Category: Equities

Nigerians have been urged to embrace savings culture and financial prudence in order to create a sustainable living standard, irrespective of changes in economic environment.

Managing Editor, Premiums Media Limited, Mr Dotun Oladipupo and Assistant Director, Lagos State Civil Service, Alhaji Abdur Rasak Misbahudeen agreed that savings and investments are important to creating and sustaining enduring livelihood.

Oladipupo, who is the Publisher of The Eagleonline newspaper and immediate past President of Guild of Corporate Online Publishers (GOCOP), said in this period of economic downturn, cultivating a savings culture would impact positively on a family living in the long run.

Misbahudeen noted the importance of collective savings and investment schemes as vehicles to long-term success of the individual members as such schemes provide cost efficiency and scales for members to achieve their personal objectives.

They spoke at the Annual General Meeting of Ikhwan Mutual Forum in Lagos. The theme of the meeting was: “Surviving the challenges of family upkeep, harsh economy and rising cost of living”.

According to Oladipupo, for every family to survive and thrive under the harsh economy, serious attention must be paid to costs, at home and in the offices, to whittle down expenses and maximise the benefits of every spending.

He said the family income must be structured in a way that it is diversified and sustainable, with all parties bringing values to the structure.

He noted the effects of factors such as climate change and health challenges on the socio-economic environment and cautioned that the global financial system may not get better, thus the need for families to imbibe self-discipline and prudence.

According to him, families should consider practice of bulk purchase of items as this helps to reduce costs and ensure stability of other plans despite any temporary changes in income flows.

He urged Nigerians to be creative; work out better alternatives; avoid imitating others blindly as well as being wasteful in order to successfully navigate the current economic challenges.

Misbahudeen added that the economic situation calls for families to be prudent in spending; focus on the needs instead of wants, as well as prepare the family’s budget.

“The cost of living is increasing geometrically and arithmetically but the salaries and wages of Nigerians are hardly increasing.  The take-home pay of a lot of workers can hardly take them home with the price of a bag of rice almost at par with the minimum wage.

“Just a few months down the line, a unit of gas cost just N250 but today it goes for N700 to N750 and it has a domino effect on the prices of goods and services,” Misbahudeen said.

According to him, the key strategies to survive and thrive in spite of the challenges rest on efficient personal planning.

“Do not spend the money you do not have to buy the things you do not want so as to impress the people you do not like. Spend carefully. Focus on your needs and not your wants. Your needs are things that are critical to your everyday survival. That should be your topmost priorities and until you have met them, you shouldn’t go to your wants.

“Live within your means, life is in stages and men are in sizes. Live your size per time. While you are trying to make money learn to live within your means.”

“Achieve food security for you and your family.  If you do not have money in your pocket but there is food at home, there is no problem. But if you do not have money at hand and there is no food at home, you are in crisis then. Do not buy food to last just one month, buy food to last three months or even six months and keep topping it monthly,” Misbahudeen said.

The Securities and Exchange Commission (SEC) and the Chartered Institute of Stockbrokers (CIS) have underscored the importance of professionalism and ethics in the sustainable development of the capital market.

At a meeting in Abuja, SEC, the apex capital market regulator and CIS, the largest self regulatory organisation (SRO) in the market, agreed that capital market operators need to maintain professionalism and good ethical conduct in the discharge of their duties.

Director-General, SEC, Mr. Lamido Yuguda said professionalism and ethics make the market more transparent, thereby attracting more investors.

He solicited the support of the CIS in the commission’s quest to improve professionalism and good conduct in the capital market while commending the institute for working in tandem with the overall interest of the market.

“CIS has supported the SEC in our various initiatives in the past and we hope that this support will continue with the various initiatives we plan to roll out this year. We, therefore, urge the CIS to encourage its members to uphold the Code of Ethics of the profession and as contained in the Rules and regulations of the commission,” Yuguda said.

He noted the importance of a harmonious working relationship between the regulator and the self-regulatory organisations adding that it would translate into a more vibrant capital market.

