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CBN to License Stockbrokers to Access Liquidity Window

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Forex Weekly Outlook August 15 - 19
  • CBN to License Stockbrokers to Access Liquidity Window

Efforts by the Securities and Exchange Commission (SEC), to address liquidity constraints in the capital market heightened yesterday, as the Commission unveiled plans to seal agreement with the Central Bank of Nigeria (CBN), for a dual- licence model to enable Capital Market Operators (CMO) access the CBN window.

Besides, SEC said it was perfecting arrangements that would enable listed firms save up to N1billion through a pilot scheme that would enhance electronic dispatch of annual reports to shareholders.

The Director-General, SEC, Mounir Gwarzo, Gwarzo, while addressing journalists at the second quarter (Q2) Capital Market Committee (CMC) meeting in Lagos yesterday, said the dual licence will enable operators have a licence in accessing the CBN discount window for funds to eliminate the challenges of lack of liquidity faced by CMOs.

The Commission explained that it is currently discussing with the apex bank on the type of securities that operators need to put forward to fast track the process.

“Our discussion with the CBN is yielding positive and we commend the central bank for their commitment and dedication to the project. CBN is very interested in the initiative.”

He pointed out that the continued interventions by the CBN in the foreign exchange market, and the introduction of the Investors’ and Exporters’ Window (I&E) have impacted positively on the stock market performance. This is in terms of the listed firms ability to obtain foreign exchange for importation of inputs, which has ultimately improved their profitability

Concerning the annual reports, Gwarzo said quoted companies would save between N500million and N1billion from printing and dispatch of hard copies of annual reports to shareholders with the new electronic circulation initiative.

According to him, CMC had reviewed the issue in line with the macro economic challenges and decided to float a pilot scheme for electronic distribution of annual reports to save cost and ensure enhanced dividend payment in the market.

The Director-General said 98 per cent of shareholders do not get dispatched copies of the reports before the annual general meetings, adding that company secretaries have been mandated to dispatch hard copies of the reports during the pilot scheme to shareholder associations’ offices to enhance the initiative.

“We have been doing something for the last 50 years, which is not helping the companies or even investors. The market would review the pilot scheme in first quarter of 2018, and address identified loopholes before deciding on total stoppage of printing of annual reports.”

Furthermore, Gwarzo also revealed SEC’s plans to introduce a Minimum Operating Standard (MOS) for all categories of market operators. He explained that it will be implemented for all the Self-Regulatory Organisations (SROs) that have exchanges, Central Depository organisations alongside other operators in the capital market.

He added that the committee is focusing on the primary and secondary schools in order to inculcate basic understanding of the capital market on the younger generation to boost financial literacy.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

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Nestle

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.

The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.

Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.

It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.

Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website: www.gtlregistrars.com, complete and submit to the Registrar or their respective Banks.

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Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

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Executive Director of Zenith Bank Plc Buys 2 Million Shares of Zenith Bank at N53.6 Million

Executive Director of Zenith Bank Plc, Dennis Olisa, has invested a combined N53.58 million in shares of Zenith Bank.

The leading financial institution stated in a disclosure statement filed with the Nigerian Stock Exchange (NSE) on Monday.

Olisa carried out the purchase in two different transactions on February 24, 2021 at the Nigerian Stock Exchange in Lagos, Nigeria.

He purchased 1 million units of Zenith Bank at N26.60 each and another 1 million shares at N26.50 per share.

On aggregate, Olisa purchased 2 million shares of Zenith Bank at N26.79 per share or N53.58 million. See the details below.

Dennis Olisa was appointed as Zenith Bank’s executive director three years ago.

Prior to his appointment, Mr. Olisa was the Chief Inspector at Zenith Bank Plc and served as its Director from March 3, 2017 until March 16, 2017.

He also served as General Manager and Heads of the Energy Oil & Gas Group at Zenith Bank Plc and served as its Deputy General Manager. He served as Head of Internal Control & Audit Group at Zenith Bank Plc

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Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

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