The recently proposed plain to re-denominate the nominal value of shares by the Nigerian Stock Exchange (NSE) is seen as an unnecessary exercise by capital market analysts. The Exchange’s authorities has revealed plans to change the per value of shares from the 50 kobo it is now to N1: A major reason given for the plan is the need to firm up the market, make it more compact and efficient by streamlining the share structures of quoted players. This, it is believed, would help pricing and restore investor confidence.
Investigation carried out revealed that some market operators are not excited by the plan due to the fact that not all the companies on the floor of the Exchange have bloated share structures.
The Assistant General Manager of NSE, Mr. Sola Oni, had described the move as a “good development for the market”. He said that stakeholders would be invited for the issue to be deliberated upon before the implementation.
Mr. Samuel Olayemi, a consultant with perfection Nominees Limited, noted that it is an unnecessary exercise to embark upon. He said that companies were listed at their nominal value after a conclusion, was made that all should come into an equilibrium whereby all of them would be rated at the same nominal value of 50 kobo ordinary share.
He observed that moving the nominal value to NI is asking the companies to go into unnecessary expenditure. “The book value of the companies would not change but they would have incurred unnecessary costs”, he said.
Mr. Funmi Abiodun, a stockbroker with Supra Commercial Trust Limited, pointed out that the implication of this initiative is that the volume of shares in the market would be reduced by 50 percent while the par unit price of the stocks would double.
Abiodun suggested that companies with large volumes of shares be allowed to undergo share reconstruction in their own interests and should not be a forced action for all companies in the capital market.
The National Chairman of Pregressive Shareholders Association of Nigeria, Mr. Boniface Okezie, said that the exercise would add no value to the investment of shareholders on the floor of NSE.
He noted that going by naira value as the nominal value for stocks should mean that companies should also pay dividend in naira value, which he did not see happening, especially in the insurance sector.
He advised that instead of the exercise share reconstruction should be carried out by companies with bloated shares while the ones with lesser share structure should apply sharebuy-back.
Piracy, A Threat To NNPC Operations -GMD
The Nigerian National Petroleum Corporation (NNPC) has described piracy and other criminal vices in the nation’s waterways as a threat to the corporation.
This is as the corporation said the nation lost about $750 million to oil theft in 2019.
The amount is about N230 billion at the official CBN exchange rate of N306 to $1.
This was contained in a statement by the NNPC Acting spokesman, Samson Makoji, on Wednesday.
The Group Managing Director, Mallam Mele Kyari, was quoted to have stated this during a presentation to members of the Executive Intelligence Management Course 13 of the National Institute for Security Studies (NISS) who visited his office.
Kyari noted that any threat to the corporation’s operations was a direct threat to the very survival of Nigeria as a nation because of the strategic role of the corporation as an enabler of the economy.
The GMD listed other security challenges facing the corporation to include vandalism of oil and gas infrastructure and kidnapping of personnel, adding that there was a deep connection between the various shades of insecurity challenges as they are all linked to what was happening in the Gulf of Guinea and the entire maritime environment.
He called for a concerted effort and synergy to secure oil and gas operations for the economic survival of the country.
Also speaking, the NNPC Chief Operating Officer, Downstream, Engr Yemi Adetunji, said in 2016, the Gulf of Guinea accounted for more than half of the global kidnappings for ransom.
He noted that out of 62 kidnap cases globally, 34 involved seafarers.
Adetunji, however, stated that the NNPC was working closely with security agencies to tackle the security challenges, and cited the “Operation Kurombe” that was recently conducted by the Nigerian Navy at the Atlas Cove as an example of such collaborative efforts.
FIRS Targets 17% Tax To GDP Ratio By 2023
The Federal Inland Revenue Service (FIRS), says it will raise Nigeria’s tax ratio to Gross Domestic Product ratio from the current six per cent to 17 per cent by 2023.
The FIRS Executive Chairman, Muhammad Nami, said this during a meeting with traders in Lagos.
A statement from the FIRS stated that the objective of the meeting was to sensitise Lagos traders and market unions on the 2019 Finance Act.
Over 100 officials of traders’ associations and unions attended the meeting.
He listed the benefits of the new Finance Act to include reduction of the Company Income Tax from 30 per cent to 20 per cent.
Nami urged the entrepreneurs to register their businesses officially rather than operate informally in order to access the benefits from the Act.
He urged the traders to separate their personal finances from their business capital in order not to lose their working capital to state tax bodies.
The FIRS stated that doing so would help their businesses to grow as they pay less tax.
He urged the traders to endeavour to charge value added tax on applicable goods and services, especially consumption, and remit it to the FIRS promptly.
Nami also disclosed that more FIRS tax offices would be opened in markets nationwide to bring the service nearer to traders and make tax compliance easier for them.
He said the FIRS under his watch would reposition its corporate social responsibility activities to benefit the informal sector, including markets, in order to create a conducive business environment for them.
SON Opens Talks With China Over Sub-Standard Products
In a bid to check the menace of substandard goods in the country, the Standards Organisation of Nigeria (SON), has opened talks with Chinese trade authorities.
Special Assistant to the Chief Executive of SON and Head of Public Relations, Mr Bola Fashina, disclosed this in an interactive session with newsmen in Lagos on Wednesday.
Fashina said the deal with China would ensure that Chinese factories that produce items for Nigerian manufacturers implement at least the minimum Nigerian standards for goods destined for the nation.
According to him, discussion with the Chinese authorities was opened in June 2019 and had reached advanced stages.
He disclosed that another meeting that had been fixed for the first week of February could not hold because of the current coronavirus ravaging some parts of China.
The deal with China would ensure that factories in the Asian country reject orders from Nigeria that do not meet Nigerian standards.
Fashina said, “The authorities are not happy that some of their manufacturers are giving their country a bad name. That is why we are working with them to nip the problem in the bud.”
Generally, on the menace of substandard products, Fashina said that the regulatory body was having more challenges with imported goods than with the ones manufactured in the country.
He said for goods made in Nigeria, they could be taken back to the factory while it is difficult to make amends for goods that were manufactured abroad.
“Our major problem is with imports. That is also because it is difficult to catch them from the source. We have been out of the ports since 2011.
“Sometimes we work on information from Interpol. We follow them when they are out of the ports and sometimes we miss them,” he stated.
Fashina said that importers of substandard products prefer taking their goods from the ports during weekends and public holidays.
He said the facilities and centres of the organisation across the country had been strengthened to rein in substandard products throughout the federation.
Featured4 days ago
RSG Uncovers 11,000 Workers With Forged Age …1,500 With Multiple Pay Points, Identifies 5,000 Fake Pensioners
News2 days ago
Rise Up Against Herdsmen, Danjuma Tells Nigerians …Says Meyitti Allah Determines What Happens In Presidency …Army Working With Buhari To Grab Lands, Give Same To Fulanis
Niger Delta3 days ago
Group Trains 300 Hunters To Save Gorillas In C’River
News2 days ago
Buhari Recognises Kyari As ‘Deputy President’ -Ex-Emir
News4 days ago
Wike Hails FG On New Enhanced E-Passport
Featured3 days ago
S’Court Judgement On Bayelsa: RSG Condemns Attacks On Peter Odili, Family …Bemoans FG’s Silence On Threat To Ex-Gov’s Life
Business3 days ago
Phone Dealers Lament Low Patronage, Laud Garrison Flyover Project
Editorial3 days ago
New Visa Policy, Good But…