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Category: Business and Economy

COVID-19 lockdown: NSE to sustain remote trading
The Nigerian Stock Exchange (NSE) has assured investors of seamless trading during the 14 days lockdown to stem the spread of coronavirus in the country.
The exchange gave the assurance in a statement issued in Lagos by Mr Olumide Orojimi, Head, Corporate Communications.
Orojimi said the exchange would sustain remote trading activities at normal hours and days in line with the guidance provided by the World Federation of Exchanges.
The Federal Government has announced restriction of all movements in Lagos and Ogun States as well Abuja for an initial period of 14 days.
He noted that the exchange was very supportive of the steps aimed at flattening the rising curve of COVID-19 cases in Nigeria.
“Since the outbreak of this pandemic, financial markets, particularly the capital markets around the world, have seen levels of volatility that are only comparable to the global financial crisis of 2007/2008.
“To maintain the integrity of our market and in order for us to continue to stimulate economic growth, we activated our business continuity plan on March 23.
“Through this activation, we have: continued trading during normal hours and days by providing remote trading access for Dealing Member Firms.
“The ability of our financial and money markets to continue to operate during this crisis is a testament to a well-functioning economy,” he said.
Orojimi said that the Minister of Finance and the Governor of the Central Bank of Nigeria had received presidential approval to include the financial system and money markets in the list of exempted services from the lockdown.
“Given this new pronouncement, we will sustain our remote trading activities at normal hours and days, in line with the guidance provided by the World Federation of Exchanges.
“To comply with government directive, we have activated the second phase of our business continuity plan that will see our essential staff move into a secured accommodation close to our offices with adequate arrangements for healthcare and other matters necessary to their wellbeing.
“Access to our offices will be restricted to these essential staff who will ensure smooth remote trading and provide remote technical support to Dealing Members.
“We will also continue to provide remote access to listed companies and issuers during this period.
“While we hope for a quick end to this pandemic, we encourage everyone to maintain precautions, take responsibility for others by observing social distancing and practicing personal hygiene.
“Most importantly, we advise that you comply with guidelines issued by relevant health agencies of government towards curtailing the spread of the virus in our beloved country,” he said. (NAN)
March 30, 2020
Coronavirus: Nigerian Breweries postpones 2019 AGM
Nigerian Breweries (NB) Plc has announced the postponement of its 74th Annual General Meeting (AGM) slated for April 22.
Mr Uaboi Agbebaku, NB Company Secretary, stated this in a notice to the investing public and the Nigerian Stock Exchange (NSE).
Agbebaku said the company’s Board of Directors took the decision to postpone the AGM due to the outbreak of the Coronavirus (COVID-19) pandemic.
He said that the board took the decision to ensure full compliance with all health and safety directives issued by the Federal and State Governments in a bid to control and curb the spread of the virus.
According to him, a new date for the AGM will be decided on in due course and communicated accordingly.
Some quoted companies listed on the Nigerian Stock Exchange have already notified the market about the postponement of their AGMS due to the outbreak of COVID-19.
Prominent among the firms that have postponed their AGMs are UBA, Transcorp, Transcorp Hotels, United Capital, Africa Prudential and Notore. (NAN)
March 30, 2020
Operations continue at the ports — NPA
Nigerian Ports Authority (NPA) on Monday said that operations would continue at the ports in spite of the two-week lockdown of Lagos State to contain spread of COVID-19.
Mr Adams Jatto, General Manager, Corporate and Strategic Communications of NPA, made this known in a press statement in Lagos.
“Consequent to the directive of President Muhammadu Buhari that Lagos seaports, (Apapa and Tin Can Island Ports), should remain open in the duration of the two-week lockdown of Lagos State, NPA states as followed.
“NPA hereby assures all stakeholders that arrangements have been made for operations at the ports to continue without hindrance.
“Safety procedures, which will guarantee the well being and security of stakeholders and staff have been put in place and all are advised to kindly comply with directives of port officials.
