Economy
Stanbic IBTC Showcases Investment Potentials in Nigeria
By Dipo Olowookere
Investment banking giant, Stanbic IBTC Plc, last week held a three-day conference in Lagos, where it showcased the different investment potentials in Nigeria.
The event, Standard Bank West Africa Investors’ Conference (WAIC), in its 10th edition, took place from Tuesday, September 17 to Friday, September 20, 2019 and was Prism of Possibilities.
It brought together foreign and local institutional investors, fund managers, regulators and policy makers, bankers, businessmen and captains of industry among others.
Nigeria still remains an attraction for foreign investments as the country’s economy continues to experience growth and perhaps, no organization is better positioned to host an investors’ conference than Stanbic IBTC Holdings PLC.
According to the Nigerian Capital Importation report of the National Bureau of Statistics (NBS), Stanbic IBTC Bank PLC, a subsidiary of Stanbic IBTC Holdings PLC, was responsible for 30.34 percent of the total capital inflow into the country in 2019. The bank has so far recorded $1.765 billion worth of investments this year.
Speaking at the opening ceremony, the CEO of Stanbic IBTC Bank PLC, Mr Demola Sogunle, stated that, “The West Africa Investors’ Conference serves as a veritable platform to match investors to investment opportunities. The idea is to be able to showcase the potential investments inherent in Nigeria to individual and institutional investors who are looking to invest in the different sectors in the Nigerian economy.”
The highlight of the opening day of the conference was a panel discussion on advancing FinTech frontiers in Nigeria.
According to Mr Sogunle, this year’s edition of the conference dedicated its panel session to FinTechs due to their significant role in the Nigerian economy.
“The Nigerian financial system as we know it is being disrupted with the introduction of innovative products and services. There is also the need for FinTechs to see potential areas of alignment with financial institutions.
“We hosted this panel session to create a platform for FinTechs to interact with serious minded frontier-market focused fund managers for possible areas of engagement. We also carefully chose the panelists based on their professionalism and years of expertise,” he said.
Speakers at the panel session were Akeem Lawal, Divisional CEO, Switching and Processing, Interswitch, Olugbenga Agboola, Co-Founder, Flutterwave and Iniabasi Akpan, Country Manager, O’Pay.
Interswitch’s Akeem Lawal stated that banks that don’t evolve, risk becoming extinct. He further added that 95% of financial transactions in Nigeria are still cash-based; which presents an opportunity for FinTechs and financial institutions to tap into in terms of expanding the frontiers of financial inclusion in Nigeria. He further advocated for a collaboration amongst FinTechs and financial institutions.
In his remarks, Akpan, Country Manager of O’Pay said he does not foresee a future where the rise of FinTechs will negatively impact the services of banking institutions. He however stated that banks need to be more agile in service delivery while also upgrading their infrastructure to enable seamless connectivity with FinTechs.
Gbenga Agboola, Co-Founder and CEO of Flutterwave stated that the Nigerian FinTech industry was not lacking in talent to take up roles. He added that his company, Flutterwave, has attracted skilled employees from leading banks and consultancy firms. He also reiterated the need for collaboration among FinTechs, financial institutions and telecom companies for better service delivery to customers.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Wednesday, August 5, as the market witnessed weaker trading activity with only two deals executed.
In the midweek session, the volume of securities exchanged by investors dropped 99.9 per cent to 802 units from the 1.6 million units recorded on Tuesday. The value of securities further decreased by 99.6 per cent to N208,240 from the preceding session’s N47.6 million, and the number of deals significantly went down by 93.9 per cent to two deals from the 33 deals recorded a day earlier.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 76.9 million units transacted for N5.5 billion.
GNI Plc was also the most active 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 traded for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
There were no price gainers or losers yesterday.
As a result, the market capitalisation stood unmoving at N2.739 trillion, while the NASD Security Index (NSI) remained unchanged at 4,563.96 points.
By Adedapo Adesanya
The Naira slid against the US Dollar by N2.28 or 0.17 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, August 5, to N1,363.85/$1 from N1,362.55/$1.
The local currency also declined against the Pound Sterling in the official market during the session by N5.97 to close at N1,837.38/£1 compared with Tuesday’s closing rate of N1,831.41/£1, and against the Euro, it crashed by N6.54 to quote at N1,575.25/€1 versus the preceding session’s N1,568.71/€1.
