Economy
NAFDAC Partners GATF for Better Global Trade Transactions
By Adedapo Adesanya
The National Agency for Food and Drug Administration and Control (NAFDAC) has commenced a partnership with the Global Alliance for Trade Facilitation (GATF) to put together strategies for export and import trade in Nigeria.
This was disclosed by the drug and food regulatory body through its resident media consultant, Mr Olusayo Akintola, stating that the procedures were to ensure ease of doing business in Nigeria.
The statement noted that the partnership was also aimed at achieving standardisation, harmonisation of documents and simplified trade formalities for importers and exporters.
It said that NAFDAC Director-General, Mrs Mojisola Adeyeye, reached the agreement at a virtual meeting with GATF Nigeria top officials led by its Project Lead, Mr Bernard Traynor.
The statement added that the partnership project is being powered by GATF, an organisation hosted by the Centre for International Private Enterprise, International Chambers of Commerce, and the World Economic Forum.
“The project in Nigeria is being implemented by the German Technical Cooperation popularly known as GIZ. The alliance is supported by the governments of the US, Canada, Germany, Denmark and the government of Australia through their respective agencies,” the agency noted.
The statement quoted Mrs Adeyeye, who was represented at the meeting by Dr Abimbola Adegboye, Head of Trade and International Relations at the agency, as listing measures that NAFDAC had already put in place for both import and export trade.
Mrs Adeyeye reiterated that NAFDAC had already put in place measures to ensure that there is a seamless and more robust operational procedure with both export and import at the borders.
She said part of the measures was to achieve cooperation among government agencies at the borders, adding that NAFDAC’s focus now was to ensure smooth trade facilitation and regulation.
According to her, operations of regulators should not pose a hindrance to trade transactions but facilitate them.
She said that the agency was making sure that there are not so many interferences between the users of the agency facilities and the agency.
“So, we try as much as possible to remove both human interferences under the guise of consultants, because more or less they do not facilitate trade, they tend to distort it.
“Trade should be on basis of safety and quality, that is the only way trade could be sustained; If quality is not put into your product, It gives the country a bad name, they blacklist the company involved.
“The consumers are the losers because they do not have value for money and their health is compromised,” she stressed.
She stated that these are the issues that the global alliance would be addressing, adding that what would make all these visible and possible was to ensure that operations at the borders are seamless.
According to her, if a producer has perishable items that are to be exported or that are to be allowed into the country and they are delayed unnecessarily or held based on premium conditions, such products could go bad, and the integrity of such product would be compromised.
She said that anything that would make trade operations very easy both for inflow and outflow, and would make the whole process of regulation friendly and not cumbersome for importers and exporters, is what the agency aimed for.
The statement also quoted the Project Manager of GATF, Nigeria, Mr David Okeku, explaining that being an alliance, his organisation had critical private sector partners, and series of projects currently being implemented in Kenya, Madagascar, Malawi, Zambia, Senegal, Uganda and Latin America, Asia and Middle East countries.
“How we work in the alliance is that we partner with multinationals, local businesses because we believe strongly that they will bring in their expertise and also best practices; and also bring in supply-chain companies.
“We use them as our ambassadors globally and in-country. Local businesses also contribute in form of expertise and resources in kind towards the alliance,” the statement added.
By Adedapo Adesanya
Dangote Petroleum Refinery is preparing to raise about $5 billion through an initial public offering (IPO) expected to conclude in October, in what could become the largest stock market listing in Africa’s history.
The company has already submitted an initial application to the Securities and Exchange Commission (SEC), with approval expected in the coming weeks. Once authorised, the refinery is expected to release its prospectus in September ahead of the public offer.
The primary listing will be on the Nigerian Exchange (NGX) Limited, although investors across Africa are expected to participate through structured investment instruments rather than a dual listing.
The proceeds will be used to expand the capacity of the 700,000-barrels-per-day refinery in Lagos and possibly support plans to replicate the project in Kenya as Dangote seeks to deepen Africa’s energy independence.
The proposed IPO comes after the refinery benefited from increased demand for refined products during the recent Iran conflict, supplying jet fuel across Africa and into Western Europe as global shortages disrupted markets.
As per Reuters, stock exchanges in South Africa, Kenya, Egypt, Ghana and Rwanda have held discussions with advisers to the transaction as interest in the offering continues to build across the continent.
Kenya alone could account for as much as $500 million of the targeted capital raise, driven largely by demand from institutional investors, including pension funds, the publication reported.
While the company is targeting a $5 billion raise, the final amount will depend on the outcome of the SEC’s review. If achieved, the offering would represent more than four per cent of the Nigerian Exchange’s current market capitalisation.
