Category: Equities

By Taofik Salako, Deputy Business Editor

Sterling Bank has reaffirmed its commitment to advancing diversity, equity, and inclusion in the workplace.

Chief Executive Officer, Sterling Bank Plc, Abubakar Suleiman said by reaffirming its commitment to creating an inclusive workplace that fosters a sense of belonging, the bank will further improve gender, ethnicity, persons with disabilities, and generational diversity by strengthening processes and programmes to provide equal possible outcomes for every individual in its workplace.

“We will continue to prioritize our diversity, equity, and inclusion agenda by creating equal working conditions, opportunities for promotion, and equal pay for work of equal value for women and men at Sterling. I’m proud of our achievements so far, but we are relentless.

“We remain committed to attracting, hiring, and developing diverse talents at all levels of our organization as these are relevant factors that enable us to achieve our overall objectives. Gender equity across all levels is a key component of our diversity strategy,” Suleiman said.

According to him, as the bank continues to deliver the best services to its customers and better experiences for its employees, it will continually address systemic barriers embedded within policies, practices, and services that inadvertently exclude individuals in any form.

“I am certain that we are on the path to creating important and long-lasting change in our workplace, communities, and country at large,” Suleiman said.

To boost diversity, equity, and inclusion, Sterling Bank initiated programmes that include the Bloom Network, Sterling Women Development Programme (SWDP), Women in Banking, Girls in Tech, Women Techsters, and Sterling Embrace. Through these programmes, efforts were made to eliminate the under-representation of women in all areas, especially in tech roles and leadership, and create expressions for persons with disabilities.

“Our affirmative action on diversity, equity, and inclusion is another example of Sterling Bank putting its values into action,” said Temi Dalley, the Bank’s Chief Human Resources Officer. “Our purpose is enriching lives, making it mandatory for us to build a sustainable, diversified, engaged, and equipped workforce that can deliver this mission.”

According to Temi, Sterling Bank has put in place the appropriate infrastructure for eliminating workplace discrimination, bullying and harassment thereby fast-tracking gender equity in the workplace.

They include appropriate framework conditions to promote work-life balance, responsive whistle-blowing channels, and Diversity and Inclusion Key Performance Indicators (KPIs) for Line Managers.

Diversity, equity, and inclusion ensure fair treatment and opportunity for all. These values aim to eradicate prejudice and discrimination based on individual or group protected characteristics while offering a broader talent pool, robust perspectives, and sustainable growth.

By Taofik Salako, Deputy Business Editor

Nigerian equities reopened yesterday with a positive sentiment but selloffs within large-cap stocks moderated the overall performance.

Benchmark indices at the Nigerian Exchange (NGX) Limited indicated average marginal gain of 0.02 per cent, equivalent to net capital gain of N4 billion.

The All Share Index (ASI)- the common value-based index that tracks all share prices at the Exchange, inched up from its opening index of 38,212.01 points  to close at 38,220.01 points. Aggregate market capitalisation rose by N4 billion from N19.919 trillion to close at N19.923 trillion.

With 27 gainers to 16 losers, the market traded mostly on the upside, although losses by large-cap stocks mitigated the overall position.

Cutix recorded the highest gain, in percentage terms, of 10 per cent to close at N3.30 per share. NCR Nigeria followed with a gain 9.69 per cent to close at N2.49. Regency Alliance Insurance went up by 9.52 per cent to close at 46 kobo per share. UACN Property Development Company rose by 9.30 per cent to close at 94 kobo. Wapic Insurance gained 9.26 per cent to close at 59 kobo per share.

On the negative side, Red Star Express led the losers’ chart by 9.81 per cent to close at N3.31 per share. Associated Bus Company followed with a decline of 8.11 per cent to close at 34 kobo. NPF Microfinance Bank lost 6.98 per cent to close at N1.60 per share. Presco lost 6.04 per cent to close at N70 while Chams Plc shed 4.76 per cent to close at 20 kobo per share.

Turnover rose by 35.1 per cent to 282.625 million shares valued at N1.869 billion in 4,788 deals. Fidelity Bank topped the activity chart with 28.094 million shares valued at N64.532 million. Wema Bank followed with 19.638 million shares worth N14.419 million. Universal Insurance traded 18.025 million shares valued at N3.605 million. FCMB Group traded 14.823 million shares valued at N45.859 million while Sovereign Trust Insurance transacted 14.409 million shares worth N3.894 million.

