By Opeyemi Abdulsalam

Femi Otedola, a prominent billionaire businessman, has made a significant move by acquiring additional shares in FBN Holdings.

This development was made public through a corporate filing on the Nigerian Exchange Group (NGX) on Monday.

The acquisition adds 2.22 percent to Otedola’s existing stake in the company, solidifying his position as a major shareholder.

With this latest acquisition, Otedola’s total shareholding in FBN Holdings now stands at 11.63 percent, the highest among all shareholders.

This significant stake cements his influence and control in the company’s decision-making processes.

Overall, this development highlights Otedola’s status as a shrewd businessman and a key player in the Nigerian financial sector.

His significant stake in FBN Holdings is a clear indication of his dedication to the company’s success and his contribution to the growth of the Nigerian economy.

According to the NGX filing, Otedola spent N17.2 billion to 797,946,415 shares at 21.58k.

The latest acquisition comes just four days after the serial investor increased his stakes in the holding company to 9.41 percent after splashing a whooping N18.9 billion to buy a total of 863,180,810 shares.

With that and in addition to the latest purchase, Otedola’s shares (direct and indirect) in FBN Holdings has now leapt to 4,178,409,365 — from 2,517,282,140 shares.

This means the businessman is now the biggest shareholder in the company, displacing Barbican Capital Limited, owned by Oba Otudeko, which has 3,110,400,619 direct shares.

In January, FBN Holdings appointed Otedola as the chairman of its board of directors.

The appointment had come two years after the investor became the firm’s single largest shareholder in December 2021, when he increased his stake to 7.57 percent.

A month after the appointment, FBN Holdings named Barbican Capital Limited as its majority shareholder — making Otedola the second major shareholder at the time.

It was learnt that Otedola spent over N100 billion on FBN Holdings shares in three years.

By Opeyemi Abdulsalam

The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has called on investors and market intermediaries to embrace sustainable finance, a move that could unlock a potential $2.6 trillion market.

Dr. Agama made the call at the 2024 Business Luncheon of the Association of Corporate Trustee (ACT) in Lagos, themed “Sustainable Finance: The Role of Corporate Trustees.”

Represented by the Director, Market Development of SEC, Tunde Kamali, the DG emphasised the importance of sustainable finance principles in growing the market.

The SEC boss noted that the principles of sustainable finance offer a new vista for market intermediaries, including trustees, to take their businesses and client relationships to a higher level.

He urged businesses to move towards more sustainable and climate-friendly solutions, citing the daunting challenges facing the planet, including climate change, resource scarcity, social inequality, and economic instability.

Dr. Agama emphasised the critical role of corporate trustees in facilitating sustainable financing, acting as intermediaries between investors and issuers, and overseeing assets while ensuring compliance with legal and fiduciary obligations.

He encouraged trustees to align investors’ interests with sustainable objectives by incorporating Environmental, Social, and Governance (ESG) criteria into investment strategies, guiding capital towards projects and initiatives that promote sustainability.

According to Dr. Agama, the demand for sustainable investing is not yet fully met by investment advisors, presenting an opportunity for financial intermediaries to tap into this growing market.

He stressed the collective responsibility of addressing the demands of the sustainability market, positioning ourselves ahead of the green supply curve while adhering to global standards and frameworks.

The SEC DG assured stakeholders of the commission’s commitment to championing sustainable financing, urging them to move beyond traditional roles, especially in sustainable finance.

He pointed out that the potential market size for sustainable finance is staggering, with opportunities for wealth creation alongside environmental and social impact.

The event also featured speeches from the Director-General, Debt Management Office (DMO), Ms. Patience Oniha, and the President of ACT, Omolola Iyinolakan, who emphasised the importance of sustainability and the role of trustees in protecting investors’ interests.

The push for sustainable finance comes as the world grapples with the challenges of climate change, environmental degradation, and social inequality.

The SEC’s call is seen as a step in the right direction, as Nigeria seeks to align its financial sector with global best practices in sustainable finance.

In a related development, a 2023 report by Deloitte highlighted the growing demand for sustainable investing among investors, with many seeking more support from their advisors.

The report noted that investment advisors are not fully meeting this demand, presenting an opportunity for financial intermediaries to tap into this growing market.

The SEC’s commitment to sustainable finance is expected to have a positive impact on the Nigerian financial sector, as stakeholders embrace the opportunities and challenges of this growing market.

The Nigerian Exchange Limited (NGX) has fined nine quoted companies N76.8 million for failure to file their audited financial statements after the regulatory due date.

An investigation showed that the companies were sanctioned for their inability to meet the regulatory requirements for the year-end 2022 and 2023 financials.

The companies include African Alliance Insurance Plc, VFD Group Plc, FBN Holdings Plc, Sterling Financial Holdings Company Plc, UPDC Plc, ABC Transport Plc, Presco Plc, eTranzact International Plc, and NCR (Nigeria) Plc.

Further checks showed African Alliance Insurance Plc with N48.6 million fine for inability to file the 2022 annual financial statement when required.

Others that failed to submit their 2023 annual financials include VFD Group Plc, N5.6 million, FBN Holdings Plc N5.4 million, Sterling Financial Holdings Company Plc, N6 million, UPDC Plc, 3.9 million, ABC Transport Plc, N3.2 million, Presco Plc, N3.2 million, eTranzact International Plc, N700,000.00, and NCR (Nigeria) Plc with N200,000.00 fine accounting for a cumulative fine of N76.8 million.

Market operators agreed that the sanction for non-compliance with the rules of listing on NGX is a welcome development, as it will lead to a more appropriate pricing of securities. More quoted entities would be compelled to give information to the market on a timely basis.

Managing Director, Crane Securities Limited,Mike Eze, while reacting to the development said the action of NGX would boost investor confidence in the market because it is sending a signal for investors to get companies’ financial reports as at when due.

He added that investors needed to make informed decisions before choosing which stock to buy and this can only be achieved if there is adherence to good corporate governance by the quoted companies.

According to the founder of the Independent Shareholders Association of Nigeria (ISAN), Sir. Sunny Nwosu, the affected companies were supposed to have ensured that they met the requirements as such would help shareholders to understand their financial health for investment decisions.

“It is not a new thing and it does not come to us as a surprise. We have constantly written to the exchange and raised the issue at annual general meetings that there is a need to know the status of these companies to enable us to take investment positions,” he noted.

Also, the President, Progressive Shareholders Association, Boniface Okezie, said it was better for Nigerians to have a few companies that are ready to play by the rules than to have all the companies in the world that are not ready to satisfy post-listing requirements.

Okezie said that penalising companies for non-compliance with the rules of listing on NGX was a welcome development, as it will lead to more appropriate pricing of securities.

He said more entities would be compelled to give information to the market on a timely basis, adding that investor confidence in the regulatory capacity of NGX and the market would be enhanced.

The Exchange in its X-Compliance report explained that the initiative was designed to maintain market integrity and protect the investors by providing compliance-related information on all listed companies.

The report thus stated that “Companies that are listed on the Exchange are required to adhere to high disclosure standards which are prescribed in Appendix 111 of the Listing Rules.

“Financial information which is periodic disclosure and on-going material events disclosure should be released to The Exchange promptly to enable it efficiently perform its function of maintaining an orderly market.”