Business

2011: Stakeholders Count Losses From Capital Market

Published

14 years ago

January 11, 2012

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.

Business

Agency Gives Insight Into Its Inspection, Monitoring Operations

Published

3 days ago

January 12, 2026

The Tide

The Director, South South Zone National Agency for Food Drug Administration and Control (NAFDAC), Pharmacist Chujwuma P.Oligbu has said its thorough implementation of its core mandate of monitoring has no link with witch-hunting or fault finding as perceived at some quarters.

Oligbu, made this known when he spoke as as guest at the maiden Rivers state Supermarkets stakeholders’ Seminar/Workshop in Port Harcourt recently.

Rather, he said they were mere opportunities for education, correction and continuous improvement.

The Agency’s South South Boss, noted that Supermarket operators who maintain transparent records, cooperate during inspections, and promptly address identified gaps demonstrate professionalism and commitment to public health standard.

He listed the deserving essence of supermarket operation to include the key aspects of supermarket operation that deserves emphasis is product sourcing.

“Supermarkets must ensure that all regulated products stocked on their shelves are duly registered with NAFDAC and sourced from legitimate manufacturers or distributors”, he said .

According to him, the presence of unregistered, expired, counterfeit, or improper labelled products undermines consumer confidence and poses serious health risks.

He pointed out that such has the likelihood of exposeing supermarket operators to legal sanctions that could damage their reputation and financial stability.

The NAFDAC Operator, further enlightened the participants that mere registration of a particular product with the Federal agency do not guarantee absolute consumption safety.

“Temperature control, cleanliness, pest control, stock rotation, and proper shelving are not optional practice; they are essential components of compliance”, he said.

The South South zonal director also told the operators of supermarket that their employees rotine training on the basis of the product they display for sale is of utmost importance.

In her presentation a Breast Milk Nutrition Expert , Professor Alice Nte of University of Port Harcourt Teaching Hospital (UPTH), was against the body’s prime attention to breast milk substitute or baby milk in supermarkets as well as its advertisement or promotion.

Nye jerked up the importance of mothers breast milk to the newborn baby and added that it help in fighting against childhood diseases, infections and combating cancer in breastfeeding mothers.

Meanwhile, NAFDAC Deputy Director, South – South Zone , Mrs. Riter Chujwuma educated the participants on the guidelines for global listing, and the need to adhere strictly to rules guiding global listing to avoid confiscation of their imported products.

By: King Onunwor

Business

BVN Enrolments Rise 6% To 67.8m In 2025 — NIBSS

Published

4 days ago

January 12, 2026

The Tide

The Nigeria Inter-Bank Settlement System (NIBSS) has said that Bank Verification Number (BVN) enrolments rose by 6.8 per cent year-on-year to 67.8 million as at December 2025, up from 63.5 million recorded in the corresponding period of 2024.

In a statement published on its website, NIBSS attributed the growth to stronger policy enforcement by the Central Bank of Nigeria (CBN) and the expansion of diaspora enrolment initiatives.

According to the data, more than 4.3 million new BVNs were issued within the one-year period, underscoring the growing adoption of biometric identification as a prerequisite for accessing financial services in Nigeria.

NIBSS noted that the expansion reinforces the BVN system’s central role in Nigeria’s financial inclusion drive and digital identity framework.

Analysts linked the growth largely to regulatory measures by the CBN, particularly the directive to restrict or freeze bank accounts without both a BVN and National Identification Number (NIN), which took effect from April 2024.

The policy compelled many customers to regularise their biometric records to retain access to banking services.

Another major driver, the statement said, was the rollout of the Non-Resident Bank Verification Number (NRBVN) initiative, which allows Nigerians in the diaspora to obtain a BVN remotely without physical presence in the country.

The programme has been widely regarded as a milestone in integrating the diaspora into Nigeria’s formal financial system.

A five-year analysis by NIBSS showed consistent growth in BVN enrolments, rising from 51.9 million in 2021 to 56.0 million in 2022, 60.1 million in 2023, 63.5 million in 2024 and 67.8 million by December 2025. The steady increase reflects stronger compliance with biometric identity requirements and improved coverage of the national banking identity system.

However, NIBSS noted that BVN enrolments still lag the total number of active bank accounts, which exceeded 320 million as of March 2025.

The gap, it explained, is largely due to multiple bank accounts linked to single BVNs, as well as customers yet to complete enrolment, despite the progress recorded.

Business

AFAN Unveils Plans To Boost Food Production In 2026

Published

6 days ago

January 9, 2026

The Tide

The leadership of the All Farmers Association of Nigeria (AFAN) has set the tone for the new year with a renewed focus on food security, unity and long-term growth of the agricultural sector.

The association announced that its General Assembly of Farmers Congress will take place from January 15 to 17, 2026 at the Abuja Chamber of Commerce and Industries, along Lugbe Airport Road, in the Federal Capital Territory.

The gathering is expected to bring together farmers, policymakers, investors and development partners to shape a fresh direction for Nigerian agriculture.

In a New Year address to members and stakeholders, AFAN president, Dr Farouk Rabiu Mudi, said the congress would provide a strategic forum for reviewing past challenges and outlining practical solutions for the future.

He explained that the event would serve as a rallying point for innovation, collaboration and economic renewal within the sector.

Mudi commended farmers across the country for their determination and hard work, despite years of insecurity, climate-related pressures and economic uncertainty.

According to him, their resilience has kept food production alive and positioned agriculture as a stabilising force in the national economy.

He noted that AFAN intends to build on this strength by resetting agribusiness operations to improve productivity and sustainability.

The AFAN leader appealed to government institutions, private investors and development organisations to deepen their engagement with the association.

He stressed the need for collective action to confront persistent issues such as insecurity in farming communities, climate impacts and market instability.

He also urged members to put aside internal disputes and personal interests, encouraging cooperation and shared responsibility in pursuit of national development.

Mudi outlined key priorities that include increasing food output, expanding support for farmers at the grassroots and strengthening local manufacturing through partnerships with both domestic and international investors adding that reducing dependence on imports remains critical to protecting the economy and creating jobs.

He stated that the upcoming congress will feature the launch of AFAN’s twenty-five-year agricultural mechanisation roadmap, alongside the announcement of new partnerships designed to accelerate growth across the value chain.

Participants, he said wi also have opportunities for networking and knowledge exchange aimed at transforming agriculture into a more competitive and technology-driven sector.

As part of its modernisation drive, AFAN is further encouraging members nationwide to enrol for the newly introduced Digital ID Card.

Mudi said the initiative will improve transparency, ensure proper farmer identification and make it easier to access support programmes and services.

Reaffirming the association’s long-term goal, he said the vision of national food sufficiency by 2030 remains achievable if unity and collaboration are sustained.

He expressed optimism that with collective effort, Nigeria’s agricultural sector can overcome its challenges and deliver a more secure and prosperous future.

Lady Usendi