The Nation Newspaper

Tag: capital

  • Kogi varsity students protest three months’ closure

    Kogi varsity students protest three months’ closure

    The students of the Kogi State University, Anyigba yesterday brought commercial activities in the state Capital, Lokoja to a standstill as they embarked on a peaceful protest over the three month-old strike by lecturers of the school.

    Members of the institution’s chapter of the Academic Staff Union of Universities (ASUU) had embarked on the strike over alleged unresolved salary issues with the state government.

    The students in their numbers occupied the popular Ganaja Junction as early as 8.30am, paralysing business activities in parts of Lokoja.

    They demanded for immediate resolution of the impasse between ASUU and the state government and ASUU, saying that their concern remains the immediate reopening of the university.

    They lamented that they have over stayed at home, saying that those who are expected to graduate will miss the annual NYSC programmes.

    In apparent dissatisfaction with the leadership of the student union body interventions, the students said they will not shift the ground, chanting anti-establishment songs, just as they demanded the immediate resolution of the logjam.

    “We want immediate resolution to the lingering crisis. We have over stayed at home. When it started, we thought it would be addressed immediately. Now we have spent three months at home while all other institutions in neighbouring states are graduating”, they stated.

    Efforts by the National President of the National Association of Nigeria Students whose name was not immediately made available to journalists was turned down by the students, as they alleged that the union leaders may been settled by the government.

    Similarly the angry mobs also manhandled the President of SUG who was trying to address the crowd, stating that his in actions has caused the students “three months at home”.

    Also, efforts by the State Commissioner of Police (CP) Yakubu Usman, the Director of State Security Service (SSS) and state Commandant of the Nigeria Security and Civil Defence Corps (NSCDC) to pacify the students were rebuffed, as they insisted that they will only dialogue Governor Yahaya Bello.

    However, they later soft peddered, as they listened to the SSS boss, but insisted that the university must be reopened before they will agree to go back to Anyingba.

    Travelers passing through the state capital were worse off for it, as those caught up in the protest were stranded, as the angry students barricaded roads leading the Eastern part of the stat and the South East and South South parts of the country.

    Efforts to speak with government officials at the scene proved abortive as they refused to talk, just as the students refused to dialogue with them.

    It would recalled that the institution’s chapter of ASUU have been at loggerheads with the state government over unpaid salary and eventually embarked on the strike.

    The state government said it has paid  four months salary arrears to the striking workers but ASUU insisted that the it offset all before it can return to work.

    The state Commissioner for Information, Mr. Mohammed Awwal at a press conference however appealed to the striking lecturers to return to the classrooms.

    He appealed with them to return to the classrooms for the sake of the students.

    “The ASUU strike affects not just the psyche of the students, but also causes further stress to the parents and ultimately tarnishes the reputation of our great state. ASUU is reminded that they were the first to be paid even when government could access only 40 percent of the bailout funds requested”, he stated.

     

  • Lagos is Africa’s Jazz capital, says Ambode

    Lagos is Africa’s Jazz capital, says Ambode

    The Lagos Sate Governor, Akinwunmi Ambode has said that his administration is committed to positioning the State as a destination with rich entertainment content.

    Speaking at the Lagos International Jazz Concert held at the Lagos House, Alausa, Ikeja to commemorate the 2016 International Jazz Day which attracted dignitaries as well as local and international jazz artistes, Ambode said the event was part of efforts to join the rest of the world, particularly the United Nations Educational, Scientific and Cultural Organization (UNESCO) to celebrate the day.

    “This musical show is a continuation of our promise to Lagosians that we will use tourism, hospitality, entertainment and the arts as well as sports to create jobs and opportunities for our people and to position Lagos State as a destination with rich entertainment content,” the governor said.

    According to Ambode, the Lagos Jazz Concert took its cue from the success of One Lagos Fiesta, held on the eve of New Year’s Day, noting that there were at least four different jazz concerts across Lagos on Friday evening with artistes from all over the world, including several Grammy award-winners who performed.

    Governor Ambode expressed optimism that next year’s concert which will herald the Lagos @ 50 celebrations, coming up May 27, 2017, would have successfully placed the State as a destination of choice and one deserving of the Jazz Capital City appellation.

