Access Bank’s Chief Executive Officer, Herbert Wigwe, has sold 28.86 million shares worth N297.82 million, which represents 2.33% of his stakes in the bank. The transaction, which was done through Trust Capital Limited, was disclosed in a notice filed at the Nigerian Stock Exchange.
This means Wigwe had sold 6.81% of his stake in the financial institution, as he had sold a 4.48% stake on Friday. The bank disclosed in a notification of insider dealing, which was filed at the NSE on Friday, that its CEO sold 55.6 million shares ordinary shares, which he held indirectly.
Details: Access Bank said Wigwe held a total of 1.24 billion indirect shares as of April 2019. The indirect shares were made up of 537.73 million shares owned by United Alliance Company of Nigeria Limited and 702.56 million shares owned by Trust and Capital Limited.
- It said the 55.6 million shares sold were from Wigwe’s indirect holding through Trust and Capital Limited
- It added that the number of shares sold was an aggregation of sales made on four different instances ― 3.61 million shares on January 10, 20.14 million shares on January 13, 9.24 million shares on January 14 and 22.63 million shares on January 15.
- Wigwe sold the shares at a price of N10.80 on January 10, N10.70 on January 13, N10.56 on January 14 and N10.22 on January 15.
- Out of the 15 members of Access Bank’s board of directors, Wigwe has the highest stake in the bank, directly owning 201.23 million shares and 1.24 billion shares indirectly.
- The additional 28.86 million shares were sold at N10.32 on January 16.
Investors raise concerns: In what is looking like a major concern to investors, the bank CEO’s is selling down his shares just after the bank announced that it had suspended its closed period. Earlier in the year, January 8th the bank announced that it had suspended its closed period which it had earlier communicated on December 30th. The closed period was supposed to last until January 29th, 2020.
Some investors who spoke to Nairametrics on the condition of anonymity are now wondering if there is a connection between the back to back sale of shares and the abrupt suspension of the announcement of the closed period.
While there is no proof, it is likely that as a leading member of the management of the bank he may have seen the results of the company giving him an undue advantage over other shareholders of the company who are not privy to results.
The share price of Access Bank Plc closed at N10 on December 31 and recorded a sustained appreciation up till January 8, where it closed a N11.80. Access Bank closed trading on Tuesday at N10.05 having opened at N10.75.
What BBNaija winner, Laycon can do with N30 million
Nairametrics has come up with possible investments that Laycon should consider, as he begins his millionaire phase.
After 71 days of intense competition, the season 5 of BBNaija tagged, Big Brother Naija Lockdown, came to an intriguing end yesterday, as one person walked away with the N85 million total grand prize.
After 10 weeks of staying cooped in one house, executing several tasks from sponsors, partying every Saturday, and watching their competitors leave one after the other; 5 finalists emerged from the 20 that started the show – Vee, Neo, Nengi, Dorathy, and Laycon.
Of the 5, just 1 emerged winner – Olamilekan Agbeleshe, popularly known as ‘Laycon’.
As earlier announced by Multichoice, N30 million was awarded to him as cash prize, with the supplementary 55 million covering;
- A two-bedroom apartment courtesy of Revolution Plus
- A top of the range SUV from Nigerian automaker, Innoson Motors
- A trip to Dublin courtesy of Guinness
- Home appliances courtesy of Scanfrost, and a branded Chiller
- A trip to Dubai packaged by Travelbeta
- 1-year supply of Indomie noodles, Munch it, and Colgate toothpaste
- 1-year supply of Pepsi
- A trip to watch the UEFA Champions League finale
- A brand new Oppo Reno 3 smartphone.
Not many are surprised with the outcome, as Laycon was a strong contender from the first day in the house. Despite his vivid intelligence and calm nature; his victory can be attributed to a strong social media strategy by his campaign team. His acceptance was easier, being a lightweight Twitter influencer himself prior to the show.
Also, from the diary session in the final week, two of the finalists projected Laycon as the most likely winner. Nengi, particularly said she had always considered Laycon a strong competition, and she views him as someone viewers would love. Neo saw Nengi as a possible winner, while Laycon thought Dorathy to be his biggest competition. Vee said that Laycon had strong plans of what to do with the money, and believes he is deserving of the grand prize.
