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Tag: Nigerian Exchange Limited (NGX)

  • NGX Group’s Revolutionary e-Offering Platform Goes Live following SEC Approval

    NGX Group’s Revolutionary e-Offering Platform Goes Live following SEC Approval

    …Access, FCMB, Fidelity Now Utilizing NGX Invest APIs

    Nigerian Exchange Group (NGX Group) has unveiled NGX Invest, a groundbreaking digital platform designed to streamline Public Offerings and Rights Issues in the Nigerian capital market. The platform, which has received approval from the Securities and Exchange Commission (SEC), is now live, promising an efficient, convenient, and seamless experience for managing primary market transactions.

    NGX Invest represents a significant leap forward in improving stakeholder experience within Nigeria’s capital market. Building on the success of the country’s first digital public offering in 2021 – which attracted over 150,000 new retail investors, 75% of whom were female and 85% under the age of 40 – NGX Invest enhances transparency and accessibility in primary market transactions.

    The launch of NGX Invest comes at a crucial time, coinciding with the Central Bank of Nigeria’s (CBN) Banking Recapitalisation directive, which has prompted numerous offers for subscription and rights announcements by Nigerian banks. Both the CBN and SEC have provided robust regulatory support for this initiative. Investors can now access the platform at https://invest.ngxgroup.com. Access Holdings Plc, FCMB Group and Fidelity Bank Plc are already utilizing the NGX Invest APIs to distribute their offerings to retail investors. More banks are in the process of onboarding to leverage this platform.

    Dr. Emomotimi Agama, Director-General of the Securities and Exchange Commission, commended the initiative, stating, “The e-Offering Platform aligns perfectly with our objective of futureproofing the Nigerian capital market. By digitalising and automating financial intermediation processes, we are fostering a more efficient, transparent, and inclusive capital market. At the Commission, our focus is on creating an enabling regulatory environment that promotes innovation without compromising compliance and investor protection. I commend NGX Group for its strategic investment in advancing our capital markets”.

    Alhaji (Dr) Umaru Kwairanga, Group Chairman of NGX Group, commended the regulators, stating, “The supportive regulatory environment has provided a solid foundation that enabled the swift delivery of the platform. This reflects our mutual commitment to market development and will undoubtedly contribute to boosting the participation of retail investors in the capital market.  As we strive for the market to play a larger role in Nigeria’s economic development, the integration of technology, strong partnerships, and collaboration, alongside a positive policy environment, will be essential”.

    Temi Popoola, Group Managing Director/Chief Executive Officer of Nigerian Exchange Group (NGX Group), expressed enthusiasm for the new platform noting its significance in NGX Group’s digital transformation journey and ability to enhance market access and foster economic growth. “We sincerely appreciate SEC and CBN for their strong support and leadership. Our intermediaries and partners, including the Central Securities Clearing System (CSCS), have been instrumental in achieving this success. This platform demonstrates our commitment to innovation and strengthening Nigeria’s capital markets, particularly as we support the banking sector’s recapitalisation efforts”.

    Popoola emphasised that NGX Invest is designed to significantly enhance the efficiency of public offering subscriptions and rights issue processes, streamlining operational workflows to better support issuers’ capital-raising efforts.

    Jude Chiemeka, CEO of NGX, underscored the platform’s transformative potential: “NGX Invest addresses the demand for a more efficient and transparent process in managing public offers and rights issues. It will expedite reconciliation and allotment processes, reduce unclaimed dividends, and boost investor confidence. All stakeholders – including investors, registrars, issuing houses, brokers, banks, and regulators – stand to benefit significantly from this innovation.”

  • NGX Launches Impact Board for Sustainable Instruments

    NGX Launches Impact Board for Sustainable Instruments

    Nigerian Exchange Limited (NGX) has unveiled its Impact Board, a dedicated platform for listing sustainability instruments, following approval from the Securities and Exchange Commission (SEC). This initiative was announced during a Closing Gong Ceremony in Lagos on Wednesday, July 10th, honouring Mr Balarabe Abbas Lawal, Minister of Environment, and commemorating the 8th Green Bond Advisory Group Meeting.

    The ceremony, which saw Mr. Lawal, Co-Chair, Green Bond Advisory Group Meeting, engage with investors and stakeholders on the proposed federal government Green Bond issuance, brought together key figures in Nigeria’s financial and environmental sectors. Attendees included Dr. Emomotimi Agama, Director-General of the SEC, alongside delegates from the Debt Management Office, Ministry of Environment, issuers, and issuing houses.

    This launch marks a pivotal moment in NGX’s steadfast commitment to integrating sustainability into the core of Nigeria’s capital market. By providing a high-visibility platform for sustainability instruments, NGX aims to usher in a new era of responsible investing, offering forward-thinking issuers access to purpose-driven capital.

    Addressing the pressing environmental challenges facing the country, Mr. Lawal emphasized, “With issues like flooding, pollution, and deforestation, we urgently need funds to tackle them. This is why we are approaching the market.” His sentiment was echoed by Dr. Agama, who affirmed SEC’s support: “We are ready to bolster the sustainable finance market, aiming to deepen it with diverse instruments that contribute to Nigeria’s sustainable development.”

    Alhaji (Dr.) Umaru Kwairanga, Group Chairman, Nigerian Exchange Group (NGX Group) highlighted NGX’s capabilities, stating, “We possess the capacity, resources, and technology to raise the funds required by the Federal Ministry of Environment and the Nigerian economy to achieve the goals outlined in the Paris Agreement and the Sustainable Development Goals.”

    Mr. Ahonsi Unuigbe, Chairman of NGX, underscored the significance of the Impact Board, noting its potential to encourage issuers like the Federal Government to leverage the market for financing strategic, sustainability-focused projects.

    Further emphasizing the Group’s commitment, Mr. Temi Popoola, Group Managing Director and CEO of NGX Group, stated, “We are dedicated to driving sustainability with the right frameworks, which is why giving visibility to this class of instruments is crucial for achieving our goals.”