    Among dignitaries who graced the concert include former Governor of Lagos State, Asiwaju Bola Ahmed Tinubu, his wife, Senator Oluremi Tinubu, Oba of Lagos, Rilwan Akiolu I, Chief Olusegun Osoba, Senator Gbenga Ashafa, Senator Ganiyu Solomon, Chief Femi Adeniyi Williams, Rtd Justice of Supreme Court, George Oguntade, among others.

    Artistes who lit the stage with scintillating jazz performances included former governor of Cross River State, Donald Duke, award winning Afrobeat musician, Lagbaja, veteran jazz diva, Yinka Davies, Jimi Solanke, Dare Art Alade, two time Grammy award winner, Lekan Babalola, Grammy award winner, Kirk Whalum and other local and foreign jazz artistes.

  • ‘Dearth of capital crippling businesses’

    Businesses in Africa are being stifled by lack of capital, the United Kingdom’s development finance institution (CDC) has  said.

    It noted that though many African businesses have great potential to thrive, create employment and impact on their countries’development, they are being held back by their  inability to attract long-term capital.

    According to its Regional Director for Africa, Imoni Akpofure, who spoke at an investment workshop for reporters in Lagos, businesses become distress as  commercial investors perceive the region as unstable politically.

    She said as part of the institution’s core mandate to bridge the financing gap, CDC has committed huge capital investments in priority sectors of agribusiness, construction, education, financial institutions, health infrastructure and manufacturing to propel sustainable economic growth as well as significant job creation.

    “We apply high-quality commercial investment processes because if the businesses we invest in are not commercially viable with strong financial outcomes, the jobs they create today will be gone tomorrow. We also understand that it takes more than money to build a great business, so we invest our time and expertise  to help the businesses we invest in to improve their management of environmental matters, relations with their workforce and stakeholders and with society at large,” she said.

    On the import of private equity investment to business growth, the Investment Manager, Mr. Gozie Chigbue, said partnership with business owners when investing ensures judicious channeling of resources.

    He said investors should subject their targets to certain prerequisites, especially long-term viability before committing capital. According to him, the seven phases of investment are sourcing, screening, due diligence, financial recommendation, closing and monitoring.

    “You start by funding the right company and finding the right opportunities. You have to make sure you understand the market intently and spend time to talk to the right people involved to avoid uniformed investment in fragile sectors. For us at CDC, the point of investing is not just to make profit but to also create jobs.

    “We invest both directly into businesses and indirectly through private equity to fund managers who we carefully asses the redevelopment impact of their proposals. We take a flexible approach; taking care to match the investment instrument to the specific needs of each business. We are also able to provide a mix of equity, loans and mezzanine finance,” Gozie said.

    CDC since 1948 has invested across spectrums of over 100 industries and sectors in Nigeria such as Azura Power, Indorama Eleme Petrochemicals Company, ECOM Agroindustrials, Swift Networks and Synergy Fund, according to the Environmental and Social Responsibility Director, Mr. Mark Eckstein. He emphasized that beyond making profit, CDC was committed to establishing strong working relationship with host communities of partners. He said: “for instance, Petrochemical and Fertilizer industry, Indorama has since, with the backing of CDC and others made significant improvements including increasing production. Some of the greatest strides have been made in raising environmental and social standards which has been critical in maintaining good relations with the local community in the Niger Delta.”

  • Skye Bank to raise new capital in first quarter 2016

    Skye Bank to raise new capital in first quarter 2016

    Skye Bank Plc has started arrangements to raise additional equity funds within the next two and half months as the commercial bank seeks to beef up its capital base and improve its working capital.

    Group managing director, Skye Bank, Mr. Timothy Oguntayo, who disclosed this yesterday at an interactive session with top stockbrokers in Lagos, said the bank had entered into discussions with some of its key shareholders and strategic potential investors for fresh capital injection.

    He expressed optimism that the new capital raising exercise could be completed during the first quarter.

