The Nation Newspaper

Tag: investors

  • Lagos govt restates support for investors

    The Lagos State government has reiterated its commitment to support investments by creating an environment that will always be conducive for businesses to strive.

    The Special Adviser in the Office of Overseas Affairs and Investment, Prof Ademola Abass, said the state the government was poised to take business support to the doorsteps of investments across the state.

    Abass spoke when he visited the office of Mercedes Benz Nigeria to express government’s appreciation to the company for its commitment and confidence in Lagos State, despite the prevalent hazy business climate in the country.

    The special adviser hailed the company for its vote of confidence in Lagos State to locate its business.

    He assured the company that the state government established the Office of Overseas Affairs and Investment to serve as a one-stop shop for investment matters in the state.

  • Investors, private sector back Lagos tourism initiatives

    •As sponsors queue up for One Lagos Fiesta

    The drive by the Lagos State Government to create a private sector driven tourism economy has earned the full confidence of multinational companies, notable entrepreneurs’ business owners and managers alike across the State.

    This was the general consensus at a stakeholders review meeting held with sponsors of the Lagos Street Carnival and the forthcoming end of year eight days One Lagos Fiesta programme to be held across the five divisions of the State.

    According to a statement by Mr. Fola Adeyemi, the Permanent Secretary in the Ministry of Tourism, Arts and Culture, the Street Carnival was organised by Heat Limited in conjunction with the Ministry as a private sector driven programme of the State.

    He said sponsors and investors are already lining up for the One Lagos Fiesta including, Guaranty Trust Bank, GLOBACOM, Nigeria Breweries Ltd, Pepsi Nigerian Plc, Access Bank, Dangote Nig. Plc, Multi choice, JMG Generators, Eko Atlantic City, Eko Hotels, South Energy X, among others.

    Adeyemi said aside the fact that the carnival was a private driven initiative and only backed with institutional support by the State Government, the private sector equally provided funds and support to ensure the success of the programme.

    He said the quantum of tourism events in the State has taken an upward leap since 2015 with the emergence of the Governor Akinwunmi Ambode Administration and the state policy of project T.H.E.S.E which stands for Tourism, Hospitality, Entertainment and Sport for Excellence.

    He recalled that expansion of the former Lagos Countdown event into One Lagos Fiesta, a multi-location event with simultaneous concerts across the five administrative divisions of the state and the huge success recorded, till date has further proven to the private sector that Governor Ambode’s statement that the creative industry hold the key to a booming economy in Lagos was fast becoming a reality.

  • Investors gain N4tr in equities

    Investors gain N4tr in equities

    Equities investors in the Nigerian Stock Exchange (NSE) have accumulated capital gains of about N4 trillion over the past 11 months.  Low valuations, improved macro economy and more coordinated monetary policy management, led to sustained considerable rally across the stock market.

    Benchmark indices at the NSE showed average year-to-date gain of 41.19 per cent for the 11-month period ended November 30, 2017, equivalent to net capital gain of about N3.97 trillion, representing a two-month increase of 33.7 per cent on net capital gain of N2.97 trillion recorded at the end of third quarter (Q3).

    With largely positive and steady Q3 corporate earnings and stronger macroeconomic data, quoted equities rode above recurring profit-taking transactions, to sustain month-on-month positive trend.

    With a net capital gain of N3.97 trillion by November, investors have almost technically recovered what they had lost in the past three years, a major recovery that could reverberate across many other sectors, especially finance and investment institutions with large exposures to equities.

    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 general 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.

    Aggregate market value of all quoted equities closed November 2017 at N13.215 trillion as against its opening value of N9.247 trillion for the year, representing net capital gain of N3.968 trillion. The All Share Index (ASI)-the main common price index that tracks share prices at the NSE, indicated 11-month return of 41.19 per cent, rising from the year’s opening index of 26,874.62 points to close this weekend at 37,944.60 points.

    Investors in the banking sector were far ahead of other sectors with the NSE Banking Index indicating average year-to-date return of 71.60 per cent for the 11-month period. The NSE 30 Index, which tracks the 30 most capitalised companies, posted above average return of 43.51 per cent, underlining the fact that the recovery was partly driven by large-cap stocks. The NSE Consumer Goods Index ended the period with 28.87 per cent. The NSE Industrial Goods Index recorded the second highest sectoral gain of 33.08 per cent. The NSE Insurance Index posted a modest return of 10.97 per cent. However, the NSE Oil and Gas Index remained on the downtrend with a negative return of -7.01 per cent.

