Equities All-Share Index Drops By 0.08%

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August 31, 2023

Nigeria’s domestic equities market witnessed a 0.08 percent drop on its key index in midweek trades reversing a bull run that has persisted in the market.

Investors at the Nigerian Exchange Group Limited, NGX recorded a 50.81 absolute points decline, representing a 0.80 percent drop to close at 66,439.53 points lower than Tuesday’s 66,490.34 points.

Similarly, the market capitalisation of listed equities depreciated by N27 billion to close at N36.439 trillion compared the N36.390 trillion of the previous day.

Equities Market Extends Gains By N157bn

The day’s market sentiment when measured by the market breadth in percentage term however remained positve with 26.49%, 45.83% and 11.08% in deals, volume and value to close at 10,033, 637.19 million units and N7.79 billion respectively.

The midweek transactions ended with 27 gainers and 25 decliners.

CAPHOTEL and CHIPLC led the gainers table with a 10% profit on their respective share prices to close at N2.75k and N1.10k.

UPL followed with a 9.77% gain on its share price to close at N2.36k; then Champion Breweries recorded a 9.72% profit on its share price to close at N3.50k.

On the flipside, TRANSCORP led the decliners list with a 9.99% loss on its share price to close at N6.31k. CWG followed with a 9.88% drop on its share to close at N3.65k while IKEJA Hotel shares dropped by 9.84%, to close at N2.84k.

NGX Group to Pay Shareholders N495m Interim Dividend

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Rhoda Onuzulike

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August 31, 2023

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Nigerian Exchange Group Plc plans to pay its shareholders an interim dividend of 25 kobo per ordinary share of 50 kobo each, totaling N495.53m on Thursday.

This followed an emergency board meeting convened by the Group in July, when it disclosed its decision to electronically distribute its inaugural dividend following the demutualisation in 2021 to qualified shareholders.

NGX Decline by 0.46% Amidst Profit Taking in 24 stocks

At the company’s annual general meeting in July, shareholders demanded that a dividend should be declared. In a statement issued on Wednesday, the group said the decision to declare the dividend was as a direct response to the input and suggestions received from shareholders at the AGM.

Commenting on the dividend announcement, the Chairman, NGX Group, Umaru Kwairanga, said, “The announcement of the dividend will send a signal to our shareholders the company has a listening and responsive board following the request at the last annual general meeting. We hope to continue enjoying the support of our valued shareholders as NGX Group seeks to execute on its strategy to create sustainable growth in the medium to long term.”

Nigeria’s Stock Investors Book N1.4tn Gain in August

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Rhoda Onuzulike

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August 31, 2023

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Investors in Nigeria’s stock market booked about N1.411trillion gain in the month of August, a remarkable feat at the Lagos bourse which came despite trading sessions of profit-taking and bargain hunting.

The market increased by 3.44 percent in the review trading month ended Thursday, August 31.

“We have started to see profit taking in recent gainers, while the banking sector’s rebound was short-lived, as investors still await H1’23 results from GTCO, ZenithBank, Access Corporation and UBA,” said Lagos-based analysts at Vetiva Research who had also expected continued mixed trading sessions.

The market which had started August with All-Share Index (ASI) and equities market capitalisation at 64,337.52 points and N35.011trillion respectively closed the review month at 66,548.99 points and N36.422trillion.

In eight months to August 31, the market’s positive return stood at 29.85 percent.

Stock Market Sees First Gain This Week

Looking at their recent global outlook for the second half (H2) of the year, Lagos-based analysts at United Capital who noted that the Nigerian stock exchange was met with a fantastic first half in 2023 also said they anticipate a broadly favourable equities market in H2 of 2023.

They supported their expectations on two key factors: the “unification of the exchange rate”, and “advocacy for a lower interest rate environment”.

These factors they said will stand as a significant upside for the earnings performance of listed Nigerian corporates, “which will bolster investors’ confidence toward listed corporates, particularly in earning seasons (H1-2023, and Q3-2023 earnings season)”.

