The Nation Newspaper

Tag: MARKET

  • Union Bank delists shares from stock market

    Union Bank delists shares from stock market

    • 53-years listing ends

    Union Bank of Nigeria (UBN) Plc yesterday delisted its shares from the Nigerian stock market to complete a process of reversion to a private limited liability company, ending more than five decades of trading at the stock market.

    A circular obtained by The Nation yesterday indicated that the entire issued share capital of UBN was delisted from the Nigerian Exchange (NGX). The delisting of the 54-year old first generation bank reduced the market capitalisation of the NGX by N193.65 billion.

    Incorporated in May 1969, UBN, one of the oldest listed companies on the NGX, was listed in January 1970 and it has been one of the active stocks in the highly influential banking sub-sector. The banking sub-sector is the most influential group at the stock market, in terms of key indicators of capitalisation and activity.

    The circular indicated that the delisting of UBN from the Daily Official List of the NGX, the official record of all listed companies and securities at Nigeria’s main exchange, followed the “approval of the bank’s application to delist its entire issued share capital” from the NGX.

    The delisting signaled the completion of a takeover bid for minority shares by the new majority shareholder of the bank. Minority shareholders were paid N7.70 per share as a final price for every share held, estimating the exit value of the bank at N224.23 billion.

    The board of the bank had earlier indicated that the Registrars would remit the scheme consideration of N7.70 per share to all shareholders of the bank, pursuant to the decision of the court-ordered meeting and the subsequent sanction by the Federal High Court.

    The delisting followed the acquisition of the shares held by minority shareholders by Titan Trust Bank Limited, the new majority core investor in the bank.

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    Titan Trust Bank had in May 2022 completed the acquisition of the shares of UBN’s major shareholders, including Union Global Partners Limited (UGPL), Atlas Mara Limited (ATMA), Standard Chartered Bank (SCB), Montane Partners West Africa Limited (Montane) and Mr. Emeka Emuwa, resulting in a transfer of 93.41 per cent of Union Bank’s issued share capital to Titan Trust. UGPL and ATMA had taken over the first generation bank in 2012.

    Shareholders decried the delisting of the old generation bank, calling for concerted efforts to encourage listing and keep companies listed.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude, said the exit of companies from the exchange is something that is giving minority shareholders a cause to be worried.

    According to him, the government should make favourable policies that should encourage companies to be quoted on the exchange.

    “To protect the minority shareholders from being short-changed and to be sure the exit price won’t be manipulated against the minority shareholders, I will suggest that an independent body be set up by the Court or Securities and Exchange Commission (SEC) to midwife or supervise the exit of any company from the exchange, Apart from the buyer not voting in the resolution, they should not be party or be involved in  determining the exit price as well as the process of exiting the exchange,” Igbrude said.

    He said some delisting might not be unconnected with attempts to shy away from public scrutiny as private companies are not required to submit their accounts like public companies.

    “Not until the government recognises the importance of ethics and rule of law, and encourages every one to play according to the rules within the economy, the delisting will continue,” Igbrude said.

  • LCCI, CIBN, Capital Market operators back bank recapitalisation

    LCCI, CIBN, Capital Market operators back bank recapitalisation

    • Urge CBN to tame inflation

    The planned recapitalisation of banks has  received the nod of the Lagos Chambers of Commerce (LCCI), the leadership of the CIBN and Capital Market operators.

    The LCCI praised the apex bank’s move to review the minimum capital base of banks due to consistent devaluation of the Naira that has eroded the capital base of banks. 

    In a statement yestesday, its Director-General, Dr. Chinyere Almona said the planned recapitalization will attract significant investment into banks as well as increase the capacity of banks to provide the required support for the economy.

    She however, cautioned the CBN to strengthen its banking supervision to avoid “Too big to fail” banks, saying

    NIGERIAN banks are well-positioned to meet the Central Bank of Nigeria (CBN’s) directive to increase their capital base.

    President of the Chartered Institute of Bankers of Nigeria (CIBN) Mr. Ken Opara, ALSO gave the assurance of the readiness of the banks’ readiness for the recapitalisation move of the CBN.

    He spoke in Abuja yesterday at the 22nd National Seminar on Banking and Allied Matters for Judges.

     Opara highlighted the banks’ readiness and capability to raise the necessary funds through various means, including bond issuance and capital raising from the stock market.

