The Nation Newspaper

Tag: investors

  • Investors shift to low-priced stocks to beat recession

    Investors appeared to be showing preference for low-priced equities, otherwise known as penny stocks, decline in share prices  brings several growth stocks around the 100 kobo mark.

    Trading reports by the Nigerian Stock Exchange (NSE) showed that low-priced stocks have dominated the charts in what market analysts regarded as a shift of emphasis from liquidity to potential for higher dividend yield and capital appreciation.

    Three stocks, which trade around N1 were the most active last week. The trio of Sterling Bank PLC, FCMB Group PLC and Transnational Corporation of Nigeria accounted for 250.205 million shares worth N237.138 million in 3,654 deals, representing 28.6 per cent of the total equity turnover volume. Total turnover at the NSE last week stood at 873.838 million shares worth N8.024 billion in 15,944 deals.

    In the previous week, the trio of FBN Holdings Plc, Access Bank PLC and FCMB Group PLC also accounted for 226.665 million shares worth N757.967 million in 1,879 deals, representing 33.4 per cent of the total equity turnover volume for the week.

    Head, Financial Advisory Group, GTI Capital Limited, Mr Hassan Kehinde, said the trend showed that investors were taking earnings and dividend yields as major consideration in their portfolio allocation.

    According to him, with the low share prices of several stocks, there is potential for good dividend yields by the end of this year notwithstanding the depressed bottom-line due to the tough operating environment.

    FBN Holdings Plc, the holding company for First Bank of Nigeria and its previous subsidiaries, had grown its total balance sheet to N5.1 trillion by the third quarter of this year as the financial conglomerate pooled gross earnings of N417.3 billion within nine months.

    Key extracts of the nine-month report showed that FBN Holdings retained its leading position as the largest bank in Nigeria, in terms of balance sheet position. Total assets rose to N5.1 trillion by September 2016, representing 21.6 per cent growth on N4.2 billion recorded at the beginning of this year. Customer deposits rose by 10.9 per cent to N3.3 trillion as against N2.97 trillion recorded by the year ended December 31, last year. Net customer loans and advances closed September 2016 at N2.2 trillion, an increase of 22.2 per cent on N1.8 trillion recorded at the beginning of the year.

    The report indicated that gross earnings rose by 7.0 per cent to N417.3 billion in third quarter of the year as against N390 billion recorded in comparable period of 2015. Net-interest income had risen by 5.2 per cent to N202.9 billion in 2016 as against N192.9 billion in 2015. Non-interest income jumped by 56.5 per cent to N131 billion in third quarter 2016 as against N83.7 billion in third quarter of last year. Operating income rose by 20.7 per cent to N333.9 billion as against N276.6 billion. The group increased impairment charge for credit losses from N46.6 billion to N114.7 billion while operating expenses reduced by 5.1 per cent to N161.8 billion as against N170.4 billion. Profit before tax thus declined marginally by 3.5 per cent from N59.6 billion to N57.5 billion. Profit after tax also dropped by 15.3 per cent to N42.5 billion in third quarter 2016 as against N50.2 billion in third quarter 2015.

    Sterling Bank Plc rode on the back of increasingly better operating and credit management efficiency to build up the quality and profitability of its core banking business in the third quarter.

    Key extracts of the interim report and accounts of Sterling Bank for the nine-month period ended September 30, this year showed considerable improvements in key underlying fundamentals of the bank as it continues to grow its main focus of retail banking.

    The report showed that net interest margin, which measures the profitability of the core lending business, improved to 8.5 per cent in third quarter of the year as against 7.9 per cent in comparable period last year. The proportion of non-performing loans (NPL) to gross loans and advances, which indicates assets quality and the efficiency of the credit risk management, also improved significantly from 4.8 per cent December 2015 to 2.5 per cent in third quarter 2016. This brings Sterling Bank well ahead of the 5.0 per cent industry thresholds for NPL set by the Central Bank of Nigeria (CBN). The bank’s cost of funds also improved to 5.3 per cent in third quarter 2016 compared with 6.2 per cent in corresponding period of 2015.

    Further analysis of the financial statement showed that net interest income rose by 37.6 per cent from N30.2 billion in third quarter 2015 to N41.5 billion in third quarter 2016. Non-interest income, however, reduced by 47.6 per cent to N10.8 billion as against N20.5 billion mainly because of 34.2 per cent decline in fees and commission. This moderated the gross earnings to N79.65 billion in third quarter 2016 as against N81.81 billion in comparable period of 2015.

