Nigeria’s premier central counterparty, NG Clearing Limited, has announced that it has signed an agreement with a leading software development firm, Mantissa Infotech Private Limited, for the development, implementation and maintenance of bespoke clearing
and settlement technology for its operations.
The announcement follows the receipt of an approval in principle from the Securities and Exchange Commission (SEC) in September 2020, to clear and settle exchange traded derivatives instruments,
Speaking on the development, the company’s Managing Director & Chief Executive Officer, Mr. Tapas Das, said: “We are very excited about this deal, as the deployment of the technology platform puts us in a position to commence operations as soon as we receive final approval from the SEC. The technology platform will support the clearing and settlement ofderivative instruments across various asset classes such as futures and options contracts on
indices, equity shares, commodities, currency, rates etc.
“Mantissa’s vast experience and end-to-end capability in providing a suite of bespoke technology solutions to leading exchanges and clearing houses in India comes in very handy,having provided both the trading and the clearing & settlement software for 14 years to the
National Multi-Commodity Exchange of India Limited (NMCEIL), which was the first national level commodity exchange in India, until NMCEIL was merged with Indian Commodity Exchange Limited (ICEX) in 2018.
“Mantissa’s broad experience from providing its technology service to various market infrastructure, including NMCEIL, Metropolitan Stock Exchange of India Limited (MSE), Metropolitan Clearing Corporation of India Limited (MCCIL) and ICEX, has been beneficial in
the development of the state of the art technology and we expect that our stakeholders will find the technology very versatile and useful.”
NG Clearing Limited is promoted by The Nigerian Stock Exchange and Central Securities Clearing System Plc along with key stakeholders like the Nigeria Sovereign Investment Authority, Access Bank Plc, Consonance Kuramo Special Opportunities, Coronation Merchant
Bank Limited, Greenwich Merchant Bank Limited, Union Bank of Nigeria Plc, United Bank for Africa and Association of Securities Dealing Houses in Nigeria.
FMDQ Securities Exchange Limited has Kicked Off activities for year 2021 with the Admission of Total Nigeria PLC, Valency Agro Nig. Ltd. and Mixta Real Estate PLC Commercial Papers (CPs).new year 2021 arrived This move is in line with renewed hopes for the continued development of the Nigerian financial markets as corporates commence with planning towards the achievement of their strategic goals and objectives,
The Nigerian Commercial Paper (“CP”) market, even during the ‘high-points’ of the pandemic last year, continued to provide succour to both private and public institutions and as we begin
the new year. FMDQ Securities Exchange Limited has through innovative
evolution continued to avail its credible and efficient platform as well as tailor its Listings and Quotations
services to suit the needs of issuers and its Registeration Members (sponsors of the issue on FMDQ Exchange).
Following the due diligence process, the Exchange, through its Board Listings and Markets Committee approved the quotation of Total Nigeria PLC ₦2.25 billion Series 1 and ₦12.75 billion Series 2 Commercial Papers under its ₦30.00 billion CP Issuance Programme and the Mixta Real Estate PLC ₦2.00 billion Series 32 Commercial Paper under its ₦20.00 billion CP Issuance Programme, as well as the registration of the Valency Agro Nigeria Limited ₦20.00 billion Commercial Paper Programme, on its platform.
The debut issuance of Total Nigeria PLC (Total Nigeria)’s CP, following a volatile period for the oil and gas
industry as disrupted by the COVID-19 pandemic demonstrates innovation and confidence in the Nigerian debt capital market (DCM) towards supporting the vibrance of this sector and in turn the reactivation of the Nigerian economy. The issue attracted significant demand from a wide range of investors- resulting in a subscription level of over 4 times the initial issue size – a demonstration of investor confidence in the company.
Commenting on the quotation of the Issue, the Managing Director of Total Nigeria, Mr. Imrane Barry,explained that “the Programme was set up to enable the company further broaden its sources of capital by accessing funding from the Nigerian debt capital markets, while also reducing its overall funding costs”.