Speaking of strong plans, Nairametrics research team has come up with possible investments that Mr. Agbeleshebioba Massoud Al Khalifah aka Laycon should consider, as he begins his millionaire phase.
Already, the finalists have won some prizes via tasks from sponsors of the show; in fact, all of the finalists have won at least N3million prize each, and Laycon in particular has about N7 million in excess winnings. Assuming that this N7 million and other gifts would take care of his living expenses for the next few months, while he channels the N30 million into worthwhile investments.
The 26-year-old singer and rapper has over the last couple of years built a music profile that could benefit massively from his new-found fame. Already, front-line artistes like Davido are hinting a possible collabo with the University of Lagos graduate.
In April 2019, Fierce Nation signed on Laycon, alongside Runnjozzy. His singing career dates back to the 2014 Coke Studio University of Lagos event, where he was one of the 10 artistes who performed. Later in 2017, he was one of the top 10 finalists at the MTV Base LSB challenge.
After struggling through his music career for years, without recognition, Laycon will discover that N30 million is a lot of money if invested wisely. It is also a sum that could evaporate in a matter of weeks, if misused.
Mercy Eke, winner of last year’s ‘Pepper Dem’ edition, invested her cash winnings in expanding her luxury clothing line, and launching her real estate company “Lambo Homes” which she founded in partnership with a seasoned real estate Consultant/luxury property developer, and an experienced lawyer.
Now, Laycon does not have a luxury clothing line which he might want to expand, but Research Analyst Samuel Oyekanmi avers that he could consider real estate investments just like last year’s winner. He may not have to start a real estate company, if he has no interest in it, and some landed property could make a good addition to his portfolio, given that the value rarely depreciates. “Such property could become hoteling centres or rented apartments, and bring impressive returns over time,” he said.
Founder of Nairametrics, Ugochukwu ‘Ugodre’ Obi-Chukwu, suggests Laycon should consider choice stocks in the Nigerian and foreign stock exchanges, as well as investments in money market instruments, where some decent profits can be made.
According to him, “This will also be the time to look into Agri-Tech investments, using crowdsourcing platforms, after which you can sit back and watch your funds grow over a time span of 5 months to a year.”
Another investment worth considering is Food production. Food is a necessity, and the border closure has done wonders for investments along the food value chain, from farming to processing, and so on.
The transportation sector can also be considered. With proper management, an investment in a couple of vehicles in the transport line, could also yield good returns for Laycon.
Nairametrics’ Investment Analyst, Olumide Adesina, thinks that Crypto-currencies are a good bet at this time, as they are now being used to facilitate payments. He said, “Cryptos offer the highest yield across financial assets, and investing in them can only turn out great. It has recently been attracting institutional funds, and is properly regulated through a legal framework. Laycon could also consider Agro-allied stocks, as many of them have performed quite well. In spite of the insecurity problems disrupting farming in Northern Nigeria, agro stocks such as Okomu Oil have enriched investors, through dividend pay-outs and appreciation of share price. A lot of investors are looking at U.S stocks, but among the log, the tech market remains the most attractive, after the impressive performance tech companies like Google, Facebook, Apple, and Amazon put on this year. A lot of people have been spending more time on their phones, working remotely, moving their businesses to the digital space, and providing services down the value chain; all of these has improved the performance of tech stocks.”
Laycon might need to keep all these in mind, while drawing up the budget allocation for his N30 million cash prize.
These industries drove business activities in September
The development indicates recovery as manufacturers continue to benefit from the ease of the lockdown.
Despite the fact that the Central Bank of Nigeria (CBN) declared last Wednesday that the nation’s Manufacturing Purchasing Managers’ Index (PMI) contracted at 46.9 index points, some industries still drove business activities in September.
The industries are Electrical equipment, up from 33.3 index points in August to 66.7 index points; Transportation equipment from 53.8 to 58.1; and Paper products from 44.4 to 50 within the same period.
Though, the Cement industry and non-metalic mineral products dropped from 64.4 to 58.1 and 66.0 to 50.6 index points respectively, the sub-sectors still contributed to the business activities recorded in September.
This was disclosed by the apex bank in its September PMI report released on Wednesday.
Nairametrics had earlier reported that manufacturing PMI for August stood at 48.5 index points, indicating contraction in the sector for the fourth consecutive month.
Also, out of the 14 surveyed subsectors, 5 sub-sectors reported expansion (above 50 index points thresholds), while the others contracted.
