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Invest Through Portfolio Approach – NSE Boss

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CEO of the Nigerian Stock Exchange (NSE), Mr

Considering the persistent bear run at the stock market, the Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema on Thursday advised investors to take a portfolio approach to investing in the market.

The Nigerian stock market has lost about N1.2 trillion in capitalisation since the beginning of the 2016 to headwinds resulting from declining oil prices at the international market and foreign exchange challenge in the country.

However, presenting the NSE 2015 market recap and 2016 outlook in Lagos, Onyema said the current state of the market creates both challenges and opportunities for investors.

“We believe that taking a portfolio approach to investing provides the best risk adjusted alternative for participating in the capital market. As such, we want to ensure that the NSE provides a repertoire of products that will allow investors to create well diversified portfolios of uncorrelated asset classes,” he said.

According to the NSE, the negative performance of the stock market is a reflection of the domestic economy and to some extent, international economic performance. He said assured investors not to panic, saying once there is recovery in economy, the stock market will equally bounce back.

“It would have been more worrisome if the economy is going down and the stock market is going up. But what is currently happening is a reflection of the heath of the nation’s economy,” he said.

Looking ahead, Onyema said while the anticipate 2016 to be a challenging year for the market and the domestic economy, “We intend to continue our collaborative efforts with the new administration and other private sector players to create a framework for financing the Nation’s infrastructure and capital requirements. Additionally, we plan to work with the FGN to ensure that the appropriate messaging is conveyed to the investor community.”

The NSE boss said the exchange will in 2016 will focus on executing its strategy in order to continue to provide a credible platform for financing the economy.

“To this end, we intend to intensify engagement efforts with the Federal Government of Nigeria. We have also prioritized three initiatives(demutualize the NSE, monetize market services suite, establish derivatives initiatives for 2016 aimed at achieving the Exchange’s three strategic objectives o increasing the number of new listings across five asset classes; increasing order flow in the five asset classes; and operating a fair and orderly market based on just and equitable principles,” Onyema said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Banking Sector

CBN Sets January 2023 Deadline for Financial Institutions to Strengthen Their Cyber Defenses

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The Central Bank of Nigeria (CBN) on Wednesday released the Risk-Based Cybersecurity Framework and Guidelines for Other Financial Institutions (OFIs), following the recent increase in the number and sophistication of cybersecurity threats against financial institutions.

The central bank has set January 1, 2023, as the effective date for full compliance with the provisions of the guidelines.

The bank said the directive became mandatory for institutions to strengthen their cyber defenses if they were to remain safe and sound.

The circular dated June 29, 2022, and signed by Nkiru Asiegbu, Director of OFIs Department, was addressed to all OFIs under the regulation of the banking sector regulator.

The apex bank added that the guidelines represented the minimum requirements to be put in place by all OFIs.

The regulator stressed that the safety and soundness of OFIs required that they operate in a safe and secure environment, hence the platform on which information is processed and transmitted should be managed in a way that ensures confidentially, integrity and availability of information as well as the avoidance of financial loss and reputation risks among others.

The CBN noted that considering the reliance of financial institutions on information and communications technology (ICT) to operate their business and the rising incidences of cyber threats and attacks targeted at financial institutions, it became necessary to implement cybersecurity measures to mitigate against those risks.

The bank specifically noted that threats including ransomware, targeted phishing attacks and Advanced Persistent Threats (APT) had become prevalent, demanding that financial institutions boost cyber resilience as well as take proactive steps to secure their critical information assets to ensure their safety and soundness.

The objective of the guidelines is to among other things create a safer and more secure cyber environment that supports information system security and promotes stability of the OFI sub-sector.

It also seeks to promote and maintain public trust and confidence in the sub-sector as well as contribute towards the prevention and combating of cybercrime in the OFI sub-sector.

Essentially, the framework provides a risk-based approach to managing cybersecurity risk and consists of six parts including Cybersecurity Governance, and Oversight, Cybersecurity Risk Management System, Cyber Resilience Assessment, Cybersecurity Operational Resilience, Cyber-Threat Intelligence and Metrics, Monitoring and Reporting.

The document also explained the roles of the board of directors in relation to cybersecurity as well as the appointment and responsibilities of the Chief Information Security Officer (CISO) among others.

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Banking Sector

Fitch Upgrades Fidelity Bank’s Issuer Default Rating from ‘B-‘ to ‘B’

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Mrs. Nneka Onyeali-Ikpe, MDCEO of Fidelity Bank Plc

Fitch Ratings has upgraded Fidelity Bank Plc’s long-term issuer default rating (IDR) from ‘B-‘ to ‘B’, reflecting the bank’s increased creditworthiness. The rating agency also upgraded Fidelity’s National Long-Term Rating to ‘A(nga)’ from ‘BBB+(nga)’.

According to the global rating agency, the upgrade is a result of the Bank’s improving business profile and resilient financial metrics. The agency added that the improved rating reflected the bank’s increased creditworthiness relative to other issuers in Nigeria, emphasizing that, “Fidelity’s Long- and Short-Term IDRs are driven by its standalone creditworthiness, as expressed by its Viability Rating (VR) of ‘b’ ”.