    The recovery also impacted positively on the Nigerian pension industry and ethical finance segment. The NSE Pension Index, which tracks stocks specially screened in line with pension investment guidelines, showed that pensioners might be in for wider dining tables with above-average return of 62.58 per cent. The NSE Lotus Islamic Index-which tracks stocks that comply with the Islamic law, recorded considerable return of 32.58 per cent, underlining the attractiveness of ethical investment in the midst of the rally. The NSE Lotus Islamic Index excludes interest-based banks, breweries, gambling and overleveraged companies among others.

    The 11-month performance further confirmed quoted equities as the most attractive asset class for the period. With inflation rate at 15.9 per cent and the benchmark interest rate at 14 per cent, average inflation and interest-adjusted return remains in double digit at about 11.3 per cent.

    The past two months had built on considerable gain made by the third quarter of the year. Aggregate market value of all quoted equities on the NSE had closed the third quarter at N12.217 trillion, representing net capital gain of N2.97 trillion or 32.1 per cent. The ASI had also crossed nine levels to close September at 35,439.98 points, representing an increase of 31.87 per cent.

    Quarter-on-quarter analysis showed that the ASI has already surpassed its third quarter performance within the first two months of the fourth quarter. Between October and November, the ASI recorded average gain of 7.07 per cent compared with 7.01 per cent recorded in the third quarter. The performance so far in the fourth quarter was driven largely by the industrial goods and banking sectors.

  • Ambode woos investors for Okokomaiko-Seme Border project

    Ambode woos investors for Okokomaiko-Seme Border project

    Lagos State Governor Akinwunmi Ambode said the government will partner any investor willing to key into his administration’s infrastructural renewal drive.

    Such partnership, he said, would be a win-win situation for the overall benefit of the people.

    At an interactive session with members of the business community and informal sector, the governor said public private partnership was critical to acceleratimg development.

    Ambode said the state would be willing to partner with any investor interested in taking up the second phase of the Mile 2 to Seme Border ten-lane road project.

    He said: “Work is already ongoing from Eric More to Okokomaiko but we are willing to partner with any investor interested in taking up the construction of the second phase which is ten-lane road from Okokomaiko to Seme Border.

    “If we are able to achieve that, it will open up and transform the western axis, especially Badagry forever, and the project will also complement the massive projects being undertaken in the axis.”

    Ambode said plans were  at advanced stages to ensure constant power supply to all homes and businesses by the end of 2018.

    He said though the political geography of the country was affecting the strategy to solve the power challenges being control by the Federal Government, but the State Government had devised policies and strategies to short-circuit power generation, transmission and distribution to ensure constant power supply to the people.

    The State Government, he said, is also in talks with electricity distribution companies operating in the state to see possibility of supplying 24/7 power to residents at a bit higher tariff than what currently obtains subject to agreement of all stakeholders, while government would be the guarantor of the people.

    The Governor also revealed that the legal framework to prevent power theft and also legitimise the concept of power generation had already been sent to the State House of Assembly for approval.

    He said: “Presently, we have less than 1,000MW in Lagos and the fundamental issues remain with generation, transmission and then distribution. Who is transmitting? It is still owned primary by the Federal Government but in Lagos State, we have become creative and we have done Independent Power Project (IPP) before through which we were able to generate 47.5MW which was distributed short-circuiting transmission.

    “So, if it works, does it look like a template we can now use to get power freedom or what we call power security? If we say we are the fifth largest economy in Africa and we are not in control of how power is generated in an economy that wants to move from fifth to third, then something is wrong. So, what we are saying is let’s find a way to short-circuit them within the ambit of the law.

    “If the law allows you to have independent power and going through the regulatory commission then you are smart enough to do that. The only thing we have done is to get permission from the Nigerian Electricity Regulatory Commission (NERC) to create clusters of embedded power in our state and if we are able to do it, it becomes a test case for the rest of the economy.”

  • NLPGA, investors discuss $10b policy lifeline

    NLPGA, investors discuss $10b policy lifeline

    The Nigerian Liquefied Petroleum Gas Association (NLPGA), investors and stakeholders in the liquefied petroleum gas (LPG) industry have discussed on how to tap into the over $10billion investment opportunities that would be unlocked by the national LPG policy unveiled by the Federal Government.

    The discussion took place at the NLPGA’s annual Chief Executive Officer’s Breakfast Meeting held in Lagos. The meeting brought together LPG producers, marketers, International Finance Corporation, UBA, Sterling Bank and other stakeholders who shared ideas on the investment opportunities that are expected to be created by the national LPG policy and how industry operators tap into them.

    NLPGA’s Executive Secretary, Mr. Joseph Eromosele, e explained that the overall goal of the LPG policy was to promote the wider use of LPG in domestic activities, power generation, autogas and industries while increasing national consumption to five million metric tonnes in five years.

