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Economy & Politics

Official: SEC Approved List Of 32 Stocks That You Can Buy With Margin Loans

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By the way this list excludes Banks. I hope to review modalities for this loans once I get details. However, I do not like margin loans because of the systemic risk in can cause despite its obvious good intentions. It has its advantages but to creating a debt driven bridge between demand and supply is not always the solution to sustaining market lulls. Here is the story including the list I culled from Thisday

In move to forestall a recurrence of the 2008 stock market downturn, the Securities and Exchange Commission (SEC)  Thursday unveiled 32 securities that can be used as collateral for margin loans.

Realising that unsupervised use of margins to fund investment in listed equities contributed to the share price crash in 2008, the SEC and Central Bank of Nigeria (CBN) introduced a set of rules to regulate margin lending going forward. 

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Unveiling the list of securities that can be used for margin loan facilities,   SEC said the list is not an investment recommendation but rather a guide to those who wish to engage in margin activities.

 

The approved 32  securities include: Ashaka Cement Plc, Cadbury Nigeria  Plc, Conoil Nigeria Plc, Custodian and Allied Insurance Plc, Dangote Cement Plc,  Dangote Flour Mills Plc,  Dangote Sugar Refinery Plc, Fidson Healthcare Plc, Flour Mills Nigeria Plc, Glaxo Smithkline Consumer Plc, Guinness Nigeria Plc, Honeywell Flour Mill Plc,  International Breweries Plc, Julius Berger Plc.

 

Others are: Lafarge Cement WAPCO Nigeria Plc, Livestock Feeds Plc, Mansard Insurance Plc; Mobil Oil Nigeria Plc, National Salt Company Nigeria Plc, Nestle Nigeria Plc, Nigerian Aviation Handling Plc; Nigerian Breweries Plc, Oando Plc, Okomu Oil Palm Plc, P Z Cussons Nigeria Plc,  Presco Plc, Seven-up Bottling Company Plc, Total Nigeria Plc, Trans National Corporation Plc, UACN Property Development Plc, Unilever Nigeria Plc, and UAC of Nigeria Plc    

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SEC Names 32 Securities for Margin Loans

Patricia

Ugo Obi-chukwu "Ugodre" is a chartered accountant with over 16 years experience in financial management, corporate finance and financial analysis. He is also a retail investor and a personal finance advocate with over a decade experience investing in the Nigerian stock market. Ugo is the founder/Publisher of Nairametrics and blogs regularly on the website.

2 Comments

2 Comments

  1. stockbull

    June 16, 2013 at 10:51 pm

    a strategy to boost the market and achieve the 2016 market cap goal. Thank God the banks are not enlisted.i know what it may cause.

    • Admin

      June 17, 2013 at 10:48 am

      As in, Thank God oh. This is just a recipe for disaster. Why not encourage companies like MTN, Globacom and even NNPC to list

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Economy & Politics

FAAN denies allegation of stolen N750 million, admits breach of procurement process

FAAN says that the accusation of the theft was just a low and unsubstantiated blow.

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FAAN reacts to release of guideline for resumption of flight operations post covid-19, FAAN releases new guidelines for post covid-19 flight operations

The Federal Airport Authority of Nigeria (FAAN), has denied allegations of stolen N750 million from its coffers, as alleged by an online medium. The aviation agency, while describing the allegations as entirely false, said that no funds to the tune of N750 million were approved or even went missing due to fraudulent contracts, as alleged.

This was disclosed in a series of tweet posts by FAAN, through its official Twitter handle on Thursday, July 30, 2020.

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An online medium had reported a stolen N750 million, following a fraudulent contract scheme that may have indicted top staff of FAAN. However, while speaking under conditions of anonymity, a highly-placed source within FAAN stated that the only procurement issue that was identified happened in February 2020.

According to tweet posts from FAAN, “Allegations of a stolen N750 million from the coffers of the Federal Airports Authority of Nigeria (FAAN) is entirely wrong, as no funds to the tune of any amount were approved or ever went missing due to a fraudulent contract.