    Mr. Jude Chiemeka, CEO of NGX, framed the launch as more than just a new platform, describing it as “a paradigm shift in how we approach finance and development.” This sentiment was reinforced by Mr. Abimbola Babalola, Head of Trading and Products at NGX, who highlighted the Board’s potential to foster capital-raising opportunities and create new tradeable products for investors.

    The timing of the Impact Board’s launch, coinciding with the 8th Green Bond Advisory Group Meeting, underscores the growing momentum behind sustainable finance initiatives in Nigeria. This synergy between governmental environmental strategies and market-driven solutions promises to accelerate the country’s progress towards its sustainability goals.

    As Nigeria steps into this new chapter of sustainable finance, the Impact Board stands poised to attract both domestic and international investment, driving growth and supporting the nation’s sustainable development agenda. This innovative platform not only represents NGX’s vision for the future but also sets a new standard for responsible investing in Africa’s largest economy, potentially serving as a model for other emerging markets.

  • Chiemeka’s appointment as NGX CEO will deepen market growth – Professional Group

    Chiemeka’s appointment as NGX CEO will deepen market growth – Professional Group

    The appointment of Jude Chiemeka as the Chief Executive Officer (CEO) of the Nigerian Exchange Limited (NGX) has continued to generate widespread acclaim from industry professionals, who believe his extensive experience and proven leadership qualities will drive NGX towards sustained success.

    Chiemeka, a seasoned executive with a robust background in finance and management, brings over 30 years of professional experience in securities trading, asset management, and investment banking across African markets. He joined the Nigerian Stock Exchange as the Divisional Head of Trading Business in February 2019 and became the Divisional Head of Capital Markets in 2021. Before his current position, he was the Executive Director of Capital Markets at NGX.

    As Chiemeka steps into his new role, the Securities and Investment Empowerment Network (SIEN), a prominent professional group in the finance sector, has described his appointment as a transformative force capable of deepening growth and further enhancing confidence in the market.

    The group in a statement signed by its President, Dr. Albert Ogunseyinde, said Chiemeka’s extensive experience provides him with a deep understanding of the complexities of the financial markets and the strategic vision needed to navigate them.

    “Chiemeka’s appointment as CEO of NGX is a testament to his exceptional leadership abilities and extensive industry experience,” said  Ogunseyinde. “His deep understanding of the financial markets, coupled with his strategic acumen, makes him the ideal person to lead NGX into a new era of growth and innovation.

    “His amiable leadership style, characterized by a commitment to excellence and a focus on stakeholder engagement, has earned him a reputation as a transformative leader. His previous roles have demonstrated his ability to drive organizational change, enhance operational efficiency, and foster a culture of transparency,accountability and empathy.”

    Before joining the Exchange, Chiemeka worked at United Capital Securities Limited, a subsidiary of United Capital Plc. As the Managing Director/Chief Executive Officer, he led significant initiatives such as the first cross-border trading under the West African Capital Market Integration initiative. He was also instrumental in strategy, market penetration, product development, and client management. Notably, he spearheaded the issuance and listing of the first Eurobonds Mutual Fund ($10M) on the Nigerian Exchange Limited and launched the Wealth for Women Mutual Fund, the first gender-focused mutual fund listed on the Exchange.

    Before his tenure at United Capital Plc, Chiemeka served as the CEO/MD of Chapel Hill Denham Securities. In this role, he was responsible for strategy, leadership, product development, and customer relationship management. Under his leadership, the firm ranked among the top 10 brokerage firms, accounting for over 70% of market trades with a 4% market share. Before that, he was the CEO/MD of RenCap Securities (Nigeria) Limited, a subsidiary of Renaissance Capital Plc, where he handled customer relationship management, trading, management reports, budgets, and client acquisition.

    In 2008, he was the Head of Securities Trading at Afrinvest West Africa Ltd, managing fixed-income and equities transactions across African markets for international and domestic institutional clients. He participated in several landmark transactions, including the first Global Depository Receipts (GDR) transaction on the Nigerian Stock Exchange, Nigerian International Debt Fund, and Reverse GDR trades. His career began in 1994 at Dominion Trust Limited.

    SIEN said with Chiemeka’s boisterous resume, NGX is expected to undergo significant advancements under his leadership. The group said industry experts anticipate that his strategic initiatives will focus on leveraging technology to enhance trading processes, improving market accessibility, and fostering investor confidence.

    Chiemeka’s vision for NGX aligns with the broader objectives of positioning the exchange as a leading player in the global financial markets. The Nigerian Exchange Limited plays a crucial role in the nation’s economic development by facilitating capital formation and promoting investment opportunities. With Chiemeka at the helm, we are confident that NGX will continue to contribute significantly to the growth and diversification of Nigeria’s economy,” said Ogunseyinde.

    “There is now a palpable sense of optimism about the future of the Nigerian Exchange Limited as the financial community looks forward to a new era under Chiemeka’s leadership. With his extensive experience, strategic vision, and commitment to excellence, we believe Chiemeka is well positioned to steer NGX towards a path of sustained success and greater prominence in the global financial ecosystem.”

    Chiemeka, is a Fellow and Council Member of the Chartered Institute of Stockbrokers (FCS), a Member of the Institute of Directors (IOD), and the Chartered Institute for Securities & Investment (CISI), UK. He is also a Fellow of the Association of Investment Advisers and Portfolio Managers and an Associate of the Certified Pension Institute of Nigeria. He holds degrees from the University of Oxford, UK, Lagos Business School, and the University of Lagos. He is married to Temitayo Chiemeka and they are blessed with Children.

  • Timely approval of deals could advance Nigeria’s energy fortunes, says Roger Brown

    Timely approval of deals could advance Nigeria’s energy fortunes, says Roger Brown

    Seplat Energy PLC, leading Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, says Nigeria’s sub-surface potentials could be largely optimized and oil/gas production levels increased if divestment and other related deals are expedited.