    He however noted that the bank’s capital adequacy ratio of 15.87 per cent, out of which 12.4 per cent is covered by common equity, was already in compliance with Basel 11 provisions.

    He said the bank is shifting its business focus to retail and commercial banking as it enters a new growth phase after the acquisition and integration of erstwhile Mainstreet Bank Limited.

    Oguntayo said retail banking as the bank’s new business focus would be pursued in 2016 for more traction adding that the small and medium enterprises (SMEs), small businesses and priority banking would be strengthened.

    He said the bank has set for itself in the medium to long term, strategies to achieve growth for the good of shareholders and other stakeholder.

    He recalled that in 2015 the board of the bank had appointed four new executive directors to the board; concluded the design of a three-year strategic plan from 2016-2018; achieved certification by the British Standard Institution on IT Service management, business continuity and IT management for the integrity of its operations as part of efforts to strengthen its operations.

    He said the bank had commenced structured capacity building programmes for the SME segment, working with the International Finance Corporation (IFC) on the business model and risk management framework and product innovation for its retail business.

    According to him, other measures taken to strengthen the retail banking business of the bank included retooling the locations acquired from the legacy Mainstreet Bank for the mobilization of cheap low cost funds, enhancement of the electronic channels to support the branch network and intensification of acquisition of customers across the retail segment.

    Oguntayo said the bank had been working on continuous improvement in structure, practices and resource deployment in risk management, adoption of enterprise-wide risk management approach, board oversight on risk portfolio to ensure diversification of risks, as well as vibrant and proactive credit monitoring framework.

  • N100m capital base: CBN, Finance Houses hold emergency meeting

    N100m capital base: CBN, Finance Houses hold emergency meeting

    The Central Bank of Nigeria (CBN) yesterday met with finance houses operators to enable both parties discuss the way forward for the industry.

    The emergency meeting, it was learnt, followed last week’s expiration of the December 31 deadline given by the regulator to operators to either meet the new N100 million capital base for the subsector or suspend operations. The initial September 30, last year deadline was shifted to allow more operators comply.

    The Nation gathered that with tight liquidity in the market, many operators are yet to secure funds to continue their business and this may lead to the exit of several fringe players.

    A source at the Financial Houses Association of Nigeria (FHAN), an umbrella body for the sector, said many of the operators had not secured the funds required to stay afloat.

    “The N100 million minimum capital base looks small, but surprisingly, not many operators have been able to get it. I see many of them closing shop after the deadline lapses,” the source said.

    CBN Director, Other Financial Institutions Supervision Department, Ahmad Abdullahi had instructed that operators that fail to meet the deadline will be forced to close shop, or move into new business requiring low capital base.

    He said the subsector also operates on a ratio of non-performing loans to total loans now pegged at maximum of 10 per cent. He said Finance Houses shall consult at least two licensed credit bureaux to obtain credit information on borrowers.

    He said the finance companies’ sub-sector was envisioned to operate at the middle tier of the financial system, to cater for the financial needs of the Micro, Small and Medium Enterprises (MSMEs), adding that they were also expected to leverage on the resources from the banking system among other sources of funding.

    He explained that the CBN had in a bid to sanitise the sub-sector, revoked the licences of 208 finance companies and cancelled the approvals-in-principle of 462 others due to the distress in the sub-sector.

    By 2012, there were 116 FCs in the records of the CBN; 51 licences were revoked by the CBN in September, 2012 thus leaving a balance of 65 FCs with valid licences.

    “The idea is to have finance companies that are strong and virile to perform the functions they were set up to per form. The objective of shareholders in the operation of finance companies is to make profit, but for the CBN, it is to have stable and strong finance companies,” he said.

    Abdullahi said the CBN will continue to sanction finance companies that do not have the licences, but are in operation as such would ensure that the subsector is run efficiently to the benefit of the economy.

    He advised finance companies to maintain a database of their customers and generate quarterly risk management reports to be submitted to the CBN. “Finance companies shall be permitted to participate in accessing and disbursing funds to SMEs via relevant vehicles/ intervention funds set up by the CBN, the Federal/State Governments and other relevant bodies. The CBN shall continue to provide support towards capacity building in the Finance Company sub-sector,” he said.