    With curtailed increase of five per cent in total expenses in spite of a 17.9 per cent inflation rate year-on-year as at last September, profits before and after tax stood at N6.07 billion and N5.54 billion in third quarter of the year. Profits before and after tax were N8.30 billion and N7.55 billion in third quarter of last year.

    The balance sheet of the bank emerged stronger during the period. Net loans & advances increased by 46.2 per cent to N495.3 billion last September as against N338.7 billion recorded at the beginning of this year. This was driven primarily by foreign exchange revaluation. Customer deposits also improved from N590.9 billion as at December 31, 2015 to N595.1 billion last September. Total assets excluding contingent liabilities increased by 11.4 per cent to N890.3 billion as against N799.5 billion at the start of the year.

  • Investors shift to low-priced stocks to beat recession

    Investors appeared to be showing preference for low-priced equities, otherwise known as penny stocks, as continuing decline in share prices at the stock market brings several growth stocks around the 100 kobo mark.

    Trading reports by the Nigerian Stock Exchange (NSE) showed that low-priced stocks have dominated activities charts in recent period, in what market analysts regarded as a shift of emphasis from liquidity to potential for higher dividend yield and capital appreciation.

    In the immediate past week, three stocks, which trade around N1 were the most active. The trio of Sterling Bank PLC, FCMB Group PLC and Transnational Corporation of Nigeria accounted for 250.205 million shares worth N237.138 million in 3,654 deals, representing 28.6 per cent of the total equity turnover volume. Total turnover at the NSE last week stood at 873.838 million shares worth N8.024 billion in 15,944 deals.

    In the previous week, the trio of FBN Holdings Plc, Access Bank PLC and FCMB Group PLC also accounted for 226.665 million shares worth N757.967 million in 1,879 deals, representing 33.4 per cent of the total equity turnover volume for the week.

    Head, Financial Advisory Group, GTI Capital Limited, Mr Hassan Kehinde, said the trend showed that investors were taking earnings and dividend yields as major consideration in their portfolio allocation.

    According to him, with the low share prices of several stocks, there is potential for good dividend yields by the end of this year notwithstanding the depressed bottom-line due to the tough operating environment.

    FBN Holdings Plc, the holding company for First Bank of Nigeria and its previous subsidiaries, had grown its total balance sheet to N5.1 trillion by the third quarter of this year as the financial conglomerate pooled gross earnings of N417.3 billion within nine months.

    Key extracts of the nine-month report showed that FBN Holdings retained its leading position as the largest bank in Nigeria, in terms of balance sheet position. Total assets rose to N5.1 trillion by September 2016, representing 21.6 per cent growth on N4.2 billion recorded at the beginning of this year. Customer deposits rose by 10.9 per cent to N3.3 trillion as against N2.97 trillion recorded by the year ended December 31, last year. Net customer loans and advances closed September 2016 at N2.2 trillion, an increase of 22.2 per cent on N1.8 trillion recorded at the beginning of the year.

    The report indicated that gross earnings rose by 7.0 per cent to N417.3 billion in third quarter of the year as against N390 billion recorded in comparable period of 2015. Net-interest income had risen by 5.2 per cent to N202.9 billion in 2016 as against N192.9 billion in 2015. Non-interest income jumped by 56.5 per cent to N131 billion in third quarter 2016 as against N83.7 billion in third quarter of last year. Operating income rose by 20.7 per cent to N333.9 billion as against N276.6 billion. The group increased impairment charge for credit losses from N46.6 billion to N114.7 billion while operating expenses reduced by 5.1 per cent to N161.8 billion as against N170.4 billion. Profit before tax thus declined marginally by 3.5 per cent from N59.6 billion to N57.5 billion. Profit after tax also dropped by 15.3 per cent to N42.5 billion in third quarter 2016 as against N50.2 billion in third quarter 2015.

    Also, Sterling Bank Plc rode on the back of increasingly better operating and credit management efficiency to build up the quality and profitability of its core banking business in the third quarter.

