The Nation Newspaper

Tag: investors

  • Minister: foreign investors jostling to buy over 9Mobile

    Minister: foreign investors jostling to buy over 9Mobile

    Many foreign investors are jostling to buy over telecomunication firm 9 Mobile (formerly Etisalat) from which Mubadallah recently pulled out, Minister of Comunications Adebayo Shittu said at the weekend.

    Shittu, speaking on ‘Political Circuit’, a political programme on Ibadan-based Fresh FM, said there is no cause for worry for the sunscribers and workers of the company. But he did not disclose the names of the foreign firms.

    Mubadallah left Nigeria this  month over unresolved issues on loans by a consortium of commercial banks.

    According to Shittu, the Federal Government intervened in the loan crisis rocking the company in order to prevent it from closing down with the attendant negative implications.

    Shittu said thousands of direct and indirect jobs would have been lost while investors’ confidence would have been eroded.

    The minister said the government would continue to strengthen the enabling environment for investments and job creation initiatives in the country.

    Shittu said the country needed more Foreign Direct Investments (FDI) to strengthen the economy.

    He said the government could not afford to fold its arms and let any good investment go under, pointing out that the telecoms industry contributed over 10 per cent to the Gross Domestic Product (GDP) in the last financial year.

    He described the feat as unprecedented and a mark of the huge importance of the industry to the economy.

    Accordintg to him, there are 150 million active mobile telephone lines in Nigeria.

    The minister also hinted of his ministry’s plan to encourage telecommunication firms to begin to provide scholarships for students insupport of education.

  • ‘Ajegunle‘ll become toast of investors’

    ‘Ajegunle‘ll become toast of investors’

    The newly elected chairman of Ajeromi-Ifelodun Local Government Area  Fatai Ayoola has promised to attract investors to the community.  He made the promise shortly after winning the council polls.

    He said the youth would pilot the scheme to turn the suburb community to centre of commerce and industry. He noted that adequate training had been given to the youths to get them focused for task ahead.

    Ayoola, who is a member of the All Progressives Congress (APC), said: “My vision for the council is to make ‘AJ’ a mega city inside a mega state. I will like to improve on what my predecessors like of Hon. Rabiu Oluwa, Hon. Kamal Bayewu have done.

    “I am drawing inspiration from Asiwaju Bola Tinubu, Babatunde Fashola and the home and wonder boy Akinwunmi Ambode. These leaders have impacted in the Centre of Excellence. I will be leaning on that to set a path for our people in Ajegunle community.

    “It will be based on four-point agenda which comprised of roads construction, healthcare provision, upgrading of social facilities and providing primary education facilities. We are also going provide uniforms and writing materials for our school as well putting in place e-library to enable them catch up with the trend in the education sector.

    “We will empower women to enable them contribute to the growth of Ajegunle in positive ways. We will take very serious the issue of security, so that people can go about their business without molestation.

    “There is a programme going on, where the youths are training to divert them from drugs and crimes. The likes of Henry Nwosu, Daddy Showkey etc speak at the training.”

    The APC candidate said teachers interest would not be compromised. He called on them to lead the vanguard for a better Ajegunle community.

    “We have reached out to teachers, non-indigenes by giving them councillorship slots. We have a councillor representing the interest of the Southsouth, Southeast and have promised the Arewa the position of Liaison Officer with the council.

    “My deputy is from the Igbo extraction, Madam Nkem Igwe. With this, we have been able to reach out to interests that constitute Ajeromi-Ifelodun council with that we gained their confidence.

    Ayoola said Ifelodun/Ajeromi would be rid of crime and corrupt tendencies.

    “It is not a Nigerian thing alone, it has even attained global phenomenon. We need the collective effort of concerned people to nip it in the bud. I think it’s equally not right for people to keep asking for what they do not deserve.

    “The scarce resources available must be judiciously used and explanation must be provided to the people how their money is being spent. That is to say that if we can apply the budget simply to what it is supposed to achieve, I believe that will be in great way to narrow down the cases of corruption.”

