Economy
SEC Records 96% Compliance Level of Prudential Returns in 2022
By Aduragbemi Omiyale
The Securities and Exchange Commission (SEC) has stated that it has continued to employ its compliance tool to ensure that only fit and proper capital market operators practice in the market.
This, the commission said, has resulted in an improved level of compliance with the filing of prudential returns, rising to 96 per cent in 2022 compared with 81 per cent in 2021.
The Director-General of the agency, Mr Lamido Yuguda, described this in an interview as a welcome development, given the organisation’s quest to pursue a capital market that is based on the principles of increased transparency, efficiency and global competitiveness.
He described the year 2022 as another eventful year in which the commission continued its implementation of sound initiatives that are expected to bring about the much-desired market development that would deepen not only the market but also ensure the continued protection of investors.
“SEC released guidelines on the implementation of Sections 60-63 of the Investments and Securities Act 2007.
“The NCMI organized training for CEOs, CFOs and other officers of public companies to facilitate their compliance. The Commission also provided filing options for Audited (Annual) and Fourth Quarter Financial Statements.
“The commission has conducted the Risk Based Supervision (RBS) examination on 20 capital market subsidiaries of five financial holding companies aimed at supporting the entire financial system stability.
“To further protect investors and boost confidence in the market, the commission has commenced implementation of 100 per cent custody requirement on all Collective Investment Schemes (CIS).
“Also, after a thorough review of the status of privately managed funds, SEC mandated that Rule 95 should also apply to all Discretionary/Non-Discretionary Portfolios and Products to ensure the protection of investors’ funds in the fund management space,” Mr Yuguda stated.
The SEC DG disclosed that a comprehensive on-site inspection exercise was successfully carried out on the 95 registered fund managers to ensure that both the public and private funds registered by the commission are being operated in line with the relevant rules and regulations.
On non-interest, Mr Yuguda stated that the commission, working jointly with the Federal Inland Revenue Service (FIRS), the Non-Interest Finance Committee of the CMC and other stakeholders, has developed a taxation regulation on non-interest finance.
The non-interest finance (taxation) regulation, he stated, has been approved by the Minister of Finance, Budget and National Planning and has already been gazetted. This is a positive development that will spur investments in non-interest capital market products.
He disclosed that the Nigerian capital market witnessed significant momentum, with the main equity bourse (NGX) recording a N6.1 trillion increase in the equities capitalisation, from N21.82 trillion on December 31, 2021, to N27.96 trillion as of December 30, 2022, representing a 28 per cent increase, outshining most of the global securities markets.
The NGX All-Share Index also recorded a 19.98 per cent year-on-year growth from 42,716.44 points on December 31, 2021, to 51,251.06 points as of December 30, 2022.
“On the debt side of the capital market, the S&P FMDQ Sovereign Bond Index closed at 592.84 points on December 14, 2022, indicating a 4.8 per cent increase from 565.67 points in December 2021.
“The market witnessed this despite relatively weak corporate earnings, investor apathy and slow economic growth.
“However, we expect to see enhanced growth in 2023 driven by initiatives that target improvement in the business environment, increased liquidity, and a possible increase in sovereign bond issuances to finance the budget deficit,” he remarked.
By Modupe Gbadeyanka
The federal government, the 36 states of the federation and the 774 local government areas have received N1.727 trillion from the Federal Accounts Allocation Committee (FAAC) for December 2024.
The funds were disbursed to the three tiers of government from the revenue generated by the nation in November 2024.
At the December meeting of FAAC held in Abuja, it was stated that the amount distributed comprised distributable statutory revenue of N455.354 billion, distributable Value Added Tax (VAT) revenue of N585.700 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.046 billion and Exchange Difference revenue of N671.392 billion.
According to a statement signed on Friday by the Director of Press and Public Relations for FAAC, Mr Bawa Mokwa, the money generated last month was about N3.143 trillion, with N103.307 billion used for cost of collection and N1.312 trillion for transfers, interventions and refunds.
It was disclosed that gross statutory revenue of N1.827 trillion was received compared with the N1.336 trillion recorded a month earlier.
The statement said gross revenue of N628.972 billion was available from VAT versus N668.291 billion in the preceding month.
The organisation stated that last month, oil and gas royalty and CET levies recorded significant increases, while excise duty, VAT, import duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and EMTL decreased considerably.
As for the sharing, FAAC disclosed that from the N1.727 trillion, the central government got N581.856 billion, the states received N549.792 billion, the councils took N402.553 billion, while the benefiting states got N193.291 billion as 13 per cent derivation revenue.
From the N585.700 billion VAT earnings, the national government got N87.855 billion, the states received N292.850 billion and the local councils were given N204.995 billion.
Also, from the N455.354 billion distributable statutory revenue, the federal government was given N175.690 billion, the states got N89.113 billion, the local governments had N68.702 billion, and the benefiting states received N121.849 billion as 13 per cent derivation revenue.
In addition, from the N15.046 billion EMTL revenue, FAAC shared N2.257 billion to the federal government, disbursed N7.523 billion to the states and transferred N5.266 billion to the local councils.
Further, from the N671.392 billion Exchange Difference earnings, it gave central government N316.054 billion, the states N160.306 billion, the local government areas N123.590 billion, and the oil-producing states N71.442 billion as 13 per cent derivation revenue.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.
On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.
Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.
Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.
At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.
In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.
By Adedapo Adesanya
The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.
The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.
The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.
Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.
In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.
At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.
Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).
Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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