After two years of positive returns and continuing bullish rally, Nigerian equities may witness a breather and suffer a pull back in the period ahead.

In a long analyst’s report, a leading investment and finance firm, Arthur Stevens Asset Management Limited stated that there were many indications that the Nigerian equities market could witness a streak of bearishness over the next cycle.

Using technical trend analysis and policy influence, analysts at Arthur Stevens said increase in Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN) and the general elections were known to impact negatively on the pricing trend at the stock market.

According to analysts, the decision on the policy rate remains potent in either making or marring the performance of the market.

“Whenever, the central bank hikes the MPR, the market reacts negatively as the bullish triggers such as earnings surprises, corporate actions, expansion become less compact. The impact of the CBN’s decision has impact the market negatively,” Arthur Stevens stated.

Analysts noted that the market has continued to seek for a clear direction as the bellwether stocks are yet to recover from the massive sell-off which trailed the recent hike in the MPR.

“More still, the rising cost of living will reduce the portion of disposable income available for saving and investment. Furthermore, the increased cost of doing business will impact the bottom line of companies which will affect the reactions of investors negatively towards the equity market.

Read Also: Nigerian equities beat global slowdown with N197b gain

“Furthermore, the election cycle theory has been potent in the Nigerian equities market. Historical data showed that the market reacted negatively in pre-election, election year and post-election years as observed in the 2015 election cycle. In 2014, the market recorded a year-to-date of -16.14 per cent after the market recorded a double-digit performance of 47.19 per cent in 2013. The big sell-off continued into the election years and transcended into 2016.

“More still, the aforementioned scenario partly played out in pre-election and post-election in 2018 and 2019 respectively. In 2018, the equities market lost -17.81 per cent while it lost -14.60 per cent in 2019. However, the post-election year recorded a positive YTD of 50.03 per cent which was consequent on the low MPR stance of the CBN with the view of spurring growth.

“In all, the equities market is highly sensitive to policy rate hike as well as the election cycle and based on historical trends, the market will fully recover at least a year after the election cycle. Although the market is still positive year-to-date. However, the market is expected to react fully as electioneering take centre stage,” the analytical report stated.

Analysts outlined four points that should guide investors in rebalancing their portfolios in expectation of a possible pull back in share prices.

According to analysts, having considered the fact that history is a pointer to at least a one-year recovery post-election, returns from price appreciation might remain at arm’s length and the only return that is at least relatively constant is dividend income.

The report thus noted that the position that should be taken in the expected “murky investment environment” should consider stocks that have “little or no earnings pressure which will materially impact dividend paying ability”, stocks “which are undervalued with huge upside” , stocks “which have exhibited regular and sustainable dividend payment” and stocks with “no idiosyncratic factors affecting the industry in the context of the economy”.

The report recommended three blue chip stocks including Dangote Cement, MTN Communications Nigeria and Zenith Bank International as flagship for a bearish-session rebalanced portfolio. Analysts noted that the three stocks have regular dividend payment history and good cashflow to back their capacity to sustain dividend payment.

The report noted that the Nigerian equities over the past two years have remained largely positive as the benchmark index at the Nigerian Exchange-the All Share Index ( ASI) recorded a positive close for two consecutive years – 2020 and 2021. The positive wrap-up of the previous year transcended into the year with an even stronger bullish trend, which saw the ASI recorded 18 straight days of gain in April. This pushed the ASI with a historic open high of 42,714.44, which is the highest year open in 15 years to a gain of 21.45 per cent.

According to the report,  the source of the equities rally had mainly been the low interest environment which crystalised from the stance of the Central Bank to spur growth inhibited by the outbreak of the Covid-19 pandemic. The low interest environment impacted positively on the bottom line of corporates which in turn boosted investor confidence and led to the bid-up in stock prices with anticipation of maximising returns. However, the bullish rally was brought to an abrupt end with the interest rate hike in May.

