BUSINESS & ECONOMY
Nigeria Stock Market Sees First Red This Week
The domestic equities market ended on a sour note for the first time this week, with the NGX-ASI falling 52 basis points to settle at 44,625.18 points. As a result, the market’s year-to-date (YTD) return fell to 4.8% from 5.0% the previous trading day.
REGALINS (+8.7%), SOVRENINS (+8.0%), and JAPAULGOLD (+7.4%) were the market’s top gainers. However, the top losers today were PHARMDEKO (-9.8%), LINKASSURE (-9.3%), and WAPIC (-8.3%).
Total volume traded increased by 61.4%, but value exchanged decreased by 54.1%, to 61.4 million units and 1.6 billion, respectively. With 47.8 million units, 22.6 million units, and 8.9 million units, respectively, MBENEFIT, PHARMDEKO, and TRANSCORP lead the volume chart. AIRTELAFRI, MTNN, and ZENITH BANK, on the other hand, lead the value chart with 573.5mn, 340.7mn, and 122.2mn, respectively.
The performance of indices under our purview was more bullish, with two indices rising and one falling. Meanwhile, the Industrial Goods and Oil and Gas indexes finished marginally down.
According to performance, the Banking index led gainers with 110bps, followed by the Consumer Goods index, which gained 1bps. The increases are attributed to buyer interest in ZENITH BANK (+2.6%) and NB (+0.1%), respectively. The Insurance index, on the other hand, was the single loser, falling by 98 basis points. The drop in LINKASSURE (-9.3%) was mostly responsible for the loss.
REGENCY ALLIANCE INSURANCE PLC, today’s top gainer, finished with 1.8 million units traded and $9.4 million in value moved.
According to the most recent annual audited report, the firm produced an average of 5.8 billion in gross premiums written from 2017 to 2021. The overall premium written climbed by 17.2%, rising from 5.5 billion in 2017 to 6.5 billion in 2020.
However, according to our estimate, the total premium written fell by 21.8% to 5.1 billion at the conclusion of its fiscal year 2021. Furthermore, our study reveals that Regency Alliance Insurance has maintained a decent debt ratio during the last five years. In 2017, the debt ratio was 0.3, and it will be 0.4 from 2018 to 2021.
On daily currency updates, I&E and the parallel market’s prices closed at ₦441.67/US$1.00 and ₦778/US$1.00 respectively. The current P2P Forex market price is ₦771.00/US$1.00. Nigeria’s external reserves is currently US$37.52bn.
The Group Chief Executive Officer of Nigerian National Petroleum Company ( NNPCL), Mele Kyari, has confirmed that the oil firm would have gone into liquidation at the end of June and commended President Bola Ahmed Tinubu for removing the subsidy.
He also disclosed that there are about 4, 800 illegal connections on over 5,000 kilometres of oil pipelines across the country.
This is even as the company disclosed that as a fully commercial entity now, NNPCL between July and November this year, remitted N406 billion into the Federation Account as dividend.
Kyari, who spoke during an interface with the members of the committee on Appropriations on Friday in Abuja, also spoke on the workability of 1.78 million oil production per day and $77.96 oil price benchmark for the 2024 budget.
Kyari said that the oil component of the budgetary projections are realistic and realisable despite the fact that the country presently produces average of 1.5 million barrels of oil per day.
He said: “As it is today, about 4,800 illegal connections are made on the over 5,000 oil pipelines across the country .
“The illegal connections on oil pipelines in the Niger Delta is so rampant that within 100kilometres of the affected pipelines, 300 insertions are made on them, which eventually made the pipe to be weakend to the point of not being able to hold pressure of oil pumped, let alone, delivering it to targeted destination.
“Additionally , it is abnormal to engage non – state actors to protect critical assets like oil pipeline. We have however responded abnormally and getting results, because unlike as it was in July 2022 when less than 1.2million barrels of oil were produced by day, it has been 1.5million barrels per day within the last two to three months.”
He, however, disclosed when asked if the projected oil production per day, can be jerked up to 1.8million from 1.78million , that the projections and parameters set in the proposed budget, are okay for NNPCL and realisable .
He also informed the committee members that the 1.78million barrels per day oil production for the 2024 budget, include condensate, which are 200,000 to 300,000 barrels per day .
He added that as a fully commercial entity now, NNPCL between July and November this year , remitted N406billion into the Federation Account as dividend.
The Chairman of the Committee, Senator Solomon Adeola, said Kyari has strengthened their convictions on workability of the assumptions and projections of the 2024 budgetary proposals.
The Compliance Institute of Nigeria (CIN), Nigeria’s flagship umbrella body for all compliance professionals and practitioners in the country, will expand its membership on Saturday, December 9, 2023, with new members joining the League of Professional Compliance Officers as it holds its seventh Annual Induction ceremony in Lagos.
The physical induction ceremony will take place at Ijewere Hall, Bankers House, 19, Adeola Hopewell, Victoria Island, Lagos. The event will also be virtual broadcast via Zoom.
The Institute’s Annual General Meeting will also take place immediately following the induction ceremony.
