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NAN Group Raises Alarm Over Payment of N755m As Compensation To Three NGX Directors

NAN group raises Alarm overpayment of N755m as compensation To three NGX directors

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Nigerian Exchange Limited - Investors King

A rights and transparency group, Nigeria for All Nigerians (NAN), has raised an alarm over the payment of N754.87 million as compensation to three Executive Directors of the Nigerian Exchange Group Plc (NGX).

The group raised the alarm, following the publication of the NGX’s 2021 full year report. According to the group, NGX made an operating profit of N320 million in 2021 but paid its three Executive Directors N750m.

“Shareholders value was massively eroded by a cost structure that serves these executives to the detriment of shareholders. The reason this is taking place is because the shareholding base of the NGX is terribly fragmented thus allowing management a free rein”, a source said.

The General Secretary, NAN, Mr. Dele Ajanaku recalled that the group had, in October last year, called on concerned regulatory authorities to stop violation of the Nigerian Investments and Securities Act by not allowing Mr. Oscar Onyema to serve as MD/CEO of NGX Group and also a non-executive director on the NGX Ltd.

“The highest paid board member, the MD/CEO as revealed in 2021 audited financial report earned N160.02 million as remuneration from N156.2 million in 2020. The Nigerian capital market is supervised by the Federal Ministry of Finance.

“One of the biggest issues allowing the emergence of these scandalous earnings by the three NGX directors is poor governance.

“In an economy where a majority of the population are poor and inflation has made their spending power weak, it is scandalous that three directors of NGX would earn the kind of amount reported in their report, while its non-management staff dropped to 176 from 241 recorded in prior year”, Ajanaku lamented.

He further noted that the NGX directors were tending towards fiscal irresponsibility by taking care of themselves in good times, but reducing the number of management staff.

“The disclosure of the earnings of the three NGX directors as “early warning signs showing a strong indication of the imminent direction they are taking the NGX, which is why we call on the Federal Government to act now before the NGX’s credibility is damaged as we are in a fragile period”, he added.

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Merger and Acquisition

Otedola Moves to Sell Part of Geregu Power Plc to FEDA

Afreximbank to acquire part of Geregu Power plant

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Geregu Power

Billionaire Femi Otedola-owned energy company, Geregu Power Plc is in talks with the Fund for Export Development in Africa (FEDA) for the acquisition of part of the energy company.

The company stated in a statement signed by Akinleye Olagbende, Company Secretary and made available on the Nigerian Exchange Limited (NGX).

Geregu Power hereby notifies “Nigerian Exchange Limited (the Exchange) and the investing public of its discussions with the Fund for Export Development in Africa (FEDA) for the acquisition of a portion of Geregu Power Plc shares. FEDA is the impact development arm of the Africa Export and Import Bank (Afreximbank),” the company stated.

According to the energy firm, talks are presently ongoing and “where these talks progress to a more advanced stage, the company will notify the Exchange and the investing public in line with the rules of the Exchange.”

In October, Geregu Power listed 2.5 billion shares at N100 a unit on the Main Board of the NGX. This puts the company’s market value at N250 billion and also in a better position it to raise capital to bid for Geregu II as it is presently doing.

Speaking on the listing, the Chairman, Board of Directors, Mr. Femi Otedola, CON, said “the listing of the company was the actualization of a vision to bring world-class standards in governance sustainability, and business processes to the Company and the Nigerian electricity sector.”

He added that “listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders”.

Otedola is the largest shareholder in FirstBank and also holds a 99% stake in Amperion Power, the owner of the Geregu Power Plant.

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Merger and Acquisition

Access Bank Acquires Indirect Stake in Sigma Pensions

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Access bank

Access Holdings on Friday announced it has completed the acquisition of an indirect equity stake in Sigma and the merger of its subsidiary, First Guarantee Pension Limited (FGPL) with Sigma.

According to the bank, following the sanction of the Scheme of Merger between Sigma and FGPL by the Federal High Court on December 1, 2022, FGPL has been dissolved without winding up leaving Sigma as the surviving entity, according to Access Holdings.

Commenting on the transaction, Dr Herbert Wigwe, Group Chief Executive of the Corporation, said “Following the successful completion of the merger, our plan is to leverage the synergies of these entities, as well as the Corporation’s expansive distribution network, strong risk management culture and best-in-class governance standards to create a formidable pension funds administration business.”

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Company News

Dangote Group Dismisses Rumours of Plan to Rise Cement Price

Dangote Cement says no price increase

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Africa’s leading cement producer, Dangote Cement Plc has dismissed the rumor that it plans to increase the price of its products.

The clarification became necessary following a recent publication that Dangote Cement plans a fresh increase.

Recently, there has been some publication (Not Investors King) about a potential increase in the price of cement. The publications noted that the increase will be a result of the high cost of fuel among other prevailing issues. 

According to the Senior Manager, branding and communication, Dangote Industries Limited, Mr Sunday Esan, “Dangote Cement is not embarking on a price increase”, stating that the increase is mere speculation.

Meanwhile, Dangote Cement in the third quarter of 2022, recorded an increase in the overall volume of cement sales by 6.2 percent to 20.8 metric tons in the third quarter of 2022.

According to the company’s Chief Executive Officer, Michel Puchercos, this was achieved, despite the elevated inflation caused by a very volatile global environment.

Similarly, while speaking on the increase in the price of fuel, Puchercos said “to mitigate the impact of the significant increase in energy and AGO costs, we are strengthening our efforts to ramp up the usage of alternative fuels”.

“We are on track to commission our Alternative Fuel feed system at Obajana lines I and V, and Ibese line II in November. In addition, we are ramping up our investment in Compressed Natural Gas (CNG), to reduce our AGO usage,” he added. 

Investors King understands that Dangote Cement is Africa’s leading cement producer with nearly 51.6Mta capacity across Africa. Although it has a few competitors which include BUA Cement, the company supplies most parts of Nigeria.

In addition, Dangote Cement has operations in 10 African countries. 

Its production plant in Obajana, Kogi state, is the largest in Africa with 16.25Mta of capacity across five lines while the Ibese plant in Ogun state has four cement lines with a combined installed capacity of 12Mta.

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