    Despite the significant capital requirement of $1 trillion, Opara insisted that the banking industry has the financial strength and experience to successfully achieve the recapitalisation goal.

    He pointed to the banks’ track record of exceeding previous capital base requirements and the depth of the Nigerian stock exchange as evidence of their ability to raise the necessary funds.

    Also the National-Coordinator, Independent Shareholders Association of Nigeria, Moses Igbrude projected that the proposed recapitalisation policy would stimulate the financial sector and capital market.

     He advised players to apply the lessons learned from the previous recapitalisation to evade drawbacks.

    He said: “To enhance its effectiveness, there’s a need for players to use lessons learnt from the last recapitalisation in order to avoid the pitfall of the last exercise.

    Opara emphasised that the recapitalisation process is ongoing and that the banks are actively engaged in preparing for the increased capital requirements. He assured that the banks will be ready to comply with the CBN’s directive whenever the specific amount is announced.

    According to Opara, “$1trillion is something that is very important, it’s achievable because already there has been different capital raising process, you will also see that banks have raised bonds as much as possible and have repaid those bonds when they mature.

    It’s not a difficult thing to be bothered about funding $1 trillion, I think the major thing is that the industry is deep, they have deep pockets, they have the financial strength.

    LCCI also urged the Central Bank of Nigeria (CBN) to adopt the right policy mix to control high inflation and ensure the stability of the exchange rate in order to support growth and job creation.

    Its Director-General, Dr. Chinyere Almona said interest rates and unstable exchange rates have taken a toll on businesses and households. She stated this while responding to the CBN Governor‘s statement at the CIBN’s 58th Annual Bankers Dinner and the Grand Finale of the Institute’s 60th Anniversary.

    Almona said though the CBN boss seems to be on the right track , the Chamber is concerned about the state of the economy, particularly the volatile foreign exchange situation, high inflation, and general uncertainty.

     She said: “Over the years, the Chamber has consistently expressed concerns about the implications of high inflation, high interest rate and unstable exchange rates on businesses and households. We are aware of the enormous challenges and the uphill task before the CBN in ensuring macroeconomic stability and restoring investors’ confidence. However, we note the inconsistencies between the Federal Government’s vision of achieving a $1 trillion economy in the next six years and the medium-term expenditure framework (MTEF).”

    Almona lamented that the macroeconomic projections in the MTEF which stated that the economy will grow by 3.76 per cent, 4.22 per cent and 4.78per cent in 2024, 2025, and 2026, respectively may not happen as the projected growths are sub-optimal to achieve a $1 trillion GDP by 2029, which implies an average growth of 21 per cent over the next six years.

         “The stock exchange where they are going to go to the market to raise this is also quite deep, the stock exchange for instance is the second biggest stock exchange market in Africa, that tells you clearly that it is a deep market and we have the ability to raise funds that will fund that project as much as possible so we are very prepared,” he said.

        The CIBN president identified four major challenges giving Nigerian bankers sleepless nights. Specifically, he bemoaned the unlawful harassment of bank officials by the Economic and Financial Crimes Commission (EFCC) among other challenges.

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        With regards to the issuance of Bankers Orders by magistrate courts, the CIBN President noted that magistrate courts were fond of issuing Bankers Orders, which are orders to freeze bank accounts, without proper legal authority. These orders he said are often issued based on a non-existent or repealed law, and they cause hardship for banks, who are open to litigation from their customers if they comply with the orders. He then called on the “Chief Magistrate Court to intervene and ensure that Bankers Orders are only issued by the High Court”.

        Opara lamented that EFCC officials were always storming banks and demanding that they place Post No Debits (PNDs) on customers’ accounts without an order of court. “This is a violation of the legal provisions on confidentiality of bank accounts. When banks demand an order of court, EFCC officials harass and intimidate bank officials and, in some cases, arrest them. Banks are calling for EFCC to be held accountable for their reckless actions, in order to curb the abuse of power” he said.

        Opara also frowned at what he called “inappropriate deployment of garnishee”. According to him, “judgment creditors are often proceeding against all banks as garnishees, without first verifying the indebtedness of the bank to the judgment debtor. This practice imposes unreasonable costs on banks, who are forced to pay legal fees even if they do not have the judgment debtor’s funded account. In some cases, banks do not receive summons from the court for the hearing, and the court may proceed to issue a garnishee absolute judgment on the bank”. He then called on the judiciary to address this long-standing problem in order to protect depositors’ funds.

