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

FG Begins South-West Tour To Promote New Cooperative Bank

Published

3 days ago

May 13, 2026

The Tide

The Federal Government has launched the South-West zonal engagement and ministerial advocacy tour on the Cooperative Bank of Nigeria share capital mobilisation, sensitisation and cooperative sector digitalisation.

Reports say the initiative was launched through the Federal Ministry of Agriculture and Food Security.

According to reports, the advocacy tour, organised by the ministry’s Federal Department of Cooperatives, began on Monday in Lagos.

Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Dr Aliyu Abdullahi, said the initiative was part of President Bola Ahmed Tinubu’s Renewed Hope Agenda.

Abdullahi described the exercise as a strategic effort to reposition the cooperative sector as a key driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity.

“Today represents a defining moment in our collective determination to reposition the cooperative sector as a major driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity,” he said.

The minister noted the modern cooperative movement in Nigeria originated in the South-West following the 1934 Strickland Report, which led to the enactment of the Cooperative Societies Ordinance of 1935.

According to him, the decision to commence the sensitisation and share capital mobilisation tour in the region is symbolic, as it marks a return to the roots of cooperative development in the country.

Abdullahi said the advocacy tour was a direct outcome of resolutions reached at the 8th Regular Meeting of the National Council on Cooperative Affairs held in Abuja in March 2026.

He said the council approved the Renewed Hope Cooperative Reform and Revamp Programme, a comprehensive framework designed to strengthen the cooperative sector and align it with the administration’s goal of building a one-trillion-dollar economy.

“The reform programme focuses on seven strategic pillars, including governance reforms, cooperative financing and the establishment of the Cooperative Bank of Nigeria, digitalisation, capacity building, value chain development, inclusion of youths, women and persons with disabilities, and strategic partnerships,” he said.

He said the establishment of the Cooperative Bank of Nigeria and the digitalisation of the cooperative sector were the two major transformational initiatives under the programme.

“The Cooperative Bank of Nigeria is aimed at rebuilding a strong cooperative financial system capable of supporting cooperators, farmers, artisans, traders, SMEs, youths, women and persons with disabilities with accessible and affordable financial services,” he said.

Abdullahi emphasised that the proposed bank would be government-enabled but not government-funded.

“Government is not establishing the bank as an owner, nor will it rely on Treasury Single Account funds.

“The role of government through the FMAFS is to provide policy support, stakeholder coordination, regulatory facilitation and an enabling environment under the Renewed Hope Cooperative Reform and Revamp Programme,” he said.

Also speaking, the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, reaffirmed the state government’s commitment to cooperative sector transformation.

She described cooperatives as critical tools for promoting inclusive growth, grassroots productivity, food security, financial inclusion and community wealth creation.

Ambrose-Medebem said Lagos State would continue to support reforms and collaborate with stakeholders to ensure the successful implementation of the Renewed Hope Cooperative Reform and Revamp Programme (2025–2030).

“Together, let us build a cooperative ecosystem that is modern, transparent, digitally enabled, financially inclusive and globally competitive.

“Let us build cooperatives that not only mobilise savings, but also mobilise prosperity,” she said.

Business

Customs Impound N2.35bn Cocaine, 15 Trailers of Rice

Published

3 days ago

May 13, 2026

The Tide

The Nigeria Customs Service (NCS), Federal Operations Unit (FOU) Zone ‘A’, Ikeja, has impound Cocaine Substance valued at ?2.35 billion alongside 15 trailer-loads of foreign rice and a wide range of contraband across the South-West.

This was disclosed to Newsmen during a press briefing in Lagos by Controller of the Unit, Comptroller Gambo Aliyu,

Aliyu revealed that the seizures were made over an eight-week period, underscoring intensified enforcement efforts.

According to him, operatives foiled 473 smuggling attempts within the period, leading to the confiscation of 8,794 bags of 50kg foreign rice, 22 used vehicles, 328 bales of used clothing, and 31,705 litres of Premium Motor Spirit (PMS).

He said other seized items include a Mercedes-Benz vehicle and various food products such as poultry, vegetable oil, spaghetti, and sugar.

Aliyu clarified that the rice displayed at the briefing represented cumulative interceptions made at different locations and times across the zone.

“All the rice you see here are accumulative of seizures carried out at different places, at different times, and through different interdictions,”

Beyond the economic implications, the Comptroller emphasized the social cost of drug trafficking, warning that narcotics continue to destroy families and fuel criminal activities.

“It may surprise you to know that many homes are broken due to drugs.

” Our mandate is to cut off the supply chain, and that is exactly what we are doing,”.

Similarly Customs operatives at the Gbaji outpost intercepted a 71 year-old suspect along the Lagos-Abidjan corridor with 6.35kg of cocaine concealed in a Toyota Highlander.

The drugs, comprising both powdered and crystalline forms, were valued at ?2.35 billion.

Under a special enforcement drive, codenamed “Operation Hawk,” the unit also seized 3,340 parcels of synthetic cannabis, popularly known as “Ghanaian loud,” weighing 1,540kg.

The substances, along with three suspects, have been handed over to the National Drug Law Enforcement Agency (NDLEA) for further investigation and prosecution.

In a related operation, officers intercepted four cylinders of mercury hidden in a vehicle along the same corridor. Aliyu described the substance as hazardous and subject to international regulation.

Overall, the Duty Paid Value (DPV) of the seizures stands at approximately ?5.5 billion, reflecting the scale of enforcement activities.

Additionally, the unit recovered ?97.7 million through Demand Notices issued on under-declared consignments.

Aliyu reaffirmed the Service’s commitment to deploying modern technology—including geospatial intelligence, drone surveillance, and real-time tracking—to strengthen border security and clamp down on smuggling networks.

CHINEDU WOSU

Business

Dangote, Nicolai Tangen To Partner In strategic sectors

Published

3 days ago

May 13, 2026

The Tide

Chief Executive Officer of Norges Bank Investment Management, Nicolai Tangen ( manager of the world’s largest sovereign wealth fund) has expressed interest in partnering with Dangote Group to expand investments across Africa, particularly in strategic sectors such as power, energy, renewable energy, agriculture, fertiliser and cement.

This was made known during a meeting of Chief Executive of Dangote Group, Aliko Dangote with Nicolai Tangen, the manager of Norwegian investment institution (with assets estimated at about $1.9 trillion) .

Also present at the meeting were Svein Tore Holsether, Chief Executive Officer of Yara International, and Terje Pilskog, Chief Executive Officer of Scatec, a global renewable energy company.

The engagement reflects growing international investor confidence in Africa’s industrial and infrastructure potential, as well as the increasing role of indigenous conglomerates such as Dangote Group in driving large-scale economic transformation across the continent.

Industry observers say the proposed collaboration could create significant opportunities for investments in critical sectors linked to energy transition, food security, industrialisation and infrastructure development.

The Norwegian sovereign wealth fund, regarded as one of the world’s leading institutional investors, has in recent years increased its focus on emerging markets, with Africa seen as a major frontier for long-term investment and value creation.

Analysts believe a partnership between Norges Bank Investment Management and Dangote Group could unlock substantial capital flows into infrastructure and industrial projects across Africa, helping to accelerate economic growth and regional integration.

Nkpemenyie Mcdominic, Lagos