“In the coming trading session, we expect to see profit-taking activities dominating the market in the absence of any positive catalyst,” Afrinvest Securities.

By Taofik Salako, Deputy Business Editor

Two new core investors have acquired major equity stakes of about 44.3 per cent in Mutual Benefits Assurance Plc in primary deals valued at about N4.8 billion.

Mutual Benefits Assurance had through a private placement sold 8.889 billion ordinary shares of 50 kobo each at 54 kobo per share to Charles Enterprise LL.C and Arubiewe Farms Limited.

The insurance company formally concluded the transactions yesterday with the listing of the 8.889 billion ordinary shares allocated to the two firms on the Nigerian Exchange (NGX) Limited.

With the listing of the additional 8.889 billion ordinary shares, the total issued and fully paid up shares of Mutual Benefits Assurance Plc increased from 11.172 billion to 20.062 billion ordinary shares of 50 kobo each.

By Taofik Salako, Deputy Business Editor

Group Head, Emerging Businesses, Access Bank Plc, Mrs. Ayodele Olojede, has said that the bank remains committed to the growth and development of the Micro Small and Medium Scale Enterprises (MSMEs) sub-sector of the economy.

She also urged small enterprises to take advantage of the bank’s resource channels to get information and improve on their skills adding that the institution is committed to providing quality capacity building services to emerging MSMEs.

Speaking on the sidelines of the 2021 National MSME Discourse, themed: “Little Beginnings: Huge Impact”, she pointed out that supporting the MSMEs growth and development had been a core proposition for the bank.

“We are very willing to partner with our very committed entities who seek to also support the growth and development of MSMEs,” Olojede said.

Olojede, who earlier participated in a panel discussion on “Facilitating and Growing a Sustainable MSME Space in Nigeria”, said despite available financing opportunities for small businesses, access remained a problem.

According to her, financing requires preparation on the part MSMEs as well as commitment of the financial institutions.

She said there’s currently a disconnect whereby a lot of the financial institutions do not support small businesses in a committed manner, “because they don’t understand the market well enough and they do not know how to de-risk it. And so, they are always shying away from financing that segment”.

She however, stressed that the bank had continuously invested in understanding the MSMEs segment.

“We have partnered with organizations both local and international to be able to build our competences through technical assistance programmes that is helping us daily to de-risk the segment and that gives us confidence daily to be able to expand our footprint within that segment,” Olojede said.

Commenting on the need for MSMEs to have the required competences to run a successful business venture,  Olojede said: “Anybody can have money. There are so many people that have money, but their businesses still fail.

“And the reason their businesses fail is the lack of commitment or lack of understanding on the part of the business owner.

“So you can be a manufacturer who understands or be very skillful on how to produce certain items but not have the requisite management, financial skills to sail and these are very important and critical elements that could help the business succeed beyond financing.

“Some things are attitudinal and not financing: if I give somebody money and the person does not have the positive mindset, once there’s a little bit of challenge, because there will be challenges, that business cannot be successful”.

She stressed that there are several problems constraining the performances of small businesses of which finance is just one of them.

She added that lack of business management skills as well as favourable operating environment in the country especially the issue of multiple taxation remained a bane to the growth of the sub-sector.

Olojede, however, expressed optimism that with current interventions and interest by the government and private sector towards SMEs, the “future is bright because we are evolving, and we will get there.”

By Taofik Salako, Deputy Business Editor

Sterling Bank Plc and StearsData have released an in-depth report for the agriculture sector in Nigeria.

The report entitled: Agriculture Industry Report 2021 provides up-to-date view of the challenges and opportunities in Nigeria’s agriculture sector in a COVID-19 era.

The four-part report critically examines the country’s agriculture value chain state, state of affairs post-COVID-19, the climate change challenge and opportunities for innovations and investments.

Group Head, Agric Finance and Solid Mineral, Sterling Bank Plc, Bukola Awosanya said the industry report empowers players in the agriculture sector with a navigation roadmap.

According to her, the report also affirms Sterling Bank’s commitment to de-risking and making the domestic agriculture value chain more viable for commercial lending.

“The goal of the report is to help investors and operators understand the challenges facing the sector, consider recommendations by experts, and become aware of relevant opportunities, both now and in the future. It would empower them to support policymakers to craft policies that would create the enabling environment that the sector needs to thrive,” Awosanya said.

