The Nation Newspaper

Category: Investors

  • Binatone gets MANCAP certificate

    Global Appliances Nigeria Limited (GANL), manufacturers and distributors of Binatone products in Nigeria, has been formally presented with the Mandatory Conformity Assessment Programme (MANCAP) certificate by the Standards Organisation of Nigeria (SON).

    Receiving the certificate from SON ‘s State Coordinator, Lagos State III Office, Amuwo Odofin area, Mr. Omotosho Ayodele, GANL Managing Director Mr. Prasun Banerjee promised to ensure compliance with all rules and regulations as specified by the organisation.

    “We have been working on getting this certification for about four or five years now. I am happy that we got it today. With this certificate, I am sure that our customers will have more confidence on our products, we will have the logo on all our products and we promise to comply with all the rules and regulations of production as specified by SON,” he said.

    MANCAP is a mandatory product certification scheme put in place by SON to ensure that all locally manufactured products in the country conform to the relevant Nigerian Industrial Standards (NIS) before such products are presented for sale in the market or exported.

    The scheme, which is renowned and applauded by the industrial sector, started in 2006. It was aimed at ensuring compliance of Made-in-Nigeria products to the minimum requirements of the NIS or code of practice thereby promoting fair competition at both domestic and international markets.

    It was also aimed at safeguarding the safety and health of consumers in the overall interest of promoting economic and industrial development of Nigeria.

    Speaking earlier, Mr. Omotosho congratulated GANL for getting certified, pointing out that the process for getting the certificate was not an easy one because it came after the compliance with all the rules and regulations as set out by SON.

    “We are usually not in a hurry to give this MANCAP certificate to just any company if the company has not complied with requirements.

    It requires a lot of compliance with the rules and regulations.

    “I am happy and I appreciate the fact that a renowned company like Binatone has fulfilled all requirements to get this certificate. I urge you to continue to comply with all regulations as the certificate is given to you on loan and can be withdrawn.

    “We have had to lock up some companies before they complied with our regulations, but I am happy that we did not have to force you to comply,” he said.

  • Investor seeks more investments in oil palm production

    An investor in agriculture, Mr. Ade Ajayi, has called for more investments in oil palm production to solve Nigeria’s economic challenges.

    Ajayi, who is the Farm Manager of Baba Eko Farms Ltd., managed by Corporate Farmers International (CFI), gave the advice in Lagos during the week.

    He said compared to crude oil of $60 (N21,660) per barrel, a 25-litre keg of palm oil goes for N11,000; and  a tonne of palm oil at the international market attracts $500 (N180,000).

    “Currently, palm oil in Nigeria stands at N11, 000 per 25 litres, while at the international market, the commodity per tonne sells for $500.

    “Compared with crude oil of $60 per barrel, palm oil production is the next red gold that Nigeria needs to rescue us from economic paralysis. We stand to gain massively from the production and processing of oil palm,” Ajayi said.

    He explained that his reason for advocating the promotion of oil palm development was driven by the 18 years he has put into commercial farming, where he discovered that most Southwest states planted cocoa, but the capacity had dropped tremendously because of aging trees.

    “However, there is a solution to this as we advise farmers, who cannot replace cocoa trees due to land fallowing, to take up oil palm plantation because the fallowed lands are suitable,’’ Ajayi said.

    The expert noted that the advocacy for development of the oil palm sector was appropriate to get Nigeria back to its glory as the top producer of palm oil.

    He hailed the Federal Government’s current ban on palm oil importation. Describing the move as a welcome development, Ajayi said it was also long overdue.

    “Before 2014, the forex spent on palm oil importation was around $900 million, but the President Muhammadu Buhari-led administration has brought it down to $500 million.

    “Since 2015, the palm oil major producing companies like Okomu, Presco and Leventis invested heavily to expand their production capacity. This can be traced to their success stories at the Nigerian Stock Exchange floor.

    “I want to encourage individuals and corporate organisations to invest in hybrid seeds with three years gestation and about a 100 years life span,’’ he said.

    Baba Eko Farms Ltd. situated in Kabba, in Kogi State, plans to cultivate 50 hectares of oil palm plantation. According to Ajayi, 22 hectares of oil palm plantation have been cultivated; 28 hectares will be cultivated within the next three years.

