The equities market depreciated by N49bn as Diamond Bank Plc, CAP Plc and PZ Cussons Nigeria Plc emerged as top losers at the close of trading on the Nigerian Stock Exchange’s floor on Thursday.
The NSE market capitalisation dropped to N9.369tn from N9.418tn recorded on Wednesday, while the All-Share Index also slid to 27,280.95 basis points from 27,421.83 basis points.
A total of 243.608 million shares valued at N2.556bn were traded in 3,647 deals.
The market went as high as 27,425.86 basis points in the course of trading, while the lowest and average index points stood at 27,272.14 and 27,359.15 basis points, respectively.
A total of 24 stocks depreciated with Oando Plc and 7UP Bottling Company Plc following after the top three losers.
The share price of Diamond Bank depreciated by N0.12 (9.09 per cent) to close at N1.20 from N1.32, while that of CAP posted a loss of N1.67 (five per cent) to close at N31.73 from N33.40.
The PZ shares also slid by N0.95 (five per cent) to close at N18.05 from N19, while Oando shares depreciated by N0.28 (4.91 per cent) to close at N5.42 from N5.70.
The 7UP share price closed at N102.60 from N107.86, losing N5.26 (4.88 per cent).
Other losers were Vitafoam Plc, Sterling Bank Plc, Fidelity Bank Plc, Livestock Feeds Plc, Ecobank Transnational Incorporated Plc, Lafarge Africa Plc, Zenith Bank Plc, FCMB Group Plc, Transnational Corporation of Nigeria Plc, United Capital Plc and NEM Insurance Company Nigeria Plc.
Guaranty Trust Bank Plc, United Bank for Africa Plc, FBN Holdings Plc, Nigerian Breweries Plc, Red Star Express Plc, Access bank Plc and Custodian and Allied Plc also recorded losses in their share prices.
On the other hand, the market recorded gains of various degrees on 14 stocks.
International Breweries Plc, Wema Bank Plc, Africa Prudential Registrars Plc, Dangote Flour Plc and Airline Services and Logistics Plc emerged as the top five gainers at the close of trading.
The shares of International Breweries soared by N1.12 (5.93 per cent) to close at N20 from N18.88, while those of Wema Bank closed at N0.73 from N0.70, gaining N0.03 (4.29 per cent).
The share price of APR rose to N2.76 from N2.63, gaining N0.11 (4.15 per cent), while Dangote Flour shares appreciated by N0.17 (4.08 per cent) to close at N4.34 from N4.17.
Other gainers were the NPF Microfinance Bank Plc, Stanbic IBTC Holdings Plc, Fidson Healthcare Plc, Forte Oil Plc, AIICO Insurance Plc, Nascon Allied Industries Plc and Dangote Cement Plc.
The Central Bank of Nigeria has ordered workers in all the 19 Deposit Money Banks in the country to declare their assets. The move analysts say looks like the Federal Government is beginning to expand its ongoing anti-corruption crusade to the private sector, especially the banking industry.
The directive, which came in a letter through the Banking Supervision Department of the CBN to all the 19 commercial banks in the country about four weeks ago, gave bank officials only one week to complete the assets declaration process, sources close to the DMBs said.
As of Thursday, investigation by our correspondent revealed that all the staff members of Ecobank Nigeria, First City Monument Bank Limited and Fidelity Bank Plc had complied with the directive.
Top officials of Ecobank, Fidelity Bank and FCMB, among others, confirmed the development. The workers said there was a directive from their management asking them to comply within one week.
Narrating his experience, a top official of one of the tier-1 banks, who spoke on condition of anonymity because he was not authorised to speak on the matter, said, “All our staff members, from the most junior to the most senior, were asked to declare their assets through a court affidavit. It was handled by the company’s lawyer.
“We were asked to declare all our assets, including developed and undeveloped parcels of land, properties, houses in Nigeria and outside Nigeria etc. We were asked to also declare everything, including power generators at home. We complied within one week.”
Top bank executives said the move by the apex bank was not unconnected to the Federal Government’s plans to extend its anti-corruption crusade to the private sector.
It was also gathered that fear had descended on bank workers, especially top officials whose assets were beyond their means.
It was learnt that the fear that the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission might soon begin the examination of the details of the assets declaration forms vis-à-vis the properties some top banker own.
Some top bankers, who own huge assets, it was gathered, were panicky on how they would be able to justify the huge assets in their names should the EFCC and ICPC come knocking on their doors.
