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Corporate News roundup for the week ended November 18, 2017

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This Corporate News Compilation for the week ended November, 18th 2017 is brought to you by Bluechip Technology Ltd Nigeria.

  1. Nigeria’s FinTech Company, Kudimoney reported that it was named among the Top 50 Digital Bank’s list, one of the only 2 African Fintech companies that made the cut. The list was drawn up by Financial IT magazine, a leading publication in global FinTech, Artificial Intelligence, Digital Banking and Blockchain. The list, to our surprise leaves out Wema Bank’s Alat which is also a notable Fintech product from Nigeria. The Magazine did explain that its ranking of digital banks is largely subjective. It claims, “it is based on three criteria: media coverage of the digital bank in question; apparent numbers of employees; and an assessment of the overall impact of the digital bank.” They also admitted that they may have inadvertently omitted some banks from the list. However, the Founder and Chief Executive Officer, kudimoney, Babs Ogundeyi, was nevertheless pleased with being included in the list. Kudi Money is an online platform that gives depositors attractive interest rates and uses the deposits to lend money to borrowers at competitive rates. Another, rival Fintech Company Cowry Wise offers a similar product, though using a completely different model. See the report here https://financialit.net/sites/default/files/top50_digital_banks.pdf … Image result for kudi money
  2. An Agritech company, Farmcrowdy, announced it has released its mobile app for Android, iOS and Windows mobile devices. The company which claims to be Nigeria’s first and leading digital agriculture platform, last year introduced a product that allows investors looking to invest in the Agric Sector, access farmers and “sponsor” their business in return for between 13% to 25% returns. Farmcrowdy also said it has recorded close to 1,000 unique farm sponsors, aggregated a combined 4,000 acres of farmland in Nigeria for farming purpose and grown over 150,000 organic chickens to date. It claims its sponsors are based in Nigeria, whilst 10% are located in the US and UK. On last check, the app has about 100 downloads only. Image result for farmcrowdy
  3. United Kingdom online payment facilitator, Bango, has finally made major inroads into Africa’s largest market, after it announced a deal with 9Mobile. The company will make its platform available for 9mobile platforms looking to purchase items on the Google Playstore without having to use their bank accounts or card details. By simply using 9pay, 9Mobile’s payment wallet, they purchase items on the Playstore on the back of Bango’s gateway. One thing is for sure, ease of payment is often critical to merchandising. Asking you to provide your debt cards is often one risk away of losing a potential customer.Image result for bango platform launches app for 9mobile
  4. Smile Communications announced last week that it had partnered with MediaTek to bring the latest VoLTE smartphones to customers in Nigeria, Uganda, Tanzania and the Democratic Republic of Congo (DRC). According to Smile, the 4G VoLTE is a voice technology for high-definition (HD) voice and video communications over a 4G LTE network. Compared to traditional 2G and 3G networks, VoLTE allows consumers to benefit from superior voice, video and data services on single device and a single data plan. It gives customers the choice of using their data for any service they want including voice and video, allows for faster connection of traditional calls and improves call quality. Apparently, dual SIM phones only allow calls and browsing on 4G for only one SIM, relegating the other to 2G or 3G. This service thus makes it possible for you to use your phone for both.Image result for smile network
  5. Airtel Nigeria announced it has signed a three-year contract with Ericsson to “modernize and expand its packet core network, paving the way for even faster mobile broadband services and enhanced user experience for its subscribers.” The Ericsson Evolved Packet Core and other range of solutions delivered, will provide increased reliability and scalability to the Airtel network making it even more flexible in meeting the growing demand for new services. According to the press release, it claims the Ericsson will also support enterprise services and form a secure platform for virtualization and network slicing enabling other advanced services such as 4GMassive IoT and 5G.Image result for airtel signs 3 year contract with ericsson
  6. Jumia Food introduced a new product to the Nigerian market which it called Jumia Party. The product allows party organizers to order drinks on the Jumia Food Mobile App and will get it delivered to them “within one hour”. The service is currently available only in Lekki, Ikoyi and Victoria Island in Lagos and will only allow orders starting from N10k and above. Jumia also announced it has formed a partnership with Pernod Ricard to retail all its product lines. CYDK, Pernod Ricard retails Absolut Vodka, Martell Blue Swift, Jameson, Chivas Regal, The Glenlivet, Seagram and many more.Image result for jumia party
  7. Dangote Flour Mills has sold its Noodles Unit to rival De United Foods Industries Limited (DUFIl). Dufil are the makers of the dominant Indomie noodles. The deal is said to be worth N3.75 billion or $12.26 million. Dufil Prima’s Indomie Noodles is said to have about 63% of the Noodle’s business. Aliko Dangote once sold Dangote Flour Mills to Tiber Branded for over $200m and later bought it back for $1 less than 4 years later. De United said it signed an agreement with Dangote Noodles to buy plants at its Ikorodu and Calabar factories. It would also “buy stock” worth N383.94 million.Image result for dangote flour mill sells
