Category: Business

The Nigerian Exchange witnessed continued negative sentiment on Thursday, resulting in a decline of N111 billion in profit-taking.

Profit-taking activities were observed in some medium and large-cap stocks, contributing to the overall dip.

The market capitalization of listed equities dropped by 0.31 percent, sliding from N35.745 trillion to N35.634 trillion compared to the previous day’s figures.

The NGX All Share Index also experienced a decline of 204.25 basis points, closing at 65482.91 points from the previous day’s 65687.16 points.

Among the gainers, Lasaco Insurance led the pack, appreciating by 10 percent to reach N2.09 per share.

Multiverse followed closely with a gain of 9.96 percent, closing at N2.98 per share, while Skyways Aviation Handling added 9.91 percent, closing at N23.30 per unit. Other gainers included RTBriscoe and CAP Plc, with gains of 6.00 percent and 5.26 percent, respectively.

On the flip side, Japaul Gold recorded a high percentage, dropping by 9.91 percent to close at N1.00.

Cadbury Nigeria Plc trailed with a loss of 9.80 percent, closing at N13.80 per unit.

FTNCocoa and Neimeth International Pharmaceutical also experienced declines of 9.40 percent and 3.34 percent, respectively.

Courtvellle Business Solutions closed the list of losers with a decline of 9.09 percent, closing at N0.60 per share.

A total of 509.247 million shares valued at N4.795 billion were traded in 8070 deals on the previous day. This was in contrast to 500.43 million shares valued at N7.14 billion in 7345 deals the day before.

Japaul Gold dominated market activities during the day, exchanging 115.697 million shares valued at N129.723 million. United Bank for Africa (UBA) followed with 40.430 million shares, worth N595.919 million.

Transnational Corporation of Nigeria traded 37.498 million shares worth N133.499 million, while FCMB group exchanged 34.989 million shares valued at N237.688 million. Fidelity Bank also recorded significant activity, trading 31.846 million shares worth N271.168 million.

The African Export–Import Bank (Afrixembank) on Thursday in St Petersburg, Russia, announced a credit limit of 30 billion dollars to support African investors willing to exploit the opportunities in Russia.

The President and Chairman Board of Directors of Afrixembank, Dr Benedict Oramah, said this at the opening session of the 2^nd Russia-Africa Economic and Humanitarian Forum.

Oramah said that the scheme under the African Trade Exchange would promote easy flow of trade between Russia and Africa.

“The African Trade Exchange is a platform which we use to pool African demand for grains and fertilizers against which Afrixembank has placed an aggregate credit limit amounting to three billion dollars to support the trade.

“The three billion dollars represents what is available and can be used on a revolving basis to support the significant demand for food and fertilizers on the continent of Africa,’’ he said.

Oramah also said that through partnership with the Russia Export Center, Afrixembank will be able to support African investors who are willing to exploit the opportunities in Russia.

While appreciating investments from Russia into Africa, he expressed optimism that African investors would also invest in Russia.

According to him, it is where we have two way investments that we can accelerate trade flows and economic integration.

“We projected moving two way trade to closer to 40 billion dollars by 2026, in the four years to 2021 the trade flows reached almost 20 billion dollars from about 10 billion dollars five years earlier.

“These are despite the COVID-19 pandemic and all the significant global difficulties.

`With the strong partnership between Afrixembank and Russia Export Center, we expect a doubling of the trade flows in the next four years.

“Some progress is being made and we believe that this is achievable,’’ Oramah said.

The Afrixembank President further said that the global food security challenges brought to the fore the critical role trade with Russia plays in guaranteeing Africa’s food security.

He said that a significant proportion of African economies depend on Russia for the supply of fertilizers and 30 per cent of African cereal imports from Russia.

According to him, ensuring that these trade flows continue remains the priority of Afrixembank and its African member states.

“That is why in the context of unprecedented global uncertainties, Afrixembank has been working with the African Union Commission, the United Nations System and our Russian partners to use the e-commerce African Trade Exchange.

