capital market
Nigeria can drive positive changes through ESG — SEC DG
By Philemon Adedeji
The Securities and Exchange Commission has stated that Nigeria has the opportunity to drive positive changes through the focused promotion of ESG and sustainable finance in financial markets while protecting the environment, reducing inequality, promoting security and fostering national economic prosperity.
This was stated by the Director General of the SEC, Mr. Lamido Yuguda at the Workshop on Sustainable Finance organised by Securities & Exchange Commission, in collaboration with Financial Centre for Sustainability with the theme ‘ESG and Sustainable Finance: The Future of Investment’.
The SEC Boss expressed the determination of the Commission to stand firm in its commitment to champion the promotion of sustainable financing through formulating the necessary rules and regulations; working together with stakeholders to promote advocacy and encourage dialogue, with a view to creating the required enabling environment for assessing the progress achieved and overcoming the challenges that remain.
According to him, “Amongst others, our Rules on green bonds have already facilitated three issuances, thereby providing the essential funding for green projects in sectors such as power, water and agriculture, and building the foundation for more to come in the nearest future. In addition, we have also developed comprehensive sustainable finance guidelines and disclosure requirements for capital market operators, aligning them with the wider Nigerian Sustainable Finance Principles.
“Looking ahead, we anticipate continued growth in the sustainable finance environment and in particular, within the Nigerian bond market. This will present a significant opportunity for the Nigerian capital market to expand its product offerings, and provide more long-term financing for businesses.
He stated that the world has found itself at a critical juncture where all must urgently consider the devastating impact of climate change, inequality, conflict and insecurity vis-à-vis the need for responsible corporate behaviour to reshape our thoughts and actions around the future of our investment practices, and ensure that they align with Environmental, Social, and Governance (ESG) considerations.
Yuguda said that all stakeholders, desirous of a better future for themselves, their businesses and their communities, should fully support every effort to build an economy that encourages sustainable business practices.
“The revised Nigerian Capital Market Masterplan strongly underlines the need to create awareness and actively deploy educational and advocacy campaigns to promote ESG-compliant products. This initiative has been identified to be of high priority, demanding immediate implementation, and this is one of the Securities and Exchange Commission’s principal reasons for organising this workshop, in collaboration with our co-hosts, the Financial Centre for Sustainability (FC4S).
“At its core, sustainable finance integrates ESG factors into investment decisions, seeking long-term economic and social benefits for both stakeholders and society. It is therefore heartening to witness a growing number of institutional investors and funds embracing various ESG investing approaches in recognition of the potential positive impact on individuals, businesses and society” He added.
In a welcome address, Adrian Mill, Managing Director Environmental and Social Sustainability, said the event really exemplifies Nigeria’s growing alignment with global ESG and sustainability trends and urged participants to seek to examine the intersection of sustainable finance ESG, requirements and how investments are undertaken in Nigeria’s capital markets today and in the future.
Given the various legislative and other actions steps taken so far, Mill stated that it is clear that Nigeria is an emerging regional leader in the history and sustainable finance space.
Mill said, “The reason we are here is to know how these can impact the investments in the capital market now and in the future. Are Nigerian investors sufficiently aware and able to demand ESG complaint investments? Is the country in advantage position to receive commensurate investments? What are the challenges limiting the expansion of sustainable finance in Nigeria? I am sure those gathered here today will provide answers to these questions. How can local investors be incentivized to invest in ESG product’s? These and more are the answers this workshop seeks to provide and I have no doubt that we will have fruitful deliberations”.
In a presentation MD/CEO, Financial Derivatives Company Limited, Mr. Bismark Rewane said Nigeria is in dire need of institutional reform while listing some institutional reforms to include concessioning of roads and airports to improve accountability and transparency on infrastructure development; reduction of leakages and mismanagement; clear separation of power between policy makers and regulators; less influence of politicians on policy makers and penalties for wrong doings.
Rewane affirmed that implementation of policy reforms in the capital market has improved investors’ confidence while adding however, that the Nigerian capital market growth will be supported by privatization and government sale of assets, listing of upstream industries and currency convertibility.
He however warned that increased activity and volatility in the capital market to spur large gains and losses could induce abuse of market laws.
The Nigerian equities market sustained its positive run with investors making N374 billion in profit at the close of trading on Friday.
This followed the growth in share prices of UCAP, LASACO, and CWG, amongst others on the trading floor today.
After five hours of trading at the capital market, the equity capitalization rose to N56.6 trillion from N56.2 trillion posted by the bourse on Thursday.
The All-Share Index (ASI) increased to 100,057.49 from 99,396.23 recorded the previous day.
The market breadth was positive as 34 stocks advanced and 11 declined, while 73 others remained unchanged in 7,834 deals.
UCAP, LASACO, and CWG led other gainers with 9.96 percent, 9.91 percent, and 9.66 percent growth in share price each to close at N26. 50, N2.55, and N7.95 from the previous N24.10, N2.32, and N7.25 per share.
On the flip side, JAIZBANK, CAVERTON, and REGALINS led other price decliners as they shed 9.72 percent, 7.80 percent, and 6.98 percent each to close at N1.95, N1.30, and N0.40 from the initial N2.16, N1.41, and N0.43 per share.
On the volume index, TRANSCORP led trading with 125.402 million shares valued at N1.6 billion in 437 deals followed by OANDO which traded 58.313 million shares valued at N877 million in 349 deals.
GUINNESS traded 42.976 million shares valued at N2.8 billion in 59 deals.
On the value index, GUINNESS recorded the highest value for the day trading stocks worth N2.8 billion in 59 deals followed by TRANSCORP which traded equities worth N1.6 billion in 437 deals.