    According to him, over $10billion can be generated if 50 per cent of the current kerosene and firewood users in the country switch to cooking gas by 2019. This, he added, offered huge investment opportunities for LPG players.

    He said: “Only five per cent of the Nigerian population utilises LPG for cooking while 56 per cent depends on firewood and 27 per cent on kerosene. Over 30 million households and more than 100 million Nigerians depend on firewood as a source of energy for cooking but this has come with collateral damage to human health, environment through deforestation, and the economy. With the LPG policy, we will be able to drive broader penetration of LPG into homes, especially the low-income households in rural areas.

    “Over $10 billion will be generated for the economy from the switch of 50 per cent kerosene and firewood users by 2019.  Estimated 500,000 – 1,000,000 jobs will be created in the LPG value chain within the next two years with the planned Kerosene to LPG switching programme.”

    The Deputy President, NLPGA, Mr. Nuhu Yakubu, said the policy also aims to use LPG to displace low pour fuel oil (LPFO) and diesel as popular fuel among industrial users while deepening applications in agriculture and commercial establishments.

    “Yakubu said: “The policy will also promote the use of LPG for off and on grid power generation. It will provide the environment for the use of LPG in the automotive industry with a target conversion of 10 per cent of the country’s vehicle population. These are investment opportunities for industry stakeholders.”

    The Programme Manager, National LPG Expansion Implementation Plan in the Office of the Vice-President, Mr. Dayo Adeshina, lamented that 18 states in northern Nigeria are currently suffering from desertification and deforestation because several millions of the citizens rely on firewood for cooking.

    Adeshina warned that if the situation continues unchecked, states in the southern part of the country could soon start experiencing deforestation, a development he said shouldn’t be allowed.

    He noted that only increased utilisation of LPG could halt deforestation, which is fast encroaching into new areas of the country. Adeshina added that to deepen LPG usage, more investments were needed in local gas cylinder manufacturing and urged NLPGA members to begin to look at the direction especially with a national LPG policy now in place.

    He decried the shutdown of two cylinder manufacturing plants in Nigeria, adding that some investors had signified interest in manufacturing cylinders in the country.

    Participants at the meeting noted that though the nation’s total domestic LPG consumption had grown from just below 70,000 tonnes in 2007 to 500,000 tonnes in 2016, the improvement in the domestic consumption of LPG only translated to a per capita consumption of only less than 2.5kg. This was compared to the low per capita consumption in selected African countries like South Africa at 7.28kg, Ghana at 9.45kg, and Morocco at 66.27kg, they added.

    According to the participants, some factors responsible for the low consumption level in Nigeria inadequate supply of LPG equipment, high cost associated with the acquisition of cylinders and LPG stoves, insufficient number of jetties and LPG inland storage facilities, excessive import duties and VAT on LPG equipment, and inadequate road and transport network facilities. They also noted lack of access to long-term funds for LPG project in the country and blamed the banks for that.

    Representatives of some of the banks at the meeting enlightened the LPG operators on what they needed to do to attract funding from the banks.

    The meeting ended with the confidence that the LPG policy would spur a revolution in the LPG industry and urged the government to ensure that the policy is fully implemented to the benefit of all Nigerians.

  • Investors raise N1b for Banana Island project

    An indigenous construction firm, Sujimoto Construction, has raised over N1billion from local investors for its ongoing project on Banana Island, Lagos.

    Banana Island has been adjudged as one of the most expensive  abode for the rich. It boasts of the wealthiest Nigerians as residents with  most of the structures  on the Island selling between N250million and N500 million for a terrace house. The Nation learnt that the firm is yet to fix prices for the terraces, but from the design,  sophistication and quality of work, observers said it may inch towards the  going price or lesser.

    According to experts, subscribers are banking on the profile of the company to pay before actual delivery as  a result of their consistency. Little wonder they have raised the huge amount to the extent that the project has been oversubscribed.

    The firm, Sujimoto Construction, has lent credibility and confidence to the Nigerian Real Estate Industry. Sources said the  project, which has been kept a secret by Sujimoto boss,  Mr. Sijibomi Ogundele, is a development of extremely luxurious terrace houses in the heart of Africa’s most expensive neighbourhood.

    However, a reliable source revealed that it will be an iconic project that surpasses the extravagant cliché of homes in Banana Island.  On the features of the houses, Ogundele said it  is a home  with two massive master bedrooms, two luxury and contemporary kitchens , two standard maid’s rooms and a private elevator in each unit.

