Tag: framework

  • CAC seeks framework for regulation of registered entities

    CAC seeks framework for regulation of registered entities

    The Registrar General of the Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji has stressed the need for a reliable framework to regulate the activities of registered entities in the country.

    Magaji gave this hint at a one-day familiarisation session with customers and stakeholders in Abuja, stating that without the regulations the process of having the framework is defeated.

    “I want to  take time here to appreciate your several interventions at various stages on this journey to have in the place a reliable legal framework which we collectively gave our self to regulate the activities of registered entities,” he said. 

    Expatiating, he said, “You will agree with me that without regulation the purpose of having the framework is defeated.  We still have to work together to ensure that issues related to regulation of these entities are seamlessly implemented.

    Read Also: Economy: Subsidy beneficiaries, smugglers fighting back, says Tinubu

    “It is important to exchange ideas on the way forward in enhancing efficient and effective service delivery that satisfies the yearnings and aspirations of all stakeholders.  As we do this, we are also conscious of our commitment to standout as one of the best Companies Registries globally.”

    The CAC boss further assured that the management team has set strategic objectives that will usher in a new relationship that is symbiotic and beneficial to all. 

    Besides, he said the Commission has also initiated the process of reviewing its operational checklist to bring it up to speed with international best practices. 

    This, he stressed, will go a long way in simplifying our processes and also reduce the time cycle for our services and product delivery.

  • SEC mulls regulatory framework on FinTech

    Securities and Exchange Commission (SEC) would soon roll out a regulatory framework for financial technology (FinTech) products in order to protect the general investing public.

    Acting Director-General, Securities and Exchange Commission (SEC), Ms Mary Uduk, said the apex capital market regulator would seek a balance between transition to a technology-driven capital market and protection of investors.

    Uduk  said the Commission is interested in investments that Nigerians are making especially with the advent of digitalisation.

    “The International Organisation of Securities Commissions (IOSCO) is on it and there is a lot on it already all over the world and we can’t be left behind. We are very much interested in some of the most active areas of Fintech innovation like block chain technology, crypto currencies and how they affect investors,” Uduk said.

    She said as regulators of the capital market, it is the responsibility of the SEC to find out how such investments are going on and if they meet set standards because when investors lose money they will come back to the SEC.

    According to her, the capital market needs to create an enabling environment that is attractive enough for Fintechs to innovate as the market should engage actively with the new trend in technology and provide the adequate regulatory framework for proper adoption of suitable technology.

    Uduk recalled that during the last Capital Market Committee meeting in Lagos, the Committee agreed to set up a committee to draw a Fintech adoption roadmap for the capital market.

    She noted the growing influence of Fintechs adding that the capital market needs to take advantage of Fintech offerings in moving forward.

  • CBN: framework’ll be strengthened to check cyber crimes

    With the global cost of cybercrime estimated at over $600 billion in 2017, the Central Bank of Nigeria (CBN) yesterday said it would strengthen its regulatory framework to check cybercrimes on Nigeria’s financial system.

    Deputy Governor, Financial Systems Stability of the CBN Mrs. Aishah Ahmad, made this disclosure during a cyber security conference in Abuja.

    She stated that “whilst a variety of organisations are exposed to cybercrime, the financial sector is particularly vulnerable given its crucial role of financial intermediation in a highly connected global financial system.”

    According to her, while technology is transforming the way financial transactions are being conducted,  she lamented that “the adoption of innovation such as robotics and artificial intelligence and block chains have potentials to disrupt the process.”

    This development, she said. has necessitated the need to further strengthen regulatory framework because of the “attractiveness of globalisation, interconnectivity and financial innovation are being undermined by incidences of cybercrimes.”

    She said the CBN was aware of these threats and has convened the conference to tackle these threats.

    She noted that these series of cybercrimes “have ushered in complex security challenges some of which range from identity and intellectual property theft, email spamming, virus dissemination, sophisticated hacking and theft by digital crime syndicate, all of which have led to a significant rise in cybercrimes.”