“All other government agencies responsible for smooth operations at the ports are enjoined to be at their respective duty posts to discharge their functions in line with the presidential directive of maintaining operational functions at the Lagos ports,” he said.
Jatto pointed out that the management of NPA assured all stakeholders of its commitment to facilitation of trade in Nigeria.(NAN)
March 30, 2020
ATMs, e-payment platforms will be functional during lockdown – FG
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, and the Central Bank of Nigeria Governor, Mr Godwin Emefiele, have said that the financial sector will continue to perform skeletal services during the two weeks restrictions placed on movement by the Federal Government.
They said this in a statement jointly signed by them and made available to journalists in Abuja.
The statement said that exemptions have been obtained from the President to allow very skeletal operations in the financial system and money markets.
This, it said, was needed to keep the system in light operations during this time.
To this end, the statement said all relevant staff of affected outfits and agencies should look out for further instructions from their immediate bosses.
“To ensure that Nigerians can still perform online transactions and use ATMs whilst observing these restrictions, we will like to inform the general public and all affected stakeholders that we have obtained exemptions from the President to allow very skeletal operations in the Financial System and Money Markets in order to keep the system in light operations during this time.
“We are mindful of the difficulties these restrictions would bring on ordinary Nigerians and are grateful to the President for approving these exemptions, which should help ease some of these burdens.
“We urge all Nigerians to be patient, cooperative and united as all hands are on deck to defeat this virus,” it stated.
The statement said the restrictions are critical to significantly reduce the transmission rate of the disease and make it much easier for the health professionals to trace, test and isolate patients.
March 30, 2020
[BREAKING]COVID-19: UK’s prime minister, tests positive
The United Kingdom Prime Minister, Boris Johnson, has tested positive for coronavirus (COVID-19), Downing Street revealed in an emailed statement on Friday.
After experiencing mild symptoms yesterday, he was tested for coronavirus on the personal advice of England’s Chief Medical Officer, Professor Chris Whitty said.
More details coming…
March 27, 2020
COVID-19: NASSI decries slow pace in commercial activities
The Nigerian Association of Small Scale Industrialists (NASSI), has decried the slow pace in commercial activities facing the chain of manufacturing, distribution and consumption in Nigeria due to COVID-19 pandemic.
Dr Solomon Vongfa, National President of NASSI, in a statement on Thursday in Abuja said that the pandemic had crippled the commercial life of the Micro, Small and Medium Enterprises (MSMEs) across the nation.
Vongfa stated that the MSME’s occupied more than 70 per cent of Nigerian work force.
According to him, the current global health challenge has forced members of this productive sector to shut down their plants and companies across the country, thus running at a loss.
As a solution, the NASSI president requested the kind assistance of the Federal Government to support the MSME’s in order to revive and stimulate their businesses.
He also appreciated the Federal Government efforts and in particular the current release of N50 billion intervention fund through the Central Bank of Nigeria to support the growth of MSME’s nationwide.
In addition, he solicited for immediate support by the Federal Government through the Ministry of Industry, Trade and Investment to aid the MSME’s family at this period of global health challenge.
“The development of Nigerian economy to compete globally can be spurred by major stakeholders through the application of local content and looking inwards to Nigeria local resources.
“This will naturally stimulate industrialisation, create wealth and reduce crime in a nation of more than 200 million people,” he said.
He, however, expressed appreciation to the entire MSMEs sector and Nigerians for their patience during this trying period. (NAN)
March 26, 2020
Shareholders applaud GTBank’s decision to hold AGM by proxy
Shareholders of Guaranty Trust Bank (GTBank) Plc. on Thursday lauded the bank’s decision to go ahead with the 2019 Annual General Meeting (AGM) in spite of COVID-19.
The shareholders made the commendation in an interview with the News Agency of Nigeria (NAN) in Lagos, while reacting to the bank’s plan to hold AGM slated for March 30 by proxy, to minimise social contact.
GTBank on March 25, in a notice to its shareholders and the Nigerian Stock Exchange (NSE), said that the Corporate Affairs Commission granted its request to hold the meeting by proxy.
