Category: Investors

ThIS year could be critical for Nigeria, Africa’s largest economy, as it navigates through COVID-19 and inflation-infested waters.

In its report entitled: “Nigeria – A New Year but Same Old Story?”, Senior Research Analyst at FXTM, Lukman Otunuga, outlined external and internal factors that will influence Nigerian economic growth in 2022.

According to the report,  inflation remains one of the primary themes that will influence global sentiment this year. Untamed inflation has prompted central banks to join the global tightening bandwagon. The Federal Reserve has indicated they could raise interest rates three times in 2022, the Bank of England surprised markets with a rate hike last year, the South African Reserve Bank also raised interest rates.

The report noted that with coronavirus cases soaring across the globe, some central banks are likely to think twice before raising rates. Central banks like the European Central Bank, People’s Bank of China, and Bank of Japan among many others fall into this category.

“We may see a world divided by various spheres of monetary influence as one camp embraces hawks and the other doves.

“This places Nigeria in a tricky position. Given how the Nigerian general election will be held in February 2023, the decline in inflationary pressures may be halted by political spending this year. If inflationary pressures make a return in 2022, the Central Bank of Nigeria may be forced to tighten monetary policy. However, cooling inflation will buy the central bank more time to leave monetary policy unchanged in an effort to support the economic recovery.

“Global economic conditions remain strained by the coronavirus menace while soaring inflation across the world has prompted major central banks to tighten monetary policy. In 2021, Nigeria reported almost 250,000 reported cases, even as 16 million vaccinations were administered. Given how disruptions created by the pandemic clouded the economy’s growth outlook, heavyweights like World Bank and IMF projected GDP to expand between 1.8 per cent to 2.6 per cent in 2021.

“On the bright side, Nigeria enjoyed easing inflationary pressures last year unlike other major economies like the United States, United Kingdom, and South Africa among many others. This placed the Central Bank of Nigeria in a comfortable position to leave monetary policy unchanged, at a critical time where the economy embarked on a fragile road to economic recovery. The sharp appreciation in oil prices also provided Nigeria a tailwind, bolstering export earnings and government revenues – further lifting sentiment towards the economy.

“Essentially, Nigeria’s outlook remains influenced by the same old themes. If oil prices remain stable, foreign exchange currency reserves and governments revenues will likely rise. High oil prices may support the CBN’s effort to defend the local currency against external and domestic risks. Alternatively, if oil prices weaken, this could hit reserves, weaken the Naira and ultimately weigh on economic growth. When considering how the Fed remains on a path to monetary policy normalization, the narrowing interest rate differential between both currencies may hit the Naira further,” the report stated.

It was revealed recently that the United States (U.S.) economy created 199,000 jobs, which were far below the 400,000 market expectations. Although the NFP numbers were disappointing, the U.S. unemployment rate fell to 3.9 per cent from 4.2 per cent in November while hourly earnings jumped 4.7 per cent versus the expected 4.2 per cent. These bright spots may strengthen bets over the Federal Reserve raising interest rates sooner than expected. In fact, traders are currently pricing in an 82 per cent probability of at least one Fed rate hike by mid-March 2022. Should the CBN take action, this may be in March or May.

After ending 2021 roughly 35 per cent higher, Brent has entered the new year on a steady note. The commodity remains supported by OPEC’s optimistic outlook for oil demand and the global economic recovery. Prices have also found short-term support from geopolitical developments and production shortages. Nigeria could have one less problem to think about if oil prices remain at elevated levels throughout 2022. However, the persistent uncertainty around Covid-19 and the threat of fresh variants trigger fresh restrictions could cap oil’s upside gains.

The world pinned hopes on stability and normality returning in 2021. Instead, it was another uncertain year defined by soaring inflation and COVID-19 variants. With rising inflation a cause for concerns and central banks tightening policy, this could be another wild year for global markets – especially if Covid-19 cases continue to rise. One economy to keep an eye on is China.The economy is expected to expand eight per cent in 2021 according to the world bank. Robust growth in China may translate to a jump in demand for oil markets which will be a welcome development for Nigeria.

 

BUA Foods Plc plans to leverage opportunities provided by its listing on the Nigerian Exchange (NGX) to grow a viable food production and exporting business that would improve national food sufficiency and help in generating much-needed foreign exchange (forex).