“It is very important for us to work harmoniously we want a harmonious capital market where the regulators and the self-regulatory organisations complement each other. We want a harmonious capital market where the forces compliment and rein-enforce each other and not fight. With all the initiatives we are bringing out in place, we are all heading towards a more robust and vibrant market,” Yuguda said.

He pointed out that capital market operators are the face of the market and they interact daily with investors adding that it is therefore important that they prioritise interest of investors over their own and be seen to demonstrate the highest level of integrity and transparency in conducting their activities.

According to him, poor conduct dissuades investors from the market and therefore counters the collective objective of broadening and deepening the market.

“We also expect that the institute will continue to make it mandatory for its members to undertake annual professional development programmes that address emerging issues. I believe that this will go a long way in ensuring that the practitioners in the market are highly skilled and are equipped to make real impact towards growing the market,” Yuguda said.

President, Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe commended the SEC on the various initiatives is has been carrying out in a bid to deepen and develop the market, adding that stockbrokers would continue to provide the necessary supports.

Past President of CIS, Mr. Ariyo Olushekun added that CIS is committed to working with the SEC to ensure professionalism in the capital market, improve ethical standards and weed out bad eggs in the market.

He said collaboration among the regulators will strengthen confidence and lead to more investors back to the market so that the market can play the role it is supposed to play in the economy of the country.

He assured that CIS will always work with the SEC not only to develop the market but also to police the market.

 

 

FMDQ Securities Exchange has listed two commercial papers and four mutual funds worth about N154 billion, further deepening the tradable instruments at the Nigerian capital market.

The newly admitted securities included a N100 billion commercial paper (CP) issuance by Providus Bank, a N50 billion CP issuance by NOVA Merchant Bank and N2.5 billion mutual funds and a $2 million Eurobond fund by Emerging Africa Asset Management Limited (EAAML).

Providus Bank is a financial services provider licenced as a commercial bank to provide banking, investment and wealth management services to individuals and businesses.

NOVA Merchant Bank provides financial services covering corporate banking, investment banking, advisory, capital markets, and wealth and asset management.

Managing Director, NOVA Merchant Bank Limited, Mr. Nath Ude said the listing of the N50 billion CP programme on the FMDQ platform further gives credence to NOVA Merchant Bank’s beliefs in the debt capital market.

He said the new CP programme puts the bank in a position to broaden its potential funding sources and create superior value in the financial market which it serves.

“This comes after the successful listing of our N10 billion bonds on FMDQ Exchange which was oversubscribed by 300 per cent last year. We remain driven by our aspiration to transform the African financial services landscape with fresh thinking and innovative solutions,” Ude said.

FMDQ Exchange also listed one billion units of N1 each of Emerging Africa Money Market Fund, one billion units of N1 each of Emerging Africa Bond Fund, 20,000 units of $100 each of Emerging Africa Eurobond Fund and 500 million units of N1 each of Emerging Africa Balanced Diversity Fund, all under the management of Emerging Africa Asset Management Limited (EAAML).

EAAML is a subsidiary of the Emerging Africa Group, which provides portfolio management services to individual and institutional investors globally.

Managing Director, Emerging Africa Asset Management Limited (EAAML), Ms. Ada Ijara said the listing would give the funds the desired visibility and transparency provided by the platform.

According to her, the four mutual funds, which are duly registered by the Securities and Exchange Commission (SEC) provide corporate and individual investors with opportunities to invest in a wide range of underlying assets such as quoted equity stocks, bonds, Eurobonds, treasury bills and other fixed income instruments.

“The Emerging Africa Money Market Fund invests in liquid and low risk assets while providing capital preservation and competitive returns. The Emerging Africa Bond Fund is suited for moderately conservative investors and offers better returns with moderate risk. The Emerging Africa Eurobond Fund provides a hedge against local currency volatility by investing in US Dollar denominated fixed income securities at competitive returns. The Emerging Africa Balanced Diversity Fund offers a moderate exposure to equities and fixed income whilst advancing gender diversity with its focus on equities of companies with proven gender diversity at board and management levels.