  8. Remember Maltonic? Well, the Malt drink that once gave Maltina and Malta Guinness competition is back after a six year hiatus. The product disappeared after its maker, Sona Breweries was sold to Nigeria Breweries in 2011. However, its new owners, Euro Global Foods and Distilleries Limited have decided to bring it back into the market. Euroglobal currently manufactures value brand spirits such as Czar Vodka and Power Bitters. Last April they announced they had completed a critical phase of its N3 billion Ethanol plant. The plant is supposed to help them boost its local production.Image result for euro Global Foods and Distilleries Limited
  9. Looks like another company has decided to take a shot at the Auto Clinic space. http://Mechville.com, an online platform which claims to be dedicated to connecting car owners with auto technicians, ‘debuted’ in Lagos last week. The company claims if you have a car problem and looking for the right mechanic to fix it, all you need to do is log into their website register, log in your complain and they will match you with the right mechanic. They claim users can assess mechanics via ratings and comments by other users. The app is owned by a company called Partboyz Auto Parts Limited. They also claim to have over 50 certified auto technicians on the platform, with competitive charges. They don’t have a mobile app yet.
  10. Vlisco Group, the Dutch textile and design company revealed that it is proposing to establish a cotton textile factory in Nigeria. They made this known in a visit to the Minister of Finance, Mrs. Kemi Adeosun. The Chief Executive Officer of Vlisco Group, Mr. David Suddens, who led the group’s delegation to the meeting with Minister, said the investment would boost growth and jobs in Nigeria across the entire value-chain from cotton to fashion. The Group also said is participating across the sector value chain from sourcing of cotton, textile printing, wholesale, retail and e-commerce distribution, garment manufacturing and supporting and training of Nigerian fashion designers. Vlisco dominates the fabric business in Nigeria and has shops spread across strategic locations in the country, marketing its products. About time they establish a factory here.Image result for vlisco nigeria
  11. In another good news to the auto sector, The CFAO Group last Thursday announced that it has inaugurated a Fuso truck assembly plant in Lagos in conjunction with Mitsubishi Fuso Truck and Bus Corporation. The plant is the 6th in Africa and will roll out about 500 units of in a year. The 2017 versiion of this truck cost about $43k.Image result for cfao motors nigeria
  12. Nigeria’s Diaper War seems to have a new winner, if the latest report by AC Nielsen is to be believed. According to the report, Molfix has taken a 44% share of the market in just 2 years after Hayat Kimya (its maker) made entry into the Nigerian market. The report claims, Moflix has overtaken Pampers (now 37%) as market leader with Huggies, Nice Baby, Dr. Brown, Dry Love, Little Angel and other brands have been pushed to a combined market-share of 18.4%. It claimed it was able to achieve this feat due to its backward integration activities forcing competitors into a price war. The company invested about $100 million into production, erecting an ultramodern diaper/tissue factory in Agbara Industrial Layout, Ogun State. Another possible reason could also be exchange rate challenges which have made imported diapers more expensive and out of reach for most families.Image result for molfix diapers wins diaper war
  13. Another Startup, http://Despatch.com.ng has entered into the delivery space after it launched its website last week. The company is founded by the quartet of OwadaraAdekunle, Odugbesan Abimbola, Sogo Dasilva and Seun Adeleke, and will cater for individuals and businesses operating in the country. This is one space with huge opportunities and it is not clear if we have a clear winner yet. One of their biggest competitors will have to be Venture backed GIG Logistics. Strangely, they both seem to share the same delivery guy on their respective websites.Image result for despatch.com.ng
  14. Nigeria’s leading insurance company, Leadway Assurance launched a Franchisee program last where it hopes anyone interested in selling insurance can explore. They called it the Revolupreneur scheme and explained it’s their own way of creating opportunities for the youth to create wealth. Bottom line here is, this is purely a marketing scheme as you basically sell insurance for them and earn a commission in return. At least you don’t get deceived into writing test and interviews only to be thrown into the wild as an insurance sales person.Image result for leadway assurance
  15. Looks like depositors are not the only ones caught up in the Heritage Bank quagmire. The, Managing Director, NPA, Hadiza Usman, $21.3m of Federal Government’s funds held for the Nigerian Ports Authority by Heritage Bank had been trapped in the vault of the lender since 2016. She mentioned this to the House of Representatives in Abuja on Wednesday.Image result for heritage bank
  16. All On, an independent impact investing company, has made its first set of transactions it said is “aimed at facilitating increased access to affordable, reliable and sustainable energy sources for low income households, SME’s, and communities.” It is supported with funding from Royal Dutch Shell. All On also said it works with partners to increase access to alternative electricity products aimed at “under-served and un-served off-grid energy markets in Nigeria, with a special focus on the Niger Delta.” The initial investments include an equity investment in Lumos Global BV and a grant to Nigerian tech ideation incubator, Co-Creation Hub, to launch a challenge to engage Nigeria’s technology innovation ecosystem in the access to energy space. The company seems to be funding any effort aimed at providing alternative off grid energy sources. Not sure this is the solution to Nigeria’s power problems as it doesn’t provide enough electricity to power industrialization.Image result for All On independent impact investing company