Meanwhile, the production level index for the manufacturing sector indicated contraction in September 2020 for the fifth consecutive month, as well as Employment level and Raw material inventories.
However, the manufacturing supplier delivery time index stood at 53.5 points in September 2020, indicating faster supplier delivery time for the fifth time.
Is the nation coming out of the woods?
Though CBN revealed that only 4 sub-sectors reported expansion in September, contrary to the 6 sub-sectors recorded in August, it is imperative to note that this is an improvement when compared to manufacturing activities in May and June, or the performance in July which saw 12 sub-sectors decline, with one reporting no change, while one expanded.
The impressive performance of cement and other sub-sectors, according to the manufacturing PMI report, is attributable to the expansion in production, new orders, employment, and raw materials’ inventories.
A cursory look at the financials of key players in the industrial goods sector showed that despite the increased cost of higher energy pricing and adverse COVID-19 impacts on transport and naira devaluation, key cement manufacturers still recorded increased topline, driven by demand surge from domestic cement sales.
Back story: Nairametrics had reported on Wednesday that 9 subsectors reported contraction (below 50% threshold) in the reviewed month in the following order:
- Petroleum & coal products
- Primary metal
- Furniture & related products
- Printing & related support activities
- Food, beverage & tobacco products
- Textile, apparel, leather & footwear
- Chemical & pharmaceutical products
- Fabricated metal products and
- Plastics & rubber products
The Non-manufacturing sector PMI stood at 41.9 points in September 2020, indicating contraction in nonmanufacturing PMI, for the sixth consecutive month.
In all, the development indicates recovery as manufacturers continue to benefit from the ease of the lockdown.
However, conditions within the domestic economy remain relatively tight, reflecting continued uncertainties as investors remain cautious of the lingering risk of the pandemic.
Electricity tariff increase is suspended for 2 weeks
The FG and the Nigerian Labour Unions have agreed to suspend the electricity tariff increase for a period of two weeks.
The Federal Government and the Nigerian Labour Unions have agreed to suspend the electricity tariff increase for a period of two weeks. This was part of the agreement reached between Labour and the Government as they deliberated to avert a nationwide strike that would have grounded an already deteriorating economy.
While the strike was over two major issues, an increase in electricity charges and fuel price respectively, the decision to call off the strike was based on the suspension of the electricity bills. The following terms of reference underpinned the agreement between Labour and the Government.
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Terms of reference for suspension of electricity increase for 2 weeks.
Terms of reference “The Terms of Reference (ToR) are as follows: To examine the justification for the new policy on cost-reflective Electricity Tariff adjustments.”
- Both parties are to examine the justification for the new policy on cost-reflective tariff adjustment
- To look at the different Electricity Distribution Company (DISCOs) and their different electricity tariff vis-à-vis NERC order and mandate.
- Examine and advise government on the issues that have hindered the deployment of the six million meters.
- To look into the NERC Act under review with a view to expanding its representation to include organized labour.
- The Technical sub-committee is to submit its report within two weeks.
- During the two weeks, the DISCOs shall suspend the application of the cost-reflective electricity tariff adjustments. “The meeting also resolved that the following issues of concern to Labour should be treated as stand-alone items:
- The 40% stake of government in the DISCO and the stake of workers to be reflected in the composition of the DISCOs Boards.
- An all-inclusive and independent review of the power sector operations as provided in the privatization MOU to be undertaken before the end of the year 2020, with Labour represented.
- That going forward, the moribund National Labour Advisory Council, NLAC, be inaugurated before the end of the year 2020 to institutionalize the process of tripartism and socio dialogue on socio-economic and major labour matters to forestall crisis.
What this means: The decision reached between the government and labour means the service reflective tariff regime which started on September 1, 2020, is effectively suspended. Customers are therefore no longer required to pay the service reflective tariffs and will revert to the previous MYTO tariffs of 2015.
- By looking at the “different Electricity Distribution Company (DISCOs) and their different electricity tariff vis-à-vis NERC order and mandate” it appears labour might be looking to recalibrating the tariffs for some Discos.
- According to documents on the tariff order published by the NERC, some Discos have tariffs for residential customers that are as high as N62/kWh while it’s just under N54 for others.
- Labour could also get involved in determining the veracity of the tariff bands that determines which customers pay what as electricity tariffs.