Economy
Rules Governing Sukuk Listing Take Effect After SEC Approval
By Dipo Olowookere
The Nigerian Stock Exchange (NSE) last Wednesday disclosed that the rules governing the listing of Sukuk and similar securities have been approved by the Securities and Exchange Commission (SEC).
A notice released by the stock exchange to the investing public revealed that the rules were approved by SEC on March 17, 2016 and would take effect from Monday, July 23, 2018.
Business Post reports that the draft rules were considered by the Rules and Adjudication Committee of Council (RAC) on October 21, 2014, and approved for exposure to stakeholders for comments from October 29 to November 12, 2014.
Thereafter, the RAC considered the draft rules and stakeholders’ comments at its meeting of February 17, 2015, and approved the draft rules for submission to the National Council of the Exchange (Council).
It was further gathered that at its meeting of February 26, 2015, the council approved the draft rules for submission to SEC on March 5, 2015.
According to the approved listing rules obtained by Business Post, SEC said an issuer of sukuk must submit its listing application through a stockbroker after first appointing a Shari’ah adviser recognized or registered with the apex capital market regulator.
Such adviser, SEC explained will carry out primary responsibilities like ensuring that the applicable Shari’ah principles and any relevant resolutions and rulings endorsed are complied with; applying ijtihad (reasoning) to ensure all aspects relating to Sukuk issuance are in compliance with Shari’ah principles amongst others.
It was further stated that the NSE has discretion to admit and list the Sukuk on its platform and may even approve or reject the applications for listing, as it deems fit.
Furthermore, the NSE “may approve applications for listing and quotation of Sukuk or debt securities unconditionally or subject to such conditions, as it deems fit.”
SEC also disclosed in the rules that an Issuer shall, at least one month before the maturity date, announce the maturity date of each issuance of Sukuk or debt securities.
It stated that, “An issuer, which is a foreign corporation, shall announce to the NSE concurrently all information required to be publicly disclosed to its domestic regulatory authorities and other stock exchanges, if applicable.”
The management of SEC also said “an issuer shall announce its half year unaudited or audited financial statements on a consolidated basis within 30 days of the quarter or half year of the issuer’s financial year, and the statements shall state whether there is any abnormal circumstance that has affected or will affect the business and financial position of the issuer.”
“An issuer and its guarantor shall announce to the NSE their respective annual audited financial statements, together with the auditors’ and directors’ reports within three months of their respective financial years.
“In addition to the circumstances set out in the Listings Rules of the NSE, the exchange may at any time de-list an issuer from the Official List in any of the following circumstances: (a) upon the occurrence of any of the events which the Trustee has declared would render the Sukuk or debt securities to be immediately due and repayable pursuant to the Trust Deed; (b) upon the maturity or expiration of the Sukuk or debt securities; (c) upon full redemption of the Sukuk or debt securities; or (d) any other circumstances which in the opinion of the NSE, do not warrant the continued listing of the Sukuk or debt securities.”
According to the rules, Sukuk refers to investment certificates or notes of equal value which evidences undivided interest/ownership of tangible assets, usufructs (the right to enjoy a thing, property of which is invested in another) and services or investment in the assets of particular projects or special investment activity using Shari’ah principles and concepts approved by SEC.
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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