        The CIBN president noted that cybersecurity incidents are on the rise across the continent, and the financial sector is especially susceptible to cyber-attacks. “The CBN is taking steps to address this issue, but the judiciary also needs to play a role.

        “Banks are calling for the judiciary to collaborate with relevant bodies to develop a structure and build capacity to adjudicate on cybercrime cases in Nigeria”.

        CBN Governor, Mr. Yemi Cardoso who was represented by Mr. Kofo Salam- Alada noted that a robust and efficient judicial system acts as a magnet for Foreign Direct Investment (FDI), as investors seek stable and predictable environments where their business interests can be protected and disputes can be resolved fairly and expeditiously.

        This FDI influx he said “strengthens a nation’s foreign reserves, moderates inflation, and stabilizes exchange rates, paving the way for sustainable economic growth and price stability”.

        According to the CBN Governor, “whilst the judiciary does not actively participate in the formulation and implementation of policies geared towards economic development, its role in interpreting and pronouncing on these policies when they are brought before the Courts for adjudication is indicative of the judiciary’s indirect involvement in monetary and economic policy formulation and implementation.

         “Thus, the Judiciary invariably contributes to the effectiveness of monetary policy, financial system stability, economic growth and development through their interpretation of statutes and sometimes giving effect to the acts of the government and its agencies, where such statutes and acts relate to monetary policy, financial system stability, growth and development”.

  • Govt targets 1.5m Nigerians with Market-Moni scheme

    Govt targets 1.5m Nigerians with Market-Moni scheme

    First Lady Oluremi Tinubu has launched the expansion of the Market-Moni scheme with the symbolic presentation of cheques to the first set of beneficiaries at the Conference Centre, State House, in Abuja.

    Senator Tinubu advised beneficiaries of the interest and collateral-free loans to invest their shares strategically.

    She restated the Tinubu administration’s commitment to support Micro, Small and Medium Enterprises (MSMEs) so as to create a ripple effect for employment generation.

    According to her, such support will go a long way in serving as lifeline to those struggling to make ends meet, while enhancing the overall well-being of individuals and families.

    She noted that the transformative impact of MSMEs on the lives of the vulnerable ones in the society cannot be overemphasized, considering the fact that enterprises are the bedrock of our economy.

    Butressing her position further, she said that small scale businesses offer a platform for economic empowerment of those with limited resources but could become self-reliant entrepreneurs when equipped with the required skills and an enabling environment.

    She said: “It is in this regard that the rebranding of the three components of this programme is significant. Thus, Tradermoni (now rebranded Owo Oja or Olilanya Ndi Nagbambo or Tallafin Sana’a); Farmermoni (now rebranded Owoagbe or Olilanya Ndi Oru Ugbo or Tallafin Manoma); and Marketmoni (now rebranded Iyaloja or Nne Ahia or Agajin Yan Kasuwa).

    “These rebranding drums home, especially among the womenfolk including traders and farmers, a deeper understanding and actual implication of the programme in our native languages.

    “As I was informed that one of the strategic components of the Federal Government’s National Social Investment Programme (NSIP) is the rebranded and expanded Government Enterprise and Empowerment Programme (GEEP), this programme is expected to focus, amongst others, on offering interest and collateral-free loans to small scale entrepreneurs thereby providing financial inclusion and enabling individuals with limited resources to access much-needed capital for entrepreneurial endeavors.

    “This democratisation of financial resources helps break down barriers and empowers the poor to participate actively in economic activities.”

    She said loans from commercial banks often come with high interest rates and stringent requirement for collateral, making it challenging for those with limited assets to secure funds.

    “Eliminating these barriers, through MSMEs programmes create a more accessible and supportive environment for individuals to start and expand their businesses.

    “Such financial support enhances the overall sustainability of MSMEs. Small businesses often face cash flow challenges, and the absence of exorbitant interest rates ensures that entrepreneurs can invest profits back into their businesses, fostering growth and resilience. This, in turn, contributes to job creation and economic stability within communities.