“This will facilitate seamless flow of goods and payments in any currencies the sellers and buyers choose and in a transparent manner,’’ he said.

Oramah expressed Afrixembank’s readiness to offer trade services, easy confirmation facilities and payment services under the African Trade Exchange platform.

“We look forward to continuing this effort with our Russian partners and using this platform to ease access to grains and fertilizers,’’ he said.

Oramah who said that 300 million Africans go hungry daily emphasised the need for effort towards ensuring food security.

“It is important that we all do our best to make sure that until we begin to achieve food sovereignty that we ensure that food security is attained.

“Beyond the immediate food security priorities, Afrixembank and the Russia Export Center are collaborating to promote trade and investments in other critical sectors.

“This is with emphasis placed on those activities that will help integrate the African economy and advance the implementation of the African Continental Free Trade Agreement (AfCFTA),’’ he said.

Oramah expressed the bank’s readiness to offer array of products to support investments in agriculture, industrial sector, parks, health and other critical infrastructure.

“By the end of the summit, I hope that Russia and Africa will have strengthened their solidarity, laid the foundation for rebuilding the supply chains for grains and fertilizers trade which is today a bit broken.

“This is important so the billions of dollars in the trade can continue,’’ he said. 

Following the Directive from the Central Bank of Nigeria (CBN), Deposit Money Banks (DMBs) have lifted restrictions placed on the account of about 440 of its customers nationwide.

A Federal High Court sitting in Abuja, had in August 2021, granted the request of the CBN to freeze accounts of some fintech companies for 180 days.

The CBN, in a motion filed at the court, stated that “the investigation being carried out concerns what has been discovered to be serious infractions by the defendants/respondents in connection with some foreign exchange transactions and non-documentation by the defendants/respondents in violation of the extant laws and regulations, particularly the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act and the Central Bank of Nigeria foreign exchange manual.”

However, in a circular to DMBs signed by the Director of Banking Supervision, A.M. Barau,, the regulator directed the banks to inform all the affected customers, comprising companies and individuals of the decision. 

“You are hereby directed to vacate the Post-No-Debit restriction placed on the accounts of the under-listed bank customers at our instance. You are also required to inform the concerned customers of the vacation accordingly,” it said.  

No reason was given for the new directive.

Some of the companies affected by the Apex Bank decision include:

Bamboo, Risevest, and a sports betting company, Nairabet.

Others are: Chaka Technologies Limited, Trove Technologies Limited, and crypto exchange, Yellow Card Financial, amongst several others.  

The Central Bank of Nigeria (CBN) on Wednesday said that its e-Naira policy was designed to complement the existing physical Naira and to provide a more efficient, secured, and accessible means of payment.

Mr. Haludu Andaza, Branch Controller, CBN, Bauchi said this on Wednesday, when the Apex bank took its e-Naira policy campaign to the Federal Polytechnic, Bauchi.

Andaza also said the policy would aid financial transactions in institutions, adding the e-Naira was the digital currency of Nigeria.

According to him, it represents a remarkable leap forward in how we interact with money, and it is tailor-made to meet the needs of our vibrant and dynamic community.

“One of the primary advantages of the e-Naira lies in its unparalleled convenience, because with this digital currency, individuals can swiftly and easily make payments without relying on physical cash or traditional payment cards.

“The e-Naira streamlines the payment process, allowing for seamless transactions in various scenarios.”

The branch controller explained that the e-Naira operated on robust blockchain technology, ensuring a high level of security.

“This advanced technology makes it incredibly challenging to counterfeit or compromise the currency, providing peace of mind to both users and businesses.

“By adopting the e-Naira, we booster the integrity and trustworthiness of our financial ecosystem,” he said.

Andaza also said the e-Naira initiative was expected to play a vital role in promoting financial inclusion, particularly for individuals without access to traditional banking services.

He stressed the need for the polytechnic community to embrace and migrate to the cashless system for financial security and efficiency using the E-Naira platform.

