Economy
SEC: Gwarzo Paid 44 Persons N1.7b for Golden Handshake—Panel
By Modupe Gbadeyanka
More revelations are being made on some alleged illegality carried out by the suspended Director General of the Securities and Exchange Commission (SEC), Mr Mounir Gwarzo.
Mr Gwarzo got into trouble after he was accused of paying himself the sum of N104.8 million as severance package while still under the employment of the commission.
Though claimed he was punished by the Minister of Finance, Mrs Kemi Adeosun, for failing to stop a forensic audit of Oando Plc, which was suspended from trading on the floor of the Nigerian Stock Exchange (NSE) by SEC, the Minister rubbished it, saying that was never the case.
A panel set up by the Minister to look into allegations against Mr Gwarzo recommended his dismissal.
More details of the panel’s investigations have revealed that the suspended capital market regulatory chief allegedly paid the sum of N1.7 billion to 44 workers of the commission under a scheme called ‘2015 Golden Handshake.’
Under the programme, employees of SEC willing to the services of the commission were given the opportunity to do so with a payment made.
“In 2015, he singlehandedly, without a budgetary provision, paid N1.7 billion to a set of staff under a golden handshake arrangement. By law, the DG of SEC is required to seek the approval of the Minister of Finance, even if there is a board in place.
“They should have sought the approval of the minister, who in turn would present it to the President and the request sent to the National Assembly.
“But the suspended SEC DG went outside budget provision to effect the payment,” said a source, who backed his claim with documents, informed New Telegraph.
Another source said the Administrative Panel, headed by Dr Mahmoud Isa-Dutse, the Permanent Secretary of the Finance Ministry that investigated Mr Gwarzo after his temporary suspension, unearthed payments in millions of Naira paid to firms linked to him.
One of the firms, Outbound Investments Limited, has Mr Gwarzo as Director on its board with 200,000 ordinary shares. Several payments amounting to millions of naira were paid by SEC to the firm’s bank account.
For instance, SEC, on February 21, 2017 paid the sum of N2,241,360 to Outbound Investments for supply of diesel. It had previously, on October 10, 2016 and July 27, 2016 paid the firm N1.9 million and N2.2 million respectively for supplies. Series of payments made to the company by SEC as evidenced in the invoice sighted by this medium are as follow; June 6, 2016, N 2,178,000 for supply of 11,000 litres of diesel; May 17, 2016, N2,178,000 paid for 11,000 litres of diesel; N2,464,400 paid on April 5, 2017 for 8,000 litres of diesel that was discharged on March 29, 2017. Contrary to claim by Mr Gwarzo that he had resigned his membership from the board of Outbound Investment and Medusa Investments Limited, a copy of resolution reached by the board of Medusa Investment, dated August 15, 2016 showed Mr Mounir Gwarzo as Managing Director and Khaijah Mustapha, another Director signed copy of board resolution respectively. A copy of Medusa Investments resolution addressed to its bank, directed it to issue a new corporate naira MasterCards on the company’s account to Gwarzo and Khadijat, the firm’s two directors.
The source said: “Gwarzo’s personal interest in the identified companies is a clear contravention of the regulation, which explicitly prohibits public officers from being in situations that bring their personal interest into conflict with their public duties.
“Also, the use of the companies as suppliers to the commission, said government sources, amounted to earning wealth illegally and contravenes the EFCC Act, as well as the Code of Conduct for Public Officers.”
Mr Gwarzo was placed on temporary suspension last November on the orders of the Minister of Finance, Mrs Kemi Adeosun, to allow unhindered investigation into allegations of financial misconduct.
An administrative panel, headed by permanent secretary of the ministry, interrogated and submitted its report. One of the recommendations by the panel to the Federal Government was outright dismissal of the embattled director-general from the public service of the Federal Government.