“The four mutual funds offer great value to the investing public, catering to their varying risk appetites and investment preferences. We are grateful to FMDQ Exchange for providing benefits to the Funds listed on its platform, including but not limited to, global visibility through the dedicated ‘Funds’ page on the Exchange’s corporate website and price transparency to the funds through their inclusion in the FMDQ Daily Quotations List,” Ijara said.

Group Chief Executive Officer, EAC Advisory Limited, Mrs. Toyin Sanni, the sponsor of the listing on FMDQ Exchange, described the mutual funds comprehensively innovative investment products.

“We thank the SEC on the support provided for initiatives like this which broaden alternatives for retail investors, whilst providing robust regulatory oversight for the protection of investors. We are excited to partner once again with FMDQ to introduce superior products to the Nigerian capital market. We laud FMDQ for providing an efficient listing process, governance oversight, transparent pricing mechanism, and access to a broad investor base. The Emerging Africa Group will continue to partner with innovative Issuers to present attractive investment opportunities from African markets,” Sanni said.

he Securities and Exchange Commission (SEC) and the Chartered Institute of Stockbrokers (CIS) have underscored the importance of professionalism and ethics in the sustainable development of the capital market.

At a meeting in Abuja, SEC, the apex capital market regulator and CIS, the largest self regulatory organisation (SRO) in the market, agreed that capital market operators need to maintain professionalism and good ethical conduct in the discharge of their duties.

Director-General, SEC, Mr. Lamido Yuguda said professionalism and ethics make the market more transparent, thereby attracting more investors.

He solicited the support of the CIS in the commission’s quest to improve professionalism and good conduct in the capital market while commending the institute for working in tandem with the overall interest of the market.

“CIS has supported the SEC in our various initiatives in the past and we hope that this support will continue with the various initiatives we plan to roll out this year. We, therefore, urge the CIS to encourage its members to uphold the Code of Ethics of the profession and as contained in the Rules and regulations of the commission,” Yuguda said.

MTN Nigeria Communications (MTN Nigeria) Plc has the potential to grow its earnings by double digits and has more than a quarter headroom for share price appreciation given the overall outlook of the telecommunications sector and MTN Nigeria’s leading position.

In their latest stock analysis, analysts at Cordros Capital said they believe MTN Nigeria is well-positioned to benefit from the structural upsides in Nigeria’s fast-growing telecommunication sector given its market leadership position, growing 4G coverage, and rising footprints in the rural areas through its mobile money (MOMO) agents.

The review came on the heels of the release of the audited report and accounts of MTN Nigeria for the 2021 business year. Key extracts of the audited report and accounts for the year ended December 31, 2021 showed that gross revenue increased by 23.3 per cent to N1.7 trillion. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 27.9 per cent to N877.1 billion with EBITDA margin increasing by 2.1 percentage points to 53.0 per cent. Profit after tax rose by 45.5 per cent to N298.7 billion, implying earnings per share of N14.67. The underlying business fundamentals showed that while mobile subscribers decreased by eight million to 68.5 million, active data users increased by 1.7 million to 34.3 million.

Also, active fintech subscribers rose by 4.8 million to 9.4 million.

Analysts said they expected 2022 earnings to be “propelled by the growth in voice, data and fintech revenue, as well as improved operational efficiency”.

Analysts noted that based on the latest earnings report and the outlook, MTN Nigeria’s net profit may rise by 34.5 per cent to some N401.58 billion in 2022, translating to earnings per share estimate of N19.73 per share compared with N14.67 recorded in 2021.

According to analysts, on the basis of the 2022 earnings estimate, dividend per share may rise by 34.5 per cent to N17.64 for the 2022 business year as against N13.12 earmarked for the 2021 business year. The estimated dividend for 2022 implies a dividend yield of 10.4 per cent on the company’s recent public offer price of N169 per share and nearly nine per cent on its current market share price.

Cordros Capital increased its target share price for MTN Nigeria to N248.18 from its previous estimate of N226.48, implying a potential upside of 25.3 per cent based on the price of N198 per share recorded as at the opening of the stock market this week.

