The Nigerian Stock Exchange has refuted claims that Nigerians banks have an estimated N1 trillion trapped in the capital market as either facilities for margin loans or direct investment.
The loans, according to the Exchange, are loans granted to people who used their share certificates as collateral for other business purposes in the capital market.
Prof. Ndi Okereke-Onyiuke made the clarification at a meeting with chief executive officers of quoted companies and capital market correspondents.
According to her, the banks granted the loans to their clients using share certificates and shareholdings because of the liquidity they provide.
She explained that the share certificates and shareholding serve as collateral in the manner under which they were used and are not margin loans.
She contended that about N300 billion of the estimated amount was given to stockbrokers while other went into other ventures for real estate purposes, private placement purchase. She reiterated the Banana Estate and many other estates in Abuja and across the country have these trapped funds in building projects which developers could not sell because they were uncompleted.
She observed that most of the trapped funds are in real estate, were people borrowed to build instead of putting the money in the real estate sector of the NSE.
She noted that some of those who borrowed money used the money to buy private placement because of the promises that they will make a killing in private placement.
“A lot of private placement came; we counted about 180 in one year. 180 companies that ought to have gone to the bank for money went by way of private placement.
The Stock Exchange was shouting that these companies were conducting completion board meetings as if they were publicly quoted companies. They were supposed to print memorandum not prospectus but they were printing prospectuses. They were supported to print placement memorandum and place it before 50 business people”.
She contended that the fact that they were registered as public limited companies does not mean that these companies could raise money like publicly quoted companies.
Okereke-Onyiuke noted that the Exchange had to place a buyers’ beware caution in the newspaper to warn people from buying these private placements because of those who could not differentiate between quoted and unquoted companies that were petitioning them.
She said some people got loans while others sold their share in legally quoted companies to go and buy private placement because some told them “buy now at N2 and when we are listing we will be listing at N10 and you make N8 times the number you are buying. They have not come to list and the money is tied down”.
She said it was because of this that the Exchange established emerging markets.
FOI Act Implementation Bothers BPST Boss
The Director-General, Bureau of Public Service Reforms, Dr Dasuki Arabi, has expressed regrets that the implementation of the Freedom of Information Act (FOIA) has remained very low since the law was enacted.
The BPSR boss made the observation during a workshop held on Wednesday in Abuja on the appraisal of Freedom of Information Act.
Arabi said the Act was meant to entrench transparency and openness in governance through improved compliance to annual reporting obligations of public institutions.
“It is also expected to guide and improve compliance of public institutions in proactive disclosure of mandatory publication requirements, as well as empower citizens, the right to access information held by the state.
“Regrettably, since the introduction of the FOI Act, it is evident that the level of compliance among public institutions still remains low.
“While the level of engagement by citizens still remains insignificant and in some cases fraught with misunderstanding between the State and Non-State actors,” he added.
Arabi, therefore, said that the workshop was to resolve some of the grey areas around FOI, as well as foster a harmonious relationship between the State and Non-State actors towards the implementation of the Act.
He said good governance and transparency would only thrive in the country when citizens access to Information is assured.
The DG emphasised that the FOIA provided platform for inclusiveness that sought to hold leaders to account and feed into the decision making process.
Arabi said that the Bureau had worked assiduously towards the implementation of the Act and was making efforts to ensure that it was institutionalized across the public sector.
He said that the interventions were in the areas of training public service workers and development of feedback mechanism through which a portal for application and responses for FOI request were deployed.
Others, he said, are score-card for ranking the performances of websites of public institutions using specific benchmarks, including FOI portal.
“Creating platforms for citizens engagement with Civil Societies Organizations on topical issues of government through the BPSR flagship programmes such as the monthly Lunchtime Seminar series,” he added.
Arabi said that the Bureau had also deployed information technology to provide innovative means to improve record keeping and management using intranet and Electronic Data Management Systems.
He continued that they were working in conjunction with the Nigeria Economic Summit Group to gauge the perception of citizens on public policies.
In her remarks, the National Coordinator, Open Government Partnership (OGP), Nigeria, Dr Gloria Ahmed, said making information open was a hallmark of democracy and a basic human right.
She said that the FOIA has given citizens the opportunity to access information as regards government policies and reforms.
FCTA Harmonises Mobile Adverts, Haulage System Against Double Taxation
The Federal Capital Territory Administration (FCTA), Department of Outdoor Advertisement and Signage (DOAS), has launched the FCT/State Mobile Advertisement and Haulage permits for 2023 financial year.
Permanent Secretary, FCTA, Mr Olusade Adesola, while launching the system sought the cooperation of the business owners in the FCT, in order to achieve the objective of the initiative.
Adesola said the move was part of efforts to facilitate the ease of doing business drive in the nation’s capital.
He commended DOAS for the initiative. aimed at improving institutional cooperation and partnerships with the critical stakeholders.
Adesola warned: “FCTA would no longer tolerate acts of thuggery in the collection of taxes, as there are better ways of doing such, which will ensure the attainment of ease of doing business.”
He commended the leadership of Area Councils for resolving to synergise with DOAS to streamline the system.
The Permanent Secretary said the proliferation of collection authorities for mobile advertisements had led to serious loss of Internally Generated Revenue (IGR) in the FCT.
Earlier, the Executive Chairman, Kwali Area Council, Danladi Chiya, said although Area Councils have the constitutional right to collect such advertisements, they have no issue with FCTA over the establishment and mandate of DOAS.
LASG Begins Vehicle Parking Lanes Demacation
The Lagos State Parking Authority (LASPA) has revealed it will today commence creating additional Vehicle Parking Lanes in some selected locations across the State.
The Authority stated that all efforts have been geared towards improving the parking system of the State.
Speaking on the planned initiative on Friday in Ikeja, the General Manager of LASPA, Mrs. Adebisi Adelabu, stated that the vehicle parking lane mark exercise, which will begin with designated streets within Surulere, Ikoyi, Lekki, Obalende, Ikeja and Victoria Island axis of the State, is a step towards improving street parking from 2023.
Adelabu noted that the Parking Lane Markings will further guide motorists and pedestrians on appropriate parking regulations and spaces, minimise indiscriminate parking, confusion and uncertainty, while conveying a range of information to residents on parking procedures within each specified environment.
According to her, the lane markings will also include special consideration for people living with disabilities and signposts for parking directives, among other features.
The General Manager, however, solicited the understanding of residents within the locations who might be affected by any inconvenience the process might cause, assuring that the government is working rigorously in regulating and improving the parking culture as part of its Traffic Management and Transportation Agenda to ensure parking is convenient, safe and secure across the state.
Recall that the Authority had recently unveiled plans to begin full implementation of parking policy in the second quarter of 2023 and has continued to sensitise the public on the need to embrace the parking culture.
By; Nkpemenyie Mcdominic, Lagos
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