The Nation Newspaper

Category: Equities

  • Our plans to attract big listings, investors, by NGX

    Our plans to attract big listings, investors, by NGX

    By Tofunmi Sanusi

    The Chief Executive Officer, Nigerian Exchange (NGX) Limited, Mr Temi Popoola, has laid out plans to improve the attraction of the exchange as destination for investors and issuers.

    At the first institutional client engagement held virtually, Popoola noted that following the recent demutualisation of the Exchange, it is important that it continues to function well and deliver the highest level of service delivery that its stakeholders are accustomed to.

    “It is not lost on us that we have to embody many things for our wide variety of stakeholders. As such we have begun to think about the Exchange of tomorrow and how we can continue to meet evolving needs of the market. To do this, we will take on three major matters – listings, technology and investor participation,” Popoola said.

    He outlined listing is important because it is a trade booster and without it, there is no market.

    According to him, it is impossible to disconnect policy from listing activities evidenced by the successes recorded in the eras of indigenisation, privatisation and the banking sector consolidation.

    “Our strategy will, therefore, be built around policy advocacy, whilst addressing barriers to entry such as time to market, ease of entry and benefits of listing,” Popoola said.

    He added that technology is one that cannot be over emphasised when it comes to investors attraction noting that digitisation has contributed to how people connect to The Exchange.

    “We have big plans to attract investors – retail and institutional, domestic and foreign – to our market. In terms of diversification, we understand that equities may no longer be the answer for all investors and we are focused on creating an Exchange that understands investors’appetite and is indeed the preferred destination for finding products that suit their needs” Popoola said.

  • SEC, Ministry partner on commodities trading

    SEC, Ministry partner on commodities trading

    By Tofunmi Sanusi

    The Securities and Exchange Commission in conjunction with the Federal Ministry of Mines and Steel Development is set to hold a webinar with the theme, “Financing the Solid Minerals Sector through the Capital Market and the Critical Role of Commodity Exchanges.”

    In a statement, SEC stated that the benefits of the partnership on commodity will be job creations, unlocking economic potentials of mining communities, engendering economic development among others through better access to the market, price transparency and standardization.

    ”The webinar is open to mining companies, artisanal and small-scale mining operators, federal and state government officials, regulators, industry bodies, academics, asset managers, pension fund administrators, legal and advisory service providers, stakeholders in the capital market and the solid minerals sector,” SEC stated.

  • AfDB approves $50m women finance for FCMB

    AfDB approves $50m women finance for FCMB

    By Taofik Salako, Deputy Group Business Editor

    The board of directors of African Development Bank (AfDB) has approved a loan of $50 million to for First City Monument Bank (FCMB) to channel to Nigerian enterprises and women-empowered businesses in the agribusiness, manufacturing, healthcare and renewable energy sectors.

    Thirty percent of the funds, which are intended to mitigate effects of the challenging COVID-19 environment, are earmarked for underserved women-empowered businesses.

    In addition, the bank will provide a technical assistance grant of $200,000 through its Affirmative Finance Action for Women in Africa (AFAWA) initiative supported by the Women Entrepreneurship Finance Initiative. The grant will complement the loan by enabling FCMB to provide non-financial services, including training, and to strengthen its monitoring and reporting functions.

    “The African Development Bank is pleased to support FCMB’s strategy to become a dominant player in addressing the funding needs of women-empowered and local enterprises.

    “This project will extend valuable resources to critical but underserved segments during the ongoing Covid-19 pandemic, with its adverse macroeconomic impacts,” said Stefan Nalletamby, the African Development Bank’s Director of Financial Sector Development.

    Small- and medium-sized firms account for up to 80 per cent of employment in most African countries and women-empowered businesses typically face a considerable financing gap. The Nigerian economy has been hard hit by the COVID-19 pandemic, and falling crude oil prices have had a ripple effect on the wider economy.

    AfDB noted that the project aligns with the objectives of AFAWA, which aims to improve gender inclusivity by improving access to finance for women entrepreneurs.

    According to AfDB, the project also advances the bank’s ten-year strategy and is consistent with three of its high-five strategic priorities:  industrialize africa, feed africa, and improve the quality of life for the people of Africa. It also aligns with the Nigeria Country Strategy Paper 2020-2024.

    The AfDB is an implement.

  • BOI to woo companies for listing on stock exchange

    BOI to woo companies for listing on stock exchange

    By Taofik Salako, Deputy Group Business Editor

     

    •Raises $3b capital for businesses

    •Stockbrokers honour Pitan with Honorary Fellow

    The Bank of Industry (BOI) recognises the importance of the stock market in the growth and sustainability of businesses and will encourage start-ups, micro, small and medium enterprises and other businesses under the financing support of the BOI to seek quotation at the stock exchange.

