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[DEMATERIALIZATION] CSCS Confirms Paper Share Certificates Will Soon Be A Thing Of The Past

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The Central Securities Clearing System Plc has reiterated its commitment towards full dematerialization of share certificates in the Nigerian Capital Market. This was made known at a stakeholder’s meeting held in Lagos recently where the issue of shares migration was discussed.

Earlier, the Managing Director of CSCS Plc, Mr. Kyari Bukar had stressed the need for investors to embrace the exercise saying that full dematerialization of share certificates has come to stay while emphasizing that it will promote transparency in the market, enhance investors’ confidence and further internationalize the capital market.

The system of issuing share certificates had posed a myriad of problems such as delay in issuance and dispatch of certificates, delay in verification of share certificates, loss, theft and forgeries of share certificates respectively. With a view to addressing these problems, the Securities and Exchange Commission (SEC) had issued a directive that all share certificates should be fully dematerialized in line with its vision to rid the market of certificate losses and associated challenges.

Speaking at the event, Mr. Joe Mekiliuwa, General Manager, Operations at CSCS Plc said that full dematerialization will ensure total elimination of physical share certificates or documents of title which represent ownership of securities and convert these share certificates into electronic book entries.

According to Mekiliuwa, “at full dematerialization of shares of a company, all existing shares certificates hitherto not dematerialized are electronically lodged into CSCS under the umbrella of the relevant registrars in the account of the investors thereby maintaining the electronic copy in CSCS for control purposes”.

While assuring participants at the event that CSCS’ Management is dedicated towards supporting the objectives of full dematerialization, Mekiliuwa went further to list its other benefits to include amongst others the elimination of risk arising from loss or theft of certificates, speedy processing of offers and bonuses for direct credit of shares into investors’ accounts, increase in trade volumes, elimination of bottlenecks experienced during share certificate verification.

Investors are enjoined to collect migration form from any registrar or stockbroking firm or simply download the form from the website of CSCS, Securities and Exchange Commission (SEC), and Nigerian Stock Exchange (NSE); fill the forms and submit same to the stockbroking firm they have chosen for onward transmission to their registrar and final migration to their accounts with brokers. Mekiliuwa allayed fears of investors by assuring them that the steps towards completing the process of full dematerialization is without any hassles and that they should avail themselves of this opportunity and the benefits it offers.

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

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Coronavirus

COVID-19 Update in Nigeria

On the 5th of March 2021, 371 new confirmed cases and 3 deaths were recorded in Nigeria

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Covid 19 update symptops

The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 158,042 confirmed cases.

On the 5th of March 2021, 371 new confirmed cases and 3 deaths were recorded in Nigeria.

To date, 158,042 cases have been confirmed, 137,025 cases have been discharged and 1,954 deaths have been recorded in 36 states and the Federal Capital Territory.

A total of 1.54 million tests have been carried out as of March 5th, 2021 compared to 1.49 million tests a day earlier.

COVID-19 Case Updates- 5th March 2021,

  • Total Number of Cases – 158,042
  • Total Number Discharged – 137,025
  • Total Deaths – 1,954
  • Total Tests Carried out – 1,544,008

According to the NCDC, the 371 new cases are reported from 20 states- Lagos (101), Rivers (54), Anambra (31), Ebonyi (23), Imo (23), Kwara (22), Kano (20), Taraba (17), Akwa Ibom (16), FCT (15), Abia (13), Kaduna (13), Osun (5), Edo (4), Oyo (4), Kebbi (3), Ogun (3), Ekiti (2), Nasarawa (1), and Zamfara (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 56,374, followed by Abuja (19,328), Plateau (8,939), Kaduna (8,623),  Oyo (6,761), Rivers (6,651), Edo (4,645), Ogun (4,419), Kano (3,830), Ondo (3,066), Kwara (2,953), Delta (2,582), Osun (2,449), Nasarawa (2,248), Enugu (2,078), Katsina (2,060), Gombe (2,010), Ebonyi (1,951), Anambra (1,811), Akwa Ibom (1,588), and Abia (1,568).

Imo State has recorded 1,551 cases, Borno (1,297), Bauchi (1,232), Benue (1,188), Adamawa (942), Niger (917), Taraba (863), Ekiti (825), Bayelsa (779), Sokoto (769), Jigawa (496), Kebbi (401), Cross River (334), Yobe (288), Zamfara (221), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

Governor Babajide Sanwo-Olu of Lagos State announced the closed down of the Eti-Osa Isolation Centre, with effect from Friday, 31st July 2020. He also mentioned that the Agidingbi Isolation Centre would also be closed and the patients relocated to a large capacity centre.

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Due to the increased number of covid-19 cases in Nigeria, the Nigerian government ordered the reopening of Isolation and treatment centres in the country on Thursday, 10th December 2020.

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On 26th January 2021, the Federal Government announced the extension of the guidelines of phase 3 of the eased lockdown by one month following the rising cases of the coronavirus disease in the country and the expiration of phase 3 of the eased lockdown.

On 28th February 2021, the federal government confirmed that the first tranche of Covid-19 vaccines will arrive in Nigeria on Tuesday, March 2nd, 2021.

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READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

 

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Business

 Onitsha River Port set to receive 1000 containers from Lagos next week

The National Inland Water Ways Authority says1000 containers from Lagos will arrive Onitsha river port.

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 Onitsha River Port Set To Receive 1000 Containers from Lagos Next Week

The National Inland Water Ways Authority has made public its intention to move 1000 containers from Lagos to Onitsha river port.

The statement was made on Thursday by Jibril Dardau the NIWA general manager of Corporate Affairs.

Mr. Jibril Dardau was speaking of the backdrop of an earlier statement made by the executive director of NIWA Mr. George Moughalu. Mr. George Moughalu said the agency is targeting about 1,000 containers to be hauled per trip from Lagos ports to Onitsha River Port within the maximum duration of 4 days.

Moghalu added that NIWA is engaging the Nigeria Ports Authority (NPA) and other stakeholders to facilitate the commencement of the cargo haulage.

NIWA in an official statement articulated the practical modalities involved in the new initiative. It also mentioned the third party companies it would work it during the operation.

“The idea of hauling containers via Burutu Ports to Onitsha River Port is to deliberately avoid the two small bridges of Gbarekolo and Bumandi,

“Because the two bridges are too tiny and shallow for sea moving badges or vessels to ply through, that is why the company (ACTL) is considering the route from Lagos ports to Burutu Port then to Onitsha River Port as the final destination,” the statement added.

What to know

  • The Recent initiative by the National Inland Waterways Authority is aimed at reducing the gridlock at the Sea Ports in Lagos.
  • The Nigerian Government has been accused of intentionally marginalizing the Southeast region by neglecting their Maritime sector.

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