    “My advice to those who might secure interest and collateral free loans through this programme is that you should plan wisely, exercise financial discipline in managing the funds, invest strategically, be committed to repayment agreement, and be flexible to be able to navigate the dynamic business landscape.

    “It is on this note that I hereby flag-off the Renewed Hope MSMEs programme to the glory of God, and wish you all a successful participation in the scheme. May all those who participate in the scheme prosper in their various business ventures”, the First Lady said.

    Minister of Humanitarian Affairs and Poverty Alleviation, Dr. Betta Edu, said the Market-Moni scheme target 1.5 million beneficiaries across various states in the country would cover all the 109 senatorial districts.

    The minister noted a major market from each of the senatorial districts would be taken, adding that each beneficiary would receive interest and collateral free loans of N50, 000 after registration.

    Dr. Edu said: “We are at a point to lift 50 million Nigerians out of poverty. They will be registered in the market. Their BVN will also be registered in the market….It is taking governance to the people.

    “As soon as they register, a loan of N50,000 will be given to them, to use it for their businesses. The target for this is 1.5 million Nigerians that will benefit. We have other programmes that are within that bracket. Some of them are special projects targeted at Nigerians.

    “I must say that Mr. President is in a hurry to change Nigeria for better within the next one year. Other projects include the N-Power projects, the home-grown school feeding projects, the new special vehicle, which is the end-hunger project, by the Grace of God ,the President will be flagging that off next month, etc.

    “Beyond this, we are going to also launch other projects that will help young people to get coding skills. We have several other projects.

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    “There are several interventions. We are dealing with multi-dimensional poverty so that at the end, we would have a nation that is strong under God, that its citizens will beat their chest and say indeed I am proud to be a Nigerian, and the Renewed Hope has truly come.”

    Some of the beneficiaries expressed appreciation to the federal government for the interest-free loans, thanking the First Lady, especially for her role.

    The Women Leader at the Gwagwalada Main Market, Hajia Rekiya Shauibu, described the loan as a capital, saying “N50, 000 is a capital, anywhere you fix it, it’s going to help. It’s not too small for a start and it’s not too big for a start.”

    Hajiya trades in food stuffs, iced fish and dried fish,

    Another trader, Mrs. Ironic Ude, who sells iced fish, could not hide her excitement, saying: “I’m very excited today, we were in the market when people from the ministry of Humanitarian Services came to our market and informed us about this and today, I am here in the Villa, I am very happy because I am a beneficiary”.

     Mrs. Malomo Mojisola, who deals in children’s items “this is to augment the business and it will go as long way. I’m happy because I know, to become a beneficiary is not easy.

    “Out of thousands, few are chosen and to the glory of God, I’m among the ones that were chosen. N50, 000, if God multiplies it, it can become N50 million, N500 billion, N500 trillion and so on.

    Mrs. Saratu Maikeffi, a widow, who runs a small grinding machine business, the N50, 000 is like  million naira to her, thanking President Tinubu and the First Lady. 

    She said: “This will support me more and I’m very happy. This N50, 000 e be like a million to me, I’m a widow. I thank God. May God bless the President’s wife and the President, please deliver my message to them. I’m very happy”.

    An excited Assistant Women Leader at Gwagwalada Market, Mrs. Harira Hudu, described the loan as real help. She commended the president.

    She said it was her visit to the State House.

  • Apapa trains market leaders on recycling

    Apapa trains market leaders on recycling

    Apapa Local Government has held a market sensitisation workshop on Cleanliness, Recycling and Packaging for market men and women within its jurisdiction.

    The workshop, which was kicked-off by the Council Chairman, Idowu Senbanjo, accompanied by Vice Chairman, Ismail Ganiyu and other top council officers, was held at the Council Secretariat.

    Senbanjo said that Apapa, as a major commercial hub and largest port in the country, plays a vital role in the nation’s economy, especially in the constant flow of goods and services.

    She said: “Apapa has always been a very clean and welcoming place, especially Anjorin vegetable market, which was a model market, but which today, is a shadow of itself.

    “What I’m telling you today is about our homes. Most of our food vendors prepare and sell food in very dirty environment. Even the water we use is bad. Some of you sell rotten fish and people buy it and come down with food poisoning.”

    She blamed the women leaders for their laxity in the area of sanitation, and warned that the wave of market closure currently sweeping across the state may soon get to them if they don’t adjust.