She outlined that the industry report is a continuum of the bank’s annual Agriculture Summit Africa (ASA) held for three consecutive years since 2018 noting that it supports the bank’s goal of creating a pathway for lending to farmers and other value chain players without intervention funds, making it possible for the federal government to free up funds allocated to subsidising the sector to other industries.

She said the first part of the report provided an overview of the agricultural value chain and analysed some of the conditions that led to the sector’s underdeveloped state.

While the second part reviewed the impact of the COVID-19 pandemic on the country’s agriculture sector, response to the pandemic, and lessons learnt from other countries on the need to build a more resilient agricultural sector.

The third part explored how climate change impacts the sector, highlighting ways stakeholders can overcome the challenge. And the fourth part of the report explored opportunities for innovation and investments and how recent innovation is transforming the industry.

Chief Economist, Stears, Michael Famoroti said the Agriculture Industry Report 2021 provides insights and actionable recommendations for future-proofing the sector from severe disruptions such as the pandemic.

He added that the recommendations are essential for all stakeholders and a valuable resource for building a resilient and commercially viable industry.

In the main, the report  powered by Sterling Bank and StearsData shows that the agricultural sector is operating below its potential, “even by its standards.” It identified the inefficiencies that slowed and crippled the growth of the sector.

The industry report indicated that continued reliance on trade restrictions as a primary tool for stimulating local production would lead to greater market instability. It will undermine supply and expose consumers to significant price fluctuations, making food security elusive as population growth puts more pressure on food resources.

COVID-19 and its attendant shock, according to the report, makes an agricultural sector that is more resilient to shocks an imperative. More importantly, the effects of climate change which continue to pose a real long-term threat.

It, therefore, advocated improved production methods that are more efficient and sustainable, investing in large scale storage so that national reserves are sufficient in times of crisis or implementing a public sector framework such that issues that concern the sector can be assessed by the appropriate bodies and a coordinated response is pushed out in a timely manner.

The Agriculture Industry Report 2021 also advised policymakers to protect the blossoming innovation ecosystem in the sector with consistent policies and collaborate to foster growth. It suggested a value chain approach so critical links are not ignored when designing solutions for the sector.

It said, “As Nigeria inches out of another recession, there is no better time to take steps that support its resolute claims that the performance of its agriculture sector is key to its long-term growth.”

By Taofik Salako, Deputy Business Editor

The Board of Skyway Aviation Handling Company (SAHCO) Plc yesterday assured that the ground handling firm has been positioned for sustained growth and improved returns to shareholders.

At the Annual General Meeting (AGM) yesterday in Lagos,shareholders approved distribution of N223.34 million as cash dividends, representing a dividend per share of 16.5 kobo.

Chairman, SAHCO, Dr Taiwo Afolabi assured shareholders of enhanced returns on their investments in the years ahead.

He said the company would continue with its drive of becoming one of the leading ground handling firms in Africa in terms of market share, client base, revenue and profitability.

According to him, with a next-level mentality firmly entrenched by the board, the management had been mandated to pursue and deliver a better business results in 2021 and the years ahead.

He outlined that the keys areas that would receive greater attention from the management in order to achieve the target include new business drive, customer relationship management, brand equity improvement and effective pricing of services.

He added that the company would devote sufficient resources to new equipment acquisition, infrastructural development and human capital development to ensure profitability.

Afolabi stressed that shareholders remain a key interest group as the owners of the business.

He, however, appreciated the shareholders for investing in the company and for the continuous support over the time.

“Let me further reiterate and assure that the company will always make decisions in the overall best interest of all shareholders,” Afolabi said.

On the financial performance of the company, Mr Basil Agboarumi, its Managing Director, said the company recorded a decrease of nine per cent in its revenue from N7.655 billion in 2019 to N6.981 billion in 2020.

According to him, SAHCO, however, made a profit after tax of N482.377 million in 2020 compared with N261.943 million posted in 2019.

He said the feat was achieved in spite of the challenges caused by the COVID-19 pandemic.

“The boost in our performance is as a result of the commitment of the workforce, and the smart marketing strategies,” Agboarumi said.

He said the company in its quest to provide top-notch services, acquired environmental eco-friendly electronic powered baggage tow tractors and fork lifts.

According to him, the equipment with zero emission are fitted with the latest technological innovation in the aviation industry.

