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National Assembly Canvasses Stronger Capital Market Regulations

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capital market N10b fraud

By Aduragbemi Omiyale

The National Assembly (NASS) has pushed for stronger capital market regulations in order to attract a wide array of investments under a secured and transparent environment.

According to the Chairman of the House Committee on Capital Markets and Institutions, Mr Babangida Ibrahim, efforts must be made to further strengthen the current regulatory framework in the capital market as the space plays a vital role in the growth and development of the economy.

Speaking during a stakeholders’ meeting on the Investments and Securities Bill held in Lagos on Monday, the lawmaker said, “Our presence at this meeting today is to review the current developments in the Nigerian capital market and also dissect the content of the Investments and Securities Bill, 2021 and make appropriate contributions towards strengthening and enhancing the regulatory and supervisory framework of the Securities and Exchange Commission (SEC) as the umpire of the capital markets.”

“My distinguished colleagues and management of SEC, with our determined commitment for the passage of the bill which has already passed the second reading, I believe at the end of this retreat, a clearer focus would be charted to ensure the success of the passage of the bill,” he added.

Mr Ibrahim expressed the hope that contributions will be free-flowing, frank, inspirational and provocative and would strengthen the operational framework of the capital market.

“We as stakeholders must offer our valued ideas and bring in our expertise and professionalism to this piece of legislation. We should note that for this bill to pass through the legislative activities successfully in the National Assembly, it must be holistic, comprehensive and have global flesh in the international investments and securities.

“Therefore, I urge the management of the commission and the entire stakeholders gathered here to bring out our best towards this course,” he added.

He also assured stakeholders of the National Assembly’s support in any area of legislation necessary to actualize the vision of the SEC to make the investment and securities businesses in Nigeria better.

In his remarks, the Director-General of SEC, Mr Lamido Yuguda, expressed the need for legislation that would address the current realities and prepare the Nigerian capital market for the prospective changes that are likely to come in the near future.

He said the significance of the capital markets cannot be overemphasised as governments need the capital market to work with it to deliver the goods and services that nations need.

“I hereby wish to register my profound appreciation for the support from the two committees of the National Assembly to us in our various interactions over the last one and half years.

“This has helped the leadership of the commission in doing things differently and I can say confidently that we are in a better state than we were two years ago. And with this kind of support we are going to get the capital market of our dreams,” he stated.

Also speaking, the Chief Executive Officer, Nigerian Exchange (NGX) Limited, Mr Temi Popoola, emphasised that most of the developmental challenges the country presently faces could be solved through the capital market.

He stated, “The capital market stimulates economic growth, mobilises savings, creates wealth, contributes to infrastructure development, reduces scarcity of foreign currency, aids financial inclusion, and promotes transparency and good governance.

“It is, therefore, crucial that the market becomes more innovative in product development to attract a more diversified array of market players both in the listing and trading segments. Undoubtedly, if we are able to deepen our market and make it stronger, there will be inflows and our nation will grow and become healthier.”

In a goodwill message, Chairman Senate Committee on Capital Markets, Mr Ibikunle Amosun said that a lot of changes have happened in the final stock market hence the need for Nigeria to move with the tide.

Represented by Senator Kashim Shettima, he said, “It is interesting to note that the last time the Act was enacted was in 2007. There are lots of changes in the global stock market and we need to move with the tide.

“There is, therefore, the need for a review of the ISA to confirm with current realities. This is a good forum for us to cross-pollinate our ideas and come up with robust solutions to the challenges.”

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Economy

Hyde Energy Advocates Ways to Reduce Cost of LPG

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Domestic LPG

By Adedapo Adesanya

Nigeria’s leading energy trading company, Hyde Energy, has proffered strong recommendations for making Liquefied Petroleum Gas (LPG) affordable and available in Nigeria.

This was discussed at the just-concluded 2nd West Africa LPG Expo & NLPGA Summit 2022 held in Lagos themed Energizing the Future: LPG as a Sustainable Fuel in African Economies as part of efforts to address the sector’s need for significant investments in infrastructure.

The conference, which has continued to gather momentum in Nigeria, is a platform for industry players to engage both indigenous and international stakeholders to attain insight into the LPG market and network with more than 3,000 delegates across the value chain.

The first day of the two-day conference featured a panel discussion where the Chief Executive of Hyde Energy, Mr Oladimeji Edwards, encouraged more collaboration amongst relevant stakeholders in the industry to develop necessary measures that can improve infrastructural development in the sector to reduce the cost of LPG and increase supply.

“To reduce the cost of LPG, it is very important to build infrastructure to a captive market, to take it from truck to skid, to dispensing unit, all the way down to the cylinders, and ultimately at some point, the next generation will reticulate as part of standard code for construction at which point in time, we would have had ample supply of LPG distribution across the country,” he said.

He further revealed that for infrastructural development to come into place, there is a need for all hands to be on deck and show the will to make it happen.

Mr Edwards stated that Nigeria has tremendous gas deposits but there is an inadequate infrastructure around gas resources.

