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  • NGX, Unimaid partner on capital market

    NGX, Unimaid partner on capital market

    Nigerian Exchange (NGX) and the University of Maiduguri (Unimaid) have signed a Memorandum of Understanding (MoU) to bridge the gap between academic research and industry practice.

    The strategic collaboration aims at fostering innovation, enrich learning, and promote sustainable development within the capital market sector.

    The MoU signing ceremony, attended by key representatives including NGX Chief Executive Officer, Jude Chiemeka and Prof. Mohammed Madawaki, Director of Unimaid’s Business School, underscored a mutual commitment to harnessing the strengths of both academia and industry to address critical knowledge and skill gaps.

    Under the partnership, NGX, through its X-Academy platform, and Unimaid, via the University of Maiduguri Business School (UMBS), will jointly offer capacity-building courses to advance financial and capital market education.

    They will also provide consultancy services aimed at enhancing business operations within the community. Other key areas of collaboration include shared research, human resource development, industry engagement, guest lectures, and the co-development of financial and business-related courses.

    Additionally, the MoU outlines plans to promote and run certification programs, entrepreneurship training, and consulting services.

    “This MoU represents a significant milestone for both NGX and the University of Maiduguri. It embodies our shared vision to advance education and industry practices through strategic collaboration. By combining our expertise and resources, we are well-positioned to drive meaningful change and contribute to a more resilient financial ecosystem,” Chiemeka said.

    Read Also: NGX poised to support banks with N4.2tr capital injection

    He added that the collaboration will focus on developing and delivering capital market-related courses that cover essential topics such as financial literacy, investment management, and sustainable business practices.

    According to him, the partnership also aims to boost retail participation in the capital markets while enhancing the skills of businesses and individuals through various educational initiatives.

    Madawaki expressed optimism about the partnership, noting that the collaboration with X-Academy is a natural alignment of academic rigor with NGX’s industry expertise.

    “Together, we are poised to foster innovation, inspire future leaders, and address the evolving needs of the financial sector,” Madawaki said.

    He added that the MoU is expected to have a profound impact, driving innovation and inspiring positive change within both academic and business communities.

    According to him, grounded in shared values of integrity, excellence, and mutual respect, the partnership is set to usher in a new era of collaboration between academia and the financial industry

  • NGX poised to support banks with N4.2tr capital injection

    NGX poised to support banks with N4.2tr capital injection

    The Nigerian Exchange (NGX) is poised to help banks to raise some N4.2 trillion to meet their new capital requirements under the ongoing banking recapitalisation.

    Acting Chief Executive Officer, Nigerian Exchange (NGX), Mr. Jude Chiemeka, said the Exchange through first-in-class bespoke technology is well poised to support the new cycle of capital raising by banks and other companies in diverse sectors.

    Chiemeka spoke at a webinar on rights issue. It was part of the NGX’s investor education series initiatives.

    He noted that the webinar is apt and timely given recent developments in Nigeria’s financial market space.

    “As we may be aware, the apex bank has mandated banks to recapitalise their operations. This recapitalisation will result in the emergence of stronger, healthier, and more resilient banks thereby supporting the achievement of a $1 trillion economy by the year 2030.

    “Bigger banks with larger capital base and capacities can underwrite larger levels of credit, thereby providing a pathway to the revitalisation of the economy,” Chiemeka said.

    According to Chiemeka, NGX as the foremost platform for capital formation in Africa is properly positioned to provide the necessary support to market operators, banks, and the government to achieve set goals.

    “Our history as an Exchange gives credence to our novel contribution to the success of the banking sector recapitalisation over 20 years ago (in 2004) which has been one of the major pivots for a stable financial system in Nigeria.”

    “Data from KPMG estimates that within the 2024 -2026 window for the banking recapitalisation exercise an aggregate of over N4.2 trillion in fresh capital injection is required to satisfy the new capital requirement across all types and classes of banks.

    “Right issues are one of the preferred means by which they would be seeking new capital injection to fulfill the apex bank’s requirement,” Chiemeka said.

    He pointed out that other listed companies in other sectors have also been quite active in rights issuance with N3.6 billion raised so far through rights issue.