Analysts said based on the 2022 estimates, MTN Nigeria trades at price earnings ratio of 10.0 times and EV/EBITDA of 4.8 times compared to emerging market peers average of 20.7 times and 6.6 times.

“Consequently, we upgrade our rating to a ‘BUY’ from ‘HOLD’,” Cordros Capital stated.

Analysts noted that MTN Nigeria added approximately one million subscribers following the alignment of its SIM registration and activation centres with regulatory guidelines and this trend is expected to continue with improvement in subscribers’ acquisition and forecast growth of 4.4 per cent to 71.49 million customers in 2022.

According to analysts, data revenue will remain a key driver of service revenue in 2022 as the company sustained the robust expansion in data revenue, which grew by 55.3 per cent to N516.21 billion in 2021.

“It is pertinent to note that MTN Nigeria acquired and activated an additional 800MHz spectrum in first quarter 2021. Furthermore, the company was awarded the bid-at an auction held in December 2021 to acquire a 100MHz spectrum licence in the 3.5GHz band to roll out 5G services. Management expressed optimism that 5G will provide the foundation upon which future network performance will be built.

“We believe this will give the company a competitive advantage over its peers, given that it is the only mobile network operator (MNO) to be awarded a 5G license. In addition, we believe the country favourable demographics underpinned by the large population-estimated at 200 million with a median age of 19, rising adoption of social media platforms for communication and digital marketing, and increasing internet penetration are key drivers of data revenue.

Accordingly, we estimate data revenue will grow by 26.5 per cent in 2022. Further out, we project data revenue will grow by an average of 25.7 per cent over 2022 to 2026, while the data revenue share will rise to 43.2 per cent in 2026 from 33.6 per cent in 2022,” Cordros Capital stated.

Analysts noted that while network operating costs will remain elevated in the year given the pass-through impact of the naira devaluation on BTS lease cost, the continued rollout of 4G sites to improve 4G coverage, and maintenance-related expenses, revenue growth and operational efficiencies will limit the overall impact on margins and EBITDA margin will rise to 53.6 per cent in 2022 and average 54.8 per cent between 2023 and 2026, hitting a peak of 55.4 per cent in 2026.

THe 2023 electioneering may lead to further depletion in foreign portfolio inflows and increase in outflows as foreign portfolio investors (FPIs) remain on the sidelines.

Managing Director, Morgan Capital Securities Limited, Mr Rotimi Olubi, who spoke yesterday at a forum organised by the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos, said political risk, capital controls and rate hikes are major factors that will shape the Nigerian economy and determine the outflows of FPIs.

Speaking on the theme: “A Review of 2021 Market Performance and Factors that Will Shape it in 2022”, Olubi, an economist,  added that the foreign exchange (forex) would likely come under strong pressure as interest rate hikes in advanced economies would result in portfolio outflows from emerging markets.

He noted that domestic investors would be the key players responsible for the movement of the market and liquidity.

“Electioneering, rate hikes, and capital controls by the monetary authorities are expected to cause further foreign portfolio outflows and cause FPIs to remain on the sidelines.

“Even as the economy continues its recovery, corporate earnings of companies in the consumer goods and industrial goods sector are expected to be impacted by high input costs caused by high inflation and higher cost of capital due to interest rate hikes.

“Interest income of financial services institutions such as banks is expected to rise in Nigeria if interest rates rise as expected. This is because the U.S could decide to raise interest rates.

“This act by the U. S. could lead to downward pressure on commodity prices, drop in global liquidity, increase in the cost of funds from the international debt market and due to the fact that Ukraine and Russia are still having conflicts, oil prices might go up and production could decrease.

“Companies in the oil and gas sector are expected to have a solid year driven by strong oil prices, increasing global oil demand and OPEC+ cuts,” Olubi said.

He said with relatively low infection rates and fatalities from the pandemic, the likelihood of an economic shutdown was non-existent.

“The GDP growth is expected to grow by 3.86 per cent in 2022 supported by further improvements in  agriculture, manufacturing, services and the oil sector and increased government spending in areas such  as advertising, printing, media, among other campaign related sectors.