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    She therefore proposed: “the implementation of strategic waste management system; (which) includes the establishment of designated wastes disposal areas, with the assistance of our health officers; regular garbage disposal schedules and educational campaign to promote responsible wastes disposal among market vendors and customers.  Additionally, we will collaborate with waste management agencies to ensure proper disposal and recycling of market-generated wastes.”

    She said it was high time the people recognised the importance of adopting sustainable practices in the markets, adding that “recycling not only helps us preserve our environment, but also offers economic benefits through the creation of new industries and job creation.”

    The council chief also condemned a situation where all open spaces have been converted to market places and lock-up shops, warning that “All those shops are coming down.”

    Mrs. Arinola Oniyide of Zero Services trained the traders on the need for waste separation, Recycling, Reuse and Reduce (RRR); while Oladeji Agbetokun of the Federal Institute of Industrial Research, Oshodi, focused on packaging and branding for SMEs.

  • Analysts maintained a cautious outlook for the market.

    Analysts maintained a cautious outlook for the market.

    “We expect the direction of market performance to be shaped by the ongoing third quarter earnings season as investors cherry-pick fundamentally sound stocks. Overall, we reiterate the need for taking positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings,” Cordros Capital stated.

    Afrinvest Securities said the reclassification of MSCI Nigeria Indices from frontier markets to standalone indices would likely have negative effect on the Nigerian market.

    Analysts however said a strong corporate earnings performance could sustain a positive outlook.

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    Further analysis of the share pricing trend showed that there were 39 gainers and 42 losers last week as against 28 gainers and 46 losers in the previous week.

    Chams Holding led the gainers, in percentage terms, with a gain of 27.52 per cent to close at N1.90. Geregu Power followed with a gain of 20.63 per cent to close at N380 per share. Multiverse Mining and Exploration rose by 19.85 per cent to close at N3.20. U A C of Nigeria appreciated by 19.09 per cent to N13.10 while Tantalizers rose by 17.24 per cent to close at 34 kobo.

    On the negative side, VFD Group led the decliners with a drop of 18.98 per cent to close at N218.20 per share. Consolidated Hallmark Insurance followed with a loss of 10.43 per cent to close at N1.03. Secure Electronic Technology and Sunu Assurances Nigeria dropped by 10 per cent each to close at 27 kobo and 99 kobo respectively while McNichols dipped by 9.68 per cent to 56 kobo per share.

  • A cattle market and quit order abuse

    A cattle market and quit order abuse

    One was taken aback reading the screaming headline; “Northern group withdraws quit notice issued to Igbos”, which got copious space in the media last week.  Since the initial quit notice passed seemingly unnoticed, its withdrawal obviously raised curiosity as to what led to the order in the first instance.

    What could have given rise to such a sweeping order on a major ethnic group in the country? Was there any skirmish within the polity that could warrant such or is it one of those instances when events in other parts of the world would be vented on the local population?  How come such event of seemingly national weight escaped public notice?

    With this curiosity, I made quick to read through the text of the story. But to one’s utter consternation, there was no event of any serious national attention to warrant the order. There were neither ethnic clashes nor the usual combustible rhetoric that could pitch any ethnic group against the other. Neither was there any altercation between the Igbo ethnic group and the northerners.  Nothing of such!

    It was just all about a rag-tag northern group that goes by the name, Northern Consensus Movement, NCM, arrogating to itself the powers to expel an ethnic group from the north under very inexplicable and hazy circumstances. The group which is said to be an amalgam of community based socio-cultural and economically-inclined northern organizations was withdrawing a 14-day ultimatum it purportedly issued to the Igbo to quit the north.

    The NCM just took a cue from sundry northern groups in the habit of arrogating to themselves the powers of issuing quit threats to the Igbo at slightest disagreement. But, the issue involved in this instance does not deserve all that noise.

    They had misconstrued an order by the Abia State government converting the Lokpanta Cattle Market in the Umunneochi Local Government Area that has been serially fingered for providing cover for all manner of criminality to a day and non-residential operations. The measures followed credible intelligence that the operation of the market both during the day and at night coupled with the fact that cattle dealers live inside it, provided cover for all manner of criminals to launch attacks on innocent people using that highway.