    The CEO Seplat Energy, Mr. Roger Brown, said this at the 2024 NOG Energy Week Conference & Exhibition recently held in Abuja.

    Mr. Brown, who spoke during a panel session dubbed ‘Defining the Regulatory Frameworks Required to Support the Capabilities of Independents and Incentivise Growth’ said success of Nigerian Independent energy companies will benefit Nigeria through oil revenues and the development of a domestic gas-to-power industry, thus helping to fund expansion into renewable energy to help Nigeria increase energy access and unlock its entrepreneurial population by providing reliable and affordable energy in accordance with the UN Sustainable Development Goals.  

    The Seplat Energy CEO said: “International Oil Companies (IOCs) will look to divest to credible local players, those with high levels of governance and accountability in their ESG efforts. Indigenous players also need strong balance sheets and credibility in international financial markets, because the assets they’re acquiring will doubtless need future development.

    “Also, indigenous companies must commit to working with communities to maintain or increase Nigerian content, as Seplat Energy has been doing for many years.”

    Speaking to the country’s energy aspirations, he said the independents will play a key role in realising the aspirations of the “Decade of Gas”,  adding that strong governance framework is needed to support bankability of private sector direct participation/investment in this space.  

    Nigeria’s biggest decarbonisation priority is to end small-scale generation and get households and businesses onto a reliable national grid that uses our gas resources, lowers the cost of electricity and allows renewable energy to be developed and connected into a nationwide grid.

    Seplat Energy is committed to ending routine flaring by mid-next year, and we urge all other producers to make this a priority.

    Seplat Energy’s new ANOH gas plant can supply enough gas to support more than 1GW electricity on the grid and this can displace hundreds of thousands of home generators; so, it will reduce the cost of electricity and hopefully get rid of these expensive and highly polluting generators, which are just a huge drag on Nigeria’s economy and which create massive problems with carbon emissions.

  • Fidelity Bank: Here’s the perfect opportunity to grab your slice

    Fidelity Bank: Here’s the perfect opportunity to grab your slice

    On Thursday June 20, Nigeria’s 6th largest bank, Fidelity Bank Plc will open its public offer and Rights Issue.

    Iheanyi Nwachukwu of BusinessDay newspapers said the bank is raising a total of up to N127.100billion by way of a Rights Issue to existing shareholders and a Public Offer (the Combined Offer).

    Under the Rights Issue, 3.2 billion ordinary shares of 50 kobo each will be offered in the ratio of 1 new ordinary share for every 10 ordinary shares held as of January 5, 2024, at N9.25 per share.

    For the Public Offer, 10 billion ordinary shares of 50 kobo each will be offered to the general investing public at N9.75 per share.

    The acceptance and application lists for the Rights Issue and Public Offer which will open on Thursday, June 20 will close on Monday July 29, 2024.

    The Combined Offer is a part of the bank’s strategy to increase its share capital base in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN) on March 28, 2024.

    Stanbic IBTC Capital is the Lead Issuing House to the Combined Offer, while the Joint Issuing Houses include Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited and Planet Capital Limited.

    As part of the capital raising process, Fidelity Bank will hold a presentation on the facts behind the offer this Thursday, June 20, at the Nigerian Exchange Limited (NGX).

    Overall, the bank expects that the capital raised would support its efforts to drive sustained growth and diversification of its earnings base.

    The bank’s shareholders had approved the Rights Issue and Public Offer at the Extra-Ordinary General Meeting held on Friday August 11, 2023.

    Nneka Onyeali-Ikpe, Managing Director and Chief Executive Officer, Fidelity Bank Plc said at the Combined Offer signing ceremony that the proceeds will be applied towards investment in IT infrastructure, business and regional expansion, and investment in product distribution channels.

    Oladele Sotubo, Chief Executive Office, Stanbic IBTC Capital, who commended Fidelity Bank’s management team for their commitment towards executing the Combined Offer also lauded their efforts for being at the forefront of achieving the CBN’s revised minimum capital requirements for Nigerian commercial banks.

    Sotubo expressed confidence that the deal would encourage other corporates to tap into the equity capital markets to raise funding to meet their strategic business needs.

    The share price of Fidelity Banks, which closed May 31, 2019, at N1.68 per share, rose successively to N10.20 per share by the end of May 2024.

    The ASI had, during the period, rose from its opening index of 31,069.37 points to close weekend at 99,300.38 points. The NGX Banking Index rose from 361.57 points to 797.37 points.

    The NGX 30 Index, which opened the period at 1,286.68 points, closed the period at 3,676.44 points. The NGX Main Board Index appreciated from 1,267.54 points to close weekend at 4,634.31 points.

    David Adonri, Managing Director, HighCap Securities Limited said the price of any stock in the market is a correct reflection of the market value for the stock.

    Aruna Kebira, Managing Director, Globalview Capital Limited said that the market price of a stock represents the disposition of the investing public to the stock at a given period, noting that there should be consideration for both the market value and the book value or fundamentals of a stock.

    “It could be summarised that the market price of a stock is premised on the psychology of the market, the markets mood as well as market sentiments,” Kebira said.

    Sola Oni, Chief Executive Officer, Sofunix Investment and Communications said the stock market shows both the current and future prospects of shares.

    “Share price reflects the current value of a company but also reveals the future prospects”, Oni said, noting that investment analysts traditionally combine market price and book values to determine the possible outlook of a stock.

    For many independent investment research reports, Fidelity Bank was assigned BUY ticker, a recommendation to investors to consider the potential attractive returns of the bank.

    The research reports were based on the historical and current operational performances of the bank as well as the clear-sighted implementation of the bank’s growth plan. The reports also considered the quality of board and management and the general human capital and resources of the bank.

    For instance, the investment advisory reports included those of Afrinvest Group, FSDH Capital and CardinalStone among others.

    Analysts were unanimous that Fidelity Banks share price could double in the period ahead given professional assessment of top traditional performance parameters including the company’s operational reports, investors preference and projections.

    Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged customer commercial bank with over 8.3 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.