    “At the CBN, we are committed to strengthening the regulatory framework for cyber risk, we are encouraging our regulated institutions to build realistic vulnerability testing systems for contingency planning.” she said.

    According to her,  “a recent study by the IMF estimated global annual losses from cyber-attacks may be close to nine per cent of banks’ net income or around $100 billion, and in a severe scenario, where the frequency of attacks are twice as high as currently experienced and with greater contagion, losses could be as high as $350 billion.”

    Also speaking at the event, the Director, Information Technology Department, CBN, Mr John Ayoh said the CBN was putting up strong measures to improve data protection in the banking industry.

    He noted that steps have to be taken to ensure that the CBN is not attacked by cyber criminals and he acknowledged that an attack on the central bank will affect the stability of the financial system.

    According to him, “it will make CBN lose tremendous reputation in the market place. People will start to wonder whether or not they can depend on the CBN, he said.

  • Multichoice: regulatory framework vital for digital migration

    Managing Director, MultiChoice Nigeria, Mr. John Ugbe, has said Nigeria needs  regulatory and legal framework as well as a buy-in from all stakeholders to make a successful transition from analogue switch off.

    Ugbe stated this in a keynote address delivered at the third   Digital Migration Summit, in Lagos. It was organised by Broadcasting Organisation of Nigeria (BON).

    While noting that the country is a late starter on the migration journey, Ugbe said it can learn from the experiences of countries that have achieved digital migration and avoid the mistakes from previous exercises.

    “Using the United Kingdom, Kenya and Rwanda as case studies, one common denominator is that they all opted to make Free-to-Air (FTA) cost-free in each country. Another key lesson learnt is that they all had adequate regulatory and legal framework in place and ensured that there was buy-in from all stakeholders. Everyone had a role to play – from making Set Top Boxes (STBs) affordable and partnering the private sector which brought in investment,” he said.

    Digitisation, he explained, will ensure better transmission quality and make more channels available.  As a result, there will be a need for compelling content.

    “It is crucial to make content as engaging as possible, otherwise we will lose our audience. Compelling content is expensive to achieve as it affects cost of equipment, production and distribution, to mention a few,” he added.

    Along with digital migration, he further explained, will come a more effective use of spectrum, with a move from one analogue channel per frequency to over 20.

    While noting that digital migration offers many benefits, Ugbe said it is also accompanied by challenges.

    “That there will be more channels also means that the already limited advertising revenue will shrink further. Additionally, segment boundaries will blur. The internet already enables anyone to create and distribute user generated content. There is tremendous diversification going on and this will continue in the foreseeable future,” he said.

    To get around the challenges, Ugbe called for light- touch regulations that will ensure lower costs for operators.

  • Expert seeks legal framework  for Executive Orders

    Expert seeks legal framework for Executive Orders

    Mazi Okechukwu Unegbu, lawyer, arbitrator and stockbroker has impressed on the federal government the need to put proper legal framework in place to make the Executive Orders more effective.

    Unegbu said this appeal becomes necessary in view of the federal government avowed commitment towards driving the economy.

    Acting President, Mr. Yemi Osinbajo, had last month signed three executive orders with the potential to significantly change some of the ways government business and operations are conducted in the country.

    The executive orders also stipulate sanctions and punitive measures for violations. The three orders signed by Mr. Osinbajo provide specific instructions on a number of policy issues affecting the ease of doing business in the country, support for local content in public procurement by the federal government, and timely submission of annual budgetary estimates by all government agencies, including companies owned by the Federal Government.

    While scoring the government high for coming up with the idea of the Executive Orders, particularly in the area of Ease of Doing Business in Nigeria, Unegbu said he would rather, “The government should go further by making it a law because if you make it a law, you can make a case in the court of law if there is a breach.”

    Unegbu, while lauding the federal government efforts at addressing the challenges besetting the economy, regretted that foreign direct investment had been declining, a development, he stressed can be mitigated by proper policy initiatives.

    Citing the challenges confronting small businesses, who also doubles as Managing Director/Chief Executive, Maxifund Investments and Securities Plc, observed that: “SMEs are being killed by the day not out of their own making but because those who are in charge of government agencies responsible for SMEs in terms of licensing and what have you, are still doing it as if they are living in a booming economy.