“Major downside risk to this outlook is the security situation in several parts of the country, capital controls in the FX market and any unexpected severe mutation in COVID-19,” Olubi said.

According to him, being an election year, government spending is expected to be at its highest complemented by  improved oil revenue.

He said this would lead to wider fiscal deficit and further increase in an already elevated debt-servicing cost.

On the removal of oil subsidy, Olubi said the suspension  would dampen the impact of high oil prices in the global markets to the Federal Government’s purse.

“The Federal Government will need to focus on reducing the leakages associated with the current subsidy and under recovery regime,” Olubi said.

He said inflation was expected rise further following a direction reversal last December  where inflation rose after an eight-month downward trend.

“Although the MPC retained all parameters, they could still be forced to raise interest rate to combat inflation and reduce the negative real interest rate and that is if the U.S decides to raise their interest rate.

“Accordingly, the MPC could be forced to raise Interest rates to combat inflation and reduce the already negative real interest rate,” Olubi said.

Speaking on the 2021 performance of the economy as well as its markets, Olubi noted that the country witnessed its largest quarterly growth (5.01 per cent) in over six years in the fourth quarter of last year due to positive performance recorded in the non-oil, agric and services sectors.

He pointed out that foreign investors remained on the sidelines as domestic investors, which stood at 77 per cent, dominated the Nigerian capital market (NCM).

According to him, this was because foreign investors could not access forex due to policies eked out by the Central Bank of Nigeria (CBN) while adding that there would be more decline in foreign participation in 2022.

Organisers of music reality show, Nigerian Idol, have announced that N100 million worth of prizes is up for grabs in the seventh edition which premieres on Sunday, February 6, 2022 on DStv and GOtv.

This includes a recording deal, brand new SUV, cash prizes, and other attractive prizes from the headline sponsor, Bigi, Nigeria’s leading and favourite range of carbonated soft drinks with 13 variants from the stable of Rite Foods Limited.

After virtual and live auditions, which recorded over 10, 000 entries for the music reality show across Nigeria, Season 7 premieres on the screen with refreshingly thrilling and rousing musical moments for lovers and fans of the show.

Bigi returned as the headline sponsor for the second time. The Bigi brand, a truly world-class and proudly Nigerian brand will journey with all participating contestants as well as fans as the show goes live.

Speaking on the sponsorship, Assistant Brand Manager, Beverage and Bakery, Rite Foods Limited, Boluwatife Adedugbe, espoused her company’s commitment to talent promotion and growth of the entertainment industry by discovering and rewarding music talents in Nigeria.

“The Bigi brand is here for the second time to ensure that this season produces a crop of fresh talents who will be well-grounded to conquer both the local and global music scene.

“This is in line with Rite Foods’ commitment to promoting young talents and boosting the entertainment sector. We can’t wait to go with all contestants and viewers on this refreshing music journey,” she stated.

Ms. Adedugbe further reiterated the company’s unwavering effort to make the partnership with the Nigerian Idol platform a worthy one by helping to amplify the show and provide the much-needed engagement necessary to thrill, excite and refresh viewers throughout the season.

She also stressed that the music platform will give the Bigi brand the space required to connect with its consumers who are great lovers of music. “Music is a language which the Bigi brand explores to connect with the hearts and minds of consumers.

As such, the Nigerian Idol platform is an excellent platform for Bigi, a proudly Nigerian brand, to connect aggressively with its consumers. With all 13 variants, there is a Bigi for every moment of the show – as a fan, viewer, or contestant,” she added.

The Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, yesterday, underscored the place of the private sector as key driver of economies within the continent and beyond, saying “there can’t be AfCFTA without the full participation of the private sector.”

Speaking at the occasion of the ‘Lighting of the Africa Trade Torch’ held virtually on Thursday, January 20, to celebrate the commencement of trading activities under the AfCFTA, Adebayo said the private sector has the sole power to operationalise the agreement.

The Lighting of the Africa Trade Torch was organised by the Pan-African Manufacturers Association (PAMA).

PAMA aims to encourage cooperation between African manufacturers such that there can be market transformation in order to grow Small and Medium Enterprise (SMEs) and subsequently create value chains to achieve Africa’s industrialisation agenda.

