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Spotlight Stories

Dangote Cement commences buy back of 85 million issued shares of the company

The board of Directors of Dangote Cement Plc has announced the commencement of its share buy-back programme.

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Dangote Cement Plc. appoints Ms. Berlina Moroole as non-Executive Director

Dangote Cement Plc has announced the commencement of its share buy-back programme, under the approval granted by the Company’s shareholders at the Extraordinary General Meeting of DCP, held on 21 January 2020.

This announcement was made in a notification issued this morning, the 21 December, before the opening of the stock market. This is also the first share buyback in Nigeria’s stock market history, according to Nairametrics checks.

READ: Africa’s richest man, Aliko Dangote, net worth drops to $15.9 billion

According to the notification, the Share Buy-Back Programme is in line with the framework provided under Rule 398 (3)(xiv) of the Securities and Exchange Commission’s (“SEC”) Rules and Regulations (as applicable) and in accordance with Rule 13.18 of the Rulebook of the Nigerian Stock Exchange (“The NSE”).

READ: Fidelity Bank MD/CEO purchases 5 million additional shares worth N12.97 million

Key highlights from the notification

  • Based on the aforementioned shareholders’ approval, the number of shares to be repurchased under the Share Buy-Back Programme will not exceed 10% of DCP’s issued capital.
  • The Programme will be effected in tranches, as the first tranche under the Company’s share buy-back programme will commence on the 30th of December 2020, and will be completed on the 31st of December 2020.
  • During this period, the approved brokers of the company would purchase up to 85,202,537 fully paid-up ordinary shares of 50 Kobo each, representing 0.5% of the entire current issued shares of 17,040,507,404 ordinary shares.
  • The first tranche under the Company’s Share Buy-Back Programme will be executed by Meristem Stockbrokers Limited and Vetiva Securities Limited, the appointed stockbrokers of the Company under the programme. The stockbrokers will at their discretion purchase DCP shares in the open market between 30th and 31st December, subject to prevailing market conditions and under the current daily trading rules of the NSE.
  • The shares being bought back by the Company under the Share Buy-Back Programme will be held as treasury shares, and may subsequently be cancelled. Execution of this Tranche I is not expected to have any material impact on the Company’s financial position.

READ: Ikeja Electric tops with 10.7% approved meter allocation – NERC

What you should know

Nairametrics reported a year ago that the Board of Directors of Dangote Cement Plc announced it would convene an extra-ordinary general meeting (EGM) of shareholders for January 22, 2020, in a bid to obtain shareholders’ approval to amend its Articles of Association, which would enable the Company to undertake a share buy-back of up to 10 percent of its issued shares, in line with the concluded arrangement.

READ: FCMB postpones issuance of its recently announced Commercial Paper worth N30 billion

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What to expect

  • Shareholders seeking to participate in the first Tranche under the Share BuyBack Programme are hereby advised to contact their stockbrokers or any other independent professional adviser registered as a capital market operator by the SEC for further guidance on the submission of trades.
  • Dangote Cement will provide weekly updates on the progress of the First Tranche of the Programme on its website over the duration of this tranche.
  • However, the Company will continue to monitor the evolving business environment and market conditions, in making decisions on further tranches of the Share Buy-Back Programme.
  • Upon the completion of this programme, an announcement will be published on the website of the company and issued on the website of the Nigerian Stock Exchange, in line with the exchange and the company’s policy on full disclosure.

READ: Banks to lose interest on petrol subsidy-induced loans

Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor.

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Economy & Politics

Top States in Nigeria with highest IGR per population in 2020

Nairametrics ranks the 36 states of the Federation, including the Federal Capital Territory, based on their IGR per population.

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Nigeria’s states generated a sum of N1.31 trillion internally in 2020, representing a marginal decline compared to N1.33 trillion recorded in 2019, and an increase compared to N1.17 trillion in 2018.  

The downturn is attributable to reduced state revenue as a result of disruptions caused by the covid-induced lockdown, while the crash in crude oil prices also hampered economic growth. 

Internally generated revenue is regarded as income generated by various states in the country, independent of their share of revenue from the Federation account. However, apart from the clear exception of Lagos State, all others depend largely on statutory allocations to run their state affairs. 

Nairametrics ranks the 36 states of the Federation, including the Federal Capital Territory, based on their IGR per population, taking into account the estimated population size of each state as at 2016 and 5% growth rate between 2016 and 2020.  

Geo-political zones 

In terms of IGR per population for the six geo-political zones in Nigeria, South West takes the lead with an average of N13,966, having generated a sum of N561.01 billion and an estimated population of 40.17 million people. The South-South region followed with an average of N8,694 and a total aggregate IGR of N263.17 billion.  

On the flip side, the North-Eastern region, which houses states like Bauchi, Borno, Yobe, etc. recorded the lowest IGR per population of N2,061 closely followed by North West with an average of N2,855. 

Here are the top 5 states with the highest IGR per population in 2020. 

Lagos State – N31,794 

Lagos State, regarded as the economic hub of the nation, with a total estimated population of 13.18 million people as of 2020generated a sum of N418.99 billion as IGR in 2020. This represents an increase of 5.1% compared to N398.73 billion recorded in 2019. 