    “In an economy that is in recession, how you manage such things would be to attach what we call a human face to your regulation. What they are doing now is applying the regulation without a human face. For instance, if a business is incorporated with N10million and you now loss about N1million because of the downturn of the economy and now the regulator now say if you don’t bring the N1million they are going to close your shop, that is a wrong way of managing business in an economy.”

  • SEC, others push for new framework for unclaimed dividend management

    SEC, others push for new framework for unclaimed dividend management

    Securities and Exchange Commission (SEC) and other stakeholders in the capital market have called for a review of capital market laws and creation of a framework to enhance the process of dividend payment and management of unclaimed dividends.

    SEC, the apex capital market regulators and other stakeholders including Corporate Affairs Commission (CAC), Institute of Capital Market Registrars (ICMR), Nigerian Stock Exchange and shareholders’ associations among others called for the removal of the 12-year statute of limitation on unclaimed dividends as contained in Section 385 of the Corporate and Allied Matters Act (CAMA) to enable shareholders claim their dividends in perpetuity.

    They also called for the establishment of a trust fund as a body corporate, with a board of trustees, for the administration of unclaimed dividends. The fund will be managed by an independent fund manager, supervised by the board of trustees and regulated by the Commission.

    In separate positions at the public hearing organised by the Senate Committee on Capital Market, stakeholders urged the National Assembly to review existing laws and create the Unclaimed Dividend Trust Fund to address the recurring problem of unclaimed dividend.

    SEC’s position was based on the report of a committee earlier mandated to look at the problem of unclaimed dividend.

    Speaking at the public hearing, Director General, Securities and Exchange Commission (SEC),  Mr Mounir Gwarzo noted that establishing the unclaimed dividend trust fund would be in line with international practices and further remove unscrupulous practice of delay in dividend payment.

    “Going by the practices in other jurisdictions, we believe that it is apt for the Nigerian capital market to have a platform for the utilization of unclaimed dividends funds,” Gwarzo said.

    Other stakeholders also aligned with Gwarzo. The CAC in its submission advocated for repeal of Section 385 of CAMA and the establishment of unclaimed dividend trust fund.

    According to the proposal for the unclaimed dividend trust fund, the members of the board of trustees should be selected from the capital market with representation Federal Ministry of Finance, SEC, ICMR, shareholders’ association, Nigerian Employees Consultative Association and such other persons as may be determined by the Minister of Finance.

    Upon establishment of the fund, the Minister of Finance shall issue a directive for all forfeited unclaimed dividends domiciled with the companies and  all subsequent unclaimed dividends, 15 months and above to be paid into the fund. It shall be the responsibility of SEC to enforce this directive.

    The stakeholders argued that the trust fund is the viable option for injecting the forfeited unclaimed dividends into the economy.

    They noted that as the financial regulators continue to push for greater levels of financial inclusion and encourage more Nigerians to invest in the capital market, the issue of unclaimed dividends must be tackled holistically.

    In a bid to mitigate the situation, SEC had in September 2015 issued a directive to all registrars of companies to return 90 per cent of unclaimed dividends in their custody for a period of 15 months and above. Similarly, in November 2015, the Commission launched the E-Dividend Mandate Management System (E-DMMS). The E-DMMS is an E-dividend payment portal that ensures the payment of dividends directly into a shareholder’s account. It is believed that these steps taken by the Commission would help to reduce the increase of unclaimed dividend which stood at N117 billion as at December 31, 2016.  Out of this figure, N86 billion is in the custody of the paying companies while N13.7 billion is in the custody of the registrars. However, from November 2015 when the SEC flagged-off the campaign on e-dividends to February 2017, about N42.2 billion has been paid to investors.

    Ironically, the provisions of CAMA might have contributed to the issue of unclaimed dividends. Section 382 (2) of CAMA allows the issuing companies to retain the unclaimed dividends and invest them for their own benefits. The danger with this provision is that the paying companies in lieu of the benefits they stand to gain may be enticed to implore all tactics within their reach to ensure dividends are unclaimed. This may include connivance with the registrars of companies.

