Economy
Securities Issuers Forum Will Enhance Nigeria’s Economic Growth—SEC
By Dipo Olowookere
The newly created Securities Issuers Forum (SIF) has the potential to enhance Nigeria’s economic growth, the Director-General of the Securities and Exchange Commission (SEC), Mr Lamido Yuguda, has said.
Mr Yuguda made this disclosure on Wednesday during the virtual inauguration of the platform formed in collaboration with the Nigeria Employers Consultative Association (NECA).
He explained that the forum can contribute to Nigeria’s economic development because it will allow issuers to engage the commission in order to encourage more listings, improve the contribution of issuers to the development of the capital market as key stakeholders, deepen and broaden the market.
According to him, he sees a situation where the platform will act as a bridge between the SEC and issuers of securities, noting that this has been tested in European and American markets.
The SEC chief said with SIF, the agency will be better positioned to engage issuers on capital raising opportunities to facilitate increased participation in the capital market, development of new products to meet funding needs and addressing issues relating to compliance with regulatory requirements.
“The idea of a forum for issuers of securities is not novel as such fora exist in other parts of the world to cater to the interests of issuers of securities in the capital market.
“In Europe, the European Issuers acts as the voice of issuers of securities representing over 8,000 companies and national associations of issuers of securities.
“In the United States of America and South Africa, the American Securities Association and the Debt Issuers Association respectively serve as the associations for issuers of securities,” he stated.
“In Nigeria, NECA, the umbrella body for over 3,000 members seeks to protect interests and rights of businesses and ultimately influence policymaking.
“By encouraging the establishment of the SIF in collaboration with NECA, the SEC hopes to bridge the gap that exists between the expectations of issuers and the requirements of the regulator,” Mr Yuguda added.
“While forums for issuers are not very common in the African region, they have proven to be veritable tools for capital market advancement in the UK, Europe and Asia. The inauguration of SIF today thus marks an important move by Nigeria to reap the benefits associated with its establishment,” the capital market expert disclosed.
The SEC boss stated that the objectives of issuers forums among others are to maintain regular contact with the regulator and policymakers: advise the regulator and policymakers on regulations affecting companies/issuers: conduct research, organize conferences, roundtable discussions and other events for the benefit of members and promote sound corporate governance and ethical conduct among members.
Other objectives of the forum he said, are to promote healthy competitiveness among members: maintain an enabling business environment by monitoring issues of direct relevance to members and protect the interest of members and present their views at various fora.
“The commission had encouraged the creation of associations and trade groups for other capital market stakeholders such as shareholders and capital market operators. Therefore, SIF is expected to function seamlessly and attract members in line with precedence already established.
“The presentations which will be made today will reiterate further the important role which SIF will play in the Nigerian capital market and the resultant responsibility placed on members to ensure that the forum lives up to its expectation,” he noted.
In his remarks, DG of NECA, Mr Timothy Olawale, expressed appreciation to the SEC on the initiative of inaugurating the forum, saying that the event is important to the business community especially coming during the current economic constraints being faced globally.
He said regulators are expected to be business facilitators and expressed excitement that the SEC was working hard at facilitating the ease of doing business as well as bridge the gaps and aid companies to meet expectations of compliance.
“This Forum is a good one by the SEC as it will help us to do what is needful and right and we are very excited about it. It is commendable and we recommend this form of partnership to others.
“The forum will serve as a medium of regular engagement between SEC and issuers of securities in order to address challenges, improve the business environment and enhance the contribution of the capital market to the growth of the Nigerian economy. We might not achieve all we set out to do at once, but gradually we will get there,” he stated.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange started the new week on an upward trajectory after it closed higher by 0.52 per cent on Monday, May 4.
This raised the market capitalisation by N12.48 billion to N2.409 trillion from last Thursday’s N2.396 trillion, and moved the NASD Unlisted Security Index (NSI) higher by 20.86 points to 4,026.64 points from 4,005.78 points.
The unlisted securities market gained weight yesterday despite recording two price gainers and two price losers.
FrieslandCampina Wamco Nigeria Plc added N8.92 to sell at N98.14 per share versus N89.24 per share, and Central Securities Clearing System (CSCS) Plc appreciated by N1.12 to N77.14 per unit from N76.02 per unit.
Conversely, NASD Plc lost N3.47 to sell at N31.23 per share compared with the previous price of N34.70 per share, and Food Concepts Plc declined by 26 Kobo to settle at N2.41 per unit, in contrast to the previous rate of N2.67 per unit.
During the session, the volume of securities traded by investors fell by 14.4 per cent to 751,518 units from 877,682 units, and the number of deals decreased by 44.1 per cent to 31 deals from 56 deals, while the value of securities climbed 32.8 per cent to N35.4 million from N26.7 million.
