Securities Exchange Commission (SEC) has set a 7-year timeline to revive the commodities market in Nigeria. The regulator hopes to revive the commodities market by bringing the Nigerian Commodity Exchange (NCX) to speed with other commodity exchanges around the globe. This restructuring, according to SEC, will be concluded in 2025.
This move by SEC is geared towards economic diversification agenda of the Nigerian Government to grow the country’s agricultural value chain. This restructuring will see the Nigerian Sovereign Investment Authority (NSIA) inject funds into the commodity market.
AFEX Commodities Exchange – a privately owned commodity exchange moved 46,160 metric tonnes (MT) of commodities (ginger, paddy rice, soya beans and maize, etc) worth N6.3 billion between second quarter 2016 and fourth quarter, 2017, according to available data. This makes it the only viable commodity exchange in Nigeria.
Part of the restructuring plan includes injection of funds by the NSIA into NCX – which has been comatose for some years.
To also facilitate the plan, SEC has set up a special division – Commodities Division – as part of measures to strengthen regulatory capacity for the market. The NCX has been battling with a host of challenges, including lack of funding occasioned by government’s inaction, lack of enabling laws and proper understanding of the operations of the commodities exchange.
Recommendations by the Technical Committee on Enhancing the Commodities Trading Eco-system – set up to recommend solutions to the problems of NCX – suggest that the restructuring would be in four phases; with the first phase lasting for two years from 2018 to 2019.
The first phase will focus on achieving food/input sufficiency, price discovery and market development with special attention on agricultural produce like maize, sorghum, soya beans, cassava, and rice. This phase will also involve engagement in public enlightenment and development of education roadmap by the SEC as well as encouraging investment in warehouses and storage facilities by both the Commission and private sector operators.
This phase will also involve organisation of farmers into cooperatives by the Central Bank of Nigeria (CBN), Federal Ministry of Agriculture and Rural Development (FMARD), and SEC to aggregate produce and encourage them to become members of the exchange among other relevant actions.
The second phase, which will last for another two years (2020 to 2021), will focus on the development of export-focused commodities in agriculture like cocoa, sesame, cotton and palm oil; and continuous de-risking of the agriculture value chain by the National Insurance Commission (NAICOM).
In the third phase (2022 to2023), exchanges would be expected to key into Customs Single Window System to ease the process of export.
Finally, during the fourth phase of the project (2024 to 2025), SEC and other stakeholders will ensure that there is a strong international presence in the commodities market, while tradeable commodities will be expanded to include solid minerals and energy.
Nascon Allied Industries Plc: Increase in sale of goods boosts revenues
Nascon Allied Industries Plc recorded a boost from an increase in the sale of goods revenue-generating unit
Nascon Allied Industries Plc recorded a boost from an increase in the sale of goods revenue-generating units, as total revenues increased slightly. The company reported revenues of N21.87 billion in 2020 (9months) – 4.01% increase compared to N21.03 billion in the corresponding period of 2019.
What you should know
Key highlights from 2020 (9months) results
- Revenues increased by 4.01% from N21.03 billion to N21.87 billion YoY.
- Revenues from sale of edible, refined, bulk grade salt; seasoning and vegetable oil, increased to N21.87 billion, +22.53% YoY.
- Other income increased to N12.81 million, +27.43% YoY.
- No revenue was recorded for freight income on the deliveries of salt and seasoning income-generating unit.
- Gross profit increased to N8.96 billion, +74.56% YoY.
- Operating profit increased to N3.64 billion +18.60% YoY.
- Pre-tax profits increased to N3.47 billion, +16.63% YoY.
- Post-tax profits increased to N2.29 billion, +13.27% YoY.
- Earnings Per Share increased to 115 kobo, +12.75% YoY
- Total assets increased to N44.36 billion, +45.79% YoY.
- Total liabilities increased to N32.04 billion, +67.21% YoY.
- Total equity increased to N12.32 billion, +9.35% YoY.
Nascon Allied Industries Plc recorded a boost from increase in sale of goods revenue-generating unit, but no revenue was recorded for its freight income on the deliveries of salt and seasoning revenue generating-unit.
