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 Adedapo Adesanya
Central Securities Clearing System (CSCS) Plc kept the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.04 per cent on Friday, July 16.
The securities depository company added N2.50 to its share price to settle at N95.14 per unit from the preceding session’s N92.64 per unit.
However, FrieslandCampina Wamco Nigeria Plc slid during the session by N5.85 to N141.81 per share from N147.66 per share.
But when the bourse closed for the day, the market capitalisation increased by N1.08 billion to N2.593 trillion from N2.592 trillion, while the NASD Security Index (NSI) appreciated by 1.80 points to 4,320.67 points from 4,318.87 points.
During the session, the value of securities slid by 38.9 per cent to N63.5 million from N104.1 million, the volume of securities went down by 34.5 per cent to 1.2 million units from 4.8 million units, and the number of deals declined by 15.4 per cent to 33 deals from 39 deals.
Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 75.4 million units traded for N5.3 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