It also recommended that the suspended DG be referred to the Independent Corrupt Practices and other related offences Commission (ICPC) for further investigation over award of contracts to his company. The panel, in the report, which has been submitted to Mrs Adeosun, directed Mr Gwarzo to refund the sum of N104,851,154.94, being the severance package he approved and received for himself.
Mrs Adeosun and Mr Gwarzo appeared on Tuesday before the House of Representatives’ Committee on Capital Market this week.
The minister defended her decision to suspend Mr Gwarzo, stating that she did not have to wait for the anti-graft agencies to handcuff him before suspending him from office over allegations of financial misconduct.
She equally disclosed that the report of the administrative panel of inquiry was ready for submission to President Muhammadu Buhari.
In his submission before the committee, Mr Gwarzo said his suspension last November coincided with his refusal to stop the forensic audit of Oando Plc, a Nigerian energy firm, after Mrs Adeosun had pressurised him to do so.
Mr Gwarzo, in his capacity as the DG of SEC, had ordered the Nigerian Stock Exchange (NSE) to place the shares of Oando on technical suspension, following allegations of capital market infractions against the energy company. He said he acted on the petitions by two shareholders of Oando – Mr Dahiru Mangal and Ansbury Investment Inc. – who had accused the executive management of Oando of financial mismanagement and had sought for their ouster. Based on SEC’s subsequent investigation into the allegations by the company’s shareholders, Mr Gwarzo, as DG, had listed various infractions committed by Oando and ordered that a forensic audit be undertaken of the company to reaffirm the commission’s findings.
By Modupe Gbadeyanka
Nigerian businessman, Mr Aliko Dangote, has increased his investment in Ethiopia to over $4 billion from $2.5 billion.
During a high-profile visit hosted by Prime Minister Abiy Ahmed, the business mogul informed newsmen in Gode, in Ethiopia’s Somali region, that the expanded scope includes critical infrastructure such as a 110-kilometre pipeline, a 120MW power plant, a polypropylene packaging facility, and a two-million-tonne NPK blending plant, among other new components.
The richest man in Africa described Ethiopia as a key strategic destination for Dangote Group’s long-term investments.
“In total, our declared and signed investments in Ethiopia now exceed $4 billion. This makes Ethiopia the second-largest recipient of our investments in Africa, accounting for nearly nine per cent of our continental outlay between now and 2030,” he said.
He also reaffirmed his commitment to boosting food security across Africa through large-scale fertiliser investments, declaring that the continent has the capacity to feed itself and become a net exporter of agricultural products.
Speaking on the strategic importance of fertiliser in agricultural productivity, Mr Dangote noted that Africa’s food insecurity challenges are largely due to limited access to key inputs.
Africa holds immense agricultural potential, yet continues to grapple with food insecurity due to limited access to fertiliser. Through our investments, we are committed to reversing this trend by boosting productivity, empowering farmers, and advancing a sustainable path to food self-sufficiency,” he stated as he was accompanied to inspect the site of the proposed fertiliser plant, where construction activities are already underway.
He added that his organisation’s ambition, though bold, is achievable with sustained investment in fertiliser production and agricultural infrastructure.
“Africa has the capacity to feed itself and even export to the rest of the world. Our fertiliser investments across the continent are designed to unlock that potential and secure a prosperous future for our people,” Mr Dangote noted.
He further commended Prime Minister Abiy Ahmed’s leadership and vision for economic transformation, saying he is “driving development beyond expectations, but such progress requires strong private sector collaboration. We are proud to partner with Ethiopia to help build one of Africa’s most dynamic economies in the coming decade.”
In his remarks, Mr Ahmed described his guest as a trusted partner and commended the pace of work on the fertiliser project, which he said aligns with Ethiopia’s broader development priorities.
He emphasised that the project would significantly boost domestic fertiliser production, reduce dependence on imports, and provide critical support to millions of Ethiopian farmers.
According to the Prime Minister, the fertiliser plant will also create extensive employment opportunities, strengthen the industrial value chain, and reinforce Ethiopia’s position as an emerging agro-industrial hub in Africa.