    More worrisome is the fact that Section 385 of CAMA makes dividends recoverable from the companies only within a period of 12 years.  As such any dividend not claimed by an investor within 12 years after it is declared is deemed as forfeited and can no longer be recovered. Although CAMA is silent on who should have custody of the funds when it becomes statute barred, the issuing companies being already in custody of the funds, retain custody, and stand to make huge benefits from the funds at no extra cost.

    Market analysts said the current push for unclaimed dividend trust fund is on the right direction and it will be a major achievement for the current Director General of SEC to have recorded this success within a short period of time.

    They noted that the issue of unclaimed dividend is one of the initiatives stated in the implementation of 10 Year Capital Market Master Plan which has been recording substantial successes in different areas.

  • Senate passes medium term expenditure framework

    The Senate yesterday passed the controversial 2017-2019 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

    The adoption of the MTEF and FSP followed the consideration of the report of the Committee on Finance, Appropriation and National Planning presented by Chairman, Senate Committee on Finance, Senator John Owan Enoh.

    Some of the salient recommendations of the report which the Senate adopted oil production figure of 2.2 million per day as proposed by the Executive, N305 to $1 exchange rate also as proposed by the Executive.

    The Senate however raised the oil benchmark from $42 per a barrel proposed by the Executive to $44.5 per barrel, an increase of $2.5.

    The committee said  daily oil production has been projected to the average of 2.2 bpd, 2.3mbpd and 2.4mbpd for 2017, 2018 and 2019 respectively.

    It said the government would expect a drastic increase in oil production and revenue generated through oil sources, with the meaningful and inclusive engagement of all stakeholders in the Niger Delta region towards bringing peace and stability in the region.

    It added that “though, the oil production target of 2.2mbpd is achievable, it is dependent on the ability of the Federal Government to curtail the Niger-Delta militant activities in order to halt the drop in crude oil production which declined from 1,912mbpd in January 2016 to 1,818mbpd in June 2016 and thereafter, to 1,721mbpd in October, 2016.”

    On oil price benchmark, the committee said the price of crude oil in the international market fell to as low as about $25 per barrel in mid-January with an increase to more than $50 per barrel in October last year.

    It noted that recent bumpy oil price variations were driven principally by international oil market dynamics such as the decline in the Organisation of Petroleum Exporting Countries (OPEC) output, US oil shale and temporary supply disruptions to Countries like Kuwait, lraq, Libya, Canada and Nigeria. However, while global oil demand growth has proved slightly better than expected, a weaker US dollar and improving sentiment on broader financial markets have also boosted crude oil price.

    “Against this backdrop, the international oil industry watchers forecast oil prices heading slowly towards an average of over $60pb in the near term,” it said.

    The joint committee therefore recommended the adoption of $44.5 per barrel as benchmark price for 2017 Budget.

    On exchange rate, it said that the 2017-2019 MTEF and FSP projects an exchange rate of N305 per dollar for the period of 2017 fiscal year. Notwithstanding, a judicious monetary fiscal policy mix and deliberate government policies to expand the productive base of the economy would be expedient to improve the exchange value of the naira relative to the dollar.

    The committee noted that it has become obvious that the fixed exchange rate regime as implemented in Nigeria was no longer useful.

    “The sustained and widening gap between the official exchange rate and the parallel market has created several loopholes in the system. However, the recent transition from fixed exchange rate regime to flexible exchange regime appears commendable,” it said.

    The committee recommended the adoption of N305/US dollar as proposed by the executive for the 2017 budget.

    It said the CBN should initiate measures that will close the gap between the parallel market and the official exchange rate.

  • NEPC unveils framework to aid women in export

    NEPC unveils framework to aid women in export

    The Nigerian Export Promotion Council (NEPC) is working out modalities to include women in export activities that will bridge the gender gap and reduce poverty.

    The move is anchored on the belief that improving the performance of women businesses in non-oil export trade can translate into more jobs and also drive poverty reduction.