The International Organisation of Securities Commissions (IOSCO) has underscored the importance of investors education in protecting them from possible risks in sustainable finance investments.

IOSCO – the global body of securities markets’ regulators – has published a report that identified recent developments in investor education on sustainable finance, to enhance investor education and protection and support the sound development of the growing financial market.

Chair, IOSCO Board and the Chief Executive Officer, Hong Kong Securities and Futures Commission, Ashley Alder, said financial education was key to enhancing investor protection, and it complemented the policies, regulations, oversight and enforcement actions that securities regulators might undertake to support the sound and proper development of sustainable finance markets and products.

“Financial education also increases investor confidence to participate in innovative financial markets such as sustainable finance, on a properly informed basis,” Alder said.

Chairman, IOSCO Committee on Retail Investors, Pasquale Munafò, said sustainable finance offered new opportunities for retail investors, locally and globally.

“But it is crucial that they understand what a sustainable product is, as well as its different opportunities and risks, including the threat of greenwashing. The report intends to provide practical tools and messages to support financial education, but this is initial work as sustainable finance continues to develop and innovate worldwide,” Munafò said.

The report on ‘Retail Investor Education in the Context of Sustainable Finance Markets and Products’ indicated that securities regulators have increasingly focused on whether sustainable finance claims are accurate and if investors have the information they need to evaluate sustainable finance products.

The report noted that to make informed decisions, retail investors need to understand the characteristics of such products.

Accordingly, the report identified some of the main challenges and sound practices for developing educational content on these matters, informing investors of the features and risks of sustainable investments and fostering educational activities that create the conditions for better protecting and informing retail investors on the opportunities and risks related to sustainable finance products.

The report described educational activities that regulators should consider, taking into account the level of sustainable finance and retail investor participation in their markets.

According to the report, these educational activities should include explaining to retail investors how to obtain sustainability-related information and to search and understand whether the offered product matches their sustainability-related preferences; and supporting initiatives of market participants to help retail investors understand environment,  safety and governance (ESG) certifications, labels and scores regarding the financial products offered to individuals and encouraging and or facilitating training that helps financial advisors better understand greenwashing and how to protect investors against unsubstantiated or misleading sustainability claims.

The report complemented other IOSCO efforts  including the work of the Sustainable Finance Task Force (STF), which has recommended that securities regulators and policymakers should consider promoting financial and investor education initiatives relating to sustainability as well as enhance existing sustainability related education initiatives.

The report included some key messages that securities regulators should consider for their financial education programmes, to help retail investors understand how a “smart investor” would behave when faced with sustainable finance products.

African and Caribbean businesses have agreed to implement an action plan that will lead to strategic partnerships between the two business communities.

At the end of the AfriCaribbean Trade and Investment Forum 2022 (ACTIF2022) in Bridgetown, Barbados, business and political leaders affirmed their commitment to remove the scars of the past and build a commercial bridge towards forging a prosperous future for Africa and the Caribbean.

 In the communique presented at the end of the Forum, the partners pledged the implementation of strategic partnership between the business communities in Africa and the Caribbean with the objective of fostering bilateral cooperation and engagement in trade, investment, technology transfer, innovation, transport, tourism, culture and other services.

The signing of the partnership between Afreximbank and seven Caribbean states will usher in investments to concretise the commercial relations between the two regions, with an immediate focus on establishing an air bridge, and business to business match-making through the new African-Caribbean Business Council.

 They stressed the critical importance of enhancing investment and trade for economic and social transformation in line with the Forum’s theme of “One People, One Destiny: Uniting and Reimagining our Future”, Prime Minister Mottley of Barbados said that key goals had been achieved through ACTIF2022,.

“What matters is not so much the subject area, but the attitude and approach, one for collaboration and two for de-risking, that we come now to today’s moment to be able to deal with. And that is the importance of today’s inaugural AfriCaribben Trade and Investment Forum because it allows us to see how we can work together to unlock those very difficult issues that have only been made worse, regrettably by matters beyond our control,” Mottley said.

