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2011: Stakeholders Count Losses From Capital Market

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Operators in the Nigerian capital market will for long remember 2011 as a year the Nigerian Stock Exchange recorded persistent share price losses.

Specifically, at the close of 2011, the All-Share Index had depreciated to around 20,722.43 from the opening figure of 24,770.52 at the beginning of the year. The market capitalisation also lost about N1.65 trillion during the year.

According to report some stakeholders attributed the situation to some challenges, like inadequacy of the regulatory framework, which they said eroded investor confidence in the market.

The operators said that these challenges were also due to constant review of the interest rates, nationalisation of three commercial banks and unguarded pronouncements by the regulators, which caused further panic in the market.

Chief Executive Officer of Maxifunds Investment and Securities Limited, Okechukwu Unegbu, said that the market performed below expectations of operators in 2011.

Unegbu said that many operators and investors recorded losses as a result of the poor performance of the market and urged the regulators to urgently address the crisis of confidence and illiquidity rocking the market.

He said that the problem started during the global financial crisis in 2008 and the regulators had failed to address the problem like in other countries.

Chief Executive Officer, Pilot Finance Limited, Seyi Osunkeye, also described the performance of the market in 2011 as dismal.

He said that the market operators were disappointed at the turn of events in 2011 since a 50 per cent market growth had earlier been predicted for the year.

Osunkeye attributed the decline in the market performance to the banking sector reforms, increase in interest rates that caused movement of funds to money market instruments and liquidity crunch.

President of Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie, said that the market recorded the lowest performance in the last eight years.

Okezie said that the reforms of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) completely eroded investor confidence in the market.

He said that the market performed badly in spite of strong fundamentals of some quoted companies, adding that many equities were selling below their real value.

He pointed out that some investors had developed apathy after losing billions of naira in the three nationalised banks of Afribank, Spring Bank and Bank PHB.

President, Nigeria Shareholders Solidarity Association (NSSA), Timothy Adesiyan, said that many shareholders learnt their lessons in 2011.

Adesiyan said that he was bitter about the erosion of value of investments in the market, adding that investors would no longer rush to invest in the market.

He said also that current developments would not encourage old and potential investors to invest in the market.

The operators explained that the delisting by the NSE council of some companies created wrong impression among investors about the true state of health of the capital market.

The number of listed companies dropped from 217 in December 2010 to 201 in 2011.

The challenges gave credence to reasons offered by the Nigerian Bottling Company, United Nigerian Textile Mills and Nampak Nigeria to seek voluntary exit from the market.

In the bid to restore investor confidence in the market, the interim management of the NSE was disbanded while a new helmsman, Oscar Onyema, was appointed on April 4, 2011.

The new chief executive officer took some initiatives to restore investor confidence and enhance liquidity in the market.

Some of the initiatives included market segmentation, introduction of Exchange Traded Funds (ETFs) and introduction of market makers.

Others were the introduction of new securities lending, revised listing requirements to attract new companies, revised share buy-back policy and investors clinics.

While introducing these initiatives, the NSE said that they were to serve as the pillars for long- term growth of the market.

Some of the long- term growth objectives of the market, as highlighted by Onyema, included achievement of one trillion dollar market capitalisation by 2016 and introduction of new products like options and futures.

Despite of the current challenges, the market still remains a viable tool for economic development.

However, Federal Government has been urged to hasten the forbearance stimulus being packaged for stockbrokers as a way of reviving the ailing market.

