Business
CGF Post-Tax Profits Slump By 239.76%
The bearish Nigerian Stock market has once again claimed another victim, as Coral Growth Funds’ (CGF) post-tax profits slumped 239.76 per cent from N1.16 billion in 2007 to a loss of N1.16 billion in 2008.
According to the fund’s financials report for the year-end period December 2008, the CGF’s net income before tax also slide to N1.61 billion in 2007. This represents a decrease of 238.28 per cent.
In his report, Kenneth Spuliag, managing director and Chief executive officer of Asset Management Limited (FAML), explains that the performance of the equities market during the year had a negative impact on the performance of the CGF.
Consequently, he said the offer price of the fund recorded a decline of 29.38 per cent to close the year at N1,477.19.
“In spite of decline in the fund’s performance, the fund output performance, the Nigeria Stock Exchange (NSE) All Share Index (ASI), lost 45.77 per cent during the same period.”
CGF is an actively managed open-ended unit trust scheme that invest a maximum of 65 per cent of its assets in equity securities quoted on the NSE.
The Fund Manager further said, “Given the event in the stock market in the second quarter of the year, we had anticipated that the stock market will not record a positive performance in 2008.
“As a result, the Fund Manager embarked on a significant reduction in the funds exposed to the capital market. As at December 31, 2008, 55 per cent funds assets were invested in fixed income securities, 22 per cent was invested in banking sector of the stock market, while eight per cents was invested in other sectors of the market.”
However, in spite of the above result, the Fund declared and paid 0.723 dividend per unit holder.
Similarly, Coral Ethical Funds (CEF) recorded loss in its financial year ended December 31 2008, by losing 281.22 per cent net income after tax from N14.3 million in 2007 to N25.8 million in 2008.
Its net income before tax also went down to N25.7 million in 2008 from the N14.4 million recorded the previous year, representing 279.12 per cent decline.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.