    Key extracts of the interim report and accounts of Sterling Bank for the nine-month period ended September 30, this year showed considerable improvements in key underlying fundamentals of the bank as it continues to grow its main focus of retail banking.

    The report showed that net interest margin, which measures the profitability of the core lending business, improved to 8.5 per cent in third quarter of the year as against 7.9 per cent in comparable period last year. The proportion of non-performing loans (NPL) to gross loans and advances, which indicates assets quality and the efficiency of the credit risk management, also improved significantly from 4.8 per cent December 2015 to 2.5 per cent in third quarter 2016. This brings Sterling Bank well ahead of the 5.0 per cent industry thresholds for NPL set by the Central Bank of Nigeria (CBN). The bank’s cost of funds also improved to 5.3 per cent in third quarter 2016 compared with 6.2 per cent in corresponding period of 2015.

    Further analysis of the financial statement showed that net interest income rose by 37.6 per cent from N30.2 billion in third quarter 2015 to N41.5 billion in third quarter 2016. Non-interest income, however, reduced by 47.6 per cent to N10.8 billion as against N20.5 billion mainly because of 34.2 per cent decline in fees and commission. This moderated the gross earnings to N79.65 billion in third quarter 2016 as against N81.81 billion in comparable period of 2015.

    With curtailed increase of five per cent in total expenses in spite of a 17.9 per cent inflation rate year-on-year as at last September, profits before and after tax stood at N6.07 billion and N5.54 billion in third quarter of the year. Profits before and after tax were N8.30 billion and N7.55 billion in third quarter of last year.

    The balance sheet of the bank emerged stronger during the period. Net loans & advances increased by 46.2 per cent to N495.3 billion last September as against N338.7 billion recorded at the beginning of this year. This was driven primarily by foreign exchange revaluation. Customer deposits also improved from N590.9 billion as at December 31, 2015 to N595.1 billion last September. Total assets excluding contingent liabilities increased by 11.4 per cent to N890.3 billion as against N799.5 billion at the start of the year.

  • Amaechi urges investors to focus on shipping

    Amaechi urges investors to focus on shipping

    The Federal Government has urged investors in the maritime industry to focus on shipping business and provide services at competitive prices to boost the nation’s economy

    The government has also advised foreign shipping companies and local collaborators to stop imposing additional surcharges on importers without prior consultation with the relevant government agencies to avoid sanctions.

    The Minister of Transport Rotimi Amaechi  who spoke yesterday at the World  Maritime Day celebration in Lagos also urged investors to take advantage of the Cabotage Vessel Financing Fun (CVFF) in order to boost ship building and repair facilities and generate more money for the country.

    He identified non-competitiveness, low level of investment, lack of fund, low implementation and enforcement of existing laws as the major challenges facing the sector.

    To address the challenges facing the sector, Amaechi said the Federal Government  has approved the construction of a Deep Sea Port at Lekki, in Lagos, to complement the existing ports.

    He said the Federal Government is also addressing the multiple challenges in the sector by finding solutions to the issue of capital flight, creation of more jobs for youth, provision of opportunity for sea training of graduate cadets as well as encouraging the resuscitation in the ship building and repairs sub-sector of shipping.

  • ‘Nigeria still attractive to investors’

    The Minister of Industry, Trade and Investment, Okechukwu Enelamehhas said inspite of the challenges in the country’s manufacturing sector, Nigeria continues to be an attractive destination for investors.

    The Minister, who spoke at an investment conference in Lagos, with the theme, ‘An economy at crossroads, Thriving in the face of new realities’ said Nigeria has a resilient private sector with skilled low-cost labour, large market with potentials to be the hub, or entry point for the West African market.

    The Special Assistant on Media, to the Minister, Constance Ikokwu, quoted Enelama as saying that “Nigeria’s attraction is owed to three main attributes, positive fundamentals and macro-economic outlook, investment incentives; and a favorable business climate.

    “There is also relatively diversified economy, fast growing financial services sector and free flow of investment capital into the economy. There is an amended company tax laws, five-year pioneer status in 71 industries, export incentives and duty draw backs, among others

    “Nigeria has a very favourable business climate the emphasis is on a relatively stable political climate, improved economic policy as well as consistency in that area, existing and ongoing investment in infrastructure such as power and transport.”

    The minister assured that the strategic focus of the government’s master plan for diversification and growth of the Nigerian economy (MITI Plan) is partnering with private and development capital to mobilise resources.