    For whatever reasons, this measure was twisted as a quit order to cattle dealers who are mostly from the north to leave the state. How that misrepresentation came about can only be explained by the leadership of the NCM. The state government was compelled by the twisting of the directive to issue a statement explaining that no such quit order was given. It followed it up with a meeting with the leadership of the NCM.

    The statement issued by the NCM withdrawing its purported quit order to the Igbo was the outcome of their meeting with Governor Alex Otti. Both the withdrawal order and disclosures by the NCM leadership after the meeting showed clearly the mischief in twisting an unambiguous directive.

    The group’s president, Awwal Aliyu while announcing the withdrawal of the quit notice, had said they realized there was no tribal sentiment attached to the state government’s decision. According to him, Otti meant well and is interested in the safety and security of traders in the market contrary to the allegation that he had asked northerners resident in the state to leave.

    This speaks volumes. And if one may ask, at what point did the issue of quit notice arise in the course of the decision by the Abia State government to restrict the market to operate during the day and on a non-residential basis?  How an innocuous policy measure to safeguard lives and property lent itself to ethnic interpretation is at the root of the many challenges stultifying the development of this country.

    Perhaps, only those who misread the state government’s directive can reasonably give a clue as to how the confusion arose. But the body language and position taken by Awwal after their meeting with governor Otti appear to have let the cat out of the bag.

    His disclosure and eulogy for the governor for agreeing to assist vulnerable members of the northern community to rent accommodation outside the market strike at the root of the mix-up.

    The envisaged displacement of those who converted the market to their personal residences is the source of the distortion.  Uncomfortable with the reality of having to seek rented accommodation outside the market, mischief makers went to town and invented a quit order to northerners to sway sentiments of ethnic and parochial hue to their side.

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    To allay the fears of the cattle dealers, Otti went out of his way to promise financial assistance to vulnerable ones to enable them rent accommodation. That gesture must have assuaged the fears of the cattle dealers who had converted the market to their places of residence.

    But the choice of where cattle dealers and sundry herdsmen reside; how they pay for their accommodation are essentially their private concerns. If the government’s gesture is what it takes to get those residing inside the markets out, the end would have justified the means. If that is the prize Abia State will pay to secure that axis of death, sorrow and awe, so be it.

    The state government may not be unmindful of the huge sacrifice in deploying its scarce resources to pay house rent for cattle dealers and herdsmen. But whatever financial inconvenience it suffers to find enduring solutions to the unceasing criminalities along the Lokpanta-Umunneochi-Uturu axis will be a worthwhile sacrifice.

     Before the directive restricting the market to day operations and on non-residential basis, the state government had in conjunction with security agencies embarked in an operation around the market vicinity. Discoveries were quite revealing. A 160-room brothel and shanties suspected to harbour kidnappers and other band of criminals were located and destroyed.

    In the course of the operations, some kidnappers were arrested even as millions of Naira suspected to be ransom from kidnapped victims was recovered. There were clear indications that the area is a hotbed for sundry criminalities.

    The government gave a graphic account of how criminal elements took control of the area raising obstacles along the expressway to seemingly control traffic. But these were decoys for slowing down vehicles deliberately to allow single passage only for informants to alert their collaborators to rob them at some point along that highway.

     It was based on these startling findings, the state government came up with the informed decision which unfortunately was twisted out of context. Good a thing, those who misread the government’s intentions now know better. Their fears of how to secure accommodation outside the market they hitherto saw as their residence has also been allayed by the promise of some form of financial assistance.

    Abia State government has the total endorsement of this writer in the decision to tame the monster of insecurity in that axis, which has over the years defied the authorities for whatever reasons. It is gratifying that since after the raid and destruction of the shanties and brothels, insecurity has reduced in the area. The government should expeditiously implement its twin decisions restricting the market operations to day and on a non-residential basis after allowing time for those residing inside it to find accommodation elsewhere.

    But it remains a huge surprise that contrary to the practice, cattle dealers and all manner of herdsmen were all this while, allowed to convert the market to their residences in that winding highway that serves as border to three states. Little wonder the near state of anarchy that reigns supreme around that area.

     That axis has remained a sore point and national embarrassment with men of the underworld exercising control over its ungoverned territories. Time without number have the ease with which criminal elements operate around the cattle market location led to friction with the host communities routing for its relocation.