He thanked investors for supporting the company’s debut Issue and commended the financial advisers, Stanbic IBTC Capital Limited and FBNQuest Merchant Bank Limited, for ensuring the success of the Issue despite the challenging environment. Also commenting on the quotation, Tokunbo Aturamu, Head of Debt Capital Markets, Stanbic IBTC Capital expressed his delight that Total Nigeria has joined the growing list of blue-chip corporates who have embraced CP issuances in the Nigerian debt capital markets as a means of funding their working capital requirements. He also thanked the Board and Management of Total Nigeria for the opportunity given to Stanbic IBTC Capital to act as Sole Arranger, as well as Joint Dealer alongside FBNQuest Merchant Bank, to the ₦15.00 billion debut CP issuance under the Programme.
In the same vein., with double-digit inflation rates and soaring food prices compounded by the growing Nigerian population, it has become more imperative to catalyse the country’s agricultural value chain transformation in a bid to drive increased and sustainable production of agricultural products as well as foreign earnings through exports. Valency Agro Nigeria Limited (Valency Agro), is incorporated in Nigeria as a private limited liability company under Valency International Pte Limited (Valency International) – an International commodity trading house with its presence in over 15 countries – deals in the sourcing, production, and trading of Agro and consumer food products. In his remarks, the Managing Director,Valency International Pte Ltd, Mr. Sunil Dhanuka, said “We are glad for the successful registration of Valency Agro’s ₦20.00 billion CP Issuance Programme. We also commend FMDQ for the seamless process despite the COVID-19 pandemic and the various restrictions.
In line with our vision to grow within the agricultural value chain in Nigeria, Valency Agro is committed to ensure the growth of the Agriculture sector through our deep involvement in Cashew, Sesame, Cocoa and other produce. Proceeds from this CP Programme will be used towards meeting the midterm working capital requirements of the various agricultural produce and on value addition prior to export”.
The registration and quotation of these CPs on FMDQ Exchange endorse the evolution of FMDQ Holdings PLC (“FMDQ” or “FMDQ Group”) into a world-class vertically integrated financial market infrastructure group and its strategic role as a market organiser, committed to advancing the growth of the Nigerian
FMDQ Group is unwavering in its pursuit of product and market innovation as well as stakeholder engagement, towards making the Nigerian financial market globally competitive, operationally excellent,liquid and diverse, in line with its GOLD Agenda. FMDQ continues to bring about revolutionary changes in
the Nigerian capital market through its exchange, clearing, depository and private markets subsidiaries; providing a seamless process and value-chain for market participants to commence and end their financial market transactions.
FBN General Insurance has shored up its share capital by an additional N1.04bn, bringing the company’s total share capital to N5bn.
A statement from the company quotes the Managing Director, Bode Opadokun in a message, to the shareholders as having said that “By this increased share capital, FBN General Insurance is set to meeting stakeholders requirement of driving innovation in our business model, or ones www, products and services in this new year and beyond.”
FBN General has by this come to terms with the suspend we recapitalisation schedule first phase initially supervised by the National Insurance Commission, the company like others are continuing the recapitalisation build up to enhance risk retention and brand prominence.
FBN General is a subsidiary of FBN Insurance Limited and a member of the Sanlam Group.
The contributory pension scheme CPS, as at September 30, 2020 has pooled total pension assets of N11.57 trllion with N2.01 trillion invested in local money market, the National Pension Commission (PenCom), periodic release stated.
According to the release from PenCom, the summary of pension funds portfolio for the period up and until September 30, 2020, showed that N1.75 tr of the total sum was invested in bank placements while N262.01bn was in commercial papers.
Further information from statement on the Commission website revealed an increase in Retirement Savings Account (RSA) registration within the period to 9.15 million.
PenCom further breakdown showed that N7.55 trillion of the pension assets was invested in federal government securities, while N6.64 tr was invested in bonds; N780.57 bn was invested in treasury bills; N10.61 bn in agencies bonds; N107.58 bn in sukuk and N13.05 bn in green bonds.