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CFOs of FUGAZ and their 3-year performance record

CFO is to ensure that the company is highly profitable so that no matter how high it’s share price might be, if listed on the floor of the Nigerian Stock Exchange, it would still be termed undervalued.

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Among many executive positions in an organisation, the Chief Financial Officer (CFO) is sometimes considered to be one of the most strategic, and rightly so. When the firm in question is an operator in the financial services sector, then the office becomes even more critical to be thrown to just anyone.

Besides being responsible for fiscal operating results, the CFO is the senior executive directly responsible for managing the financial strategy, decision and actions of a company. He tracks cash flow, analyses the company’s financial strengths and weaknesses, and fill in for the lapses, reducing operations costs and increasing income.

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In other words, we can say that the job of the CFO is to ensure that the company is highly profitable so that no matter how high it’s share price might be, if listed on the floor of the Nigerian Stock Exchange, it would still be termed undervalued.

This article looks at the CFOs in Nigeria’s tier one banks, their profiles, their last 3 years records and projections for 2020.

READ ALSO: Billionaire investors in the Nigerian Insurance space (2)

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Ugo Nwaghodoh, Group CFO, United Bank for Africa Plc (UBA)

Ugo is a seasoned financial analyst and accountant with experience spanning assurance, advisory, financial control, financial modelling & programming, strategy and business transformation, investor relations, corporate restructuring, risk management, mergers & acquisition, business integration and project management.

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He has been the Group CFO at United Bank for Africa Plc since 2011, managing the performance, financial control, portfolio investment and investor relations among others.  Before then he was the Divisional Head, Financial Control and Investor Relations between 2008 and 2011.

He also had a brief stint as Group Chief Compliance Officer, and as Head of Special Project (Corporate Mergers). He was Head, Performance Management, Strategy and Business Transformation for about 3 years, where he drove the cost optimization initiatives of the bank, and engaged in policy formulation.

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Before UBA, he had worked as Manager, Assurance and Business Advisory Services with PriceWaterhouseCoopers Nigeria for 8 years, and 2 years in Kenya on secondment.

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He has a degree in Accounting and Finance, and MSc in Finance & Management from the Cranfield School of Management, Cranfield University.