By Taofik Salako, Deputy Business Editor

Nigerian equities reopened yesterday on a bearish note as profit-taking transactions and portfolio rebalancing shaved off N54 billion from market capitalisation.

Benchmark indices at the Nigerian Exchange (NGX) Limited showed average decline of 0.27 per cent, equivalent to net capital depreciation of N54 billion.

The All Share Index (ASI)-the value-based common index that tracks prices of all quoted equities at the NGX, dropped by 103.61 points to close at 38,545.30 points as against its opening index of 38,648.91 points.

Aggregate market value of all quoted equities also dropped correspondingly from its opening value of N20.143 trillion to close N20.089 trillion, a drop of N54 billion.

With 18 gainers to 17 losers, the negative overall market position was largely due to losses suffered by large and mid-cap stocks.

Meyer Plc recorded the highest price gain of 8.77 per cent to close at 62 kobo per share. Champion Breweries followed with a gain 6.06 per cent to close at N2.10. Julius Berger Nigeria went up by 4.71 per cent to close at N20.00. Regency Alliance Insurance rose by four per cent to close at 52 kobo while Ikeja Hotel gained 3.19 per cent to close at 97 kobo.

On the other hand, Fidson Healthcare led the losers’ chart by 9.80 per cent to close at N4.60. Lasaco Assurance followed with a decline of 9.33 per cent to close at N1.36. FTN Cocoa Processors lost 9.09 per cent to close at 30 kobo. Mutual Benefits Assurance lost 8.89 per cent to close at 41 kobo while Cornerstone Insurance shed 5.17 per cent to close at 55 kobo per share.

There was also a marginal decline in momentum of activities as turnover decreased by 5.18 per cent to 209.213 million shares valued at N1.763 billion in 3,390 deals. Access Bank topped the activity chart with 22.719 million shares valued at N193.989 million. AXA Mansard Insurance followed with 16.701 million shares worth N15.046 million. Zenith Bank traded 16.145 million shares valued at N384.584 million. Mutual Benefits Assurance traded 14.685 million shares valued at N6.036 million while Chams transacted 13.478 million shares worth N2.703 million.

“In the next trading session, we expect the domestic bourse to extend bearish performance in the absence of any positive catalyst,” Afrinvest Securities stated.

By Taofik Salako, Deputy Business Editor

Dangote Cement Plc has raised N50 billion in new debt through issuance of a fixed-rate bond.

The company yesterday announced successful issuance of N50 billion Series 1 Fixed Rate Senior Unsecured Bonds.

According to the report, despite market headwinds, the bond issuance was well received and recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies and high net-worth investors. The proceeds of the bond issuance will be deployed for the company’s expansion projects, short-term debt refinancing and working capital requirements.

The bonds were issued on May 26, 2021 at coupon rates of 11.25 per cent, 12.50 per cent and 13.50 per cent for the three, five and seven-year tranches respectively.

Aside from this first issuance of a traditional bond under the new multi-instruments programme, Dangote Cement has registered a programme enabling it to consider different types of fixed income instruments to cater for different type of investors.

Chief Executive Officer, Dangote Cement Plc, Michel Puchercos said the ability to issue green bonds and Sukuk will enable the company leverage the depth and breadth of the Nigerian market.

“This bond issuance allows us move a step further in achieving our expansion objectives and will be deployed to projects instrumental in supporting our export strategy while improving our cost competitiveness. We thank the investor community for their continued support in the management of Dangote Cement and their successful participation in the bond issuance,” Puchercos said.

The Bonds which is expected to be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange, according the Company has Absa Capital Markets Nigeria acting as Lead Issuing House for the Series 1 Bonds.

It disclosed that Stanbic IBTC Capital, Standard Chartered Capital & Advisory Nigeria Limited, United Capital Plc, FBN Quest Merchant Bank, FCMB Capital Markets, Coronation Merchant Bank, Ecobank Development Corporation Nigeria, Futureview Financial Services, Meristem Capital Limited, Rand Merchant Bank, Quantum Zenith Capital and Vetiva Capital Management are the Joint Issuing Houses.

Dangote Cement Plc is Sub-Saharan Africa’s largest cement producer with an installed capacity of 48.6Mta capacity across 10 African countries. It operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales and distribution of cement. We have a production capacity of 32.3Mta in our home market, Nigeria.

Its Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.3Mta of capacity across four lines; our Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta, and our Gboko plant in Benue state has 4Mta.