The investment of pension funds also made a landing at state government securities with an uptick of N150.33 bn; the investment trail continued with N585.77 bn in domestic ordinary shares; N76.45 bn in foreign ordinary shares; N17.64 bn in foreign money market securities and N54.57 bn in infrastructure.
In another development, the Federal government has improved its accrued rights obligation by the release of N11.82tr for retirees of treasury funded ministries, departments and agencies under the contributory pension scheme.
The head of corporate communications PenCom, Peter Aghahowa, who disclosed this said, “Accrued rights represent benefits for employees of treasury funded MDA’s who worked up to June 2004, when the Pension Reform Act was introduced”.
Aghahowa commended the intervention saying, “The commission appreciates the effort of the Federal government at ensuring that the accrued rights arrears are cleared.”
In its bid to ensure the success of the demutualisation precess, the Nigerian Stock Exchange (NSE) recently inaugurated a ‘Claims Review Panel’, pursuant to the provisions of the NSE Demutualisation Act 2018.
President of the NSE, Otunba Abimbola Ogunbanjo in a statement on Friday explained that the panel inaugurated on Dec. 21, 2020, was set up in preparation for the imminent demutualisation.
He listed the members of the panel as, Mr George Etomi (Chairman), Mr Seni Adio (SAN), Mr Abatcha Bulama, Dr Paul Anababa (SAN) and Prince Aghatise Erediauwa.
Ogunbanjo while charging members of the panel to diligently carry out their functions and responsibilities under the Act, expressed the hope that each member will bring to bear, their respective experiences and expertise to enrich deliberations and decisions.
“We expect members of the panel to discharge their responsibilities without any fear or favour in an objective and dispassionate manner, being guided by principles of fair hearing, equity and natural justice,” he said.
He said that the panel served as an independent alternative dispute resolution mechanism for the review and determination of claims made by individuals or entities in respect of any assertion of rights in the shares of the demutualised Nigerian Exchange Group Plc.
“The panel will sit in an appellate capacity and review claims from claimants’ who are dissatisfied with any decision of the National Council of the Exchange on a claim pre-demutualisation, or the Board of Directors of the HoldCo , post demutualisation of the exchange,” he said.
As part of the demutualisation process, he said the exchange (which is currently a company limited by guarantee) would be converted into and re-registered as a public company limited by shares.
“Consequently, current members of the exchange will be allocated shares in the HoldCo.
“The securities exchange licence of the current exchange will be transferred to Nigerian Exchange Ltd., a wholly owned subsidiary of the HoldCo, which will carry on the securities exchange business.
“Another wholly owned subsidiary, NGX Regulation Ltd., will be licensed by the Securities and Exchange Commission to carry out regulatory services.
“To safeguard the independence of the panel, the NSE embarked on a diligent search for distinguished individuals with the required expertise and extensive track records of integrity, excellence and achievements in their respective fields of specialisationnan.”
The Council of the Nigerian Stock Exchange has announced a new set of Chief Executives that will head its operating and non-operating units after the completion of the demutualization exercise.
The announcement which was made public, Wednesday in a statement made available to BisinessUpdate gave the name of the officers and their designations as follows:-The Nigerian Exchange Group Plc will have Oscar Onyema,OON, designated Group Chief Executive Officer as its head; Nigerian Exchange ltd will have Temi Awe as its Chief Executive Officer, while the NGX Regulations Limited will be run by Tinuade Awe, who is also designated as the Chief Executive Officer.
Under the demutualisation plan, a new non-operating holding company, the Nigerian Exchange Group Plc (NGX Group) has been created. The Group will have three operating subsidiaries – Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulatory arm; and hNGX Real Estate Limited (NGX RELCO), the real estate company – forming the group. All the entities have
been duly registered at the Corporate Affairs Commission (“CAC”).
According to the statement signed by the head Corporate Communications of NSE, Olumide Orojimi, these appointments are subject to confirmation by the
Securities and Exchange Commission, hSEC.
Prudential Zenith Life Insurance has successfully raised its authorized share capital to N5 billion following the deadline of December 31st, 2020 set for insurance companies in Nigeria to shore up their capital base
The figure is One Billion over and above the new minimum capital requirement of N4 billion set by the National Insurance Commission (NAICOM).