The agency further stated that the VR reflects healthy asset quality, good business profile and reasonable capitalisation and liquidity. These are balanced against high sensitivity to Nigeria’s challenging operating environment as well as higher credit concentration as a percentage of equity and weaker profitability than larger domestic-rated peers.

Commenting on the upgraded rating, Nneka Onyeali-Ikpe, Managing Director/CEO, Fidelity Bank Plc, stated, “Receiving this upgrade at a time when the global economy is faced with a myriad of challenges, speaks to the strength of our business model, the efficacy of our risk management culture and the commitment of our staff towards creating sustainable value for all stakeholders.  As a bank, we will continue to execute our growth strategy in a prudent manner that allows us to take advantage of emerging opportunities in our various markets”.

Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 6.5 million customers serviced across its 250 business offices and digital banking channels. The bank was recently recognized as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards. The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

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Banking Sector

Fidelity Partners ImpactHER to Empower 1,052 Female Entrepreneurs with Sales Skills

Fidelity Bank, a leading financial institution in Nigeria, has collaborated with ImpactHER to support 1,052 female entrepreneurs across the 36 states of Nigeria in addressing the challenges they face in their small and medium-sized businesses.

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fidelity bank - Investors King

Fidelity Bank, a leading financial institution in Nigeria, has collaborated with ImpactHER to support 1,052 female entrepreneurs across the 36 states of Nigeria in addressing the challenges they face in their small and medium-sized businesses.  Through diverse training on digital skills and direct business support, beneficiaries from two cohorts have been able to improve visibility for their businesses and consequently, increase sales.

The training, which commenced in January 2022, has had two cohorts that lasted for four weeks each, covering a myriad of topics such as Digital  marketing, building your brand and selling online, etc. The participants were also assisted in putting their businesses on Google Maps, thus allowing customers and the global market to easily find and transact business with them.

Commenting on the partnership, Osita Ede, Divisional Head, Product Development at Fidelity Bank Plc said, “It has become  imperative that female entrepreneurs in Africa are empowered to  overcome the lack of digital literacy which impedes them from fully  reaping the benefits of the digital transformation underway across  Africa, and the world. We believe providing them this access will help them to thrive in their different businesses.”

According to Efe Ukala, Founder of ImpactHER, “Statistically, women  and girls are 25 per cent less likely to leverage digital technology for  basic purposes, 4 times less likely to know how to programme  computers and 13 times less likely to file for technology patents. This  therefore highlights the importance of equipping African women with  digital skills that could be leveraged to scale their businesses. Let’s not  forget that data shows that Africa can add 180 billion Dollars to its  GDP by 2025 if we close the e-commerce digital gap.”

This intervention is critical as the Global Entrepreneurship Monitor for  2019/2020 highlighted that millions of women worldwide have started businesses over the last five years alone: the highest percentage of  these women live in Africa, with approximately 26% of female adults  engaged in entrepreneurial activity yet the World Bank confirms  through data collected in ten African countries that on average,  male-owned companies have six times more capital than female owned enterprises, resulting in monthly profits of female-owned  enterprises that are, on average, 38% lower than male-owned  businesses.

Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 6.5 million customers serviced across its 250 business offices and digital banking channels. The bank was recently recognized as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards. The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

The bank boasts of a robust bouquet of products designed to help female-led small businesses run successfully including digital loans and HerFidelity -a proposition comprising exciting features such as capacity development initiatives, access to finance, recognition and networking events, health and wellness programmes, etc, all designed to speak to the yearnings of women.

Clementina Uzogor, the Programs Director at ImpactHER, highlighted  the importance of helping women with skills like this to take their  businesses to the next level. “At ImpactHER, it is our mission to ensure  that we equip these women with tools for their businesses to thrive”,  she explained.

She also appreciated Fidelity Bank for working with them to ensure the  programme was successful and impactful. “It is important to let you  know that this is not the end of this training. We will be deepening our  partnership with Fidelity to train and support 5,000 more women-led  small and medium sized businesses in the country before the year runs  out”, she divulged.

An excited participant from the second cohort, Ms Akinyemi  Oluronke, a fashion designer from Lagos underscored the benefits of  joining the training for her business, “I’ve been able to build an online  presence, people now know my business exists and I get a lot of calls  from people who found my business online. I am very grateful for this  platform and the overall increase in sales I now enjoy.”

According to Carine Nneka Achokwu, another participant from the  January 2022 cohort and CEO of Carine Bakery, a company that  produces pastries and cakes in Lagos, Nigeria, “I have been able to  increase sales by 40% after using the tools that was provided to me  such as “Google My Business” and people have been calling to order  from me and I’ve also been able to reach more customers. I am  thankful that I can get people to patronize my business just by tapping  my phone based on the knowledge I acquired at this training.”

ImpactHER is an impact-driven nonprofit organization that empowers  African female entrepreneurs by bridging the gender business  financing gap so as to assist them in realizing their full economic  potential. ImpactHER has since its inception trained, directly supported with investor-readiness and  business scalability skills & tools to over 44, 275 women across 53 countries in Africa.

This partnership also provides follow-up training and support for the  participants and is one of the ways ImpactHER and Fidelity Bank help  these women scale up their offerings.

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