Business
2014: Another Year Of Locust Portfolio Investment
The year 2014 will remain
evergreen in the annals of the Nigerian capital market, just like 2008 — the year of the locust or the global financial meltdown.
The key issue in comparison remains that market within the period under review witnessed a major setback, which wiped away the growth posted in 2013.
Investors returned to another locust era, following the tight macroeconomic policies, falling crude oil prices, prolonged security challenges and anxiety on uncertainties in the scheduled 2015 general elections.
Available statistics showed that, in spite of the orchestrated market recovery championed by the capital market regulators, the Nigerian bourse would close for the year as one the worst performing markets across the globe, due largely to sales pressure by panic foreign investors.
The total foreign exchange outflow, as at October 2014, amounted to N101.22 billion as against N92.54 billion posted in September.
Also, a total of N56.56 billion total foreign outflows was recorded in August 2014, due to investment retreat embarked on by foreign investors, occasioned by falling crude oil prices.
The nation’s market scenario, according to many analysts, point to the need for increase in participation by domestic investors in portfolio investment.
Investments in the sector stood at 12.46 per cent as at October, compared to 49.06 per cent recorded as at November 2013.
Records of trading on the Nigerian Stock Exchange (NSE), as at December 5, showed that the equity market dipped by 20 per cent to-date due to massive sell-off, in spite of strong corporate fundamentals of listed companies, against 47.19 per cent achieved in 2013.
Other factors that affected market growth, in spite enhanced regulatory framework embarked upon by regulators, were hike in Cash Reserve Requirement, increase in Monetary Policy Rate and devaluation of the naira by the Central Bank of Nigeria (CBN).
The market was also negatively impacted by the instability in the exchange rate, which led to the exit of more foreign investors, with the nation’s currency losing about 11 per cent of its value against the dollar in the year.
Market data showed that at the close of market on December 5, the All-Share Index of the Exchange dropped by 20 per cent year-to-date, to close trading at 33,228.29 points, against opening year index of 41,329.19 points.
Also, market capitalisation, which opened trading for the year at N13.20 trillion, dipped by N2.23 trillion to close trading on December 5 at N10.970 trillion.
Speaking on the 2014 market performance, the Group Chief Executive Officer, UBA Capital Plc.,Mrs Oluwatoyin Sanni, attributed the development to depressed investor confidence and concerns surrounding the forthcoming general elections.
Sanni said that security challenges in the country led to a ‘wait-and-see’ game by international investors, who wish to ascertain the outcome of the general elections and the sustainability of the nation’s economy.
The UBA Capital boss said the foreign investors’ ‘wait-and-see’ game would likely continue until the second quarter of 2015 when the outcome of the elections would have been ascertained.
Sanni said that persistent oil price drop- a significant contribution to the nation’s Gross Domestic Product (GDP) — added to the lull in the market and the economy in general.
Another major factor in the nation’s negative economic swing that affected the growth of the capital market, she noted, remained the issue of market-based liquidity challenges.
According to her, Nigeria’s retail investors’ apathy at the NSE remains very visible, following poor financial inclusion.
She, however, argued that the persisting challenges were not insurmountable, stressing that the global economic problems necessitated the need for a regulatory operating synergy among the different arms of the financial markets’ regulators to systemic market failure.
To her, the need to avoid duplication of regulatory oversights has made it imperative for the Securities and Exchange Commission (SEC), the CBN, the NSE and the Pension Commission to collaborate towards achieving market development, depth and growth sustainability.
The Federal Government, she said, must move toward the promotion of a National Savings Policy to engender long-term saving culture among Nigerians.
Sanni also insisted that the desired savings culture would only emerge through updating of the Pension Fund Administrators’ (PFAs) investment guidelines, to ensure maximum use of the opportunities in the nation’s capital market.
She also canvassed the need for the listing of the government privatised entities in the market and prompt privatisation of the remaining agencies to strengthen market depth and breadth.
Also, Mr Emeka Madubuike, President, Association of Stockbroking Houses of Nigeria (ASHON), described 2014 as one of the worst years in the history of the nation’s capital market.
Madubuike, the Managing Director of Compass Securities, said that the major lesson in the period was an urgent need for diversifications of the nation’s economy, with less emphasis on crude oil.
The ASHON boss said that the development called for less spending by the Federal Government and the introduction of more economic buffers to reduce the effect of external shocks on the economy.
Madubuike said that government should support the market by ensuring that the bulk of its investment in the transformation agenda would come from the market, instead of concentrating on local and international borrowings.
He said that the infrastructure needs of the country would not be achieved through borrowings, noting that the capital market remained the vehicle for long-term funding of developmental projects.
Madubuike also stressed the need for increased participation of domestic investors in the market, to reduce shocks caused by the exit of foreign investors. He said this could be achieved through strict implementation of the capital market 10-year master plan launched in 2014.
The Managing Director, APT Securities and Funds Ltd., Malam Garba Kurfi, said that the economy would not achieve any meaningful growth and development with the present security challenges.
Kurfi said that the Federal Government should address issues of national security critically, and ensure political stability, since the nation’s economic performance in 2015 would be determined by the outcome of the general elections.
He also called on the government to ensure the investment of the Sovereign Wealth Fund (SWF) in the nation’s bourse, to strengthen market activities.
Kurfi said that certain percentage of the fund should be invested in the market to avoid foreign dominance, noting, however, that, the funds should be invested in blue chip companies.
He said that government should be committed to the development of the stock market, to protect it from being dominated by foreign investors, as they could offload at any given time.
Overall, the contention of most of the stakeholders was that the Government must, and should, demonstrate more than lip-service in the development of the nation’s capital market because of its role in promoting sustainable economic development.
They contended that the nation’s development challenges, especially in infrastructure, major driver and moderate of growth, would be fast tracked if government and sub-national institutions appreciated the dynamics of development seed funds.
They clearly identified the overhaul of the privatisation legal framework that would compel emerging companies from the privatisation programme to be listed at the Exchange.
According to them, the overhaul of the privatisation laws will enable a large segment of Nigerians to benefit from the unbundling of our commonwealth into viable private-driven companies.
To them, the opportunity to own shares of the new companies would engender confidence in the economy and stimulate avenues for Nigerians to sharpen their entrepreneurial skills in transforming a local company into a global concern.
Chinyere Joel-Nwokeoma
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
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.
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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