READ MORE: FAAN now manages Murtala Muhammed International Airport’s toll gate 

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‘’The Managing Director himself, discovered and queried some procurement documents in February 2020. When the answers to the queries were found unsatisfactory, an investigation was launched, the staff involved were suspended, and later replaced in their official capacities.

‘’The recommendations of the management investigation were forwarded to the Federal Ministry of Aviation in June 2020. All this is fully documented and in line with federal civil service procedures.’

The statement also pointed out that some of the names being bandied around had no role in the failed procurement process. It encouraged investigative reporters to cross-check their stories and get factual information instead of smearing innocent people and settling personal scores.

READ MORE: FG pays doctors’ N15.8 billion hazard allowance

The statement from FAAN says that the accusation of theft was just a ‘low and unsubstantiated blow’ that could have been better clarified instead of going all the way to run the organization down. It also reiterated that a failed attempt to undermine the integrity of the procurement process, is not a theft, just as there was never any theft.

Also speaking on the issue of half salary to members of staff as was also reported by the online medium, a source in FAAN said due to paucity of funds, management decided to ease the burden of expenditure for all staff in view of the big Sallah on Friday by paying half salary to all senior staff only, with the balance to be paid next week.

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All FAAN junior staff were paid their full 100% salaries (that is GLs 1-7). It also stated that a notice to this effect was on all FAAN staff platforms since yesterday and the unions later got to know of it.

READ ALSO: UPDATED: Nigeria Inflation rate hits 12.2% as food index rises

An online media report had alleged that some top officials of FAAN and some of their children had conspired to steal N750 million from the aviation agency by re-awarding old contracts that had earlier been awarded by the Aviation Minister, Hadi Sirika.

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They alleged that the fraud was carried out by staff of the procurement department with the help of officials of the account and audit departments.

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Economy & Politics

Lagos sets up N1 billion seed capital for hospitality sector, rolls out optical fibre across the state

Sanwo-Olu said that this seed capital will be domiciled in the Lagos State Employment Trust Fund.

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COVID-19: Lagos State to begin curfew on Sunday to disinfect metropolis, Lagos state government discharges 7 more coronavirus patients, Lagos state will reverse to full lockdown, Sanwo-Olu to virtually inaugurate projects as he presents scorecard of first year in office, Lekki regional road: Sanwo-Olu revokes land titles of Elegushi Royal family

The Lagos State Governor, Babajide Sanwo-Olu, has announced the approval of a N1 billion seed capital for investment in the tourism and hospitality sector in the state. The N1 billion seed capital is to help drive new growth in that sector

This was announced during his meeting with business leaders in the state, at an event tagged, ‘BOS Meets Business,’ which was held at the Banquet Hall in the State House, Alausa Ikeja.

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The Governor said that the investment was needed to support/strengthen the hospitality sector by providing key operators in the tourism business with soft loans to boost their capacity in driving growth. The governor said the initiative is necessary to position the tourism business as a new frontier for job creation and economic prosperity in the post Coronavirus era.

READ ALSO: A look at projects in Lagos State that may suffer after Ambode’s exit

Sanwo-Olu said that this seed capital will be domiciled in the Lagos State Employment Trust Fund (LSETF), adding that the funds will be made available specifically to Micro, Small and Medium (MSMEs) operators in the sector

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The Governor also said that the Lagos State Government would be collaborating with the Central Bank of Nigeria (CBN) to further create access to funds to support the hospitality business.

Meanwhile, Governor Sanwo-Olu further disclosed that the state has concluded arrangements to provide technological infrastructure to support MSMEs by commencing installation of the first phase of the 6,000km optical fibre across the state.

READ ALSO: Lagos State Government orders building owners to conduct structural stability tests

He pointed out that the state had continued to improve on its ease of doing business policies to drive private investment and economic growth. This he said is made possible by the digitization of business registration and asset acquisition processes, which has removed administrative bottlenecks.

