Connect with us

Business

NSE Targets 500 Firms In Five Years

Published

on

The Nigerian Stock
Exchange (NSE) targets 500 companies for initial public offerings over the next five years as Africa’s second-largest bourse seeks to attain $1tn market capitalisation by 2016.
The Tide source quoted the Director-General, Securities and Exchange Commission (SEC), Ms. Arunma Oteh, as saying the NSE expects five companies to start trading their shares by the end of the year.
Oteh, who spoke in an interview in London, did not, however, identify the businesses, according to Bloomberg.
The bourse needs oil and gas, power and telecommunications companies to list stock to meet its market-value objective, she said.
Oteh said, “There are a number of large, significant companies that are preparing to come to the market. Power producers needing funds to cover spending needs are expected to list at some point, while talks are being held with telecoms companies on encouraging them to trade their shares.”
The NSE’s All Share Index gained 33 per cent this year, compared with a 1.3 per cent decline in the MSCI Emerging Markets Index, for a market capitalisation of $74bn, excluding exchange-traded funds and depositary receipts.
The nation’s economy, the continent’s second largest after South Africa, which also has the largest stock and bond markets, may expand 6.75 per cent next year, compared with an estimate of 6.5 per cent in 2013, according to the Minister of Finance, Dr. Ngozi Okonjo-Iweala.
The Head of Research at Lagos-based Vetiva Capital Management Limited, Pabina Yinkere, said, “It is an ambitious target. The NSE has to list large corporations. There has to be incentives to list and economic growth. The equity investment climate globally has to be right and favourable to the country.
“Some factors that will support the target are global in nature and outside the control of the NSE, making the realisation even more challenging.”
While Nigeria’s Lagos-traded stocks also rallied last year, rising 35 per cent, the gains didn’t translate into more initial public offerings.
The number of listed companies declined to 194 in 2012, from 198 in the previous year, according to stock exchange data.
The benchmark equities gauge of Africa’s largest crude producer is the 10th best performer among 94 indexes tracked by Bloomberg this year and fourth best in Africa after the key measures of Ghana, Kenya and Zambia.
Improved corporate governance standards and a consistent approach to market regulation will encourage more companies to sell shares, Oteh said.
A dual listing planned by an oil exploration and production company will be “defining” and may encourage others to follow, she said.
The Nigerian regulator approved the listing and is expecting a consent by next month from the other exchange, Oteh said, declining to give details other than to say that the company has a track record of acquiring fields from international oil producers and making them viable.
The Chief Executive Officer, Financial Derivatives Company, Mr. Bismark Rewane, said the goal of increasing the number of listings from the 193 securities on the all-share index was only attainable if “there are incentives.”

Continue Reading

Business

11m Benefitted From $415m World Bank Supported CSDP  – FG

Published

on

The Federal Government has disclosed that 11 million Nigerians benefited from $415 million World Bank-supported Community and Social Development Project (CSDP) programme.
Minister of Humanitarian Affairs, Hajiya Umar Farouq, disclosed this in an opening address during the close out ceremony of the CSDP programme.
According to Farouq, 11 million direct beneficiaries with an estimated 25 million indirect beneficiaries across 29 states and the Federal Capital Territory (FCT) were reached between 2009 and 2021 when the CSDP programme was being implemented.
She also described the project as highly successful and highlighted sectors the project focused on including health, education, transportation, electrification, community housing, and others.
She said: “The Project became effective in 2009, has had two additional financing, all totaling USD415 million. In its over 11 years of existence, the CSDP has evolved into one of the strong pillars for the implementation of the Social Protection Programmes of the Federal Government under the supervision of my Ministry through the National Social Safety Nets Coordinating Office (NASSCO).
“The CSDP operates with the core principle of Community Driven Development (CDD) Approach.  This is a development paradigm that focuses on the needs of the poor and vulnerable and empowering them with development resources to address their peculiar needs.
“Using this unique approach, the CSDP has implemented micro projects in poor communities across the 543 Local Government Areas of 29 States and the Federal Capital Territory.
“This represents about 70 per cent of the total number of Local Governments in Nigeria.  The poor communities are identified specifically through the use of Poverty Maps agreed to by each participating State and FCT.
“The Project has made substantial impact on improving access of the poor and vulnerable to social and natural resources infrastructure across the benefiting communities.  The total number of beneficiaries of CSDP stands at 11 million direct beneficiaries across the 29 states, with estimated 25 million indirect beneficiaries.
“Specifically, the CSDP has achieved the following: Successful completion of 16,166 micro-projects in 5,664 communities and 934 vulnerable groups.  These micro-projects cut across eight sectors of intervention namely education, health, water, transportation, electrification, socio-economic, environment and community housing; 5,764 classrooms, 1,323 health centres and 4,442 water micro projects were constructed and or rehabilitated.

