Category: Equities

Oando Plc has been included in crucial index of Nigeria’s 30 largest and most active companies, underlining the growing importance of the energy group as one of the most influential companies denoting the direction of the Nigerian economy.

The Nigerian Exchange (NGX) yesterday published the results of its full-year market index review for the stock market indices. The major highlight of the review, which is done twice a year, was the inclusion of Oando as part of the NGX 30 Index.

The NGX 30 Index is a weighted benchmark that tracks pricing and activity trends among Nigeria’s 30 largest quoted companies. It has considerable influence over the overall market position and the national economy as the 30 biggest companies account for more than two-thirds of Nigeria’s stock market capitalisation.

The NGX noted that the stock market indices were developed to allow investors to follow market movements and properly managed investment portfolios.

Designed using the market capitalisation methodology, the indices are rebalanced on a semi-annual basis on the first business day in January and in July.

Market analysts said the upscale of Oando to the NGX 30 Index underscored sustained investors’ appetite for the energy group, which led to considerable improvement in its market value and consistency of trading.

The NGX 30 Index has a primary place among the group and sectoral indices. The NGX began publishing the NGX 30 Index in February 2009 with index values available from January 1, 2007.

On July 1, 2008, the NGX developed five sectoral indices with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors. The sectoral indices comprise the top 15 most capitalised and liquid companies in the insurance and consumer goods sectors; the top 10 most capitalised and liquid companies in the banking and industrial goods sector; and the top seven most capitalised and liquid companies in the oil and gas sector.

In July 2012, the NGX launched the NGX Lotus Islamic Index (NGX LII) which consists of companies whose business practices are in conformity with Shari’ah investment principles, with the aim of increasing the breadth of the market and creating an important benchmark for investments as the alternative ethical and noninterest investment space widened.

The companies that appear on the Islamic index have been thoroughly screened by Lotus Capital Halal Investment, in accordance with a methodology approved by an internationally recognized Shari’ah Advisory Board comprising of renowned Islamic scholars.

Addressing shareholders at the group’s recent annual general meeting, Group Chief Executive, Oando Plc, Mr. Adewale Tinubu reiterated the commitment of the group to its core values of teamwork, respect, integrity, passion and professionalism, which it would continue to apply in its operations and engagement with stakeholders.

According to him, the group’s ethos has been driven by these values, and the group has evolved and succeeded year after year.

“The ultimate test of our capacity to be sustainable is having challenges. We’re ready to face them and deal with them when they come; ready to ensure that we apply these same principles and maxims in dispute resolution. We appreciate everyone who played an active role in enabling us to reach a resolution with the SEC,” Tinubu said.

He assured the shareholders of management’s commitment towards creating value for and protecting the interest of all shareholders.

Major stakeholders in the Nigerian capital market yesterday expressed support for the introduction of regulatory charges on fixed income securities by Securities and Exchange Commission (SEC).

President, Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe said the apex capital market regulator has brought significant regulation to all markets including the fixed income markets with a view to bringing more sanity to those markets.

“Therefore, there is no issue   with the introduction of a regulatory charge on transactions. However, whether it should be as high as 0.02 per cent is open to discussion. We can’t ignore the fact that such will definitely increase the net yield on instruments, reduce spreads and might impact trade volumes. I am sure the market ecosystem will ultimately arrive at a point of equilibrium for all participants,” Amolegbe said.

Chairman , Association of Securities Dealing Houses of Nigeria ( ASHON), Mr Sam Onukwue said SEC was in order to introduce regulatory charge on fixed income securities.

“I do not think it’s out of place for SEC to do so. The Commission has been charging on equities all along. The proposed charges on fixed income securities should not discourage investors from the asset class. Investors have their preferences and would always weigh their risk tolerance and other fundamentals in making investment decisions. We have risk takers and risk averters. The former invest more in equity while the latter have strong hold in fixed income securities,” Onukwue said.

Meanwhile, SEC has reminded all fund managers that payment of the annual supervisory fee to the Commission became due from the 1st January 2022 and full payment must be made on or before 31st January 2022.

In a circular, the Commission drew the attention of all registered fund and portfolio managers to the SEC rule on annual supervision fees for collective investment schemes (CIS) and regulatory fees for discretionary and non-discretionary funds and portfolios issued on January, 21 2021 and the amendment thereto issued on December 20, 2021.

