Business News
Recapitalisation: Capital Express Holdings to sell foreign assets
The GMD of Capital Express Holdings, Yinka Obalade, has announced that the company would be selling some of its operations in Africa.
The Group Managing Director, Capital Express Holdings, Yinka Obalade, has announced that the company would be selling some off its assets in Africa as part of its strategies to focus on its Nigerian operations.
The company said its foreign assets would be sold by the first quarter of 2020 but its subsidiary in Kenya would remain operational.
Why Capital Express is selling: The company is reviewing its growth plan in Nigeria as the insurance industry is embarking on the recapitalisation plan as directed by the National Insurance Commission (NAICOM) and the Federal Government.
The cash from the sales of its foreign assets will be disbursed for the acquisition of firms in Nigeria. The acquisition will increase the capacity of the company’s life insurance operations.
The sale is also expected to strengthen other operations of Capital Express Holdings, which include Asset Management, Investment Banking, Commodity Trading, Trusteeship and Franchising.
[READ MORE: Seven Energy Group sells assets, as British oil firm completes acquisition)
The company’s shareholders have already backed the downsizing of its foreign assets which will reposition its competitiveness in all its areas of operations.
“The acquisition will be an addition to the funds which the Holding Company is injecting in the first instance into the company. Our other areas of business like Asset Management, Investment, Banking, Trusteeship e.t.c. would also be beneficiaries of the funds towards repositioning the entire brand for greater competitiveness in all its areas of operations,” Obalade said in a The Nation report.
Other options were considered: While the final decision was to sell its foreign assets, Obalade said other options – which he didn’t mention – were considered, but selling the assets holds more value for the shareholders and the company.
“The sales process of some of the companies are already concluded while others are being finalized to ensure they that the deadline of first quarter 2020 is met.
“The Board discussed other options before arriving at the conclusion to sell its overseas operations. The board, having reviewed all options urged the group to ensure higher return on for investors and the funds injected in these companies should make it a brand to be reckoned with in its areas of operations,” Obalade disclosed.
Economy & Politics
CBN reduces MPR from 12.5% to 11.5%
The Governor of the CBN has announced the reduction of MPR from 12.5% to 11.5%.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to reduce the Monetary policy rate (MPR) from 12.5% to 11.5%. This was disclosed by Governor, CBN, Godwin Emefiele while reading the communique at the end of the MPC meeting on Tuesday.
READ: This is a copy of the Self-Certification form govt. wants targeted account holders to fill
The committee retained CRR at 27.5% stating that the recent inflationary pressures is not driven by monetary policies, rather as a result of structural policies.
Highlights of the Committee’s decision
- Reduce the MPR by 100 basis points from 12.5% to 11.5%
- Adjust asymmetric corridor from +200/-500 to
- Retain CRR at 27.5%
- retain liquidity ratio at 30%
Explore the Nairametrics Research Website for Economic and Financial Data
More details shortly …
Manufacturing
FG moves to clamp down on illegal fertilizer manufacturers and agro-dealers
It is now forbidden for anyone to go into fertilizer business in Nigeria, without registering with the FISSD.
The Federal Ministry of Agriculture and Rural Development has disclosed that anyone caught producing or merchandising adulterated fertilizers, under the new law, will be jailed.
This disclosure was made via the Ministry’s official Twitter handle, to the general public, and seen by Nairametrics.
The announcement notifies the general public that the National Fertilizer Quality Control (NFQC) Act 2019, is to make sure that every farmer has good and efficient fertilizer for their farms, to boost farming harvest and output.
The ministry reiterated that it is forbidden for anyone to go into fertilizer business in Nigeria, without registering with the Farm Inputs Support Services Department (FISSD) of the Federal Ministry of Agriculture and Rural Development. However, anyone caught producing or merchandising adulterated fertilizers will be jailed.
VIDEO: FG Moves to Clamp Down on Illegal Fertiliser Producers/Manufacturers, Blenders, Importers, and Agro-dealers. 1/4 pic.twitter.com/YVSykNpJ2R
— Fed Min of Agric/RD (@FmardNg) September 22, 2020
This regulation is to address the recurring issues of the effect of substandard fertilizers on farm produce, and the market proliferation of adulterated fertilizers in the country, which continues to bedevil farm outputs and harvests in the country.