The communique, read by Ambassador Chad Blackman, Permanent Representative of Barbados to the United Nations in Vienna, also thanked the 25 Heads of State and their representatives, and other government organisations for convening ACTIF2022.

ACTIF2022 was convened by the Government of Barbados and Afreximbank, in collaboration with the African Union Commission, the AfCFTA Secretariat, the Africa Business Council, the CARICOM Secretariat and the Caribbean Export Development Agency. It was co-managed by Invest Barbados and Export Barbados and attended by over 1,200 participants from 41 African countries, 16 Caribbean countries, and representatives from as far as Oceania.

Global Accelerex Limited has raised N2.28 billion through its maiden bond issue.

Global Accelerex, through its special purpose vehicle – Accelerex SPV Plc – floated its N2.28 billion Series 1 Fixed Rate Bond. The first tranche was issued under the firm’s N20 billion bond issuance programme.

The net proceeds from the maiden bond would be used to fund the purchase of terminals across Nigeria and offset the costs of the company’s capital expenditure, among others.

Global Accelerex is certified by the Central Bank of Nigeria (CBN) as a payment terminal service and payment solution service provider, to deliver innovative technology solutions in a secure and reliable manner to businesses and consumers across channels.

The new bond has been admitted to the board of FMDQ Securities Exchange; providing investors with opportunity to trade on their holdings.

FMDQ Securities Exchange noted that the admission of the new bond further confirmed its status as Nigeria’s largest securities exchange by market turnover and the preferred destination for companies seeking to raise capital through the debt markets.

“Through its first-class securities admission service, FMDQ Exchange facilitates capital formation by delivering an efficient, cost-effective and timely securities admission process for debt securities such as bonds, funds, and commercial papers, among others,” FMDQ stated.

FMDQ Exchange assured that in support of its mandate to align the debt markets with international best practices and standards, it would continue to provide a dynamic and innovative platform for capital formation, offering institutions the support required to impact their businesses, sectors and the overall economy.

Companies have so far raised about N3.4 trillion in debt financing from the capital market this year.

FMDQ indicated that it has, so far, this year admitted more than 102 securities as companies continued to explore the debt market to fund their growth plans.

FMDQ noted that the performance of its platform, so far, in the year attests to its efficient and uniquely tailored listing and quotation service.

“As a securities exchange with a commitment to facilitate growth and development in the Nigerian debt markets and the Nigerian economy at large, FMDQ Exchange will continue to promote an efficient, transparent, and well-regulated market, which will attract and retain both domestic and foreign investors,” FMDQ stated.

According to the Exchange, the increasing recourse to the debt market validates FMDQ Exchange’s conscious drive to support the goals of corporate businesses and to deepen the debt markets.

“In support of its mandate to align the Nigerian debt markets with international best practices and standards, the Exchange will continue to provide a dynamic and innovative platform for capital formation, offering institutions the support required to positively impact their sectors and the overall economy,” FMDQ stated.

Declining foreign investment inflows into Nigeria may continue in the next few years, worsening a tough macroeconomic outlook fuelled by decline in government’s revenue.

Economic and investment experts at Cordros Capital said there was no hope of any significant recovery in the country’s foreign inflows due to monetary and fiscal challenges.

On the background of the report by the National Bureau of Statistics (NBS), indicating that capital importation into Nigeria declined in the second quarter of the year, analysts at Cordros Capital said foreign inflows would remain low below the pre-COVID-19 levels over the medium term.

Analysts outlined that three broad factors would continue to fuel foreign investors’ apathy and limit the potential of the country as global destination for investors.

According to them, the lack of flexibility in the foreign exchange (forex) management framework and inadequate structural reforms are major factors discouraging foreign investors from the market.

Analysts added that foreign investors might also be concerned about the atmosphere of uncertainties amid political risks as Nigeria gradually moves towards next year’s general elections.