According to Investopedia, proxy is an agent legally authorised to act on behalf of another party or a format that allows an investor to vote without being physically present in a meeting.
Shareholders not attending a company’s AGM may vote their shares by proxy by allowing someone else to cast votes on their behalf, or they may vote by mail.
The bank had expressed concerns over the health hazards arising from the coronavirus pandemic, which could heighten by public gatherings.
“We are pleased to inform you that the Corporate Affairs Commission has graciously approved that the AGM should hold with attendance by proxy, to minimise social contact.
“Shareholders are encouraged to appoint proxies to represent them at the meeting, as the company would abide by the Lagos State Government directive of not having more than 25 people in a gathering (or any number as may be permitted at the date of the meeting),” the bank said in the notice.
Commenting on the issue, Mr Moses Igbrude, immediate Publicity Secretary, Independent Shareholders Association of Nigeria (ISAN), commended the bank for the idea.
“Necessity, they say, is the mother of invention.
” Many companies postponed their AGMs because of COVID-19 pandemic, but GTBank decided to be strategic by exploiting other available ways of holding AGM instead of postponing it and delaying dividend payment which shareholders need most at this critical time,” Igbrude said.
The shareholder activist said that the bank had proved to be strategic and innovative.
He said that ISAN had nominated its Founder, Mr Sunny Nwosu, to be its proxy at the AGM.
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., also hailed the bank for the initiative.
“It is a welcome development.
“The bank has domonstrated commitment to creating value for its shareholders for having faith in its management.
“It is also an indication that investors will get their dividends needed at this trying period,” Omordion said. (NAN)
March 26, 2020
Coronavirus: FMDQ Group activates remote working for all stakeholders
FMDQ Group on Thursday activated remote working for all its employees to manage coronavirus pandemic to keep employees and families safe.
Mr Bola Onadele, FMDQ Group Chief Executive Officer made this known in a message to all its stakeholders titled “COVID-19 Update- A message from our Chief Executive Officer’’.
“Upon careful consideration of the situation, and in a bid to do our part to manage the pandemic, keep employees and their families safe, FMDQ Group, effective March 26, has activated remote working for all its employees.
“To ensure that business operations continue to run seamlessly, all employees have been equipped with adequate business communications and efficiency tools to enable them work effectively from home.
“We are fully aware that as a financial market infrastructure group in Nigeria, providing listing, trading, clearing, settlement, data and information services, our role and mandate remain critical to the functioning of the Nigerian financial markets.
“In view of this, FMDQ Group has taken deliberate steps to implement measures that will uphold the sanctity of our markets and ensure continued operational excellence.
“We have fully activated our Business Continuity Management Plan which supports all our business services and operations, allowing our members, clients and other stakeholders to conduct their business on our platforms as normal.
“All our trading platforms, operated by FMDQ Exchange – FMDQ-Bloomberg E-bond Trading System (E-bond), Thomson Reuters Foreign Exchange Trading (TRFXT) System, FMDQ Clients’ Trading, Reporting & Surveillance System (PenDealer), FMDQ Trading, Reporting and Surveillance System for FMDQ Dealing Members (Specialists), among others are web-based and can fully support remote trading by our members,’’ Onadele said.
According to him, its proprietary clearing and settlement system, FMDQ Q-ex System also web-based, can be accessed remotely, thereby ensuring that all related services are seamlessly conducted by its clearing and settlement subsidiaries, FMDQ Clear and FMDQ Depository, respectively.
“While we are exercising all best efforts to ensure business continuity for the market operations, we expect that all our relevant stakeholders have also actively implemented contingency and business continuity plans as necessary to ensure we minimise any disruptions to the Nigerian financial market.’’
March 26, 2020
NSE returns to negative posture, indices down by 0.05%
Trading on the Nigerian equity market returned to negative territory on Wednesday with 0.05 per cent dip or losses in MTN Nigeria and six other stocks.
Consequently, the All-Share Index dropped 11.68 points or 0.05 per cent to 21,729.48 compared with 21,741.16 recorded on Tuesday.