“This digital currency opens doors for those who may have been previously excluded from the formal financial system, granting them the ability to engage in digital transactions and experiencing the benefits of financial empowerment.”

In his remarks, Alhaji Sani Usman, Rector of the institution lauded the CBN initiative and campaign to educate the management and Nigerians on the e-Naira policy.

He assured that the institution would embrace the policy and ensure its success by ensuring that both staff and students were keyed into it. 

First Bank Holding Plc has announced the appointment of billionaire investor, Mr Femi Otedola as Non-Executive Director subject to the approval of its shareholders at the upcoming Annual General Meeting (AGM) scheduled for August 15, 2023.

In a notice of the meeting sent to shareholders, Otedola was listed as a substantial shareholder with 5.57 per cent of the total shareholdings, translating to 10,000,000 units of shares directly held and 1,989,342,376 units of shares held indirectly under Calvados Global Limited as of June 30, 2023.

Similarly the group is seeking shareholders’ approval to raise additional capital at the group’s Annual General Meeting (AGM) scheduled for August 15, 2023.

The capital raise transaction shall be by way of a Rights Issue, on such terms and conditions and on such dates as may be determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities.

“That the Rights Issue referred to in Resolution may be underwritten on such terms as may be determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities. That the shareholders, under Resolution, will waive their preemptive rights to any unsubscribed shares under the Rights Issue in the event of an under-subscription.

“That the Directors be authorized to appoint such professional parties and advisers and to perform all such other acts and do all such other things as may be necessary to give effect to the above resolutions, including without limitation, complying with the directives of any regulatory authority.

“That Clause 6 of the Memorandum of Association of the Company is amended to reflect the newly issued share capital of 22.435 billion by the creation of 8.974 billion Ordinary shares of 50 Kobo each”.

“That the Directors’ fees for the financial year ending December 31, 2023, and for succeeding years, until reviewed by the Annual General Meeting, be fixed at N50 million for each Director and N63.7 million for the Board Chairman That the Company’s Issued Share Capital be increased from N17.948 billion made up of 35.895 billion Ordinary shares of 50 Kobo each to N22.434 billion by the creation of 8.974 billion Ordinary shares of 50 Kobo each”.

FBN Holdings Plc reported N206.3 billion profit after tax in its unaudited financial statements for the first half (H1) of the year ended June 30, 2023. 

The Federal Competition & Consumer Protection Commission (FCCPC), has warned the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) not to engage in illegal increase in Point of Sale (PoS) charges.

The Executive Vice Chairman/Chief Executive Officer of FCCPC, Babatunde Irukera, in a statement on Monday, said the action comes as a reminder to the operators that its earlier advisory to them still stood.

According to Irukera, “On Wednesday, July 5, 2023, the Federal Competition & Consumer Protection Commission issued a Release/Advisory informing and discouraging the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) its members, and Point of Sale (PoS) Operators from engaging in coordinated or concerted efforts (otherwise known as price-fixing or cartel), and or acting in furtherance of any such coordinated or concerted efforts to uniformly determine, announce or implement changes in price[s] of services they render. 

“The Commission from monitoring news channels, and continuing surveillance regarding subjects of regulatory concern has become aware of what appears to be an adamance of AMMBAN and their insistence on a membership-wide implementation of illegal conduct.

“Specifically, certain news coverage and reportage suggest that a supposed national publicity secretary of the purported AMMBAN has dismissed regulatory statements while confirming a resolve to execute what has been declared illegal, which is a concerted and coordinated approach to uniformly fixing and implementing prices or modifications thereto.

The FCCPC helmsman warned that the Commission will not fail to invoke the full weight of the law on the Association should they decide to go ahead with their plan to increase PoS charges.  

The Commission expressed concern about such statements, noting that the impunity associated with defiance or persisting in a course of action prohibited by law, and clearly forbidden by regulators usually constitutes aggravating factors in determining penalties for illegal conduct where applicable.

