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NCDMB Wants More Oil Firms to List on NSE



capital market
  • NCDMB Wants More Oil Firms to List on NSE

The Nigerian Content Development and Monitoring Board has said it would like to see more oil and gas firms in the country list on the Nigerian Stock Exchange.

The Executive Secretary, NCDMB, Mr Simbi Wabote, said on Tuesday that this would be a game-changer in the operating model of “our oil and gas industry as it gives room for pooling together of funds for growth as well as the empowerment and inclusion of Nigerians in the activities of the mainstay of our economy.”

According to him, most of the companies listed under the oil and gas sector on the NSE are into marketing of petroleum products.

Wabote stated these in Lagos when the management of the NCDMB visited the bourse to perform the closing gong ceremony.

“We would like to see more of the upstream and midstream companies listed on the Exchange. More importantly, we would like to see a major shift in the listing of companies that add value to our hydrocarbon resources in-country such as refineries, petrochemical industries, fertiliser companies, and companies in the Liquefied Petroleum Gas/compressed natural gas value chain,” he said.

Wabote noted that the NCDMB recently launched its 10-year strategic roadmap, which was designed to increase the Nigerian content level in the oil and gas sector from the current level of about 30 per cent to 70 per cent by 2027.

He said, “This means retention of about $14bn in the Nigerian economy out of the yearly spend of $20bn. This target represents huge opportunities for investors in the Nigerian economy.

“We see opportunity to collaborate with the NSE to increase the depth and breadth of listings using our 10-year strategy as a driver. For us in the board, we have commenced multiple strategic initiatives to bring the roadmap into fruition.”

According to the NCDMB boss, the vision of the board is to be a catalyst for the industrialisation of the nation’s oil and gas industry and its linkage sectors.

He added, “One of our focus areas is to serve as a catalyst for in-country resource utilisation. To this end, we have taken 30 per cent equity in a 5,000bpd modular refinery. Other similar proposals for the establishment of modular refineries are under review. We reckon that at least 10 per cent of Nigeria’s oil production should be refined using modular refineries.

“As a regulator, we have put in place our exit plans from these investments. We see opportunity to divest such equity via the Nigerian Stock Exchange so that Nigerians and other investors can be part owners of such enterprises.”

He stated that the expected partnership would boost activities in the stock market, increase the listing of Nigerian companies on the stock exchange, and help foster businesses with enduring legacies.

Wabote commended the NSE for playing a vital role in the economy by serving as a means of wealth creation and distribution, as well as a source of long-term financing, “even as the businesses listed on the exchange use their products and services to meet the needs of our people.”

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


Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth



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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Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans




CIT Microfinance Bank Disburses Over N16bn Loans

CIT Microfinance Bank Limited says it has disbursed about N16bn loans since it commenced operations as part of its contributions to the financial sector and empowerment of businesses.

The Managing Director of the microfinance bank, Mr Kingsley Eremionkhale, disclosed this during the company’s 10th anniversary in Lagos recently.

He reiterated that the bank was committed to supporting the growth of small and medium-scale enterprises in the country.

“Since inception, we have disbursed loans worth about N16bn. Our operation is not just about profit-making, but we have impacted many lives, empowered many businesses, and done a lot in terms of our core mandate as a microfinance bank.”

While appreciating its customers who had been loyal to it for years, he said it was concerned about their business success.

The managing director said, “We are part of our customers’ businesses. We provide services beyond lending and savings products and we also give financial advisory services.”

He appreciated the customers who had stayed with the financial institution for many years.

The managing director noted that the MfB is a state-licensed bank operating in Lagos, and a subsidiary of Capitalfield Investment Group.

He also attributed the success of the MfB to the board of directors which it said had been supportive, the management team and its workforce in the past 10 years.

While saying that the bank could lay claims to exponential growth, he said the public should expect more from it.

He also said that it was driving its operations through its digital offerings and our e-channels, to improve its services to our customers.

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FMDQ Approves Valency Agro’s N5.12bn Commercial Paper




FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

FMDQ Securities Exchange Limited has announced the approval of the quotation of the Valency Agro Nigeria Limited N5.12bn Series 1 Commercial Paper under its N20bn CP Programme on its platform.

The Exchange said in fostering the development of the Nigerian debt capital markets, it had continued to avail its credible and efficient platform as well as tailor its listings and quotations services to suit the needs of issuers and registration members through innovative and uninterrupted service delivery.

It said in a statement on Thursday that the Valency Agro Nigeria CP debut issue came at a time when the Nigerian economy was bedeviled with soaring food prices, amidst compounding challenges of insecurity.

It said the agricultural sector and its attendant transformation agenda had never been more important in driving increased and sustainable production of agricultural products as well as the derived foreign earnings through exports.

The Exchange said the proceeds from the issue of the CP would be applied by Valency Agro towards meeting the mid-term working capital requirements of the various agricultural produce under its portfolio such as cashew, sesame, cocoa and in value addition prior to export.

The Executive Director, Valency Agro Nigeria Limited, Mr Sumit Jain, was quoted as saying, “We are thankful to our investors towards showing their faith in our agenda to grow the agriculture-focused business with a clear aim to maximise value addition and create employment opportunities in Nigeria.

“We would also like to commend the efforts made by FBNQuest Merchant Bank Limited’s team to build the reach and FMDQ for their unconditional support for the industry”.

The Head, Capital Markets, FBNQuest Merchant Bank, Mr Oluseun Olatidoye, said, “FBNQuest Merchant Bank Limited is delighted with the successful debut of the N5.12bn Series 1 CP issued by Valency Agro Nigeria Limited. This reiterates our effort to enable underserved sectors access the debt markets, optimise their capital structure and further deepen the domestic capital markets.

“We are proud of the instrumental role FBNQuest Merchant Bank played in this transaction and appreciate the trust the management of Valency Agro placed in us to assist them. Our clients remain our priority, and we strongly believe their success is our success.”

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