    Read Also: Rivers crisis: all eyes on the Appeal Court

    He assured that the NGX remains highly invested in providing an efficient, liquid, and transparent market for investors and businesses in Africa, to access capital and build wealth.

    Executive Commissioner, Operation, Securities and Exchange Commission (SEC), Mr. Bola Ajomale, commended the NGX for organszing this webinar at this time where over N4 trillion fresh capital injection is required to satisfy the new capital requirement across all types and classes of banks.

    “The capital raising might go through the right issues process. Out of the six-capital raised in the market this year, four are right issue. Consequently, as the apex regulator, the SEC will continue to support all efforts aimed at making our markets fairer, more efficient and more transparent, particularly in the areas of regulation and technology,” Ajomale said.

    Managing Director, NG Clearing Limited, Mr. Farooq Oreagba emphasised the significance of the webinar as a distinctive platform for enhancing investors’ understanding of rights issues.

    He highlighted key aspects such as options available to investors during right issuances, the process of trading rights, and the settlement procedures.

    “With the webinar, investors would be well armed with the right information and resources to navigate the market as we expect a flurry of rights issues to hit the market soon,” Oreagba said.

    Managing Director, Chapel Hill Denham Securities Limited, Mr. Akeem Shadare highlighted that companies use rights issues to raise capital, often to pay down debt or fund expansion.

    According to him, shareholders can benefit from capital gains if the company uses the extra funds wisely.

    He however noted that since more shares are issued, the stock price may be diluted and likely decrease.

    Other speakers at the webinar includes Mrs. Onome Komolafe, Divisional Head, Business Services and Client Experience; Dr. (Mrs.) Catherine Nwosu, Managing Director, Africa Prudential Plc; Mr. Abimbola Babalola, Head, Trading & Products, Nigerian Exchange Limited.

  • NGX, companies seek govt intervention in manufacturing sector

    NGX, companies seek govt intervention in manufacturing sector

    Nigerian Exchange Group and stakeholders in the manufacturing sector have called on the  Federal Government to provide special fiscal supports to ease the challenges facing the manufacturing sector.

    Speaking during the visit of Minister of Industry, and Trade & Investment, Dr Doris Uzoka-Anite, to the NGX in Lagos, stakeholders drew attention to foreign exchange losses and high finance that have become a recurring trend for players in the manufacturing sector.

    Group Chairman, NGX Group, Dr Umaru Kwairanga, said it was essential for the government to engage players in the capital market.

    “This is important, so that they can know the challenges and be able to proffer solutions to aid the listed companies,” Kwairanga said.

    Group Managing Director, NGX Group, Temi Popoola, said that the economy had seen the worst and that the outlook feels positive.

    He added that there were areas for NGX to collaborate with the govt in a bid to boost the small and medium scale sector of the economy through improved liquidity.

    Popoola urged the govt to become intentional about regulations that would improve the activities of the capital market.

    Also present at the meeting were management of Nigerian Exchange Limited (NGX), NGX Regulation (NGX RegCo), Dangote Sugar Refinery Plc and BUA Foods Plc.

    Read Also: NGX sanctions Julius Berger over ‘inappropriate insider dealing’

    Chief Executive Officer, Dangote Sugar Refinery, Ravindra Singhvi, lamented the lack of hedging mechanism for their foreign exchange loans and how the high interest rate needed to come down to ease the operations of manufacturers.

    He said, “There are no hedging mechanisms for us and this leaves us exposed to changes in the currency market.”

    Chorusing the call for SMEs support, Singhvi suggested that policies should be made to compel companies to pay SMEs on time, give a certain quota of supply contracts to MSMEs. “There is a need to also promote exports and work on the multiplicity of taxes. Unify it, so that it is the same at the national and state levels,” Singhvi said.

    Managing Director, BUA Foods, Engr. Abioye Ayodele said the economy was trying to recalibrate noting that he foreign exchange situation impacted the manufacturing sectors negatively but it did not affect others like that. “There is a need to consider aggregating power supply for manufacturing clusters like Agbara because after raw materials, the cost of energy is one of the highest costs,” Abioye said.

    He also called on the minister to consider extending the pioneer status given to some companies including BUA Foods saying that the company was still expanding.