But at the black market, the Nigerian Naira traded flat against the greenback yesterday at N1,400/$1, and also remained unchanged at the GTBank FX desk at N1,373/$1.
The Central Bank of Nigeria (CBN) says rates have narrowed to below two per cent, while the country’s external reserves have risen above $52.5 billion, reflecting the impact of its ongoing monetary and foreign exchange reforms.
CBN Governor Yemi Cardoso, represented by the Acting Director of Corporate Communications and Investor Relations, Mrs Hakama Sidi-Ali, disclosed this on Tuesday during the CBN Fair in Gombe. He noted that reforms introduced since 2023 had significantly reduced the disparity between the official FX market and the parallel market.
“The Naira continues to strengthen, with the spread between official and Bureau de Change rates now below two per cent,” he said, adding that reserves at $52.5 billion were supported by sustained inflows and renewed investor confidence in the economy.
Interbank FX transactions slid as weaker market activities dropped total Dollar volume exchanged to $75.35 million, a 51.8 per cent decline from $156.23 million in turnover quoted at the previous close.
The deals at the NFEM window also fell as data from the central bank put Wednesday’s quote at 82 from 139.
In the cryptocurrency market, major were down as global risk sentiment softened as a key world equity index slipped and chipmakers fell.
The MSCI All Country World Index snapped a five-day run to fall 0.2 per cent as chipmakers retreated on both sides of the Pacific. South Korea’s Kospi, a bellwether for the AI trade, dropped 4.4 per cent.
Ripple (XRP) depleted by 1.7 per cent to $1.05, Binance Coin (BNB) decreased by 1.0 per cent to $594.87, Cardano (ADA) depreciated by 0.9 per cent to $0.1884, TRON (TRX) shrank by 0.2 per cent to $0.3261, Solana (SOL) crumbled by 0.1 per cent to $74.00, and Dogecoin (DOGE) went down by 0.1 per cent to $0.0697.
On the flip side, Ethereum (ETH) gained 2.3 per cent to trade at $1,911.41, and Bitcoin (BTC) rose by 0.8 per cent to $64,759.28, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Dipo Olowookere
The domestic stock exchange rebounded by 0.05 per cent on Wednesday on the back of renewed bargain-hunting by investors, though the level of activity waned.
After bleeding for a few days, the Nigerian Exchange (NGX) Limited heaved a sigh of relief yesterday, as the All-Share Index (ASI) gained 109.41 points to close at 244,912.24 points compared with the previous day’s 244,802.83 points, and the market capitalisation garnered N71 billion to settle at N158.087 trillion versus Tuesday’s N158.016 trillion.
Business Post reports that despite the rebound recorded by Customs Street at midweek, the market breadth index remained negative, as there were 20 price advancers and 29 price decliners, implying bearish investor sentiment.
Linkage Assurance appreciated by 9.94 per cent to N1.77, AVA Capital rose by 9.55 per cent to N10.90, Fortis Global Insurance advanced by 7.69 per cent to N2.80, McNichols gained 7.34 per cent to finish at N5.85, and Coronation Insurance surged by 5.51 per cent to N2.49.
Conversely, Honeywell Flour depreciated by 9.94 per cent to N16.30, PZ Cussons gave up 9.94 per cent to trade at N74.75, Zichis crashed by 9.74 per cent to N20.76, Learn Africa slipped by 9.62 per cent to N9.40, and Neimeth tumbled by 8.33 per cent to N8.25.
The busiest equity was FCMB, with a turnover of 369.2 million units valued at N4.1 billion. Chams transacted 46.7 million units worth N201.8 million, First Holdco transacted 43.5 million units for N5.7 billion, Access Holdings sold 29.8 million units worth N778.0 million, and Linkage Assurance exchanged 19.6 million units valued at N33.5 million.
At the close of transactions, market participants bought and sold 824.1 million units worth N25.5 billion in 48,114 deals, in contrast to the 1.6 billion units sold for N28.7 billion in 54,160 deals a day earlier, showing a shortfall in the trading volume, value, and number of deals by 48.49 per cent, 11.15 per cent, and 11.16 per cent, respectively.