The Minister described the conceptualization of the Lighting of the Africa Trade Torch as “most appropriate.”

He, however, said the effects of the AfCFTA on economic and social transformation depend on the degree to which the private sector can seize the opportunities the agreement provides.

He noted that one of the opportunities is the chance to make African economies more competitive and enable development and elevation of regional value chains with focus on SMEs.

Citing a report by PWC, Adebayo said, for instance, that SMEs in Nigeria contribute about 48 per cent of national Gross Domestic Product (GDP), which has been consistent in the last five years.

“They also account for about 96 per cent of businesses and 84 per cent of employment opportunities within the country,” he added.

The Minister also said another survey conducted by the National Bureau of Statistics (NBS) and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) show that the Nigerian SME sector is strategically positioned to absorb up to 80 per cent of jobs.

SMEs, the survey added, also improve per capita income, increase value addition to raw material supply, improve export earnings and enhance capacity utilization in certain key industries.

“Accordingly, I would like to call on the Nigerian private sector to fully key into the AfCFTA and also lend their support to the work that is being done by the African Business Council,” Adebayo said.

While noting that the private sector is the engine of African economy, he appealed to Governments to assume the important role of promoting trade development.

“For the private sector to succeed, we need entrepreneurial states with governments that would assume regulatory, coordinating and catalytic roles. African governments should be the lead risk takers in terms of investing in large-scale innovations and technology that would drive economic success,” the Minister stated.

According to him, with Governments at the driver’s seat and the private sector as the engine, “AfCFTA can set Africa on the path towards economic and social transformation, build an Africa of the 21st Century that would take its rightful place in global value chains and thus create “the Africa We want”.

In his remarks, the Interim Chairman PAMA, Engr. Mansur Ahmed, said the Lighting of the Africa Trade Torch was a testament of the continent’s potential and its collective determination to promote and trigger engagement in intra-Africa trade and cross-border value chains.

Ahmed said the Association shall serve as a central continental body that would engage the African Uion and other continental bodies on behalf of African manufacturers on matters concerning the growth and development of their industry.

He, therefore, assured African manufacturers that with PAMA, there would be an increase in intra-Africa trade through the creation of competitive and comparative advantages for different markets.

“Furthermore, I would like to reassure the African Business Council of PAMA’s commitment to advancing and prospering the efforts of the AfCFTA in order to build high quality continental value chains,” Ahmed said.

He applauded the efforts the Manufacturers Association of Nigeria (MAN), which, he said, led to the birth of PAMA. “Since the inception of PAMA, MAN has taken the lead role in ensuring the ascent of the Association to a continental platform, a feat that has not been easy,” he stated.

Cedar Advisory Partners, an investment company that specialises in the health care ecosystem, has become the largest shareholder as Union Diagnostics Plc delists from the Nigerian Exchange Limited (NGX).

The Nigerian Exchange had officially delisted Union Diagnostic and Clinical Services Plc from its main board following the conclusion of its scheme of arrangement. The medical diagnostics firm earlier in September 2021, notified the Exchange of its decision to delist from the Exchange’s board.

The transaction involved the transfer of 1,407,885,051 units of shares to Cedar in consideration for cash payment of 35 kobo per share to the scheme shareholders, taking the total cash consideration to N492,759,767.85. Upon the conclusion of the transaction, the company has been delisted from the Exchange.

According to the scheme of arrangement published in January 2021 by the company: “A total of 1,407,855,051 units of shares held by the scheme shareholders were to be acquired by Cedar Advisory Partners Limited (“Cedar”), an existing shareholder with a total of 20.04 per cent shareholdings.

“The decision to delist from the Exchange by the company was motivated by certain challenges around the inability to raise capital to fund expansions, the challenging operating environment and strong headwinds specifically relating to poor health-seeking behaviour of Nigerians, gross underfunding of the healthcare sector and depreciating exchange rates that affect importation of consumables.