    He added that the nation needs to generate the right investor confidence, as well as create an economic framework for a diversified and inclusive economy.

     

  • FCT woos investors with road rehab

    FCT woos investors with road rehab

    The Federal Capital Territory (FCT) is seeking to attract investors through a good road network, reports GRACE OBIKE

    THERE is a reason the nation’s capital city centre is looking good these days, its roads fixed: to entice investors.

    At his inauguration, Minister of the Federal Capital Territory (FCT) Mallam Muhammed Bello promised that one of the steps he will be taking will be the reconstruction and rehabilitation of the FCT road network, especially those located in the city centre.

    Since then most road networks that needed repairs or construction have been fixed or are being fixed within and outside the city centre.

    Some have sniffed at the effort, saying the repairs should instead be in areas outside the city centre which, to them, is already fine.

    Cab driver Emeka David complained that the rehabilitation work is being limited to the city centre, which to him already has a good road network will not make much impact.

    He said, “The road in town to me is already good, he should be taking this work to satellite towns and area councils to make better impacts.”

    Others have countered that  fixing the city centre roads will get investors rushing into town, a development that will generate jobs and help in reflating the economy.

    The Public Relations Officer NASCO group and Royal Pacific group of companies, Haroun Audu explained that the group had met with the Minister earlier in the year and he informed them that part of the mandate of the President in light of the security challenges that has affected Nigeria’s economic performance is to create conducive environment for more private businesses in the FCT so that our economy can grow especially from the point of view of earning foreign exchange.

    Muhammed, according to Audu, passed on the information that there are certain critical arteries of roads, within the Federal Capital that he wants to open up to ease traffic to make it easier for the private sector, government and international people to enjoy navigating around Abuja, we are very excited, that shortly after meeting with him, the road is under construction.

    He said, “He informed them that the President has the intention of creating an enabling business environment for the private sector in Abuja, we brought to his attention the problem we were experiencing with the lack of road network and drainage in the part of the Central Business district where our structure is situated, now he has fulfilled his promise and Julius Berger Plc has been sent to work on the road, they have begun construction of this road that has been bad for so many years in the city centre, which is truly a welcome development.

    ”In the face of global and local challenges that have impacted the nation’s business landscape, the soon-to-open Fraser Suites Abuja (2017) is heralded as a major boost to the local economy, and a bright-spark catalyst for international travel and tourism. But by far, the obvious advantage of this project to the Nigerian economy connects to the clarion call for economic diversification, seeing that it will boost the nation’s foreign exchange earnings in exponential terms.

    ”The facility features 126 Gold-Standard residences that combine comfort, style & technology with outstanding facilities and exclusive in-house services. The location, size and scale of Fraser Suites Abuja will necessarily and automatically avail multiple job and employment openings, to be drawn from the local Nigerian hospitality industry value chain.

  • GNI confirms acquisition, clarifies status of new investors

    Great Nigeria Insurance (GNI) Plc at the weekend confirmed earlier exclusive reports by The Nation that  a new core investor had acquired 75 per cent majority equity stake in the insurance company.

    The Nation had reported that Insurance Resourcery and Consultancy Services Limited (IRCSL) had acquired 75 per cent equity stake previously held indirectly by Wema Bank in a deal valued at N3.24 billion. A total of 2.87 billion ordinary shares of 50 kobo each of GNI were crossed in a single deal to Insurance Resourcery at N1.13 per share through the negotiated cross deal window of the Nigeria Stock Exchange (NSE).

    At N1.13 per share, the transaction cost represents 126 per cent increase on the current market value of GNI, which has stagnated at its nominal value of 50 kobo per share. GNI currently has total paid up capital of 3.827 billion ordinary shares of 50 kobo each with a market capitalisation of N1.91 billion.

    In a regulatory filing at the weekend, which confirmed the conclusion of the acquisition, GNI clarified that IRCSL is a special purpose vehicle representing a consortium of investors. The insurance firm did not however disclose the identities of the new investors.

    GNI said the transaction value underscores its inherent value citing the company’s attractive real estate portfolio, debt-free balance sheet and long history as one of Nigeria’s oldest insurance companies.

