Economy
NSE Moves to Address Issues Witnessed at MTN Nigeria’s Listing
By Dipo Olowookere
In May 2019, leading telecommunications firm in Africa, MTN Nigeria Communications Plc, finally listed its shares on the Nigerian Stock Exchange (NSE) after years of dragging.
The exercise was done through listing by introduction. However, it was not without controversies as the company was accused of deliberately hoarding the stocks to create an artificial scarcity at the market.
For some days, retail investors were unable to get hold of the ‘priced’ equities because holders of the stocks when it was listed at N90 per share refused to let go. This caused the share price to rise at the market.
Another issue that arose from the exercise was the allegation that the management of the exchange waived the listing rules for MTN Nigeria when it could not meet the requirements to be on the premium board.
At a point, the Economic and Financial Crimes Commission (EFCC) was reportedly called in to investigate the listing of MTN Nigeria stocks on the exchange.
In the long run, things were sorted out and the shares of MTN Nigeria because readily available at the stock market for retail investors to buy.
But in order not to witness a similar issue in the future, especially when a company lists its shares via introduction, the management of the exchange has taken a step to amend the listing requirements under the Rulebook of the Exchange also known as the issuers’ rules.
“To address concerns about availability of shares for trading on the day a company is listed by introduction, the exchange has decided to introduce a rule that will require issuers to make shares available for trading on the listing day,” a notice from the NSE on Thursday said.
“To this end, the proposed amendments to the listing requirements seek to provide a clearer description of listing by introduction, and impose an obligation on prospective issuers of equity securities-excluding public offerings, to make a reasonable volume of shares available for trading on the day of listing,” the exchange added in the circular signed by its Executive Director in charge of Regulation, Ms Tinuade Awe.
It noted that, “Another concern is the need for sufficient information about the issuer’s financial position on the day of listing, to give prospective investors a basis for trading in the issuer’s shares.
“Consequently, additional amendments are being proposed to ensure that Issuers provide their Information Memorandum or SEC-approved Prospectus, as well as their latest financial statements to the market by publishing same on their websites at least 48 hours before the listing, in order to enable investors to make informed investment decisions regarding the issuer.”
The NSE said it wants inputs from the investing community on the subject matter and would be “grateful to receive your comments not later than the close of business on Friday, May29, 2020.
“Your comments should be set forth in a WORD document attached to an electronic mail to Mr Oluwatoyin Adenugba, Head, Rules and Interpretation at the exchange at oadenugba@nse.com.ng.”
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Wednesday, April 16, as the market capitalisation remained unchanged at N1.915 trillion as well as the NASD Unlisted Security Index (NSI) at 3,271.02 points.
At the trading session, there was no price gainer or decliner.
The bourse’s data showed a decrease of 95.0 per cent in the volume of securities transacted to 36,757 units from the 736,215 units recorded in the previous trading day, the value of transactions slid by 83.6 per cent to N1.99 million from N12.1 million transacted on Tuesday, and the number of deals fell by 19.2 per cent to 21 deals from the 26 deals recorded a day earlier.
Impresit Bakolori Plc remained the most active stock by volume on a year-to-date basis with 533.9 million units worth N520.9 million, trailed by Okitipupa Plc with 153.6 million units sold for N4.9 billion, and Industrial and General Insurance (IGI) Plc with 71.2 million units valued at N24.2 million.
Also, Okitipupa Plc remained the most active stock by value on a year-to-date basis with 153.6 million units valued at N4.9 billion, followed by FrieslandCampina Wamco Nigeria Plc with the sale of 14.7 million units worth N568.1 million, and Impresit Bakolori Plc with a turnover of 533.9 million units sold for N520.9 million.
By Adedapo Adesanya
The Naira witnessed a N1.76 or 0.11 per cent depreciation on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, April 16.
During the trading session, the local currency was exchanged with the greenback at N1,603.16/$1, in contrast to the N1,601.40/$1 it was traded a day earlier, according to data from the Central Bank of Nigeria (CBN).
Also, the Nigerian currency weakened against the British Pound Sterling in the official market yesterday by N6.71 to quote at N2,121.97/£1 compared with the previous day’s value of N2,115.26/£1 and tumbled against the Euro by N9.28 to sell for N1,818.17/€1 versus Tuesday’s exchange rate of N1,808.89/€1.
In the parallel market, the Naira lost N5 against the Dollar to finish at N1,620/$1 compared with the preceding day’s N1,615/$1.
The pressure on the domestic currency came as the central bank sold over $30.00 million at rates between N1,590.00/$ and N1,601.50/$ this week to authorised forex dealers.
At the cryptocurrency market, things turned bullish as the US Federal Reserve Chairman, Mr Jerome Powell, dashed hopes for early rate cuts, citing the need to assess the impact of US tariffs on the global economy.
The Federal Reserve chair also mentioned that the US central bank needed more time to see the effects of tariffs play out in the global economy. The same is likely to be true of the economic effects, which will include higher inflation and slower growth.
Market analysts noted that the remarks disappointed rate cuts optimist by stressing focus on protecting against tariff-driven price hikes from driving a long-term rise in inflation expectations.
Solana (SOL) jumped by 7.2 per cent to trade at $134.28, Cardano (ADA) added 2.8 per cent to close at $0.6209, Dogecoin (DOGE) appreciated by 2.5 per cent to $0.1570, Ethereum (ETH) rose by 2.1 per cent to $1,602.70, Ripple (XRP) gained 1.9 per cent to close at $2.09, Bitcoin (BTC) increased by 1.5 per cent to $84,749.46, and Binance Coin (BNB) went up by 0.7 per cent to $583.08.
But Litecoin (LTC) declined by 0.7 per cent to finish at $75.38, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Aduragbemi Omiyale
The further reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, from N865 to N835, effective from Wednesday, April 16, 2025, by Dangote Petroleum Refinery has been applauded by Nigerians.
The price slash was the second by the company in a week and it was in reaction to the decline in the price of crude oil in the global market due to the trade war between the United States and China.
In a statement yesterday by the Group Chief Branding and Communications Officer of Dangote Group, Mr Anthony Chiejina, it was stated that key partners, including MRS, AP (Ardova), Heyden, Optima Energy, Hyde and Techno Oil, will sell petrol to customers at N890 per litre, down from N920 in Lagos, while in the other South-West states, the price will be N900 per litre versus the previous N930.
In addition, Nigerians living in the North-West and North-Central will get the high-quality Dangote petrol at N910 per litre compared with the former price of N940, and those in the South-East, South-South, and North-East will buy at N920 per litre, down from N950 per litre.
Dangote expressed hopes that this latest reduction in PMS prices would generate a positive ripple effect throughout various sectors of the economy, providing much-needed relief to consumers and contributing to broader economic growth, particularly during the Easter season.
It stated that the slash in price reaffirmed its “commitment to providing high-quality petrol at affordable rates, benefiting consumers across the nation. In addition, we are working collaboratively with our partners to ensure equitable reflection of this price reduction.”
Dangote Petroleum Refinery has consistently worked to reduce the prices of petrol and other refined petroleum products, ensuring the continued benefit of Nigerian consumers.
For example, in February, the refinery reduced prices twice by N125. In addition, products such as diesel and Liquefied Petroleum Gas (LPG) have also experienced significant price reductions due to the refinery’s sustained efforts.
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