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  • In terms of IGR per capita, Lagos State generated an average of N31,794 from each member of the population in 2020, as against N30,257 generated in the previous year. 
  • It is no surprise that Lagos State tops the rank, being a major epicentre for economic activities in the country. Lagos State is the largest city in Africa in terms of GDP, and the State is widely known for its large industries, with most corporations in the country headquartered within the state. 
  • It also houses major seaports in the country as well as the State Government’s aggressive taxation policies. These, amongst others, ensure the state makes more revenue internally compared to other states of the Federation. 
  • According to data obtained from the National Bureau of Statistics, Lagos State received a total of N115.93 billion as Federal allocation in the year 2020, representing 21.67% of the total revenue available to the state in the year. 
  • This shows the exceptional ability of the state to run its affairs, using its internally generated revenue with little or no support from the Federal purse. 

Abuja – N24,600 

The Federal Capital Territory generated a sum of N92.06 billion in 2020, the third-highest state IGR in the year. However, based on IGR per population Abuja seats in second position with an average of N24,600. 

  • This represents a 23.5% increase when compared to N19,925 recorded in 2019. 
  • Abuja is the capital territory of Nigeria, with a total estimated population of 3.74 million people across a 7,315km square area. 
  • The state houses a lot of Federal ministries, having been made the country’s capital in 1991. Abuja is also a major conference centre in the country, as it hosts various meetings and summits annually. 
  • A cursory look at the data showed that the state’s IGR only accounted for 57.85% of the total available revenue, indicating that 42.15% of its revenue was gotten from the Federation account. 

Rivers State – N15,281 

Rivers State, being a major oil-producing state in the country, generated a sum of N117.19 billion as internally generated revenue in 2020. 

  • However, with an estimated population of 7.7 million people, its IGR per population stood at N15,281 in 2020, representing a decline of 16.5% when compared to N18,307 recorded in 2019. 
  • Rivers State is in the Niger Delta region of the country with much of the businesses in the state being oil exploration companies. 
  • Evident from the data obtained from the NBS, Rivers State relies heavily on statutory allocations from the Federal Government as well as their share of the 13% oil derivatives as it received a total of N141.19 billion from FAAC, representing 54.64% of the total available revenue in the review period. 

Delta State – N10,045 

Delta state, another state in the Niger Delta region of the country, with an estimated population of 5.9 million, generated a sum of N59.73 billion as IGR, and an average of N10,045 as IGR per population. 

  • Delta State is a major oil-producing state and ranks second to Rivers State. The State supplies about 35% of Nigeria’s crude oil and some considerable amount of natural gas.
  • Delta State in the period received a sum of N186.83 billion as statutory allocation in 2020, thereby taking a huge part (75.8%) of the total revenue available to the state.
  • Its IGR only accounted for 24.2% of the available revenue in the period, while N46.11 billion was generated as PAYE. 

Ogun State – N9,263 

Ogun State, a neighbouring State of Lagos State, generated a sum of N50.75 billion. In terms of IGR per population, the State generated a sum of N9,263. 

  • The State’s average income per population decreased by 28.4% compared to N12,945 recorded in 2019. 
  •  The State is strategically located, bordered to the East by Ondo State, to the North by Oyo and Osun States, to the South by Lagos State and the Atlantic Ocean, and to the West by the Republic of Benin. 
  • Ogun State also joins the list of states that are much dependent on FAAC allocations as statutory payments stood at N37.7 billion, representing 42.61% of the total revenue. 

Bottom five 

Katsina – N1,386 

Jigawa – N1,416 

Jaiz bank

Benue – N1,736 

Niger – N1,804 

Bauchi – N1,821 

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Coronavirus

Covid-19: FCT to end vaccination May 14

The FCT Primary Health Care Board (FPHCB) announced it would end the first round of Covid-19 vaccination on the 14th of May.

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The FCT Primary Health Care Board (FPHCB) announced it would end the first round of Covid-19 vaccination on the 14th of May.

This was disclosed by Mrs Salome Tor, Programme Officer, FPHCB in a meeting with newsmen on Friday.

She disclosed that the FCT received 248,400 doses of vaccine and has successfully vaccinated  96,559 as of May 6, 2021, thanks to a team of 169 health workers.

“We have a minimum of three health workers in each team, they have all been distributed into the six area council. All the government hospitals in the FCT are selected locations for this vaccination.

“We also have temporary fixed post team; these are special teams who visit various organisations or special location. We urge people to go and vaccinate before the exercise closes,” she said.

The FPHCB added that Nigerians still need to get vaccinated and urged for the media’s participation in spreading awareness of the vaccination drive.

“We need at least seven out of 10 people to be vaccinated to be able to withstand the SARS 2 virus of COVID-19. I consider that as a deliberate hazard that will become hazardous to the community, so we advise that people shouldn’t put themselves in that position, they should go ahead and take the vaccine.

“We started this vaccination in FCT on March 15, the country at large started it on March 5, we have not seen anybody who complains of the vaccine in FCT, maybe blood clot or death.

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“Why are people waiting, they should go ahead and take this vaccine in the health facility within the 62 wards of the FCT, the vaccine is safe,” the healthcare board said.

What you should know

The National Primary Health Care Development Agency announced that as of May 7, 2021, it had vaccinated 1,615,787 residents, which is 80.3% of its proportion.

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