Cameroon And Rwanda Clean Up Ranks In Wake Of Gabon Coup

By

faith Jegede

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August 31, 2023

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After the shakeup in Gabon, certain African leaders have started making changes to their military roasters. 90-year-old Cameroonian president Paul Biya, and 65 years old Rwandan president Paul Kagame, reportedly sack military chiefs in their respective countries.

The duo, are firing their military chiefs in what appears to be a move to forestall the recent power seizures witnessed in Niger & Gabon over the last month, according to their press releases.

In Kigali, Kagame sacked nearly 200 military chiefs, including two four-star generals, James Kabarebe & Fred Ibingira & two three-star generals, Charles Kayonga & Frank Mushyo Kamanzi, Rwandan outlet the new times reported citing a government statement.

He also retired 83 senior officers, 06 junior officers & 86 senior non-commissioned officers, 678 end-of-contract officers, while 160 were discharged on medical grounds discharges.

In Cameroon, Biya is also not leaving his grip on the country to chance as he immediately shuffled the officers in the army, air force & marine.

Minister Pledges Increased Investments To Unlock Gas Potential

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Rhoda Onuzulike

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August 31, 2023

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Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has pledged to work towards attracting investments into the gas sector to unlock its full potential for national development.

The minister stated this during the inaugural meeting with ministry staff alongside the Minister of State, Petroleum Resources (Oil), Heineken Lokpobiri, in Abuja.

He said his vision is to grow gas supplies to thermal plants to improve electricity generation to consumers in the country.

He pointed out that of the 20 top gas-producing nations in the world, utilisation was least in Nigeria, hence the need for increased investments in the industry.

He also assured of greater investments in compressed natural gas (CNG) and liquefied petroleum gas (LPG) infrastructure to deepen penetration among Nigerians.

He said the gas sector held great prospects for the resuscitation of the economy and tasked workers with the need for commitment and dedication to meeting the expectations of Nigerians from the gas industry.

“Today we talk about insecurity, unemployment and even food security, but I believe that this ministry is critical to the growth of our economy. We need to grow gas supplies to our power plants so that there is improved electricity generation and supply to assist in job creation for our youths,” he said.

Ekpo assured existing and prospective investors of a conducive environment for business in the gas industry.

Permanent Secretary in the ministry, Gabriel Aduda, implored the minister to intervene in the disparity in remuneration between staff of the ministry and industry workers.

He said the ministry was endowed with quality and experienced staff to match or exceed that of operators in the industry asking that the minister assist workers enjoy petroleum service allowances.

FCT Internally Generated Revenue To Fund Projects- Minister

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Rhoda Onuzulike

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August 31, 2023

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The Minister of the Nigerian Federal Capital Territory, FCT, Nyesom Wike has announced that going forward, the Internally Generated Revenue (IGR) of Abuja, the nation’s capital will be linked to specific project executions.

The Minister, while addressing pressing matters that demand decisive action to rectify dire circumstances in Abuja, asserted that this approach would facilitate the timely execution of specific initiatives without undue dependence solely on budgetary provisions.

He consequently recommended that any individuals who are avoiding the payment of ground rents and taxes owed to FCTA should promptly settle their debts. He also emphasized that regardless of their social status, the Administration will not hesitate to take action against defaulters to collect what is rightfully due for FCTA.

Wike Gives Eight-Month Ultimatum for Abuja Light Rail Completion

The FCT Minister expresses concern over the fact that it is predominantly members of the elite who are responsible for obstructing the efforts of the FCT Administration to reinstate the Abuja master plan.

The Minister utilized the platform to allude to the 825m naira restitution for native landowners whose lands were earmarked for the development of Abuja airport’s second runway. Consequently, he instructed the Permanent Secretary to disburse said funds before the week’s end to expedite and streamline the construction process of said runway.