Backstory: On the 26th of August, the Permanent Secretary of Agriculture and Rural Development, Dr. Abdulkadir Mu’azu, reaffirmed the Federal Government’s commitment towards implementing the National Fertilizer Quality Control (NFQC) Act 2019. He ensured that the fertilizer regulatory system is in place, to safeguard the interest of the farmers, as when the regulation is implemented, it will protect farmers from using adulterated fertilizers that are nutrient deficient.
Why this matters
This policy is important to safeguard both the interest of the farmers and the members of the public, as the initiative is expected to increase agricultural harvest and productivity, in a bid to make national food security a reality.
The NFQC Act will safeguard interests of fertilizer enterprises, businesses and agro–dealers, as it will create part of the enabling environment for private sector investment in the fertilizer industry, and protect the environment against potential dangers, that may result from market proliferation of adulterated fertilizers and the use of harmful substances in fertilizer.
The Executive Secretary of FEPSAN, Mr. Gideon Negedu, reiterated that the new National Fertilizer Quality Control Act 2019, is a game-changer for the nation’s agricultural sector and a powerful weapon for the farmers.
In his view, Prof. Yemi Akinseye–George (SAN), said, “that the Federal Government and relevant stakeholders of the fertilizers industry, have taken the bull by the horn in enacting a robust legal framework for quality control in the country.”
Corporate Press Releases
NSE highlights retail investment opportunities in today’s Nigerian Capital Market
The Exchange in collaboration with the NISL has inaugurated the Retail Investors’ Webinar.
The Nigerian Stock Exchange (“NSE” or “The Exchange”) has expressed its commitment to redefining and improving investors’ overall experience in the Nigerian capital market, and ensuring that it remains modern, convenient and secure. This was highlighted at the inaugural edition of the Retail Investors’ Webinar hosted by The Exchange in collaboration with the Nigerian International Securities Limited (NISL) on Monday, 21 September 2020. The event, with the theme, Capital Market Investing in a Digital Age, was supported by the Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON).
Speaking during the webinar, the Chief Executive Officer, NSE, Mr. Oscar N. Onyema, OON said, “Investor participation is central to the growth and sustainable development of any economy. The Exchange is, therefore, committed to facilitating conversations that will expound on the retail investment opportunities available in the capital market and the channels through which they can be accessed. Today, our determination to develop the market and strengthen investor confidence has birthed a number of technology-driven solutions that allow investors to conveniently trade electronically in an increasing array of product offerings that includes Equities, Bonds, ETFs and other Collective Investment Schemes. We will, therefore, continue to take advantage of the vast opportunities to equip existing and potential investors with the necessary skills to effectively manage and grow the financial resources at their disposal.”
On his part, the Managing Director, Nigerian International Securities Limited (NISL), Mr. Laolu Martins said, “NSE has consistently pioneered far-reaching innovations within the Nigerian capital market, positively driving market integrity, boosting both investor confidence and market participation.” He went on to highlight the efforts of the NISL to create wealth for investors via an appropriate mix of securities using well spelt out market research to help investors meet their financial objectives. In doing so, he provided an analysis of the investment instruments available on NSE including equities, bonds, REITS, Closed-Ended Funds, ETFs, etc.
(READ MORE: Capital market operators call for the suspension of recapitalisation plans)
The event also featured a presentation on the importance of Market Data in making investment decisions by the Head, Market Services, NSE, Mr. Olufemi Balogun. It would be recalled that The Exchange recently released an upgrade to its X-DataPortal. The revamped portal has been designed to serve as a principal source for brokers, fund managers, research analysts, other professionals and non-professional participants like students and investors to get quality real-time and reference data reports for analysis, research and reporting purposes. Mr. Balogun encouraged investors at the webinar to access the information via https://dataportal.nse.com.ng.
The Exchange has showed its clear determination to ensure that investors have a better understanding and appreciation of investment products offered in the Nigerian capital market in its efforts to become Africa’s preferred Exchange hub. The upswing in market activities in Q2:2020 is a testament to the resilience of the market as a result of concerted efforts of The Exchange. As at the end of August 2020, the NSE All Share Index had recorded an 18.9% increase from its position at the end of March, 2020. In addition, the market also witnessed a growth in the percentage value of equity transactions contributed by retail investors, currently at 29% from the 21.8% recorded in 2018 and 24.72% recorded in 2019.
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