Economy
NSE Launches Corporate Governance Index to Help Investors
By Dipo Olowookere
The Nigerian Stock Exchange (NSE) on Thursday launched a Corporate Governance Index (CGI) to assist investors make decisions concerning which stock to put their money on.
Business Post gathered that the Index will track the performance of the 35 Corporate Governance Rating System (CGRS) rated companies using their market capitalization, free float and corporate governance rating scores.
The Index will be reviewed on a bi-annual basis at which point other companies that have become CGRS rated in the interim may be added to the Index or companies that have had their ratings suspended or withdrawn may be removed.
It is expected to be an important tool for investors keen on investing in well governed companies as well as corporates eager to distinguish themselves on the ground of governance.
The CGRS was launched on November 3, 2014 after a successful pilot phase involving a number of companies listed on the NSE some of which are now listed on the Premium Board.
It was designed to rate companies that are listed on the NSE based on their corporate governance and anti-corruption culture.
The process comprises three segments: an independently verified, self-assessment by the company; a certification of director awareness of their fiduciary duties; and, a corporate integrity assessment where feedback on actual company behaviour is sought from internal and external stakeholders.
Combinations of the 3 segments with attendant weighted scores are collated and companies with a score of 70 percent and above accorded the CGRS certification celebrating the degree to which they have evolved the quality of their corporate governance.
Commenting on the development, the chief executive of the NSE, Mr Oscar Onyema, explained that, “The launch of the CG Index is an important milestone to strengthening listed companies by tracking their corporate governance practices.
“This index will increase transparency in our market and provide investors additional data points upon which to make sound decisions.
“I congratulate the companies that have successfully completed the process and I expect that they will be more positively looked at whilst trying to raise and access capital within or outside of our jurisdiction.”
Also yesterday, the NSE and the Convention on Business Integrity (CBi) held a certification ceremony for 35 companies and 437 directors that made it over the 70 percent threshold for the CGRS process.
The firms were awarded the CGRS certification while the directors were awarded certificates for success in the Fiduciary Awareness Certification Test (FACT), which is a key component of the CGRS.
Nigeria’s Vice President, Mr Yemi Osinbajo, who was represented by Mr Chiedu Osakwe, the Nigeria Chief Trade Negotiator/Director General Office of Trade Negotiation delivered, congratulated the companies and the individuals for the feat.
Also speaking at the ceremony, Co-Founder and Chief Executive Officer of CBi, Mr Soji Apampa, described the development as “a triumph for collective action in the fight against corruption and unethical practices.”
“I congratulate the companies and directors being honoured today and I urge them not to relent in their efforts to sustain the high level of corporate governance that has brought them thus far.
“Today’s celebration is not a destination but a continuous process that should be consistently maintained and further improved upon.
“I encourage other listed companies still on this evolutionary process to keep at it and conclude the process during this new review period which is now open,” Mr Apampa said further.
By Aduragbemi Omiyale
The chief executive of the Nigerian Exchange (NGX) Regulation Limited, Mr Femi Shobanjo, has made a strong case for corporate reporting, submitting that it remains critical to enhancing market integrity and boosting investor confidence.
He gave this view at the 3rd edition of the Corporate Reporting Awards organised by his organisation and the Institute of Chartered Accountants of Nigeria (ICAN).
The event recognised listed companies on the local stock exchange for excellence in financial reporting, corporate governance, and sustainability disclosures for the 2024 financial year.
The awards, which cover companies on the NGX 30 Index, assessed performance across three pillars: Financial Reporting (35 per cent), Corporate Governance (30 per cent), and Sustainability Reporting (35 per cent).
Organisers said the 2024 assessment was conducted under strict confidentiality and objectivity, with outcomes based strictly on merit. The exercise builds on earlier editions covering the 2022 and 2023 financial years and continues to serve as a benchmark for corporate disclosure standards in the Nigerian capital market.
Mr Shobanjo highlighted NGX RegCo’s continued adoption of global reporting frameworks, including the International Financial Reporting Standards (IFRS), the Nigerian Code of Corporate Governance, and the IFRS Sustainability Disclosure Standards (IFRS S1 and S2).
According to him, the growing emphasis on environmental, social, and governance (ESG) disclosures reflects an important shift in market expectations, as sustainability considerations are increasingly becoming central to corporate strategy and long-term value creation.
“Strong corporate reporting is fundamental to market integrity and investor confidence. Beyond financial performance, there is now a clear expectation for companies to disclose how environmental, social, and governance considerations are embedded in their strategy.
“Long-term corporate success is increasingly linked to the integration of sustainability into core business decisions,” he said.
He added that the “Most Improved Company” category was introduced to encourage continuous improvement in reporting quality among listed firms.”
On his part, the president of ICAN, Mr Haruna Nma Yahaya, said corporate reporting has evolved significantly beyond compliance, becoming a strategic instrument for communicating purpose, resilience, and direction.
He noted that organisations are now expected not only to report performance but also to demonstrate how they are responding to change and creating sustainable value.
“Corporate reporting has evolved beyond compliance to become a strategic tool that communicates purpose, resilience, and direction.