Wike further revealed that his administration is burdened with debt (garnishee order) in tune to the sum of eight hundred million dollars against the administration in court, hence, the need to beam searchlight on IGR to fund projects, given the dwindling National budgetary allocation.

Speaking on the impact of the order on the economy, the Minister said the debt is enough to fund the budget of the FCTA for 10 years.

“How do you survive it? Who are those responsible for this? That there are no projects in the territory, everything has been abandoned. There is a garnishee order of $800m. Do you know what we are talking about? How do we survive it? Go and see what happened. Garnishee orders here and there.

“The place is just corrupt… How do we survive it? Then you now said that we have come and that we should do miracles, which miracle? Where will I get the money to go and pay $800m?” Wike lamented.

Brain Drain: African Countries Pay Nigerian Doctors $4000 – CMDs tell Reps

By

Cleopatra Okohai

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August 31, 2023

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The Chairman of the Committee of Chief Medical Directors of Federal Tertiary Hospitals, Professor Emem Bassey, on Wednesday, said other African countries are now poaching Nigerian medical doctors and other health professionals.

He also said that countries like Sierra Leone and Gambia were offering them up to $3000 to $4000, which was about three to four times the amount they are paid in Nigeria.

Bassey, who is the CMD of the University of Uyo Teaching Hospital, said the health sector is currently undergoing a major crisis in terms of manpower as health professionals are leaving in droves.

He also said doctors often went on strike because the government often failed to meet unrealizable promises.

Bassey said this when he appeared before the House of Representatives Ad hoc Committee to probe employment racketeering in Federal Government agencies, alongside the heads of other health institutions in the country.

He said, “Some African countries are also beginning to poach from Nigeria. The West Coast is looking for our specialists. So many people are now going to places like Sierra Leone and Gambia and the wages they earn is $3000 to $ 4000. It is about three to four times what they earn back home. So we are beginning to see that people are leaving for other African countries too.

“The health sector is currently undergoing a major crisis in terms of manpower. What we are seeing is that medical specialists, not just doctors, even nurses, in fact, even more nurses are leaving. Doctors, nurses, laboratory scientists, physiotherapists, radiographers, and all manner of health professionals are leaving the country in droves.

“That is part of the problem we are facing. Replacement of these health workers is a major problem. This is because even though we are usually granted approvals to recruit, getting the waivers is a tortuous process.”

He said due to the urgency of the need to replace various health professionals who leave, it is difficult to comply with federal character in recruitment.

The CMD also noted that previous governments had reached ridiculous agreements because of their urgent need to end strike actions.

Bassey added, “A strike should be the very last option, but one of the things we have been seeing is threats and threats and threats. I would say that governments in the past sitting had negotiated resolutions that are not feasible, just because they want to end a strike.

“ Now, they have agreements that they cannot implement. And then after a certain period, six months or one year and you have not implemented it, people now go on strike. So we need to sit down together and negotiate.”

The Chairman of the Ad hoc Committee, Hon. Yusuf Gagdi, urged the doctors to be patriotic by staying back to contribute to the development of the country, even if they have better options abroad.

He said the committee would work towards addressing the need to balance compliance to the spirit of federal character by filling up urgent vacancies in the health sector.

Gagdi said, “I admit there is a lack of advanced medical facilities in our health sector. This is a fact and we must as governments pay attention to that. Where we are confused is the aspect of lack of patriotism.

“You ( Medical doctors) are produced by Nigerian institutions. We admit to the brain drain and are trying to find solutions. We are happy to see you here. A lot of you have connections maybe based on the value of your intellect to be in the developed countries and provide services to them. But most of you have a passion for adding value to your own motherland and fatherland.

“What are you telling your co-professionals about patriotism, about giving back to the society that gave you the knowledge? We challenge you to be true to your own profession and the issue of morality. You cannot disown your father no matter how poor he is for taking you this far to go and adopt somebody’s father. Nigeria is our country.