    Nigeria, as one of the top five producers of palm oil as at 2018, produced one million tonnes of the commodity.

    In the past, palm oil production and palm kernel export contributed about 20 per cent to Nigeria’s foreign reserves and Gross Domestic Product (GDP).

  • Firm gives 50 pupils scholarship

    Kellogg Tolaram Nigeria Limited (KTNL) has presented scholarship to 50 winners of its Kellogg’s Superstars contest.

    At the presentation ceremony of the awards to the young winners, majority of whom were invited to Lagos along with their parents, Kellogg Tolaram General Manager, Mrs. Vani Malik, said the society was still battling with the challenge of huge population of primary school pupils who are out of school.

    According to her, the challenge was one of the reasons for the Kellogg’s Superstars scholarship  as a way of contributing its quota to the economic growth of Nigeria.

    “Kellogg’s Superstars programme follows a holistic developmental approach, which begins with making sure children have the best start to their day by getting a complete breakfast option through Kellogg’s various cereal variants while also encouraging them to identify and improve their inherent academic skills in the area of writing,” she stated.

    Director-General, Office of Education Quality, Lagos State Ministry of Education, Mrs. Ronke Soyombo, extolled the firm’s gesture which, according to her, has touched the lives of the ordinary Nigerian child.

    Soyombo said: “I want to specifically pour encomium on the directors of Kellogg’s Tolaram, imbued with rare foresight aimed particularly at making the whole child, by not only rewarding pupils through scholarships, but by also investing heavily in educational infrastructure, educational partnerships, literacy commitment and all other primary needs that ensures brighter opportunities for the Nigerian child”.

    She said Kellogg’s Tolaram essay competition and reward initiative was borne out of passion and will contribute to the ever-expanding educational status of the state and the country.

    Read Also: ‘Oil firms flared $2.5b worth of gas’

    National Association of Private Schools (NAPPS) President, Lagos State Chapter, Mr. Wasiu Adumadeyin, who spoke at the event, said the impact of the initiative would be far reaching on the economy.

    He said this is so, especially when corporate organisations get involved in educational support at the elementary stage where foundation becomes undeniably important.

    Adumadeyin also pledged the association’s support for any organisation as such that is geared towards promoting a better tomorrow for the Nigerian future leaders.

  • Expert endorses 100% fruit juice consumption

    The Publicity Secretary of the Nutritional Society of Nigeria, Olusola Malomo, has urged Nigerians, especially  religious adherents to explore the nutritional and health benefits of 100 per cent  fruit juice to recover lost nutrients after a long period of fasting.

    Malomo gave the advice in the first series of his engagement in the health  and nutritional  benefits of 100 per cent  fruit juice, a monthly educative  programme  sponsored by Chi Limited, the parent company of Chivita, as part of its ‘no-added sugar’ campaign.

    According to the sponsor, the engagement, which kicked off last year,  aimed at sharing unbiased information on the benefits of 100 per cent fruit juice and support independent efforts by experts such as scientists, nutritionists and dieticians to show how 100 per cent fruit juice contributes to the health and well-being of consumers.

    In the series titled: ‘100 per cent Fruit Juice: A Healthy Way to Revitalise after Fasting,’  Malomo said fasting helps to relieve human system,  adjust fat    level, streng-then the digestive system and increase its efficiency. He, however, regretted that many people lose the health benefits of the spiritual exercise when they take to junk food shortly after.

    ”They break their fast with lavish, sweet and oily feasts. This increases cholesterol level and, perhaps, triggers diabetes. A few individuals, on the other hand, overstrain their systems, leading to deficiency of vital nutrients.

     

     

     

  • Dubai: An investment haven beckons

    Dubai, one of the seven emirates under the United Arab Emirates (UAE), has taken the world of business by storm. By riding on the crest of robust infrastructure, investor-friendly business environment, and attractive free zones, it has firmly established itself as the global hub for trade and investment. Drawn by the emirate’s irresistible and mouth-watering incentives, many Small and Medium Enterprises (SMEs), startups and multinationals from Nigeria and other African countries are rushing to Dubai to either begin operations or expand. Assistant Editor CHIKODI OKEREOCHA, who just returned from Dubai, reports.