The circular stated that the payment for 2021 annual supervisory fee shall be based on the value of net asset value (NAV) as at December 31st 2021 and annual regulatory fee for discretionary and non-discretionary funds and portfolios

According to the circular, annual supervisory fee for CIS under management shall be 0.2 per cent of the NAV of CIS under management and be computed and accrued daily for each CIS.

The circular also stipulated that all fund managers shall pay the annual supervisory fee to the Commission not later than 31st January of every year and that the payment for 2021 annual supervisory fee shall be based on the value of NAV as at December 31st 2021.

On annual regulatory fee for discretionary and non-discretionary funds and portfolios, the SEC stated that every fund and portfolio manager shall pay not later than 31st January of every year annual regulatory fees to the Commission.

“The fees are 0.25 per cent of the NAV of all discretionary and non-discretionary funds and portfolios-other than CIS, under the management of the fund and portfolio manager for retail investors and 0.01 per cent of the NAV of all discretionary and non-discretionary funds and portfolios-other than CIS, under the management of the fund and portfolio manager for qualified investors.

“Accordingly, funds and portfolio managers should note that late payment will attract a penalty of N100,000 and a daily sum of N5,000 for every day of default, or such other stiffer penalty as the Commission may determine,” the circular stated.

Access Bank Plc will be rewarding its customers with cash prizes, mobile phones, gift hampers, bags of rice, groundnut oil and other various gift items in the XtraWin 12 days of Christmas offer.

Group Head, Products and Segments, Access Bank Plc, Adaeze Ume said the bank which is renowned for regularly rewarding its customers, is offering the yuletide reward campaign as an open offer for all new and existing customers  of the bank.

The campaign tagged ‘12 Days of Christmas’ will run from December 13 to December 31, 2021

She said that the aim of the campaign is to deliver on the promise of the bank to continually reward customers for their loyalty and savings culture.

“In the spirit of the season, we are going to be rewarding our loyal and new customers with mouth-watering gifts. Starting from the 13th of December, 80 customers will emerge as winners of various gift items like cash rewards, Hampers, Bags of Rice and other various gift items. And on Christmas day, which is the grand Jingle bell draw, 2,000 customers will win 5k each plus the grand prize of an iPhone13 or PS5 will be given out to the winners on December 31, 2021.

“To qualify for the XtraWin draw, all our customers need to do is to carry out five transactions daily on the AccessMore app or using the USSD code *901#. Customers who qualify for the 12 days draw will automatically qualify for the jingle bell day draw on Christmas day.

“New customers can join the winning train by walking into any Access Bank close to them or simply dial*901# to open an account and transact five times daily using the  AccessMore app or *901# to qualify for the draw,” Ume said.

She noted that the XtraWins campaign has rewarded over 70,000 customers since inception.

According to her, Access Bank is recognized as one of the most innovative financial institutions in Africa.With over 40 million customers and 600 branches nationwide, it offers a range of products and services tailored to suit needs and lifestyle of its customers across multiple segments.

The Lagos Commodities and Futures Exchange (LCFE) has underscored the importance of commodities exchange to the development of Nigerian economy.

At an interactive session on “LCFE’s Journey so far and Outlook for 2022″, Managing Director, Lagos Commodities and Futures Exchange (LCFE ), Mr Akin Akeredolu-Ale said advocacy remains a major strategy for the exchange in its quest to create awareness on how the commodities exchange can grow the nation’s Gross Domestic Products (GDP).

According to him, while the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have played commendable roles in ensuring uptrend of activities in the Nigerian commodities ecosystem, there is still the need to address dearth of fungible instruments and put a proper risk management structure in place to activate trading in the ecosystem.

He explained that for commodities ecosystem to thrive and contribute to a country’s economic growth and development, instruments had to be created and rules and guidelines are being developed and approved.

“Nigeria must have a full structure in place for commodities exchanges to operate optimally. It is like a green field in Nigeria. A lot of participants are used to trading equity and fixed income securities. At LCFE, our outlook for 2022 is more on advocacy to encourage trading in this Ecosystem, particularly our teaming youth population. We have fungible instruments.

“We have commenced proof of concept trade as preparation to full trade. Commodities contribute about 70 percent to Nigeria’s Gross Domestic Product (GDP). The industry generates 80 percent employment. The focus of foreign countries on Nigeria and Africa is commodities and most of the time not infrastructure.

“In 2022, we shall partner with the media to embark on aggressive financial literacy that involves schools, religious groups and other platforms. We shall engage SEC, Federal, State and Local Government Agencies. Our other areas of focus for development are non-Interest backed commodity instruments and other sources of finance instruments,” Akeredolu-Ale said.