“Nigeria produced us as medical doctors, no matter the rot within our public sector in terms of remuneration. Let us work together and see how we can find solutions to that. But let us remain in Nigeria to serve our own country.”

Continuing, Gadgi said, “We would review your submissions entirely. For these institutions that have pending recruitment cases, we would interface with them uniquely. For those of you who don’t have one, we will look into your issue.

“You have a very good defence for now by having a balanced sheet in terms of federal character. Nigerians have listened to you. So whatever this committee at the end of the day recommends to the government, it is going to be done and it is for our own good entirely.”`

House Speaker Condemns Tax Incentive Abuse

By

Rhoda Onuzulike

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August 31, 2023

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The Speaker of Nigeria’s House of Representatives, Tajudeen Abbas has decried the abuse of tax incentives and waivers in Nigeria.

He described it as an act of economic sabotage which must not be allowed to continue.

The Speaker gave the condemnation while inaugurating the House Ad-hoc Committee To Investigate Allegations of Abuse Of Tax Incentives, Tax Breaks, and Tax Waivers By Public Institutions and Companies Benefitting From Tax Incentives.

Represented by the House Leader, Professional. Julius Ihonvbare, the Speaker said that the investigation by the House was to put an end to such acts of economic sabotage and ensure transparency, accountability and fairness in our tax system

He said tax incentives are an essential tool used by governments to promote economic growth, attract investments, and stimulate job creation.

The Speaker also said that it was crucial to ensure that these incentives offered by the government are utilized appropriately and not being misused or abused.

“The allegations that have been brought to the attention of the House suggest that some public institutions and companies may be taking advantage of these incentives for personal gain or to evade their tax obligations. Hence the establishment of this committee.

“In carrying out this investigation, the Committee is required to thoroughly investigate these allegations and provide recommendations for necessary sanctions and reforms.

“Endeavor to find out whether the beneficiaries of these tax incentives have lived up to the conditions attached to them and if they have fulfilled their obligations to the Nigerian people as required.

“Your mandate will be to examine the extent of the alleged abuse by public institutions and organisations, review relevant legislation, policies, and regulations governing these incentives to identify any loopholes or weaknesses that may have contributed to the alleged abuse.

“The purpose of this investigation is to end all forms of economic sabotage and ensure transparency, accountability, and fairness in our tax system.

“I, therefore, call on all relevant stakeholders, including government agencies, public institutions, and companies benefitting from tax incentives, to cooperate fully with the committee’s investigation for the House to have a full understanding of the tax system with a view of taking appropriate legislative actions,” the Speaker said.

The chairman of the Committee, Hon. Abubakar Makki Yalleman said taxes enable the government to raise the necessary funds needed for development.

According to him, where taxes are inadequate, where there are leakages or where infractions of the system lead to narrowing of tax inflow, the government resorts to borrowings which have attendant consequences for national development.

“Abuses of tax incentives by the supposed beneficiaries and the statutory institutions meant to regulate the tax regime could push the government into fiscal constraints.

“While tax incentives are granted to encourage businesses to stand well and be strong enough to contribute to the economy, its abuse creates distortions in fiscal and monetary policy management.

“As Nigeria experiences dwindling oil revenue and public debt approaches prohibitive levels amidst allegations of abuse of tax incentives, there is the need to know the scope of tax incentives and the possible existence of abuses to enable proper administration of the tax breaks, waivers and incentives,“ Makki said.

He said that the investigation was not a witch-hunting exercise, but a fact-finding mission that aims to correct the abuses in the management of tax incentives and ensure the right thing is done for the general good.

Atiku condemns Coup in Gabon

By

Mana Balagbogbo

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August 31, 2023

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The presidential candidate of the People’s Democratic Party, PDP, in the last general elections, Alhaji Atiku Abubakar, has condemned the unconstitutional removal of the President of Gabon, Ali Bongo, by the country’s military officers.