Continue Reading

Business

Cooking Gas Use Campaign Begins In 12 States

Published

on

The Federal Government in collaboration with the Nigerian Energy Support Programme has kicked off the national sensitisation and awareness campaign for the use of Liquefied Petroleum Gas in Nigeria beginning with 12 pilot states.
The states include Sokoto, Katsina, Bauchi, Gombe, Enugu, Ebonyi, Delta, Bayelsa, Lagos, Ogun, Niger and the Federal Capital Territory.
The government said the campaign to ensure increased usage of LPG, popularly called cooking gas, was in line with its ‘Decade of Gas’ initiative, adding that its socioeconomic and health benefits far outweighed the use of kerosene and firewood.
Speaking at the inaugural campaign in Abuja, Tuesday the Vice President, Prof. Yemi Osinbajo, said there was no excuse for Nigeria not to be able to develop its gas sector considering the huge gas reserves in-country.
Osinbajo, who was represented by the Programme Manager, National LPG Expansion Plan, Office of the Vice President, Dayo Adeshina, said the use of LPG would help in cutting down gas flaring in Nigeria.
He said the government was working to ensure that Nigeria achieved the five million metric tons LPG consumption target, adding that efforts were being made to ensure the provision of cylinders at affordable rates to Nigerians.
“Our gas reserves in this country are enormous and we have every reason to develop the gas sector and ensure that our citizens use LPG,” the Vice President said.
He added, “The use of LPG is good for our health and has better socioeconomic benefits and this is in line with the ‘Decade of Gas’ initiative of government.”
Recently, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said over 120 million Nigerians were experiencing energy poverty despite the huge natural gas resources across the country.
Participants at the awareness campaign also called for adequate penetration of LPG usage in Nigeria, as they pledged to support the government in achieving this target.

Continue Reading

Business

Rail Transport Suffers 38% Decline In Q1 2021 – NBS

Published

on

Rail transportation suffered a 38 per cent, year-on-year average decline in passenger and cargo travel in the first quarter of the year 2021 (Q1’21).
The National Bureau of Statistics (NBS) disclosed this yesterday in its Rail Transport Data for Q1’21, which  showed that passenger travel fell by 34.4 per cent, year-on-year, to 424,460 passengers   in Q1’21 from 647,055 passengers recorded in Q1’2020.
Similarly, cargo travel fell by 43.13 per cent, year-on-year, to 10,511 tons in Q1’21 from 18,484 recorded in Q1 2020.
The NBS stated: The rail transportation data for Q1 2021 reflected that a total of 424,460 passengers travelled via the rail system in Q1 2021 as against 647,055 passenger recorded in Q1 2020 and 134,817 in Q4 2020 representing -34.40 per cent decline year-on-year and +214.84 per cent growth QoQ respectively.
“Similarly, a total of 10,511 tons of volume of goods/cargo travelled via the rail system in Q1 2021 as against 18,484 recorded in Q1 2020 and 35,736 in Q4 2020 representing -43.13 per cent decline year-on-year and -70.59 per cent decline QoQ respectively.
Revenue generated from passengers in Q1 2021 was put at N892,467,526 as against N398,999,290 in Q4 2020. 
Similarly,revenue generated from goods/cargo in Q1 2021 was put at N26.19 million as against N82.57 million in Q4 2020.

Continue Reading

Trending