Speaking yesterday at a facts behind the listing and closing gong ceremony held virtually at the NGX,  Chairman, BUA Group Plc, Abdul Samad Rabiu, said the BUA Foods would tap into opportunities in the capital market to grow its business.

Rabiu, who was represented by Group Executive Director, BUA Foods Plc, Alhaji Kabiru Rabiu, said with the listing of the food business on the NGX, there is high hope for Nigeria in terms of building capacity for food sufficiency.

He noted that the population of Nigeria is over 200 million and the national food production capacity is still not enough to meet current demands, leaving room for significant expansion for local food production companies.

“However, with the listing of our food business on the NGX, there is high hope for Nigeria in terms of building capacity for food sufficiency. We are, therefore, positioning our brand to take advantage of export opportunities through our strategically located plants from which foreign exchange can be generated both for the company and economy.

“As a listed company, BUA Group has benefitted first-hand from NGX’s efforts to chart a path for the sustainable development of the Nigerian economy. It has, therefore, been exciting for BUA Foods to go through a similar journey and we are confident that by leveraging the collaborative approach prevalent in the market, the entire group of companies will be equipped to increasingly deliver value to its shareholders  We certainly look forward to benefitting from the new opportunities that have opened up to as on the platform of the Exchange,” Rabiu said.

Chief Executive Officer, Nigerian Exchange (NGX) , Mr. Temi Popoola, commended BUA Foods for taking the bold step to join its subsidiary company, BUA Cement, as a publicly-listed company on the Exchange.

According to him, the listing of BUA Foods on the Exchange reaffirmed the confidence that leading Nigerian corporates have in NGX as the partner of choice for raising capital and enabling sustainable growth and development.

He commended the efforts made by the management of BUA Foods towards this listing and the roles played by all the professional parties to this transaction including; Stanbic IBTC Capital Limited, Rand Merchant Bank Nigeria Limited, UCML Capital Limited, APT Securities Limited and CardinalStone Securities Limited.

“At NGX, this milestone transaction is in line with our strategic objectives to improve listings and enhance investors’ participation in our market. As a multi-asset Exchange, NGX is strategically positioned to be the preferred listing and investment destination connecting Nigeria, Africa and the world.

“I must, therefore, encourage capital market players and enthusiasts at home and abroad to pay closer attention to the plethora of opportunities available in our market both to list securities and make the most of their investments,” Popoola said

It is noteworthy that the listing of BUA Foods’ shares has added N720 billion to the market capitalisation of NGX, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation. Following the admission of BUA Foods’ shares on the main board of the Exchange on Wednesday, January 05 2022, the company has experienced an upward trend in share price, market capitalisation along with trading.

 

S&P Global Ratings has projected that Sukuk issuances may be between $145 billion and $150 billion in 2022; slightly optimistic yew than the previous year

According to the global rating agency; total Sukuk issuance stabilised at $147.4 billion last year compared with $148.4 billion in 2020 but foreign currency denominated issuance increased 10 per cent.

“We forecast total issuance of about $145 billion-$150 billion in 2022” S & P Global Ratings stated.

The report noted that Sukuk issuance volumes would be flat at best in 2022 amid lower and more expensive global and regional liquidity, increased complexity, and reduced financing needs for some core Islamic finance countries.

“On a positive note, we see opportunities created by the energy transition in core Islamic finance countries, higher environmental, social and governance (ESG) awareness from regional issuers, and stronger automation using fintech solutions as likely to support future Sukuk market growth” S & P Global Ratings stated.

The board of the International Organisation of Securities Commissions (IOSCO) yesterday published a set of good practices related to the use of global supervisory colleges in securities markets, to increase cooperation and information-sharing among securities regulators.

IOSCO is the global body of securities regulators and it is recognised as the global standard setter for securities regulation. Its members regulates more than 95 per cent of the world’s securities markets in some 130 jurisdictions.

Nigeria is a member of the board of IOSCO and also a member of its highly influential Growth and Emerging Markets (GEM) Committee; the largest committee within IOSCO, representing more than 75 per cent of the IOSCO membership, including 10 of the G20 members.

The report: Lessons Learned from the Use of Global Supervisory Colleges, provides a framework for securities regulators seeking to create new global supervisory colleges for sectors of financial markets where they are not currently used, which could strengthen cooperation between regulatory authorities and further assist regulators in addressing the adverse effects of market fragmentation.