The NBS had reported that capital importation into Nigeria dropped by 2.4 per cent to $1.54 billion in second quarter of the year compared with $1.57 billion in first quarter 2022. The NBS report showed that decline in foreign portfolio investment by 21 per cent to $757.32 million and five per cent decline in foreign direct investment to $147.16 million outweighed the 37 per cent increase in other investments; which stood at $630.87 million.

The report however showed that on a year-on-year basis, capital importation rose by 75.3 per cent, primarily driven by a low statistical base effect from the corresponding period of 2021.

“We believe the persistent slowdown in capital importation reflects foreign investors’ lacklustre interest in the country given uninspiring macro narrative, relatively lower yields on fixed income instruments and OMO bills compared to historical trends and  lingering forex liquidity constraints,” Cordros Capital stated.

Provisional data from the Central Bank of Nigeria (CBN)’s monthly economic report had shown that Federal Government’s retained revenue declined by 7.2 per cent to N387.93 billion in May from N417.96 billion in April, primarily driven by a 11.8 per cent shortfall in inflow from the federation account due to the lower net oil and gas revenue. At the same time, aggregate expenditure declined by 14 per cent to N912.18 billion in May, this year compared with N1.06 trillion the previous month, due to 3.4 per cent and 46.8 per cent decline in recurrent and capital expenditure, respectively.

The naira had depreciated at the official market at the weekend as intense speculation continued to take advantage of the widening gap between the official and parallel rates.

The naira depreciated by 0.3 per cent to N431.50 per dollar at the official Investors and Exporters (I & E) window of the Central Bank of Nigeria (CBN). At the parallel market, the naira closed at N700 per dollar.

Market analysts had said the premium of about N269 per unit between the official and parallel rates was fueling more speculative trading at the foreign exchange (forex) market.

At the I & E window, total turnover rose by 2.9 per cent to $655.74 million, with trades consummated within the N417 and N447.48 per dollar band.

The naira also depreciated in most forwards transactions with the one-month, three-month and six-month forwards dropping by 1.3 per cent, 0.9 per cent and 0.3 per cent. The one-year forward contract, however, appreciated by 0.2 per cent. The one-month, three-month, six-month and one-year contracts closed weekend at N434.44 per dollar, N440.19 per dollar, N452.58 per dollar and N477.74 per dollar.

Market analysts have maintained that the $2.5 billion estimated foreign exchange demand backlog, rising dollar demand by manufacturers and retail end users are largely responsible for the naira crisis.

Global Chief Economist at Renaissance Capital (RenCap), Charles Robertson, said Nigeria is in a difficult position and need to increase its dollar earnings and other revenue to support the economy.

He said Nigeria should hike taxes, raise more revenue as the country’s position is very tough that has not been seen in three decades.

“Things are not looking pretty good for Nigeria and other emerging markets. Oil production in Nigeria has fallen so badly in the last few years and oil prices is also about falling more. We are going to see disinflationary policies coming because we are approaching recession” Robertson said.

Analysts at Cordros Capital have insisted that the apex bank might not be able to sustain its current forex rate management in the long-term.

According to analysts, although the CBN has enough liquidity to support the forex market over the short term, foreign inflows are paramount for sustained forex liquidity over the medium term.

“Considering the tepid accretion to the reserves given the low crude oil production level and elevated premium motor spirit (PMS) under-recovery costs, foreign portfolio investments (FPIs) that historically supported supply levels in the I & E window will be needed to sustain forex liquidity levels in the medium to long term,” Cordros Capital stated.

They said further adjustments in the naira-dollar peg closer to its fair value and flexibility in the exchange rate would be significant in attracting foreign inflows back to the market.

Natural gas provides a cost-effective and more-reliable alternative energy source to power Nigeria’s industrial rediscovery and meet its vast energy need.

In its latest report on Nigeria’s energy outlook, Axxela noted the vast potential of Nigeria as Africa’s energy giant, ranking second to Algeria in natural gas by almost 50 trillion cubic feet of gas deposits.

