Business News
SEC adjusts operations, introduces e-filing, other measures
SEC has issued an advisory to quoted companies and operators in the Nigerian Capital market to mitigate the impact of COVID-19.
Following the social distancing and efforts of the federal and state governments, the Securities and Exchange Commission (SEC) has issued an advisory to quoted companies and operators in the Nigerian Capital market to mitigate the impact of COVID-19.
This was disclosed in a circular issued by the apex regulator to operators and seen by Nairametrics. In the document, SEC stated a number of market-focused adjustments to be adopted in the interim in response to the effects of COVID-19.
Coronavirus
Details of the adjustments: Some of them are filing and processing of applications electronically; extension of deadline on 2019 annual reports and Q1 2020 reports; postponement of the Q1 capital market committee meeting earlier scheduled for April 23, 2020.
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The commission stated that applications should be filed electronically while pending applications and requests by the capital market operators for update of information would be processed via [email protected]
New operators’ applications: Fresh applications for registration of capital market operators had been suspended until further notice.
Filling of returns: Returns are expected to be filed electronically while the commission had approved a 60-day extension, in the first instance, for public companies and capital market operators to file their 2019 annual reports and Q1 2020 reports.
By the advisory, public companies are to take appropriate precautionary measures as recommended by the federal and state governments as well as the Nigerian Centre for Disease Control (NCDC) to ensure the safety of shareholders and participants at annual general meetings/extra-ordinary general meetings and other meetings that may be held during the prevalence of the pandemic.
READ ALSO: SEC set to issue regulation for Fintech products
SEC Building
The circular read: “The first Capital Market Committee meeting for the year scheduled to hold on April 23, 2020, and all other meetings have been postponed indefinitely.
“It is important to note that the foregoing guidelines are not exhaustive, but rather represent an outline of immediate actions the commission considers necessary to sustain the actualisation of its regulatory mandate and maintain the integrity of the Nigerian capital market during this challenging period.
“Accordingly, the commission will continue to issue updates to market stakeholders as appropriate. The commission will also continue to closely coordinate with other financial regulators and governmental authorities.”
In all, the market apex regulator tasked all stakeholders to adhere to all recent directives on safety and social distancing. It added that it is determined to ensure the continuity of its operations; monitoring market functions and systemic risks; providing regulatory flexibility and guidance to issuers and investors confidence.
Appointments
Dangote Sugar appoints Ravindra Singhvi as GMD/Chief Executive Officer
Mr. Ravindra Singhvi has been appointed as the substantive Group Managing Director/Chief Executive Officer of Dangote Sugar Refinery Plc.
The Board of Directors of Dangote Sugar has appointed Mr. Ravindra Singhvi as substantive Group Managing Director/Chief Executive Officer of Dangote Sugar Refinery Plc, effective October 30, 2020.
This disclosure was made by the company in a notification of the resolution of its board meeting, to the Nigerian Stock Exchange.
The statement partly reads:
“Dangote Sugar Refinery Plc. wishes to notify the Exchange and the investing public that at the Board of Directors Meeting of the Company held today, Friday October 30, 2020, the Board approved (a) the Unaudited Financial Statement for the Quarter Ended September 30, 2020, and (b) the appointment of the current Ag. Managing Director, Mr. Ravindra Singhvi as substantive Group Managing Director/Chief Executive Officer of Dangote Sugar Refinery Plc. effective October 30, 2020.”
What you should know
Prior to his new appointment, Mr Singhvi had been the ag. Managing Director of Dangote Sugar Refinery Plc since 18th June, 2019, after serving as the company’s Chief Operating Officer.
The Board’s stance on the appointment
The Board has stated that it is “confident that he is a great asset to the Company, particularly at this time when it is on a rapid growth trajectory, in view of its recent acquisition and it’s several backward integration projects (BIP) to position itself for further job creation in local plantations and factories, import substitution and deeper contribution to national economic development.”
Mr. Singhvi is wished the very best in his endeavors.
About Mr. Ravindra Singhvi
He has over 39 years of proven experience in leadership positions in Manufacturing and Processes in Sugar, Petrochemicals, Cement, and Textiles products industries in India.
He is a Chartered Accountant with background in Company Secretarial Practice, Corporate Governance and Management, and holds a Bachelor’s Degree in B.Com (Hons) and Law(I) from the University of Jodhpur, India.
Prior to joining Dangote Sugar Refinery Plc, Mr. Singhvi had served as the Managing Director & CEO of NSL Sugar Limited, Hyderabad, India, and Managing Director, EID Parry (1) Limited, Chennai, India, one of top three sugar producing companies in India.
ENDSARS
IGP says protesters attacked 205 public, private facilities
Data collated when the #End SARS peaceful protest started indicated that 14 states recorded major violence.
The Nigerian Police Force has stated that about 205 critical national security assets, corporate facilities and private properties were razed down and vandalized during the EndSARS protest, which was hijacked by hoodlums and arsonists.
This was disclosed by Mr Mohammed Adamu, the Inspector-General of Police, during a virtual conference of Senior Police Officers in Abuja, according to a news report by NAN.
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Adamu disclosed that data collated between Oct. 11, when the #End SARS peaceful protest started as a demonstration, and Oct. 27, after it was hijacked by the vandals, indicated that 14 states recorded major violence.