The FCCPA provides the Commission with statutory tools to ensure compliance and penalise violations of the law. As previously noted, some of these penalties are stiff.

Accordingly, the Commission in escalating this in accordance with the FCCPA and ancillary instruments, has entered an Order & Notice (ONC) of the Commission to AMMBAN, persons identified as executives, members and non-member PoS operators to Cease and Desist from conduct that constitute an infringement of the law.

“The Commission therefore advised PoS operators that violation of an order of the Commission attracts additional consequences apart from the underlying illegal conduct that is the subject of the order such as up to N10,000,000 for corporate entities; and N1,000,000 and or a prison sentence of up to three months for individuals.   

“In addition to stipulated statutory consequences, although the Commission prefers not to disrupt the business and operations of small enterprises, it will, (if it becomes necessary) prohibit merchant services and privileges to PoS operators or AMMBAN members who persist in conduct that is inconsistent with law and economic efficiency,” the Commission said.

Innoson Vehicle Manufacturing (IVM), has said it would establish car fuel conversion in all its service centres before the end of 2023.

Currently, the vehicle manufacturer is converting only vehicles produced by the company from fuel to Compressed Natural Gas (CNG) to suit the current economic situation occasioned by the removal of the fuel subsidy.

The pronouncement by President Bola Tinubu during his swearing in speech that ‘fuel subsidy was gone’ had led to a hike in the pump price of fuel from N197 to over N500 before it was further increased to N617 per litre by the NNPC Limited.  

Speaking on Monday in Onitsha, Head of Corporate Communications at Innoson Group, Mr Cornel Osigwe, said CNG vehicles are more durable, easier to maintain than petrol vehicles and the gas is cheaper than petrol.

Osigwe added that the challenges associated with cars or vehicles converted to CNG was that they were easier to maintain and more environmentally friendly.

 “It is more environmentally friendly than petrol vehicles; Nigeria has a large abundance of gas.

“We just want other industry players to come in and take advantage of this opportunity and it will be better for Nigeria’s economy as we have it now”, he said.

When asked about the cost of converting a car or vehicle from fuel or diesel to a CNG, he noted that when there was huge demand for conversion, the price would automatically go down.

“But I believe that it is what an average vehicle user can afford,” he said.

The Nigerian Exchange witnessed a positive trading session on Monday, resulting in a substantial gain of N145 billion.

Notably, companies such as Dangote Sugar, FBNHoldings, Stanbic IBTC, and Northern Nigeria Flour Mills contributed significantly to this surge.

The market capitalization of listed equities experienced a 0.41% increase, rising to N35.539 trillion from N35.394 trillion recorded on the previous Friday.

Furthermore, the NGX All Share Index showed remarkable growth, surging by 264.89 basis points to reach 65268.28 points, compared to the previous close at 65003.39 points.

Among the notable companies that performed remarkably well, FTNCocoa, Gloxosmith, Lasaco, and Nascon achieved a 10% growth at the end of the trading session. Stanbic IBTC closely followed with a gain of 9.97% to close at N68.95 per share.

On the flip side, Ikeja Hotel experienced the most significant loss, dropping by 10% to close at N2.70 per unit.

Multiverse trailed with a loss of 9.97%, while EllahLakes dipped by 9.86%. However, Abbay Building Society and Thomas WY managed to gain 9.82% and 9.55% respectively.

The volume of transactions also saw a notable increase, with investors trading 831.50 million shares valued at N12.94 billion in 9768 deals, representing a 7.88% rise in volume compared to the previous day.

FBNHoldings led market activities during the day with 346.996 million shares valued at N7.436 billion, followed by United Bank for Africa with 62.786 million shares worth N925.937 million, and FCMB Group with 45.744 million shares worth N312.107 million.

Overall, the Nigerian equity market showcased resilience and positive momentum, attracting investor interest and contributing to the overall economic outlook.

The Dangote Industries Limited (DIL) and the Niger State Government are strengthening ties towards exploring fresh investment opportunities in the State.

