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SEC, CIS Urge Greater Local Participation In Stock Market

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The Securities and Ex
change Commission (SEC) and the Chartered Institute of Stockbrokers (CIS) have reached a consensus to prioritise investor education in a bid to boost the participation of domestic investors in the nation’s capital market.
About 60 per cent of the Nigerian Stock Exchange (NSE) is currently dominated by foreign investors while only about three million Nigerians are believed to be participating in the market.
However, the Acting Director-General, (SEC) Alhaji Mournir Gwarzo, said enhanced investor-education remains key to altering the current balance and encouraging the development of domestic retail and institutional investors.
Speaking to journalists in Abuja, shortly after a meeting with members of CIS led by its president which paid him a courtesy visit, Gwarzo also stressed the need to have strong, regular as well as fit and proper operators to drive the development of the market.
He said the commission would consider areas of assistance to operators in order to boost investor education while SEC would also “look at areas we think they should also step up”.
“We are going to step up our investor education programmes, we are going to collaborate with both the trade association so that we will be able to reach out to the markets. We believe by the time we do so well in terms of investor education, the level of investment from the capital market particularly the domestic side would go up”, Gwarzo said.
He added that on the international front, an enabling environment had already been created for foreign investors and was still being improved upon. “The rules are very friendly, we amend our rules as much as possible to meet international standards.”
Meanwhile, the President/Chairman, Governing Council, CIS, Mr Albert Okumagba, described the current savings mobilisation platforms as weak especially as it related to collective investment schemes, insurance, pensions and banking products.
He said the focus would be to pursue the inclusion plan for the country by training and enhancing local participation.
Okumagba said with the leadership of SEC, “we are going to help in broadening the participation of Nigerians so that to mobilise the savings, we need to fund the infrastructure gaps across the country.

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CBN Kicks As MTN Begins Charges For USSD Transactions, Today

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The Central Bank of Nigeria (CBN) has opposed plans by the telecommunication service provider, the MTN, to charge their subscribers for Unstructured Supplementary Service Data access to banking services from today.
The Governor of CBN, Mr. Godwin Emefiele, gave the bank’s position at a news briefing by the Nigerian delegation to the just-concluded World Bank/International Monetary Fund Annual Meetings, in Washington, yesterday.
The Tide reports that MTN, in an SMS message to its subscribers, had said the decision was on the request of the banks and would take effect from October 21 (today).
“Yello, as requested by your bank, from October 21, we will start charging you directly for USSD access to banking services.
“Please, contact your bank for more info,’’ the message said.
Responding to a question seeking his reaction to the announcement, the CBN governor said the bank would not allow that to happen.
“About five, four months ago, I held a meeting with some telecom companies as well as the leading banks in Nigeria at Central Bank, Lagos.
“At that time, we came to a conclusion that the use of USSD is a sunk cost.
“What we mean by a sunk cost is that it is not an additional cost on the infrastructure of the telecom company.
“But the telecom companies disagreed with us. They said it was an additional investment on infrastructure and for that reason, they needed to impose it.
“I have told the banks that we will not allow this to happen.
“The banks are the people who give this business to the telecom companies and I leave the banks and the telecom companies to engage.
“I have told the banks that they have to move their business, move their traffic to a telecom company that is ready to provide it at the lowest possible, if not zero cost.
“And that is where we stand, and we must achieve it,’’ he said.
The Tide reports that the transactions to be affected by the charges include intra- and inter-bank money transfers, through USSD, among others.

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OML 53: NDPR, Omerelu Community Sign GMoU

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The Niger Delta Petroleum Resources (NDPR), operators of the Oil Mining Licence (OML) 53, and Omerelu Community in Ikwerre Local Government Area of Rivers State, have signed the Global Memorandum of Understanding (GMoU).
After back and forth deliberations which began in May 2019, the two parties finally signed the document which was read to the hearing of all stakeholders, last Friday, by representative of the Permanent Secretary, Rivers State Ministry of Justice (Mrs.) Florence Fiberesima,
Representative of the state government, and Permanent Secretary, Ministry of Chieftaincy and Local Government Affairs, Mr Felix Odungweru, who expressed happiness shortly after the ceremony, stated that the signing of the GMoU would enhance the economy of federal, state and local governments, due to the peaceful coexistence that would emanate from the official pact between NDPR and the Omerelu community.
According to him, “it portends that the economy of the state, federal and local governments would be enhanced, where there is peace, there is a working understanding.”
Odungweru noted that with the signing of the GMoU, the company would not shy away from its Corporate Social Responsibilities (CSRs), saying “in executing it’s Corporate Social responsibilities, the company goes into a GMoU with host community where all issues are straightened and stretched out”.
He said further that the pact was a “demand driven action, triggered by the community, which process started in May 2019 and concluded in October”.
On his part, the representative of the Board of Trustees, NDPR, Chief Enyindah Chukwu, expressed optimism that the GMoU would bring growth for both the community and the company operating in the community, in this case NDPR.
Chief Chukwu said, “if they play by the rules, the company would have a conducive environment to operate in as well as peace”, adding that the host community would benefit from the presence of the company operating in the area.
He explained that the GMoU was renewable every three years from the date of signing.
Also speaking, the paramount ruler of Omerelu, Eze Ben Ugoh, the Eluwa 8th of Omerelu, expressed appreciation to God and the company for the pact and expressed optimism that the community would benefit in terms of employment, development and empowerment.

 

Tonye Nria-Dappa

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Nigeria To Get $3bn World Bank Loan For Power

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The Minister of Finance, Mrs. Zainab Ahmed, has said that the Federal Government’s request for a World Bank loan to finance the power sector is on the verge of being granted.
Ahmed stated this yesterday at a media briefing on the activities of the Nigerian delegation to the just-concluded annual meetings of the World Bank/International Monetary Fund Annual Meetings in Washington.
“We put a request for financing of the power sector at a range of $1.5bn to $4bn.
“At the end of the day, it looks like we will be looking at a funding size of $3bn that will be provided in four tranches of $750m each.
“Our plan is that the team will be able to go to the World Bank for the approval of the first tranche in April 2020,’’ she said.
The minister explained that the loan would be used to plug funding gaps and tariff differentials, which she said private investors in the sector had always complained about.
She said a portion of the money would go into the transmission segment of the electricity value chain.
If the government is able to expand the facility to four billion dollars, the additional one billion would be used for the distribution segment, she said.
“It will help us to exit the subsidy that is now inherent in the power sector.
“It is supposed to be to reform the sector and to restore the distribution business side of the sector especially to put it on a stronger footing.
“This is to ensure that they are freed up enough to be able to go out and raise financing to invest in expanding the distribution networks,’’ she said.
Ahmed stated further that the financing would also cover the gap between the current tariff and the actual cost of generating electricity.
“It will also enhance our ability to pay previous obligations in the sector that have crystallised so that investors in the sector can go on with expanding investments in the sector.
“The distribution sector will be at the backend when the other reforms have been carried out.
“It will be a loan to the distribution companies because they are owned by the private sector,” the minister said.

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