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
A 1.56 per cent rise was recorded by the Nigerian Exchange (NGX) Limited on the back of renewed confidence in the market by investors.
The growth posted by Nigerian stocks during the session was significantly driven by demand for banking and energy equities.
The energy space appreciated by 2.97 per cent, the consumer goods index gained 1.75 per cent, the banking counter grew by 1.60 per cent, the commodity sector improved by 1.54 per cent, and the industrial goods index expanded by 0.08 per cent, while the insurance industry went down by 1.61 per cent.
At the close of business, the All-Share Index (ASI) chalked up 1,662.60 points to 108,361.10 points from the 106,698.50 points recorded a day earlier and the market capitalisation, which measures the total value of shares on the platform, increased by N1.045 trillion to N68.105 trillion from N67.060 trillion.
The trio of Ecobank, Northern Nigeria Four Mills, and Nestle Nigeria topped the gainers’ chart yesterday after they rose by 10.00 per cent each to N25.85, N82.50, and N1,210.00 apiece, as Beta Glass jumped by 9.98 per cent to N132.80, and Austin Laz leapt by 9.94 per cent to N1.88.
Conversely, Guinea Insurance led the losers’ group after it shed 8.70 per cent to 63 Kobo, DAAR Communications declined by 6.78 per cent to 55 Kobo, VFD Group lost 6.59 per cent to trade at N17.00, Coronation Insurance slumped by 6.07 per cent to N2.01, and Regency Alliance weakened by 4.69 per cent to 61 Kobo.
During the session, investors transacted 475.5 million stocks for N13.9 billion in 17,575 deals versus the 569.0 million stocks valued at N18.9 billion exchanged in 18,612 deals on Monday, representing a decline in the trading volume, value, and number of deals by 16.43 per cent, 26.46 per cent, and 5.57 per cent, respectively.
The busiest equity on Tuesday was Access Holdings with 103.9 million units worth N2.2 billion, GTCO exchanged 38.0 million units for N2.4 billion, UBA traded 30.7 million units valued at N1.1 billion, Sterling Holdings transacted 27.2 million units worth N147.2 million, and Zenith Bank sold 26.2 million units valued at N1.2 billion.
By Modupe Gbadeyanka
Following a production capacity boost facilitated by new machinery being commissioned in the two manufacturing plants, Dangote Packaging Limited (DPL) is planning to expand into the African export market.
With its production now up to 52 million polypropylene bags per month from 36 million, the management is exploring pushing the excess to other African markets to boost the Nigerian economy, particularly for foreign exchange (FX) earnings.
“With the current increase in production capacity, DPL is ready to explore markets across West, Central, and Southern Africa.
“Once domestic demand is met, it is only logical to channel our surplus to new territories. To this end, we have engaged an export team to lead the charge,” the chairman of the company’s board, Mr Robert Ade-Odiachi, said during a strategic board meeting held last Wednesday.
According to him, the entry into export markets will be backed by world-class standards, also hinting at the possibility of offering trade concessions to fast-track market penetration in target export regions.
“We are equipped with state-of-the-art machinery, skilled manpower, and robust systems. Our product quality is unmatched, and our pricing remains competitive,” he added.
DPL’s expansion is part of a wider strategic alignment with the growing demands of the Dangote Group’s industrial portfolio. The increase in production is expected to support the Group’s internal supply chain while also positioning DPL as a regional packaging powerhouse.
“With our refinery and petrochemical plants now supplying key raw materials, we have achieved self-sufficiency, further reinforcing our long-term growth prospects,” Mr Ade-Odiachi said.
Also speaking at the meeting, Dangote Group Treasurer and DPL Board Member, Mr Mustapha Matawalle, stressed the economic benefits of the expansion.
“This is not just about market dominance and revenue generation,” he said. “It’s also about creating jobs and boosting Nigeria’s foreign exchange earnings through export activity,” he stated, lauding DPL’s commitment to Health, Safety, Security, and Environmental (HSSE) standards, noting that operations remain fully compliant with regulatory expectations.
The company’s new push follows the commissioning of advanced machinery in April, an event where DPL Managing Director, Mr Sai Prakash, described the equipment as cutting-edge and pivotal to enhanced productivity and product quality.
“With our rapidly expanding capabilities, stepping into the African market is a natural and timely progression,” Mr Sai Prakash said.
Most traders in Nigeria are retail traders. They use personal money and trade on online platforms. Understanding how retail trading compares to institutional trading helps new traders make better choices. Knowing the differences also helps traders set realistic goals and avoid common traps. Retail traders do not have the same power, tools, or market influence as institutions, but they can still grow their accounts with smart choices and consistent habits. This article will explain the key differences and how Nigerian retail traders can succeed by focusing on skill, discipline, and risk control.
What Is Retail Forex Trading?
Retail traders trade with their own money, usually in small amounts. They use mobile apps or desktop platforms like MetaTrader to buy and sell financial instruments. Retail trading is open to anyone with internet access and a small deposit, which makes it popular in Nigeria. However, retail traders usually have limited access to financial data, trading tools, and fast execution speeds.
What Is Institutional Trading?
Institutional trading is carried out by banks, hedge funds, and large financial firms. These institutions trade large volumes of money and have direct access to liquidity providers. They use advanced tools, private data feeds, and faster order execution. Their trading decisions are often based on deep market analysis and are supported by teams of professionals.
Key Differences Between Retail and Institutional Trading
- Capital: Institutions manage millions or even billions in assets. In contrast, retail traders often begin with as little as $100 or $1,000. The amount of capital affects how trades are placed and how much risk is taken.
- Tools and Access: Institutional traders use advanced trading software, direct market access, and exclusive data sources. Retail traders work with public platforms and slower data, which can limit their reaction time.
- Market Impact: Institutional traders place large orders that can influence price movement. Retail traders do not affect market direction due to the smaller size of their trades.
- Costs: Institutions pay lower fees and spreads because they trade in bulk. Retail traders usually face higher costs per trade, including wider spreads and commissions.
Can Retail FX Traders Succeed?
Yes, retail traders can succeed if they follow a clear plan and manage risk properly. Many individuals in Nigeria have turned small accounts into meaningful profits by being consistent and disciplined. They focus on learning, testing strategies, and avoiding emotional decisions. You can read about successful forex traders from Nigeria.
Tips for Retail Traders in Nigeria
Retail traders in Nigeria should focus on using a simple strategy that they understand clearly. They should risk only a small amount of their capital on each trade to avoid large losses. It is important to trade without emotion and to treat each trade as a learning opportunity to improve future decisions. Keeping a trading journal can also help track progress and find patterns in both success and failure.
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