    Managing Director, Great Nigeria Insurance (GNI) Plc, said the conclusion of the acquisition would enable the company to focus on further unlocking its vast potential with a view to delivering better returns to shareholders.

    According to her, the directors of the company would focus on consolidation of its market share in identified niche markets, excellent customer service, prompt claims payment and aggressive investment income to in the overall strategy to improve the company’s performance and increase shareholders’ return.

    Apparently referring to its inability to meet the 20 per cent free float for its category of listing on the NSE, GNI stated that IRCSL was committed to maintaining the listing of the company on the Exchange, adding that there are ongoing discussions with appropriate regulatory authorities.

    A report by the Exchange indicated that GNI currently has 16 per cent of its issued shares in the hands of the general investing public as against the minimum requirement of 20 per cent for its category of listing.

    Following Central Bank of Nigeria (CBN)’s banking regulatory regime that required banks to either divest from non-core banking subsidiaries or form a holding company to hold those subsidiaries, Wema Bank had opted to divest from its non-core banking businesses including GNI. The bank had since divested from Wema Insurance Brokers Limited, Wema Registrars Limited, Independent Securities Limited and Whyte Cleon Limited. It also integrated operations of four subsidiaries into its core banking business including Wema Asset Management Limited, Wema Securities and Finance Plc, Wema Homes (Savings and Loans) Limited and Wise Properties Limited. Wema Bank had 100 per cent equity stakes in the trio of Wema Registrars, Wema Insurance Brokers and Whyte Cleon Limited while it had 94.7 per cent stake in Independent Securities and 75 per cent in GNI.

  • Why Lagos is experiencing influx of investors – Ambode

    Why Lagos is experiencing influx of investors – Ambode

    Lagos State Governor, Mr. Akinwunmi Ambode on Saturday said the State has witnessed significant influx of investors and visitors in recent times, saying it was largely due to the aggressive upgrade of infrastructure, especially road construction and rehabilitation.

    Governor Ambode, who spoke in Somolu Local Government at the climax of the inauguration of 114 roads constructed across the 20 Local Government Areas (LGs) and 37 Local Council Development Areas (LCDAs), said each infrastructure provided has further improved the status of Lagos, both locally and internationally.
    The Governor who was represented at the commissioning of two of the 114 roads-Okesuna and Anifowoshe roads, in Somolu LG by the Commissioner for Tourism, Arts & Culture, Mr. Folarin Coker ,said from provision of security apparatus, roads, ‘Light Up Lagos’ project and other infrastructure has further improved the confidence of tourists and investors in the State.

    According to him, “Construction of 114 roads not only gives access, but further boosts the State’s economy, social welfare, creates employment and provides other benefits within the state.”

    In Isolo LCDA, Governor Ambode inaugurated Panada/Lafenwa Road, off Mushin Road, in a ceremony attended by the Oba of Isolo, Oba Kabiru Adelaja, All Progressives Congress (APC) Chairman in Lagos State, Chief Henry Oladele Ajomole, party chieftains.

    The Governor, who was represented by the APC South West Women Leader, Mrs. Kemi Nelson, said that the construction of the roads across the 57 Councils has made the Lagos economy the most viable in the country assuring that no effort would be spared to make life more comfortable for residents.

    Earlier in her welcome address, Sole Administrator of the Council, Hon. Abimbola Osikoya, thanked the governor for the promise kept in the construction of the road, noting that the road had been unmotorable and would no doubt improve the economical pursuit of the residents of the area, especially because of its proximity to the popular Aswani Market.

    At the inauguration of Olorunfunmi Street in Oworonsoki and Okeowo-Somorin Street in Ifako-Gbagada, both in Kosofe LG, the Governor said the selection of 89 local contractors to execute the project was a deliberate strategy to empower the people and stimulate the local economy.

    The Governor was represented by a member of the House, Hon. Bayo Oshinowo.

    A House of Representatives member, representing Ikeja Constituency, Hon. James Faleke lauded Governor Ambode’s effort at turning around the face of Lagos.

    Faleke who spoke at the commissioning of Abiodun Jagun Street and Ishola Bello Street, both in Ojodu LCDA, where he represented the Governor.

    “We cannot help but commend the efforts of our astute governor in this state. Governor Ambode has demonstrated that he is a man who thinks outside the box. He has been able to make judicious use of funds even in these very trying times,” Faleke said.

