Cloned Nigerian Anchor

Author: Chike Ozohili

Domestic equity market gains N542bn

Nigeria’s domestic equity market on Thursday sustained its upward trade story, growing by N542 billion.

The market capitalisation of listed equities increased by 1.55 percent to N35.515 trillion from N34.973 trillion reported the previous day.

The NSE All Share Index also appreciated by 995.70 basis points to 65263.06 points from 64267.36 points reported the previous day.

A review of the investment showed that Nigerian Breweries, Sterling Bank, and PZ Cusson led the gainers’ table with 10 percent each to close at N41.80 per share, N3.63, and N18.15 per share respectively.

Chellaram Plc added 9.96 percent to close at N3.05 per unit, Dangote Sugar added 9.95 percent to close at N35.90 per unit.

On the contrary, Eterna Plc topped the losers’ chart, dropping by 9.83 percent to close at N23.40 per share, JohnHolt trailed with a drop of 9.82 percent to close at N1.47 per unit, Thomas Way fell by 9.40 percent to close at N1.06 per share, Mcnichols dipped by 9.33 percent to N0.68 per unit, Courtvellle Business Solutions down by 9.09 percent to close at N0.60 per unit.

The volume of transactions increased by 114.491 million, representing 34.61 percent as investors traded 445.275 million shares worth N5.087 billion in 7095 deals, against 330.784 million shares cost N4.269 billion exchanged hands the previous day in 6251 deals.

Trading in the shares of Sterling Bank led market activities with 69.452 million shares valued at N238.093 million, FCMB group followed with account 33.332 million shares cost N217.816 million, AccessCorp traded 32.985 million shares valued at N568.981 million, Japaul Gold traded 28.366 million shares cost N28.846 million, Fidelity Bank exchanged 27.351 million shares cost N219.595 million.

08/03/2023
DMO lists N130bn Sukuk to boost capital market

The Debt Management Office (DMO) of the Presidency has announced the listing of N130 billion sovereign Sukuk on the Nigerian Exchange and FMDQ starting on August 8, 2023.
This was disclosed in a statement from the Debt Management Office (DMO).
The Federal Government has been able to fix 75 roads since the FGN Sukuk initiative started. Some of the roads include Ibadan-Ilorin Road, Kaduna Eastern Bypass, and Loko Oweto Bridge over the River Benue among others.

The listing follows the successful oversubscription of the N100 billion opened in November 2022. This current listing is geared towards accommodating the needs of investors towards the facility.

According to the statement, “The sovereign Sukuk was opened for subscription in November 2022, with an initial of N100 billion however, it garnered immense interest from investors with a remarkable subscription level of N165.25 billion which represents over 165% of the amount offered.

To accommodate the need of diverse investors who subscribed to the Sukuk, N130 billion was allocated.

Sukuk bonds are investment certificates representing ownership of the holder in an asset. Since 2017 when the Federal government began issuing sovereign Sukuk, the DMO has raised about N742.55 billion whose proceeds have been used for road construction and other infrastructure projects across the country.

The last DMO issued Sukuk in 2017 had an interest return of 16.47% with a tenor of 7 years. It was used in the construction of roads across the six geopolitical zones of Nigeria.

According to the DMO release, “the listing of the N130 billion sovereign Sukuk on the NGX and FMDQ securities exchange will expand the range of financial offerings available to investors in the capital markets.

“The opportunity to buy and sell the sovereign Sukuk will provide liquidity to investors and promote price discovery,” it noted.

08/03/2023
GSK to shut down operations in Nigeria

GlaxoSmithKline (GSK) has said it would shut down its operations in Nigeria as it plans to switch to outsourcing the distribution of its medicines and consumer goods.

With increasing competition from local companies and imports from China and India, GSK Nigeria stated that its half-yearly sales fell to N7.75 billion from N14.8 billion naira in the same period.

Its British parent company had in 2018 said it would scale down its operations in Africa and adopt a distributor-led model instead of marketing.
GSK Nigeria said it was working with advisers to agree on the next steps and plans to submit a plan of settlement to the Nigerian Securities and Exchange Commission which, if approved, will return cash to shareholders for scrap.

He also said Haleon Group had informed him of plans to terminate the distribution agreement and appoint an external distributor in Nigeria, which is facing a cost of living crisis, rising business costs, a shrinking consumer base.

“For the above reasons, and after evaluating various other options with GSK UK, the management of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations.”

Shares of GSK Nigeria, in which British drugmaker GSK has a 46.4% stake and Nigerian shareholders the remaining 53.6%, closed at 8.10 naira, falling from a peak of 42.24 naira in 2014.