  • Wema Bank’s Capital Adequacy Ratio strong, says management

    Wema Bank’s Capital Adequacy Ratio strong, says management

    Wema Bank Plc yesterday said its Capital Adequacy Ratio (CAR) is 18.6 per cent based on September 2015 results, which is significantly higher than the 10 per cent required by the Central Bank of Nigeria (CBN) for regional and national bank.

    The CAR is the ratio of a bank’s capital to its risk. The CAR for banks’ with offshore subsidiaries is 15 per cent minimum requirement (which rose to 16 per cent by March 1, 2015 for systemically important banks). The CAR for banks operating only in Nigeria is 10 per cent.

    In a statement, the lender said it has existing shareholders funds of N44 billion; significantly higher than the N25 billion shareholders funds required for national banks, prompting it to apply for national license, which has been approved by the CBN.

    The lender said it is not part of the banks required to re-capitalise by the CBN, otherwise, the apex bank would not have granted it national license

    “The bank’s decision to go national is largely for us to be able to take advantage of any opportunities where they exist. Our approach to the implementation of a national banking expansion will be a phased roll-out of branches,” the statement said.

    It added: “We will quickly open branches in locations where we already have existing infrastructure and captive business to ensure that we take immediate advantage of the latent business opportunities in those locations. Subsequently, we will take a cautious approach to expansion and only deploy resources to areas that have been assessed as commercially viable.”

    The statement further said: “Going by the encouraging and growing level of electronic banking penetration in the country, our new branch builds will be very cost effective as the space required to serve will continue to get relatively smaller as it obtains today in more advanced financial systems.”

    It added: “The bank requires additional capital largely to grow its business in the new year and to also provide additional buffer to cushion against economic shocks.

  • Capital market firms fret over post-recapitalisation audit

    Some capital market firms have started preliminary internal audit, re-evaluation of assets and documentations ahead of the Securities and Exchange Commission’s (SEC’s) comprehensive post-recapitalisation audit of the market.

    On October 2, SEC released a provisional list of 972 firms that have been cleared to operate in the  capital market after if drew the curtain on a two-year recapitalisation exercise. The list included 437 capital market operators that were cleared to have met the new minimum capital requirements by the September 30, this year’s deadline, nine other operators that were in the process of merging into four companies, six self regulatory organisations and a long list of 525 capital market consultants and experts.

    The Nation had reported that SEC was planning to launch comprehensive investigative audits of capital market firms as part of post-recapitalisation process with a view to ascertaining the veracity of assets of the firms.

    SEC had indicated that the October 2, this year list was a provisional list and that the final list of registered and certified capital market operators would be made public after the verification exercise.

    A source had said  the Commission plans to conduct stress and impairment tests on the assets filed  by the firms and to further confirm the authenticity of their claims.

    The source said top on the list of accounting firms being considered by the Commission were KPMG and Akintola Williams Deloitte adding that the Commission decided on the investigative audits to avoid the repeat of bubble assets that undermined the previous recapitalisation exercise, especially in the banking and insurance sectors.

    Industry sources yesterday said several firms were undertaking preliminary review of their assets valuation with a view to ensuring that the overall calculation tallies with the requirements for their respective functions.

    Many firms that had used equity portfolios and other related assets were said to be sourcing for additional assets to shore up and bridge possible gap that might have been created due to depreciation in the valuation of the assets. The equity market has declined by an average of more than 4.4 per cent since the September 30 deadline for the recapitalisation.

    A top management executive at a broker-dealer firm said the company was making efforts to ensure that it has what the executive described as a buffer zone to make up for any possible demand for additional capital due to accounting difference that may arise from the audit.

    The source noted that while the firm had filed appropriate and factual information, it cannot be ruled out that auditors may have differing view and there may be need to harmonise such positions either way.

    million, representing an increase of 400 per cent. Minimum capital base for dealer increased by 233 per cent from N30 million to N100 million.