The report is based on previous IOSCO work on market fragmentation and builds upon the experiences of IOSCO members with supervisory colleges for such entities as credit rating agencies and central counterparties (CCPs).

In its earlier reports, IOSCO identified supervisory colleges as one of the collaborative mechanisms that securities regulators could use to obtain a more complete picture of an internationally active market participant. IOSCO members participating in supervisory colleges said they gained access to higher quality information, enabling them to better identify and assess risks stemming from the operations of a supervised entity.

The 14 good practices cover matters such as general purpose, membership, governance, multilateral confidentiality arrangements and the cross-border operations of supervisory colleges. Based on member feedback, the good practices also encourage the use of supervisory colleges to share information and solutions in times of crises.

The report called for the use of ”core-extended” structures where circumstances allow. This arrangement would allow all relevant authorities – including those from emerging jurisdictions – to participate in information exchange about a supervised entity appropriately.

Also, the report considered sectors of securities markets where the use of supervisory colleges could be expanded; building on considerations such as interconnectedness where market participants may be doing business across multiple jurisdictions and conduct activities which could have spill-over effects on other jurisdictions.

The report also considered new emerging areas where supervisory knowledge may not yet have been fully developed. Based on these criteria, some IOSCO members have suggested there may be merit in making use of supervisory colleges for market intermediaries, financial benchmarks administrators, crypto-asset platforms and asset management.

Nigerian’s apex capital market regulator, Securities and Exchange Commission (SEC) has described the operations of FinAfrica Investment Limited and Chimark Group as illegal, warning the investing public against dealing with the two firms.

In a circular, SEC stated that its attention had been drawn to the activities of “an illegal operator FinAfrica Investment Limited”, which “claimed to be an investment company that engages in business development in commercial sectors of the economy and uses the funds in entities under Chimark Group”.

According to the Commission, neither FinAfrica Investment Limited nor Chimark Group is registered by the Commission and the investment schemes being promoted by these entities are also not authorized by the SEC.

“In view of the above, the general public is hereby warned that any person dealing with the within named company in any capital market related business is doing so at his or her own risk,” SEC stated.

The latest circular came on the heels of declaration of another firm, Poyoyo Investment (Pilvest) Nigeria Limited, as a Ponzi scheme, a front to defraud unsuspecting investors.

In a circular, SEC had noted that electronic and WhatsApp messages were being circulated to investors on behalf of Pilvest.

According to the Commission, the electronic message indicates a proposal to investors to invest in guaranteed investment plans of either a minimum capital of N100,000 being invested for a period of one month with a returns on investment (ROI) yield of 20 per cent or a minimum capital of N300,000 being invested for a period of three months with a monthly ROI yield of 23 per cent monthly “and total ROI yield is 69 per cent” or a minimum capital of N500,000 being invested for a period of six months with “a ROI yield of 25 per cent monthly and total ROI yield is 150 per cent” or a minimum capital of N1 million being invested for a period of one year with a “ROI  yield of 30 per cent monthly and total ROI yield is 360 per cent”.

“Besides the obvious errors in the returns calculations above, preliminary investigation has revealed that Poyoyo Investment (PILVEST) Nigeria Limited is purely a Ponzi scheme as it is a non-sustainable business model that involves the collection of money from unsuspecting investors with a promise of high return without any underlying assets.

“The Commission hereby notifies the investing public that Poyoyo Investment (PILVEST) Nigeria Limited have no tangible business model; hence it is a PONZI SCHEME where returns are paid from other people’s invested sum. Also, its operation is not registered by the Commission.

“In view of the above, the general public is hereby warned that any person dealing with the within named Company in any capital market related business is doing so at his or her own risk,” SEC stated.

 

The Federal Government at the weekend assured that it would step up its collaboration with the Nigerian Exchange (NGX) with a view to developing the climate financing environment in Nigeria.

Minister of State for Environment, Chief Sharon Ikeazor, who performed the digital closing gong ceremony to mark the end of trading for 2021, said the government would work with the NGX to build a framework that will help issuers navigate climate disclosure and ultimately improve the climate data available to the investment and finance community.

