Business
2011: Stakeholders Count Losses From Capital Market
Operators in the Nigerian capital market will for long remember 2011 as a year the Nigerian Stock Exchange recorded persistent share price losses.
Specifically, at the close of 2011, the All-Share Index had depreciated to around 20,722.43 from the opening figure of 24,770.52 at the beginning of the year. The market capitalisation also lost about N1.65 trillion during the year.
According to report some stakeholders attributed the situation to some challenges, like inadequacy of the regulatory framework, which they said eroded investor confidence in the market.
The operators said that these challenges were also due to constant review of the interest rates, nationalisation of three commercial banks and unguarded pronouncements by the regulators, which caused further panic in the market.
Chief Executive Officer of Maxifunds Investment and Securities Limited, Okechukwu Unegbu, said that the market performed below expectations of operators in 2011.
Unegbu said that many operators and investors recorded losses as a result of the poor performance of the market and urged the regulators to urgently address the crisis of confidence and illiquidity rocking the market.
He said that the problem started during the global financial crisis in 2008 and the regulators had failed to address the problem like in other countries.
Chief Executive Officer, Pilot Finance Limited, Seyi Osunkeye, also described the performance of the market in 2011 as dismal.
He said that the market operators were disappointed at the turn of events in 2011 since a 50 per cent market growth had earlier been predicted for the year.
Osunkeye attributed the decline in the market performance to the banking sector reforms, increase in interest rates that caused movement of funds to money market instruments and liquidity crunch.
President of Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie, said that the market recorded the lowest performance in the last eight years.
Okezie said that the reforms of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) completely eroded investor confidence in the market.
He said that the market performed badly in spite of strong fundamentals of some quoted companies, adding that many equities were selling below their real value.
He pointed out that some investors had developed apathy after losing billions of naira in the three nationalised banks of Afribank, Spring Bank and Bank PHB.
President, Nigeria Shareholders Solidarity Association (NSSA), Timothy Adesiyan, said that many shareholders learnt their lessons in 2011.
Adesiyan said that he was bitter about the erosion of value of investments in the market, adding that investors would no longer rush to invest in the market.
He said also that current developments would not encourage old and potential investors to invest in the market.
The operators explained that the delisting by the NSE council of some companies created wrong impression among investors about the true state of health of the capital market.
The number of listed companies dropped from 217 in December 2010 to 201 in 2011.
The challenges gave credence to reasons offered by the Nigerian Bottling Company, United Nigerian Textile Mills and Nampak Nigeria to seek voluntary exit from the market.
In the bid to restore investor confidence in the market, the interim management of the NSE was disbanded while a new helmsman, Oscar Onyema, was appointed on April 4, 2011.
The new chief executive officer took some initiatives to restore investor confidence and enhance liquidity in the market.
Some of the initiatives included market segmentation, introduction of Exchange Traded Funds (ETFs) and introduction of market makers.
Others were the introduction of new securities lending, revised listing requirements to attract new companies, revised share buy-back policy and investors clinics.
While introducing these initiatives, the NSE said that they were to serve as the pillars for long- term growth of the market.
Some of the long- term growth objectives of the market, as highlighted by Onyema, included achievement of one trillion dollar market capitalisation by 2016 and introduction of new products like options and futures.
Despite of the current challenges, the market still remains a viable tool for economic development.
However, Federal Government has been urged to hasten the forbearance stimulus being packaged for stockbrokers as a way of reviving the ailing market.
Business
NIGCOMSAT Seeks Policy To Harness AI Potentials
The Nigerian Communications Satellite Limited (NIGCOMSAT), the country’s satellite operator, has called for immediate promolgation of policy action that will enable the country to harness the potentials of Artificial Intelligence (AI).
NIGCOMSAT, also warned that Nigeria risks missing out on Africa’s projected $1.2trillion share of the global AI economy by 2030.
Managing Director of NIGCOMSAT, Nkechi Egerton-Idehen, disclosed this in a statement issued at the weekend following her participation in the Meeting of the National Council for Communications, Innovation, and Digital Economy.
“Artificial intelligence is reshaping industries, economies, and societies worldwide, with projections that it will contribute up to $15.7trillion to the global economy by 2030. Africa stands to gain $1.2trillion of this if the right policies and innovations are in place”, Idehen said, citing a PricewaterhouseCoopers report.
The NIGCOMSAT MD underscored the transformative potential of AI in agriculture, highlighting its applicability in Benue State, widely regarded as Nigeria’s “food basket.”
According to her, machine learning tools could revolutionize agricultural practices by improving pest detection and optimizing planting schedules using satellite imagery.