He is a fellow, Institute of Chartered Accountants of Nigeria (FCA).

His last 3 years performance

UBA, under Nwaghodoh’s watch, had a fairly unfavourable 2018 as cost to income ratio increased from 57.8% in 2017 to 64% in 2018, and profit after tax almost remained the same increasing only slightly from N78.59 billion in 2017 to N78.60 billion in 2018.

The bank, however, staged a comeback in 2019 with cost to income ratio reduced to 62.7% while profit after tax increased by over N10 billion to N89.08 billion.

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Share price however declined from N10.3 in 2017 to N7.7 in 2018 and N7.15 in 2019, probably not Nwaghodoh’s fault though, since this happened across most financial services institutions. In addition, the bank also paid N30 million as fine to the CBN in 2018, a situation which led shareholders to cry out to Apex bank for what was termed ‘unfair penalties’.

Nwaghodoh, however, has a beautifully designed investor relations page to his credit, with answers to Investors FAQs, analysts reports and credit ratings for the bank, shareholders information and news among others.

Oluseyi Kumapayi, CFO Access Bank Plc

Kumapayi joined Access Bank in 2002. Before then, he was with the First City Monument Bank (FCMB) where he served as Financial officer.

Kumapayi got his MBA from the Kellogg school of management, Northwestern University, and  has been severally endorsed in Corporate finance, risk management and business strategy, financial analysis, mergers and acquisitions, financial modelling and investment banking.

He also attended the INSEAD course on Risk Management, London Business School (LBS) High Performance People Skills program, Euromoney, Assets and Liability Management, Strategy Master Class and Mergers and Acquisition. He is a Certified Chartered Accountant.

Now let’s look at the bank’s three years performance under Kumapayi. 

For the cost to income ratio, Access bank has remained profitable over the last three years, but now the question would be how profitable?

Cost to income ratio reduced from 72.40% in 2017 to 65.30% in 2018 showing that the bank’s strategies succeeded in reducing the ratio of cost to income and making more profits. However, 2019 recorded a negative progression to 68.7%.

This is in spite of the fact that profit after tax grew significantly to N97.5 billion in 2019, from N94.98 billion in 2018 and N53.6billion in 2017.

Overall, we can say the indices point to greater progress made in 2018, compared to 2019.

Note also that the merger between Access Bank and Diamond bank started in 2018, running through 2019 before it was eventually sealed with the launching of the new Access logo, and the slogan ‘access more’. The role of a CFO in a merger of this magnitude is ourightly priceless, given that not all merger talks result in a successful merger of assets, shareholders, and even management team.

There is also the acquistion of controlling equity interest in Transnational Bank Kenya Plc, which Access Bank undertook in October 2019.

Share price at last day of the year progressed from N10.45 to N6.8 to N10, showing that share price dropped most in 2018, which interestingly happened to be the most profitable year so far. In the same 2018, Access bank paid N20 million in fines to the Central Bank of Nigeria.

Kumapayi has kept the investor relations page of the bank’s website duly updated with annual financial reports, investor news, credit ratings, upcoming events, shareholders information and news.

 

Oyewale Ariyibi, CFO, First bank of Nigeria Plc

Oyewale Ariyibi, CFO, FBN Holdings

Before becoming Chief Financial Officer at FBN Holdings Plc, Oyewale Ariyibi had worked with Transnational Corporation of Nigeria Plc (Transcorp) as Chief Finance Officer, and at Standard Chartered Bank, Nigeria as Country Financial Controller.

He has a cumulative 23 years experience in banking and financial services, business assurance, tax management, business process review and consulting across several institutions.

He has been certified in areas such as capital raising, tax planning and cost management, operational risk management, strategic and corporate planning, compliance and business assurance amongst others, and is a Fellow of the Institute of Chartered Accountants of Nigeria (FCA), Associate of the Chartered Institute of Taxation (ACIT) and Certified Pension Institute of Nigeria (ACIP).

So what has he done with First Bank in the last three years?

Profit after tax has been on an increase, from N47.78 billion in 2017 to N59.74 billion in 2018 and N62.09 billion in 2019. This is laudable given that 2016/17 was not the best times for the Nigerian economy.

