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Economy

NASD Investors Count N9.1bn Loss in One Week

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NASD Investors' Portfolios

By Adedapo Adesanya

The 46th week of trading at the NASD Over-the-Counter (OTC) Securities Exchange saw investors lose N9.1 billion as trading activity declined in the five-day trading week.

According to the weekly NASD market review and analysis by Business Post, the market capitalisation dropped to N616.04 billion from N625.55 billion in week 45.

Also, the NASD Security Index (NSI) fell by 11.51 points to close at 745.65 points in contrast to 757.16 points.

Two stocks were responsible for the decline printed by the alternative exchange in Nigeria led by UBN Property Plc, which depreciated by 9.1 per cent to sell for 90 kobo per share compared with the preceding week’s 99 kobo per share.

The second price loser was FrieslandCampina Wamco Nigeria Plc as its price declined by 7.3 per cent to trade at N120.52 per unit in contrast to the previous week’s rate of N130.00 per unit.

In the week, only one price gainer was recorded and this was Niger Delta Exploration and Production (NDEP) Plc and it gained 0.7 per cent to sell for N228.99 per share in contrast to N227.34 per share of the earlier week.

On the activity chart, the trading value depleted by 34.4 per cent to N16.9 million from N25.8 billion, the trading volume dropped 26.9 per cent to 782,454 units from 1.1 million units, while the number of deals went down by 23.4 per cent to 36 deals from 47 deals carried out in the preceding week.

Last week, UBN Property Plc was the most traded stock by volume with 600,000 units, FrieslandCampina WAMCO Nigeria Plc closed with 71,794 units, CSCS Plc traded 71,440 units, NDEP Plc recorded 28,360 units, Food Concepts Plc exchanged 10,500 units.

On the flip side, FrieslandCampina WAMCO Nigeria was the most traded stock by value with a turnover of N8.6 million, followed by NDEP Plc with N6.5 million, CSCS Plc with N1.3 million, UBN Property Plc with a turnover of N540,000 and VFD Group Plc with a turnover of N9,450.

In the year so far, NASD investors have transacted a total of 12.8 billion units worth N29.9 billion in 4797 deals.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Economy

NEM Insurance Seeks Regulatory Approval for Share Reconstruction

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NEM Insurance

By Dipo Olowookere

The board of NEM Insurance Plc is seeking regulatory approval for its proposed share reconstruction, a notice from the Nigerian Exchange (NGX) Plc has confirmed.

Ms Lilian Dako, who signed the disclosure on behalf of the Head of Listings Regulation Department at the NGX, said the underwriting firm filed its application through its stockbroker, Apel Asset Limited.

NEM Insurance intends to redenominate the nominal value of its stocks from 50 kobo to N1 and then turn every two shares of 50 kobo into one share of N1.00 each.

At the moment, the total authorised shares of the company stand at 10,400,000,000 units of 50 kobo each but this will change to 5,200,000,000 units of N1.00 after the exercise.

However, the authorized share capital will remain at N5.2 billion both before and after the share reconstruction, according to the statement.

“Following the resolutions passed at the Annual General Meeting (AGM) of NEM Insurance Plc on June 24, 2021, trading license holders are hereby notified that Nigerian Exchange Limited has received an application from Apel Asset Limited for a proposed share reconstruction of NEM Insurance Plc.

“The share reconstruction involves redenomination of the nominal value of the company’s shares from N0.50 to N1.00, resulting in the consolidation of every 2 shares of N.50 each held in NEM Insurance Plc into one share of N1.00 each.

Analysis of the Company?s share capital, pre and post share reconstruction, is provided in the table below:

Details Pre Share Reconstruction                                      Post Share Reconstruction

Authorized share capital (N)    5,200,000,000                   5,200,000,000

Issued Share Capital (N)          5,016,477,989                    5,016,477,989

Nominal Value per share (N)   0.50                                   1.00

Total Authorized (Units)          10,400,000,000                  5,200,000,000

Total Issued Issues (Units)       10,032,955,535                  5,016,477,989

“Further information regarding the share reconstruction will be communicated in due course,” the notice from the exchange today stated.