    Just recently, African Export-Import Bank (Afreximbank) disbursed $40-million Intra-African Investment Facility to Fidelity Bank Nigeria Plc to support the bank’s acquisition and recapitalisation of Union Bank UK as part of its international expansion programme. Provided in two tranches of $20 million each, the first tranche of the facility enabled Fidelity to part-refinance the acquisition of 100 percent equity stake in Union Bank UK, while the second tranche was used to support its recapitalisation via the injection of additional equity into the acquired bank, as approved by the United Kingdom’s regulator.

    With this acquisition, Fidelity Bank is able to birth a new pan-African financial institution capable of providing correspondent banking and offshore banking services to banks in Africa and servicing the banking needs of Africans in the diaspora.

    The average annual return of 101.43 per cent underlines that Fidelity Bank provides substantial return for investors, even where such investors had borrowed money at the ruling interest rate and the invested fund was adjusted for impact of inflation rate.

    Investors in Fidelity Bank Plc have earned more than 507 percent in capital gains over the past five years, ranking above all other major return benchmarks at the Nigerian stock market and the entire banking sector.

    Trading reports at the Nigerian stock market for the five-year period between May 31, 2019 and May 31, 2024 showed that Fidelity Bank outperformed all key indices at the stock market. Fidelity Banks share price rose by 507.14 percent over the period, representing average annual capital gain of 101.43 percent.

    These returns underscore Fidelity Banks immense value as a stock for all times, helping investors to hedge against inflation while preserving significant long-term value.

    With 507 percent capital gain in five years and average annual gain of more than 100 percent, the return analysis implies that investment in Fidelity Bank is more attractive than other class of assets, including fixed-income securities such as government and corporate bonds; real estate investment and mutual funds among others.

    The high divisible nature of shares investment and high free float of Fidelity Bank, which makes the bank’s shares easily available, underline it as a most attractive investment option for all cadres of investors- small, medium and high networth; retail and institutional investors.

    Comparative analysis showed that Fidelity Bank outperformed all other major market indices with the banks average annual return for the period twice the average return by the overall market and almost four times of average return in the banking sector.

    Nigeria’s inflation rate peaked at a high of 33.69 per cent in April 2024 while the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) recently increased the Monetary Policy Rate (MPR), otherwise known as benchmark interest rate, to 26.25 per cent.

  • Hospitality ‘Oscars’ for Alain Sebah and Dupe Olusola at Africa Hospitality Investment Forum (AHIF)

    Hospitality ‘Oscars’ for Alain Sebah and Dupe Olusola at Africa Hospitality Investment Forum (AHIF)

    …AHIF takes place at the Mövenpick Hotel, Windhoek, Namibia, 25th – 27th June 2024

    At the Africa Hospitality Investment Forum (AHIF) (www.AHIF.com), taking place in Namibia in June, Alain Sebah, President, Golden Tulip Afrique Francophone & East Africa (GTAF), and Dupe Olusola, Managing Director and CEO, Transcorp Hotels Plc, will both receive awards recognising their professional accomplishments. Alain will receive the Outstanding Contribution Award and Dupe the Leadership Award.

    Alain Sebah – Outstanding Contribution Award

    Alain founded GTAF a decade ago, since then he has opened 11 hotels and has 5 under construction. He has been responsible for growing the brand in both French and English-speaking Africa, focusing on management and franchise agreements. In doing so, he has overcome numerous challenges, including industry scepticism. He has demonstrated resilience and strategic vision; delivered exceptional guest experiences, advanced career opportunities for employees and won the confidence of investors.

    Dupe Olusola – Leadership Award

    Dupe became Managing Director and CEO of Transcorp Hotels Plc during the COVID-19 pandemic when occupancy fell to just 5%. She led the company back to profitability faster than most of the world’s hospitality companies, with the share price growing over 600% in 2023.

    Under her leadership, the company has extended its offer and won over 40 awards. She also won several personal awards, including CEO of the Year. Transcorp Hilton Abuja, historically an award-winning business hotel and the company’s flagship property, has introduced leisure offerings, finding the perfect blend of business and leisure. Doing so has elevated its status as the place to stay and to hold major events in Nigeria’s capital city. In November 2023, with banqueting enquiries exceeding capacity, Dupe set up marquees within the grounds of the hotel rather than turn away business.

    Dupe Olusola commented on receiving the Leadership Award: “I am deeply honoured to receive the Leadership Award at AHIF. This recognition is a testament to the incredible dedication and hard work of the entire Transcorp Hotels team. Together, we have navigated challenging times and emerged stronger, continually pushing the boundaries of excellence in hospitality. I am proud of what we have achieved and excited about the future as we continue to innovate, expand and deliver outstanding experiences for our guests.”

    Matthew Weihs, Founder of the Africa Hospitality Investment Forum (AHIF), said: “It will be an enormous pleasure to see two exceptionally impressive individuals receiving African hospitality industry ‘Oscars’ at AHIF. Alain is one of the great statesmen of the sector, who has achieved consistent success through a brilliant mix of charm, dynamism, flexibility and commercial nous. The operational excellence his team has achieved in Cotonou is fantastic, as was the deal he signed in Abidjan at the height of the pandemic.”

    “Dupe’s record is outstanding. She became the first female CEO of a N1 trillion company shortly after Transcorp ended the year as the best performing stock on the Nigerian Exchange. One has to admire her ability to inspire people and the innovative way she fought to retain guests when other hoteliers would simply have said they were fully booked.”

    Alain Sebah concluded: “I am deeply grateful to AHIF for this recognition. It is a testament to the hard work and dedication of many individuals. Together, we have built a legacy of quality and service, of which I am immensely proud; and this award motivates us to achieve even greater heights.”

    AHIF takes place at the Mövenpick Hotel, Windhoek, Namibia, 25th – 27th June 2024.

    The event is the most influential gathering of hospitality executives in Africa, connecting business leaders and fuelling investment in tourism projects, infrastructure, and hotel development across the continent.