Inflation in Africa’s largest economy, which has been in double digits since 2016, hit 22.79% in June and is expected to rise further after new president Bola Tinubu scrapped popular but costly gasoline subsidies and devalued the currency.
Tinubu hopes the reforms will spur economic growth and attract foreign investment, which will help increase flows to the country, which suffers from chronic dollar shortages, making it difficult for companies to import raw materials.

The dollar rate as of Thursday is $1 = 788.89 naira.

08/03/2023
Allegations against our CEE smear campaign, unsubstantiated – NUPRC

Nigerian Upstream Petroleum Regulatory Commission has described allegations against its Chief Executive of Engr. Gbenga Komolafe as a campaign by some individuals to smear his reputation.

The Commission in a statement Thursday in Abuja, said the allegations were not only malicious and completely false, but were libelous and unsubstantiated.

NUPRC Staff had barricaded the gate of the Commission demanding the immediate sack of Gbenga Komolafe, alleging he was using his position to engage in fraudulent activities.

According to the workers, Komolafe is said to be engaged in illegal recruitment, and a lack of regard for workers’ welfare, among others.

The protesting members of staff had dressed in black and red attire, in their hundreds to besiege and place a casket bearing ‘RIP Fraud’ at the main entrance to the NUPRC complex.

The Commission stated that the sum of N10 billion alleged to have been misappropriated with N4 billion donated to political parties under Komolafe, was completely false, daring the protesting workers to publish details of the transaction.

“The purveyor of the falsehood is challenged to publish details of the account of the Commission from where the donations originated from and the accounts of the political parties involved where the N4 billion and N6 billion was deposited,” the statement said.

The Commission stated that every employment exercise followed due process. According to the Commission, the Petroleum Industry Act 2021 empowers the board of the Commission to appoint, promote and remuneration.

It added that statutorily, the Federal Character Commission regulates compliance with statutory procedure with regards to recruitment into public establishments, noting that the recruitment alleged was done in compliance with all procedures and compliance certificates issued.

“The issue raised during the industrial action relates to sundry claims including travel expenses which are paid from time to time in line with the availability of funds,” it further said.

08/03/2023
Troops rescue 4 kidnapped victims, destroy bandits’ camp in Kaduna

The 1 Division Nigerian Army, Kaduna, says its troops have rescued four kidnapped victims and destroyed bandits’ camps in Kajuru Local Government Area of Kaduna State.

The Acting Deputy Director, Army Public Relations 1 Division Nigerian Army, Lt-Col. Musa Yahaya, made the disclosure in a statement issued in Kaduna.

Yahaya said that the kidnapped victims were rescued on Monday.

“In continuation of its sustained operation against bandits, kidnappers, cattle rustlers and other criminal elements in the North West.

“Troops of 1 Division Nigerian Army acting on credible intelligence has carried out a clearance operation in Kajuru local government of Kaduna State.

Yahaya explained that during the operation, troops came in contact with bandits/kidnappers and engaged them squarely.

He said they faced them with superior firepower forcing them to abandon their victims’ captives and took to their heels with various degrees of gunshot wounds.

“The troops successfully rescued four kidnapped victims captured bandits’ motorcycle and destroyed their camp,” he added.

Yayaha said the General Officer Commanding(GOC) 1 Division Nigerian Army and Force Commander Operation Whirl Punch, Maj-Gen. Bamidele Alabi commended the troops for their resilience and professionalism before and during the operation.

He charged the troops to maintain momentum so as to bring to a lasting end of the criminal activities of bandits kidnappers, cattle rustlers, and other crimes in the Division’s Area of Responsibility.

He also appealed to all law-abiding citizens to go about their legitimate businesses and avail the Nigerian Army and other security agencies with timely and credible intelligence.

08/03/2023
Subsidy Protest: I share in your pains, Gov AbdulRazaq tells labour unions

Kwara State Governor, AbdulRahman AbdulRazaq has said the state government has rolled out several measures designed to ease the inconveniences of fuel subsidy removal for its workers and the general public.

While addressing the labour unions who presented to him a protest letter over the subsidy removal, AbdulRazaq commended labour for its peaceful protest and aspirations as representatives of the Nigerian workers.

The governor, who was represented by the Deputy Governor, Kayode Alabi, said the message from Nigeria Labour Congress (NLC) was loud and clear and would be delivered to President Bola Tinubu.

“We acknowledge that this is a tough moment for everyone and we share in the temporary pains of our people,” the governor said.