Commenting, the Managing Director/Chief Executive Officer, Mr. Chuks Igumbor, said: “We have met and exceeded the minimum requirement of the December 31st, 2020 deadline set by NAICOM and we are positioned to meet the additional capital requirement of N8 billion well ahead of the September 30th, 2021 deadline.”
He added: “This seamless recapitalisation effort is hinged on the enormous financial strength and support from our key shareholders. With this, the firm is poised to emerge stronger with greater capability to serve our esteemed customers and to continue to grow the business.”
Prudential Zenith Life Insurance Limited is part of Prudential Plc, one of the oldest and most strongly capitalised life insurance companies in the world. It provides a range of insurance and investment-linked savings products designed to suit corporate and individual customers’ budgets.
The company seeks to remove uncertainty from life’s big events, providing customers with the freedom to face the future with greater confidence.
It is also committed to meeting the long-term savings and protection needs of families and businesses in Nigeria. Whether someone is starting a family, saving for a child’s education, or planning for old age, Prudential Zenith Life provides customers with financial “peace of mind”.
The managing Director of the Central Securities Clearing System, Haruna Jalo-Waziri has commended the resilience of the Nigerian Capital Market in the face of the challenges posed by the COVID-19 pandemic in year 2020.
He praised the collaboration of market players in achieving seamless operations during the period.
Describing the year 2020, Haruna said “What a year! A year like no other – 2020 was definitively historic and unprecedented. It defied science, challenged rationality, and confronted social norms. COVID-19 shook the world powers, tipped many economies – including our dear Nigeria – into the worst recession in decades, shattered social engagements and affected every facet of life as we knew it. Like a mystery, only to be told in a fiction, oil traded at negative prices, factories shut globally for weeks, and airlines grounded for months. Excitingly, the Nigerian Capital Market, like a few global peers, remained active through the crisis; many thanks to the concerted efforts and resilience of critical stakeholders, whose swift ingenuity and collaboration kept the market afloat, sailing through the tide with incredible captains – like YOU.”
According to him, “for the CSCS, just as I believe with many peers, we cannot afford the lessons of this crisis to go to waste. If none other, one pertinent lesson COVID-19 has taught us is the significance of our Togetherness – the unimaginable strength of our collective resources and sincere collaboration for the stability and growth of the Nigerian Capital Market. If COVID-19 is a living enemy, I am sure it has suffered defeat in the most shameful battle with Nigerian Capital Market, as the seamless operation of the market amidst the odds of the pandemic won great admiration, even from critics. As your market infrastructure, we are proud to be a part of this SUCCESS and we do not take it for granted. In fact, we owe and dedicate it to YOU.
He thanked all participants for their support and patronage of the CSCS while maintaining that the feat attained in year 2020 was unprecedented. “I would like to thank you immensely for your continued patronage of CSCS’ services through the challenging year that past – 2020. Together, we have done what would have seemed impossible’ he maintained. ‘Beyond sustaining (and indeed increasing) market activity, we executed the regulatory directive on Investor Account Update, partly integrated our technologies with the Account Opening Portal, leveraged RegConnect for enhanced data exchange for Registrars’ services, and a host of other initiatives we jointly executed for the ultimate goal of developing and deepening the market”, he added.
As we have pooled resources to effectively navigate the odds of one of the most challenging times in history, Jalo-Waziri called for continued collaboration in consolidating on our gains and advancing our mutual course of deepening the Nigerian Capital Market, through innovation, and more importantly, Togetherness. He expressed excitement at the prospect of this New Year, banking on continued stakeholder patronage, and a renewed commitment to the collaboration that has brought us this far – a partnership of over two decades that has birthed mutual greatness and respect for our market and respective businesses; a life partnership that is so dear to our existence and which we will continue to jealously nurture and invest in. ‘Together, we can DO MORE… and Together, we must ACHIEVE GREATER GREATNESS.’ Jalo-waziri insisted
In closing, he said ‘I would like to inform you that my colleagues and I are dedicating our renewed strategic focus to YOU – listening and executing diligently and exigently on your needs. In this New Year and beyond, our pledge is to meet your anticipated needs exceed your expectations. Our dedication is a reinforcement of the value we place on YOU, as your infrastructure for the Nigerian Capital Market. You are at the core of our essence, and more than ever, I am confident in the insuperable prowess of our collective resources and capabilities in surmounting any impediments to achieving our respective and mutual goals.