    He explained that the council would look inward to generate its revenue, stressing that friction arising from revenue collection would be minimised.

    “The past administrations have issues with lock up shop owners. They had problems with the Igbo marketers and being a home boy, someone who was born and brought up here, I promised to look into the areas of disagreement and promised.

    “I thank God that they have been listening to our appeal, in fact they gave N2 million to the council out of the backlog owed the previous administration. We will open up roads; waste to wealth will be given attention.”

  • Equities on the balance as investors await half-year results

    Nigerian equities traded on the balance yesterday as investors weighed the prospects of corporate earnings in the light of current valuations. With 24 gainers and losers each, the overall market situation showed cautious optimism as investors realigned their portfolios.

    Gains recorded by large-cap stocks however sustained the positive market performance for the 10th consecutive trading session. Benchmark indices at the Nigerian Stock Exchange (NSE) showed average day-on-day gain of 0.23 per cent, equivalent to net capital gain of N27 billion.

    Aggregate market value of all quoted equities rose from its opening value of N11.524 trillion to close at N11.551 trillion. The All Share Index (ASI)-the main price index for the market, trended upward from 33,436.61 points to close at 33,514.93 points. With this, average year-to-date return rose to 24.71 per cent.

    Sectoral indices underlined the tight market situation between the profit-takers and bargain-hunters. Two sectoral indices declined, two other indices appreciated while one index was flat. The NSE Oil & Gas Index appreciated by 1.4 per cent while the NSE Banking Index rose by 1.1 per cent. However, the NSE Insurance Index and NSE Industrial Goods Index declined by 0.5 per cent each while the NSE Consumer Goods Index closed flat.

    Seplat Petroleum Development Company led the gainers with a gain of N9.98 to close at N485. Guinness Nigeria rose by N3.10 to close at N66.10. Okomu Oil Palm added N1.50 to close at N64.50. PZ Cussons Nigeria appreciated by N1.05 to close at N22.05 while Stanbic IBTC Holdings rose by 99 kobo to close at N32.49 per share.

    On the downside, Nestle Nigeria led the losers with a loss of N16.50 to close at N903.50. Presco declined by N3.22 to close at N61.32. Dangote Cement lost N2 to close at N208. MRS Oil and Gas dropped by N1.86 to close at N35.44 while Flour Mills of Nigeria declined by N1.10 to close at N25.15 per share.

    Total turnover stood at 331.43 million shares valued at N3.24 billion in 4,055 deals. The three most active stocks were Zenith Bank, with 33.11 million shares; United Bank for Africa (UBA), 28.24 million shares and FBN Holdings, which recorded a turnover of 26.55 million shares.

    “As half year corporate scorecards begin to trickle in, we expect market performance to remain largely bullish – driven by positive earnings expectation,” Afrinvest Securities stated.

  • 9mobile: we’re open to new investors

    The Chief Executive Officer, 9mobile Boye Olusanya, yesterday said telco is open to new investors, stressing that the exit of UAE’s Etisalat 45 per cent from the business will not affect the smooth running of the telco as being feared in some circles.

    Speaking at a press conference at the telco’s Oriental Hotel, Lekki, Lagos office to officially announce the company’s new name to replace Etisalat Nigeria,  he said the company has retained its workforce adding that Etisalat’s withdrawal had not led to a loss of business opportunities.

    “In our nine years of operations, we have remained at the forefront of innovation and take pride in consistently delivering superior experiences to our subscribers. We continue to establish meaningful partnerships with our customers and partners by providing platforms that support their goals and aspirations.

    “Like any business we are always available for someone with a good offer … but we are prepared to manage this business for the long haul. Not for three months.This brand was not developed with the mindset that it’s a three-month brand,”Olusanya said.

    9mobile has 20 million subscribers making it the country’s number four mobile operator with about 14 percent market share. South Africa’s MTN has 47 percent, Globacom 20 per cent and Airtel -a subsidiary of India’s Bharti Airtel – 19 percent.

