The Securities and Exchange Commission (SEC) has declared the activities of Famzhi Interbiz Limited illegal as neither the company nor their products are registered or regulated by the Commission.
This disclosure was made by Mrs Efe Ebelo, the Head, Corporate Communication of SEC.
According to the Commission, despite that the company has not been registered by the Commission, the company had gone ahead to solicit funds from the investing public on product(s) neither registered nor approved by it.
The Commission is also quite displeased that Famzhi Interbiz is also making promises to unsuspecting investors of guaranteed return on investment, in clear violation of the Securities and Investment Act (ISA) 2007, stating,
- “The attention of the SEC has been drawn to the illegal fund management operation conducted by Famzhi Interbiz Limited. The Commission wishes to inform the public that the company is not registered to operate in the Nigerian Capital Market. The company had applied to the Commission for registration to operate in the capital market, but was unable to fulfil certain regulatory pre-conditions required for the registration.”
What you should know
- Famzhi Interbiz Limited and its products are not registered and regulated by the SEC.
- The company has been duly referred to the appropriate law enforcement agency for criminal investigation and possible prosecution for violation of the Investments and Securities Act and other relevant laws in the country.
- Members of the public are required to always confirm the registration status of any entity offering fund management or any other capital market services from its website https://sec.gov.ng/cmos/ or by visiting any of the Commission’s offices.
- The commission warns that any person who subscribes to any product of an unregistered entity or enters into any dealing with an entity does so at his/her own risk.
FEC approves new Debt Management strategy for 2020–2023
The FEC has approved a new Medium Term Debt Management Strategy (MTDS) for Nigeria.
The Federal Government has indicated it is looking inward as far as debt is concerned.
This point was unscored in the approval of the medium term Debt Management Strategy for the period 2020-2023 as disclosed by the Debt Management Office (DMO) in a statement issued on Wednesday after the FEC held its meeting in Abuja.
The MTDS policy as a document tries to articulate the debt mix of the government considering the cost and risk trade-offs that best suit the country’s broader macroeconomic and public debt management
It stated, “The MTDS, 2020-2023 has been prepared by the DMO, in collaboration with Federal Ministry of Finance, Budget and National Planning and the Central Bank of Nigeria.
“Other collaborating stakeholders are the Budget Office of the Federation, National Bureau of Statistics and the Office of the Accountant-General of the Federation.”
What has changed
With the new strategy, a larger proportion of new borrowing will be from domestic sources using long-term instruments while for External Borrowing, concessional funding from multilateral and bilateral sources will be prioritised.
Also, the target of fiscal sustainability has been increased from 25% (MTDS, 2016-2019) to 40% in the new strategy.
In simple language, the government wants to increase borrowing from 25% of GDP to 40%. While this will provide investment outlets to investors and mop up cash and calm inflation rate, it will also put a lot of pressure on the domestic debt market, interest rate and liquidity.
The target, according to DMO, was increased to accommodate new borrowings to fund Budget Deficits and other obligations of Government; Promissory Notes to be issued to settle Government Arrears; and, the Ways and Means Advance at the Central Bank of Nigeria.
DMO added that the strategy would sustain the issuance of longer-tenored instruments with tenors of 10 years and above, in order to effectively manage Refinancing Risks.
Why it matters
The new debt policy has to be reworked in light of the current global pandemic, reduced revenue from shock and volatility in the oil market. The public works in the budget will be funded, indicating there is a low likelihood of project abandonment.
Government appetite for debt seems to have found some cover or justification from the assertion by DMO that Nigeria is still well below the threshold 55% for countries in Nigeria’s peer group, but massing debt could constraint government flexibility in public finance in the coming years and reduce monetary policy tool available to CBN.
Ecobank Nigeria to launch $300 million senior notes on International Debt Market
Ecobank Nigeria has announced that it is seeking to raise $300 million from the international debt capital market through the issuance of senior notes.
Ecobank Nigeria, a subsidiary of Ecobank Transnational Incorporated (‘’ETI’’) has announced that it is seeking to raise $300 million from the international debt capital market through the issuance of senior notes.
This is contained in a disclosure signed by the Group Head, Adenike Laoye and published on the website of the Nigerian Stock Exchange (NSE).
According to the bank, the proceeds from the Eurobond will help to provide medium-term funding for the company and also help to enhance its capacity to support international trade and service in Africa.
A part of the disclosure reads, “Ecobank Nigeria Limited (the “Bank”), a key subsidiary of Ecobank Transnational Incorporated (“ETI”) is seeking to raise capital from the international debt capital market through the issuance of US$300 million senior notes (the “Notes”), pursuant to the United States Securities and Exchange Commission Rule 144A and Regulation S (the “Transaction”).”
What you should know
- The Notes will be listed on the London Stock Exchange through a Dutch special purposes funding vehicle.
- The bank also noted that the transaction is subject to prevailing market conditions and the conclusion of the necessary transaction documentation.
- It is important to note that Ecobank Nigeria intends to list the Notes on the London Stock Exchange, with the expectation that the Notes will be traded on its regulated market.
- Also, the Central Bank of Nigeria has confirmed that it has no objection to the Transaction, as stated in the disclosure.
- Recall that Nairametrics reported in January that Ecobank Nigeria announced that it secured a N50 billion, 10-year bilateral subordinated loan with the aim of maintaining stable liquidity and improving its balance sheet.
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