    The issue is not about relocation now. The market is being restricted to day operations and non-residential. With these twin measures, the Abia State government in liaison with security agencies and security arm of the cattle dealers union will move to secure the entire market vicinity. There will be no more loitering in the guise of night business around the market. It will be easy to detect those hanging around the market at odd hours to commit heinous crimes. Abia State government is on the right path to untying the puzzle of devious insecurity around that axis. They deserve all the support and encouragement to consign the spate of criminalities for quick monetary gains in that zone to the dust bin of history.

  • Market resistance begins as naira stays at N920/$ for three days

    Market resistance begins as naira stays at N920/$ for three days

    The naira has exchanged at N920/$ at the parallel market for the past three days, an indication that market resistance has set in.

    Analysis of rates movement chart showed that the local currency exchanged at N920/$ on Tuesday, Wednesday and Thursday- maintaining same rate.

    Analysts said the uniform rate for the three days, in a period of high market volatility is an indication that forex end buyers are not ready to buy at higher rates, and the sellers are not ready to sale at lower rates.

    At the Investor and Exporter (I&E) Window, the naira closed at N762/$, creating N158/$ premium between the official and parallel market rates.  

    A Bureaux De Change (BDC) trader based in Marina, central Lagos, Garuba Sarki, said forex speculators have not been able to push rates above the current position.

    “I think the rate is at resistance level in the market. No one want to pay more than N920/$ and no one wants to sale below that rate. The ensuing crisis in the market is due to inadequate or zero dollar supply and uptick of demand from multiple buyers,” he said.

    Sarki said funding for BDCs or getting the banks to sale dollars to retail end buyers will bps dollar liquidity and bring greater mileage to the naira.

    “The banks are not selling dollars and the BDCs have been incapacitated. Where do you expect dollar liquidity to come from? We expect the CBN to take immediate action and reverse the current trend to bring sanity to the market,” he said.

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    Sarki said many companies, sourcing dollars to import goods for Christmas sales and those going on summer holidays have also put more pressure on the forex market.

    Former Registrar, Chartered Institute of Bankers of Nigeria (CIBN), Dr. Uju Ogubunka, called on economy managers to tackle the naira-dollar relationship headlong and entrench exchange rate stability, while boosting foreign reserves. 

    He advised the Acting Central Bank of Nigeria (CBN) Governor, Folashodun Shonubi to tackle the volatility in the forex market. 

    “It is not difficult to find what he should. Naira-dollar relationship is at its worst state, at least let’s get to where we were before and from there, move further forward. He needs to create jobs, and reserves which relates to the exchange rate should be boosted. H also needs to improve export and reduce import,” Ogubunka advised.

    Also speaking, President, Association of Bureaux De Change Operators of Nigeria (ABCON), Dr. Aminu Gwadabe, advised the Federal Government to enhance financial intelligence by tracking people with proceeds of corruption to sanitize the market.

    He said many of the people with proceeds from corruption are the ones putting pressure on the forex market through their manipulative actions.

    “The naira is depreciating not by forces of demand and supply, but by the collective action and impact of the people with illicit funds,” he said.

    The CBN had in June commenced currency reforms that brought about exchange rate unification and abolishment of multiple multiple exchange rates. 

    The exercise led to 40 per cent drop in naira rate at the official market, but dollar supply has continued to be a big challenge making it difficult for official and parallel market rates to converge. 

  • Market embraces Alaro City’s first phase

    Alaro City, the new inclusive city in the Lekki Free Zone, has sold out its first phase of “Buy & Build” residential plots. The serviced plots were fully subscribed and phase 2 is now open.  Alaro City was launched in January as a joint venture between Lagos State government and Rendeavour, the largest new city builder in Africa, to boost foreign direct investment in Nigeria and create tens of thousands of jobs.

    “We expected high uptake of the plots, but the rate at which they sold out has been exceptional,” said Odunayo Ojo, CEO of Alaro City. “Alaro City is situated in a prime location in the Lekki Free Zone, making it one of the most exciting development projects to come to Lagos State. The location and exclusive benefits have undoubtedly been key selling points for buyers,” he continued.

    Alaro City is an integrated mixed-use, city-scale development with industrial and logistics locations, complemented by offices, homes, schools, healthcare facilities, hotels, entertainment and 150 hectares (370 acres) of parks and open spaces. Asides the residential sales, there has also been a rapid uptake in commercial plots.