Commenting on the assets declaration, an executive director in one of the top three banks, said, “It is part of the ongoing anti-corruption crusade in the country. The Federal Government is trying to deepen the anti-corruption war in the private sector, and it is believed that the banking sector is a very critical sector. This is why the CBN has been mandated to do this.”
Unconfirmed sources at the CBN said the directive followed a letter from the Code of Conduct Bureau asking the central bank to direct all bank employees to declare their assets with immediate effect.
“The directive is from the Code of Conduct Bureau. It is an extant rule. Before now, most people have not been complying. So the CCB wrote a letter to the CBN reminding it about it. This is why the CBN had to write the banks to comply,” a top official of the apex bank told our correspondent on condition of anonymity.
The spokesperson for the CCB, Mr. Muhammed Idris, did not respond to calls or a text message sent to his mobile telephone.
However, independent findings by our correspondent showed that the CCB’s scope of operations covers only political officeholders.
By law, the CCB is mandated to distribute assets declaration forms to the general public.
The Acting Director, Corporate Communications, CBN, Mr. Isaac Okoroafor, said the assets declaration was not a directive of the apex bank but a statutory requirement in line with the Bank Employees’ Declaration of Assets Act of 1986.
Asked why the CBN was enforcing its compliance at the moment, he said, “Why not now?”
The Bank Employees Declaration of Assets Act Cap B1 Laws of the Federation of Nigeria, 2004 provides for asset declaration by all bank employees.
The Act also empowers the President to extend the application of the law to other categories of persons.
The Nigerian Stock Exchange’s market capitalisation advanced by N52bn at the close of trading on the Exchange’s floor on Wednesday after recording losses of various degree on 21 stocks.
The market capitalisation appreciated to N9.418tn from N9.366tn recorded on Tuesday; the NSE All-Share Index also rose to 27,421.83 basis points from 27,272.14 basis points.
A total of 391.374 million shares worth N3.395bn were traded in 3,103 deals.
The market, in the course of trading, realised a maximum index point of 27,751.34 basis points, while the lowest and average index points recorded were 27,272.14 and 27,453.23 basis points, respectively.
The market recorded gains in 19 stocks.
Ikeja Hotel Plc, UAC Property Development Company Plc, International Breweries Plc, Dangote Flour Plc and Wema Bank Plc emerged as the top five gainers.
The shares of Ikeja Hotel appreciated by N0.09 (five per cent) to close at N1.89 from N1.80, while those of UAC Property closed at N3.90 from N3.72, gaining N0.18 (4.84 [per cent).
Similarly, the share price of International Breweries Plc closed at N18.08 from N18.05, gaining N0.83 (4.6 per cent), while that of Dangote Flour rose to N4.17 from N3.99, appreciating by N0.18 (4.51 per cent).
Wema Bank shares closed at N0.70 from N0.68, gaining N0.02 (2.94 per cent).
Other gainers were Okomu Oil Palm Plc, Glaxo SmithKline Consumer Nigeria Plc, Custodian and Allied Plc, Nigerian Breweries Plc, Access Bank Plc, Total Nigeria Plc, Stanbic IBTC Holdings Plc, Ecobank Transnational Incorporated Plc, United Capital Plc, Guaranty Trust Bank Plc, Continental Reinsurance Plc, United Bank for Africa Plc, Nestle Nigeria Plc and Dangote Cement Plc.
On the other hand, 7UP Bottling Company Plc, Cap Plc, Fidson Healthcare Plc, May and Baker Nigeria Plc and Livestock Feeds Plc were the top five losers at the close of trading.
7UP share price depreciated by N11.64 (9.74 per cent) to close at N107.86 from N119.50; while that of Cap closed at N33.40 from N37, losing N3.60 (9.73 per cent).
Fidson Healthcare recorded a drop of N0.09 (4.84 per cent) on its share price to close at N1.77 from N1.86; while May and Baker shares slid to N1.09 from N1.14, losing N0.05 (4.39 per cent).
The share price of Livestock Feeds also fell to N0.93 from N0.97, losing N0.04 (4.12 per cent).
Other losers were Aiico Insurance Plc, Diamond Bank Plc, Skye Bank Plc, PZ Cussons Nigeria Plc, Transnational Corporation of Nigeria Plc, NEM Insurance Company Nigeria Plc, Dangote Sugar Refinery Plc, Sterling Bank Plc, FCMB Group Plc, Fidelity Bank Plc, Eterna Plc, Nascon Allied Industries Plc and Honeywell Flour Mill Plc.
Flour Mills Nigeria Plc, Airline Services and Logistics Plc and Vitafoam Nigeria Plc also recorded losses on their share prices.
