Economy
Nigerian Capital Market Needs Access to Trading Liquidity—Stockbrokers
By Adedapo Adesanya
One of the essential needs of the Nigerian capital market, especially the stock trading at this moment, is access to trading liquidity.
This was the submission of the new president of the Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe, at his investiture on Tuesday in Lagos.
According to the leader of the stockbrokers’ institute, “It was liquidity that enabled our stock market to grow in quantum leaps during the historic bull market run of 2005 – 2007.
”And that, in turn, galvanised the primary market where several companies and governments at various levels were able to raise massive capital for expansion and development projects.”
He, therefore, called for the suspension of plans to increase the minimum share capital requirement for Capital Market Operators (CMOs).
”May I at this juncture make a strong plea that any plans to increase the minimum share capital requirement for Capital Market Operators be suspended for now,” the CIS president said.
Mr Amolegbe made the plea on Tuesday at his investiture on Tuesday in Lagos where he unveiled policies aimed at taking the institute to the next level.
While unveiling his plans as the 11th president of the institute, Mr Amolegbe promised to work in harmony with members of the council to take CIS to the next level in all aspects.
“I will work in harmony with distinguished council members to ensure that we take CIS to the next level in all aspects.
“These include conducting examinations, policy advocacy, membership relationships, training and professional development,” Mr Amolegbe stated.
“We will continue to work in close partnership and cooperation with the Securities and Exchange Commission (SEC), Association of Securities Dealing Houses of Nigeria (ASHON) and all the registered securities trading platforms in the country,” he added.
The new president said that his administration would work hard to return the market to that level, albeit with a more effective, stronger and coordinated regulatory mechanism.
“As we have already witnessed, the Nigerian Capital Market has proved its resilience and world-class structures by carrying on its major day-to-day operational activities unhindered since the pandemic started.
“It is an easily verifiable fact that many investors have received dividend income and earned capital gain even during the lockdown period.
“My team will ensure that CIS queues in maximally on the new world defined by high technology and enlarged business horizons,” he said.
On the COVID-19 pandemic, Mr Amolegbe said it had worsened an already bad operating environment for Stockbrokers and Securities Dealing Firms, which was why the stockbrokers should redouble efforts in the area of advocacy.
“They should redouble efforts to get government and key players in the economy to accept the fact that the capital market holds the key to the long-term economic sustenance of Nigeria as a country,” the new president said.
In a goodwill message to the new president, Governor Abdulrahman Abdulrazak of Kwara State assured Mr Amolegbe of his administration’s preparedness to partner with the institute as professionals in the areas of capital mobilisation for economic growth and development.
Also, Governor Nasir El Rufai of Kaduna State, represented by the commissioner for Business, Innovation and Technology, Mr Idris Nyam, said the state government would work with the capital market through the institute to address youth unemployment.
By Dipo Olowookere
The first trading session of the new week on the floor of the Nigerian Exchange (NGX) Limited ended on a bullish note on Monday after a marginal 0.02 per cent growth.
This was influenced by bargain-hunting activities in the financial and industrial goods ecosystems.
According to data obtained from Customs Street, the insurance space grew by 2.12 per cent, the industrial goods sector appreciated by 0.17 per cent and the banking space expanded by 0.12 per cent.
However, due to profit-taking, the consumer goods index went down yesterday by 0.46 per cent and the energy counter decreased by 0.11 per cent.
When the bourse ended for the session, the bulls were in charge after dealing with the bears, leaving the All-Share Index (ASI) higher by 16.68 points to 102,370.36 points from 102,353.68 points and the market capitalisation increased by N10 billion to N62.861 trillion from N62.851 trillion.
Investor sentiment was strong during the session after the stock exchange finished with 32 price gainers and 26 price losers, indicating a positive market breadth index.
Caverton gained 10.00 per cent to close at N2.42, Coronation Insurance improved by 9.91 per cent to N2.44, SCOA Nigeria expanded by 9.68 per cent to N2.72, UPDC jumped by 9.52 per cent to N1.84, and Universal Insurance also rose by 9.52 per cent to 69 Kobo.
On the flip side, Eunisell declined by 9.99 per cent to N14.06, John Holt lost 9.63 per cent to trade at N9.20, Secure Electronic Technology shed 8.99 per cent to quote at 81 Kobo, Honeywell Flour dropped 7.58 per cent to settle at N9.15, and PZ Cussons weakened by 6.00 per cent to N23.50.