  • Abbey Mortgage Bank Cleared of Insider Trading Allegations

    Abbey Mortgage Bank Cleared of Insider Trading Allegations

    Abbey Mortgage Bank Plc has been cleared of allegations regarding insider trading during a closed period, as initially stated in the Nigerian Exchange’s X-Compliance Report. After a review of the circumstances surrounding the case, the Nigerian Exchange Limited (NGX) has decided not to enforce any penalties against the bank.

    The initial report, dated May 10, had implied a breach of Rule 17:18, which governs the period of closure for trading activities by insiders who possess material, non-public information. Such periods are critical in maintaining market integrity and investor trust. However, upon closer examination and considering the explanations provided by Abbey Mortgage Bank, the NGX concluded that there was no substantial violation warranting a penalty.

    Instead of a penalty, the NGX has mandated that Abbey Mortgage Bank attend a compliance training session, which is intended to reinforce adherence to regulatory standards and further ensure the bank’s commitment to best practices in corporate governance. This training, costing One million, two hundred and thirty thousand, one hundred and eighty (1,230,180) naira, highlights the NGX’s dedication to education and compliance over punitive measures.

    Abbey Mortgage Bank, a leader in the Nigerian mortgage sector since its incorporation in August 1992, has continually demonstrated resilience and stability. With strategic growth initiatives, such as the addition of a significant investor in 2020, the bank has shown remarkable progress, including a 250% increase in customer deposits from N6 billion to N21 billion in 2021 and shareholders’ funds exceeding N8.5 billion.

    This positive resolution highlights the importance of due process and the NGX’s role in maintaining transparency while supporting the growth and integrity of listed companies. Abbey Mortgage Bank’s proactive response and subsequent exoneration reinforces its reputation as a trusted and compliant financial institution, poised for continued success in the mortgage banking sector.

  • FG Lists N4.214bn April Savings Bonds On NGX

    FG Lists N4.214bn April Savings Bonds On NGX

    The Federal Government has listed its April 2024 Savings Bonds worth N4.214 billion on the Nigerian Exchange Limited platform.

    This was disclosed in the market bulletin signed by the Head, Issuers Regulation Department of NGX, Godstime Iwenekhai.

    According to the bulletin, “Trading License Holders are hereby notified that the April 2024 Issue of the Federal Government of Nigeria (FGN) Savings Bonds was listed on Nigerian Exchange Limited (NGX) on May 13, 2024.”

    Details of the Bonds include FGS April 2026, 1.228 million units valued at N1.228 billion at a coupon rate of 17.046%, while FGS April 2027, 2.986 million units amounted to N2.986 billion at a coupon rate of 18.046%.

    According to the debt office, the bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.

    FGN Savings Bond is issued monthly in tenors of two and three years with quarterly payment of coupons (interest) at a rate predetermined and published by the DMO every month.

    The retail savings bond product was introduced by the Debt Management Office (DMO) on behalf of the Federal Government in 2017 to democratise its activities in the bond market by making it easily accessible to Nigerians to ensure continuous development of the domestic market and bridge infrastructure deficit which has been a constraint to economic growth.

  • Q1 2024: Nigerian Breweries Reports Strong Performance with an 84% Increase in Revenue

    Q1 2024: Nigerian Breweries Reports Strong Performance with an 84% Increase in Revenue

    Brewing giant, Nigerian Breweries Plc, has posted a revenue of N227 billion for its first quarter ended 31st March 2024, an increase of 84% versus the corresponding period in 2023. The unaudited results released to the Nigerian Exchange Limited (NGX) showed that results from operating activities grew by over 1000% in the period under review. The increase has been achieved amidst a challenging macroeconomic environment marked by rising inflation and FX volatility, amongst others. The result also benefited from overlaying a weak first quarter 2023 impacted by the Naira Redesign policy and ensuing cash crunch.

    The Managing Director/CEO, Mr Hans Essaadi, said the result is the result of deliberate actions taken as part of the company’s strategic recovery plan and a dedicated workforce demonstrating resilience amidst a challenging macroeconomic environment.

    Essaadi said that “Nigerian Breweries achieved a strong 84% growth in revenue, primarily propelled by product innovation, rigorous cost saving initiatives, and inflation-led pricing adjustments. We drove sales by intensifying our consumer engagement activities, enhancing the delivery of our route-to-consumer strategy, and harnessing the power of our brands and people.”

    “Despite the strong top-line growth, net loss for the period rose by 391% in comparison to the previous year, primarily because of the increased interest rates resulting from upward adjustments in monetary policy, and continued volatility in the foreign exchange market. Nevertheless, we have begun to see quick results with our business recovery plan which prioritizes efficient cost management practices and optimizing our operations for efficiency, the outcome being the growth recorded in our revenue and operating profit”, he added.

    Looking forward, Essaadi revealed that “irrespective of the continued challenging operating environment with high-level inflation and pressured consumer income spending, Nigerian Breweries maintains an unwavering belief in the positive long-term market fundamentals of Nigeria. We are committed to navigating the current challenges with the implementation of our business recovery plan. We remain wholly committed to having a positive impact on our host communities and our consumers, leveraging our strong supply chain footprint, excellent execution of our route-to-market strategy, and introducing compelling new additions to our rich portfolio to enhance consumer satisfaction while upholding our commitment to our employees.” 

    On his part, Legal Director and Company Secretary, Mr. Uaboi Agbebaku, on behalf of the Nigerian Breweries Board, assured that the “Board remains confident of our long-term strategy to deliver value to our shareholders”.

  • Fidelity Bank: Improved Share Price as Growth Indicator

    Fidelity Bank: Improved Share Price as Growth Indicator

    When the management of the Nigerian Exchange Limited (NGX) in July 2023 announced that it was reclassifying Fidelity Bank Plc from small-price stock to medium-price stock, financial analysts concluded that the road to attaining Tier1 status by the bank is closer than ever imagined.