Share price has however dropped from N8.8 in 2017 to N7.95 in 2018 and N6.15 in 2019.

This may be no fault of his given that he has managed to keep the cost to income ratio stable at 80.17% in 2017, 80.15% in 2018, but it increased slightly in 2019 to 81.31%.

Note that the FBN Holdings also paid a fine of N32.65 million to the CBN in 2018.

This trend can be considered worrisome not only because FBN holdings has the highest cost to income ratio among the tier one banks, but because it is the only of the five banks where cost to income ratio did not reduce over the last 3 years.

This probably explains why shareholders earned 0.25 dividends per share in 2017, 0.26 in 2018 and 0.38 in 2019, the least dividends declared by any of the top banks.

The investors’ relations page of the bank’s site is a bit unclear and it is not easy to access needed information, but once a site visitor gets past the initial confusion, one can see shareholders information, corporate governance reports, financial highlights, unclaimed dividends, press releases and news.

Ariyibi might need to ask some pointers from his colleagues in other tier one banks.

Recently, Ariyibi led engagements with regulators towards FBN’s intention to divest its 65% holdings in FBN insurance Limited.

 

Mukhtar Adam, CFO Zenith Bank Plc.

Mukhtar Adam was appointed Chief Financial Officer (CFO) of Zenith Bank in 2018, and is currently the Group Head, Financial Control and Strategic Planning Group of the bank.

Before this, he was the bank’s Deputy CFO, and sometime before 2014, he headed the Financial Reporting, Tax Management and Strategic Planning Groups, overseeing the entire Zenith Group’s financial reporting.

Adams worked in Financial Services Group of the Nigerian and Ghanaian practices of PricewaterhouseCoopers (now PwC), as a Senior Consultant, before joining Zenith Bank in 2007.

Adam holds a PhD in Finance from the Leeds Beckett University (UK); M.Sc. (Finance – Financial Sector Management) from University of London’s School of Oriental and African Studies, (UK); MBA (Finance) from the University of Leicester (UK) and B.Ed. Social Sciences (Economics and Management) from the University of Cape Coast (Ghana).

Many feathers for one man’s cap, we must agree!

He also holds a Diploma in International Financial Reporting Standards (IFRS) from the Institute of Chartered Accountants in England and Wales (ICAEW).

He is a member of the Institute of Chartered Accountants of Nigeria (ICAN), Chartered Institute of Taxation of Nigeria (CITN), and Institute of Chartered Accountants of Ghana (ICAG).

So, what has Mukhtar Adam achieved for Zenith bank since he took over from Stanley Amuchie in 2018?

It’s been three progressive years for this tier one bank as cost to income ratio has continued to decline from 52.70 in 2017, to 49.30 in 2018 and further down to 48.8% in 2019. Commendably, this progression is not just a result of cutting down operation costs, but increasing income.

Profit after tax for 2017 stood at N173.79 billion and increased to N193.42 billion in 2018 and spiked further to N208.84 billion in 2019.

Whatever magic wand Adams holds over the bank, it must be working well because among the five tier one banks, Zenith bank has consistently had the highest profit after tax for the past three years.

Share price of the bank also moved from N25.6 in 2017 to N23.05 in 2018 and further down to N18.6 as at last day of 2019.

However, this cannot be counted against him as share price is subject to a whole range of extraneous factors. In the 2018, the bank paid N10 million fine to the CBN.

With his input, the bank also maintains a detailed investors relations page with press releases, credit ratings, corporate governance reports and financial updates. In addition to the BOT which pops up to help guide a visitor through the page and answer inquiries, Adams also appears to be one CFO who spells out his key financial strategies on all aspects of the banks operations, on the investors relations page.

Adebanji Adeniyi, CFO, GT Bank

Adeniyi became CFO of GT bank in 2013.

Adeniyi has been certified competent in risk management, portfolio management, risks and investments, Operational dynamics and Associated Risks among others, and has over two decades of professional experience.

He gained his early experience from notable companies including PricewaterhouseCoopers, and Arthur Andersen (now KPMG).