She said the NGX has played an exemplary role in Nigeria’s commitment to mitigating the effects of climate change.

She pointed out that climate change is a serious and long-term threat and Nigeria has continued to show commitment to the goals of the Paris Agreement on Climate Change with its revision of the Nationally Determined Contributions (NDCs) pre-COP 26.

She added that the recent assent of the climate change framework by President Buhari which provides for the mainstreaming of climate changes in the country and the establishment of Council on Climate Change to be chaired the President were evidence of Nigeria’s commitment to climate change.

“With the step taken immediately after COP26, Nigeria has further demonstrated its commitment towards the Paris Agreement on Climate Change. As part of measures to comply with the National Determined Contributions (NDC) in emissions reduction to climate change in Nigeria, the Federal Government launched the Nigeria Deep Decarbonization Project.

“I hope there would be a continuous collaboration between Nigerian Exchange Limited and the Federal Ministry of Environment to build a framework that will help issuers navigate climate disclosure, associated engagement with their shareholders, and ultimately improve the climate data available to the investment and finance community. Partnership with NGX will provide investors with important new tools to enable capital reallocation,” Ikeazor said.

Chief Executive Officer, Nigerian Exchange (NGX), Temi Popoola, said the Exchange remains resolute in its commitment to promoting sustainable finance because the NGX recognises that urgent action is required to combat climate change and its impact as incorporated in the Paris Agreement on Climate Change and Goal 13 of the Sustainable Development Goals (SDGs).

“We are committed to fostering the growth of sustainable financial products which integrate the financial risks and opportunities associated with climate change and other environmental challenges. NGX has shown strong commitment to sustainable finance over the years.

“In 2016, NGX collaborated with the Ministry of Environment and the Debt Management Office to deepen the green bond market. This effort led to the issuance of the maiden N10.69 billion, $25.8 million, 13.48 per cent 5-year green bond in 2017 to fund projects to develop renewable energy. The second tranche, N15 billion, $36.1 million, 14.5 per cent 7-year Green Bond was issued in June 2019 and was oversubscribed.

“In 2017, NGX played host to a conference on sovereign green bonds which served as a strategic engagement between the Federal Government and financial market players on the prospects of investing in sustainable development,” Popoola said.

 

The Nigerian Exchange (NGX) has lifted suspension placed on trading in the shares of NEM Insurance Plc after the insurance company concluded its share reconstruction exercise and listed the redenominated shares.

In a formal closure of the completion of the share reconstruction exercise, NGX delisted NEM Insurance’s entire issued share capital of 10.03 billion ordinary shares of 50 Kobo each at N2.42 per share. It subsequently listed the post-reconstruction paid up capital of 5.016 billion ordinary shares of N1 each at N4.84 per share.

“With the completion of the company’s share capital reconstruction, the total issued and fully paid up shares of NEM Insurance Plc has now reduced from 10,032,955,535 ordinary shares of 50 Kobo each to 5,016,477,767 ordinary shares of N1.00 each while the market capitalisation remained at N24,279,752,394.70,” NGX stated in a circular announcing the delisting and listing.

According to the NGX, the suspension placed on trading in the company’s shares was lifted when the market resumed from the Yuletide holiday on Wednesday, December 29, 2021 “following the completion of NEM Insurance’s share capital reconstruction”.

Market analysts said the redenomination might not be unconnected with future recapitalisation of the insurance company.

Advanced Finance and Investment Group (AFIG) Funds had in 2019 acquired 29.29 per cent largest equity stake in NEM Insurance Plc. AFIG Funds, an African private equity fund manager, had acquired the shares from existing shareholders of the insurance company.

Group Managing Director, NEM Insurance Plc, Mr Tope Smart, said the AFIG Funds investment was a product of several years of constructive engagement and strategic internal decision to partner with a long-term institutional partner.

He said the partnership with AFIG Funds will accelerate the realisation of the insurance company’s growth ambitions within Nigeria and across the continent.

“We are confident this will be a fruitful and mutually rewarding partnership,” Smart said.

 

Vitafoam Nigeria Plc rode on the back of substantial sales growth to improve its bottom-line, enabling the board of the foam-manufacturing group to recommend 127 per cent increase in dividend payout.

The board of Vitafoam Nigeria is recommending total dividend payout of N2.224 billion for the 2021 business year as against N979.41 million paid for the 2020 business year.

