Economy
SEC Tasks Shareholders to Raise Relevant Observations at AGMs
By Aduragbemi Omiyale
Shareholders, especially those under registered groups, have been tasked by the Securities and Exchange Commission (SEC) to endeavour to raise relevant observations on key areas at the Annual General Meetings (AGMs) of companies listed on the stock exchanges.
The Director-General of SEC, Mr Lamido Yuguda, said this could be achieved by carefully reviewing audited reports and accounts of listed organisations prior to such yearly shareholders’ gatherings, urging them to uphold high ethical standards and promote new strategies to strengthen accountability among market participants in the Nigerian capital market.
According to Mr Yuguda, in 2016, pursuant to Section 8(y) of the Investments and Securities Act (ISA), the commission released a Code of Conduct for members of shareholders’ associations to guide their conduct during general meetings of public companies and their relationship with public companies outside the general meetings, and for other purposes connected therewith.
He said this code was still in force, noting that it is intended to ensure the highest standard of conduct amongst members and the companies with whom they interact as bona fide shareholders.
“The code is designed to ensure that association members uphold high ethical standards and make positive contributions in ensuring that the affairs of public companies are run in an ethical and transparent manner in compliance with the Nigerian Code of Corporate Governance and the SEC Corporate Governance Guidelines.
“I urge you to continue to abide by this Code of Conduct for Members of Shareholders’ Associations by being disciplined and ensuring good governance,” the SEC DG said at the 2022 edition of the Independent Shareholders Association of Nigeria (ISAN) Triennial Delegates Conference held in Lagos recently.
“We, therefore, urge this association to continue to improve performance of the function of monitoring of companies to contribute to their growth by reviewing Audited Reports and Accounts prior to AGMs to raise germane observations on key areas,” he added.
Mr Yuguda also urged the shareholders to continue to promote their core activities which centre on minority shareholder protection, advancement of corporate governance and development of a deep and robust capital market.
He described the theme of the conference, which focuses on reforming the judicial system in order to stabilise and encourage the growth of the Nigerian economy, as very important and relevant to the growth and development of Nigeria.
The DG commended the shareholders for the excellent support the agency has received from the various shareholder associations in the country, especially ISAN.
“ISAN is one of the largest and foremost shareholders’ advocacy groups in the country. We are proud to be associated with your core activities which centre on minority shareholder protection, advancement of corporate governance and development of a deep and robust capital market,” he said.
“The judiciary has also been contributing to the development of the capital market through its role of adjudicating over matters involving stakeholders in the capital market. As the SEC continues its important regulatory work of protecting both foreign and domestic investors who invest their funds in the Nigerian capital market, we will continue to partner with and engage the judiciary and other relevant stakeholders,” Mr Yuguda noted.
He stated that in an increasingly competitive global environment for capital flows, foreign investors consider the strength and independence of a regulator in their investment decisions, stressing that it is, therefore, a matter of urgent national priority to continue to send the right signals to the investing world that the Nigerian capital market is indeed soundly regulated by a strong and independent SEC, devoid of conflicting interference from any arms of government.
“The SEC is happy to have, over the years, enjoyed the support of the Nation’s courts in the quest to build a vibrant capital market that can contribute to achieving our national objectives.
“The judiciary’s important work impacts market integrity, investor confidence, market development and market fairness. It is clear that without the fair, prompt and effective dispensation of justice, capital markets can never develop. Therefore, in our quest to develop a vibrant capital market in Nigeria, we cannot afford to overlook the central role of the Judiciary,” he said.
However, the SEC DG stated that there was room for reform in the judiciary, especially on issues around investor protection and dispute resolution mechanisms in the Nigerian capital market, adding that the commission supports this reform and is happy to play a role in it.
“As a regulator of this dynamic market, the commission is focused on facilitating capital raising for sustainable national development and transformation of Nigeria’s priority economic sectors, thereby effectively contributing to the national economy.
“Our focus has always centred on the creation of an ecosystem whereby issuers, whether government, entrepreneurs and other businesses, can access capital efficiently. The process of raising money through the capital market plays a vital role in our economy and will help bring nascent ideas to life,” he added.
By Dipo Olowookere
The first trading day of the new week at the Nigerian Exchange (NGX) Limited ended on a negative note on Monday with a 0.15 per cent loss.
This was influenced by a decline in the appetite for Nigerian stocks by investors, as market participants chose to trade cautiously.
The profit-taking put most of the sectors under pressure, with the insurance index crumbling by 1.70 per cent at the close of transactions.
Further, the consumer goods space declined by 0.38 per cent, the banking counter shrank by 0.20 per cent, and the energy industry depreciated by 0.19 per cent, while the industrial goods and commodity sectors closed flat.
Consequently, the All-Share Index (ASI) gave up 155.96 points to settle at 105,799.17 points compared with last Friday’s 105,955.13 points, and the market capitalisation tumbled by N8 billion to close at N66.344 trillion versus N66.352 trillion.
The worst-performing stock yesterday was eTranzact after it lost 10.00 per cent to trade at N5.85, Sunu Assurances depleted by 9.92 per cent to N4.63, Prestige Assurance fell by 8.26 per cent to N1.00, Sovereign Trust Insurance crashed by 7.77 per cent to 95 Kobo, and Red Star Express stumbled by 7.76 per cent to N5.35.