Ghana’s annual consumer price inflation dropped to 16.7 percent in July from 18.4 percent in June as the cedi currency stabilised and food prices fell at the start of the harvest season, the statistics office said on Wednesday.
The West African country has enjoyed general price stability this year compared to last, when water tariffs increased 15 percent and petroleum prices also increased significantly.
“The main reason why we are seeing a drop in July is as a result of base drift and seasonality effects, influenced by stability of the cedi and the beginning of good harvest,” Reuters quoted government statistician Philomena Nyarko to have told a news conference in Accra.
Nyarko said the inflation rate in transport also fell last month compared with last year because fuel prices were stable.
Year-on-year non-food inflation for July was 21.2 percent, down from 24.1 percent in June, while food inflation was unchanged at 8.6 percent, Nyarko said.
Ghana, which exports cocoa, gold and oil, is implementing a three-year aid programme with the International Monetary Fund to remedy fiscal problems including persistently above-target inflation.
Analysts expect further decline in inflation in the months ahead mainly due to a monetary tightening stance held by the central bank, and supported by the harvest season. “We should start to see a faster deceleration in year-on-year inflation, allowing the Bank of Ghana to begin an easing, perhaps as early as its September MPC meeting,” head of Africa research at Standard Chartered Bank, Razia Khan said.
The Federal Government on Wednesday began the review of the National Tax Policy with the inauguration of a committee to carry out the exercise.
The Minister of Finance, Mrs. Kemi Adeosun, who inaugurated the committee at the headquarters of the ministry in Abuja, stated that the government was determined to simplify the country’s tax code for effective revenue generation.
She stated that one of the areas of the tax code and laws in need of review was the simplification of the processes as well as the reduction of the tax burden on small businesses.
Adeosun said the country could no longer continue to rely on oil revenue following the volatility in the global market, hence the need to look at effective ways of generating more revenue from taxes.
She lamented that despite the fact that revenue from oil accounted for about 70 per cent of the nation’s earnings, the sector’s contribution to the Gross Domestic Product was just about 13 per cent.
Adeosun noted that time had come for the economy to begin to take advantage of the opportunities of the 87 per cent potential in the non-oil sector through the diversification strategy of the Federal Government.
She said, “This administration is committed to diversifying the sources of government revenues away from oil. Oil is just 13 per cent of our economy but accounts for 70 per cent of the government’s revenue.
“Our challenge is to ensure that the other 87 per cent of economic activity makes its own contribution to government revenue. An effective tax system is key to this and such a system must be underpinned by an effective and appropriate tax policy.
“Nigeria has one of the lowest tax to GDP ratios in the world at just five per cent. There is clearly a pressing need for an overhaul of our tax policy, and this is a key function of the Ministry of Finance.”
The minister added, “Businesses react to tax policies and we are determined to ensure that ours sends the right message that Nigeria is open for business and is encouraging businesses with a tax system that is easy to understand and comply with.
“Areas of our tax code and laws that are in need of review will be addressed as part of this exercise as will modalities for simplifying our processes and reducing the tax burden on small businesses.”
She said the committee, headed by Prof. Abiola Sanni of the University of Lagos, had four weeks to conclude its assignment.
Adeosun stated that the terms of reference of the committee would be to review the national tax policy document; recommend a list of tax laws and regulations that needed to be reviewed or amended; and make any other suggestion on the National Tax Policy to facilitate effective implementation of the document.
The committee is also saddled with the responsibility of recommending policies that will ensure inter-agency cooperation between the Federal Inland Revenue Service and other revenue agencies toward enhancing the internally generated revenue of the Federal Government.
In the same vein, it will also expand the treaty network of Nigeria to include its major trading partners, and review the existing Double Taxation Agreement as well as ensure that tax laws are reviewed from time to time to minimise avoidable hardships to taxpayers.
The minister added, “As keen as we are to grow revenues and improve our tax collection, we are equally determined to ensure that our taxes are simplified. The task of growing tax revenue must be pursued with a human face and sustainability in focus.
“The relevant unit of the Ministry of Finance will be strengthened to enable it to play a more vibrant role in tax policy formulation.”
The minister stated that while the review would be a continuous exercise, in line with global best practices and keeping with the domestic socio-economic realities, the government remained committed to the continuous improvement of the tax system as part of a dynamic framework to enhance compliance.
The Securities and Exchange Commission (SEC) Wednesday said Registrars operating in the Nigerian stock market will no longer issue dividend warrants to shareholders as from June 30, 2017. Rather, all dividends would be paid electronically.