According to the report, most of Africa’s bitumen and lignite reserves are found in Nigeria. In its mix of conventional energy reserves, Nigeria is unmatched by any other country on the African continent. It is not surprising therefore that energy export is the mainstay of the Nigerian economy.

“The Nigerian energy sector plays a pivotal role in attempts to achieve sustainable development, balancing economic and social developments with environmental protection.

Read Also; Reps query payment of $33m monthly on power purchase agreement, $10 million on gas supply

“Energy is also central to the economy because it is a critical resource for industrial processes and operations. From power generation to heat processing, air conditioning and transportation, there is a high requirement for reliable energy options that can efficiently power the industrial sector in West Africa, spurring rapid growth and boosting the economy. Sadly, traditional energy sources like diesel are increasingly becoming undependable, with the challenges of storage, pilfering and sudden price changes causing businesses to suffer greatly.

“Only in 2022, diesel prices witnessed an increase of over 100 per centwithin the first quarter of the year. Recent data shared by the Manufacturers Association of Nigeria stated that before these price changes, energy costs accounted for 40 per cent of operational expenses incurred in running a factory in Nigeria. Now, the increased prices of diesel could put many manufacturers out of business, and those who will remain will no doubt be forced to cut costs dramatically and increase the prices of end products,” the report stated.

Axxela pointed out that amidst the great energy challenges, there is also an exciting opportunity emerging in the energy sector,l with natural gas as an alternative. According  to the group, fossil energy source has the potential to completely transform how energy is utilised in Nigeria and the African region as a whole!

“Natural gas is an alternative energy source that is cost-effective, more efficient in power generation than other fossil fuels, and most importantly has a reliable distribution system within the country,” Axxela stated.

Family Homes Funds Limited (FHFL) has opened application for provisional subscription to its N20 billion Sukuk as parties signed off the final documents on the issuance.

The net proceeds of the Sukuk issuance will be used to finance development of affordable homes for low income households.

FHFL, through its special purpose vehicle, Family Homes Sukuk Issuance Programme Plc (FHSIP) is issuing a N20 billion Series II Ijarah Sukuk, to complete its N30 billion Sukuk issuance programme. In 2021, FHFL had accessed the market through its N10 billion seven-year 13 per cent Series 1 Ijara Lease Sukuk due 2028. The debut issue recorded an oversubscription of more than twice of the issue value.

The N20 billion issuance is the second-ever certified corporate Sukuk in Nigeria. Application list for the offer will close on September 5 2022.

The offer had been reviewed and certified by the Central Bank of Nigeria’s Financial Regulation Advisory Council of Experts (FRACE) and also duly registered with the Securities & Exchange Commission (SEC).

Read Also: ‘PFAs’ N118.31b investments in Sukuk Bond financing road projects’

FHFL  is offering a seven-year fixed rate Sukuk Al-Ijarah to discerning investors through a book-building, pre-order system. Minimum subscription to the issue  is  N10 million and thereafter in multiples of N1 million. The Sukuk will thereafter be listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange.

The rental rate is provisionally fixed between 13.50 per cent and 14.00 per cent with rental distribution on a semi-annual basis. The Sukuk will be repaid on the basis of amortisation of the principal repayment over the tenor of the Ijarah.

Family Homes Sukuk Issuance Programme is rated BBB+ by Global Credit Rating (GCR) and Bbb by Agusto & Co. The Sukuk issuance is rated on its own BBB+ by GCR and A+ by Agusto & Co.

Rental distribution will be semi-annually in arrears over the life of the Ijarah while repayment will be by the way of amortised principal repayment over the life of the Ijarah.

FHFL is a quasi-government entity owned by the Federal Government of Nigeria, through the Federal Ministry of Finance and the Nigeria Sovereign Investment Authority (NSIA). It was established to impact the quality of lives of Nigerians, particularly the poor and vulnerable.