    For businesses and investors in Nigeria and other African countries searching for a bountiful Return on Investment (RoI) and a boost in efficiency and global competitiveness, Dubai, one of the seven emirates under the United Arab Emirates (UAE), is the destination of choice.

    By dangling the proverbial carrot in the form of mouth-watering incentives to existing and prospective businesses, including Small and Medium Enterprises (SMEs), startups and multinational corporations (MNCs) seeking to either begin operations or expand their footprints, Dubai has strategically positioned itself as the most sought-after business and investment haven.

    Some of the incentives that are attracting businesses and investors from Africa, including Nigeria to Dubai, include world-class infrastructure, 100 per cent foreign ownership for mainland businesses in some sectors, 10-year hassle-free visa for investors, reduced fees for electricity consumption for large, medium and small factories.

    Dubai’s strategic geographic location, forward-looking government and policies, Ease of Doing Business (EoDB), excellent logistics facilities and world class infrastructure, among others, also earned the city its pride of place as the preferred global investment destination.

    For instance, with regards to EoDB, the UAE was ranked 11th globally in World Bank’s Ease of Doing Business Rankings 2018, up by 10 spots since 2017. The UAE was also ranked first regionally, even as it claimed the number five spot globally in the Institute for Management Development (IMD) World Competitiveness Rankings 2019.

    Such favourable rankings are believed to have warmed Dubai, the UAE’s largest and most populous city, to the hearts of not a few investors and business owners from Nigeria and other African countries eager to take advantage of her global footprint in the world of business.

    The Government of Dubai has also gone a notch higher by establishing a consultative council that includes international companies, allocating as much as 20 per cent of government tenders to SMEs, reducing municipality fees, waiving property registration fines, and scrapping fees related to the aviation industry with the aim of attracting investment to the sector.

    These initiatives, The Nation learnt, were designed and diligently implemented to ensure a conducive and investor-friendly business environment, boost confidence in the market and reduce the financial burden on businesses and investors coming into Dubai.

    The Marketing and Corporate Communications Director, Dubai Chamber of Commerce & Industry (DCCI), Mr. Rami Halawani, explained that the incentives were in line with the emirate’s overall ambitious international expansion strategy aimed at positioning it as an international business hub.

    Halawani, who spoke with select journalists from Africa and India during a ‘Business in Dubai FAM Trip’ organised by Dubai Commerce Marketing, last week, said the incentives, in addition to the Chamber’s push to promote Dubai as a leading trade and investment destination, have led to a significant increase in the number of African companies registered with the Chamber.

    At the five-day event, which centred on business in Dubai, with the aim of drawing attention to how improved regulations and the afore-mentioned incentives made Dubai the global hub for trade, investment and leisure, Halawani said the number of companies in Nigeria and other African countries registered with Dubai Chamber increased from about 12, 000 in 2015 to 17, 500 in 2017.

    This represents an increase of 32 per cent. As at end of 2018, the number exceeded 20,000. He also said as part of Dubai’s push in the African market, it has invested about $27 million in Africa in the last three years. The investment, Halawani said, was part of the strategy to link Africa to Dubai, a global metropolitan city and a gateway to the rest of the gulf.

    He further justified the emirate’s increased focus on Africa thus: “Africa is rich in energy and mineral resources, but lacks the capital, resources and infrastructure to bring this natural wealth to the market. The UAE has access to the capital required by Africa to unlock the potential of its natural resources as well as the infrastructure to sustain economic growth.”

    According to the DCCI spokesman, Dubai remains a global gateway to Nigeria and other African markets, which is why the Chamber operates four representative offices within Africa. They include Ethiopia, Ghana, Mozambique and Kenya. The Chamber, he said, was also studying the possibility of expanding into Nigeria, Angola, Uganda and the Central African markets.

    Halawani also said Dubai Chamber was working closely with her African offices to organise trade missions to Dubai, which have been joined by African business leaders that are actively looking for UAE business partners.