Yesterday, a total of 1.3 billion shares worth N17.7 billion exchanged hands in 13,891 deals compared with the 327.8 million shares valued at N11.8 billion traded in 11,905 deals last Friday, implying an increase in the trading volume, value, and number of deals by 304.48 per cent, 50.00 per cent, and 16.68 per cent, respectively.
The busiest stock was Wema Bank with a turnover of 980.0 million units worth N9.8 billion, Universal Insurance sold 31.3 million units for N21.2 million, AIICO Insurance traded 22.2 million units valued at N36.9 million, Oando transacted 19.8 million units for N1.5 billion, and Zenith Bank exchanged 19.7 million units worth N926.0 million.
By Adedapo Adesanya
Nigeria’s maiden shipment under the African Continental Free Trade Area (AfCFTA) has successfully arrived at the Mombasa Port in Kenya.
According to the Nigeria AfCFTA Coordination Office in a statement, the development marks a historic moment for Africa’s trade landscape.
The Senior Trade Expert at the Nigeria AfCFTA Coordination Office, Mr Olusegun Olutayo, said in line with its mandate under the leadership of the National Coordinator, Mr Olusegun Awolowo, the office had coordinated the landmark event.
He said the achievement marked a significant milestone for Nigeria in realising the vision of increased intra-African trade and economic integration championed by the agreement in line with the decision of the AU Assembly at the 31st Ordinary Session of the Assembly.
“In times of escalating geopolitical tension and looming geo-economic fragmentation, AfCFTA presents a perfect opportunity for Africa to leverage trade as a strategic instrument for enhanced market access among state parties.
“This is a historic moment, a realisation of the vision of our continent’s founding fathers and mothers.”
He also said the first consignment which was a synthetic filaments product of Nigeria’s Lucky Fibres Limited (Lush), a subsidiary of the Tolaram Group, was exported under AfCFTA preferential terms.
Mr Olutayo lauded the bold economic reforms of President Bola Tinubu, emphasising their catalytic role in enabling the country’s active participation in AfCFTA, fostering continental economic integration and industrialisation goals.
He also commended the seamless cooperation and commitment from Kenyan authorities, which exemplifies the true spirit of AfCFTA.
He acknowledged the pivotal leadership role of the AfCFTA Secretariat in fostering the success and emphasised the collaborative efforts of the Kenya AfCFTA Implementation Committee and the Kenya Revenue Authority (Customs).
According to him, the shipment, exported under AfCFTA preferential trade terms, underscores partnership, shared vision, the agreement’s potential to transform Africa’s economic landscape and pave the way for a new era of trade-driven prosperity.
The AfCFTA seeks to create a single market across Africa by reducing barriers to trade, investment, and labour.
The agreement’s goal is to increase socioeconomic development, reduce poverty, and make Africa more competitive globally.
On March 21, 2018, the AfCFTA agreement was adopted and opened for signature in Kigali, Rwanda. The agreement entered into force on May 30, 2019 and officially commenced on January 2021
Former President Muhammadu Buhari established the National Action Committee on AfCFTA (NAC) in December 2019.
By Adedapo Adesanya
The Nigerian Securities and Exchange Commission (SEC) has fixed January 31 as deadline for all Capital Market Operators (CMOs) to renew their operating licence.
In a circular to the operators on Sunday, the apex regulatory agency in the country’s capital market said the annual registration renewal would last between January 1 and 31, 2025.
SEC said the annual registration renewal enforcement for CMOs was aimed at ensuring that only “fit and proper” persons operate in the capital market, warning that CMOs without valid registration will be penalised and may be excluded from capital market activities.
”This is to inform all CMOs and the general public that the annual renewal of registration of CMOs for the year 2025 will commence from January 01.
“All CMOs applying for renewal are required to include their 2025 annual subscription receipt from their respective trade groups as part of their application.
“In line with the commission’s Rules & Regulations, all CMOs are to complete the process of renewal of registration for 2025 on or before January 31 via registration renewal portal at www.eportal.sec.gov.ng,” it said.
The commission added that CMOs desiring to make enquiries or get support to complete the process should contact [email protected].
The regulator said it had in 2021 re-introduced periodic registration renewal by CMOs to create a reliable active operators’ data bank in the country’s capital market.
It said the renewal arrangement aimed at updating operators information on capital market for official use by local and foreign investors, other regulatory agencies and the public.
The agency added that the renewals would drastically reduce incidences of unethical practices by CMOs which may affect investors’ confidence and impact the capital market negatively, noting that the exercise will strengthen supervision and monitoring of CMOs by the commission.
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