    Also, issuing houses, which facilitate new issues in the primary market, will now be required to have minimum capital base of N200 million as against the current capital base of N150 million. The capital requirement for underwriter also doubled from N100 million to N200 million. Trustees, rating agencies and portfolio and fund managers had their minimum capital base increased by 650 per cent each from N40 million, N20 million and N20 million to N300 million, N150 million and N150 million respectively. A  Registrar will now have a minimum capital base of N150 million as against the current requirement of N50 million. While the minimum capital base for corporate investment adviser remained unchanged at N5 million, individual investment advisers will have to increase their capital base by 300 per cent from N500,000 to N2 million.

  • Stockbrokers woo entrepreneurs on capital market development

    Stockbrokers woo entrepreneurs on capital market development

    Stockbrokers have started wooing indigenous entrepreneurs to the capital market as part of efforts to deepen the  market and enhance its developmental roles in the economy.

    Stockbrokers would be using the platform of the yearly conference of the Chartered Institute of Stockbrokers (CIS), scheduled for October 29 and 30, to discuss  key strategies and ways of enhancing the use of capital market by Nigerian entrepreneurs.

    Addressing capital market reporters on the forthcoming conference, Chairman, Programmes Committee of CIS, Mr Akeem Oyewale, said the Institute has chosen the theme: Entrepreneurship and the Capital market: Fast-tracking a new economy for Africa, in demonstration of the importance of entrepreneurs in the quest to boost activities and reposition the market for global competitiveness.

    According to him, no capital market can thrive without the participation of entrepreneurs who have the capacity to bring their companies for listing on the stock exchanges.

    “It has been proven that our annual conference is a platform for articulating issues that would help the government in its policy planning and implementation. Last year’s conference focused on the entertainment industry and many of the key players in that sector have been utilising the market facilities to expand their businesses.

    “Capital Market is not just about listing alone, there are other windows such as the use of debt instruments to raise fund. We are focusing on the entrepreneurs this year as part of our input towards strengthening the African capital markets. We want to promote entrepreneurs because they occupy a pivotal role in the development of a capital market,” Oyewale said.

    Chairman, Annual Conference Sub-Committee, Mr Wale Agbeyangi, explained that participants for the conference had been carefully selected with emphasis on those who are knowledgeable about issues of capital market development.

    Managing Director, Fortress Capital, Mr Yomi Adeyemi, noted that Africa has many entrepreneurs that can compete globally.

     

     

    “We need to promote our entrepreneurs. As the present administration tries to tackle social problems including unemployment, the roles of entrepreneurs become more glaring. We must encourage our entrepreneurs to come and create more businesses and employ people,” Adeyemi said.

    The conference would be flag-off by the Vice President, Federal Republic of Nigeria, Professor YemiOsinbajo. Other speakers included Mr Akinwunmi Ambode, Executive Governor, Lagos State, Mr Mounir Gwarzo, Director General, Securities & Exchange Commission (SEC), Mr Oscar Onyema, CEO, Nigerian Stock Exchange (NSE); Mr Tony Elumelu, Chairman, Heirs Holdings; Michael Harris, Head of Research and  kurkish Product, Rencap, Mr Bismark Rewane, CEO, Financial Derivatives Company, Mr Peter Bankole, Director, Enterprise Development Centre, Pan African University; Mr Rasheed Olaoluwa, MD, Bank of Industry (BOI) and Ms. Eme Essien-Lore, Country Manager, IFC among others.

     

  • Zenith Capital appoints Enakele as MD/CEO

    Zenith Capital appoints Enakele as MD/CEO

    Zenith Capital Limited, a leading investment bank, has announced the appointment of Jubril Enakele as its Chief Executive Officer and Managing Director.  In his new role, Mr. Enakele will focus on investment banking, asset management and the securities trading side of the business, as well as oversee a world class team based in Lagos. He will report to the Board of Directors.

    Mr. Enakele has over 15 years of international and local experience across various aspects of banking including Banking Operations, Credit Analysis, Risk Management, Client Coverage, Investment Banking, Corporate Finance and Derivatives across Europe, the Middle East and Africa. He began his career in banking in 2000 in Nigeria, before joining Citibank Nigeria in 2004 and Citibank Global Markets London as a Vice President in 2008. He moved to Standard Bank London in 2010 as aDirector and led their Commodity Derivatives – Energy Sales businessfor West Africa before joining Deutsche Bank AG London in 2011 as the Director for Capital Markets & Treasury Solutions for sub-Saharan Africa (excluding South Africa).