    In full year 2022. Fidelity Bank briefly fell into the Tier 1 category and saw the highest gross earnings of N337.10 billion and profit before tax of N53.68 billion. The bank’s higher interest income relative to interest expense led to a net interest margin of 7.70 per cent, ahead of other similar banks.

    Regarding its financial position, the bank had the highest total assets at N3.99 trillion in 2022. The bank’s relatively low-risk asset exposure kept non-performing loans (NPLs) at 2.90 per cent, the second lowest in the Tier 2 category ahead of Wema Bank.

    Although the group has struggled with curtailing operating costs with CIR above 50 per cent, Fidelity earned the second lowest CIR among Tier 2 banks at 59.00 per cent, slightly behind FCMB at 53.90 per cent in FY 2022.

    In 9M 2023, Fidelity Bank, according to Proshare analysts will rise to full Tier 1 status in its next Tier 1 Banking Sector Report review based on Proshare’s Banking Strength Index (PBSI)) led second-tier banks in gross earnings, profitability, total assets, customer deposits, and loans and advances.
    However, its non-performing loan ratio (NPLR) rose to 3.54 per cent after Wema Bank’s 2.50 per cent, while its cost-to-income ratio (CIR) settled at 49.86 per cent, which was an improvement from the previous year’s ratio.

    Significantly, in its full-year 2023 results, the bank’s total assets as of December 31, 2023 has risen to N6.2 trillion.

    The bank closed 2023 as the fifth best banking stock on the floor of the NGX with a share price of N10.85 and a market capitalization of N347.3 billion, depicting an annual gain of 149.4 per cent, Fidelity Bank also showcased a commendable financial performance.
    Notably, it achieved a net income of N91.8 billion in the nine months ending September 2023, reflecting a substantial 162.46% year-on-year growth from the corresponding period in 2022.

    Furthermore, the bank registered an impressive return on equity of 28.48 per cent during the first nine months of 2023.

    The 2023 performance of the bank was similar to that of 2022 as it was one of the three banks that led the list of the best-performing banks on the NGX. The other banks are FCMB and FBN Holdings.

    The research pours into the performance of thirteen of Nigeria’s largest commercial banks analyzing improvement year on year over two quarters.

    The analysis revealed that the thirteen banks raked in a sum of N298.84 billion as post-tax profit between July and September 2022, representing an increase of 29.9 per cent compared to N228.54 billion recorded in the corresponding period of 2021.

    The commercial banks remained resilient despite economic headwinds, which saw the nation’s aggregate GDP growth slowed to 2.25 per cent in Q3 2022 from 3.54 per cent recorded in the previous quarter and 4.03 per cent in the corresponding period of 2021.

    Also, banks’ loans to customers grew by 5.5 per cent between June and September 2022 to stand at N23.76 trillion, representing a net new loan of N1.23 trillion in three months. However, this showed a slightly slower growth than the 6.81 per cent increase recorded in the comparable period of 2021.

    NGX reclassification

    The NGX said the reclassification became necessary because Fidelity Bank shares have been trading above the N5.00 mark since February 2023.
    According to the NGX, rule 15.29 of the Rulebook of the Exchange, 2015 (Dealing Members’ Rules) notes that equities priced above N5 per share for at least four of the most recent six months of trading, or new security listings priced above N5 per share at the time of listing on NGX are classified as medium price stock.

    “Fidelity Bank traded above the N5.00 mark on February 20, 2023 and has remained above the N5 mark up until close of business on 30 June 2023.
    “This indicates that Fidelity Bank has been trading above N5 for at least four months in the last six months. Therefore, it should be reclassified from small price stock to medium price stock,” it pointed out.

    The bank has continued to post commendable financial performance every quarter as it cements its position amongst tier-one banks in the country.
    In the half-year 2023 results and for the second year running, the bank emerged as the company with the highest earnings per share on the Nigerian Exchange Limited (NGX).

    According to a report, Fidelity Bank, Seplat Energy, Total Energies, Okomu Oil, Presco, Dangote Cement, MTN Nigeria, BUA Foods, First City Monument Bank (FCMB) and Geregu Power emerged as the companies with the highest earnings per share within that review period.
    Earnings per share (EPS) is a company’s net profit divided by the number of common shares it has outstanding.
    It also indicates how much money a company makes for each share of its stock and is a widely used metric for estimating corporate value.

    A higher EPS indicates greater value because investors will pay more for a company’s shares if they think the company has higher profits relative to its share price.

    Fidelity Bank recorded an earnings per share of N184 in the first half of 2023 from N79 in the first half of 2022.
    The share price of the bank as of Thursday, April 25, 2024, stood at N9.00 per share as the bank traded 12.642 million shares valued at N112.071 billion in 246 deals.

    Fidelity Bank’s share price movement has shown intense volatility in an upward direction over the past years. The stock price has risen from N2.52 on January 04, 2010, to N10.00 on March 15, 2023, generating a YTD return of 297 per cent.
    The bank’s market capitalization as of Thursday, April 25, 2024, stood at N288.11 billion. Average volume stood at 11.76 million, share outstanding was 32.01 billion while free float was 31.72 billion

    Stakeholders speak
    Analysts believe the bank’s share price underlines its earnings growth and financial performance as higher dividend yields and future earnings forecasts have triggered demand in the money lender’s shares.

    Over the last ten years, the bank’s share price has risen to a resistance (highest price) of N14.20 on March 05, 2024, and a support price (lowest price) of N0.76 on November 16, 2016.

    According to a Lagos-based stockbroker, ‘Fidelity Bank demonstrates the classical admonition to prospective investors of entering low and selling high. Over the last eight years, Fidelity’s stock price has risen by 44.19 per cent on a compound annual basis; very few stocks could prove a better inflation hedge”.

    Ambrose Omordion, Chief Research Officer at Investdata Consulting Limited, believes that this is the best time for Fidelity as the bank’s share price is doing well among its peers.

    He said, “Fidelity is doing well and its share price is one of the best among its peers. This is so because the bank has recorded impressive results in its 2023 financial year. In June 2023, the bank shares rose by 32 per cent making it the nation’s best-performing bank share as of half year (June 30).