    Etisalat Nigeria was in talks with its lenders to restructure a $1.2 billion debt after it missed repayments, but the discussions failed to produce a deal, forcing the banks and to step in and order shareholders to transfer their shares to a loan trustee.

    The consortium of lenders, working with the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have now taken control and appointed a new team to manage the company with a focus on getting it back to profitability while working to eventually raise new capital.

  • Investors push for interbank rate

    Investors push for interbank rate

    Foreign investors are pushing for the adoption of the interbank rate as the only official exchange rate, The Nation has learnt.

    The interbank rate closed on Friday at N315.10/$1. It has remained the most stable exchange rate in the last six months.

    The new demand by investors followed earlier calls by the International Monetary Fund (IMF) and stakeholders that the CBN unify exchange rates. The Executive Board of the IMF’s Article IV Consultation on Nigeria had in March, urged the authorities to remove restrictions and multiple currency practices.

    In a report released at the weekend, Afrinvest West Africa Limited, an investment and research firm, confirmed investors’ demand on the CBN to adopt interbank rate, and said the investors are insisting that although the CBN’s policies over the past months have led to a convergence between parallel and official market rates, the last leg of the reform which is replacing multiple exchange rates with a transparent interbank market is still pending.

    It said the opening of different Forex windows and targeted intervention by the CBN, which is in excess of $5 billion in the last four months, have had a positive knock-on impact on capital liquidity and resulted in a stronger naira in the parallel market.

    Since the start of a prolonged global oil price drop in the second half of 2014, the Nigerian economy has recorded a significant downturn in performance as plummeting government revenues and the resultant forex crisis dragged the economy into its first recession in 25 years. The country currently has not less than 10 different exchange rates, which many stakeholders are calling for their harmonisation.

    The Afrinvest, said analysis of the naira/dollar movement in the first half of this year showed that at the naira traded flat within N315.10/$1 to N305.90/$1 at the official rate. At the FMDQ’s Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) exchange rates segment, naira appreciated 2.5 per cent since the launch of the window from N375.70/$1 to close at N366.41/$1 while rate at the parallel market also appreciated 33.2 per cent from N490/$1 at the beginning of the year to close at N368/$1 at the weekend. The NAFEX is a polled rate derived from FX rates submission, from a selection of Authorised Dealers participating in the Investors & Exporters FX window.

    Speaking on the call for exchange rate convergence, former Executive Director, Keystone Bank, Richard Obire, said the CBN should move towards unified exchange rate or narrow the rate. He said that multiple exchange rate creates distortion in prices and hurts businesses.

  • Equities: Investors reap over N2.2tr gain in first half

    Equities: Investors reap over N2.2tr gain in first half

    Equities’ investors at the stock market are smiling to the bank as they netted more than N2.2 trillion gains in the first half of the year.

    Most quoted equities closed the first half at the weekend at their four-year best performance with double-digit returns ahead of inflation. Most investors saw their portfolios rising by almost a quarter, while others garnered more than double the average benchmark.

    The six-month average year-to-date return at the weekend stood at 23.23 per cent, almost seven percentage points ahead of the current inflation rate of 16.25 per cent. In monetary terms, the year-to-date gain stood at N2.2 trillion, underlining the fact that the appreciation in market value was driven by share price increases rather than new listings.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) closed the first half at N11.452 trillion as against 2017’s opening value of N9.247 trillion, representing net capital gain of N2.205 trillion or 23.85 per cent.

    The All Share Index (ASI)-the benchmark index that doubles as sovereign equities index for Nigeria, crossed seven levels to close at 33,117.48 points in the review period, compared with its year’s opening index of 26,874.62 points, representing an increase of 23.23 per cent.

    The rebound in the first half, driven largely by gains recorded in the second quarter, represents a major recovery for hard-pressed  investors, who had lost N3.98 trillion in the past three years.

    The stock market had been on a losing streak since 2014. Investors lost N1.75 trillion in 2014 and followed this with another loss of N1.63 trillion in 2015. Against the  expectation that political transition and new government will quicken a rebound, equities closed 2016 with a net capital loss of N604 billion.