He said the exchange has partnered with NG Clearing in other to trade derivatives.

He explained that LCFE was already working on guidelines and frameworks for commodities notes, listing of Exchange Traded Funds (ETF), cold chain and logistics investments, stakeholders’ engagement and strategic partnerships.

Head of Operations, Lagos Commodities and Futures Exchange (LCFE), Dr Allwell Umunnaehila outlined some of the milestones of LCFE within its short period of existence, including on-boarding of dealing member firms, settlement banks, signing of service level agreement (SLA) with NIBSS, and collateral managers, commencement of trades, setting up of rules for private and public listings, incorporation of Tradenet and Spurtech and VPN connectivity for dealing member firms.

Dangote Cement Plc has listed commercial papers (CPs) worth N41 billion on FMDQ Securities Exchange.

The CPs included Dangote Cement’s N15.20 billion Series 1, N7.96 billion Series 2 and N17.84 billion Series 3 CPs. The securities were issued under the cement giant’s N150 billion CP issuance programme.

The net proceeds from the three CPs will be used to support the company’s short-term working capital and funding requirements.

Dangote Cement, a subsidiary of Dangote Industries, is Sub-Saharan Africa’s leading cement company, with a production capacity of 48.6 million tonnes per year across 10 countries.

FMDQ noted that with the growing interest of corporate entities in the commercial paper market to finance short-term funding and liquidity requirements, FMDQ Exchange remains unrelenting in its provision of integrated services to stakeholders, spearheading initiatives to boost secondary market liquidity and facilitating effective price formation, among other activities through its platform.

“The Exchange shall continue to support institutional growth and stimulate continuous development of the economy at large, through the promotion and provision of a world-class quotations service. By quoting these CPs on the Exchange, Dangote Cement is availed unique benefits which include, but are not limited to, enhanced investor confidence, transparent and relevant information disclosure on the issue, effective price formation and global visibility,” FMDQ stated.

FMDQ Group pointed out that as a vertically integrated financial market infrastructure group, it is strategically positioned to provide registration, listing, quotation and noting services; integrated trading, clearing and central counterparty, settlement, and risk management for financial market transactions.

The group also provides depository of securities, as well as data and information services, across the debt capital, foreign exchange, derivatives and equity markets, through its wholly owned subsidiaries including FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited.

“FMDQ Securities Exchange continues to demonstrate its commitment to fostering the development of the Nigerian debt capital market by championing and supporting strategic market-driven initiatives, as well as remaining the choice platform for the registration, listing, quotation, trading and reporting of financial securities, amongst other activities,” FMDQ stated.

Cadbury Nigeria Plc, a subsidiary of Mondelçz International, has said its signature corporate social responsibility (CSR) initiative tagged Nutrition and Healthy Lifestyle project, which officially ended on December 9, 2021, had achieved the desired outcomes.

The four-year project, which cost about $1 million, was sponsored by Mondelçz International Foundation, and implemented by Helen Keller International, as part of the organisation’s CSR activities aimed at tackling malnutrition and obesity among children in some selected primary schools within its host communities in Lagos State. Initially billed to end in December 2020, the project was extended to December 2021, due to the COVID-19 pandemic that affected activities in the schools last year.

In a statement, Managing Director, Cadbury Nigeria Plc, Mrs. Oyeyimika Adeboye said the company was pleased with the outcome of the pilot project funded by Mondelçz International, its parent company, as part of its commitment to promoting ‘Snacking Made Right.’

“We thank our implementing partner, Helen Keller International, for their dedication and professionalism.

“This is a project that we are all proud of. The results have been quite encouraging. The project has increased the knowledge of the target beneficiaries on how to promote good nutrition and healthy lifestyle. It has also enabled the pupils to participate more actively in class and consume nutrient-rich foods,” Adeboye said.

Country Director, Helen Keller International, Ms. Philomena Orji, said the past four years of work in public primary schools in Lagos have been exciting and fulfilling for Helen Keller.

“Thanks to our partnership with Mondelez International and Cadbury Nigeria, we have been able to directly reach 11,234 children with nutrition education and supported them to exercise more and grow nutrient-rich crops. Through this project, we have reached over 179,309 Lagosians. We are grateful to Mondelez International for the opportunity to impact the lives of children and their families,” Orji said.