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Economy

OPEC Extends Compensation for Nigeria, Others to June 2022

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OPEC Crude

By Adedapo Adesanya

The Organisation of the Petroleum Exporting Countries (OPEC) has extended the compensation period for defaulting countries in the ongoing oil cuts until June 2022.

This was contained in a statement by the group’s Secretariat, which noted that the extension was granted following requests by some of the underperforming countries.

Nigeria is one of the defaulters and the Vienna-based cartel had previously extended the deadline to submit their compensation plans latest by December 17.

The group reiterated the “critical” importance of adhering to full conformity and to the compensation mechanism.

For some of the countries involved in the Declaration of Cooperation, DoC had defaulted at trimming their cut quotas at some point in the agreement.

Reaffirming the decision of the 10th OPEC and non-OPEC Ministerial Meeting, ONOMM held on April 12, 2020, and July 18, 2021, the overall monthly production adjustment plan was adjusted by 400,000 barrels per day for the month of January 2022.

The group reaffirmed the continued commitment of participating countries in the DoC to ensure a stable and balanced oil market.

The biggest concerns were whether the emergence of a new variant of the coronavirus might torpedo the budding global economic recovery, and the restiveness of the United States and key Asian customers, including China, over high oil prices.

The 24th OPEC and non-OPEC Ministerial Meeting will be held on January 4, 2022.

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Economy

FarmTime Gets $50,000 to Boost Organic Fertilizer Production

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FarmTime Organic Fertilizer Production

By Dipo Olowookere

An agric-startup based in Tanzania, FarmTime Company Limited, has become the latest beneficiary of a new revenue-linked matching fund designed to incentivize investors to back younger entrepreneurs.

The firm, which was established in 2017 to recycle and repurpose plant and animal waste to produce organic fertilizers, delivering consistent and traceable nutrients at affordable prices, has secured a $50,000 funding support to expand its operations.

FarmTime, a new entrant to the organic fertilizer market in Tanzania, obtained the fresh capital in a round led by Umsizi Fund, which triggered a guaranteed match from the Young Entrepreneurs Fund (YEF).

YEF was launched in 2019 and provides matching investments of up to $50,000 to qualifying entrepreneurs. To date, over $250,000 has been invested across Africa with a growing pipeline of opportunities.

The scheme was designed to incentivise investments into very young entrepreneurs in Africa. It is a “guaranteed follow” fund that will match investments into ventures led by graduates of African Leadership Academy (ALA) programs, including The Anzisha Prize.

Rather than take equity positions, the fund has very intentionally chosen an innovative debt model with variable repayments linked to company revenues.

The founder of the latest beneficiary, FarmTime, Mr Jubilate Lema, disclosed that the new funds would be used to develop solutions to food security that balance human prosperity and the environment at large.

“I hope more funds take the approach of Umsizi and YEF with a revenue-linked debt instrument,” says Lema, “It was easy to understand, doesn’t load our cap table, and forced us to think about cash flow as well as growth.”

Josh Adler, Executive Director of The Anzisha Prize, which manages the fund on behalf of ALA, while commenting, stated that, “YEF is part of a growing move toward more structured exits from investors with a patient capital mandate.

“As a leadership development institution, ALA is able to draw in new forms of support for exceptional young leaders like Jubilate through the fund without having to build investment capabilities internally.”

As for Ed Brakeman from the Umsizi Fund, he said, “This one of the more exciting investments for us in some time with a revenue-linked loan in partnership with YEF.

“We’re eager to support FarmTime’s growth and are confident that we as investors will see returns while ensuring support for the business through the challenging period of product launch and revenue ramp-up.”

Since its inception five years ago, FarmTime has invested in research and product development, licensing and setting up a factory. It has already processed approximately 9,000 kilograms of coconut husks, 2,600 kilograms of fish waste, and 76 kilograms of seaweed, amongst other inputs.

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