“Following the delisting, the post-scheme shareholding structure entails, Cedar Advisory Partners Limited, Lifecare Partners Limited, Akinniyi Ambrose Olusola, Akinniyi Elizabeth Abimbola emerge as the shareholders of the company with a respective shareholding of 2,119,771,663; 1,038,000,000; 233,462,131; 161,904,734, reaching a total of 3,553,138,528 units of shares.

The disclosure further read: “Cedar specialises majorly in the health care ecosystem with a focus on growth capital investing and value creation through operating turnaround. Cedar Advisory Partners Limited holds 59.66% shareholdings in the company following the acquisition. Lifecare Partners Limited is an accredited HMO in Nigeria, holding 29.21% shareholding in Union Diagnostics Plc. Dr. Akinniyi Olusola, a Director of Union Diagnostics Plc, currently owns 98.50 per cent of equity interest in Lifecare Partners Limited”.

“The shareholders unanimously approved the delisting of the Company’s shares at the last Annual General Meeting and Court Ordered Meeting held on the 25th of January, 2021. The Company has obtained all relevant regulatory approvals from Securities Exchange Commission (SEC), the Nigerian Exchange Limited, Federal High Court, Federal Competition and Consumer Protection Commission (FCCCP),” the company said.

Public companies operating in Nigeria now have to choose one of two options in filing of their annual financial statements as the Securities and Exchange Commission (SEC) begins full implementation of the dual filing options for corporate earnings.

In a circular released yesterday, the apex capital market regulator noted that the pilot scheme on filing of fourth quarter and annual audited financial statements by public companies was introduced in March 2019, which provided companies with timeline and choice on the filing of both fourth quarter and annual financial statement.

According to SEC, public companies now have the option of filing the unaudited fourth quarter financial statement within 30 days after the end of the quarter and file annual audited financial statements within 90 days after the year-end.

Alternatively, public companies may not to file the fourth quarter unaudited returns but file the annual audited financial statements within 60 days after the year end.

“Consequently, public companies are advised to adopt a filing regime and strictly adhere to its preferred filing option.

“Public companies should note that failure to abide by an adopted filing regime will be deemed a violation of Section 60 of the Investments and Securities Act, 2007,” SEC stated.

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), the Nigerian Exchange Limited (NGX) and other major capital market stakeholders have deepened their collaboration to improve innovative initiatives that will drive the development of the Nigerian capital market.

Flowing from a shared mandate to deepen liquidity in the market, increase domestic and foreign participation, and position the Nigerian capital market for global relevance, NGX, SEC and other capital market stakeholders held a strategic meeting in Abuja to discuss viable initiatives to further develop the market.

Director-General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda noted that the past two years have been challenging for the Nigerian capital market, which was largely a reflection of pandemic-related challenges in global markets.

He, however, pointed out that the NGX has continued to deploy capable resources to tackle elements militating against the market’s growth including Smart Surveillance System and X-Mobile App for retail trading; upgrading of the X-Issuer Platform to further enhance market integrity; and electronic offer platforms.

“It can, however, be agreed that the efforts made and gains achieved in this regard are as a result of the collective efforts of various stakeholders in the capital market, including the Commission and NGX. Consequently, as the apex regulator, the SEC will continue to support all efforts aimed at making our markets fairer, more efficient and more transparent, particularly in the areas of regulation and technology,” Yuguda said.

Chief Executive Officer, Nigerian Exchange (NGX), Mr. Temi Popoola commended SEC for its unwavering support for the market.

“If you look at the trajectory of the market over the past year, there has been significant increase in market interactions with issuers, intermediaries and operators like NGX. It is not lost on us how much investment this takes and we have seen results from these engagements.

“It is our hope that this session will bring to bear opportunities for further development particularly in the areas of technology, digitisation of our markets, attracting listings, collaborating across the ecosystem and product origination,” Popoola said.

He noted that the NGX has continued to implement its strategic objectives to democratise finance in Nigeria and create a market that is attractive for issuers, intermediaries and investors alike.

According to him, in the light of engagements such as the NGX TechNovation Conference and the NGX Capital Markets Conference, and the meeting with the SEC, the Exchange surely has exciting plans for the market.