‘Notwithstanding concerns of the second wave of the COVID-19 infection, I remain optimistic that this pandemic shall pass in no distant time, and we will once again reopen our physical operations and hobnob with you, in expectation of sharing great memories. As we wind down the celebration of the festive season and kick-off business with renewed optimism, I implore us to take utmost care and responsibility in protecting ourselves and our communities. Happy New Year and Cheers to a Great Beginning of an Exciting Decade!,” he declsred.
The Securities and Exchange Commission, SEC has disclaimed the activities of Famzhi Interbiz Limited as neither the entity nor the illegal products they offer are registered or regulated by the Commission.
According to the SEC, “The attention of the Securities and Exchange Commission (the Commission) has been drawn to the illegal fund management operation conducted by FAMZHI INTERBIZ LIMITED.
“The Commission wishes to inform the public that FAMZHI INTERBIZ LIMITED 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 grant of registration.
The SEC stated that despite not being registered by the Commission, the company had proceeded to unlawfully solicit funds from the investing public on product(s) neither registered nor approved by the Commission, with the promise of a guaranteed return on investment in clear violation of the Securities and Investment Act (ISA) 2007.
Consequently, the Commission stated that it has referred the company to the appropriate law enforcement agency for criminal investigation and possible prosecution for violation of the provisions of the Investments and Securities Act 2007 and other relevant laws in Nigeria.
In view of the above, the SEC therefore advised the general public to always confirm the registration status of any entity offering fund management or any other capital market services from the Commission’s website https://sec.gov.ng/cmos/ or by visiting any of the Commission’s offices.
“Furthermore, 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” the SEC stated.
For its continued efforts towards ensuring the protection of customer funds and data, Global Finance has named Access Bank the ‘Safest Bank’ in Nigeria for the year 2020.
This is part of the platform’s 29th annual World’s Safest Banks rankings.
Global Finance’s annual rankings of the World’s Safest Banks has been the recognised and trusted standard of financial counterparty safety for more than a quarter-century.
The Safest Banks by Country were selected through an evaluation of long-term foreign currency ratings – from Moody’s, Standard & Poor’s and Fitch – and the total assets of the 1000 largest banks worldwide.
Herbert Wigwe Chief Executive Officer of Access Bank PLC, commented on the recognition saying, “Throughout 2020, financial institutions all over the world have been faced with peculiarities in safeguarding the finances and data of customers. Through this Access Bank has remained steadfast in its commitment to ensuring that the finances of customers are protected and the data confidentiality of all stakeholders are maintained. This recognition serves as an encouragement for us to build on our successes and invest even more in digitally-led measures that will position us as the World’s Most Respected African bank.
Reiterating Wigwe’s comments, Joseph Giarraputo, publisher and editorial director of Global Finance said “For most of 2020, the world has been lashed by the COVID-19 pandemic, a steep drop in economic activity and, in some cases, serious social unrest. Any of these developments could have significantly impacted banks’ credit worthiness. Surprisingly, however, the relative position of the world’s largest banks on Global Finance’s World’s Safest Banks 2020 lists has been mostly stable. One can only speculate on when, or if, the changes will come.In the meantime, the rankings will be used by companies, investors and individuals to gauge the relative safety of the banks with which they choose to do business.
As part of its efforts to safeguard the investments and savings of customers, Access Bank PLC introduced the *901*911# – a self-service USSD that enables customers to deactivate their accounts using any alternative phone number should the registered phone be lost or stolen. This gives account holders full autonomy to safeguard their funds before official reports are directed to the Bank.