Economy
Shareholders Seek Buhari’s Intervention on Suspension of Oando Shares
By Modupe Gbadeyanka
President Muhammadu Buhari has been urged to use his good office to intervene in the suspension of shares of Oando Plc on the floor of the Nigerian Stock Exchange (NSE).
The Securities and Exchange Commission (SEC) placed a technical suspension on the shares of the leading Nigerian energy group last year.
The technical suspension made it possible for the shares of the firm to be traded at the stock market, but without price change.
A statement issued by the NSE on October 23, 2017 had noted that, “The shares of Oando Plc have been placed on technical suspension.
“Thus, the shares will be available for trading but there will be no price movement while the technical suspension subsists.”
The action followed outcome of a panel set up by SEC, which indicted Oando of violating some capital market regulations.
A forensic audit of the company was ordered by the apex regulator in the nation’s capital market, which observers are expecting to see the light of day.
Worried by the effect the crisis has had on them, some shareholders of the company appealed to President Buhari to see how he can influence SEC to lift the embargo place on the equities of Oando.
At a press conference on Tuesday in Lagos, a group known as Concerned Shareholders of Oando Plc urged Mr Buhari to use his good office to intervene in the crisis.
Speaking on behalf of the shareholders, Mr Patrick Ajudua, said they were not against the probe, but only want full trading activities to resume on the shares.
Since it was place on technical suspension last year, the shares of Oando have remained frozen at N5.99k per share.
SEC had explained that the halt in price movement was to stop any insider trading on the equities of Oando, which could give some shareholders an undue advantage.
At the press briefing held today at the Radison Blu Hotel in Ikeja, Lagos, Mr Ajudua said, “We agree that SEC has to do its part, by conducting the forensic audit, but they have to help us by lifting this technical suspension.”
“We appeal to President Muhammadu Buhari to intervene in the matter this afternoon,” he said at the briefing.
Last month, some shareholders of the firm under the aegis of Proactive Shareholders Association of Nigeria (PSAN) and Trusted Shareholders’ Association (TSA) staged a protest in Abuja, asking the apex capital market regulator to immediately kick off the audit.
The aggrieved investors also called for the immediate suspension of the management of Oando so as to allow an unhindered process.
The Oando crisis started when two key shareholders of the firm wrote petitions to SEC, alleging management of gross financial misconduct.
The two shareholders were Mr Dahiru Mangal and Ansbury Incorporated. Their petitions led to the suspension of Oando shares.
However, on Sunday, January 7, 2018, the Emir of Kano, Muhammadu Sanusi II, brokered a peace between Oando Plc’s group chief executive, Mr Adewale Tinubu, and Mr Dahiru Mangal.
Mr Mangal owns 17.9 percent share capital of Oando Plc and as part of the peace deal brokered by the Emir of Kano, Mr Muhammadu Sanusi, there would be consideration for Mr Mangal to have a representation on the Board of Oando subject to the provisions of relevant regulatory guidelines.
Days after the truce, the management of Oando Plc announced the appointment of Mr Bukar Aji as a Non-Executive Director.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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