FHFL’s fund raising is to support its focus on providing decent home as a pivot towards necessary comfort and security for citizens on low income. FHFL believes there is a need to bridge the infrastructural deficit of decent homes for Nigerians estimated to be at 22 million, particularly for those on low income.

As a social housing initiative, promoted by the government as part of its social intervention; FHFL plans to invest up to N1.3 trillion in the development of 500,000 affordable homes nationwide over the long-term. In the process, this is also expected to create up to 1.5 million jobs whilst enabling home ownership.

Family Homes Funds initiative is in line with the New Urban Agenda and the United Nations Sustainable Development Goal of promoting sustainable cities and communities, reducing poverty, promoting good health and well-being, economic growth, and reducing inequalities – Sustainable Goal No 11.

FBN Holdings Plc is leveraging its group structure to strengthen its portfolio as a one-stop financial services group.

In a renewed push for closer integration of services as a one-point finance group, FBN Holdings has partnered with its former subsidiary- FBN Insurance, to provide extensive insurance products and services within the group.

FBN Holdings- the holding company for First Bank of Nigeria (FBN) and its former subsidiaries, had divested from its insurance business, FBN Insurance Business Limited. It sold its shares to long-time partner; Sanlam Emerging Markets, which had previously held 35 per cent equity stake in FBN Insurance Limited.

In a new introductory marketing campaign going round its customers, FBN said it has chosen FBNInsurance as its bancassurance partner.

“We are pleased to introduce to you our Bancassurance partner, FBNInsurance; a member of the Sanlam Group with presence in over 30 countries of the world.

“Bancassurance provides you with various insurance policies that are suitable for you now and in the future; and with FBNInsurance, you can be assured of a secured tomorrow with policies spanning health, education, annuity, retirement, and much more,” FBN stated.

Sanlam Group has been associated with FBN Insurance since it was established in 2010. Sanlam with over 100 years experience and expertise in Insurance, asset management, wealth management and investments is one of the leading Insurance companies in Africa.

FBN Insurance was founded as a life insurer in 2010 with a vision to be Nigeria’s first choice in risk underwriting, wealth preservation and financial security. It has since grown to become one of the leading insurance companies in Nigeria with a subsidiary that undertakes general insurance business offering a broad range of investment and risk underwriting products.

Read Also: FBN Holdings shareholders to get N12.6b dividend

The partnership is expected to broaden FBN’s portfolio beyond the Nigerian market. In recent report by The Nation,  Sanlam was ranked atop the top five insurance companies in Africa.

According to Atlas Magazine Top 100 Insurance Companies in Africa 2019, top five insurance companies in Africa included Sanlam of South Africa (SA) ranking number one; Old Mutual Life of SA ranking number two; Liberty Group of SA ranking number three; Santam of SA as number four; and MML Group Limited of SA as number five.

Following as number six was Wafa Assurance of Morrocco; The Hollard Insurance as number seven; Old Mutual Life as number eight; Guardrisk Insurance as number nine; and Royale Morocaine d’Assurance of Morrocco as number 10.

The companies were ranked based on their and 2019 and 2018 turnover, class of business, and local currency vis-à-vis the United States Dollar.

Meanwhile, only three other Nigerian firms were on the list raking 24, 46 and 50. They were Leadway Assurance as number 24; AIICO Insurance as number 46; and Custodian and Allied as number 50 in Africa.

In a document on Africa’s insurance market by Mckinsey and Company, Africa is one of the world’s hot regions for insurance.

“Steady economic growth in most countries combined with a largely underdeveloped insurance sector have positioned the continent as the second-fastest-growing region for insurance globally after Latin America.

“Prior to the impact of COVID-19, the insurance market was expected to grow at compound annual growth rates (CAGRs) of 7 percent per annum between 2020 and 2025, nearly twice as fast as North America, over three times that of Europe, and better than Asia’s six per cent,” Mckinsey and Company stated.