The Director General of SEC, Mounir Gwarzo, who disclosed this at the post Capital Market Committee (CMC) meeting media briefing in Lagos, said the move would check the growth of unclaimed dividends in the market.
According to him, before 2017 date, the electronic-dividend registration would have gained significant traction.
“From June 30, 2017 no registrar will issue dividend warrant again in the market. This will not only assist in reducing unclaimed dividends in the market but will also compel those yet to embrace the e-dividend registration to do so,” he said.
He said despite the efforts to enlighten investors to register for e-dividend payment, only 6,000 investors had registered for the e-dividend payment platform that was launched in collaboration with the Central Bank of Nigeria and the Nigeria Inter-Bank Settlement System (NIBSS).
Gwarzo noted that the aim of the e-dividend payment was to eliminate the difficulty encountered by retail investors in claiming their dividends, noting that the commission will continue to partner stakeholders to ensure that all retail investors embrace the e-dividend platform.
In this regard, he said the CMC had resolved that every bank and registrar would appoint an e-dividend champion that would interface with investors to settle issues arising from the e-dividend registration process.
Gwarzo said that the e-dividend champions would work closely with NIBSS to ensure that challenges arising from the e-dividend are settled within three to four days. The SEC boss added that the regulator has also agreed to continue to be responsible for the cost of e-dividend registration till December 31, 2016 so as to encourage more investors to embrace the initiative.
He promised the SEC will continue to with its enlightenment campaign to ensure full participation of all investors and called on other stakeholders in the market to join in the enlightenment campaign.
Gwarzo stressed that the e-dividend payment platform would ensure prompt payment of dividends into investors accounts, describing it as a game changer in the market that would ensure that infractions are reduced to the barest minimum.
Seafarers in the employ of the Nigerian Liquefied Natural Gas Ship Management Limited, a subsidiary of the Nigeria LNG Limited, will from September 1 receive half of their current salaries.
The decision is said to be in response to the more than 60 per cent reduction in the company’s revenues occasioned by the drop in the global oil price, which has fallen from $140 to about $40 per barrel in the last one year.
The Manager, Nigerian Content, NLNG, Mr. Charles Okon, who spoke for the General Manager, External Relations, Dr. Kudo Eresia-Eke, confirmed the review of manning levels and wage scale for officers on the Bonny gas transport vessels.
The decision, he explained, was taken to minimise the need for staff lay-offs as had been the case in several companies in the industry.
Okon said, “This action is in line with the depressed global market situation and consistent with prevailing industry rates, and has been taken in the interest of the sustainability of the business.
“In reality, the reviewed wage scale cannot be said to be a salary reduction as claimed. The fact is that the company has simply adjusted and aligned wages with internationally obtainable benchmarks.”
He stated that the company’s Nigerian officers’ dollar- denominated wages, upon conversion at the existing rates, far exceeded wages for their peers who were being paid in naira.
He added that other conditions of service of all the NSML personnel, including leave days, would remain the same, while leave emoluments earned in line with current wage scales would also be unaffected.
Okon said, “Several BGT vessels have already been laid up and many more areas of reduction are being explored. This is consistent with the national oil company guideline for relevant industry operators to reduce operating costs by 40 per cent.
“Management has already communicated these developments to the staff and shall continue to engage them during the implementation process, and appeals for the continuing understanding and cooperation of all parties.”
However, seafarers with the NLNGSML have protested the decision, claiming that it was taken without proper consultation with their representatives.
Some of the seafarers, who spoke on condition of anonymity, said their counterparts from other countries like India, Malaysia, Pakistan, Russia and Croatia, who were also in the employ of the company, had challenged the 20 per cent wage cut imposed on them.
One of the affected seafarers said, “This unjust proposed wage cut could kill dreams of achieving the indigenisation plan, which is committed to ensuring that Nigerian seafarers are well represented on the board of the BGT and NLNG chartered vessels.
“We are being forced to comply with a proposed 50 per cent salary cut within seven days or risk losing our jobs. Why should Nigerian seafarers earn lower than their foreign colleagues?”
The President, Nigerian Merchant Navy Officers and Water Transport Senior Staff Association, Matthew Alalade, said the association was informed of the situation last week.
He stated, “Although the company has blamed the economic downturn for this decision, the seafarers are not happy with it. We plan to resolve the issue on behalf of the senior officers. The junior officers are already members of the Maritime Workers Union but we still intend to protect them.
“For the senior staff, it will be a 40 per cent cut in salaries, while it will be 50 per cent for the junior staff.”
Determined to make its digital banking application fast, convenient and hassle-free, Access Bank Plc has refreshed the revolutionary lifestyle solution, PayWithCapture to a more illimitable version.