    “Through our trade missions, events, international offices, workshops, research, we continuously try to provide businesses with the opportunity to explore new markets, identify investment opportunities and build linkages…” he said.

    Halawani listed some of the key sectors that offer the most potential for future collaboration between businesses in the UAE and their African counterparts to include financial services, retail, logistics, travel and tourism.

    He, however, said the bourgeoning trade/business relations between the UAE and the continent was not limited to only large companies, but extended to start-ups and SMEs with the aim of accelerating their growth in Dubai.

     

    Nigeria under Dubai’s international expansion radar

    Encouraged by Nigeria’s considerable oil reserves and an agriculture sector that boasts significant potential, Dubai has her eyes set on improving her trade/business relations with Africa’s largest and most populous economy. The country ranked seventh on Dubai’s trading list, with non-oil trade reaching AED 5.34 billion in 2018.

    Indeed, the volume of non-oil trade between Nigeria and the UAE has been increasing, with the total value of Nigeria’s non-oil export to the UAE standing at $608 million in 2017, according to statistics from the Economic Research Department of the Dubai Chamber.

    The data, which was made available to The Nation in Dubai, showed that while UAE’s non-oil export to Nigeria stood at $612 million in 2017, rising from $605 million in 2016, the value of her non-oil imports from Nigeria was $608 million, down from $730 million in 2016.

    While pearls and precious metals accounted for the largest share of UAE’s non-oil imports from Nigeria, valued at $590 million in 2017, wood and plaiting materials came second with total import value put at $9.8 million. Vegetable products were valued at $5.8 million.

    On the other hand, machinery/electronics, transport equipment, base metals, plastic rubber and chemicals formed the bulk of UAE’s non-oil export to Nigeria. The value of machinery/electronics and transport equipment export stood at $313 million and $85 million, respectively.

    The data, however, listed the high potential non-oil imports from Nigeria to include cocoa, sesame seeds, cashew nuts and natural rubber. High potential exports by UAE to Nigeria include electrical machinery, pearls/precious stones, copper and articles of leather.

    The Chamber listed the high potential sectors in Nigeria to further boost bilateral trade between Africa’s largest economy and the UAE to include agribusiness, packaging, manufacturing and energy, among others.

     

    Startup mentorship is icing on

    the cake

    To underscore the growing emphasis on startups, Dubai Chamber will be selecting 10 startups from the UAE and Africa later this year to participate in its 5th Global Business Forum (GBF) on Africa in Dubai, from November 18-19, 2019.

    Organised under the theme: “Scale Up Africa”, GBF Africa 2019 will be held under the patronage of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

    The high-level forum, The Nation learnt, will bring together African and UAE government and business leaders to explore avenues of economic cooperation and facilitate bilateral trade and investment flows.

    It will also place a key focus on forging the connections that will enable scale up, and explore how public and private sector players in Africa and the UAE can work together to sustainable partnerships.

    However, the icing on the cake of the 5th edition of the GBF Africa 2019 is Global Business Forum Mentorship Programme, which is a three-month programme that will pair African and UAE startups and entrepreneurs with mentors.

    The new mentorship programme was an extension of Dubai Chamber’s GBF on Africa platform, and was aimed at fostering cross-border cooperation between the two startup communities and help participants expand their global presence.

    Already, 10 startups, five each from the UAE and Africa, have been shortlisted and will be given the opportunity to showcase their business concepts and solutions at the Forum.

    The five UAE startups include Evolvin Women, a start-up helping unemployed women from developing countries; ORENDA+Bloom, a gender balance consultancy; Tuitify, a startup using Artificial Intelligence (AI) and virtual reality to improve employee training and productivity.

    Others are Designhubz, a platform that enables retailers and brands to sell their products in 3D; and Pixel House, a production agency offering video production, photography and branding solutions.

    From Africa, the five startups that will join the programme include FarmGate Africa, a Nigerian startup that uses advanced technologies to connect international buyers and farming clusters; quip.link, an online marketplace for renting and selling construction equipment.

    There are also Complete Farmer, a crowd-farming platform focused on building sustainable farms; Engineering Hub Ltd, a provider of IT services and solutions for mobile and banking integration platforms; and RideSafe, a mobile application offering real-time health solutions.