“In today’s environment, organisations are expected not only to report performance, but also to demonstrate how they are adapting to change and creating sustainable value. Transparency remains central to building trust, strengthening investor confidence, and supporting market stability,” he said.
International Breweries Plc was named Most Improved Company (Overall), while First HoldCo Plc won the Sustainability Reporting Award. Zenith Bank Plc received the Corporate Governance Award, and MTN Nigeria Communications Plc clinched the Financial Reporting Award.
In the top overall category, Access Holdings Plc won Silver, Airtel Africa Plc took Gold, while Seplat Energy Plc emerged Platinum winner.
By Adedapo Adesanya
Crude oil climbed about 3 per cent on Tuesday after Iran said it had yet to decide whether to attend peace talks with the United States.
With one day left before the ceasefire runs out in the Iran war, US President Donald Trump said he hoped to reach a deal to end the war. However, he said he did not want to extend the ceasefire, adding that the US military was “raring to go” if negotiations were not successful.
This development raised the price of Brent futures by $3 or 3.1 per cent to $98.48 a barrel, and lifted the US West Texas Intermediate (WTI) futures by $2.52 or 2.8 per cent to $92.13 per barrel.
Crude oil prices have spent most of March-April seesawing up and down, reacting to Iran’s closure of the Strait of Hormuz and President Trump’s Truth Social posts.
The lack of progress in US-Iran talks and their continuous postponement are keeping the oil market on edge, with the American President’s latest comments about no extension sending another wave of anxiety across market watchers.
Shipping traffic through the Strait of Hormuz, which normally handles about 20 per cent of global oil and liquefied natural gas supplies, remained broadly halted on Tuesday with only three ships passing the waterway in the past 24 hours. Over 1 billion barrels of crude have been disrupted due to the blockade.
Meanwhile, the Israeli military said Hezbollah fired rockets at Israeli troops in southern Lebanon, accusing the Iran-backed group of violating a ceasefire ahead of US-mediated talks between the government of Israel and Lebanon this week.
The European Union (EU) said it will provide guidance to airlines on how to handle issues such as airport slots, passenger rights and public service obligations in the event of jet fuel shortages because of the Iran war.
Countries continued to feel the effects of the war. In Germany, the biggest economy in Europe, investor morale declined to its lowest level in more than three years in April, while in the US, retail sales increased more than expected in March as the war in Iran boosted gasoline prices.
Ukrainian President Volodymyr Zelenskiy said the Druzhba oil pipeline, which pumps Russian oil to Europe, is ready to resume operations, signalling that Ukraine now expects an over $106 billion aid package to be unblocked.
The American Petroleum Institute (API) estimated that crude oil inventories in the US fell by 4.4 million barrels in the week ending April 17. In the week prior, US crude oil inventories rose by 6.10 million barrels. Official data from the Energy Information Administration (EIA) will be released later on Wednesday.
By Dipo Olowookere
The local stock exchange recorded a marginal 0.06 per cent surge on Tuesday as the bulls and the bears engaged in a fierce battle for control of the bourse.
Business Post reports that the Nigerian Exchange (NGX) Limited experienced a mix of profit-taking and bargain-hunting, with two of the five key sectors ending in green.
According to data from Customs Street, the banking counter lost 1.30 per cent, the consumer goods sector decreased by 0.39 per cent, and the energy index tumbled by 0.09 per cent.
However, the industrial goods and the insurance indices appreciated by 1.64 per cent and 0.19 per cent, respectively, as a result of buying pressure.
Consequently, the All-Share Index (ASI) went up by 135.97 points to 218,249.81 points from 218,113.84 points, and the market capitalisation soared by N87 billion to N140.523 trillion from N140.436 trillion.
The market breadth index for the session was negative, like the preceding session, with 26 price gainers and 45 price losers, showing bearish investor sentiment.
Again, NASCON led the advancers’ group after it chalked up another 10.00 per cent to close at N171.60. Union Dicon increased by 9.92 per cent to N19.95, Lafarge Africa gained 9.64 per cent to trade at N273.00, Trans-Nationwide Express appreciated by 8.27 per cent to N7.20, and UAC Nigeria rose by 7.84 per cent to N110.00.
On the other side, Legend Internet depreciated by 9.92 per cent to N5.63, Abbey Mortgage Bank shed 9.59 per cent to quote at N6.60, Stanbic IBTC weakened by 8.96 per cent to N154.50, Access Holdings dropped 8.83 per cent to close at N29.95, and Veritas Kapital crashed by 7.50 per cent to N1.85.
On top of the activity chart yesterday was Access Holdings with 110.7 million shares sold for N3.6 billion, FCMB transacted 57.7 million equities valued at N751.5 million, Fidelity Bank exchanged 44.8 million stocks worth N1.0 billion, Zenith Bank traded 44.2 million equities for N5.5 billion, and UBA transacted 43.6 million shares valued at N2.2 billion.
At the close of trades, 842.5 million stocks worth N44.9 billion exchanged hands in 61,617 deals versus the 984.0 million stocks valued at N50.8 billion executed in 76,410 deals on Monday, indicating a shortfall in the trading volume, value, and number of deals by 14.38 per cent, 11.61 per cent, and 19.36 per cent, respectively.
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