Though companies have generally recorded decreased revenues in the last three quarters, mostly due to COVID-19; Nascon Allied Industries Plc was able to increase its total revenues and pre-tax profits in the period under consideration.
Instagram disables its “Recent” feature
Instagram recently announced it had removed the “recent” tab from hashtag pages on a temporary basis
Instagram disclosed that it would remove the “Recent” tab from its hashtag pages for people in the United States of America.
The social networking and video sharing service stated this on its official Twitter handle. It said it is “doing this to reduce the real-time spread of potentially harmful content that could pop up around the election.”
Starting today, for people in the U.S. we will temporarily remove the “Recent” tab from hashtag pages. We’re doing this to reduce the real-time spread of potentially harmful content that could pop up around the election.
— Instagram Comms (@InstagramComms) October 29, 2020
What you should know
Nairametrics had reported on Instagram’s apology for its algorithm malfunction that led to the flagging of #EndSARS posts as fake.
Instagram has also taken the following measures to ensure a successful November election.
- The registration of 4.4 million votes this year through its flagship platform – Instagram and Messenger.
- Serving as a means of information and tool to people in the US on the electoral process
- The ban of any content that can thwart the success of the election.
(READ MORE:U.S dollar stable amid U.S holiday)
Mark Zuckerberg, the CEO of Facebook, said he was perturbed about the high risks for civil unrest in the US due to the upcoming presidential election.
“I’m worried that with our nation so divided and election results potentially taking days or weeks to be finalized, there is a risk of civil unrest across the country.”
Furthermore, he disclosed on a call while discussing Facebook’s Q3 earnings, that “given this, companies like ours need to go well beyond what we’ve done before.”
Why this matters
The aim of the short-term decision is to decrease the spread of misinformation in the forthcoming US election.
#EndSARS: Police did not shoot protesters – IGP Adamu
The IGP has said that police officers acted professionally and exercised commendable restraints during the #EndSARS protests.
The Inspector-General of Police, M.A Adamu, has said that officers of the Nigeria Police Force acted professionally and exercised commendable restraints during the protests, in a response to Amnesty International about police firing at protesters.
The IG disclosed this in a statement on Friday morning, saying reports on the shooting of protesters is not true.
ENDSARS PROTESTS: POLICE PERSONNEL WERE PROFESSIONAL AND EXERCISED MAXIMUM RESTRAINTS – IGP TELLS AMNESTY INT’L
•Says Report on Shooting of Protesters by the Police, Not True.
The Inspector-General of Police, IGP M.A Adamu, NPM, mni has affirmed that
— Nigeria Police Force (@PoliceNG) October 30, 2020
What you should know
Amnesty International released a report on the 21st of October, 2020, saying it has confirmed “that the Nigerian army and police killed at least 12 peaceful protesters yesterday at two locations in Lagos. The killings took place in Lekki and Alausa, where thousands were protesting police brutality as part of the #EndSars movement.”
President Muhammadu Buhari also disclosed last week that 51 civilians, 11 Police officers, and 7 soldiers have been killed in the unrest.
The IGP said today that, “Officers of the Nigeria Police Force acted professionally, exercised commendable restraints and some paid the supreme price for peace during the recent protests and ensuing violence in some parts of the country.
“The Amnesty Int’l report is untrue, misleading, and contrary to all available empirical evidence.
“Even when the protests turned violent in some parts of the country, the officers still maintained utmost restraint and did not use excessive force in managing the situations.”
The IG added that 22 Police personnel were killed by hoodlums, with many more injured and that 205 police stations were attacked.
“Available reports show that twenty-two (22) police personnel were extra-judicially killed by some rampaging protesters and scores injured during the protests. Many of the injured personnel are in life-threatening conditions at the hospital.
“Two hundred and five (205) police stations and formations including other critical private and public infrastructure were also damaged by a section of the protesters,” he said.
The IG said Amnesty International failed to pay tribute to police officers who lost their lives in the violence and accused the organization of “discriminatory tendencies.”