    In Ikeja Local Government, Governor Ambode who inaugurated Onilekere Street, where he was represented by Iyaloja- General, Folashade Tinubu-Ojo, said Lagosians should expect nothing but a better and safer Lagos in the next three years.

    During the commissioning of the road in Olu Akerele Street, also in Ikeja LG, former Speaker of the Lagos State House of Assembly, Adeyemi Ikuforiji lauded Governor Ambode’s administration for taking the dividends of democracy to the grassroots.

    At Apapa LG, Governor Ambode through the Commissioner for Waterfront Infrastructure Development, Engr. Ade Akinsanya and a member of the Lagos State House of Assembly representing Apapa Constituency 1, Hon Mojisola Lawal, commissioned 648 meters North Avenue Road and 227meters Caulcrick Road.

    In his address, Sola Administrator of Apapa Local Government, Mr. Tunde Alao, commended Governor Ambode for the initiative to engage indigenous contractors, describing it as wise economic decision especially in the face of the dwindling rate of Naira against the dollar.

    Governor Ambode also inaugurated Jinadu Street and Folawiyo Bankole Street in Itire-Ikate LCDA and was represented by Senator Tokunbo Afikuyomi.

  • Staco Insurance raises N1.6b new equity funds from special investors

    Staco Insurance Plc has raised N1.6 billion new equity funds from its recent special placement.

    This was concluded with the listing of the supplementary shares on the Nigerian Stock Exchange (NSE).

    Staco had floated a special placement of 4.0 billion ordinary shares of 50 kobo each at the nominal value of 50 kobo,  to raise N2 billion new equity funds. Against the dormancy at the primary market, the insurance company recorded 80 per cent subscription rate.

    A total of 3.2 billion ordinary shares of 50 kobo each that resulted from the special placement were listed at the weekend at 50 kobo per share. The addition of the new ordinary shares increased Staco’s issued share capital from 6.141 billion ordinary shares to 9.34 billion ordinary shares.

    The new listing increased Staco’s market capitalisation to N4.67 billion. Staco, like most other insurance stocks, has remained dormant at its nominal value of 50 kobo as the insurance sector struggled with the hangover of assets mismatch and general slowdown in insurance and business activities.

    The latest audited report and accounts of the company for the year ended December 31, 2015, showed that the insurance company recorded a gross premium income of N6.19 billion in 2015. The company’s net premium stood at N4.68 billion while profit before tax was N168.61 million. However, revenue declined by 3.9 per cent from N5.96 billion in 2014 to N5.73 billion in 2015.

    Staco Insurance emerged in July 1994 as a result of discreet acquisition and restructuring carried out on Alpha Insurance Plc, which had been incorporated in Nigeria in 1991 and subsequently licensed to transact all classes of insurance business in October 1994. It commenced general insurance business and special risks under the new name in October 1994.

    Most insurance stocks are still at their lowest prices. More than 53 per cent of insurance stocks are trading at nominal value of 50 kobo, 20 per cent are hovering around nominal value and only about 17 per cent are trading above 100 kobo mark. The seeming widespread downtrend in the sector is the hangover of the previous negative perception of the sector.

    The losses and depressed balance sheets in the insurance sector were largely tied to the recession at the capital market. With huge funds raised during the capital market boom, and following the trails of squandering banks, insurance companies had turned mainly to the capital market to invest their bubble-induced assets. Small and medium insurance companies, which had metamorphosed into big companies with outstanding shares and equity funds larger than size of business, left the conservative nature of risk assessment and provision-the core expertise of insurers, and turned into speculators. Unmindful of the unscrupulous linkage between banks’ deposits and the bubble share prices in the market, insurance companies were caught napping when the financial services regulators pulled the plugs.

    Heavily exposed to the equities market, unyielding depression in shares prices had directly built up losses and provisions in the profit and loss accounts and balance sheets of insurance companies. On the other end, share prices of insurance companies have generally been the worst hit by the recession as a hangover of negative industry perception, streak of impaired portfolio-induced losses and reticent management combined to single out insurance sector as the highpoint of the bear market.

  • Embrace mutual funds, experts tell investors

    Investors have been urged to diversify their investments and hedge against the risks of volatility in the financial markets by buying into professionally managed collective investment schemes, otherwise known as mutual funds.