FBN Holdings recorded appreciable growths across key performance indicators in the first half with net profit rising by 48 per cent to N56.5 billion within the six-month period.

Key extracts of the interim report and accounts of FBN Holdings for the first half ended June 30, 2022 released at the weekend showed that gross earnings rose by  22.4 per cent to N359.2 billion in first half 2022 as against N293.4 billion recorded in the comparable period of 2021. Profit before tax  grew by 45.3 per cent to N65.7 billion in 2022 as against N45.2 billion in 2021. After taxes, net profit stood at N56.5 billion in first half 2022 against N38.1 billion in first half 2021, representing an increase of 48 per cent.

Group Managing Director, FBN Holdings, Mr Nnamdi Okonkwo, said that the company’s performance demonstrated resilient performance despite the challenging operating environment.

He noted that the company has continued to see good progress across its performance metrics, which remain in line with its focus on driving sustainable growth.

“The group remains committed in its transformation drive, which has resulted in stronger balance sheet and better asset quality with non-performing loans closing at 5.4 per cent at first half 2022.

“Similarly, risk management capability remains robust across the group supporting the drive for enhanced earnings for sustainable capital accretion. “Our strategic intent remains unchanged in optimising opportunities that drive growth in revenue, profitability, capital accretion and overall operational efficiency that delivers sustainable value to our stakeholders,” Okonkwo said.

Chief Executive Officer, FirstBank of Nigeria, Dr Adesola Adeduntan, said the group’s flagship commercial banking business remained focus on executing key initiatives to position it for improved profitability in 2022.

“Our half-year results further reinforced our drive toward our ‘Quantum Profitability Leap’ agenda. Our gross earnings are up 22.6 per cent year-on-year to N338.5 billion and net interest income up 49.3 per cent year-on-year to N152.9 billion.

“On the back of the impressive growth recorded in our top line, our profit before tax recorded a strong growth of 40 per cent year-on-year to N60 billion.

“Profit after tax also grew by 42.3 per cent year-on-year to N53.3 billion as the bank continues to reap the dividends of the successful restructuring of its balance sheet and revamping of our risk management architecture.

“We continue to record progress in driving down our non-performing loan ratio which stands at 5.4 per cent at the end of first half and we are on target to bring it within regulatory limit of five per cent by end of 2022,’’ Adeduntan said.

He said the momentum of generating impressive returns from the quality risk assets portfolio already created would be sustained.

He assured that the group would continue to strengthen its dominant digital banking capabilities in providing best-in-class services to all segments of its customers across all its footprints in sub-Sahara Africa and beyond.

The capital market has enough depth to bridge the country’s infrastructure deficit and provide the government the much-needed breather to focus on other issues of national development.

Director- General, Securities and Exchange Commission (SEC), Mr. Lamido called on relevant stakeholders to co-operate and collectively champion the of the capital market as pivot bridging the infrastructure gap in the country.

He spoke during a meeting with the new executives of the Chartered Institute of Stockbrokers in Abuja.

Yuguda said the capital market is capable of attracting finance that would assist the nation bridge the current infrastructure deficiency.

“We have huge infrastructural deficit in the country like insufficient power, lack of good roads among others. We want our country to have good infrastructure and I know this is possible with the help of the capital market and other stakeholders.

“It requires adequate planning and financing and we can achieve it as a nation. The capital market through the private sector can fund road construction while government focuses on other issues,” Yuguda said.

He pointed out that for the capital market to attain full potential, all stakeholders need to ensure they carry out their functions with integrity and fairness in a bid to restore investor confidence.

He praised the new leadership of CIS and assured them of the support of the Management of the Commission for a successful tenure.

He acknowledged CIS as a key partner in the Commission’s regulation of the market and assured that the SEC would continue to provide the needed support.

“On behalf of the board and staff. We will give you all possible co-operation you desire to make your job easy.

‘’We are here to support this market and make it the market we all desire,” Yuguda said.