The IPO follows a $2.5 billion private placement completed last month, in which a six per cent stake in the refinery was sold, implying a valuation of about $40 billion.
That valuation, however, would place the refinery well above several listed global refining companies. Turkey’s Tupras, which operates a similar combined refining capacity across four facilities, has a market value of roughly $12 billion, while US-listed HF Sinclair, with a comparable processing capacity, is valued at around $16 billion.
Although the NGX generally requires companies on its main board to maintain a minimum free float of 20 per cent, there have been exceptions. Dangote Cement, for instance, currently has a free float of just over 12 per cent.
The publication also reported that investors outside Nigeria are likely to gain exposure through instruments such as global depositary receipts or exchange-traded products linked to the Nigerian-listed shares, rather than through a cross-listing on other African exchanges.
The founder of the 700,000-barrels-per-day capacity plant, Mr Aliko Dangote, said in April that the refinery aims to increase production capacity to 1.4 million barrels per day.
Mr Dangote is also pursuing plans to build another refinery in Lamu along Kenya’s coast in partnership with other East African governments, although it remains unclear whether part of the IPO proceeds will be allocated to that project valued at an estimated $17 billion.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rallied by 0.89 per cent on Tuesday, August 4 amid renewed buying interest in unlisted stocks.
During the session, the market capitalisation added N24.07 billion to end at N2.739 trillion compared with Tuesday’s N2.715 trillion, while the NASD Security Index (NSI) gained 40.11 points to quote at 4,563.96 points compared with the preceding day’s 4,523.85 points.
The NASD OTC Exchange ended the trading session with two price losers and three gainers, led by Central Securities Clearing System (CSCS) Plc, which chalked up N7.80 to close at N119.80 per unit versus the previous session’s N112.00 per unit. Afriland Properties Plc increased its value by N1.27 to N23.95 per share from N22.68 per share, and Nitrox Industrial Gases Plc expanded by N1.15 to N21.15 per unit from N20.00 per unit.
On the flip side, FrieslandCampina Wamco Nigeria Plc slid by N8.64 to sell at N144.00 per share compared with the previous day’s N152.64 per share, and 11 Plc dipped by 1 Kobo to end at N225.00 per unit, in contrast to Monday’s closing price of N225.01 per unit.
Tuesday’s trading data showed that the volume of securities rose by 9.0 per cent to 1.6 million units from 1.5 million units, and the number of deals climbed by 6.5 per cent to 33 deals from 31 deals, while the value of securities dropped by 26.9 per cent to N47.6 million from N65.2 million.
At the close of trades, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 76.9 million units exchanged for N5.5 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date with 3.4 billion units transacted 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
A 0.38 per cent loss was suffered by Nigerian stocks on Tuesday on the back of continued selling pressure from investors embarking on profit-taking.
Data from the Nigerian Exchange (NGX) Limited showed that the contraction was influenced by the 1.78 per cent decline recorded by the insurance sector, the 0.24 per cent slip printed by the consumer goods index, and the 0.09 per cent drop posted by the energy space, offsetting the 0.75 per cent growth achieved by the banking sector and the 0.21 per cent growth recorded by the industrial goods segment.
Investor sentiment was weak during the trading day, as the bourse ended with 13 price gainers and 40 price losers, representing a negative market breadth index.
LivingTrust Mortgage depreciated by 10.00 per cent to N3.42, Multiverse also shed 10.00 per cent to N22.95, McNichols dropped 9.92 per cent to N5.45, Thomas Wyatt dipped by 9.87 per cent to N3.56, and Eterna lost 8.57 per cent to trade at N33.00.
On the flip side, AVA Capital improved by 9.94 per cent to N9.95, Livestock Feeds expanded by 9.71 per cent to N8.65, Neimeth increased by 8.43 per cent to N9.00, AIICO gained 3.47 per cent to settle at N4.18, and Oando grew by 3.30 per cent to N36.00.
A total of 1.6 billion equities valued at N28.7 billion exchanged hands in 54,160 deals yesterday versus the 923.0 million equities worth N37.9 billion traded in 72,544 deals on Monday, indicating a 73.35 per cent surge in the trading volume, a 24.27 per cent decline in the trading value, and a 25.34 per cent slip in the number of deals.
The busiest stock was Japaul, which transacted 904.4 million units for N2.7 billion. Sterling Holdings sold 54.0 million units valued at N431.9 million, FCMB exchanged 49.5 million units worth N545.9 million, Chams traded 44.9 million units for N199.2 million, and Neimeth sold 42.4 million units worth N327.8 million.
Business Post reports that the All-Share Index (ASI) gave up 927.70 points to 244,802.83 points from 245,730.53 points, and the market capitalisation receded by N599 billion to N158.016 trillion from N158.615 trillion.
