Economy
SEC Expresses Concerns Over Proliferation of Illegal Investment Scheme Operators
By Aduragbemi Omiyale
The persistent proliferation of operators of illegal investment schemes in the country has continued to give the Securities and Exchange Commission (SEC) sleepless nights.
According to the Director-General of SEC, Mr Lamido Yuguda, these operators are a huge threat to the Nigerian capital market, and steps must be taken quickly to combat them.
In his New Year message in Abuja, Mr Yuguda assured of a renewed onslaught against promoters of such schemes.
He said that last year alone, the commission sealed off the offices of four of such illegal operators that had defrauded innocent citizens of billions of naira and assured that the organisation would continue its enforcement actions to ensure that such illegal entities are not allowed to operate.
“The SEC has been fighting a serious war against Ponzi schemes; we have been alerting people. We have said that investors should only deal with registered operators that have the registration of the Commission, we have their list on the SEC website and we have always said that if you go to an operator or when an operator approaches you, you must confirm that he is a licensed operator with the SEC.
“We have our numbers on how to reach our offices in the zones, and we have done a lot of sensitizations in terms of seminars, webinars all in an effort to discourage people from going to Ponzi schemes.
“Unfortunately, a lot of people continue to patronize these Ponzi schemes, we have had cases that have been reported to us, our enforcement department and the police unit have been on many of these cases trying to resolve the cases that have been reported to us.
“The commission has also continued to employ its compliance tool to ensure that only fit and proper capital market operators practice in the market. This has resulted in an improved level of compliance with filing of prudential returns rising to 96% in 2022 compared with 81% in 2021,” Mr Yuguda stated.
The DG expressed confidence that as the results of the various initiatives the commission is implementing begin to manifest in 2023 gradually, the agency, and indeed the capital market, will witness uncommon development in securities issuance businesses, especially as it affects digital assets, commodities trading ecosystem, custodianship of assets, and Fintech among others.
“With the implementation of the Revised Capital Market Master Plan, the market will also witness renewed confidence expected to attract fresh investments from domestic and foreign investors.
“Although 2023 is an election year and market activities may typically slow down before and during the general elections, we are hopeful that the improved awareness and positive electioneering campaigns will lead to peaceful elections and a quick return to the pre-election levels of investment activities,” he disclosed.
On some of the achievements of the commission in the last year, Mr Yuguda disclosed that on Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT), in order to comply with the requirements of both the GIABA Mutual Evaluation Report(MER) Follow-Up Process and the FATF International Cooperation Review Group (ICRG) requirements to avoid Nigeria being placed on the FATF public grey list at the Plenary after the deadline in October 2022, the commission approved the Rules and Regulations of the Virtual Asset Service providers b. Amendments of the sector-specific regulations to repeal the 2013 SEC AML/CFT Regulations and enactment of the 2022 AML/CFT Regulations.
On Fintech, the DG stated that SEC would pursue various initiatives, including sensitization programmes on Crowdfunding, adding that to further strengthen and encourage developments in the Fintech space, the commission resuscitated the Regulatory Incubation program during the year.
Giving an update on the Investments and Securities Bill (ISB) review, the SEC DG said the organisation presented the ISB to the National Assembly for its legislative consideration and a public hearing was successfully organised on September 20, 2022. The Bill has successfully gone through the 3rd reading at the House of Representatives in December 2022 and will be presented to the Senate on resumption in January 2023 for its concurrence.
“We are hopeful that the Bill will be passed into law before the end of the 9th National Assembly. With less than six months to the end of the 9th National Assembly come June 2023, we believe that the Investments and Securities Bill (ISB) will be passed in the coming months. The ISB, if passed into law, will align the enabling Act with the realities and trends in capital market regulation and practice in Nigeria and abroad,” he stated.
Mr Yuguda assured that the commission would continue to provide extra support to the registered commodities trading platforms to complement the government’s renewed diversification efforts in agriculture. Engagement with the Standards Organization of Nigeria (SON) will continue in order to expedite action on the review, approval and publication of commodities standards.
By Adedapo Adesanya
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.
By Adedapo Adesanya
The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.
It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.
The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.
At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.
As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.
A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.
The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.
The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.
The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.
Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
By Aduragbemi Omiyale
The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.
In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.
However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.
In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.
Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.
Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.
“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.
“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.
His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.
“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.
“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”
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