He added that his administration empathises with the people and workers and would do more in addition to the moves already made by the state government to ease their pains.

AbdulRazaq explained that, as a palliative measure, grains were being purchased from the Federal Government and would soon be distributed to vulnerable households, including labour unions and affiliate organisations.

The list of beneficiaries, he said, would be inclusive and the process would involve all key stakeholders in the community.

The governor further confirmed the approval of the support for students and security agencies, which was built on what was earlier announced for all categories of workers in the state.

He said free transportation had earlier been arranged for tertiary students in the state.

“I call on the NLC to further support and work with government to implement key economic reforms for sustainable growth alongside specific palliatives until things stabilise,” the governor said.

He urged NLC to bear with the government and continue to hold talks so that everyone involved could pull through the phase in a way which would sustainably benefit the country.

“There may not be easy solutions, but Nigeria will come out of this stronger and better if everyone endures and works together,” AbdulRazaq added.

The State Chairman of NLC, Comrade Muritala Olayinka, said workers were facing a lot of challenges due to the removal of fuel subsidies.

He urged the state government to come quickly to the aid of the people in order to lessen the pains on the people and business concerns.

08/03/2023
COREN to sanction varsities over-admitting Engineering students

The Council for the Regulations of Engineering in Nigeria (COREN), has vowed to sanction any university or polytechnic that admits engineering students above its admission quota.

The president of the council, Engr. Sadiq Zubair Abubakar, who disclosed this Wednesday in Abuja said: “Education is one of the key scorecards of COREN, and I am sure you know when you study the medical profession, there is an admission quota and if your university exceeds the number granted by the medical council, then that university will be sanctioned. If the number of enrollments exceeds your facilities, they will withdraw the certificate.

“Engineering is not anything less, so we have activated that because it is already in our law, we have what we called the BMASS that defines the maximum number a university can admit in any of its engineering professions based on the facility of teaching and practical in workshop and laboratories, just like the medical students.

“We have already written to all universities; polytechnics and we are supposed to follow up with enforcement. We have had discussions with JAMB to do exactly what they are doing with the medical courses. And from the next academy session, you will not see any university that will admit engineering students more than their capacity.

“Any institution that does that will be put in the spotlight and withdraw the mandate for them to teach just like other professions are doing. We want to make sure that the skill and proficiency of the graduates whether in universities or polytechnics in engineering is sacrosanct.”

08/02/2023
$Infractions: Delist Easynaira, 17 others from Playstore, FCCPC tells Google$

Infractions: Delist Easynaira, 17 others from Playstore, FCCPC tells Google

The Federal Competition and Consumer Protection Commission (FCCPC) has asked Google to immediately delete Swiftcash, Easynaira, and 16 other loan apps from the Play Store over regulatory infractions.

CEO of the commission, Babatunde Irukere in a statement disclosed that the affected loan apps have been operating on the Google Play store without regulatory approval or in violation of the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending.

Other apps to be removed from the Google platform include Getloan, Joy Cash-Loan, Camelloan, Cashlawn, Nairaloan, Eaglecash, Moneytreefinance Made Easy, Luckyloan and Cashme. The removal order also affects Crediting, Swiftkash, Hen Credit loan, Nut loan, Cash door, Cashpal, and Nairaeasy gist loan.

Irukera said the Commission would continue to engage with Google to clarify how and why apps that have not received relevant regulatory approvals are available on Google’s platform (Playstore).

“Under the Guidelines, only DMLs that have been subjected to regulatory scrutiny and compliance evidenced by written approval from the Commission are allowed on Playstore. The Commission notes that some DMLs have resorted to the use of Android Package Kits (APK) file formats to reach consumers outside of the Google Play store.

“This appears to be a device by some of these DMLs to evade or avoid regulatory compliance,” he said.

Irukera added that compliance with the Guidelines is mandatory for all DMLs regardless of whether they intend to be placed on Playstore, operate by APK file formats, or any other means for that matter. According to him, failure to comply with the Guidelines is a violation of law and renders any such operation illegal.

Meanwhile, the FCCPC boss said all approved digital lenders will now have to revalidate their registration by submitting their information to the Commission.

“DMLS operating by any means or on any platforms whatsoever are hereby required to provide evidence of compliance with the Guidelines within five (5) days from the date of this Release. Also, all existing and approved DMLS providing digital lending services through APK file formats in addition to Playstore, are required to provide evidence that such APK operations are in compliance with the law.

“All previously approved DMLs or otherwise must revalidate the information provided to the Commission by filling DL Form 01 and resubmit the same,” the Commission said in the statement released on Wednesday.