    Managing Director, Bank of Industry (BOI), Mr Olukayode Pitan said the bank would encourage companies to seek quotation on the exchange given the importance of specialised services offered by the market.

    Pitan spoke at the award ceremony for the conferment of Honourary Fellow of the Chartered Institute of Stockbrokers (CIS) on him. He emerged the third Nigerian to earn the prestigious Honorary Fellowship of the institute. Other Honourary Fellows included General Yakubu Gowon and Mr Atedo Peterside. Meanwhile, Chief Olusegun Obasanjo, General Ibrahim Babangida, Alhaji Aliko Dangote and Mr Aig Imoukhuede are to be conferred on later dates.

    Pitan, who commended the institute’s governing board for the honour, noted that he had led BOI to successfully raised about $3 billion from the international market over the last three years, including $750 million syndicated medium- term loan for the bank in 2018, working with Africa Export Import Bank (AFREXIMBank), one billion Euro syndicated loan with 24 financial institutions and investors in March, 2020, at the onset of Covid-19 lockdown and conclusion of a $1 billion syndicated loan, working with 64 financial institutions and investors in the international market.

    According to him, the BOI has a lot more to achieve for over 40 million micro industries in Nigeria.

    “We have recognized the urgent need for specialized investment banking and we shall encourage the beneficiaries of our bank loan to seek quotation on the securities exchanges. We shall offer concessionary rates to support and also seek patience capital from government to enhance the growth of our Micro, Small and Medium Scale Enterprises,” Pitan said.

    The CIS said the rationale for the conferment of Honourary Fellowship to Pitan was the bank’s pivotal roles in the growth and development of micro, small and medium scale enterprises in Nigeria.

    Besides, the Institute is anticipating listing of some of the companies that have benefited from BOI loans to list on various securities exchanges in Nigeria.

    Addressing participants at the award ceremony in Lagos, President and Chairman of Governing Council, Chartered Institute of Stockbrokers (CIS) Mr Olatunde Amolegbe explained that Honourary Fellowship is conferred only on persons who have recorded outstanding achievements with significant contributions to the growth and development of the Nigerian economy.

    “We in the Nigerian capital market community are particularly excited by the work that Mr Pitan and BOI are doing to incubate micro, small and medium scale enterprises that not only serve as  major sources of employment generation in the country but provide a clear path toward industrialization of the Nigerian economy. Suffice to say that BOI also provides a pipeline to the potential listing of these entities on the various securities markets.

    “ Our expectation is that through the efforts of Mr. Pitan and his team, more of the likes of Friesland Campina WAMCO Nigeria Plc that was incubated by the bank will get listed on the various bourses on which we stockbrokers trade. You undoubtedly have what it takes to be instrumental to the anticipated listing of more companies, including Dangote Refinery in the near future,” Amolegbe said.

    Guest Speaker and Chairman of Absa Nigeria, Mr Adedotun Sulaiman said that there had been a general consensus that efficient capital market could promote growth of any economy through sustainable low-cost distribution channel for multiple financial products and services.

    “The Bank of Industry (BOI) is a partner in progress in the actualization of an industrialised economy in Nigeria and will continue to take deliberate steps towards addressing issues around funding across all business segments,” Sulaiman said.

    The Honourable Minister, Industry, Trade and Investment, Otunba Niyi Adebayo and his predecessor, Dr Okechukwu Enelamah were among the top dignitaries at the high profile ceremony which coincided with Pitan’s birthday.

  • Tangerine targets Africa’s top spot

    Tangerine targets Africa’s top spot

    Fast growing financial technology company, Tangerine has launched its financial service products in Lagos.

    The company, at a press conference in Lagos, also announced its target to be the foremost tech-driven financial solutions provider in Nigeria, and an expansion plan to eight African countries by 2024.

    The media event had the company top executives: Livingstone Magorimbo (Head, Life Insurance, Tangerine Nigeria; Dapo Akinsanya, Head, Pensions, Tangerine Nigeria and Ibitunde Balogun, Head, Commercial, Tangerine Nigeria; reeling out its rapid success story since its acquisition of 100 per cent equity stake in Metropolitan Life Insurance Nigeria by leading private equity firm, Verod Capital Management in September, 2019.

    That move was immediately followed by a stream of strategic mergers and acquisitions, notably ARM Life through Metropolitan Life to establish Tangerine Life Insurance Limited, the 4th largest life insurer in Nigeria; acquisition of Law Union and Rock, one of the leading general insurance companies in the space, now rebranded: Tangerine General Insurance Limited; and the acquisition of Assured MFB, a microfinance bank, by Tangerine Life which transmuted to Tangerine Money.