According to the breakdown, shareholders on the register of the company as at the close of business on February 11, 2022 will receive a dividend per share of N1.50.

Key extracts of the audited report and accounts of Vitafoam Nigeria for the year ended September 30, 2021 submitted at the Nigerian Exchange (NGX) showed that group turnover rose by 51.3 per cent from N23.44 billion in 2020 to N35.40 billion in 2021. Group profit before tax grew by 30 per cent to N7.34 billion in 2021 as against N5.65 billion in 2020. Group profit after tax increased by 12 per cent from N4.11 billion to N4.60 billion in 2021. With these, group earnings per share increased from N3.05 in 2020 to N3.39 in 2021.

Further analysis on a standalone basis, showed that the parent company, Vitafoam Nigeria is contributing N1. 88 billion to the dividend payout, an increase of 114 per cent above N87. 59 million paid in 2020. The company’s turnover rose by 49 per cent to N32.01 billion in 2021 as against N21.82 billion in 2020. Profit before tax jumped by 37 per cent to N6.78 billion in 2021 compared with N4.96 billion recorded in 2020. Profit after tax increased from N3.46 billion to N4.38 billion. The company’s earnings per share rose from N2.76 in 2020 to N3.51 in 2021.

Shareholders of the company are expected to approve the financial statements and dividend recommendation at their annual general meeting (AGM), scheduled for Thursday, March 3, 2022 at Raddison Blue Hotel, Ikeja, Lagos. The dividend shall thereafter be paid electronically on Friday, March 4, 2022.

Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi, attributed the company’s consistent strong performance to innovative board and management, continuous introduction of multiple products beyond foams and huge investment in research and development among others.

In a statement to the NGX, Vitafoam Nigeria noted that its business was driven by collective commitment to a culture of integrity, accountability, and transparency.

“We conduct our operations in accordance with good moral and ethical standards while obeying relevant legislations. Our goal is to remain a responsible and responsive corporate organization committed to ensuring healthy and comfortable living while contributing positively to the overall growth of the country,” Vitafoam Nigeria stated.

Market analysts commended the performance of the company, pointing out its strong track records of impressive financials and dividend payouts.

Managing Director, Network Capital, Mr Oluropo Dada said Vitafoam NIgeria has consistently demonstrated resilience despite the challenges militating against the manufacturing sector in Nigeria.

“The company’s current performance is a great improvement over the historical one,” Dada said.

 

Restates commitment to healthy living

Meanwhile, Vitafoam Nigeria has assured Nigerians of continued support for healthy growth of children as foundation for purposeful adulthood.

Speaking at the award ceremony for the first three babies of the year at Lagos Mainland Maternity Hospital on Saturday, January 1, 2022, Executive Director, Corporate Services, Vitafoam Nigeria Mr. Sola Owoade explained that it had been the tradition of Vitafoam to support babies with some of its premium products.

According to him, at the core of the company’s corporate social responsibility (CSR), is the policy of giving back to the society at various levels.

Owoade said   that the company’s existence was highly dependent on the society and it therefore has a responsibility to sustain its culture of quality products, including baby materials.

In line with Vitafoam’s annual tradition of putting smiles on the faces of parents of the first three babies, the company donated an array of products, including babycot, hospital mattresses, memory topper, complete duvet set, leisure mat, sofa bed and memory and fibre pillows respectively.

“As a good corporate citizen, Vitafoam Nigeria,  instituted an annual award for the first three babies of the year at Lagos Island Maternity Hospital over many decades. This is consistent with our corporate social responsibility (csr). Our company is truly Nigerian-owned and all the baby products given out today are made by Vitafoam. This also reflects our multiple products. We are not just about rigid foams only but other household materials, including furniture.

“Vitafoam’s goal is to continually put smiles on the faces of every Nigerian. We always celebrate the first three babies of the year with our products. We congratulate the parents of this year’s beneficiaries. We believe that good facilities are necessary in our hospitals for enhanced child delivery. We appreciate the government’s efforts in this regard but corporate organizations also have a responsibility to support the government,” Owoade stated.