    NEPC Executive Director/CEO Mr. Olusegun Awolowo made this known on the sideline of the yearly conference of the Nigerian Association of Commerce, Industry, Mines & Agriculture (NACCIMA) Business Women Group held in Lagos, recently.

    He said $28 trillion could be added to the global economy by 2025 if women participated in the economy on equal footing with men.

    Awolowo said: “Countries with greater economic opportunities for women score higher on competitiveness and national income. Companies with greater gender diversity outperform others on probability and market valuation. A woman spends up to 90 per cent of her income on her family compared to 40-50 per cent by men.”

    He, however, regretted that there were many impediments on the way of women making progress though Small and Medium Enterprises (SMEs) where they are mostly engaged, making up over 95 per cent of global businesses.

    Awolowo said opportunities are still not the same for men and women, as they are 20 per cent less likely than men to have a bank account. ”Women have more business skills gaps and are more often excluded from the economy. Only one in five exporting firms is led by women,” he said.

    He further said the nation ranked 86 of 102 countries on gender inequality index, adding that NEPC would work towards building the capacity of women in business by bridging the skills gaps and embarking on hand-holding to ensure the businesses did not die as soon as they were initiated.

  • Reps seek N500b intervention programme framework

    Reps seek N500b intervention programme framework

    • NDDC’s N260b budget bill scales second reading

    The House of Representatives has directed the Presidency to make available to it the administrative framework and details of the programmes to be implemented under the N500billion  social intervention fund.

    This followed the adoption of  a motion of urgent public importance  by Chika Adamu (Niger APC), who said the success of the programme remained doubtful because it has neither administrative nor legal framework for its implementation.

    According to him, intervention programmes introduced by previous administrations failed due to mismanagement and lack of strong institutional structure, adding that  the office of the Vice President does not possess the capacity to handle such social intervention fund.

    He said the N500billion programme should be stopped until the framework has been provided by the Senior Special Assistant to the Vice President on  Poverty Alleviation.

    Meanwhile, the Niger Delta Development Commission (NDDC’s) N260b budget bill for this year equally scaled second reading on the floor of the House yesterday too.

    Reacting to the request for the implementation framework of the intervention programme, House Majority Leader, Femi Gbajabiamila argued that the request was unnecessary because the framework was already in place.

  • In search of national communication framework

    In search of national communication framework

    The image of a country is crucial to attracting foreign direct investment (FDI). Experts at the Association of Advertising Agencies of Nigeria (AAAN) 43rd Annual General Meeting/Congress in Akwa Ibom State highlighted the role of communications in national development and nation branding, ADEDEJI ADEMIGBUJI, who was there, reports

    At a time the Bristish Prime Minister, David Cameron, described Nigeria as ‘fantastically corrupt’, the focus of this year’s Annual General Meeting (AGM) and Congress of the Association of Advertising Agencies of Nigeria (AAAN) could not be more apt.

    With Communication As a Tool for National Development as its theme,  there was an assemblage of experts to address communication and branding challenges.

    Analysts say it is the best way to go for any government in need of the best method to communicate its policies to not only the citizens but to the outside world.

    The debate on coming out with a well-accepted marketing communications strategy for the country has been futile over the last five years. But Akwa Ibom State, where the event was held, provided a case study – development and communication – for better understanding of the  role of communication in national development and nation branding.

    The speakers, including Governor Emmanuel Udom; the Acting Managing Director, Niger Delta Development Corporation (NDDC), Mrs. Ibim Semenitari; a senior advertising practitioner and the Managing Director of SO&U, Mr. Udeme Ufot, and the immediate past president of AAAN, Mr. Kelechi Nwosu, were unanimous that communication can change behaviours, entrench positive attitude and enhance national rebirth. Communication can as well enhance positive perception from external publics, especially, the international community.

    Describing advertising as a veritable tool for repositioning  the state, Udom said a communication campaign – Dakkada – adopted by the state has become a litmus test that could be adopted by government at all levels to achieve  national development, reorientation and attitudinal change. He said such business must be handled by professionals to achieve results.