Adebanji Adeniyi, Chief Financial Officer, GT Bank

His banking experience comes from his stint with Lead Bank Plc, and his years at GT Bank. He is a Fellow of Institute of Chartered Accountants (FCA), and also holds a MBA.

So, what has he been up to in the last 3 years.

For Guaranty Trust Bank Plc, cost to income ratio reduced from 38.2% in 2017, to 37.2% in 2018, and to 36.1% in 2019

In addition to its gradual improvement, GT bank has maintained the best cost to income ratio among the top banks.

The bank has also maintained a high profit after tax after Zenith bank. GT Bank recorded N170.47 billion profits after tax in 2017 and this increased to N184.64 billion in 2018 and N196.86 billion in 2019.

Like other banks, however, share price has dropped over the years – from N40.75 in 2017 to N34.45 in 2018 and N29.7 in 2019. In addition to this, GT Bank also received a heavy penalty of N24 million in 2018 from the CBN.

In terms of profitability, both for the bank and for investors, Adeniyi is getting it right.

The bank also has a well laid out investors relations page detailing corporate and financial information, outlooks and insights, upcoming events and investors news, shareholders information and annual reports.

Kudos!

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Endeavor honours founders of Kobo360

Fixing Africa’s supply chain is clearly important for commerce on the continent.

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Endeavor, a leading global movement for high-impact entrepreneurship, has honoured the founders of Kobo360, Obi Ozor and Ife Oyedele as Endeavor Entrepreneurs.

Kobo360 is a digital logistics platform that uses big data and agile technology to reduce friction and improve efficiency in the African logistics ecosystem.

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Managing Director, Endeavor in Nigeria, Gihan-Mbelu, explained that the company is excited to welcome Kobo360 into Endeavor’s network which includes some of the world’s most exciting scale-up entrepreneurs and most experienced mentors and investors.

She said, “Fixing Africa’s supply chain is clearly important for commerce on the continent, and Kobo360’s rapid growth over the past 3 years is evidence that the company’s valuable services are in critical demand. Obi and Ife are inspiring founders and their relentless focus on scaling Kobo360 serves as an inspiration to high-impact entrepreneurs everywhere.”

Meanwhile, since launching in 2017, Kobo360 has surpassed several milestones, including a $30 million Series A in August 2019.

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“It’s an honour to be joining this global network of high-impact entrepreneurs and to have Endeavor recognise our efforts to transform Africa’s logistics sector using technology. As entrepreneurs, we wanted to turn African problems into African opportunities.

“Focusing on logistics, Ife and I started Kobo360 to not only fix the inefficiencies that exist, but to build opportunities for the businesses we serve and most importantly, the hundreds of thousands of truck drivers across Africa. This is a fundamental milestone in Kobo360’s journey; our Global Logistics Operating System [GLOS] will revolutionize supply chain across emerging markets, Ozor, Co-founder & CEO of Kobo360.

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Why these companies remain on NSE’s delisting radar

The Regulation Committee of the National Council of The Exchange (RegCom) has given approval to The Exchange to proceed with the delisting process.

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NSE moves to protect investors’ data , Ekiti, Osun, Delta, Imo, 9 others raise over N500 billion bonds in 10 years, Equities: Foreign investors remain net sellers of Nigerian equities, Top 10 stockbroking firms traded N1.35 trillion on stocks in 2019, Equities: A bullish run to start the year, NSE to sustain growth in 2020, CEO assures, Commodities , NSE PUBLISHES GUIDANCE TO FACILITATE EFFECTIVE VIRTUAL MEETINGS FOR STAKEHOLDERS AMIDST COVID-19

Data obtained from the Nigerian Stock Exchange (NSE) has revealed that about seven companies have been on the delisting radar of the Exchange since December 2019.

They have been either in the process of delisting their issued shares from the bourse or on the delisting watchlist of the Exchange. This was stated in the Exchange’s X-Compliance report.

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The report, which is released by the Exchange every Friday and seen by Nairametrics, stated that the Regulation Committee of the National Council of The Exchange (RegCom) has approved for the Exchange to proceed with the delisting process of Evans Medical Plc, Tourist Company of Nigeria, Anino International Plc, Nigerian German Chemicals Plc, and Roads Nigeria Plc since last December.