The best-performing stock for the session was Academy Press as it chalked up 9.92 per cent to sell for N2.88, Neimeth appreciated by 8.43 per cent to N2.70, Tantalizers rose by 6.83 per cent to N3.13, Dangote Sugar jumped by 4.71 per cent to N36.70, and Stanbic IBTC grew by 4.24 per cent to N61.50.
Business Post reports that there were 18 price gainers and 35 price losers on Monday, representing a negative market breadth index and weak investor sentiment.
During the trading day, investors traded 477.5 million shares valued at N7.1 billion in 13,520 deals compared with the 750.6 million shares worth N11.1 billion transacted in 10,584 deals in the preceding session, indicating a growth in the number of deals by 27.74 per cent, and a slump in the trading volume and value by 36.38 per cent and 36.04 per cent, respectively.
Jaiz Bank topped the activity chart after selling 197.4 million stocks for N606.2 million, Zenith Bank transacted 26.0 million shares for N1.2 billion, Sovereign Trust Insurance traded 19.3 million equities worth N18.5 million, Prestige Assurance exchanged 18.5 million shares valued at N19.0 million, and Fidelity Bank sold 15.9 million equities worth N270.5 million.
By Modupe Gbadeyanka
In February 2025, inflation in Nigeria moderated to 23.18 per cent from the 24.48 per cent recorded in January 2025, data from the National Bureau of Statistics (NBS) on Monday revealed.
The agency disclosed in the report yesterday that on a year-on-year basis, the average prices of goods and services eased by 8.52 per cent from the 31.70 per cent achieved in February 2024.
In the Consumer Price Index (CPI) data, the NBS said last month, the headline inflation slowed due to decline in the average prices of food items like yam tuber, potatoes, soya beans, flour of maize/cornmeal, cassava, bambara beans (dried), etc compared with the prices in the first month of this year.
It stated that housing, water, electricity, gas, and other fuels accounted for 1.95 per cent of inflationary concerns, which education services contributed 1.44 per cent, with health accounting for 1.40 per cent.
It added that clothing and footwear accounted for 1.17 per cent, information and communication contributed 0.76 per cent, and personal care, social protection, miscellaneous goods and services accounted for 0.76 per cent.
Further, furnishing, household equipment, and routine household maintenance contributed 0.69 per cent; insurance and financial services accounted for 0.11 per cent; and alcoholic beverages, tobacco, recreation, sport, and culture, sport, and culture contributed 0.07 per cent.
Also, food and non-alcoholic beverages accounted for 9.28 per cent, restaurants and accommodation services contributed 2.99 per cent; and transport accounted for 2.47 per cent.
The agency also revealed that last month, food inflation went down on a year-on-year basis by 14.41 per cent to 23.51 per cent from 37.92 per cent in the same period of last year.
On a month-on-month basis, food inflation was 1.67 per cent, with the average annual rate for the 12 months ending February 2025 over the previous 12-month average at 34.74 per cent, in contrast to 30.07 per cent in February 2024.
It stated that core inflation, which excludes the prices of volatile agricultural produces and energy, also declined by 2.12 per cent to 23.01 per cent, year-on-year in February 2025, compared to the 25.13 per cent in February 2024.
On a month-on-month basis, the core index stood at 2.52 per cent in February while the average 12-month annual inflation rate was 25.33 per cent for the 12 months ending February 2025, higher than 21.72 per cent in February 2024.
By Adedapo Adesanya
The Securities and Exchange Commission (SEC) has announced the suspension of Centurion Registrars Limited, including its directors and sponsored individuals from the capital market.
The suspension was announced by the commission in a statement titled Additional Enforcement Measures on Erring Capital Market Operators.
The SEC stated, “All clients of Centurion Registrars are advised to contact Africa Prudential Plc for guidance.”
This is not the first time Centurion Registrars has had issues with the Nigerian government as it was convicted in 2022 by a Special Offences Court in Lagos over fraud involving N206.5 million stocks after it was arraigned by the Economic and Financial Crimes Commission (EFCC).
The latest action of the SEC on the company is part of the agency’s broader efforts in 2025 to crack down on capital market operators it deems illegal to sanitise the investment environment in Nigeria.
Recall that the regulator revoked the registration of Mainland Trust Limited as a capital market operator, citing regulatory non-compliance and outstanding complaints against the company.
In a related development, the commission also said it would publish the names of Capital Market Operators who violate market regulations in its Name and Shame journal.
The SEC said the decision reflects a zero-tolerance policy for infractions in the capital market and aligns with newly revised enforcement strategies.
According to the notice, “The publication will be in addition to the sanctions and penalties for the respective infractions prescribed in the ISA 2007 and the SEC rules and regulations.”
Business Post had reported that the SEC listed mainstreaming the Nigerian capital market into the economy as its top priority in 2025.
Mr Emomotimi Agama, the Director General of SEC, said this in his New Year 2025 message to the capital market community on Monday.
He also said the commission would intensify efforts to eliminate Ponzi and pyramid schemes, thereby fostering an environment for genuine investment opportunities to thrive in 2025.
He said that protecting investors remained a cornerstone of the commission’s mission.
Mr Agama also said that the commission would prioritise key initiatives aimed at deepening market integrity, enhancing investor confidence and driving economic growth.
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