    In the pensions space, Tangerine, through Verod, also acquired Pension Fund Administrators (PFA) – AXA Mansard Pension and a minority stake in a significant PFA by Verod, to become Tangerine Pensions.

    Aside assembling a strong, agile and experienced team that aligns with its strategic thinking, Akisanya said, the company, in line with the ongoing recapitalization in the industry, has successfully increased its statutory capital levels for life and general insurance businesses from N2 billion to N8 billion and N3 billion to N10 billion respectively.

    Sharing its plan to be first  in Africa, Magorimbo said, “Our intention over the next 3 to 4 years is to build strong businesses that are profitable and have a fair share of the larger market, in all of the segments we participate in.

    “The issue of real time claims processing is one of our target deliverables, as we continue to look for operational efficiencies to add value to our customers and distribution partners”.

    He said the company also has plans to have a presence in at least eight African countries by 2024.

     

  • Guaranty Trust Holding Company to become one-stop financial supermart

    Guaranty Trust Holding Company to become one-stop financial supermart

    By Taofik Salako, Deputy Group Business Editor

     

    Guaranty Trust Holding Company (GTCO) Plc, the newly formed holding company for Guaranty Trust Bank plans to leverage on the opportunities of its holding company structure to evolve into a one-stop financial conglomerate, offering clients services and products across the financial markets.

    At a commemorative closing gong ceremony to mark the listing of the shares of GTCO at the Nigerian Exchange (NGX) Limited and to unveil the company’s new brand identity to the investing public, GTCO said the restructuring has opened up opportunities for addition of new services and products.

    Group Chief Executive Officer, Guaranty Trust Holding Company (GTCO) Plc, Mr. Segun Agbaje said the company was very excited about the opportunities that have opened up to it with the restructuring, particularly because diversifying income base has always been a major priority.

    “As we venture into this new phase, we look forward to leveraging technology and introducing new business lines – including payments, asset management and more – that go beyond the needs of institutional or wholesale clients to improve retail clients’ access to the financial markets,” Agbaje said.

    He commended the management of the NGX for its unwavering support in listing GTCO on the Exchange.

    GTCO officially listed its shares on NGX on June 28, 2021 following the restructuring of Guaranty Trust Bank (GTB) Plc. At the time, the shares of GTB were officially delisted from the market and GTCO’s entire issued share capital of 29.43 billion ordinary shares of 50 kobo each were listed on the NGX.

    Chief Executive Officer, Nigerian Exchange (NGX) Limited, Mr. Temi Popoola, congratulated the board and management of GTCO for its successful restructuring.

    According to him, given the recent completion of demutualisation of the Exchange and the emergence of its new structure, there are many similarities between NGX and GTCO, particularly outlook on the use of technology to advance business operations; the burgeoning opportunities in the retail market; and the importance of good governance in the corporate space.

    “Today, we reiterate our commitment to being a trusted partner to GTCO and other listed companies and issuers as we continue to build a platform that allows our listed companies, investors and other stakeholders to maximise value in our market,” Popoola said.

    Also present on the trading floor of NGX to sound the gong and bring the day’s trading to a close were Mrs. Osaretin Demuren, Outgoing Chairman, GTBank Nigeria; Mr. Ibrahim Hassan, Non-Executive Director, GTBank Nigeria; Mr. Hezekiah Oyinlola, Non-Executive Director, GTBank Nigeria; Mrs. Cathy Echeozo, Former, Executive Director, GTBank Nigeria and Chairperson, NGX Regulation Limited; Mrs. Miriam Olusanya, Executive Director, GTBank Nigeria; Mr. Babajide Okuntola, Executive Director, GTBank Nigeria; Mr. Seyi Osunkeye, Non-Executive Director, NGX Limited; Mr. Kamarudeen Kareem Oladosu, Non-Executive Director, NGX Limited; Mr. Yomi Adeyemi, Non-Executive Director, NGX Limited and Mr. Jude Chiemeka, Divisional Head, Trading Business, NGX Limited.

  • AA Holdings backs Petroleum Club

    AA Holdings backs Petroleum Club

    By  Muyiwa Lucas

     

    Eggheads in the nation’s oil and gas sector will today converge in Lagos to discuss the present state of the industry and its future.

    The meeting, scheduled to hold at the Metropolitan Club is The Petroleum Club’s 2021 Annual Business Dinner being sponsored by

    AA Holdings, a proprietary investment company. The event will feature a paper presentation titled, “A discussion on the future of the Nigerian Petroleum Industry” by the guest speaker, Director-General, Department of Petroleum Resources (DPR), Engr. Sarki Auwalu.

