NSE Lists First Waste Management Company on ASeM

NSE CEO, Oscar Onyema says the company's admission into market puts it on a pedestal for growth and sustainability
NSE CEO, Oscar Onyema says the company’s admission into market puts it on a pedestal for growth and sustainability

The Nigerian Stock Exchange has listed its first waste management company, The Initiates PLC on the alternative securities market board.

The listing which is also the first for the local bourse this year, adds over 700 million Naira to the market capitalisation of the exchange.

889, 981, 552 ordinary shares of 50 kobo each of the company were listed at N0.85 per share by introduction on the Alternative Securities Exchange Market and Capital Limited was the lead financial adviser and the designated adviser while joint adviser on the transaction was Partnership Securities Limited.

The CEO of the Exchange, Oscar Onyema, said: “The company has successfully passed our stringent listing requirements and I commend their efforts to submit themselves to international best practices in governance.”

With this development, the NSE expects the waste management sector of the economy to start opening up.

Financial Markets Close For Holiday

Nigerian Stock Exchange, NS, Financial Market, Stock Market, Independence HolidayFinancial markets across Nigeria are closed for the country’s 56th independence holiday.

Markets had closed on Friday to reopen tomorrow, Tuesday October 4.

Before the holiday, the financial markets had closed largely bearish but marginal gains were recorded in the equity market.

The last trading in September ended marginally positive as the all share index and market capitalisation rose further by more than a quarter of a percent, on the back of price advance by some mid-cap stocks.

However, market breadth was negative with 16 gainers against 22 losers on the price table.

The top three gainers for the day were Pharmadeko, NAHCO and Honeywell Flour Mills while Caverton, Nothern Nigeria Flour Mills and Conoil were the three most significant decliners.

Nigerian Stock Exchange, NS, Financial Market, Stock Market, Independence Holiday

Friday’s transaction was lower than the previous session, as it recorded a total turnover of 217.8 million shares worth 2.38 billion naira in 2,804 deals.

The most traded stocks were banking giants, Ecobank Transnational Incorporated, FCMB and Zenith Bank.

Research analysts believe that markets direction will be shaped by the third quarter numbers this week as yields in the local bonds market tend to inch higher.

Meanwhile, the Central Bank plans to auction 135.7-billion-naira worth of treasury bills on Wednesday with a view to curb speculations against the naira at the foreign exchange market as well as inflation.

Oando Signs $115.8mn Agreement With Helios   

OandoOando Plc has signed a mid-stream agreement with Helios Investment Partners, a premier Africa-focused private investment firm, to acquire 49% of the voting rights in Oando’s mid-stream business subsidiary, Oando Gas and Power Limited.

Oando will still retain 49 percent of voting rights in Oando Gas and Power Limited while the remaining two percent will be held by a local entity.

In a statement to the Nigerian Stock Exchange, the group explained that the agreed transaction consideration of 115.8 million dollars is conditional upon receipt of regulatory approvals and subject to customary purchase price adjustments.

According to the oil group’s Chief Executive, Wale Tinubu, this strategic alliance will firmly leverage the group’s local knowledge and expertise alongside Helios’ strong financial capabilities to revolutionize the sector and position gas as a key driver for Nigeria’s economic empowerment.

NSE Releases 2015 Sustainability Report, Adopts GRI G4 Reporting Guidleines

Nigerian Stock ExchangeThe Nigerian Stock Exchange has released its 2015 Sustainability Report titled “Ushering in a new era of sustainability in the Nigerian market place”.

The report, the second edition, demonstrates how The Exchange showcases the importance of sustainable business practices in delivering value and supporting economic growth.

The report, which is in accordance to the Global Reporting Initiative G4 Guidelines aligns with the Exchange’s Corporate Social Responsibility framework.

The NSE, in a statement on Monday highlights the four key impact areas it has devoted attention and resources:

Market Place

The NSE promotes market-based approach to Environmental, Social and Governance (ESG) imperatives amongst all stakeholders. Our major achievements include:

  • Assessed and rated all companies on the premium board using the Corporate Governance Rating System
  • Executed advanced capital market awareness programme in over 50 Nigerian tertiary institutions

Community

The NSE makes positive contributions to the communities where we live and work. Key progress recorded are:

  • Implemented 172 Financial Literacy programmes across the nation, reaching 15,000 people
  • Launched Adopt-A-School Programme at Oke-Odo High School, Lagos. Under the pilot scheme, 52 teachers were trained on soft skills, information & communication technology and financial intelligence; 250 students participated in career workshop; and a Learning and Development Centre was donated to the school.
  • 50 Federal and State Universities benefitted from a book donation progamme
  • Organised the 2nd edition of the NSE Corporate Challenge with over 500 runners and over 27 million impressions on Twitter
  • Held a Closing Gong ceremony in March 2015 to commemorate International Women’s Day in partnership with SSE Initiative, United Nations Global Compact