    Aggregate market value of all quoted equities on the NSE closed 2016 at N9.247 trillion, as against N13.226 trillion recorded at the start of trading in 2014, representing a net capital loss of N3.98 trillion.

    Managing Director, Cowry Asset Management Limited, Johnson Chukwu, said the recovery was a response to positive changes in the polity, noting that the stock market performance usually aligns with macroeconomic outlook.

    He said the market had remained depressed in the first quarter under poor liquidity, amidst uncertain and unrealistic foreign exchange management.But the market turned round in the second quarter, he pointed out, with the changes in the foreign exchange management and improvement in macroeconomic coordination.

    Chukwu said the market recovery was boosted by the introduction of the Investors’ and Exporters’ foreign exchange window, as well as the narrowing of the exchange rates between official and parallel rates due to policy stimulation by the Central Bank of Nigeria (CBN).

    He said the improvement in foreign exchange market and overall macroeconomic performance encouraged foreign portfolio investors to redirect funds to Nigerian equities, thereby supporting the domestic investors’ base.

    He added that the ongoing revision of the investment guidelines for pension funds administrators (PFAs), which includes mandatory investment off a certain percentage of pension funds in equities, also encouraged many PFAs to take early positions in equities ahead of the release of the final guidelines.

    GTI Capital Chief Operating Officer, Kehinde Hassan, said the market was primed for recovery by the steep declines in previous years and substantial undervaluation of several equities, pointing out that the steady corporate earnings in the previous year and first quarter of this year boosted investors’enthusiasm as companies majorly have shown resilience in the face of  the tough operating environment.

    He said with global projections indicating positive outlook for the  economy and the prospects that corporate earnings may remain steady, investors viewed the undervaluation of quoted equities as incentive.

    Banking stocks have been major drivers of the rally after first quarter earnings showed a largely positive performance. The Deposit Money Banks (DMBs), reported pre-tax profit of about N234 billion on gross earnings of N1.07 trillion in the first quarter of this year.

    Key extracts of the interim report and accounts of banks for the three-month period ended March 31, 2017, indicated that total assets rose to N35.3 trillion by the end of the review period, driven largely by profit accretion as all tracked banks posted profit during the period. Gross earnings totalled N1.072 trillion, driven mostly by growth in core banking operations. Profit before tax stood at N233.66 billion while profit after tax stood at N196.7 billion.

    About 80 per cent of tracked banks recorded higher pre and post tax profits compared with the corresponding period of the previous year while nearly all banks reported growths in top-line earnings. Average gross earnings for the industry in the first quarter stood at N71.47 billion while average profit before tax stood at N15.57 billion. After taxes, average net profit stood at N13.11 billion on the back of average total assets of N2.35 trillion.

    The Nation had tracked the results of all quoted banks on the Nigerian Stock Exchange (NSE), with the exception of the troubled Skye Bank, which has not submitted both the audited report for 2016 and first quarter result for 2017. The report of Skye Bank will not lead to any material change in the overall figures for the sector. There are altogether 16 banks quoted on the NSE including Guaranty Trust Bank, Zenith Bank, Access Bank, United Bank for Africa, FBN Holdings, FCMB Group, Ecobank Transnational Incorporated, Stanbic IBTC Holdings, Unity Bank, Sterling Bank, Fidelity Bank, Union Bank of Nigeria, Wema Bank, Diamond Bank, Jaiz Bank and Skye Bank.

    Banks’ chiefs said they were optimistic of continuing growths in the remaining period of the year, citing expected improvement in the macroeconomic environment.

    “We remain positive that economic activities will improve as the economy is beginning to show signs of positive outlook due to an increase in the supply of foreign exchange to both retail and corporate users and decreasing headline inflation,” Stanbic IBTC Holdings Chief Executive, Mr. Yinka Sanni, said.

    Sterling Bank Managing Director, Mr. Yemi Adeola, said the first quarter of this year’s performance was in line with expectations, noting that the bank would continue to explore innovative ways to improve revenue, while simultaneously enhancing the overall efficiency of its business operations.