    Prior to their selection, the 10 shortlisted startups participated in the first-ever Chamberthon, which took place in Kigali, Rwanda earlier this year. During the Chamberthon, 20 UAE and African startups worked together to develop the structure and criteria of the GBF mentorship programme.

    DCCI President & CEO Hamad Buamim said the selection of participating startups was an important step forward in establishing bridges of communication and cross-border cooperation between UAE and African startups.

    He pointed out  that many of the selected startups specialise in advanced technologies, smart solutions, AI and financial technology (fintech), adding that collaboration in these key areas would pave the way for mutual benefits and growth for both business communities.

    Buamim said: “Startups are playing an active role in fostering innovation as they leverage and test out cutting-edge technologies that improve the way we live and work.

    “The GBF entorship programme provides an ideal platform for high-potential startups to develop their business concepts, benefit from collaboration, access new growth opportunities through the GBF on Africa platform, and build valuable partnerships.”

    Buamim added that the theme of this year’s forum highlights the importance of sustainable development as an engine and catalyst for economic and social progress in Africa, while also setting the tone for constructive dialogue about key trends that are driving the continent’s next phase of growth.

    GBF Africa 2019 is anchored on four main pillars namely, Accelerator Eco-system, which will help turn young startups into thriving multinational businesses; Rewiring Trade, which will focus on Africa and Dubai working together to rewire trade for the digital era.

    Others are Scale through Collaboration, which seeks to promote collaboration among governments, startups, established companies and non-governmental organisations (NGOs) and Pan African scale, which will seek to leverage the market power of the whole continent through digital trade.

     

     

  • Publishers delight investors with N210.7m dividend

    Nigeria’s three major quoted publishing companies have voted N210.67 million to be distributed to shareholders as cash dividend for the immediate past business year.

    In what indicated a major positive signal for the beleaguered publishing sector, University Press Plc, Learn Africa Plc and Academy Press stated that they would be paying dividends for the year ended March 31, 2019 despite declining margins in the industry. The three companies engage mainly in publishing, sales and distribution of educational books and materials.

    University Press, which has sustained unbroken decades of consecutive dividend payment, indicated that N64.71 million will be distributed for the 2019 business year, representing a dividend per share of 15 kobo.

    The board of Learn Africa has also recommended payment of N115.72 million as cash dividend to shareholders, representing a dividend per share of 15 kobo.

    Academy Press, which made the most remarkable recovery, indicated it would be distributing N30.24 million to shareholders, implying a dividend per share of 5.0 kobo.

    The dividend recommendation triggered a rally for Academy Press’ share price, which rose by 7.41 per cent to 29 kobo on the first trading session of this month. At a price of 29 kobo, the recommended dividend payout represents a dividend yield of 17.2 per cent, a yield considered attractive by most analysts.

    Key extracts of the audited report and accounts of the three companies for the year ended March 31, 2019 showed general decline in the bottom-line, underlining the cost pressure attributed to increasing costs of distribution and operations due to insecurity in some markets, proliferation of substandard publication, dumping and piracy.

    The 15-month report by Learn Africa showed that turnover rose to N3.48 billion in March 2019 as against N2.49 billion in December 2017. Profit before tax also rose from N296.69 million to N379.93 million. However, profit after tax dropped from N266.89 million to N161.96 million.

    Academy Press grew turnover by 12 per cent from N2.18 billion in 2018 to N2.43 billion in 2019. Profit before tax stood at N88.46 million in 2019 compared with a loss of N10.27 million in 2018. However, with taxes of N38.9 million in 2019 as against tax write backs of N73.91 million in 2018, profit after tax dropped by 22 per cent from N63.64 million in 2018 to N49.55 million in 2019. Earnings per share dropped from 17 kobo to 8.0 kobo.

    University Press grew its turnover from N1.80 billion in March 2018 to N2.316 billion in March 2019. Profit before tax however dropped from N354.63 million to N165.53 million while Profit after tax halved from N207.41 million to N109 million. Earnings per share consequently declined from 48.08 kobo to 25.27 kobo.