“AI offers us the chance to not only flourish economically but also to achieve food security. However, we must ask ourselves if we are prepared to manage this technology responsibly”, she added.
Idehen also noted that internet access remains a significant barrier to AI adoption in Nigeria.
“For AI tools to be effective, basic digital infrastructure is essential. Addressing this gap must be a priority.
“AI is happening. We have the opportunity to manage this technology revolution responsibly, both in Africa and globally, through innovation and governance”, she said.
In August 2024, the Federal Ministry of Communications, Innovation, and Digital Economy released a draft National Artificial Intelligence Strategy, aiming to position Nigeria as a global leader in AI.
Corlins Walter
Business
We Have Spent N1bn On Electrification -LG Boss
The Chairman of Emohua Local Government Council, Chief David Omereji, has said the council has so far spent over N1 billion for the electrification of communities in the area.
Omereji said this while addressing staff of the council at the council headquarters recently.
He said the move was part of his administration’s resolve to ensure peace and development of the LGA.
According to him, the Council spent about N29 million on monthly basis for the maintenance of the Emohua Local Vigilante group known as OSPAC, with each member being paid a stipend of N100, 000 monthly.
He diaclosed that 11 out of the 14 wards are currently enjoying electricity, while efforts are on to light-up the remaining ones.
“I also want to use this opportunity to inform the political class for purposes of records and for the understanding of the people that the Council under my watch have done more than enough”, he said .
The Emolga boss explained that all that have been achieved were through the personal effort of the Council, without support from anybody as rumoured in some quarters.
Omereji further reaveled that a number of other projects, including roads, fencing of schools, hospitals, courts premises, and reconstruction of some abandoned buildings at the Council Headquarters are being undertaken by his administration.
He enjoined the people of the area to support his administration’s drive to bring purposeful development to the LGA.
The Emohua Council boss, who reiterated his hatred for noise making, stated that his works would speak for him, and solicited the support of staff of the council and the entire people of the area.
He noted the fact that some people may not be happy with his achievements, saying that he would remain focused, while advising critics of his government to do so constructively with facts and figures.
King Onunwor
Business
Ogoni Rejects NNPC-Sahara OML11 Deal … Wants FG’s Intervention
The Movement for the Survival of the Ogoni People (MOSOP) has raised some ethical questions over a Financial and Technical Services Agreement (FTSA) between Sahara Energy and West African Gas Limited (WAGL), an affiliate of the Nigerian National Petroleum Company (NNPC).
MOSOP said the agreement was not done in good faith, not in the interest of the Nigerian people, and did not follow due process.
Foremost Ogoni born activist and MOSOP leader, Fegalo Nsuke, who made this known in Abuja, weekend, described the Sahara-WAGL deal as fraudulent, deceptive and an insult on the intelligence and integrity of the Nigerian nation.
Nsuke called on President Bola Ahmed Tinubu to cancel that FTSA between Sahara Energy and WAGL, noting that the agreement is fraught with irregularities and deceptive.
“What Sahara and the NNPC did in the FTSA between Sahara and WAGL is shameful and depicts high level corruption in public service of our country.
“WAGL is an affiliate of Sahara and the NNPC. How then can Sahara go into an agreement with its own affiliate? It’s as good as going into an agreement with itself. This is deceptive and fraudulent”, Nsuke said.
He continued that “Sahara Energy is certainly not a company the Ogoni people want on their soil and we are calling on Mr. President, Bola Ahmed Tinubu, to terminate any deal between the NNPC and Sahara Energy over OML 11, and to allow for an inclusive arrangement that considers a fair treatment of the Ogoni people in the distribution of revenues from natural resource extraction on Ogoni soil.
“The last Ogoni Congress has been unequivocal on the Ogoni demand for justice and has given a clear path to resolve the three decade old conflict between all critical parties.
“It will be good to explore this path to peace and development for Ogoni and for our country”.
Nsuke accused Sahara Energy and the NNPC of frustrating the progress made by MOSOP to achieve a permanent solution to the Ogoni problem.
He urged a presidential intervention with deep consideration for a fair treatment of the Ogoni people in order to permanently address the problem.
He noted that Sahara Energy should give up on the Ogoni area to allow for an engagement in the interest of the country and the people.
Recall that MOSOP and Sagara Energy have recently been engaged in a row in what MOSOP describes as an unholy relationship between Sahara Energy and the NNPC over OML 11.
MOSOP expressly rejected Sahara Energy and called for a fair treatment of the Ogoni people in natural resource extraction in Ogoni.
It noted that Ogoni people, led by MOSOP, paid the sacrifice to take the oil from Shell, hence “the position of MOSOP must be taken into consideration in decisions relating to resumption of oil production in Ogoni”.
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