  • NGX sanctions Julius Berger over ‘inappropriate insider dealing’

    NGX sanctions Julius Berger over ‘inappropriate insider dealing’

    Authorities at the Nigerian Exchange (NGX) have sanctioned Julius Berger Nigeria (JBN) Plc for engaging in inappropriate insider dealing in shares.

    A document obtained by The Nation showed that JBN, Nigeria’s leading construction company, was sanctioned for “insider dealing during closed period”. Incorporated in 1970, Julius Berger Nigeria became a publicly quoted company in 1991 and has more than 10,000 shareholders.

    NGX Regulatory Company (NGX RegCo), the self regulatory organisation (SRO) that regulates activities at the NGX, stated that JBN breached certain provisions of the listing rules and was thus sanctioned accordingly.

    According to NGX RegCo, JBN violated provisions on “closed period”, in breach of the construction company’s commitment to adhere to listing rules and standards.

    The NGX had tightened its rules and regulations to checkmate boardroom intrigues and block information arbitrage that tend to confer advantages on companies’ directors. The amendments expanded the scope and authority of corporate financial reporting while eliminating gaps that allowed companies to sidetrack relevant rules in stage-managing corporate compliance.

    The enhanced framework provided clarity and greater disclosures on directors’ trading in shares, corporate liability for accuracy and compliance of financial statement, dissuade bogus dividend payment and other sundry boardroom’s maneuverings that tend to favour insiders.

    The amendments came on the heels of noticeable increase in violations of rules on ‘closed period’, a period when directors are banned from trading in the shares of their companies.

    Rule 17.17 of the NGX disallows insiders and their connected persons from trading in the shares or bonds of their companies during the ‘closed period’ or any period during which trading is restricted. This period is mostly at a period of sensitive material information, like prior knowledge of financials, dividends or major corporate changes, which places directors and other insiders at advantage above other general and retail investors.

    Read Also: NGX, CIBN partner on banks’ recapitalisation

    A review of the disclosure violations at the stock market had shown that all violations in 2021 were related to violation of Rule 17.17 on ‘closed period’.

    Under the amendments, in addition to the provisions of relevant accounting standards, laws, rules and requirements regarding preparation of financial statements, companies are now required to include several specific declarations on securities transactions by directors, changes in shareholding structure, self-assessment on compliance with corporate governance standards and internal code for directors on securities transactions among others.

    According to the rules, in relation to securities transactions by directors, a company shall disclose in its quarterly financial statements, full year audited financial statements, and in corporate governance report contained in its annual report whether the company has adopted a code of conduct regarding securities transactions by its directors on terms no less exacting than the required standard set out by the market.

    The company is also required to disclose, having made specific enquiry of all directors, whether its directors have complied with, or whether there has been any non-compliance with, the required standard set out in the Exchange’s rules and in code of conduct regarding securities transactions by directors.

  • NGX, CIBN partner on banks’ recapitalisation

    NGX, CIBN partner on banks’ recapitalisation

    The Nigerian Exchange (NGX) and the Chartered Institute of Bankers of Nigeria (CIBN) have entered into a strategic partnership towards ensuring the success of the ongoing recapitalisation of the banking sector.

    Preisdent, Chartered Institute of Bankers of Nigeria (CIBN), Dr Ken Opara, said the collaboration between the two organisations was aimed at building the capacity and preparing the banks for capital raising.

    According to him, both CIBN and NGX are collaborating on implementation of several initiatives to support the banking recapitalisation.

    :In this wise, the parties agreed on a number of initiatives including a joint visit to the Governor of Central Bank, Mr. Olayemi Cardoso which took place on Wednesday, March 20, 2024, to provide some insights on the subject. Other initiatives under this collaboration include providing series of needed sensitisation, support and platforms for banks recapitalisation exercise,” Opara said.

    Speaking at the annual general meeting of the institute in Lagos, Opara outlined several achievements and strategic initiatives taken under his two-year administration.

    Read Also: Emefiele and company

    He noted that for the first time, the CIBN recorded a historic net operating surplus of N1.37 billion for 2023, marking a significant growth from the  N837.94 million recorded in 2022.

    “I am particularly delighted that our institute continued to wax stronger financially, notwithstanding the economic downturns and headwinds in the year 2023.