The latest version, PayWithCapture 5.0, according to a statement from the bank yesterday, comes with additional features that enable customers to transfer funds from any bank account (one or more) to any bank account or phone number and email addresses.
PayWithCapture 5.0 has also expanded to the web for users to experience the many benefits on larger screens. It also offers a USSD service *901# that allows users to carry out most of the listed functions without the need to access the internet, the bank added.
“PayWithCapture 5.0 users can, still enjoy the success of QR code scanning for payments but with the added ability to make transfers to bank accounts, phone numbers and email addresses. Users can also set up a savings club through PayWithCapture. Savings Clubs, commonly known as Ajo or Esusu enable them save jointly with friends towards a common goal as the funds can be pooled and rotated among all members of the group or pooled and given to one person,” it added.
The Head of Digital Banking at Access Bank, Adeleke Adekoya explained: “We heard about the issues and complaints our customers had on the old app. With this new version, we’ve tried to resolve them all” According to him, the latest version has extended beyond simply scanning QR-Codes to pay for transactions to allowing customers experience banking in a way that feels as personal as they want it to be.”
Another key feature of the upgrade, according to Adekoya was the introduction of the PayWithCapture Titanium Card.
“Simply request for the card on PayWithCapture, then transfer funds from payment methods linked to your account and you can use your PayWithCapture debit card anywhere around the world you see the MasterCard sign,” he added.
A.G Leventis (Nigeria) Plc is to inject fresh funds into its operations as part of its revival strategies. The Executive Vice Chairman of A.G Leventis, Mr. Michael Economakis stated this yesterday, while speaking at the ‘Facts behind the figures’ presentation ceremony at the Nigerian Stock Exchange (NSE).
According to him, with the funds, the company would be turned around and deliver better returns to shareholders, disclosing that the company was already discussing with foreign investors.
“We are discussing with foreign investors, hopefully there will be capital inflow very soon. This capital inflow will assist us in having better cash flow, there will be reduction in our cost of fund and we will be able to expand our products portfolio,” he said.
He said the new capital will assist the company to expand its product portfolio in some rich products with a potential long term technical service partnership with Pick n Pay, one of the two retailers in South Africa.
Commenting on strategic priorities of the company, Economakis said fast moving consumer goods, automobile, agriculture and real estate are major area the company will develop going forward.
He disclosed that on automobile, the company commenced production of vehicles from mid-2015 and would expand it plant to assemble for other distributors in the region. Economakis added that AG Leventis is looking at the large scale farming in Nigeria that would lead the company to backward integration in agriculture.
Speaking on the half year financial results of the company, Head of Finance, AG Leventis, Olugbenga Kasomo said cost of materials, foreign exchange crises as major problems that affected the performance of the company.
The company ended the half year with a revenue of N6.442 billion in 2016, up from N5.936 billion in the corresponding of 2015.
Cost of sales rose by 24 per cent from N4.266 billion to N5.274 billion, while total operational expenses increased by 12 per cent from N1.269 billion to N1.425 billion in 2016. Consequently, the company ended the period with a loss of N494 million.
Meanwhile, the bearish trend persisted yesterday with the NSE All-Share Index, shedding 0.45 per cent to close at 27,272.14. Similarly, the market capitalisation ended lower at N9.41 trillion.
May & Baker Nigeria Plc says its business performance in the first half of 2016 has raised the prospects of good returns in the ongoing business year.
The healthcare group said it rode against the industry and macroeconomic headwinds to sustain appreciable growth in its performance in the first half of this year as it continued to benefit from improving cost and operating efficiencies.
Key extracts of the interim report and accounts of the group for the six-month period ended June 30, 2016 showed that turnover rose by nine per cent.
The group results showed that turnover rose to N3.70bn in first half of 2016 compared with N3.41bn in the first half 2015.
The company said it sustained growth in pre- and post-tax profits, as it reduced its finance cost and distribution, sales and marketing expenses by 10 per cent and 12 per cent, respectively.
However, cost of sales grew by 16 per cent from N2.25bn to N2.60bn due to increases in material costs, devaluation of the naira and high power cost driven by rampant gas outages. This affected gross profit, which reduced from N1.16bn in the first half 2015 to N1.1bn in the first half 2016.
The company said it had continued to benefit from its management’s focus on overall operational efficiency with its administrative expenses rising on the back of the jumpy inflation from N263.45m to N309.48m as the distribution, sales and marketing expenses dropped by 12.4 per cent from N583.20m to N510.84m.