Also, the market capitalisation dipped N6 billion or 0.05 per cent to close lower at N11.323 trillion against N11.329 trillion on Tuesday.
The Exchange has commenced full remote trading following the raging COVID-19 in the country.
The downturn was impacted by losses recorded in medium and large capitalised stocks, among which were-Total Nigeria, MTN Nigeria, Africa Prudential, FCMB Group and GlaxoSmithKline.
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said market players were still interpreting the outcome of the Monetary Policy Committee (MPC) meeting.
“We expect mixed performance to continue, as market players interpret the outcome of MPC and expected impact of the stimulus package on the economy,” Omordion stated.
He added that the postponement of Annual General Meetings (AGMs) due to coronavirus was taking toll on the market.
Total Nigeria led the losers’ chart in percentage terms, dropping by 10 per cent to close at N96.30 per share.
Africa Prudential followed with 9.87 per cent to close at N3.47, while Jaiz Bank declined by 8.16 per cent to close at 45k per share.
FCMB Group depreciated by 3.85 per cent to close at N1.50 and MTN Nigeria declined by 2.91 per cent to close at N100, per share.
Conversely, Cutix recorded led the gainers’ chart in percentage terms, gaining 10 per cent, to close at N1.32 per share.
Cadbury followed with a gain of 9.71 per cent to close at N5.65, while Neimeth, Prestige Assurance, Union Diagnostic, United Bank for Africa and Wapic Insurance appreciated by 9.09 per cent each to close at 48k, 60k, 24k, N4.80 and 24k per share.
PZ improved by 8.64 per cent to close at N4.40, while Wema Bank appreciated by 8.33 per cent to close at 52k per share.
Similarly, the volume of shares traded declined by 29.27 per cent as investors bought and sold 233.47 million shares worth N2.24 billion in 3,874 deals.
This was against 330.10 million shares valued at N3.57 billion transacted in 4,561 deals on Tuesday.
Transactions in the shares of Guaranty Trust Bank topped the activity chart with 49.68 million shares valued at N847.78 million.
Zenith Bank followed with 44.70 million shares worth N522.19 million, while Access Bank accou Ted for 44.18 million shares valued at N250.26 million.
UBA sold 23.25 million shares worth N109.897 million, while FBN Holdings traded 18.57 million shares valued at N74.66 million. (NAN)
March 26, 2020
COVID-19: CBN releases guidelines for operations of N100bn credit support for healthcare
The Central Bank of Nigeria (CBN) has released guidelines for operations of N100 billion credit support for the healthcare sector following the outbreak of COVID-19 in the country.
In a circular signed by Mr Kevin Amugo, Director Financial Policy Regulation Department on Wednesday, the apex bank indicated that indigenous pharmaceutical companies and healthcare practitioners that wanted to expand or build their capacities would benefit from the scheme.
CBN had earlier announced the N100 billion intervention for the healthcare industry to strengthen the sector’s capacity to meet potential increase in demand for healthcare and services.
In the guideline, the apex bank noted that the scheme would provide credit to indigenous pharmaceutical companies and other healthcare value chain players intending to build or expand their businesses.
The CBN said the scheme was also expected to increase private and public investment in the healthcare sector, facilitates improvement in healthcare delivery and reduce medical tourism to enhance foreign exchange conservation.
The bank further explained that the objective of the scheme was to provide long-term low cost finance for healthcare development that would lead to the evolvement of world-class healthcare facilities in the country.
According to the bank, the scheme will improve access to affordable credit by indigenous pharmaceutical companies to expand their operations and comply with the World Health Organisation’s good manufacturing practices.
The CBN noted that the eligible participants under the scheme were healthcare products manufacturers and pharmaceutical equipment.
It added that others are healthcare service providers, medical facilities, pharmaceutical and medical products distribution and logistics services among others.
The CBN said the Deposit Money Banks and Development Finance Institutions were eligible to disburse the fund. (NAN)
March 26, 2020