     

  • Transmission of deceased’s shares to be done in one week

    As part of efforts to ensure seamless transmission and claim of a deceased’s shares by heirs and administrators, Securities and Exchange Commission (SEC) has further reduced the time, processes and costs of the transmission of shares from a deceased to the beneficiary.

    In an amended draft on the operating framework for transmission of shares, SEC has reduced the timeline for the transmission of deceased’s shares from three weeks to one week. Registrar shall ensure that shares of a deceased are transmitted within a week of receiving the request from the administrators or executors.

    The registrar is also required to transmit the Letter of Administration to the Probate Registry within 24 hours of receipt of same for verification.

    The executors or administrators shall however provide letter of introduction from the administrators and executors introducing themselves as the legal representatives of the estate. The letter should indicate the names, addresses, signatures and BVNs of the individual administrators and executors.

    Also, administrators or executors shall provide original death certificate from the National Population Commission (NPC) for sighting, original probate letter or letter of administration for sighting or the certified true copy (CTC) from a Notary Public, copy of newspaper advert placed by the Court or Gazette, any evidence of ownership of the investment by the deceased such as the statement of shareholding from the Central Securities Clearing System (CSCS), original share certificates, dividend stub or dividend warrants or bank statement showing receipt of dividend into the account of the deceased.

    SEC is also limiting the fees chargeable for transmission of shares by registrars to one per cent of the total value and additional five per cent Value Added Tax (VAT) for shares of N5 million and below and  0.5 per cent of the value and five per cent VAT  on shares above N5 million with a maximum chargeable amount of N200,000, excluding VAT. Also, fees chargeable for confirmation of probate or letter of administration shall not exceed N12,000.

    Registrars are also disallowed from charging fee on dematerialisation of share certificate and mandating of accounts for electronic dividend. However, change of address, name or mandate shall not attract more than N100 per request while update of update of signature capture and scanning shall not be more than N200 per signature.

    Any registrar that violates the provisions of the rules shall be liable to a penalty of not less than N1 million and an additional sum of N20,000 for every day the violation persists.

    The new rules also seek to standardise the turnaround time for processing all requests for replacement and update from the date of submission of all relevant documentations. The turnaround time for dematerialisation is three working days, update of signature capture and scanning shall take place in 24 hours while change of address, name and mandate shall be done within two working days.

    According to SEC, the amended draft rules would ensure standardisation and efficiency in the transmission process, thereby minimising conflict, protecting investors and maintaining the integrity of the market.

  • Ellah Lakes seeks fresh capital with 1.0b new shares

    Ellah Lakes Plc has launched a process to increase its authorised share capital and raise new capital, as the agricultural company seeks to diversify its business.

    The board of directors of Ellah Lakes has scheduled a meeting of shareholders by the month-end to consider the proposals for an increase in authorised share capital and new capital raising exercise.

    At the meeting, shareholders are expected to consider and pass a resolution authorising the increase in authorised share capital of the company from N1 billion of 2.0 billion ordinary shares of 50 kobo each to N1.5 billion of 3.0 billion ordinary shares of 50 kobo each through the creation of additional 1.0 billion ordinary shares of 50 kobo each.

    The meeting is also expected to approve a resolution authourising the board of the company “to raise additional capital whether by way of debt, equity, or a mixture of both, or via public offering, private placement or right issue in such tranches, series or proportions and such prices or interest rates, within such maturity periods, at such dates and time and on such terms and conditions as may be determined by the directors, subject to the requisite approval of the relevant regulatory authorities”.

    Shareholders are also expected to approve the recent appointments unto the management and board of the company.

    Ellah Lakes, one of Nigeria’s foremost agriculture businesses with specialty in fish farming, recently acquired Telluria in order to diversify its product offerings in the agribusiness sector. Ellah Lakes was incorporated on July 2, 1980 and was listed on the NSE on January 14, 1993.

    The company had last month listed 1.88 billion ordinary shares of 50 kobo each issued to shareholders of Telluria Limited as consideration for 100 per cent acquisition of Telluria. The new shares were listed on the NSE, bringing the new shares at par with the old shares of Ellah Lakes. With the listing, the total issued and fully paid up shares of Ellah Lakes increased from 120 million ordinary shares of 50 kobo each to 2.0 billion ordinary shares of 50 kobo each.