Workplace

As a responsible employer, The NSE fosters engaging and high performing work environment that facilitates diversity, wellbeing and development of our people. During this period,

  • The CSR Champions Network and Employee Volunteering Scheme was launched and 21% of employees signed up for the Employee Volunteering programme
  • Employees at all levels participated in 93 training and development programmes

Environment

The NSE is committed to reducing the impact of its operations on the environment. Through an environmental management approach, the Exchange has been able to:

  • Achieve 70% of lighting load reduction and 20% overall energy savings, translating to 1,392,717 kilowatts saved from July to December, 2015
  • Recycle 8% of waste generated at the NSE

 

Commenting on the report, the Chief Executive Officer of The Nigerian Stock Exchange (NSE), Mr Oscar Onyema, said, “As we strive to create durable wealth for our stakeholders, the NSE continues to highlight the importance of sustainable business practices in delivering value and supporting economic growth.

“In 2015, we continued the holistic implementation and integration of the NSE Corporate Sustainability Strategy into our day-to-day operations, in order to effectively manage risks and business development opportunities.

“While we are pleased to report that we have held ourselves accountable to the highest standards, we are also intensifying our advocacy efforts to support the integration of the Environmental, Social and Governance (ESG) imperatives in the Nigerian capital market.”

The achievements of The Nigerian Stock Exchange are not lost on key local and international observers.

The Exchange received four awards in 2015 in recognition of its game changing initiatives in promoting ESG and transparency and they are:

African Regulator of the Year Award

Award for promoting best practice reporting and corporate disclosure

Financial Institution of the Year

Best Corporate Social Responsibility Award

The 2016 Sustainability Report can be downloaded from the Exchange’s website on www.nse.com.ng.

PENCOM DG, 2 Others Appointed Members of LSE Africa Advisory Group

PENCOM DGThe Director-General of the National Pension Commission (PENCOM), Mrs. Chinelo Anohu-Amazu, has been appointed pioneer member of the London Stock Exchange Africa Advisory Group.

Mrs. Anohu-Amazu is one of the high-level financial experts from the African continent appointed by the respected London Stock Exchange to provide advisory services on how best to deepen the African Financial markets.

The Group was unveiled at the just-concluded inaugural meeting of the advisory body hosted by the London Stock Exchange in London.

Also appointed were members drawn from the three largest stock exchanges in Sub-Saharan Africa, namely the Johannesburg Stock Exchange, Nigerian Stock Exchange and Nairobi Securities Exchange.

Among them are the Chief Executive Officer of the Nigerian Stock Exchange, Mr. Oscar Onyema and the Chairman of Seplat Petroleum Development Company, Dr. Ambrose Bryant Chukwueloka Ojiako.

The Johannesburg Stock Exchange, Nigerian Stock Exchange, and Nairobi Securities Exchange account for approximately 80 percent of the market capitalization of public securities in Africa.

However, the development of other stock exchanges, including the top three exchanges, in Sub-Sahara Africa have remained stunted by several factors impacting capital markets, such as low financial depth, high cost of raising capital, patchy liquidity, high market risk, and mutual status.

The PENCOM DG and other members of the Advisory Group are, therefore, expected to continually examine these issues and proffer advise that would hopefully change the narrative for the African capital markets for the better.

Senate Reveals New Fine Proposal Between MTN And FG

MTNThe Senate Committee on Communications has revealed an ongoing N300 billion proposal between MTN and the Attorney-General of the Federation and Minister of Justice, Mr Abubakar Malami, over the N780 billion fine imposed on the network by Nigeria Communications Commission (NCC).

At an investigative hearing in the National Assembly, the Vice Chairman of the committee, Senator Adeola Olamilekan, produced a proposal by MTN where the network provider insisted that it could only pay the total of N300 billion out of the N780 billion fine imposed.

The breakdown of the proposal, which was forwarded to the ministers of communications and finance by the solicitor-general as well as NCC Executive Vice Chairman, Professor Umar Dambatta, consists of a N50 billion already paid by MTN into a recovery account of the Central Bank of Nigeria in good faith and another N100 billion to be paid via electronic transfer between December 31, 2016 to December 31, 2020.

The Vice Chairman of the Committee, Senator Adeola Olamilekan, expressed concern that the Attorney General of the Federation and the Presidency kept NCC and the Minister of Communications in the dark in the negotiations with MTN over the fine.

 

MTN Denies Plan To List On NSE

MTNSouth African telecoms giant, MTN Group, says it has no plans to list its Nigerian unit on the Nigerian Stock Exchange.

This is coming against the backdrop of expectations that MTN Nigeria would get listed on the NSE once it resolves the disputed 780 billion naira fine with the Nigerian Communications Commission (NCC).

In a statement issued by the telecom giant’s Corporate Affairs Executive, Chris Maroleng, the group described the reports as untrue.