     

     

    During the course of his career, Jubril has been involved in several landmark transactions across sub-Saharan Africa, including raising financing from international capital markets for various African sovereigns such as Nigeria, Ethiopia, Ghana, Zambia, Ivory Coast including raising finance for indigenous corporates and financial institutions in Nigeria and sub-Saharan Africa.

    Mr. Enakele is a graduate of Economics from the University of Calabar, Nigeria. He has a Masters degree in Public Policy from the University College London and attended London Business School and University of Oxford – Said Business School respectively. He is an Associate Member of the Chartered Institute for Securities and Investment, UK (CISI).

    “Announcing the appointment, Zenith Capital Limited’s Chairman, Mr Jim Ovia said: “Choosing a new MD/CEO was not an easy feat but we are confident that Jubril Enakele is the right candidate for this role and exactly what we need to continue down this road to sustainable growth.

    His appointment re-articulates our commitment to delivering value on behalf of all our stakeholders as Jubril brings his extensive experience and stellar track-record to bear for Zenith Capital Limited.”

    Jubril Enakele, Chief Executive Officer, Zenith Capital Limited added: “I am pleased to be part of Zenith Capital’s growth story in Nigeria and immensely proud to be part of the world-class team transforming it into a leading investment banking institution in West Africa, an employer of choice, and a trusted financial advisor and partner to key stakeholders. Our future is bright and I look forward with optimism and anticipation.”

  • 140 capital market operators may lose licences

    No  fewer than 140 capital market operators may be delisted by the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) as regulators draw curtain on the recapitalisation.

    While intense lobby for a further extension of the recapitalisation deadline continues, sources at SEC and NSE  said the capital market regulators would stick to the September 30 deadline.

    SEC’s compliance timetable had indicated that a list of the compliant operators would be published on  October 2. October 1 is a national holiday in commemoration of Nigeria’s Independence Day.

    The sources said nothing has changed in the position of the regulators, noting that SEC,  will draw the final mark on compliance by the close of business today.

    Under the rules, the NSE is required to replicate any regulatory action by SEC, especially revocation of licence and suspension of any operator.

    Preliminary review by SEC indicated that majority of operators have complied with the new minimum capital requirements for their functions. Average compliance level ranged from 70 per cent to 95 per cent across the functions. The final list would be made ready on Friday.

    The Nation’s investigation, however, indicated that no fewer than 140 capital market operators might be delisted for failure to meet the new minimum capital requirements. Most of these operators also fall within the inactive operators.  A new rule on the revocation of dealing licences and expulsion of inactive stockbroking firms came into effect in June this year empowers the NSE to revoke licences of dormant operators.

    A status review by the NSE indicated that some 101 licences might be withdrawn, including some 88 inactive capital market operators.

    SEC had in December 2013 announced major increases in minimum capital requirements for capital market functions under a new minimum capital structure that was initially scheduled to take off by January 1, this year. It, however, extended the deadline to September 30.

    Minimum capital base for broker and dealer was increased by 329 per cent from the existing N70 million to N300 million. Broker, which currently operates with capital base of N40 million, will now be required to have N200 million, representing an increase of 400 per cent. Minimum capital base for dealer increased by 233 per cent from N30 million to N100 million.

    Also, issuing houses, which facilitate new issues in the primary market, will now be required to have minimum capital base of N200 million as against the current capital base of N150 million.

    The capital requirement for underwriter also doubled from N100 million to N200 million. Trustees, rating agencies and portfolio and fund managers had their minimum capital base increased by 650 per cent each from N40 million, N20 million and N20 million to N300 million, N150 million and N150 million. A  Registrar will now have a minimum capital base of N150 million as against the current requirement of N50 million.

    While the minimum capital base for corporate investment adviser remained unchanged at N5 million, individual investment advisers will have to increase their capital base by 300 per cent from N500,000 to N2 million.