Education Secretary, Ikeja Local Government Education Authority (LGEA), Hon. Amosu Akeem aid Helen Keller International complemented the efforts of the Lagos State Government by providing basic amenities in the beneficiary schools.

“There is no school you will go to in Ikeja that you will not see hand washing bowls,” Akeem said.

Mr. Hakeem Olalekan, Director, Home Grown School Feeding Programme, Lagos State Universal Basic Education Board, noted that: “The intervention of Helen Keller International in our schools and in Lagos State since the year 2018, has been a great blessing.”

Mrs. Bolanle Oni, Head Teacher, Ogba Primary School, and Chairman, Association of Primary Schools Head Teachers of Nigeria, Ikeja Branch, said she attended the training organized by Helen Keller International where she learnt how to establish a home garden and the choice of foods to promote a healthy life. “I want to say a big thank you to Helen Keller International for improving our knowledge on nutrition and the choice of foods we need to eat,” she added.

Similarly, Mr. Taiwo Oladapo, a teacher at Ojodu Primary School 2, expressed delight with the artificial grass donated to the school, noting that: “We have been able to identify pupils who will represent the school in some particular games because of their new-found interest in physical activities.”

For Mrs. Gladys Ine, a parent: “They have touched lives of the people in Ikeja LGA, especially in the nine schools where they have the project.”

According to the statement, which was issued by Frederick Mordi, Corporate Communications and Government Affairs Manager for Cadbury Nigeria, Mondelçz International will continue to invest in initiatives that add value to society in line with one of its values: ‘Do what’s right.”

Vitafoam Nigeria Plc  has attributed its steadily impressive performance to continuous investment in innovative products and services across its businesses.

Despite the inclement operating environment, Vitafoam has remained resilient with an average gross margin of 37.90 per cent in the last five years and the company’s shares is one of the most sought after on the Nigerian Exchange Limited (NGX) due to track record of consistent profitability.

Group Managing  Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi, explained that Vitafoam was no longer just  about manufacturing of rigid foams but had developed other innovative products through its subsidiaries in Nigeria and overseas.

He spoke during their facilities tour of Vitapur’s plant in Lagos by members of  Organisation for Technology Advancement of Cold Chain in West Africa {OTACCWA) and Nigerian Institute of Architects (NIA).

“Vitafoam is consolidating into core business with the introduction of innovative value added products and services. The Company is a full range solution provider for bedding and allied products. It operates strong Comforr Centres as one stop shop for discerning consumers, including baby products The quality products across its subsidiaries provide multiple choice for its different classes of consumers.

“Vitapur Nigeria Limited manufactures insulation boards, and sandwich panels amongst others, Vitavisco  produces elastic foam, pillow, and foam sheet used for construction, Vono produces metal and wood furniture, Vitablom and  the new baby,  Vitapart are into oil filtering production, the first of its type in the West Africa. Vitafoam group has factories in Kano, Jos, Aba, and Ikeja as well as offshores,”,  Adeniyi said.

Vitapur’s General Manager, Mr Yemi Mofikoya who made a comprehensive presentation on the company’s products and services stated that the Vitapur was willing to partner with the Federal Government for fiscal incentives to expand its operations and take advantage of the African Continental Free Trade Area ( AfCFTA) to export mass building materials and earn forex for Nigeria.

After the facilities tour, the President, OTACCWA, Mr Alexander Isong commended the Management of Vitapur for the state-of -the -art factory, saying  “ it  meets standard and the management should support the vibrant staff at the laboratory line”

Futureview Group has urged its clients to take advantage of the planned offer for subscription of 575 million shares by MTN Nigeria to beef up their portfolios.

The book building for institutional investors in the MTN offer closes today after which price for retail offer will be determined. Book building is a process by which an underwriter determines  the issue price of a security through an aggregate demand of institutional investors and high networth individuals.

Group Managing Director, Futureview Group, Mrs Elizabeth Ebi, advised her clients to subscribe to  the offer. Futureview Securities Limited is one of the accredited stockbrokers to the offer.

Head, Corporate Finance, Futureview Financial Services, Mr Solomon Amicki, said  MTN’s value would double after the offer because of the parent company controls over 85 per cent of the mobile money market in Ghana.

“The Central bank of Nigeria recently granted an approval in principle to MTNN and Airtel to operate Payment Service Banks (PSB) with final approval to follow in six months subject to specific requirements. The value of MTN is tipped to double as MTN already has this blueprint running in Ghana and this has been  very successful.