The need for revalidation of registration by the DMLs may not be unconnected with the recent discovery that some of the approved lenders are also engaging in illegal practices of harassing and defaming their customers to recover their debt.

08/02/2023
Nigeria’s equities bounces back, gains N41bn

Transactions on the floor of the Nigerian Exchange (NGX) on Wednesday closed on a positive note, appreciating by N41 billion.

The market capitalisation of listed equity appreciated by 0.12 percent to N34.973 trillion from N34.932 trillion reported the previous day.

The NGX All Share Index also increased 75.16 basis points to 64267.36 points from 64192.20 points traded the previous day.

A review of the investment showed that Nascon, Chams Plc, and Abbey Building Society led the gainers’ table in percentage terms, gaining 10 percent to close at N35.75 per share, N0.99 and N1.21 per share respectively.

Skyways Aviation Handling followed with a gain of 9.96 percent to close at N28.15 per share, and Dangote Sugar Refinery added 9.93 percent to close at N32.65 per unit.

On the other hand, Thomas Way and TIP topped the losers’ chart with a drop of 10 percent each to close at N1.17 and N0.72 per share respectively. UPL trailed with a loss of 9.78 percent to close at N2.49 per unit, Omatek fell by 9.76 percent to close at N0.37 per share, JohnHolt was down by 9.44 percent to close at N1.63 per share.

Volume of trades declined by 431.313 million, representing 56.60 percent as investors traded 330.784 million shares valued at N4.269 billion in 6251 deals against 762.097 million shares worth N7.710 billion in 7935 deals.

Trading activities on the shares of Transnational Corporation of Nigeria (Transcorp) led market activities with 58.829 million shares worth N209.186 million, FBNHoldings followed with an account of 27.951 million shares cost N502.759 million, Ecobank Transnational Incorporate traded 21.303 million shares cost N330.246 million, AccessCorp exchanged 20.697 million shares cost N34.178 million while Chams Plc traded 16.964 million shares valued at N16.135 million.

08/02/2023
Lamido’s N712m Money Laundering Case: HEDA hails EFCC’s appeal

Anti-corrupt group, Human and Environmental Development Agenda (HEDA Resource Centre) has commended the Economic and Financial Crimes Commission (EFCC) on its appeal of the recent judgment of the Court of Appeal, Abuja judicial division.

The Court discharged the former Governor of Jigawa State, Alh. Sule Lamido and his two sons, Aminu and Mustapha Lamido of corruption and money laundering charges on the grounds that the prosecution had filed the charge at the wrong judicial division of the Federal High Court.

Earlier, the EFCC had charged the former Governor and his two sons with money laundering offenses at the Abuja judicial division.

After presenting six witnesses, the anti-graft agency closed its case, and the defendants subsequently filed a no-case submission.

However, Justice Ojukwu of the Federal High Court dismissed the no-case submission, ruling that the defendants had a case to answer. Dissatisfied with the ruling, the defendants decided to appeal to the Court of Appeal.

A panel of three jurists, led by Hon. Justice Adamu Waziri, reviewed the case and concluded that the money laundering charge should have been filed in Jigawa State, where the alleged offenses were committed. Based on this finding, the Court of Appeal discharged the defendants.

In response to the judgment, HEDA Resource Centre’s Chairman, Olanrewaju Suraju, expressed concerns, citing a precedent set by the Supreme Court in the case of Dele Belgore.

In the Belgore case, the Supreme Court also overturned a no-case submission ruling by the Federal High Court. However, unlike the Lamido case, the Supreme Court ordered the case to be re-filed and prosecuted in the appropriate judicial division, which was Kwara State.

Suraju also highlighted another relevant case, that of Senator Orji Uzor Kalu & Ors, wherein the Supreme Court overturned the judgment of the Federal High Court due to jurisdictional issues.

In that case, the Supreme Court ordered a re-trial of the defendants, instead of discharging them.

He stressed that an appellant whose appeal is based on an application or an interlocutory appeal, and not on the final judgment of the trial court, should not be discharged by the appellate court. Such discharges could set a wrong precedent, suggesting that technical errors may lead to acquittal.

Suraju therefore called on the EFCC, as the prosecutor, to pursue further appeal at the Supreme Court. He emphasized that Nigerians cannot afford a precedent that fails to ensure consequences for money laundering, corruption, and misappropriation of public funds.

The EFCC’s response and the potential implications of further appeal will be closely watched, as the case involves high-profile individuals and raises important questions about the judicial process surrounding corruption cases in Nigeria.

08/02/2023