Mr Maroleng further stated that the listing of MTN Nigeria remains a consideration and not a planned listing, as suggested in some of the media reports

Reports had suggested that the only thing stopping the group from listing in Nigeria was the 780 billion Naira penalty imposed on it for failing to comply with directives from the NCC to disconnect 5.1 million unregistered sim cards, and was planning to list as soon as the matter was resolved.

Guinness Lists Commercial Papers

GuinnessGuinness Nigeria, a subsidiary of U.K. Based firm, Diageo plans to list 10 billion naira short-term debt instrument on February 18 on the FMDQ OTC securities exchange.

In a statement to the Nigerian Stock Exchange, the brewery company explained it will list 7.23 billion naira in series 2 paper and 2.77 billion naira series 3 commercial papers.

This comes after the successful issuance of the 182 day series 2 and the 268 day series 3 commercial papers on November 4, 2015, the first by a non-financial institution.

NSE To Buy NASDAQ Monitoring System

NASDAQThe Nigerian Stock Exchange has announced plans to acquire Nasdaq’s smarts market surveillance platform to power their compliance programme..

In a statement released by the local bourse on Thursday, the NSE explained that the technology will help with the provision of surveillance expertise to protect the market from manipulation.

The General Counsel and Head of Regulation at the NSE, Ms Tinu Awe said that this move would ensure the protection of investors as well as monitor the increasing complexity of trading activities at the markets.

In 2013, the Nigerian Stock Exchange migrated to the NASDAQ X-Stream trading platform which is the fastest trading engine in Africa.

Aliko Dangote Resigns From Dangote Flour  

Aliko DangoteAliko Dangote, Africa’s richest man, on Tuesday resigned from the board of Dangote Flour Mills after South African firm, Tiger Brands announced it was withdrawing funding from the flour and pasta producer.

Mr Dangote resigned alongside three other Directors; Olakunle Alake, Asue Ighodalo and Arnold Ekpe immediately after the announcement.

Tiger Brands in an interim announcement to the Nigerian Stock Exchange, explained that the company has reached a decision not to provide any further financial support with respect to its investment in tiger branded consumer goods.

It is currently exploring various alternatives with regard to its investment in the company.

Shareholders have been advised to exercise caution when dealing in the company’s securities until a further announcement is released.”

According to Reuters, Tiger Brands has not made money from Dangote Flour Mills (DFM) since paying nearly $200 million for a 65 percent stake in the firm back in 2012.

Aliko Dangote holds 10 percent of the company’s equity.

Power Companies Can Raise Funds From Capital Market – Nebo

Chinedu-Nebo-ProfThe Nigerian Minister of Power, Professor Chinedu Nebo, says power companies can approach the capital market to raise substantial funds to support growth despite an earlier agreement stopping them from doing so.

The Minister made the comment on Friday at the Nigerian Stock Exchange, where he rang the closing bell.

In an agreement between the Nigerian government and the power companies, during the unbundling of the Power Holding Company of Nigeria, the companies are not expected to approach the capital market for fund raising until after five years of purchasing the asset of the PHCN from the government.

The companies have been facing financial issues since the purchase of the assets and the Minister’s statement has opened the possibilities that the companies may soon approach the capital market to raise needed funds in order to develop the power sector.

Not Cast In Stone

Professor Nebo explained that the reason the new power companies might need the capital market despite the restrictions on listing within the first five years, was because of the needed development in the sector, which is expected to be rapid.

He said: “The capital market is one veritable means of getting funds for these new power companies that bought the assets of the Federal Government of Nigeria under the former Power Holding Company of Nigeria and those that are burying the assets of the NIPP project.

“The capital market will enable them to bridge the financial gap that and help them to realise, consolidate what they have acquired and grow it substantially.

“There was a clause in the agreement between the Federal Government and the companies that bought the assets that they will not list until after five years because the government wants to be sure that only serious minded people buy the assets but the agreement is not cast in stone”.

The Minister said that the companies could raise an alarm that they needed to be supported by the capital market in order to get much better affordable financing to meet their goals.

 

Book Club Features Professor Herbert Orji, Tade Ipadeola, Molara Wood

channels book clubThis edition of Channels Book Club features the book presentation by professor Herbert Orji, which held in Lagos.

Professor Orji is the Chairman of the Nigerian Broadcasting Commission and board member of the Nigerian Stock Exchange.

His book, Platinum Essays in the Philosophy of Applied Economics of Development is one those with interest in economic policies should pick up.

Also, we feature an interview with Tade Ipadeola, winner of the Nigeria Prize For Science and the Nigeria Prize for Literature award.

This episode closes with an interview with Molara Wood, the author of Indigo, a collection of short stories. She won the inaugural John La Rose Memorial Short Story Competition, and received an award from the Commonwealth Broadcasting Association for her fiction.

She is also a very much respected journalist, essayist and critic. We caught up with her to discuss her works, her new book and a few things personal.