basis of a bank’s authorization, ranging from N200 billion to N500 billion and this is expected to commence in the next two years.

  • Jaiz Bank funds 10,000-hectare rice farm

    Jaiz Bank funds 10,000-hectare rice farm

    Nigeria’s premier and largest non-interest bank, Jaiz Bank Plc, has provided funding for the establishment of a 10,000 hectare irrigation farm for Tiamin Rice Limited, a major business partner based in Bauchi State.

    The farm received the funding under a collaborative effort of the Private Sector-Led Accelerated Agricultural Development Scheme (P-AADS) of the Central Bank of Nigeria (CBN) and Jaiz Bank’s commercial funds.

    Speaking during an inspection visit to the farm, Managing Director, Jaiz Bank Plc, Haruna Musa, expressed satisfaction with the performance of the facility and tasked the farm management on the need to remain steadfast in meeting the bank’s obligations.

    He noted that the funding was in addition to the expansion financing of the company’s processing capacity from the existing 320 metric tonne per day (mtpd) to 920mtpd through the procurement and installation of additional 600mtpd processing machinery and equipment in Bauchi.

    Haruna pointed out that Jaiz Bank had financed several agricultural projects that have direct impact on the lives of the common people, business communities and the country’s economy in general.

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    Chairman, Jaiz Bank Plc, Alhaji Mohammed Mustapha Bintube, re-iterated the bank’s commitment to stimulating the real sector of the economy, particularly through agriculture.

    He acknowledged the multiplier effect of agricultural financing as a key enabler in employment generation, conservation of foreign exchange and overall food security of the country.

    “The bank is willing to do more of such partnerships with reliable and committed investors like Tiamin, to grow the economy,” Bintube said.

    Group Managing Director, Tiamin Rice Limited, Aminu Ahmed, commended Jaiz Bank’s management team for believing in the company’s capacity to manage the two projects.

    “The farm had commenced harvesting of about 800 hectares of rice plantation cultivated this dry season, and has started preparations for cultivation of about 2,000 hectares this wet season,” Ahmed said.

  • Fidelity Bank leads trading as equities gain N324b

    Fidelity Bank leads trading as equities gain N324b

    Fidelity Bank Plc was the most active stock yesterday at the Nigerian stock market as a strong positive sentiment led Nigerian equities to a net capital gain of N324 billion in the first trading session of the week.

    The market opened with widespread positive sentiment as investors sought to lock into value stocks in the high-end sectors of oil and gas, construction and manufacturing.

    With three gainers for every loser, the market closed with average return of 0.58 per cent, equivalent to net capital gain of N324 billion.

    The momentum of activities also improved considerably as total turnover rose by 148.33 per cent to 963.541 million shares valued at N13.498 billion in 8,657 deals. Fidelity Bank topped the activity chart with 605.257 million shares valued at N6.025 billion.

    Fidelity Bank’s activities appeared to be driven by buy sentiment as the stock closed within the top 15 gainers with a gain of 6.52 per cent to close at N9.80 per share.

    The All Share Index (ASI)- the common value-based index that tracks all share prices at the Nigerian Exchange (NGX), rose by 0.58 per cent to close at 99,793.71 points as against its opening index of 99,221.14 points.

    Aggregate market value of all quoted equities also increased simultaneously from its opening vakue of N56.128 trillion to close at N56.452 trillion.

    The overall market position was driven by widespread positive sentiment, especially within the large-cap stocks such as Seplat Energy, TotalEnergies Marketing Nigeria, Julius Berger, Transcorp Hotel and Flour Mills of Nigeria among others.

    There were 30 gainers to 10 losers. Flour Mills recorded the highest gain of 10 per cent to close at N41.80 per share. TotalEnergies Marketing Nigeria followed with a gain of 9.98 per cent to close at N353.60. Access Holdings rose by 9.86 per cent to close at N18.95 per share. Chams Holding Company appreciated by 9.74 per cent to close at N1.69 while Veritas Kapital Assurance gained 9.52 per cent to close at 69 kobo per share.

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    On the negative side, eTranzact International led the losers with a drop of 9.90 per cent to close at N4.55. DAAR Communications followed with a decline of 9.52 per cent to close at 57 kobo per share. Champion Breweries and Unity Bank lost 6.67 per cent each to close at N2.80 and N1.12 respectively while Wapic Insurance shed 2.86 per cent to close at 68 kobo per share.

    Other most active stocks included Access Holdings, which recorded turnover of 93.067 million shares worth N1.744 billion. United Bank for Africa (UBA) traded 58.726 million shares valued at N1.261 billion. Nigerian Breweries traded 45.256 million shares valued at N1.267 billion while Zenith Bank traded 16.079 million shares worth N539.552 million.

    Analysts at Futureview Financial Services said they anticipated a mixed sentiment in the equities market, primarily due to the enduring allure of the fixed income market among investors.

    “This interest is fueled by expectations of increased rates in the Nigerian Treasury Bill (NTB) auction and the impending release of the inflation rate. However, amidst these factors, there remains an opportunity for sustainable growth, particularly in fundamentally strong stocks that currently find themselves in the oversold region. We foresee a selective pursuit of bargains, particularly in dividend-paying stocks, driven by the nearing corporate qualification and payment,” Futureview stated