    Against the background of the decline in share prices, devaluation of Naira and the rising inflation, investments experts at Cordros Group advicd investors to use professionals and assets diversification to minimise risks and enjoy competitive returns.

    Acting Managing Director, Cordros Asset Management Limited(CAML), a subsidiary of Cordros Capital Limited, Mrs. Olafisayo Ogunbiyi-Badaru, said that despite the  volatility in the market, there are still investment opportunities that investors can take advantage of by using the professional services that will ensure steady income.

    According to her, in line with CAML’s strategy   to create an array of products suitable for the underserved retail segment of the economy, the company is currently offering 10 million units of Cordros Money Market Fund (CMMF)  at N100 per unit, with  minimum subscription  of N10,000.

    “This is in line with the company’s strategy   to create array of products suitable for the underserved retail segment of the economy. The fund is targeted at the retail investors and the main objective is to provide capital preservation, regular income, liquidity and capital appreciation,” Ogunbiyi-Badaru said.

    She explained that the fund’s investment objective is to provide capital preservation and regular income to unit holders by investing in high-quality money market instruments recognised by the Securities & Exchange Commission (SEC).

    She added that the fund is attractive to all investors who desire a steady stream of income and have low risk appetite.

    “High networth individuals with available short term ash balances can also take advantage of the fund to earn higher rates of return. Institutional clients who desire liquidity and easy accessibility to their funds with competitive returns can also take advantage,” Ogunbiyi-Badaru said.

    Also, Group Managing Director, Cordros Capital Limited, Mr. Wale Agbeyangi said the CMMF offers investors professional fund managers to avoid the mistakes of the amateur investor.

    He outlined that the fund consists of seasoned professional advisers led by Vetiva Capital Management Limited as the Issuing House, STL Trustees Ltd as the Trustee, African Prudential Registrars Ltd as Registrars to the Fund, Babalakin & Co as Solicitor to the Trustees, UBA Plc Global Investor Services as the Custodian, Access Bank Plc as the Receiving Bank and TAC Professional Services as the Reporting Accountant.

  • ‘African countries need reforms in oil industry to attract investors’

    PricewaterhouseCoopers (PwC) has urged African governments to reform their oil and gas industries to attract investors.

    In the PwC’s 2016 Africa oil & Gas Review, the international advisory firm stated that in the face of declining global oil prices, the continent still offers significant opportunities in the oil and gas industry.

    It noted that regardless of the  bleak landscape of the industry, there is still hope for the sector to attract investors’confidence.

    According to ESI Africa, PwC Africa Oil & Gas advisory leader, Chris Bredenhann, said: “It is an opportune time for local governments that want to attract oil and gas investors to reform their regulatory, fiscal and licensing systems.”

    The report highlighted that uncertain regulatory frameworks are one of the main issues that organisations in the oil and gas industry are struggling with. For instance, in South Africa, the study noted that there have been commitments to address concerns since last year, and the intention of government to separate regulations for oil and gas from the mining industry was communicated.

    However, South Africa’s Minerals and Petroleum Resources Development Act (MPRDA) has not yet been changed and approved to reflect such modifications.

    The report stated that in Tanzania the regulatory environment remains uncertain despite the promulgation of the Petroleum Act in 2015 while on the other hand, in Nigeria, the government has failed to pass the Petroleum Industry Bill (PIB) into law.

    The research found that by the end of last year, Africa had a proven natural gas base of 496.7 trillion cubic feet (Tcf), down marginally from 2014, with 90 per cent of the continent’s natural gas production still coming from Nigeria, Libya, Algeria and Egypt.

    PwC’s analysis suggests that is the ideal time for the industry to consider introducing training programmes to upskill levels and company standards in order to give local players a chance to enter the sector when activity picks up again.

    “The oil and gas industry is faced with a higher entry barrier because technology and jobs tend to be more complex, highly specialised and costly,” Bredenhann noted.

    Another point made by the research was that basic as well as technological infrastructure is essential for the oil and gas sector to thrive.

    “Furthermore, players must look at the state of the industry as an opportunity to reinvent themselves. Given the state of the industry, we think that stakeholders must also consider making changes to their business models.

    “Change is the way to survive in the ‘new energy future.’ We need to see new business models, new products, new energy sources and new strategies to meet the new reality,” Bredenhann added.