“This type of large-scale investment demonstrates the power of strong collaboration between government and the private sector,” he said. “Expanding such partnerships will accelerate economic growth, attract further investment, and improve the livelihoods of our people.”
The Dangote fertiliser initiative is widely seen as a transformative step toward reshaping Africa’s agricultural landscape, with the potential to enhance productivity, reduce import dependence, and drive inclusive economic growth across the continent.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed higher by 1.41 per cent on Friday, May 15, supported by four securities on the platform.
During the session, FrieslandCampina Wamco Plc added N14.24 to its share price to sell for N159.00 per unit, in contrast to the previous day’s N144.76 per unit.
Further, Central Securities and Clearing System (CSCS) Plc appreciated by N1.34 to N72.34 per share from N71.00 per share, Geo-Fluids Plc improved its price by 4 Kobo to N2.94 per unit from N2.90 per unit, and Industrial and General Insurance (IGI) Plc gained 1 Kobo to trade at 61 Kobo per share compared with Thursday’s closing price of 60 Kobo per share.
As a result, the NASD Unlisted Security Index (NSI) rose by 58.20 points to 4,188.41 points from 4,130.21 points, and the market capitalisation soared by N34.82 billion to N2.506 trillion from N2.471 trillion on Thursday.
During the session, the volume of trades went up by 180.8 per cent to 1.2 million units from 417,349 units, and the value of transactions increased by 29.8 per cent to N29.8 million from N23.2 million, while the number of deals fell by 22.6 per cent to 24 deals from 31 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 60.8 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.9 million units valued at N1.9 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
By Dipo Olowookere
The bears overpowered the Nigerian Exchange (NGX) Limited on Friday, sinking it further by 0.76 per cent when the closing gong was struck by 4 pm.
The nation’s flagship equity market was under selling pressure during the session, as investors booked profits after the shares witnessed price appreciation in the past trading sessions.
The energy sector was the most impacted, as it shed 4.43 per cent. The consumer goods index declined by 0.90 per cent, the banking counter decreased by 0.15 per cent, and the industrial goods sector lost 0.08 per cent, while the insurance counter gained 2.42 per cent, which was not enough to salvage the situation.
Consequently, the All-Share Index (ASI) contracted by 1,912.19 points to 250,330.92 points from 252,243.11 points, and the market capitalisation moderated by 1.225 trillion to N160.444 trillion from N161.669 trillion.
Zichis was the worst-performing stock for the session after it gave up 9.97 per cent to close at N29.43, FTN Cocoa slipped by 9.95 per cent to N8.96, The Initiates slumped by 9.90 per cent to N32.30, LivingTrust Mortgage Bank tumbled by 9.88 per cent to N3.83, and International Energy Insurance dropped 9.71 per cent to trade at N2.79.
The best-performing stock was ABC Transport, which grew by 10.00 per cent to N6.27. May and Baker also appreciated by 10.00 per cent to N47.30, SCOA Nigeria surged by 9.98 per cent to N33.05, Trans-Nationwide Express expanded by 9.97 per cent to N7.06, and DAAR Communications jumped 9.76 per cent to N2.25.
Yesterday, investors traded 1.1 billion shares worth N44.3 billion in 65,744 deals compared with the 1.0 billion shares valued at N41.6 billion transacted in 74,822 deals a day earlier. This indicated a dip in the number of deals by 12.13 per cent, and a rise in the trading volume and value by 10.00 per cent and 6.49 per cent, respectively.
Chams was the busiest equity for the day, with 328.5 million units sold for N1.1 billion. UBA traded 61.6 million units worth N2.7 billion, First Holdco transacted 58.7 million units valued at N4.2 billion, Secure Electronic Technology exchanged 51.9 million units worth N45.0 million, and Access Holdings traded 51.8 million units valued at N1.3 billion.
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