    “As trusted business partners, we are excited to sponsor The Petroleum Club’s Annual Business Meeting as this expresses our commitment to unlocking potentials that transform societies especially across the SSA market through critical thinking.  It’s our opinion that the Oil and Gas sector will remain vital to Nigeria’s economic growth in the long term, and we aim to ensure this realisation by supporting platforms where stakeholders can engage and formulate pertinent strategies for success,” the Executive Chairman and Founder, AA Holdings, Austin Avuru said.

  • Firm to build $42.4m fertiliser blending plants

    Firm to build $42.4m fertiliser blending plants

    By Daniel Essiet      

     

     

    OCP Africa Fertilisers Nigeria Limited (OCP Africa), a phosphate-based fertiliser producer, has voted $42.4 million for the building of mega fertiliser blending plants in three locations in Nigeria namely, Sokoto, Kaduna and Ogun states.

    The Country Manager, OCP Africa Fertilisers Nigeria, Mr. Caleb Usoh, said, for instance, that the Nitrogen, Phosphorus and Potassium (NPK) blending plant in Kaduna was estimated to cost $13.4 million, with the facilities producing at an estimated capacity of 120 metric tonnes per hour.

    Earlier, the United States International Agency for Development (USAID)-funded West Africa Trade & Investment Hub (Trade Hub) had awarded a $1.4 million co-investment grant to OCP Africa Fertilisers Nigeria Limited (OCP Africa) to install modern blending equipment within its Kaduna fertiliser blending plant.

    Speaking at a Farmers’ Forum in Abuja, Usoh said the mega fertiliser blending plants will contribute additional 500, 000 metric tonnes of NPK fertiliser to the national production capacity.

    He said the average yearly consumption of NPK fertiliser blends in Nigeria between 2017 and 2019 (since the inception of the Presidential Fertiliser Initiative) was 685,000 metric tonnes, but that consumption will reach 1,000,000 metric tonnes this year.

    “Nigeria with arable farmland of approximately 34 million hectares has the capacity to consume 5,000,000 metric tonnes of NPK fertiliser blends annually even at a modest application rate of 150kg per hectare,” Usoh said.

    He reiterated that OCP Nigeria was partnering the Federal Government to establish a $1.3 billion Basic Chemicals Platform that will produce Ammonia, Phosphoric Acid, Sulphuric Acid and various NPK and Diammonium Phosphate (DAP) fertilisers using Nigeria’s gas reserves.

    The blending equipment will help bridge the gap where there is a paucity of specialised fertilisers to grow crops on a large scale and support food security.

    The planned facility and equipment will produce various fertiliser blends customised to the needs of rice, maize, soybean, cassava, tomato, and other staple crops grown in Nigeria.

    The specialty blends of fertilisers have the capacity to increase farmers’ yields by 50 to 85 per cent per hectare, depending on the crop.

    With the capacity to produce 120 tph of these blends and store up to 10 000 tph, OCP Africa expects at least 75, 000 of targeted smallholder farmers within the catchment area of the plant to benefit from the blending plant’s operations and associated agronomy support services.

  • Wema Bank launches new customer reward scheme

    Wema Bank launches new customer reward scheme

    Wema Bank Plc has launched a reward scheme under which customers will win prizes over the next nine months.

    Beginning from  July 1, the bank will be rewarding its customers with cash prizes to appreciate them for their unwavering loyalty and patronage.

    The reward scheme, known as ‘5 for 5’, will run for nine months and will see some customers move up the social status ladder as millionaires emerge in the promo draws that will cover many customers in different locations in the country.

    In the promo, N31.5 million would be given away to customers in nine months by the bank marking its 76th anniversary this year.

    There is a monthly grand prize of N1 million for a customer, N100,000 for 20 customers and N10,000 consolation prizes for 50 customers monthly. These give a total of 71 people getting rewarded each month.

    Retail Divisional Head, Wema Bank Plc, Dotun Ifebogun, said the promo is open to new and old customers.

    “All they need to do to win is fund their accounts with at least N5,000 and carry out a minimum of five transactions on either ALAT, USSD or with their cards, monthly and maintain a minimum account balance of N10,000 at the end of the month,” Ifebogun said.

    He noted that the unique thing about the ‘5 for 5’ promo is the equal chance it gives everyone to participate.

    According to him, the promo is another way of putting a smile on the faces of its customers and changing their lives for good.