    Ellah Lakes had acquired 100 per cent equity stake in Telluria with effect from May 7, 2019. Having complied with all the necessary regulatory requirements, the acquisition was approved by the NSE and Securities and Exchange Commission (SEC).

    Ellah Lakes stated that the primary objective of the acquisition was to strengthen its balance sheet, restore customer confidence, provide access to new markets, improve operations and create organisational efficiencies that will drive profitability and increase shareholders’ value.

    According to the company, the board of directors and management consider this business combination to be in its best interest as the transaction will help to revitalise management and create access to diversified expertise and financial strength.

    The company added that the acquisition would also help to improve administrative and operational efficiencies as well as strengthen its market position by increasing access to new products and markets.

    With the acquisition, Ellah Lakes appointed Mr. Chuka Mordi as its Managing Director with effect from June 12, 2019. Mordi took over from Mr. Frank Ellah, who remains on the board as a non-executive director. Prior to appointment,  Mordi was a director in Telluria and the Managing Partner of CBO Investment Management.

  • Nahco, Notore, others make NSE’s benchmark stocks

    The Nigerian Stock Exchange (NSE) has reviewed the 13 indices that serve as benchmarks for stocks’ groups and sectors. The composition of the indices after the review took effect on Monday July 1, 2019.

    In a report on the review, the NSE indicated that five indices remained unchanged, including the NSE Banking Index, the NSE Oil and Gas Index, the NSE Pension Index, the NSE Corporate Governance Index and the NSE-Afrinvest Bank Value Index.

    In the reviewed indices, the Nigerian Aviation Handling Company (Nahco) displaced Total Nigeria from the NSE Lotus Islamic Index, which tracks equities that conform to Islamic financing requirements. Also, Custodian Investment displaced Dangote Flour Mills from the NSE 30 Index, the benchmark index that tracks the 30 largest companies on the Exchange.

    In the consumer goods sector, McNichols displaced Dangote Flour Mills in the NSE Consumer Goods Index while Notore Chemical Industries Plc displaced First Aluminium Nigeria from the NSE Industrial Goods Index.

    The NSE also removed Sunu Assurances Plc from the NSE Insurance Index an added Veritas Kapital Assurance to the insurance sector’s benchmark index.

    Also, there were also changes to three co-branded indices. Africa Prudential was added to the NSE-Afrinvest High Dividend Yield Index and the NSE-Meristem Growth Index while Access Bank, Presco and United Capital were added to the NSE-Meristem Value Index. The trio of Sterling Bank, Zenith Bank and Nahco were removed from the NSE-Meristem Growth Index.

    The NSE-Meristem Growth Index and NSE-Meristem Value Index focus on growth and value investment strategies and enable investors to make investments in products that truly match their investment styles and objectives. The indices were developed on a style-focused methodology proprietary to Meristem Securities Limited.

    The NSE-Afrinvest Banking Value Index and NSE-Afrinvest High Dividend Yield Index were designed in response to requests for applicable benchmarks for measuring value in banking stocks and high dividend stocks listed on the Exchange. They serve as tools for investment managers and corporate treasuries seeking appropriate benchmarks to evaluate the performance of their portfolios to a segment of the banking sector or high dividend orientation as applicable.

    The indices, which were developed using the market capitalisation methodology, are usually rebalanced on a biannual basis, the first business day in January and in July. The stocks are selected based on market capitalisation and liquidity. The liquidity is based on the number of days the stock is traded during the preceding two quarters. To be included in the index, the stock must have traded for at least 70 percent of the number of trading days in the preceding two quarters.

    The NSE began publishing the NSE 30 Index in February 2009 with index values available from January 1, 2007. On July 1, 2008, The NSE developed four sectoral indices and one index in 2013, with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors. The Insurance and Consumer Goods sector index, comprises the 15 most capitalised and liquid companies; Banking and Industrial Goods sector index, comprised of 10 most capitalised and liquid companies, while the Oil & Gas sector index, is composed of the seven most capitalised and liquid companies.

     

  • Why investment is poor in Third World countries, by Wabba

    NIGERIA Labour Congress(NLC) President Comrade Ayuba  Wabba has expressed concern over what he described as militarisation of third world countries.