He added that derivatives trading has commenced for people who want to manage their risk adding that the SEC is working to increase the literacy of Nigerians so they can take better decisions.

“The future for this country is bright and we have the young population to push it. We can have a much better standard of living than we have now and we hope you will continue to give a lot to the market.

“We are committed to any initiative that will further spur the growth of the capital market. We also have a review of the ISA Bill pending at the National Assembly and that bill has a lot that will revitalise this market,” Yuguda said.

President, CIS, Mr. Oluwole Adeosun commended the SEC for the relationship that exists between the Commission and the Institute and thanked the management for always supporting the CIS.

“Thank you always because you have embraced the institute and made it clear that you desire a very harmonious relationship and we are happy about it.

“You have shown this in your actions since you came into office and we appreciate you for all your efforts  and we pray that investors benefit greatly from their investments in the Capital market. Thank you for all your support to the CIS Bill,” Adeosun said.

Former President of CIS, Mr. Olatunde Amolegbe thanked the DG for the efforts the management has been making to support the CIS, adding that the institute has been able to function effectively due to the support of the SEC.

He assured that the CIS Bill which is  current before the National Assembly will get to the final ending and assented to, adding that the  bill will stand as a testimony of the quality of leadership that the SEC has  brought to this market.

“That bill will usher in a fresh hope for the capital market.

Thank you very much for making my tenure as President one that can be classified as a success. Without your co-operation we would not have been able to push a lot of things we did, we hope it will get stronger,”  Amolegbe said.

MFS Africa, Africa’s largest digital payments network, has appointed Christian Bwakira as Chief Executive Officer of its recently acquired subsidiary Global Technology Partners (GTP). GTP is the number one processor of prepaid cards in Africa with over 80 banks – including UBA, Ecobank, BIA, Stanbic, Coris, NSIA and Zenith Bank – using its platform.

Bwakira joins GTP from Ingenico. As Managing Director, Middle East & Africa, he oversaw the strategic development and fast growth of the company’s regional business with P&L accountability for the Middle East & Africa cluster comprised of more than 70 countries. Previously, he was Vice President & Area Business Head East Africa at Mastercard Inc. with responsibility for leading all regional business activities across the region. Christian has also been Country Manager at Visa Inc. Sub Sahara Africa covering several markets including the Indian Ocean Islands, Lusophone countries, Rwanda, Ethiopia, and Namibia, among others.

Dare Okoudjou, founder and CEO of MFS Africa, said: “I am delighted to welcome Christian Bwakira as CEO of our subsidiary Global Technology Partners. He brings a wealth of relevant expertise across many facets of the payment industry and will be instrumental in delivering on our ambitious growth strategy for GTP. With his leadership, we aim to further expand GTP’s market dominance in prepaid card processing across Africa.”

On his appointment,  Bwakira stated: “When Dare [Okoudjou] explained the vision and impressive growth intentions for GTP I had no hesitation in deciding to sign up. From expanding its geographical network across Africa, onboarding new clients to service, and adding new features and functionalities to our processing platform, we are poised to further extend our value propositions of last-mile connectivity and card connectivity across Africa.”

MFS Africa has also made three additional senior executives appointments including appointing Julian Adkins as Group Chief Financial Officer. He joins MFS Africa, from Millicom (Tigo), where he was the CFO of the Africa region, responsible for building sustainable businesses across the region. Prior to that, he held a number of international finance roles in various sectors.

Also, Fade Ayorinde has been appointed Chief Financial Officer at MFS Africa’s Nigerian super-agent network subsidiary Baxi. She joins from mobile payment company Paga, where she held several roles, including CFO for Paga Nigeria. She has 20 years of experience in various executive finance positions in the UK, US and Nigeria, across business sectors. Lauren McDougall, a qualified chartered accountant, has joined MFS Africa as Head of Internal Audit. She has over 17 years auditing experience in the financial services sector for banks, private equity and fintech companies.