He said that some of the states severely affected by this civil unrest are Lagos, Edo, Delta, Oyo, Kano, Plateau, Osun, Ondo, Ogun, Rivers, Abia, Imo, Ekiti, and the Federal Capital Territory (FCT).
READ: #EndSARS: Joe Biden issues press release on violent crackdown of Protesters in Nigeria
The violence had resulted in attacks on critical national security infrastructure, other corporate and private properties, as well as injuries or fatalities to civilians, the police, and other security agents.
READ: #EndSARS: IMF Links protests to economic difficulties
What you should know
- 71 public warehouses and 248 privately owned stores were looted in the course of the protests nationwide.
- 51 civilian fatalities with 37 injured, and 22 policemen gruesomely murdered with 26 others injured were recorded during the protest.
- 10 firearms, including 8 AK 47 rifles, were carted away during the attack on police stations, and a locally made pistol had been recovered from elements operating under the guise of the EndSARS protest.
- 1,596 suspects have so far been arrested in connection with the violence and widespread looting across the country.
Explore the Advanced Financial Calculators on Nairametrics
Macro-Economic News
Nigeria’s food Inflation rises by 110.5% in five years
Nigeria’s Food Inflation has risen by 110.5% between September 2015 and September 2020.
Nigeria’s food inflation has risen by 110.5% in 5 years, between September 2015 and September 2020.
A comparison of the Composite Food Index within the period under review indicated that food inflation rose from 181.8 index points to 382.7 index points.
This means that the price of food items has not only increased, but more than doubled in the last five years of President Muhammadu Buhari’s administration.
READ: UPDATED: Inflation rate jumps to 12.40%, highest in over 2 years
Explore the Advanced Financial Calculators on Nairametrics
Similarly, the All Items Index rose by 92.4% during the same period.
Food items that have witnessed significant increases
Data obtained from Nairalytics, the research arm of Nairametrics, revealed that:
- Foreign rice (Caprice) which sold for an average of N14,500 as of May 2019 is now sold for an average of N30,000.
- A 50kg bag of Ijebu garri that sold for N7,200 in May 2019, now costs N13,700.
- A 25-litre keg of vegetable oil sold for N9,750 in May 2019, now sells for N14,625.
- A piece of frozen fish which cost N417 in May 2019, now sells for N625.
READ: Buhari’s CBN policies may drag Nigerian economy into crisis – Fitch
READ: Debt servicing gulps N7.04 trillion under President Buhari’s administration
Why are the figures going up?
The hike in the cost of staple food items could be attributed to the border closure directive of the federal government that was announced in August 2019.
It is projected to hit 20% by the first quarter of 2021, when the effects of the increase in petrol and electricity prices are accounted for.
Also, yield per hectare for most farming is well below global standards, driving up the cost of whatever is left to be sold to Nigerians.
Farmers also face insecurity, flooding, and sometimes famine affecting their ability to plant and harvest. Even after harvesting, supply chain challenges still persist, leaving farmers to contend with middlemen, transportation, and storage. The result is far less farm produce reaching the final consumer.
READ: Sanusi declares Nigeria under Buhari a Bankrupt Nation
READ: Nigeria must keep inflation down to maximise full potential – IMF
What they are saying
Prof. Steve Hanke, an American Applied Economist at the Johns Hopkins University in Baltimore, Maryland, USA, expressed his dissatisfaction over the performance of Buhari’s administration.
According to him, the Federal Government could do more than what it is doing; he described the administration as a failure over security of its citizens, unemployment, and inflation.
He tweeted, “President Muhammadu Buhari has failed. Nigeria is in the grip of chaos. Bandits control major highways.
“The government can’t protect its own citizens from Boko Haram or the corrupt Police. Unemployment stands at 27.1%, and Inflation, which I accurately measure every day and that soars at 30.37%/yr.”
READ: Nigeria’s inflation rate rises to 12.56% in June, as food prices surge
READ: More agriculture loans but longstanding bottlenecks remain
.@MBuhari has failed. #Nigeria is in the grip of chaos. Bandits control major highways. The government can’t protect its own citizens from #BokoHaram or the #Corrupt police. #Unemployment stands at 27.1%, and #Inflation – which I accurately measure every day – soars at 30.37%/yr. pic.twitter.com/LZOzHWkiau
— Prof. Steve Hanke (@steve_hanke) October 28, 2020
READ: Northern States worst hit as Nigeria’s inflation jumps to 11.85% in November
What you should know
- On October 15, 2020, Nairametrics reported that Nigeria’s inflation rate rose to 13.71% (year-on-year) in September 2020, indicating 0.49% point higher than 13.22% recorded in August 2020. This was contained in the Consumer Price Index (CPI) report, released by the National Bureau of Statistics (NBS) about two weeks ago.
- According to the report, Nigeria has endured persistent increase in inflationary rate —growing from 12.13% in January to 13.71% in September—the highest recorded in 30 months.
- A closely watched component of the food inflation index rose by 16.66% in September 2020 — a 0.66% increase compared to 16% recorded in the previous month.
- On a month-on-month basis, the food sub-index rose by 1.88% compared to 1.67% recorded in August 2020.
- Meanwhile, the rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fish, fruits, and oils and fats.
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