    Read Also: Lekki Free zone and Lagos’ economic potential

    “The Lekki-axis has been a key driver in residential real estate over recent years. Alaro City offers a unique and valued investment proposition that the market clearly recognises,” said Gbenga Olayinan, Chairman of Estate Links Limited, a leading real estate consultancy. “As with any real estate investment, the real trick is to key in early,” he continued.

    Located in the Northwest Quadrant of Lekki Free Zone, Alaro City lies in the growth path of Lagos, one of Africa’s fastest-growing cities with a population of over 20 million. Alaro City is adjacent to the future international airport, the region’s largest deep-sea port, and major Nigerian and international companies.

    Rendeavour is building seven new cities in Africa: in Nigeria, Kenya, Ghana, Zambia and Democratic Republic of the Congo. As a master developer, Rendeavour invests over $250 million in each project, creating the infrastructure and living and working spaces that will help sustain and accelerate Africa’s economic growth, meet the aspirations of Africa’s burgeoning middle classes, and serve as a catalyst for further urban development.

  • Iponri market fire: Surulere LG boss visits market, promises support for affected traders  

    Following a fire incident that razed many shops in Ipori Shopping Market in Lagos mainland over the week, the chairman of Surulere Local Government Hon. Tajudeen Ajide has paid an unscheduled visit to the market to empathise with the traders.

    Seventeen standard and three regular shops and goods such as gift items, carbonated drinks, plastic products and a fashion designing shop were affected in the fire that started at 7pm and lasted about three hours before it was brought under control.

    Speaking to some of the affected traders, he sympathised with them and advised the leadership of the popular market to set up a committee that would meet with the local government over the fire incident.

    “We would like to seat down with your representatives to see the extent of damage and how government can intervene to provide succour to the affected traders, if need be. We thank God that life was not affected and whatever good lost can be replaced once there is life,” said Ajide.

    He however advised the traders to be more careful and desist from actions capable of causing fire like keeping petrol in their shops and leaving their electrical appliances on after the close of business.

    In their reaction, The Baba-Oja of the market, Mr Wasiu Oriade, said no one could identify the cause of the fire and the quick intervention of youths within the market fire fighters prevented the fire from causing more damage.

    With Hon. Ajide during the condolence visit were vice-chairman, Hon Sulaimon Yusuf, and members of the executive committee of Surulere Local Government.

  • Aregbesola: no urbanisation without market

    Immediate past Osun State Governor Rauf Aregbesola has said urbanisation cannot be achieved without a market.

    He described market as the first factor to consider when developing an urban settlement.

    He spoke at the inauguration of the Ogbeni Rauf Adesoji Aregbesola Mall, aka Oranmiyan Market, on Ipaja Road, Lagos, at the weekend.

    It was built by Mosan-Okunola Local Council Development Area (LCDA) and named in honour of Aregbesola.

    Aregbesola sang, danced and cracked jokes with All Progressives Congress (APC),  market leaders and youths at the ceremony.

    He described the honour as surprising.

    “I usually go out at midnight to see things in Lagos. One night, I passed through this road (Ipaja Road) and this edifice, while under construction, caught my attention. I told my driver to park. I alighted and looked around. The structure impressed me. I told the people who accompanied me that the contractor and the developer did a wonderful job. Then, I didn’t know that the market would be used to honour me. I thanked the council chairman for taking the decision. Of the three markets named after me, I must confess, this is the biggest and most conspicuous. Princess Olabisi Adebajo aka ABISCO, Mosan-Okunola LCDA chairman, you have done well,” Aregbesola said.

    “Market has been a key factor in Yorubaland. Farmers return in the evening from the farm to sell their goods at the market. That was why market in the olden days was carried out at night (Oja Ale). Market improves the living standard of the people and brings development to the community. It is the soul of every community; a centre of commerce and economy,” he said.

    Princess Adebajo said the market was in fulfilment of her promise of good governance.

    She said: “We promised that our government would work for all, no matter your race, creed or gender. We remain committed to this promise and it necessitated the spread of developmental projects to the nooks and crannies of the council.

    “We have worked to deliver projects that will impact on the lives of residents. This mall is a fulfilment of one of the recommendations of the stakeholders’ forum held at the beginning of this administration.”