    “It is on record that our institute for the first time crossed the one billion Naira mark by achieving a Net Operating Surplus of N1.371 billion in 2023 when compared with N837.943 million achieved in 2022, representing a growth of 63.60 per cent.

    “Similarly, total revenue grew from N2.065 billion recorded in 2022 to N2.782 billion in 2023, representing 34.72 per cent growth, while total assets grew from N7.821 billion in 2022 to N9.119 billion in 2023.

    “The cost-to-income ratio for the year ended December 31, 2023, stood at 50.72 per cent, down from 59.41 per cent in the corresponding period in 2022. This ratio is way below the approved Governing Council threshold of 61 per cent for the 2023 financial year.

    “I am persuaded that with prudent and efficient management of resources, as well as diligent execution of our strategic plan, our institute will sustain this northward trajectory,” Opara said.

    Opara, who took over leadership in May 2022, also announced a planned road show to flag off the collaboration with Pan-African Payment and Settlement System on April 25 in Lagos to promote exportation.

    He explained how his administration, through teamwork, left indelible marks in the banking industry in an era characterised by disruptions, volatility in the economy, and other turbulence.

    Opara, also the Chairman of Council, CIBN, explained youth engagement initiatives aimed at checkmating mass migration of the nation’s young professionals out of the country to other advanced economies.

    He thanked CIBN members, stakeholders, family and friends for their support that ensured the success of his tenure.

    After a 72-hour electronic voting, Mrs Caroline Anyanwu, Chairperson of the CIBN Election Committee, announced the election of immediate past First Vice President of the institute, Prof Pius Olanrewaju, as the president-elect.

    Olarenwaju, in his acceptance speech, described the outgoing president as “a great leader” who had positioned the institute on a path for growth and greatness.

    He thanked the leadership and members of the institute while promising to build on the legacies of Opara, his predecessor, in office.

    He promised to unveil his agenda during his inauguration at an investiture programme scheduled for May.

  • NGX Group’s Popoola is CSCS Chairman

    NGX Group’s Popoola is CSCS Chairman

    The Group Managing Director/Chief Executive Officer of Nigerian Exchange Group (NGX Group), Temi Popoola, has been elected Chairman of Central Securities Clearing System (CSCS) Plc with effect from April 1.

    Popoola takes over from Oscar Onyema, who retired from the position after 13 years of service.

    Read Also: NGX, partners CBN, others to bridge financial literacy gap among students

    Popoola brings a plethora of experience and knowledge to his new position. As an accomplished financial specialist, he has demonstrated success in expanding the global market and providing operational knowledge.

    He led the Nigerian Exchange Limited through many notable strategic turning points during his tenure as CEO.

  • NGX, partners CBN, others to bridge financial literacy gap among students

    NGX, partners CBN, others to bridge financial literacy gap among students

    As part of 2024 Global Money Week, Nigerian Exchange Limited (NGX), the Central Bank of Nigeria (CBN), and other capital market operators hosted a symposium to raise the level of financial literacy among select Lagos-based students.

    Global Money Week (GMW) is an annual global awareness-raising campaign that highlights the significance of ensuring that young people are financially aware from an early age and are gradually acquiring the knowledge, skills, attitudes, and behaviours required to make wise financial decisions and, in the end, achieve financial resilience and well-being.

    The topic of this year’s global event, which is in its twelfth year, is “Protect Your Money, Secure Your Future.”

    The event was organised by Chapel Hill Denham, Coronation Group, Central Securities and Clearing System Plc, and Miniemoney in collaboration with CBN and the Exchange.

    Acting Chief Executive Officer of the NGX, Jude Chiemeka encouraged students during his welcome speech at the event to embrace financial literacy and recognise that it is a lifetime commitment.

    Chiemeka regarded the theme as invaluable for young individuals like students who are currently laying the groundwork that will shape their lives and quality of life ten or more years down the line.

    He said: “This event represents a significant step in our ongoing commitment to cultivating a community of financially literate future leaders who possess the knowledge and skills to make well-informed financial decisions through the array of financial literacy resources at their disposal.”

    Financial literacy, the NGX boss explained as well as careful money management are not just desirable qualities, but also necessary skills for achieving long-term financial security and prosperity as we explore the complexity of the financial world.