The induction ceremony, by the institute, shall admit a new batch of Fellow Compliance Institute, Nigeria (FCIN), Associate Compliance Institute, Nigeria (ACIN), and Designate Compliance Institute, Nigeria Professional (DCP) who have passed its prescribed examinations.
Six eminent personalities within the public and private sectors in West Africa, who have contributed to the growth and development of the compliance ecosystem, will also be honoured with fellowship membership by the Institute, whilst deserving top performers in the examinations will be awarded prizes.
The hybrid event with the Keynote theme ‘‘Compliance in the Digital Era- The Role of Artificial Intelligence in Enabling an Effective Compliance Culture”, will be delivered by the GM & E, Mobile Telecommunications Nigeria, Ibe Kalu Etea as Keynote Speaker, and broadcast digitally to both virtual and physical audiences.
It will be witnessed by compliance professionals across the world including policymakers, regulators, law enforcement officers, and standard setters.
According to the Registrar, Compliance Institute, Nigeria (CIN), Mr. Ini Esau, “433 student members, who have completed the professional certification examinations of the institute in 2023, will be inducted, whilst deserving top performers in the examinations will be awarded prizes. Also expected at the ceremony are corporate titans from different sectors.’’
Compliance Officers and organizations today face an increasingly complex and evolving regulatory landscape, making compliance a critical aspect of business operations. In the digital era, artificial intelligence (AI) is emerging as a transformative force, enabling businesses to achieve a more effective and proactive approach to compliance.
The adoption of AI in compliance has the potential to revolutionize the way organisations manage compliance risks and foster a culture of ethical conduct. By leveraging AI, organisations can significantly enhance their compliance effectiveness, reduce costs, and protect their reputation. With the growth and widespread acceptance of Artificial intelligence, no doubt comes with it, its attendant risk.
This year’s thought-provoking topic, ‘‘Compliance in the Digital Era- The Role of Artificial Intelligence in Enabling an Effective Compliance Culture.’’, seeks to help Compliance professionals stay abreast of the interplay of Artificial intelligence, the associated risks and challenges to the workplace.
Reaffirming the institute’s commitment to this year’s topic, the President, of Compliance Institute, Nigeria, Pattison Boleigha, said: ‘‘The global compliance landscape is constantly evolving owing to several factors, including Artificial Intelligence, the dynamic nature of financial crimes, emerging money laundering, terrorist financing and proliferation financing (ML/TF/PF) threats, advancements in technology, and the ever-changing international standards”
Updating industry stakeholders on the progress made by the institute, the Vice President, of Compliance Institute, Nigeria, Isah Aminu Buhari, said, “The Compliance Institute, Nigeria (CIN) Charter Bill has passed its first reading on the floor of the Senate within a year.
“All necessary steps to ensure that the Bill is passed and signed into law, are being taken. The Bill, when passed will further enhance Nigeria’s efforts to address the deficiencies that led to the ‘Grey Listing’ of Nigeria by the Financial Action Task Force”
The Compliance Institute, Nigeria’s vision is to be acknowledged nationally and globally as the standard-setter for compliance practice within the financial industry in Nigeria, whilst its mission is to maintain and promote regulatory standards for the Industry by facilitating and encouraging professional development and accreditation for its members (individual and Corporate).
The Compliance Institute for Banks and Other Financial Institutions in Nigeria Ltd/GTE, also known as “Compliance Institute, Nigeria” (CIN) was registered on Thursday, 22nd January 2015 and commenced operations in 2017. The Institute was established to encourage, promote, and revive the consciousness of regulatory compliance within and outside the financial industry in the country.
The Institute seeks to create and build a body of professionals and corporate organizations from a range of industries established and recognised for integrity, professionalism, and strict adherence to regulatory and non-regulatory standards in and outside the business environment.
Peter Obi, the Labour Party’s presidential candidate, has bemoaned the loss of another major international corporation after Procter & Gamble announced its withdrawal from Nigeria this week.
Obi lamented in a message posted on his X account that the exits of major global brands such as P&G and GlaxoSmithKline signal dwindling faith in the country’s economic prospects.
“The presence of these iconic companies signifies trust and belief in the medium to long-term socio-economic outlook of the countries where they operate,” Obi explained, adding that “their investments create jobs, spur innovation, and develop local talent.”
“In the face of the absence of the rule of law, and a conducive business environment, it will be difficult to retain such iconic companies and talk more about attracting new ones,” he said.
He noted that P&G, maker of Pampers diapers and Gillette razors, invested heavily in local operations over the past 15 years but is now selling its state-of-the-art Agbara supply chain facility.
According to him, without changes, more flagship companies will follow them out the door.
He also noted that French pharmaceutical titan Sanofi-Aventis, and Norwegian energy leader, Equinor have already divested from the Nigerian market.
The loss of such giants and their contributions to growth, jobs, and technology represents a major blow, he reiterated.
Obi urged swift government action at the federal, state, and local levels to reverse the deterioration of the business environment before even more household brands exit Africa’s largest economy.
“National greatness and development cannot be pursued in an atmosphere that is scaring away strategic international investors,” he emphasised.
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