“We have just given approval for N1 billion support that will be given out through the Lagos State Employment Trust Fund to support hospitality business in the State. The beneficiaries of this fund will go through screening in line with the requirement of the agency. We are making this investment because of the huge potential for job creation and inclusive growth this sector can bring about.’

“We will be working with the CBN for more funding to fully develop the potential of our tourism sector. This effort is being completed with the rolling out of 3,000 km optical fibre across the State to provide technological infrastructure for the MSMEs whose operations would depend on fast Internet networks to drive their businesses,” the Governor said.

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He said this is the time for Lagos state to strengthen its economy which has a GDP valued at $130 billion and over 3 million MSMEs. The strengthening will come in the form of good policies for accelerated growth and prosperity. He also noted that the state is the 4th wealthiest city in Africa.

This policy and incentive for the hospitality sector by the Lagos State government will come as a huge relief for the small and medium scale operators in the industry which has been one of the worst-hit by the Coronavirus pandemic.

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READ ALSO: You can now track loans on LSETF website

The businesses in the sector have witnessed a lot of shutdown with loss of revenue and laying off of staff.

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Business

Lagos announces incentives as it reviews land use charge, reconsiders dusk-to-dawn curfew

The governor offered a 25% discount for those who make early payment of the land use.

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LAND USE CHARGE, Lekki sealed buildings, Lagos state governor issues new guidelines for lockdown, consider full reopening of its economy

The Lagos State Governor, Babajide Sanwo-Olu, has announced some incentives for Lagosians, especially corporate organizations, for payment of Land Use Charge.

The Governor said that the repeal of 2018 laws on Land Use Charge was to further create incentives for more growth in the corporate sector. He stressed that the new Land Use laws had addressed controversial provisions and removed ambiguity in the levies paid by companies in Lagos.

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This was disclosed by the Governor during an event, ‘BOS meets Business,’ which was attended by the captains of industry, manufacturers, and members of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

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During the event, the Governor also announced the granting of a 3-year waiver on penalty for those that defaulted in the payment of land use charge from 2019. He also offered a 25% discount for those who make early payment of the land use. Sanwo-Olu said:

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We are granting a waiver of three years in late payment, which covers 2017, 2018 and 2019. We are also giving 25 per cent special discount on early payment. By this, we have achieved a 48 per cent reduction for businesses in chargeable rates by repealing the 2018 Land Use Laws.

“We are taking these steps to show that we are not being insensitive to the plight of businesses and residents, especially in this period of pandemic that have slowed down activities. We have been doing everything possible to make sure businesses are not choked by taxes.”

READ: CBN discloses ongoing plans to create housing funds for developers

The Governor further disclosed that there will be a review of the dusk-to-dawn curfew imposed in the state by the federal government in response to requests by businesses across the state. According to him, the ongoing rehabilitation of major bridges and roads had impacted negatively on business activities in the state.

READ: Lagos introduces Dropbox facility for land documentation

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He urged the business leaders and the MSMEs operators to see his administration as a real partner in driving growth while assuring them that the government would continue to introduce more incentives to strengthen its partnership with the private sector. This is to help keep the Lagos economy on the path of growth.

In their own response, representatives of corporate organizations praised the efforts of the Governor in the reviews of the Land Use Laws. They, however, called for the harmonization of taxes and levies payable to the Government.

The Deputy President of Lagos Chamber of Commerce and Industry (LCCI), Chief Olawale Cole, also praised the State Government for the 3-month moratorium given to MSMEs in the payment of Land Use Charge, noting that the incentive would stimulate more commitment in the sector.

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READ: Ripple payment now operational in U.S, 22 geopolitical regions

The Commissioner for Commerce, Industry and Corporative, Dr. Lola Akande, while also speaking at the event, noted that Lagos Government had taken steps since the last meeting with the Organized Private Sector to sustain the momentum of growth. She said:

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We recognize that creating an enabling business environment is the key to job creation, poverty eradication and growth of the State economy. Lagos State is positioned to support businesses and industrial sector to maximize their potential for greater contribution to the State’s GDP.”

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