OANDO traded stocks worth N877 million in 349 deals.
Shareholders of MRS Nigeria Limited have approved the voluntary delisting of the company’s shares from the Nigerian Exchange Limited (NGX).
Following the delisting, the company whose market capitalisation currently stands at N46.3 billion withdrew its shares from the equities market.
MRS Oil disclosed this in a notice to the NGX and the investment community recently and signed by its Company Secretary, Mrs O.M Jafojo.
According to the notice, the approval was part of the resolution passed at the Extraordinary General Meeting MRS Nigeria, held on June 25 at the Civic Centre, Ozumba Mbadiwe Avenue, Victoria Island, Lagos.
The Board of Directors was also authorised to determine the terms and conditions for the delisting, including timing, dissenting shareholder arrangements, and regulatory approvals.
It was also approved that the company’s Memorandum and Articles of Association would be amended to permit a share buyback and share capital reduction.
The company was also authorised to buy back shares and reduce share capital as needed, particularly for dissenting shareholders, in compliance with laws and regulations.
The notice read: “As part of special business, shareholders considered and passed, with or without modification, the following sub-joined resolutions as special resolutions
“That the voluntary delisting of all the Company’s issued shares from the daily official list of Nigerian Exchange Limited (the ‘Voluntary Delisting’) be and is hereby approved, on such terms and conditions (including but not limited to timing of implementation, arrangements for dissenting shareholders (if any) and the fulfillment of specific conditions precedent to effectiveness (if any)), that the Board of Directors of the Company (the ‘Board’) deems appropriate in connection with the Voluntary Delisting; and subject to obtaining all requisite regulatory approvals.
“That the Memorandum and Articles of Association (“MemArts”) of the Company be and are hereby amended to authorise the Company to undertake a share buyback and share capital reduction.
“That the Company is and is hereby authorised to undertake a share buyback and share capital reduction in connection with any of its issued shares which may be purchased from dissenting shareholders where necessary as a consequence of the Voluntary Delisting; on such terms and conditions, in such volumes and at such times as the Board deems fit; subject to, and in accordance with, applicable laws and regulations.
“That the MemArts of the Company be amended upon completion of the share buyback and share capital reduction, to reflect the Company’s updated share capital.
“That upon conclusion of the Voluntary Delisting, and whilst the Company remains a public limited liability company, the Board be and is hereby authorised to take all such action as may be required, to admit the Company’s shares on the NASD OTC Securities Exchange in order to ensure that dealings in the Company’s shares are implemented in accordance with the Securities and Exchange Commission’s Rules on Trading in Unlisted Securities.
“Shareholders also authorised the Board to take all such lawful actions and steps (including but not limited to entering into/executing such agreements and documents, appointing professional advisers and other parties, and complying with directives of any regulatory authority) deemed necessary to give full effect to the above-referenced resolutions.”
IAs evidence of resilience and continuous innovation despite the headwinds in the Nigerian economy, the total comprehensive income of Industrial & Medical Gases (IMG) Nigeria PLC., has jumped by 295 percent, from N215.967 million in 2019 to N852. 753 million in 2023.
In the review period, the revenue of the frontline manufacturer of industrial and medical gases, also grew by 98 percent from N3.06 billion in 2019 to N6.06 billion in 2023, while Earnings Per Share (EPS) rose steadily from 52 kobo to N1.71.
The company declared a dividend of 50 kobo per share for its 2023 financial performance, totaling N249.47 million. The dividend was unanimously approved by the shareholders.
Addressing the shareholders during the Company’s 64th Annual General Meeting (AGM) in Lagos at the weekend, the Acting Chairman, Aminu Ado, explained that the impressive performance would be sustained in 2024 by the Company’s capital investment and optimization of the use of resources amongst others.
“Your Company had another great year despite the negative impacts of Forex, the Russian/Ukrarian and the Israel/Gaza wars on the economy of the world and Nigeria. The total revenue from the business grew from N5.33 billion realised in 2022 to the N6.06 billion in 2023.
“The year’s profit after tax rose to N0.85 billion from N0.44 billion. We intend to sustain the growth performance in 2024 by our capital investment, optimising the use of our resources, improving logistics, cost-cutting measures, generating new business prospects, and improving on employee training,” Ado said.
Corroborating him, the company’s Managing Director and Chief Executive Officer, Ayodeji Oseni, assured the shareholders of a better future ahead.
“Despite the prevailing gloomy national economic outlook, the future holds great promise for Industrial & Medical Gases Nigeria Plc as we continue to consolidate and innovate.
“We shall remain resolute in implementing our growth strategy as we navigate the challenging operating terrain that lie ahead, leveraging opportunities and production efficiencies plus our cost management drive towards sustainable profitability.
“Our human capital remains the pivot of our transformation and future progress even at these trying times. We shall increase market presence and stakeholders’ engagement towards increased turnover,” explained Oseni.
Responding to a shareholder’s observation, the Finance Director, Adesina Alayaki, addressed some concerns about high electricity costs, saying some customers who rented cylinders had gone out of business.
He also noted that IMG’s use of natural gas, which is subject to volatility of forex costs, had impacted the company’s operations. He however expressed optimism that IMG remained committed to its growth strategy.
Shareholders commended the Board and Management of IMG for the topnotch performance in the review period. The President of Noble Shareholders’ Solidarity Association (NSSA),
Mathew Akinlade described IMG as a company with a solid balance sheet and very liquid. According to him, the Company has the capacity to pay a higher dividend in the near future.
Confederations Cup: Borno govt. promises to support El-Kanemi FC
Just In: NAF Helicopter crashes in Kaduna