The most active stock by value on a year-to-date basis remained Great Nigeria Insurance (GNI) Plc with 3.4 billion units worth N8.4 billion, followed by CSCS Plc with 60.2 million units transacted for N4.1 billion, and Okitipupa Plc with 27.8 million units sold for N1.9 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units valued at N8.4 billion, trailed by Resourcery Plc with 1.1 billion units exchanged for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
By Adedapo Adesanya
The Naira opened the week in the green territory in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday after it further appreciated against the US Dollar by N9.71 or 0.7 per cent to quote at N1,365.23/$1 compared with the previous session’s value of N1,374.94/$1.
The scenario was not different with the Pound Sterling at the same market window, where it gained N6.99 to sell for N1,851.25/£1 versus last Thursday’s closing price of N1,858.24/£1, and appreciated against the Euro by N8.62 to close at N1,607.58/€1, in contrast to the N1,612.87/€1 it was traded in the previous trading day.
Similarly, at the black market, the Naira improved its value against the greenback yesterday by N5 to settle at N1,380/$1 versus the previous rate of N1,385/$1, and at the GTBank FX desk, it closed flat at N1,384/$1.
The Nigerian Naira put up a good performance against the Dollar during the session due to sustained monetary tightening by the Central Bank of Nigeria (CBN) and a steady increase in foreign exchange inflows.
Specifically, stronger diaspora remittances, oil-related inflows, and a decline in speculative demand for the Dollar played pivotal roles in anchoring market expectations.
Sufficient FX liquidity has continued to keep the Naira stable. The local currency stayed strong despite an 83 per cent decline in CBN FX intervention in April to $150 million from $985 million in March.
As for the cryptocurrency market, prices were mixed as broader crypto markets were diverse and macro risks persisted, amid ongoing US-Iran tensions and steady central bank policy, with upcoming US earnings and jobs data seen as potential catalysts for further bitcoin volatility.
Bitcoin (BTC) gained 1.3 per cent to sell at $80,889.94, Ethereum (ETH) jumped 0.3 per cent to $2,376.40, Cardano (ADA) increased by 0.2 per cent to $0.2529, and TRON (TRX) appreciated by 0.2 per cent to $0.3399.
On the flip side, Dogecoin (DOGE) slid 0.8 per cent to $0.1113, Ripple (XRP) went down by 0.5 per cent to $1.40, Binance Coin (BNB) dropped 0.4 per cent to $626.41, and Solana (SOL) shrank by 0.3 per cent to $84.60, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Adedapo Adesanya
Oil prices jumped about 6 per cent on Monday as Iran stepped up attacks on the United Arab Emirates (UAE) and ships in the Middle East over the past 24 hours, the most serious escalation since a US-Iran ceasefire came into force in early April.
This pushed the price of Brent futures higher by $6.27 or 5.8 per cent to $114.44 per barrel, and raised the US West Texas Intermediate (WTI) crude by $4.48 or 4.4 per cent to $106.42 a barrel.
Iran hit several ships in the Strait of Hormuz on Monday and set a UAE oil port ablaze, as President Donald Trump’s attempt to use the US Navy to free up shipping provoked the war’s biggest escalation since a ceasefire was declared last month.
The UAE said its air defences were engaging missile and drone threats on Monday evening as firefighters battled a blaze at a major oil industry zone.
The US military said it destroyed six Iranian small boats and intercepted Iranian cruise missiles and drones fired by Iran as it sought to thwart a new US naval effort to open shipping through the Strait of Hormuz. About 20 per cent of global oil and liquefied natural gas supplies passed through the strait before the US and Israel launched strikes against Iran on February 28.
Meanwhile, Iran’s Revolutionary Guards Navy (IGRC) issued a map that it said was expanding the areas controlled by Iran near the Strait of Hormuz.
The United Kingdom Maritime Trade Operations (UKMTO) said it received a report of an incident involving a cargo vessel about 36 nautical miles north of Dubai. The UKMTO also reported a separate incident earlier in the day near the UAE.
Oil executives from the Gulf and global oil traders have said that even when shipping through the Strait of Hormuz reopens, it will take several weeks, if not months, for flows to normalise.
Separately, the energy minister in the UAE, which left the Organisation of the Petroleum Exporting Countries (OPEC) last week, said the country owes it to its investment partners to produce what global oil markets require without restrictions, while cooperating with other crude producers.
OPEC and its allies, known as OPEC+, said they would raise oil output targets by 188,000 barrels per day in June for seven members, marking the third consecutive monthly increase.
The seven members who met on Sunday were Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. With the UAE leaving, OPEC+ includes 21 members, including Iran. However, in recent years, only the seven nations plus the UAE have been involved in monthly production decisions.
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