    According to him, the  development is affecting investment potentials in most the countries.

    Wabba told The Nation on the sidelines of the just concluded 108th session of the International Labour Conference that the absence of peace in many countries is affecting industrialisation,.

    The labour leader said  no investor would come to any country where there is no peace.

    Wabba, who is also the president of International Trade Union Confederation, said the increase in the number of countries that has been militarised was a clear indication that something has gone wrong with the world system.

    He said: “Anywhere you are able to deny workers and citizens their means of livelihood, it will be difficult to address the issues of peace and stability. That is why the key for moving forward is future of work that can still guarantee some of the fundamental rights that workers have already earned.

    “We have seen budget of the world and the militarisation of the world. If you look at the areas of the world that is currently being militarised, you will notice an increase.

    “That is to tell us that something is wrong and that something need to be done. That is why the ideas of ILO is to use sustainable peace and development within the decent work agenda.

    “When you have decent work and many people have something to do, it will be an avenue to being about social stability and social cohesion because you cannot have development where there is no peace.

    “Investors will not come to a country where there is conflict because they want peace which will drive development.”

    Read Also: Nigeria is endowed but poor, says don

    Speaking on the lessons learnt from the centenary celebration of the ILO, Wabba said: “Looking over the years and the various roles that ILO has played in shaping the world of work, we can say with nostalgia that a lot has been achieved.”

    The supervisory mechanism of the ILO and the issue of standards is very important and many conventions have been passed. Nigeria is the first country in African to rectify these conventions.

    “We cannot take for granted the fact that the issues of labour standards everywhere around the world is important because we need regulate the issue of labour the same way we regulate economic issues round the world.

    “In fact, the issue of labour should be taken more seriously because it is about human beings. Therefore, we can say with every sense of responsibility that this is an occasion that is worth celebrating. It is also to plan for the future. That is why the theme centered on decent work and sustainable development.

    “If you look at the sustainable development goals, particularly goal eight, you discovered that it talks about decent work. At the foundation of peace around the world, is actually the issue of social justice. That is why the issue of social justice is key.

    “The future of work becomes important because going into the 21st century and the fourth industrial revolution, we have seen a lot of changes. We have seen that what is driving economies around the world is the issue of technology where attempts are being made to use technology to replace human beings. That will not augur well with our desire to have sustainable development and decent work around the world.

    “Anywhere you are able to deny workers and citizens their means of livelihood, it will be difficult to address the issues of peace and stability. That is why the key for moving forward is future of work that can still guarantee some of the fundamental rights that workers have already earned.

    “Some of the fundamental rights brought by this important institution is the right of the worker to collective bargaining which stipulates that a worker is not a slave and that they have a right to negotiate their conditions of service.

    “Going forward, in whatever economy we operate, these rights must continue to be guaranteed. That is why we have requested for a new social contract going into the digital world and the technological revolution.

    “We need to ensure that workers continue to exercise these rights which include the right to strike, the right to decent work and the right to fewer hours of work because been have seen that with the advent of technology, people are now made to work for longer hours without being paid.

    “We have heard progressive pronouncement by world leaders here with some of them being very supportive of the fact that the issue of minimum wage should be universal.

    “We heard President Macron said that because of the issue of people moving from one place to the other in search of greener  pasture, he advocating for a minimum wage in Europe that is enforceable.

    “World leaders that have come here have said that the panecea for global peace is social justice. You cannot have peace around the world if there is no social justice.

    “Therefore, if we have a pool of youths around the world that are not engaged, it is also a problem. That is why the issue of decent work is imports. Inequality around the world has increased and that is why I said that inequality anywhere is a threat to insecurity anywhere in the world.

    “We have seen this happen from one jurisdiction to another. That is why we are expecting a very strong instrument from this conference in form of conventions to address issues of violence and harassment in the world of work. We are very passionate about that as workers.

    “We have seen how minor and women are being harassed on daily basis. Therefore, the world of workers have seen this as a major issue and the need to confront it from a global perspective and have a convention that van guarantee zero tolerance for harassment and the issue of violence in the work place.”