    “It is open to new and existing customers and those who reactivate their accounts. To meet those needs, banks need to make customer experience the starting point for process design hence our desire to reward as they transact.

    “’5 for 5’ is unique because our customers nationwide have the chance to become millionaires every month after electronic draws. We are known for going the extra mile to give our customers the best, and this is just one of our numerous ways of appreciating them,” Ifebogun said.

  • SEC introduces uniform standards for depositories

    SEC introduces uniform standards for depositories

    By Taofik Salako, Deputy Business Editor

    Securities and Exchange Commission (SEC) has issued an interoperability and financial markets infrastructure link framework among central securities depositories to enhance the efficiency of trading and settlement functions as well as align the market with international best practices.

    Interoperability means the technical and legal compatibility that enables a system or mechanism to be used in conjunction with other systems or mechanisms.

    According to the SEC, the Nigerian capital market has witnessed remarkable growth in the last few years in terms of size, market participants and tradable instruments. This has impacted the market structure in terms of composition and interconnectedness. In the secondary market particularly, there are currently multiple trading platforms and financial market infrastructures (FMIs) which provide comparative services in depository, trading, clearing and settlement activities.

    “Consequently, Interoperability arrangement has become necessary in order to enhance the efficiency of trading and settlement functions as well as align the market with international best practices.

    “According to the Committee on Payments & Market Infrastructures and International Organization of Securities Commissions (CPMI-IOSCO) Principles on FMIs, FMI link is a set of contractual and operational arrangements between two or more FMIs that connect the FMIs directly or through an intermediary. The Interoperability arrangement will potentially liberalize trading and settlement activities, enhance efficient deployment of capital as well as cost effectiveness in the market.

    In a statement, SEC stated that it is in this regard and the need to ensure the efficiency of the market and the protection of investors that the framework is being issued, adding that in the Interoperability arrangement, as recommended by the CPMI-IOSCO Principles for FMIs, relevant provisions have been made for identification, monitoring and management of interlink risks by the respective CSDs with the overall objective of reduction in systemic risks.

    “This framework is being issued in line with the mandate of the Commission to regulate the capital market with the objective of ensuring protection of investors, maintaining fair and efficient market as well as reduction of potential systemic risks in trading, clearing and settlement ecosystem,” SEC stated.

    In this regard, the Commission stated that all securities exchanges and central securities depositories (csds) are required to comply with the following: take necessary steps to put in place requisite infrastructure and systems for implementation of the framework, including any amendments to the relevant rules and regulations;  bring to the attention of their members and participants the provisions of this framework as well as publish the same on their websites;  as well as communicate to the Commission, the status of implementation of the provisions of this framework within three months of the date of issuance of the framework;

    As part of the interoperability requirements CSDs shall:  establish a peer-to-peer link to facilitate Interoperability with each other and put in place the required infrastructure, systems, processes and risk management for the effective operation of the interoperable arrangement and not subject each other to normal participants (membership) rules; allow for fair and open access to their services based on reasonable risk related access requirements; and have adequate reconciliation procedures to ensure that their respective records are accurate and current; The Commission said the interoperable arrangement shall allow investors and Participants settle fixed income securities on a beneficial ownership basis through any CSD in which they maintain CSD account(s) irrespective of the Issuer CSD in which the securities are domiciled and/or the investor CSD account of the counterparty;  Investors shall have the option to maintain any CSD account(s) in a single CSD of their choice or maintain any CSD account(s) in multiple CSDs of their choice or consolidate any existing CSD account(s) into a single CSD of their choice and execute a trade across multiple Exchanges under the interoperable arrangement provided that the fixed income securities are listed on the respective multiple Exchanges.

    Consolidation of any CSD account(s) shall be subject to relevant KYC due diligence requirements and on the basis of beneficial owner authorization;

    Also, participants shall have the choice to maintain any CSD account(s)/membership in a single CSD of their choice or maintain any CSD account(s)/membership in multiple CSDs of their choice or consolidate any existing CSD account(s)/membership on the basis of beneficial ownership into a single CSD of their choice and execute a trade across multiple Exchanges under the interoperable arrangement provided that the fixed income securities are listed on the respective multiple Exchanges; while investors and Participants shall under the interoperable arrangement settle their trades successfully irrespective of the Securities Exchange where the trade is executed provided that the fixed income securities are listed on the respective multiple Exchanges.

    The framework further stipulates that risk management requirements between CSDs shall be based on a mutually agreed arrangement and shall take into consideration the relevant risks issues; All complaints and disputes shall be handled in line with the rules and regulations of the Commission on complaint management and all new charges associated with the interoperable arrangement against Participants shall be subject to approval of the Commission.