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

Boat Mishap Kills Pastor, Wife And Church Members In Brass Water

Published

3 days ago

May 18, 2026

The Tide

A boat accident in Bayelsa state has killed a serving Pastor, Wife and other church members along Brass waterways

The sad incident happened at Odioama in Brass local government area of Bayelsa State when the Pastor, wife and members of his church were in a programme.

?Tide confirmed that the lifeless body of the Pastor’s wife has been found and deposited in a mortuary while the remains of her husband ,the Pastor is yet to be recovered

as search party are still ongoing.

Although the real cause of the boat Mishap is not yet known as at the time of this report, our Correspondent gathered that the identities of the Pastor, wife and church members were not disclosed to the public.

The mishap, Tide gathered occurred on Friday morning when the church members were on a boat transit

The Bayelsa State government and the state police command are yet to issue official statement’s on the sad accident

By: CHINEDU WOSU

Business

Rivers Workers Seek Scrapping Of Contributory Pension Scheme

Published

3 days ago

May 18, 2026

The Tide

The Rivers State Council of Nigeria Civil Service Union has called on the State Government to urgently scrap the contributory pension scheme, describing it as unfavourable to long-serving civil servants in the state.

Chairman of the union, Chukwuka Osuma, said this in an interview with newsmen in Port Harcourt, recently.

Osuma said the current pension structure has continued to worsen post-retirement hardship for workers.

He noted that the contributory pension scheme had failed to provide adequate retirement security for workers who had spent many years in service, especially those approaching retirement age.

According to him, civil servants who had served for more than 20 years were among the worst affected under the scheme, insisting that many retirees could no longer cope with prevailing economic realities.

He also informed that the Union has made moves to showcase their concerns, pleading with Governor Siminalayi Fubara to abolish the pension policy and introduce a more favourable arrangement for affected workers.

“The union was not opposed to pension reforms, the contributory scheme should only apply to newly employed workers or those with fewer years in service”, he said.

Osuma explained that workers who had already spent decades in the civil service ought to remain under a more secure pension structure capable of guaranteeing stability after retirement.

The labour leader further noted that inflation and the rising cost of living had continued to erode the value of retirement savings, thereby increasing the suffering of pensioners across the country.

He also appealed to the state government to consider extending the years of service in the civil service from 35 to 40 years and the retirement age from 60 to 65 years.

Osuma argued that such adjustment had become necessary in view of present-day economic realities and changing conditions in the workplace.

The unionist also reviewed that similar policies had already been adopted in some sectors and jurisdictions, expressing optimism that the State could also implement the reforms for the benefit of workers.

He however, commended Governor Fubara for approving an N85,000 minimum wage for workers in the state, noting that the amount was above the national benchmark of N70,000.

Osuma also acknowledged the government’s efforts in the area of workers’ promotions and bonuses, but insisted that pension reforms and extension of years of service remained critical to the long-term welfare and stability of civil servants in Rivers State.

By: King Onunwor

Business

FG Begins South-West Tour To Promote New Cooperative Bank

Published

1 week 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.