The first baby of the year was delivered at exactly 12.10 am, second, 12.50 am and the third, 1.30 am. Chief Medical Director, Lagos Island Maternity Hospital, Dr Omololu Olufemi commended Vitafoam’s continuous corporate gesture. Olufemi noted that the annual gifts were spread across the first babies of the year. “We have always enjoyed the partnership with Vitafoam over the years,” Olufemi said.

Father of the first baby of the year, Mr Laiyenbi Qudus expressed gratitude to the management of Vitafoam for the gift, describing it as a great beginning of the year for the new baby.

 

 

 

By Taofik Salako, Deputy Group Business Editor

CWG Plc has launched a process to write down its accumulated losses and restructure its balance sheet with a view to ensuring early return to dividend payment.

Shareholders of the company had at an extraordinary general meeting, approved the share capital reconstruction.

Under the plan, the company would reduce its share premium account by way of share capital reduction process by virtue of Sections 130-136 of the Companies and Allied Matters Act 2020 (CAMA).

While the proposed share capital restructuring will not affect the company’s issued share capital, it will result in a reduction of the credit balance in the company’s share premium account, while leaving the aggregate shareholders’ funds unchanged.

The restructuring would also have no impact on the company’s creditors but, pave the way for the company’s investors to receive dividends out of the company’s future profits.

As at December 31, 2020, the company had accumulated losses of N2.499 billion in its statement of financial position. In order to address this, the entire share premium account of N1.85 billion would be applied to reduce the company’s accumulated losses to N645.77 million and consequently bring the company a step further on its pathway to positive retained earnings.

According to the company, the restructuring would lay a foundation for better performance and improve its competitiveness in its sector as well as improve its potential to pay dividends to its shareholders in the near future.

CWG had grown its net profit by 570 per cent to N487 million in 2020; but it was unable to pay dividend due to backlog of losses

Key extracts of the unaudited financial statement of the company for the year ended December 31, 2020 had shown that profit after tax rose by 570 per cent from N72.7 million in 2019 to N487 million in 2020.

The report had shown that the system integration company grew its top-line by 23.4 per cent to N11.8 billion. Gross profit also rose by 13.9 per cent to N2.6 billion. Operating expenses dropped by 24.4 per cent to N1.8 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) closed 2020 at N888 million. Earnings before interest stood at N636 million while profit before tax closed 2020 at N546 million.

The growth underscored the company’s resilience amid the COVID-19 pandemic, as it continued to launch innovative solutions and invest in rewarding partnerships.

CWG had during the year under review launched its cloud-based ERP solution to address the challenges confronting small and medium enterprises (SMEs) and enhance their operations. The solution, known as SMERP, ensures smooth functioning of daily processes, enhancement of work efficiency and substantial reduction in recurring cost.

It  also entered into strategic partnership with Clari5 to help African banks combat enterprise fraud and money laundering. Clari5 is a global leader in financial crime risk management systems. With 200 million accounts at a single site, Clari5 has the world’s largest implementation of a fraud management solution.

Through the strategic partnership, CWG and Clari5 provide solutions to African banks to counter enterprise-wide fraud and money laundering risk.

Addressing the shareholders while presenting the 2020 report, Chairman, CWG Plc, Mr. Philip Obioha said the group net revenue rose by 22 per cent to N11.7 billion while gross profit rose by 13 per cent to N2.6 billion in 2020.

He attributed the improved performance to gains from the decision taken in 2019 to re-invest in some of the group’s platforms and subscription business.

“We increased our capacity and staff enablement to provide customised development and consulting services on specific platforms and market segment. The  company also invested a lot of time and resources to our innovation Hub. We engaged skilled developers and came up with a compelling value proposition and product roadmap for most of our software applications,” Obioha said.

Managing Director, CWG Pl Mr. Adewale Adeyipo, noted that year 2020 was extraordinary and challenging in many ways as the world experienced an unusual occurrence that enveloped the entire globe and changed our world permanently.

He, however, noted that the company braced the odds in 2020 to deliver significant milestones despite the disruptions experienced globally.

“We achieved healthy growth across all our major businesses. Our financial results reflect robust underlying performance and leadership positions across virtually all our activities,” Adeyipo said.

He outlined that with the reduction in administrative expenses by 21 per cent, net profit jumped by 509 per cent in 2020, indicating better efficiency in 2020 despite the effect of the pandemic on the economy.