    “We remain committed to maximising shareholders’ value and delivering superior and sustainable return, guided by our founding values of hard work, discipline and integrity,” Managing Director, Guaranty Trust Bank, Mr Segun Agbaje, said.

    Group Managing Director, United Bank for Africa UBA), Mr. Kennedy Uzoka, said the performance in the first quarter strengthens the group’s optimism on economic and business recovery in Nigeria and many of its markets across Africa.

     

  • Equities: Investors reap over N2.2tr in first half

    Equities: Investors reap over N2.2tr in first half

    Equities’ investors at the stock market are smiling to the bank as they netted more than N2.2 trillion gains in the first half of the year.

    Most quoted equities closed the first half at the weekend at their four-year best performance with double-digit returns ahead of inflation. Most investors saw their portfolios rising by almost a quarter, while others garnered more than double the average benchmark.

    The six-month average year-to-date return at the weekend stood at 23.23 per cent, almost seven percentage points ahead of the current inflation rate of 16.25 per cent. In monetary terms, the year-to-date gain stood at N2.2 trillion, underlining the fact that the appreciation in market value was driven by share price increases rather than new listings.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) closed the first half at N11.452 trillion as against 2017’s opening value of N9.247 trillion, representing net capital gain of N2.205 trillion or 23.85 per cent.

    The All Share Index (ASI)-the benchmark index that doubles as sovereign equities index for Nigeria, crossed seven levels to close at 33,117.48 points in the review period, compared with its year’s opening index of 26,874.62 points, representing an increase of 23.23 per cent.

    The rebound in the first half, driven largely by gains recorded in the second quarter, represents a major recovery for hard-pressed  investors, who had lost N3.98 trillion in the past three years.

    The stock market had been on a losing streak since 2014. Investors lost N1.75 trillion in 2014 and followed this with another loss of N1.63 trillion in 2015. Against the  expectation that political transition and new government will quicken a rebound, equities closed 2016 with a net capital loss of N604 billion.

    Aggregate market value of all quoted equities on the NSE closed 2016 at N9.247 trillion, as against N13.226 trillion recorded at the start of trading in 2014, representing a net capital loss of N3.98 trillion.

    Managing Director, Cowry Asset Management Limited, Johnson Chukwu, said the recovery was a response to positive changes in the polity, noting that the stock market performance usually aligns with macroeconomic outlook.

    He said the market had remained depressed in the first quarter under poor liquidity, amidst uncertain and unrealistic foreign exchange management.But the market turned round in the second quarter, he pointed out, with the changes in the foreign exchange management and improvement in macroeconomic coordination.

    Chukwu said the market recovery was boosted by the introduction of the Investors’ and Exporters’ foreign exchange window, as well as the narrowing of the exchange rates between official and parallel rates due to policy stimulation by the Central Bank of Nigeria (CBN).

    He said the improvement in foreign exchange market and overall macroeconomic performance encouraged foreign portfolio investors to redirect funds to Nigerian equities, thereby supporting the domestic investors’ base.

    He added that the ongoing revision of the investment guidelines for pension funds administrators (PFAs), which includes mandatory investment off a certain percentage of pension funds in equities, also encouraged many PFAs to take early positions in equities ahead of the release of the final guidelines.

    GTI Capital Chief Operating Officer, Kehinde Hassan, said the market was primed for recovery by the steep declines in previous years and substantial undervaluation of several equities, pointing out that the steady corporate earnings in the previous year and first quarter of this year boosted investors’enthusiasm as companies majorly have shown resilience in the face of  the tough operating environment.

    He said with global projections indicating positive outlook for the  economy and the prospects that corporate earnings may remain steady, investors viewed the undervaluation of quoted equities as incentive.

    Banking stocks have been major drivers of the rally after first quarter earnings showed a largely positive performance. The Deposit Money Banks (DMBs), reported pre-tax profit of about N234 billion on gross earnings of N1.07 trillion in the first quarter of this year.