    He said: “We are all guilty of the blame; we got into this mess basically because Nigerians were not interested in their own enterprises. There is an urgent need for the average Nigerian to show some level of patriotism towards made-in-Nigeria goods and patronage of our professionals in all fields. With this, we will be able to check capital flight as well as boost the naira.

    “On communication, I have always emphasised that there must be connection between the people and government mechanism and the best way to go about this is to engage professionals, who understand our culture, our programmes and our target audience.”

    Also, Mrs. Semenitari, a founding Editor of BroadStreet Journal, a publication of Tell Magazine, underscored the role of communication. She said there was the need for the government to provide citizens with information on programmes and activities, saying this is a vital function which underpins state-society relation.

    Semenitari said further that the government, being the first brand face of Nigeria, must carry its people along, making them the first advocates for Brand Nigeria. “The result of this would be a boundless subscription by all Nigerians to Brand Nigeria, an affirmative position which is accompanied by pride, sincerity and collective responsibility, knowing that no truly big or successful brand can be built in isolation,” she said.

    She noted that adopting effective communication strategy in governance would foster national pride, advocacy, behavioural changes and support for government initiatives. It will also naturally encourage foreign investors and tourist attraction. “An overall belief in brand Nigeria is just coming attractions for what the big play could turn out to be,” she affirms.

    Challenging advertisers, she  said communication as a tool for national development as seen through the eyes of communications experts must be seen as a task to probe new models and channels through which the people can be carried along.

    “The process of competently advising, guiding, processing and executing ideas at every level is the strongest challenge for advertising agents. And why do I think it’s a challenge? Taking into consideration the peculiar challenges our government is presently tackling and considering the progress we have made in these areas, it must be stated that already one thing is clear, the present administration is not turning its eyes the other way to corruption or the menace of insurgency. Peculiar times call for peculiar models, hence, we must be imaginative; be able to gain the confidence of the people while communicating Nigeria’s ideals.

    “Our offerings and response simplified, sustainable and brilliant, yet convincing,” she said.

    She said AAAN could not be ignored in the communication space, particularly in maintaining an appreciable level of ethics of practice, which she referred to as the precursor of the sanity in the advertising industry.

    In the “fantastically altered” perception about the country, she said, there isn’t a better time than now to collectively bring to the fore strategies towards adequately using communication for nation building and highlighing the role of teh government.

    Drawing attention to the United Kingdom’s Prime Minister David  Cameron’s comment, Uffot said Nigerians were responsible for the way foreigners see the country in negative light. He said Nigerians and top government officials, including the media, were responsible for demarketing Nigeria.

    “There is nothing Nigerians enjoy more, both the lowly and the highly placed, than to denigrate their nation, even in the midst of foreign audiences, (washing our  dirty linen (at their doorsteps). It is indeed a sad place to be, that Nigerians who are old enough to have seen, and been a part of this country in its better days, and some of whom had been contributory to the country’s sinking to the current sorry state, should be some of the loudest in bad mouthing and rubbishing the nation,” he said.

    Quoting the Special Adviser on the International Compact with Iraq and Other Issues for the Secretary-General of the United Nations, Prof Ibrahim Gambari, Uffot said: “Nation building is about building a common sense of purpose, a sense of shared destiny, a collective imagination of belonging. Nation building is therefore about building the tangible and intangible threads that hold a political entity together and gives it a sense of purpose. It is about building the institutions and values which sustain the collective community in these modern times.”

    In the light of this Ufot, said there is need for a professional communication framework and architecture in managing government communications.

    The conference support by The Nation Newspaper, according to Nwosu, was organised to articulate options and identify strategies for addressing national issues, particularly those that relate to the advertising industry and the Nigeria economy. He also said it was meant to suggest clear ideas on how government can effectively engage the hearts and minds of Nigerians.

    Nwosu said for the engagement of strategic communication is to motivate members of the public. While pointing out that many governments, all over the world, retain the services of professional marketing communication partners to sell their policies, he tasked practitioners in the advertising business on the need to see their role in national development beyond offering marketing communication services to the private sector.