Mr Mansur Ahmed, Dangote Group’s Executive Director, Government and Strategic Relations, stated this during the Dangote Special Day at the 20th Niger State National Trade Fair in Minna.

He said that Niger State was central to the company’s overall investment plan in the agricultural sub-sector.

He said the Dangote rice mill earlier planned for Wushishi was being moved to Badeggi where there is enough water supply which is conducive for rice farming and business.

He also announced the company’s preparedness to partner with the state government in the educational sector.

Ahmed said that given the land size, fertile topography, and friendly business atmosphere, DIL was passionate about adding value to the activities of the Chamber and businesses in the state.

Governor Mohammed Bago expressed delight at DIL’s investment in the agricultural and educational sectors, adding that the new government would create an enabling environment for businesses to thrive in the state.

Bago, who was represented by the Permanent Secretary, Public Service Department of the state’s Head of Service, Mr Abubakar Sadiq, urged the Dangote Group to leverage on the renewed business opportunities in the state.

FBN Holdings has been fined the sum of N9.6 million for failing to comply with the regulations of the capital market authority for the 2022 financial year.

The banking giant was sanctioned for the late submission of the 2022 Full Year audited financial statements and first quarter (Q1) 2023 unaudited financial statements.

NGX Regulation Limited fined FBN Holdings, the parent company of First Bank Nigeria the amount for not adhering to the regulations on the release of financial statements.

Meanwhile, FBN Holdings recorded a 55.2 per cent increase in its Net Interest Income in the first half (H1) of 2023, closing the period with N237.33 billion

This was disclosed in the company’s Unaudited Consolidated Financial Statements for the period ending June 30, 2023, released at the weekend.

The rise in the Net Interest Income represents an addition of N84.41 billion, as FBN Holdings reported N152.91 billion in the same period in 2022.

In the same vein, FBN Holdings’ operating profit grew by 212.8 per cent year-on-year, as the company reported N206.08 billion in the first half 2023, which surpassed the N65.87 billion recorded in the first half of 2022.

The profit after tax followed the same path, with FBN Holdings generating N187.17 billion in the first six months of this year, up by 231 per cent when compared to the N56.53 billion posted in the corresponding period of 2022.

During the review period, FBN Holdings saw a 33.19 per cent increase in its Electronic banking fees, generating N34.01 billion from the use of its cashless channels. In the first half of 2022, the company generated N25.53 billion.

The financial services group reached the revenue milestone riding on the wave of higher interest rates in Nigeria, which have risen 650 basis points to 18.5 per cent since May 2022, enabling lenders to charge more for loans.

Interest income, which often accounts for the lion’s share of lenders’ revenues, surged by 64 percent growth to N179.61 billion, driven mainly by loans and advances to customers at N119.41 billion, investment securities at N48.93 billion and loans and advances to banks at N11.27 billion.

FBN Holdings’ net interest income hit a decade high to N111.85 billion in the first quarter of 2023, a 53.6 percent increase from N72.8 billion recorded in the first quarter of 2022.

Consequently, the holding company saw its interest expense grow 84.9 percent to N67.76 billion on the back of N46.6 billion expense on deposits from customers, deposit from banks expense which stood at N14.50 billion, borrowings and others at N6.67 billion in March 2023.

FBN Holdings’ revenue from external customers arrived at N259.51 billion which comprised commercial banking business group (N245.51 billion), merchant banking and asset management business group (N13.08 billion) and others (N918 million) for the period ended March 2023.

Commenting on the result, Adesola Adeduntan, chief executive Officer of First Bank of Nigeria said, “This year marks our 129th anniversary, and these results clearly demonstrate the resilience of our business model and proven ability to transform ourselves to meet the demands of changing times and seasons.”

“We are optimistic about the rest of 2023 and these results are a sign of better things to come,” Adeduntan said.

The holding company received N42.87 billion in fee and commission income while N7.57 billion was incurred as fee and commission expense in the first quarter of 2023.