    Key extracts of the interim report and accounts of banks for the three-month period ended March 31, 2017, indicated that total assets rose to N35.3 trillion by the end of the review period, driven largely by profit accretion as all tracked banks posted profit during the period. Gross earnings totalled N1.072 trillion, driven mostly by growth in core banking operations. Profit before tax stood at N233.66 billion while profit after tax stood at N196.7 billion.

    About 80 per cent of tracked banks recorded higher pre and post tax profits compared with the corresponding period of the previous year while nearly all banks reported growths in top-line earnings. Average gross earnings for the industry in the first quarter stood at N71.47 billion while average profit before tax stood at N15.57 billion. After taxes, average net profit stood at N13.11 billion on the back of average total assets of N2.35 trillion.

    The Nation had tracked the results of all quoted banks on the Nigerian Stock Exchange (NSE), with the exception of the troubled Skye Bank, which has not submitted both the audited report for 2016 and first quarter result for 2017. The report of Skye Bank will not lead to any material change in the overall figures for the sector. There are altogether 16 banks quoted on the NSE including Guaranty Trust Bank, Zenith Bank, Access Bank, United Bank for Africa, FBN Holdings, FCMB Group, Ecobank Transnational Incorporated, Stanbic IBTC Holdings, Unity Bank, Sterling Bank, Fidelity Bank, Union Bank of Nigeria, Wema Bank, Diamond Bank, Jaiz Bank and Skye Bank.

    Banks’ chiefs said they were optimistic of continuing growths in the remaining period of the year, citing expected improvement in the macroeconomic environment.

    “We remain positive that economic activities will improve as the economy is beginning to show signs of positive outlook due to an increase in the supply of foreign exchange to both retail and corporate users and decreasing headline inflation,” Stanbic IBTC Holdings Chief Executive, Mr. Yinka Sanni, said.

    Sterling Bank Managing Director, Mr. Yemi Adeola, said the first quarter of this year’s performance was in line with expectations, noting that the bank would continue to explore innovative ways to improve revenue, while simultaneously enhancing the overall efficiency of its business operations.

    “We remain committed to maximising shareholders’ value and delivering superior and sustainable return, guided by our founding values of hard work, discipline and integrity,” Managing Director, Guaranty Trust Bank, Mr Segun Agbaje, said.

  • Nine million investors yet to join electronic-dividend system

    Nine million investors yet to join electronic-dividend system

    •SEC urges investors to take advantage of free registration

    About nine million investors are yet to sign on to the electronic dividend payment (e-dividend) system, where dividends will be paid directly by corporate registrars to the bank accounts of investors.

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), at the weekend confirmed that about 2.2 million investors have so far mandated their bank accounts for direct payment of dividends through the e-dividend platform.

    There are  more than 12 million investors in the stock market. Minority retail investors account for more than 80 per cent of the domestic investors’ base, although they account for lower turnover. Institutional investors, including pension fund administrators (PFAs), insurance companies, investment banking firms, stockbrokers, dealers and high networth individual investors among others, account for the larger percentage of transactions.

    The latest transactional report by the NSE indicated that retail domestic investors account for 38.5 per cent of total transaction value by domestic investors last May.

    Many sources in the know said the large number of unregistered investors for the e-dividend might have been responsible for the extension of the June 30, 2017 deadline for the cessation of dividend warrants and adoption of the full e-dividend option by SEC.

    SEC had announced the extension of the deadline from June 30, 2017 to December 31, 2017, citing numerous requests received from the investing public.

    In a circular at the weekend, SEC however, insisted that the deadline of December 31, 2017 “will mark the end of conventional issue of physical dividend warrants to shareholders of public companies in the Nigerian capital market”.

    The Commission stated that it has also decided to continue to underwrite the cost of e-dividend enrolment till December 31, 2017, implying all unregistered investors will also be able to enroll without any payment within the six-month period.

    “The advantage of the e-dividend is not only to enable investors collect subsequent dividends electronically, but it allows all accrued dividends to be credited to investors’ bank accounts. This will stem the rising unclaimed dividend in the capital market,” SEC stated.

    The Commission noted that the extension of the deadline and free registration underscored its strong focus on market development and enhancement of investor confidence.

