Economy
Investor Negligence Blamed for N10b Capital Market Fraud
Some capital market stakeholders have cited negligence and greed on the part of investors in the share scam involving Partnership Securities Limited (PSL).
The Chief Executive Officer of PSL, Mr Victor Ogiemwonyi is currently in the custody of Economic and Financial Crime Commission (EFCC) and facing criminal and civil charges for misappropriating money of some of his clients. Particularly, the broker, a former Council member of the NSE, was said to have sold shares of former Chief Executive Officer of Ecobank Transnational Incorporated (ETI), Mr Arnold Ekpe, worth N1.24 billion and misappropriated the proceeds.
He was also said to have introduced a product called Partnership Securities Deposit Account (PSDA), which involved investors keeping their securities with the company for a return annually. While the investors are battling to get back their money, market operators said they wondered how an investor would receive 80 trade alerts on the sale of his shares, he did not get the proceeds of the shares and yet waited for three months before raising the alarm.
“Why did an investor receive 80 alerts that his shares are being sold and refused to act – report to Nigerian Stock Exchange (NSE), Securities and Exchange Commission (SEC) or EFCC. This is either pure negligence or there is something that we do not know,” a market operator said.
Meanwhile, market regulators and operators have expressed optimism that the risk based supervision(RBS) framework and the framework to identify systemic non-bank financial institutions (NBFI) recently introduced by the SEC will help to check the activities of operators who use holding company structure to perpetuate infractions in the market.
While the SEC and NSE register and licensed capital market operators (CMO) to play in the market, some of the CMOs float subsidiaries that operate outside the purview of SEC and NSE. In the process of operating outside the supervision of the regulators, some of those CMOs have committed market infractions. BGL Group and Partnership Securities Limited are typical examples. Both organisations used subsidiaries not regulated by SEC and NSE to market financial products and services that led to losses by investors.
This development has given a lot of concerns to investors who said it was discouraging for them to patronise the capital market through CMOs and do not get enough protection.
However, officials of SEC and NSE, who spoke to THISDAY on the condition of anonymity, said the introduction of RBS and framework for NBFI would address that challenge and give investors adequate protection going forward.
SEC had adopting RBS will not only ensures that regulated entities are well positioned to accommodate the risks that they bear, but more importantly absorb risks that may crystallise from adverse events.
The commission said the systemically important CMOs would be subjected to higher capital requirements that are commensurate to their size, scale of activity and inherent risk. Besides, it shall on a quarterly basis review the capital adequacy status of the identified CMOs with a view to ensuring that the capital requirements are within the regulated level.
“Identified CMOs shall be required to enrol for Legal Entity Identifiers (LEI) system at the Central Securities Clearing System (CSCS). LEIs are unique identification associated with a single legal entity, which allows for consistent identification of parties to financial transactions, facilitating a consistent and integrated view of exposures. LEIs are essential for effective risk management for financial companies, especially for assessing their connections and exposures to other firms and regulatory oversight. The LEI can help the financial industry, regulators, and policymakers trace exposures and connections across the financial system,” it said.
By Adedapo Adesanya
Central Securities Clearing System (CSCS) Plc kept the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.04 per cent on Friday, July 16.
The securities depository company added N2.50 to its share price to settle at N95.14 per unit from the preceding session’s N92.64 per unit.
However, FrieslandCampina Wamco Nigeria Plc slid during the session by N5.85 to N141.81 per share from N147.66 per share.
But when the bourse closed for the day, the market capitalisation increased by N1.08 billion to N2.593 trillion from N2.592 trillion, while the NASD Security Index (NSI) appreciated by 1.80 points to 4,320.67 points from 4,318.87 points.
During the session, the value of securities slid by 38.9 per cent to N63.5 million from N104.1 million, the volume of securities went down by 34.5 per cent to 1.2 million units from 4.8 million units, and the number of deals declined by 15.4 per cent to 33 deals from 39 deals.
Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 75.4 million units traded for N5.3 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