On the other hand, Omatek Ventures and Deap Capital Management & Trust have been placed on the NSE’s delisting watch-list over their failure to comply with some post-listing requirements, including failure to file their quarterly and annual reports within a stipulated time.

Why companies delist 

There are two main reasons why companies delist from the NSE or are forced to delist from the market. The first one entails punishment for companies that violate NSE’s listing rules.

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The NSE periodically fines defaulting companies, whilst demanding that such companies address their corporate governance lapses. As Nairametrics reported recently, the latest X-Compliance report showed that the NSE made as much as N154 million by imposing fines on defaulting companies.

But sometimes, fines are not enough. The NSE is often forced to voluntarily delist companies whose infractions have become persistent.

On the other hand, a good number of companies have also voluntarily delisted from the NSE for various reasons, including the desire to become privately owned entities.

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What you should know

In the case of Omatek Ventures, the company’s fate has been dwindling since the departure of its founder, Dr Florence Seriki. Nairametrics reported when it was accused of defaulting on its credit facility agreement with the Bank of Industry (BOI).

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According to the development bank, the company has refused to service the N5.81 billion which it obtained in 2012. The bank disclosed that several measures had been employed to ensure that Omatek kept to the loan agreement, all to no avail. One of such efforts was the appointment of Ade Oyebanji as a receiver, who took inventory of all items located at Omatek’s premises at Plot 11, Kudirat Abiola Way, Oregun,  Ikeja, Lagos, in January 2017.

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Summary of the loan detail

In December 2012, the Bank of Industry loaned Omatek Ventures N5,808,429,033.95 in a term loan and working capital facilities agreement. The loan was disbursed to finance the procurement of assembly components for the production of laptops.

Also, as part of the requirements for obtaining the loan, the development finance bank said that it requested an Irrevocable Standing Payment Order arrangement with the defunct Skye Bank Plc in favour of BoI, all assets debenture, and an Irrevocable Personal Guarantee of the late Seriki.

Evans Medical Plc is a Nigerian pharmaceutical company that was established in 1954 and listed on the Nigerian Stock Exchange in 1979. Over the years, the company has been plagued by many challenges, ranging from increasing competition to corporate governance lapses. The latest NSE X-Compliance report indicated that the company has not submitted any quarterly financial statement from 2016 to 2019. At this rate, the NSE may have no choice but to forcefully delist the company.

Nigeria-German Chemicals Plc has also not been obeying the listing rules of the NSE. The latest NSE X-Compliance report also noted that the company had not filed any financial statement since Q3 2014 till date. It will not come as a surprise if the company is delisted from the Nigerian bourse any moment from now due to regulatory reasons.

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Note that the company is a chemical/healthcare company which was incorporated in 1964. It was initially known as Nigerian Hoechst Plc before it rebranded and changed to its name in 1995. It was listed on the NSE in 1979.

Amino International Plc is also in the process of delisting, primarily because it abused NSE rules by not disclosing its quarterly financial statements from 2015 till date. The company, which engages in manufacturing different kinds of personal and industrial products, was incorporated in 1981 and listed on the NSE in 1990.

Roads Nigeria Plc is a civil engineering firm that is in the business of construction of roads, bridges, dams, airfields, and real estate. The company was incorporated in 1974 and is headquartered in the Northern Nigerian city of Sokoto.

Unfortunately, the company has not released its quarterly financial statements since 2014. This is a major violation of the NSE listing rules, which could result in the company being delisted soon.

The delisting of the Tourist Company of Nigeria Plc from the Nigerian Stock Exchange may be a voluntary move by the company’s owners. The company has recently been plagued by ownership tussles, with some shareholders calling for it to be liquidated. The hospitality company was incorporated in 1964.

DEAP Capital Management Trust Plc was incorporated in 2002 and listed on the NSE in 2007. Though Nairametrics had reported earlier that it was unclear whether its delisting was voluntary or regulatory with the recent X-Compliance report, it appears that the company is struggling financially as it has failed to turn in its quarterly reports to the Exchange.

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