    “All investors in the Nigerian capital market are therefore advised to take advantage of this extended grace period by approaching their bankers or registrars for enrolment before the deadline,” SEC said.

    SEC had in November 2015 launched the E-Dividend Mandate Management System (E-DMMS) in collaboration with the Central Bank of Nigeria, Nigerian Interbank Settlement System (NIBSS) and other stakeholders. 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 the 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 was in the custody of the paying companies while N13.7 billion was in the custody of the registrars. 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 from the backlog of unclaimed dividends.

    SEC Director-General, Mounir Gwarzo, had recently said efforts made by the Commission to ensure that the era of stale dividends and huge unclaimed dividends in the market become a thing of the past have started achieving result with the e-dividend registration system.

    “In this country, we have never had this kind of initiative that has reduced unclaimed dividends like we had today. Apart from the investor getting his dividends where ever he is, that investor will be able to get dividends that in the last five years he has not been able to get. The e-dividend is for the interest of retail investors,” Gwarzo said.

  • Nigerian startup secures $2.1m seed funding from investors

    A TELECOM firm, Tizeti and its consumer facing brand, Wifi.com. ng, which offers unlimited and uncapped internet service in Lagos, have secured $2.1 million seed funding from international investors.

    The investors include: Western Technology Investment, Social Capital, Vy Capital, Picus Capital, Ace & Company, Lynett Capital Partners, Zeno Ventures and a number of investors, including Y Combinator’s Michael Seibel and Gabriel Hammond.

    The company, which operates widely as a “Comcast for Africa”, builds and operates solar-powered towers to provide reliable and affordable Wi-fi services to hundreds of residential areas and small and medium enterprises (SMEs) across Nigeria’s megacity.

    The capital injection, secured as part of this seed round, will see services extended across the city and the Southsouth region of Africa’s most populous country, by launching an Xfinity Wifi-like Hotspot service, as well as scaling up mobility with the inclusion of 3,000 new public hotspots across Lagos.

    Founded by Y Combinator Alumni Kendall Ananyi and Ifeanyi Okonkwo, cohorts of the Winter 2017 batch, Tizeti was created to address poor internet connectivity on the continent by developing a cost-effective solution from inception to delivery, for reliable and uncapped internet access for Africans.

     

     

  • CBN’s plan to liberalise naira excites investors

    CBN’s plan to liberalise naira excites investors

    Ongoing plans by the Central Bank of Nigeria’s (CBN’s) to free up the naira, particularly via a new trading window, have gone down well with some adventurous stock and bond investors who are cautiously returning to the markets they fled two years ago.

    Once considered one of the most promising emerging markets, Nigeria was affected when it introduced some foreign exchange restrictions to counter the effects of the 2014 oil price crash.

    These will take years to unwind, some analysts fear, while others are concerned the new trading facility could come under pressure if oil prices were to take another tumble, or trade through it could slow if Nigeria’s currency reserves run low.

    The much-criticised move starved the economy of dollars, throttled foreign investment and plunged Africa’s largest economy into recession for the first time in more than 25 years.

    But authorities told Bloomberg that since tried to normalise the currency market and alleviate dollar shortages, most recently via the “Investors & Exporters FX Window”, which allows investors and traders to swap nairas for dollars at market-determined rates.

    The new window adds to a confusing array of exchange rates. But it does seem to be succeeding in luring back some foreign funds, especially as the economy should return to growth soon and inflation is finally slowing. “It is a very good thing. Obviously having multiple exchange rates is not an optimum situation yet, but it is moving towards a more realistic exchange rate,” said Oliver Weeks, economist at hedge fund Emso Asset Management. “This certainly makes the country more interesting.”

    Under the new system, in place since April, the opening and closing naira/dollar rates are determined by a poll of authorised bank dealers. The NAFEX or Nigerian Autonomous Foreign Exchange Rate Fixing is set around noon and serves as a benchmark for derivatives such as forwards and futures. Weeks said Emso has used the new mechanism successfully several times in the past six weeks.