    He confirmed that it is first of its kind in the country.  He said: “We have a standard and panache in delivering on our projects. What we are delivering is a home that encompasses a  unique and groundbreaking standards. Innovative feats, sophisticated homes and extravagance splendor is our motto.”

  • Investors to use BVN as valid identification

    Investors to use BVN as valid identification

    Investors in the Nigerian capital market will soon be able to use their Bank Verification Number (BVN) as a means of identification as capital market regulators seek to widen the scope of customer verification.

    A circular obtained by The Nation at the weekend indicated that Securities and Exchange Commission (SEC), the apex capital market regulator, has started the process of amending capital market’s rules to pave way for the admission of BVN as part of acceptable means of identification in the capital market.

    The draft of the “proposed inclusion of BVN as a valid means of identification of individual clients in the capital market” stipulates that a capital market operator shall use a combination of electronic and documentary checks to confirm different sources of the same information provided by the clients.

    “The capital market operator may use the Bank Verification Number (BVN) as a means of verifying information provided by the clients,” the rule stated.

    SEC noted that the adoption of BVN was premised on the fact that BVN gives a unique identity that can be verified across the Nigerian banking industry and it is not peculiar to one bank alone.

    According to SEC, the BVN is a nationally acceptable means of identification implemented by all banks in Nigeria as directed by the Central Bank of Nigeria (CBN).

    The Commission stated that the adoption of BVN would help to address issues of identity theft and reduce exposure to fraud while simultaneously promoting financial inclusion of unbanked clients.

    The Economic and Financial Crimes Commission (EFCC) is currently investigating not less than 10 cases of investors’ impersonation. About 20 persons are being investigated by the anti-corruption agency for alleged impersonation and fraudulent attempt to convert investors’ shares into their names.

    Many of the impersonators were operating as syndicates with links across the chain of the capital market transaction. Some of the impersonators had successfully converted and sold other people’s shares but were apprehended when the original owners of the shares reported the illegal transactions.

    Although the details of the investigations are still sketchy because of the confidentiality of the investigations, a source in the know of the investigations confirmed that there were syndicates that took advantage of the dormancy of some investors’ account to surreptitiously prey on such accounts. The source said some of the impersonators specialised in fraudulent conversion of shareholding estates.

    Capital market regulators have responded to recent cases of capital market frauds by tightening existing disclosure rules and sanctions as well as increased collaboration with the law enforcement agencies.

  • Ghanaian investors to explore Nigerian market

    Real estate investors from Ghana are set to test Nigerian real estate market. This is coming on the heels of the planned arrival of a delegation of over 15 Ghanaian real estate companies for the first-ever Ghana Property Show slated to hold in Nigeria on December 9, at the Federal Palace Hotel, Victoria Island, Lagos.

    Chief Executive Officer, Business Marketing and Joint venture Advocacy (BMJA) Service, Mr. Steve Ike, whose company is organising the event, said the delegation will showcase “an impressive array of Ghanaian housing stock.”

    Ike, who spoke at a briefing in Lagos,  stated that the Ghana Property Show in Nigeria has been designed as a unique platform to showcase and market top Ghana-based real estate investment opportunities to interested Nigerian investors and non-resident Ghanaians.

    “Nigerians and Ghanaians are known to share a great a deal of cultural, social and business relationship. For years, citizens of both countries have traded business and exchanged visits, so much so that many Nigerians have found a “second home” in Ghana and vice-versa. This property tradeshow has been long overdue and is now taking place due to overwhelming demand from the hundreds of Nigerian investors and non-resident Ghanaians, who are willing and waiting to invest in Ghanaian real estate,” he explained.

    According to the organisers, Ghana is one of the most attractive African property investment destinations for real estate investors. He listed the benefits of investing in Ghanaian real estate to include: a stable and rapidly growing economy, stable political climate; favourable foreign investment environment; low taxation regime; favourable returns on investment; a friendly people and environment; decent and improving basic infrastructures; remarkable ease of doing business; educated workforce and great food.

    The event, which will also be used to promote deeper and broader economic, cultural and commercial relations between Ghana and Nigeria, will feature general discussions about the Ghanaian investment climate, the real estate industry, as well as related information on the culture, education and sundry socio-economic factors.

    The array of property stock to be showcased at the event will include residential, commercial, retail, hotel/hospitality, and industrial properties. The  coverage area where these properties are located extends from Accra, the Ghana capital city, to Tema, Kumasi and other exciting locations. Already, over 1,000 investors have already been confirmed to attend the event, which would facilitate direct connections between participating companies and potential investors.