    “I can only see a better bank now and in the future. The bank is a potential Tier 1 bank and the performance of the bank is a pointer to the fact that the bank will scale the recapitalisation hurdle of the Central Bank of Nigeria (CBN)”.

    Prince Anthony Omojola, National Coordinator, Independent Shareholders Association of Nigeria (ISAN), asserted that “Fidelity Bank is moving up in terms of performance. They have joined those paying interim dividends and they have also dipped their hand into big money tills for huge investment. They have borrowed big to be able to handle bigger contracts and be able to reap big. The reclassification is welcomed and I hope they will not disappoint us. If they can meet expectations, the benefit will be for Nigeria”.

    On his part, Sam Ndata, Doyen of Nigerian Stockbrokers and non-executive director at UIDC Securities Limited commented, “This is a good development. If a company performs well, it will surely be rewarded to earn investors’ confidence”.

    Mr Boniface Okezie, the National Coordinator, Progressive Shareholders Association of Nigeria, commented, “Fidelity Bank has paid its dues in the financial services sector. It has contributed immensely to the development of the small and medium enterprises (SME) sector yet pays dividends to the shareholders. Last year, it took the market by surprise by declaring a dividend of 50k per share which had not happened in previous years. The massive investment in ICT and effective branch network shows it is ready to serve the customers in a better way and make the shareholders happy.”

  • SIFAX Group Appoints Basil Agboarumi as Executive Director

    SIFAX Group Appoints Basil Agboarumi as Executive Director

    SIFAX Group, one of the leading business conglomerates in Nigeria with investment in Maritime, Aviation, Oil & Gas, Haulage & Logistics, Financial Services, and Hospitality, has appointed Basil Agboarumi as its new Executive Director, Corporate and Intergovernmental Affairs.

    Agboarumi recently completed his term as the Managing Director/CEO of the Skyway Aviation Handling Company Plc. (SAHCO Plc.), one of the subsidiaries of SIFAX Group.

    Agboarumi holds a National Diploma (OND) in Mass Communication from the Federal Polytechnic, Auchi and a Higher National Diploma (HND) in Mass Communication from the Federal Polytechnic, Oko, a Master in Communications (MSc) from the Lagos State University and a Certificate in Creative Design & Digital Communications from the School of Media & Communications of the Pan-Atlantic University, Lagos. He also holds a Management Certificate in Civil Aviation from Concordia University, Montreal, Canada.

    After the privatization and subsequent takeover of SAHCOL by SIFAX Group in 2009, Agboarumi was appointed the Head of Corporate Communications to spearhead the re-branding of the new company. He was subsequently appointed the company’s Managing Director in 2018. Under his leadership, SAHCO Plc was listed on the Nigeria Stock Exchange (now Nigerian Exchange Group) while many local and foreign airlines signed business deals with the company due to its excellent and cutting-edge services, including passenger handling, ramp handling, and cargo handling.

    Agboarumi has over 25 years of professional in public relations, reputation management, brand development, media relations, business development, and government relations.

    Speaking on the new appointment, Dr. Taiwo Afolabi, Chairman, SIFAX Group, said Agboarumi brings vast experience and records of achievements to his new role, adding that these qualities will help him succeed in the new role.He said: “He demonstrated the capacity and ability to navigate different terrains as a leader during his time as the Managing Director of SAHCO. The COVID-19 pandemic hit shortly after he took over the reins at SAHCO, but he was able to steer the ship of the company to profitability despite the uncertainties that characterised the global aviation business at the time. I am convinced the Group will benefit tremendously from his wealth of experience as he assumes this new role.”

  • Seplat Energy achieves ISO 26000 endorsement on social responsibility

    Seplat Energy achieves ISO 26000 endorsement on social responsibility

    Seplat Energy Plc, leading Nigerian independent energy company listed on both the Nigerian Exchange Limited (NGX) and the London Stock Exchange (LSE), has achieved the ISO 26000 endorsement, which is a major milestone that reinforces the Company’s commitment to social responsibility. 

    The Company’s ISO 26000 journey commenced in September 2021 and was concluded in 2023. The two-year journey culminated in the recognition of Seplat Energy’s efforts to operate in a socially responsible way, respecting society, the environment, and the communities in which it operates. 

    Commenting on this feat, the Chief Executive Officer, Seplat Energy Plc, Mr. Roger Brown, said: “We recognise that social responsibility is integral to our business strategy and essential for long-term success. This recognition has intensified our commitment to create value in the communities where we operate through high-impact corporate social initiatives.” 

    Mr. Brown commended all the teams and persons within and outside of Seplat Energy that had contributed to the realization of the ISO 26000 feat whilst assuring all stakeholders of the company’s commitment to sustainability.

    “Sustainability is at the heart of our business. The two-year journey to this certification has been well worth it and it shows our unwavering commitment to sustainability. For us at Seplat Energy, we will continue to set higher standards and continue to work towards their realization.

    The Unveiling of the ISO 26000 Social Responsibility Guidance Management Self-Declaration by Seplat Energy was done in conjunction with International Network for Corporate Social Responsibility (INCSR), an international team of Corporate Sustainability and Responsibility (CS&R) Consultants and Corporate Human Rights Advocates working to promote best practices in sub-Saharan Africa.

    Commenting on the achievement by Seplat Energy, the President/Lead Consultant, INCSR, Mr. Eustace Onuegbu, said: “The ISO 26000 certification is a detailed and meticulous process. It is a strategic management system that cuts across all business functions including business relationships. It therefore reflects the true picture of the company and the hard work put in to achieve it. Seplat Energy is only the second company to achieve this certification.”

    In the same vein, the Chief Operating Officer, Seplat Energy, Mr. Samson Ezugworie, reiterated that: “This milestone is a landmark achievement and launches Seplat Energy into the global league of social responsibility. The achievement is a testament to the way we relate with staff in terms of labour practices; it reflects the way we comply with regulations, environmental stewardship and our dealing with stakeholders. Our goal is to sustain the milestone.”