“The parent company controls 85 per cent of the mobile money market in Ghana and they raked in revenues of N84.9 billion in nine months through 2021 according to its financial statements. The MTN Momo business in Ghana is similar to what MTN would be able to do in Nigeria. Futureview Analysts are of the opinion that the huge subscriber base in Nigeria would shift the projected revenue up to N300 billion within 12 months.

“We also believe this new project would boost the fundamentals significantly and increase the share price above 80 percent in the next couple of months after commencement . Flutterwave Paystack and Kuda have tripled their valuation in the last three years by focusing majorly in the online payment space. Flutterwave is valued at over $5.4 billion and has concluded over 100 million transactions. MTN has over 65 million subscribers as at 2019 and we believe that a good chunk of these 65 million subscribers would execute more than 300 million online transactions with MTN Payment service platforms at their fingertips.

“The results of this continuous trend would double MTN’s N1.08 trillion valuation within the upcoming months .Other analysts believe that MTN would be facing stack competition with the existing players but we believe with MTN’s loyal subscriber base of above 65 million it would easily win this war. This is one of the many reasons we are encouraging you to be part of the book building process or buy the MTN shares when the offer opens,” Futureview stated.

Futureview had earlier encouraged its customers to subscribe to Dangote Cement’s offer for subscription  90-Day Series I Commercial Paper, 180-Day Series 2 and 270-Day Series 3 Commercial Paper of N50 billion each as they have high liquidity value.

The Capital Market Correspondents Association of Nigeria (CAMCAN) has concluded plans to hold its 2021 annual workshop, a strategic forum to articulate issues that can move the Nigerian capital market and economy forward.

This year’s workshop scheduled for December 4 and 5, at Orchid Hotels, Lekki, Lagos is coming at a period when all hands are on deck to address the challenges facing the economy and  the capital market in particular.

This year, experts, regulators and other stakeholders will gather to discuss the theme: “Technology as a tool for financial inclusion in Nigeria.”

The unprecedented impact of the coronavirus pandemic (COVID-19) has continued to force businesses to expand their possibilities and adopt new ways of performing their duties through technology.

The association in a statement said that the theme was predicated on the compelling need to strengthen the competitiveness of the Nigerian economy of which the capital market is the hub of medium and long term source of finance in the post-COVID -19 era.

Managing Director, eTranzact International Plc, Mr Olaniyi Toluwalope, is the guest speaker. Toluwalope is a highly accomplished, dynamic and result-oriented Fintech professional with solid credentials and a proven track record in formulating and implementing operational and financial strategies, identifying investment opportunities, structuring and negotiating multi-party transactions.

The workshop will also feature a panel of specialists from regulatory organisations and operators in the capital market, who will discuss and bring more perspectives to the guest speaker’s presentation. Among the panelists are Managing Director of APT Securities and Funds Ltd, Mallam Garba Kurfi and the Group Managing Director, GTI Capital Group, Mr. Abubakar Lawal.

Director-General of the Securities and Exchange Commission, Dr Lamido Yuguda, will be the special guest of honour, while the Managing Director, FMDQ Group, Mr Bola Onadele and Chief Executive Officer of the Nigerian Exchange Ltd, Mr Temi Popoola, will be guests of honour.

The workshop is supported by United Bank for Bank (UBA) Plc, FMDQ Group, Flour Mills of Nigeria Plc, Nigerian Exchange, Zenith Bank Plc, SEC, GTCO and Access Bank Plc among others.

CAMCAN is the umbrella body for journalists in the print and electronic media reporting activities in the nation’s capital market.

The annual workshop is part of our contributions to the developemnt and growth of the nation’s economy by bringing regulators, operators and company executives to discuss economic issues that affect the market in particular and the economy in general.

Nigeria to introduce capital market studies in schools

Nigeria will soon introduce capital market studies as part of its educational curriculum as part of efforts to enhance financial literacy and boost savings and investments.

Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator, said the plan to introduce capital market studies in primary, secondary and tertiary institutions has reached an advanced stage.

SEC stated that it has always collaborated with other stakeholders in the capital market in order to enhance the level and quality of financial literacy in Nigeria.

SEC noted that the ongoing 2021 World Investors Week (WIW) highlights firm commitment to financial education initiatives which enable retail investors to have the confidence to participate in financial markets on a properly informed basis.

“This is particularly important during these challenging times. “In line with the above, the SEC is poised in this 5th edition of the WIW, to sustain the milestone that has been achieved in deepening investor education and increasing financial literacy among the investors,” SEC stated.