According to him, while the company recorded overall growth in revenue of 22 per cent in 2020, its better revenue achievement was growing its platform and subscription business, extending the company’s service portfolio and new partnerships.

“The group ended the year with record profitability and significant market share gains across all our operating geographies, which indicates the remarkable improvements and resilience built into each operating entities despite the impact of the pandemic on businesses across the world,” Adeyipo said.

He said the company continued to maintain its promise to champion the development of technology that enables growth in Africa.

Adeyipo said the application of globalised strategies to improve the CWG brand visibility and awareness was rewarding, noting that CWG received the Infosys Finacle’s  Regional Alliance FY20 award for the Middle East and Africa.

He said to further reinforce the group’s local capacity at the Nigerian Technology Awards, CWG was recognised as the Software Provider of the year, Excellent in cloud infrastructure Development, Tech Service and Support company of 2020.

He assured that the company remains focused on being trans-generational and evolving with emerging global trends that foster Africa’s growth at large.

By Taofik Salako, Deputy Group Business Editor

The Growth and Emerging Markets Committee (GEMC) of the International Organisation of Securities Commissions (IOSCO) has launched a consultation process requesting for feedback on proposed recommendations related to the use of innovation facilitators in growth and emerging markets.

Nigeria is a member of Growth and Emerging Markets Committee (GEMC) as well as the board of IOSCO. The GEMC is the largest committee within IOSCO, representing more than 75 per cent of the IOSCO membership, including 10 of the G20 members.

The committee brings members from growth and emerging markets together and communicates members’ views and facilitates their contribution across IOSCO and at other global regulatory discussions. The GEM Committee’s strategic priorities are focussed, amongst others, on risks and vulnerabilities assessments, policy and development work affecting emerging markets, and regulatory capacity building.

The Consultation Report on The Use of Innovation Facilitators in Growth and Emerging Markets covers three types of innovation facilitators: innovation hubs, regulatory sandboxes, and regulatory accelerators. The consultation report proposes four recommendations for emerging market member jurisdictions to consider when setting up innovation facilitators.

Chairman of the Financial Regulatory Authority of Egypt, and GEMC Chair, Dr. Mohammed Omran said a regulatory response to financial innovation requires a balanced approach between the potential opportunities of innovation and the risks for investors, the integrity of markets and the stability of the financial system.

“Setting up innovation facilitators is one way to facilitate the understanding of market trends, assess the need for regulatory changes or adaptation and set a strategy for the sound development of the market, with due regard to these regulatory objectives” Omran said

According to IOSCO; the proposed recommendations cover four areas including considerations prior to the establishment of innovation facilitators; definition and disclosure of objectives and functions of innovation facilitators; defined eligible entities and the criteria for application; and mechanisms for cooperation and exchange of information with both local and foreign relevant authorities.

The report also includes a decision tree for regulators to consider when looking at establishing an innovation facilitator and assessing what type of innovation facilitator to set up.

Vice President of Regulatory Policy, CNBV Mexico and Team Lead of the GEMC Working Group, Ms. Lucía Buenrostro,  noted that when establishing innovation facilitators, securities regulators and other competent authorities must consider their objectives, the scope of their regulatory framework and their available resources, as well as the ecosystem where the financial innovation is taking place.

“The recommendations made here contribute to the regulatory development to guarantee investors´ protection, market integrity and the stability of the financial system” Buenrostro said.

IOSCO is the leading international policy forum for securities regulators and is recognized as the global standard setter for securities regulation. The organization’s membership regulates more than 95 per cent of the world’s securities markets in some 130 jurisdictions.

The IOSCO Board is the governing and standard-setting body of IOSCO and is made up of 34 securities regulators. Mr. Ashley Alder, the Chief Executive Officer of the Securities and Futures Commission of Hong Kong, is the Chair of the IOSCO Board. The members of the IOSCO Board are the securities regulatory authorities of Argentina, Australia, Bahamas, Belgium, Brazil, China, Egypt, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Kenya, Korea, Malaysia, Mexico, Morocco, Nigeria, Ontario, Pakistan, Portugal, Quebec, Russia, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States of America (both the U.S. Commodity Futures Trading Commission and U.S. Securities and Exchange Commission). The Chair of the European Securities and Markets Authority and the Chair of IOSCO´s Affiliate Members Consultative Committee are also observers.