    The Director, External Affairs and Social Performance, Seplat Energy, Mrs. Chioma Afe, said: “Social responsibility is part of out strategy; so, getting endorsed further verifies and validates that we truly live our strategy, givenall the work that the company has put in over the years.”

    Also commenting, the Managing Director, Seplat West Ltd, Mr. Ayodele Olatunde, explained that: “ISO 26000 certification is a major milestone that serves as an assurance of Seplat Energy’s commitment to sustainable corporate social investment, accountability, ethical behaviour, compliance, respect for stakeholders, our people, governance and labour practices. Seplat will continue to build on this achievement, engage stakeholders and deliver increased value”.

    Seplat Energy leadership is highly committed to implementing an effective organisational governance system, and therefore has recognised the principles of social responsibility in line with Clause 4 of ISO 26000 in the decision-making, organisational culture, operations, and all business relationships.

    These principles are accountability, transparency, ethical behaviour, respect for stakeholder interests, respect for the rule of law, respect for international norms of behaviour and respect for human rights. Importantly, Seplat Energy has a due diligence approach for addressing the issues of social responsibility.

    ISO 26000 SR Guidance Standard requires organisations to integrate social responsibility and sustainability core subjects in all operations and business relationships as well as their sphere of influence. The Company, therefore, recognises ISO 26000 Social Responsibility Guidance Management as a reference document on a holistic approach based on the seven core subjects in Clause 6 of the Guidance Standard – Organizational Governance, Human Rights, Labour Practices, the Environment, Fair Operating Practices, Consumer Issues, and Community Involvement and Development.

  • NGX Makes Capital Market Fun with Latest StockTown Comic Book on Financial Literacy

    NGX Makes Capital Market Fun with Latest StockTown Comic Book on Financial Literacy

    Nigerian Exchange Limited (NGX) is pleased to announce the release of the latest edition of the NGX StockTown, a unique comic book designed to promote financial literacy among the younger generation of Nigerians.

    NGX StockTown is the realization of a long-held passionate idea by the Exchange to empower individuals across all levels to make informed financial decisions and improve their lives both now and in the future. StockTown leverages the power of illustrated characters and storytelling to impart valuable lessons about the significance of savings and investment. In its inaugural issue, readers are introduced to Mora Johnson and her middle-class family, navigating financial challenges that spark Mora’s curiosity about investment and financial independence.

    Proudly supported by Zenith Bank, Cadbury Nigeria Plc, Norrenberger Securities Ltd, and APT Securities Ltd, the latest edition delves into Mora and her friends’ journey in establishing a stock trading club in their school. NGX Stocktown is available in both print and digital formats, and interested readers can download the magazine from the NGX website.

    Clifford Akpolo, Head, Marketing and Corporate Communications, noted that the continuous publication of NGX StockTown underscores the Exchange’s strong commitment to promoting financial literacy in Nigeria. “NGX is dedicated to engaging its diverse network of investors through communication tools that resonate with their age, technological inclinations, and interests. By merging financial wisdom with the captivating world of comics, we aim to make personal finance not only understandable but also engaging and relatable for young Nigerians.”

    As part of its annual initiatives, the Exchange implements programs targeted at children and youths, fostering the development of a financially savvy generation. Notably, NGX commemorates Global Money Week by hosting workshops for youths and teenagers. Consistently championing financial education, the Exchange organizes X-Tours, a financial literacy workshop that brings together secondary school students, undergraduates, and young professionals. The workshop culminates in a tour of the trading floor and meetings with Stockbrokers, contributing significantly to deepening financial inclusion in Nigeria.

  • Seplat Energy is New Telegraph’s Outstanding Energy Company of the Year

    Seplat Energy is New Telegraph’s Outstanding Energy Company of the Year

    Seplat Energy Plc, leading Nigerian independent energy company listed on both the Nigerian Exchange Limited (NGX) and the London Stock Exchange (LSE), has been named as the Outstanding Energy Company for 2023 by one of Nigeria’s authoritative newspaper brands, New Telegraph Publishing Company Limited, publishers of the New Telegraph Newspapers.

    The Company emerged as the winner at the award ceremony held in Lagos in the weekend. The highly competitive and prestigious annual award aims to reward excellence and outstanding individuals and businesses in Nigeria that have distinguished themselves by their remarkable contributions to the country’s development in the year under review.

    Seplat Energy was recognised for its performance in 2023 in the areas of business and operational excellence, whilst leading Nigeria’s energy transition with accessible, affordable and reliable energy that drives social and economic prosperity for all its stakeholders.

    The Managing Director and Editor-in-Chief, New Telegraph Newspapers, Ayodele Aminu, whilst commending Seplat Energy for its giant strides in Nigeria’s energy space, said the newspaper is using the award to reward individuals and businesses in Nigeria that have distinguished themselves by their remarkable contributions to the development of Nigeria in both the public and private sectors.

    According to Aminu, the New Telegraph awards look to distinguish the best in every sector across the nation.

    In her remarks, the Director, External Affairs and Social Performance at Seplat Energy Plc, Chioma Afe, thanked the board, management and staff of the New Telegraph for the hard work, dedication and professionalism displayed over the years in building a reputable brand and promoting the ethos of journalism.

    Afe, who was represented by Stanley Opara, Manager Corporate Communications at Seplat Energy Plc, expressed the company’s appreciation for the recognition and assured all its stakeholders of Seplat Energy’s unwavering commitment to strong corporate governance, operational excellence and continuous value creation and retention.

    “For Seplat Energy, this is a call for more work and increased results, as we remain charged to consistently deliver value to all our stakeholders around the world.”

    Other companies and governments that were honoured at the awards were: Zenith Bank Plc, UBA Plc, Unity Bank Plc, Transcorp Plc, Airtel Plc, FBN Holdings Plc, Niger Delta Power Holding Company, Lagos, Enugu, Bauchi, Bayelsa, Gombe States, amongst others.