    “It’s not just about making money; knowing how to protect your money by understanding the possible risks in the world and using deploying financial practices is crucial for securing your future. Recognizing things that can make you lose money, like investing in wrong or illegal activities or not being careful when shopping online from promoted ads, is also part of being financially smart. If you stay informed and ask for advice from financial experts, you can lower risks and keep your money safe,” he added.

    Chiemeka further assured the students of the NGX support you every step of the way as they embark on their financial journey.

    Read Also: NGX Group, female leaders advocate greater investment, gender inclusion 

    Central Bank of Nigeria’s Consumer Protection department, represented by Lanre Gbadamosi while speaking, emphasised the educational value of the apex bank’s “Sabi Money Platform” for students in school.

    He said: “Sabi money platform is a platform where we have packaged 15 series of financial literacy topics. Financial planning has to start today and it has to start with you the children.”

    Early investors gain the most from compound interest, according to Adaora Obikili, Head Retail Strategy and Development at Chapel Hill Denham, who made this observation in her presentation, stating; “Saving a portion of your income (at least 3 months’ worth) prepares you for rainy days. The best time to start saving and investing is yesterday, the next best time is today.”

  • SEC, NGX, others seek ways to deepen mutual funds

    SEC, NGX, others seek ways to deepen mutual funds

    Securities and Exchange Commission (SEC), Nigerian Exchange (NGX), United Capital Asset Management Limited (UCAML) and other capital market operators have canvassed the need for collaboration, enhanced education and product development as ways to engender more participation in collective investment schemes, otherwise known as mutual funds.

    They said low participation of retail investors in the collective investment schemes (CIS) is not good for the Nigeria capital market when compared with other advanced economies.

    Speaking at the UCAML’s investment forum held in Lagos, with the theme “Deepening financial inclusion through participation in Collective Investment Scheme”, Director General of SEC, Lamido Yuguda, said that the CIS has grown over the years, however number of participations is still very much low compared to the country’s population.

    Yuguda, who was represented by the Executive Commissioner, Operations, Dayo Obisan, said: “There is need for collaboration among the operators  to encourage more participation . The SEC has been collaborating with the market in turning out rules that will help boost confidence in the market. We are instilling confidence and trust through regulation and market development. In a bid to manage risk and entrench trust in the scheme the Commission mandated that all CIS funds be held in custody. This has helped the growth of these funds.

    “We will continue to partner with operators to boost retail investors through the CIS funds, as they provide investors with the opportunity to have their investments managed by knowledgeable investment professionals,” Yuguda said.

    Read Also: NGX RegCo grants Neimeth free float extension

    Acting Chief Executive Officer, Nigerian Exchange (NGX), Jude Chiemeka said there was need for collaboration among the capital market operators to deepen the participation in CIS.

    “The number of retail participation in the market is still very low. The Exchange will continue to improve investor confidence and drive financial inclusion in the retail investor ecosystem. It is essential to foster a market that provides everyone with the opportunity to participate in the financial market if Nigeria is to fulfill the 95 percent financial inclusion target by the end of the year.

    “At NGX, we believe that by deepening financial inclusion, we can unlock the true potential of retail investors and ensure they have the tools, knowledge and support to achieve their financial goals,” Chiemeka said.

    Chief Executive Officer, United Capital Asset Management Limited, Odiri Oginni noted that with less than two per cent of people having bank account in the CIS , then there is really poor participation.

    “So we need to collaborate to attract  more people in the CIS  in order to deepen financial inclusion . I agree with all the speakers that there is need for collaboration, investor education, introduction of products tailored to meeting the needs of investors, compliance of rules among others. Also, the market operators should leverage on technology to attract the youths. We hope to continue to hold this investment forum to enlighten more Nigerians on the benefits of the CIS and as well as engage with stakeholders to boost financial inclusion,” Oginni said.

  • NGX Group mourns ex-chairman, Ogunbanjo’s loss, commiserates with Wigwe’s family

    NGX Group mourns ex-chairman, Ogunbanjo’s loss, commiserates with Wigwe’s family

    Nigerian Exchange Group Plc (NGX Group) has mourned the loss of its former chairman, Bamofin Abimbola Ogunbanjo, and Access Holdings Plc Managing Director, Herbert Wigwe, along with his wife and son, in a helicopter accident in the United States of America.