Atiku who was a former vice president of Nigeria during former president Olusegun Obasanjo’s administration, in a statement on Thursday advised the leadership of the Economic Community of West African States, ECOWAS, to engage these soldiers diplomatically, thus convince them to return to the barracks.

Recall that Gabonese army officers, under the aegis of the Committee for the Transition and Restoration of Institutions, CTRI, on Wednesday, seized power and sacked Ali Bongo as President.

Ali Bongo is currently under house arrest according to TV reports yesterday.

Reacting to these recurring decimal called ‘coup’, Atiku in a statement condemned coup, noting that democracy has come to stay as a preferred form of government.

His words: “The coup in Gabon stands condemned. Democracy and democratic governance have come to stay as a preferred form of government, and everything should be done to enthrone, nurture, and sustain it.

“As I suggested in the case of the Niger Republic, the ECOWAS and African Union authorities should open a window of diplomatic engagement that will pave the way for the soldiers to return to the barracks.

The latest coup brings the number of military takeovers in Central and West Africa to 8 since 2020. This is worrisome and calls for introspection. We may have to focus on dealing with the disease and not the symptoms that birth coups”.

Court Upholds ₦50M Damages Against Abbo For Slapping Shop Attendant

By

faith Jegede

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August 31, 2023

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Senator Elisha Abbo, the lawmaker representing Adamawa North Senatorial District, has been mandated by the Court of Appeal in Abuja, to pay N50 million damages awarded by a High Court of the Federal Capital Territory for assaulting a woman, Osimibibra Warmate, in an intimacy gadget shop in Abuja, in 2019.

The three-member panel of the appellate court, led by Justice Jamilu Tukur, in a judgment, dismissed Abbo’s appeal, which he filed against the decision given on September 29, 2020, by Justice Samira Bature on a fundamental rights enforcement suit by Warmate.

The court affirmed the judgment of the High Court of the FCT, and held that Justice Bature was right in upholding Warmate’s case and awarding N50 million in damages against the Senator.

It rejected Senator Abbo’s argument that the suit was not properly commenced at the trial court and that he was denied a fair hearing.

The court, in the judgment delivered, also rejected Abbo’s argument that Warmate’s claim that he slapped her, pulled her hair and dragged her out of the shop did not amount to a rights violation, but a case of simple assault.

While describing Abbo’s conduct as sufficiently outrageous, the court resolved all five issues identified for determination against the Senator and further awarded N500,000 cost against him in favour of Warmate.

Justices Tukur, James Abundaga and Danlami Senchi (who were on the panel) were unanimous in holding that the appeal marked: CA/ABJ/945/2020 was without merit and proceeded to dismiss it.

Justice Senchi, who authored and read the lead judgment, held that from the evidence presented before the trial court, Warmate sufficiently proved that Senator Abbo violated her fundamental right to human dignity.

“The decision of the trial court in the award of N50 million against the appellant and in favour of the respondent was proper,” Justice Senchi said.

He added that going by the quality of evidence presented by Warmate, including a medical report and video recordings of the incident, the decision of the trial court could not be tampered with.

Justice Senchi added: “The conduct of the appellant is sufficiently outrageous to merit the punishment as the facts of the case disclosed flagrant disobedience of the law, especially that the appellant is an elected Senator of the Federal Republic of Nigeria.”

Senator Abbo’s appeal was against the September 28 judgment by Justice Samira Bature of the High Court of the FCT, in the fundamental rights enforcement suit marked: FCT/HC/CV/2393/2019.

Justice Bature had, among others, held that Senator Abbo’s violent attack on May 11, 2019, in an intimacy gadget shop at New Bannex Plaza, Wuse 2, Abuja amounted to inhuman and degrading treatment, which constituted a breach of her fundamental right to the dignity of her person guaranteed under Section 34 of the Constitution.

The incident went viral in 2019 after the video circulated on social media. Many criticized the senators’ act as shameless and worthy of condemnation.