    At the event, guests can look forward to special and exclusive offers including immediate sign-up benefits, opportunity to arrange all-expensive paid trips to Ghana, and instant gifts.

  • Trade fair complex: ‘Revocation’ll discourage investors’

    Reactions have continued to trail the purported revocation of the concession of the Lagos International Trade Fair Complex on Mile 2-Badagary Expressway, Lagos which Aulic Nigeria Limited won in 2007 under the Federal Government’s Privatisation programme.

    Aulic Nigeria Limited bidded for and won the concession of the complex for N40 billion in 30 years. The area Aulic won as the concessionaire was 322 hectares of land.

    Senate Ad-hoc Committee Chairman, Senator Solomon Adeola asked the Senate to summon the Inspector-General of Police (IGP), Idris and the Director-General of the Directorate of State Security (DSS), Daura to assist the Ministry of Commerce and Investment as well as the BPE to eject Aulic Nigeria Limited and recover about N6.5 billion accrued revenue over a nine-year period from the company.

    Reacting to the allegation, the concessionaire, Aulic Nigeria Limited, has said the claim was a tissue of lies. It, therefore, urged the police and the DSS to disregard Senator Adeola’s advice  with regards to its ejection from the complex. It maintained that there was no N6.5 billion accrued revenue to recover in the agreement it signed with the BPE in 2007.

    However, Company Secretary and Counsel to Aulic Nigeria Limited, Mr. Dan Udeh said Aulic was not indebted to anybody.

    He said: “Nigeria wants to make its economy grow by encouraging partnerships with local and international stakeholders. If it takes decisions that are inimical to business, it will lose those who have shown interest in developing her economy. How fair is it to allow its citizen to manage one of its assets in a concession agreement of N40b for 30 years and wants to terminate the same concession after nine years, using non-remittance of money to Federal Government as subterfuge?

    “The Federal Government agreed to hand over the entire 322 hectares of land that comprises the complex, but it actually handed over less than 20 per cent of the area under agreement and it wants Aulic to pay for rents it never collected. It is against the logic of fairness.”

    The Company Secretary maintained that Aulic Nigeria Limited as a concessionaire should be encouraged instead of being vilified.

    Udeh regretted that money traders should have paid to Aulic as the concessionaire to enable him remit money to the Federal Government was not paid to the company.

    He said: “Under the concession agreement, all monies paid to government should have been paid to Aulic, which will then fulfill its final obligation to government. The traders’ associations have never paid to Aulic and they keep saying we owe N40 billion.”

    Udeh said he understood that NCP has invited bids for the trade fair complex; even as he warned any person or group interested in bidding for the said complex to desist from doing so or purchase a cylinder of litigations.

    “This is because it will be foolhardy for any sane person or group to buy a property whose case is still pending in the law court.

    “Again, the concession process had an international posture because many international groups were involved in the process as partners. Any further harassment or intimidation may warrant seeking justice in the International Court of Justice.”

  • Fed Govt, investors disagree on naira’s future

    Fed Govt, investors disagree on naira’s future

    The Federal Government and foreign investors have disagreed on the future of the naira.

    Government officials are of the view that the local currency has stabilised against foreign currencies, but some foreign investors  think otherwise.

    Portfolio inflows have risen in the past three months with crude prices rising above $60 (it was $62 yesterday) a barrel and money managers taking heart from a new foreign-exchange trading window in which the naira has converged with the black-market rate.

    That development prompted Central Bank of Nigeria (CBN) Governor Godwin Emefiele and Debt Management Office (DMO) Director-General Mrs. Patience Oniha, informing investors in London that the currency was set to strengthen.

    Finance Minister Mrs. Kemi Adeosun also joined the fray, saying the government saw no significant exchange-rate risk as it prepares to raise $5.5 billion from Eurobonds.

    However, a Bloomberg report said Nigeria’s system of capital controls, multiple exchange rates and the the Nafex trading window would struggle to survive a drop in oil revenue, or sentiment turning against emerging markets, according to investors, including Ashmore Group Plc and Standard Life Aberdeen Plc.

    “At the moment, it’s easy for them to manage the current system and muddle through,” said Brett Rowley, a Managing Director at TCW Group Inc. in Los Angeles, which oversees $200 billion, which recently started buying naira debt after pulling out during the 2014 oil crash.

    “That could change if we got a significant drop in crude production or prices. It’s not clear how Nigerian officials would react. That would be a key test to reassure investors they can get their money out even in times of stress.”

    Yield-starved global investors have piled billions of dollars back into the country in the second half of this year, attracted by the naira’s devaluation after the Nafex window opened in April and yields on one-year Treasury bills of above 21 percent for most of the year.