“To reduce imports, adequate investment is required. Gas suppliers are importing LPG, paying in US Dollars, and due to inflation and devaluation this affects retail prices, but with good infrastructure, I assure you that we will have an enabling environment for investment to thrive and everyone will be happy,” he advocated.

Mr Edwards commended the effort of the NLPGA to bring together industry stakeholders to share ideas on contentious topics and share strategies to help Nigeria’s LPG market unlock its incredible potential saying, “this is a brilliant platform for relevant stakeholders in the industry. It is a great event which brings in international and indigenous experts to exchange ideas, opinions, trends and outlook for the future.”

Nigeria is one of the fastest-growing LPG markets in the world with more than 20 per cent average growth per annum for the past 10 years. In 2020, Nigeria recorded a national LPG consumption of 89.91 thousand MT (PPPRA, 2020), with a positive variance of 7.9 per cent above the targeted estimated figure.

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Economy

NASD OTC Securities Exchange Opens Week 0.81% Lower

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unlisted securities exchange

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange opened the week in the negative territory following a 0.81 per cent drop on Monday, June 27.

At the session, the bourse, which admits unlisted securities, recorded a poor outcome following losses reported by three companies — FrieslandCampina WAMCO Nigeria Plc, Central Securities Clearing System (CSCS) Plc, and Food Concepts Plc.

FrieslandCampina WAMCO Nigeria Plc saw its equity drop N2.96 or 3.09 per cent to N98.76 per unit from N95.80 per unit, CSCS Plc lost 42 Kobo or 2.84 per cent to close the day at N14.38 per share as against N14.80 per share of the preceding session, while Food Concepts Plc went down by 5 Kobo or 5.00 per cent to 95 Kobo per unit from N1.00 per unit.

As a result, the NASD Unlisted Securities Index (NSI) dropped 6.21 points to settle at 762.06 points versus last Friday’s 768.27 points as the market capitalisation went south by N8.18 billion to N1.003 trillion from N1.011 trillion.

At the market yesterday, there was a jump in the units of securities exchanged by investors to 647,785 units from 323,519 units, implying a 100.5 per cent increase.

The value of securities traded amounted to N5.6 million, 37.6 per cent lower than the N8.9 million achieved at the previous trading day, while the number of trades depreciated by 27.27 per cent to eight deals from 11 deals.

AG Mortgage Bank Plc finished the trading session as the busiest stock by volume on a year-to-date basis with the sale of 2.3 billion units worth N1.2 billion, CSCS Plc also retained the second spot with the sale of 674.3 million units valued at N14.1 billion, while Food Concepts Plc was in third place for trading 146.5 million units valued at N127.2 million.

When the coin is flipped to the other side, CSCS Plc maintained its position as the most active stock by value on a year-to-date basis with a turnover of 674.3 million units valued at N14.1 billion, VFD Group Plc was in second place with 10.9 million units worth N3.2 billion, while FrieslandCampina WAMCO Nigeria Plc retained the third place with the sale of 9.7 million units valued at N1.2 billion.

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Economy

Naira Now N617/$ at Peer-to-Peer, N605/$1 at Parallel Market

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Nigerian Naira

By Adedapo Adesanya

The Naira appreciated by N1 or 0.16 per cent against the United States Dollar at the Peer-to-Peer (P2P) window of the foreign exchange (FX) market on Monday to close at N624/$1 compared with last Friday’s N618/$1.

At the parallel market, according to data harvested by Business Post from the various traders of forex on the streets of Lagos, the Nigerian currency was exchanged against its American counterpart at N605/$1.

At the interbank market, the local currency appreciated against the Pound Sterling by 20 kobo to trade at N509.82/£1 versus the preceding session’s N510.02/£1 but against the Euro, it lost N1.89 to sell for N439.49/€1 compared with last session’s value of N437.60/€1.

Also, at the Investors and Exporters (I&E) segment, which is the official market, the Naira recorded a 0.21 per cent or 88 kobo loss against the American Dollar as it was sold at N421/$1 in contrast to last Friday’s N420.12/$1.

The domestic currency was weakened despite a $10.02 million or 6.1 per cent slide in the turnover for the trading day as forex worth $152.96 million exchanged hands compared with the $162.98 million recorded in the preceding session.

Meanwhile, the cryptocurrency market saw the value of TerraClassicUSD (USTC) rising by 33.0 per cent yesterday to $0.0191 as other digital coins monitored by this newspaper struggled for life.

Dogecoin (DOGE) depreciated by 7.2 per cent to trade at $0.0695, Solana (SOL) recorded a 6.4 per cent slide to sell at $37.38, Ripple (XRP) went down by 6.0 per cent to trade at $0.3429, while Litecoin (LTC) followed with a 5.9 per cent depreciation to quote at $54.41.

Further, Cardano (ADA) slumped by 3.8 per cent to settle at $0.4798, Ethereum (ETH) suffered a 3.6 per cent loss to trade at $1,174.74, Bitcoin (BTC) recorded a 2.3 per cent retreat to sell at $20,642.92, Binance Coin (BNB) declined by 1.7 per cent to finish at $232.0, while the US Dollar Tether (USDT) moderated by 0.05 per cent to sell for $0.999.

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