    The Nigerian business community on Sunday, February 11, was thrown into grief following the tragic deaths of its notable members, Abimbola Ogunbanjo, and Herbert Onyewumba Wigwe with his wife, Chizoba, their son alongside crew members.

    In a statement issued by the Group Chairman of NGX Group, Umaru Kwairanga expressed his heartfelt condolences.

    He said: “NGX Group mourns the untimely departure of Bamofin Abimbola Ogunbanjo and Dr. Herbert Wigwe, along with his wife and son.

    “Bamofin Ogunbanjo’s leadership has left an indelible mark on our organisation and the broader Nigerian financial community, and his legacy will continue to inspire us.

    “Dr. Wigwe also leaves an unblemished footprint in our private sector. Our thoughts and prayers are with their families during this difficult time. May their souls rest in peace and may the Almighty comfort their families.”

    Read Also: How Aircraft model carrying Wigwe, wife, son crashed five times in 2023

    The Group MD/CEO of NGX Group, Temi Popoola, described the passing of Ogunbanjo as a profound loss for NGX Group and the entire Nigerian private sector.

    Popoola said: “He played a crucial role in shaping NGX Group, and while he will be sorely missed, his visionary leadership and impact will never be forgotten.

    “It is heartbreaking to learn that Dr. Wigwe, his wife and son also lost their lives in the accident.

    “The contributions of these two respected leaders to the financial markets and the overall private sector will be remembered, and we are committed to preserving their legacy by upholding the principles of leadership, innovation, and dedication that they exemplified”, NGX Group MD/CEO.

    Beyond his role at NGX Group, Bamofin Ogunbanjo was a distinguished legal practitioner, serving as Managing Partner of Chris Ogunbanjo LP (Solicitors).

    He served on the boards of several multinational corporations and non-profit organizations including Beta Glass Plc and the Advisory Board of the University of Buckingham Centre for Extractive Studies.

    He also served on the Board of GTL Registrars Limited, AIICO Insurance Plc, and ConocoPhillips Limited amongst others. His contributions to the legal profession and corporate governance were exemplary, earning him widespread respect and admiration.

  • NGX plans new listing rules to attract companies

    NGX plans new listing rules to attract companies

    • Working with pro-market Tinubu

    The Nigerian Exchange (NGX) intends to review its rules to attract more listings and deepen participation at the Nigerian capital market.

    The Exchange said it was also implementing a more deeply intentional strategy that seeks to foster collaboration with the President Bola Tinubu’s administration, which the NGX described as a “pro-market leader”.

    Group Managing Director, Nigerian Exchange Group (NGX Group) Plc, Mr. Temi Popoola, outlined these as part of plans by the Exchange to revamp its technology infrastructure, attract listings, enhance retail investors’ participation and foreign capital inflows.

    Addressing leaders of exchanges from across the globe at the working group committee meeting of the World Federation of Exchanges hosted by Deutsche Boerse in Frankfurt Germany, Popoola said the NGX has found a new vigour with the macroeconomic outlook under the Tinubu government.

    Read Also: Imported medical syringes killing local industry, says NAFDAC

    “After navigating a challenging eight years with the previous administration, we now find ourselves under a more pro-market leadership. This shift positions NGX for renewed growth and resilience in the evolving economic landscape.

    “Recognising the importance of government advocacy historically, our strategy involves deeper intentionality to collaboration with government in enhancing listing incentives. A prime example is the prioritization of listed companies in government procurement processes. Also, working with the regulator, we intend to review our listing rules aligning them with markets such as London to attract a more diverse array of businesses to the Exchange,” Popoola said.

    He said the Exchange recognized the stark contrast between the investors currently engaged in the capital market and the vast potential represented by the 65 million banking accounts in Nigeria.

    According to him, the strategic vision is to bridge the divide, onboarding millions into the capital market and fostering financial inclusion on an unprecedented scale.

    He said the NGX was exploring deepening data revenue generation and engaging market infrastructure stakeholders from the CCPs to the CSDs in meaningful API conversations to further strengthen agility.