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Maritime

Shippers’ Council Registers 160 Port Operators

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The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”,  Akutah said.
He said  that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said  port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu

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Business

Chivita, Hollandia Reward Outstanding Trade Partners At Annual Conference

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Chivita| Hollandia (CHI Limited) leading fruit juice and value-added dairy manufacturer in Nigeria has rewarded its long standing distributors at the recently held 2024 Distributor Conference. The event with the theme, “Break Boundaries Exceed Expectations” served as a platform to recognise and reward the exceptional contribution of the distributors and wholesalers who play a critical role in Chivita|Hollandia (CHI Limited) success and business goals for the year.
The Distributor Conference was held in two sessions. While the morning session featured keynote addresses, industry insights and brand immersion experience, the evening session was a cultural display of elegance and funfair that culminated in the award presentation and recognition of the contribution the trade partners made to the company in the 2023 year under review.
A key highlight of the event was the award ceremony which acknowledged outstanding trade partners in various regions across the country. The awards recognized commitment, dedication, and outstanding performance in areas of sales growth, brand promotion, and market expansion.
Eelco Weber, Managing Director, Chivita|Hollandia (CHI Limited), stated that the company’s success story is incomplete without the strong partnerships it has built with trade partners. “Today, we celebrate not only the achievements, but the collaborative spirit that has made our growth possible” he said.
Bola Arotiowa, Chief Commercial Officer, Chivita|Hollandia (CHI Limited), in his statement revealed that, the event which was first of its kind will continue to be an annual meeting to enable the company work more closely with its distributors, share insights and action points, help the trade partners familiarize themselves with the company’s goals and objectives for each year, and serve as a driver for mutual success.
“Our distributors are the backbone of Chivita|Hollandia (CHI Limited). Their relentless efforts in distributing our products, promoting our brands, and expanding our reach across the nation is truly commendable. As the bridge between us and our valued consumers, it is very important to reward their hard work and dedication for being an essential part of the Chivita|Hollandia (CHI Limited) family. Together, we will continue to deliver great products to our conusmers which in turn will deliver value to them”, Mr. Arotiowa added.
Speaking at the conference, HajiyaBilikisuSaida, Chief Executive Officer of Smabirm Nigeria Limited, who won the Outstanding Distributor of the Year in North 1 region, and got a reward of two million Naira worth of Chivita|Hollandia (CHI Limited) products expressed delight at the company’s recognition, and stated that the awards served as a way to inspire distributors to do more and put in more effort, which in turn would help both the distributors and the company to grow.
Other outstanding performance distributors of the year rewarded with a two million Naira worth of Chivita|Hollandia (CHI Limited) stock include, Sunny Chuks Limited for East 1 region, MRS FA & Sons Limited for East 2 region, Hussakas Ventures for North 2 region, Rookee 1388 Ventures for Lagos 1 region, Pik N Pil Ventures for Lagos 2 region, FaithJoe Event Management Limited for West 1 region, and Progress Family Nigeria Enterprise for West 2 region.
The annual Distributors Conference aims to strengthen the bond between Chivita|Hollandia (CHI Limited) and its trade partners. This collaborative approach fosters mutual growth and ensures the continued success of the brands in the Nigerian market.
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Business

AXA Mansard Backs Female-Owned MSMEs With N1.4m Grant

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A global leader in insurance and asset management, AXA Mansard, has supported three female-owned MSMEs with business grants totaling 1.4 million to boost their operations.
This, the company said, is part of its commitment to women and the Medium, Small, and Medium-scale Enterprise (MSME) sector in the country.
The three businesses were successful at the International Women’s Day Pitch Competition, organised in partnership with SME 100 Africa in Lagos.
According to the Head of Marketing, AXA Mansard, Olusesan Ogunyooye, the competition, which is aimed at supporting female entrepreneurs in Nigeria, “is another way AXA is demonstrating its commitment to the causes of women and stimulating the MSME sector in Nigeria”.
The business pitch competition received numerous entries from women across different sectors, but after a rigorous selection process, shortlisted participants were selected to participate in the competition.
Ogunyooye said “the programme provided a unique opportunity for women from various works and socio-economic classes to showcase their innovative ideas and solutions in sectors such as food, tech, fashion, and fragrance, creating an atmosphere filled with excitement, enthusiasm, and a strong sense of community”.
He stressed the importance of investing in women, saying it is not just the right thing to do, but also aligns with AXA’s purpose of acting for human progress.
He explained that AXA believes the future of women should not be at risk, hence investing in their economic empowerment is a crucial part

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