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Indians, Britons Key into Nigeria’s e-Dividend Mandate Scheme



Nigerian stock market
  • Indians, Britons Key into Nigeria’s e-Dividend Mandate Scheme

Indians and Britons have emerged the two dominant sets of players, among other foreign players, in Nigeria’s electronic dividend mandate exercise for the capital market.

Latest data released by the Nigeria Inter-Bank Settlement System Plc showed that aside from Nigerian investors, Indian and British investors topped the e-dividend register with 156 and 142 cases, respectively.

In addition, 0.4 per cent of the foreign investors are non-resident in Nigeria.

While 421,377 of the investors on the platform are Nigerians, the numbers of Indian, Lebanese and American investors are 109, 46 and 32, respectively.

In terms of states of residence, Lagos and Abuja came tops as 38 per cent of the investors are based in Lagos, while eight reside in the Federal Capital Territory.

Rivers, Ogun and Oyo states follow on the list as a total of six, five and five investors reside in them respectively.

Age distribution of the investors show that investors between 45 and 54 dominate the process, recording 31.3 per cent compliance. This is followed by the 35 to 44 age range, which has 24.9 per cent compliance.

The 55 to 64 age range drove 22.6 per cent of the process, while age ranges 65 and above, 25 to 34 and 15 to 24 achieved 12.2 per cent, 8.1 per cent and 0.9 per cent compliance, respectively.

The NIBSS recently revealed that indigenes of Anambra State were the highest subscribers to the electronic dividend mandate of the Securities and Exchange Commission, with 10 per cent participation.

The e-Dividend mandate registration update, as of the last release, revealed that Imo, Ogun, Delta and Edo states followed with nine per cent, nine per cent, seven per cent and six per cent participation, respectively.

The total e-Dividend registration stood at 2.1 million, the total unique investors by accounts was 838,671, while the total unique investors by Biometric Verification Number stood at 433,164.

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 market.

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DMO Says N150bn FGN Bonds to Open for Subscription on August 19



Director General DMO

FGN’s N150 Billion Bonds to Open for Subscription Next Week

The Debt Manage Office (DMO) on Tuesday announced that the Federal Government of Nigeria will offer N150 billion bonds for subscription on August 19, 2020.

According to the statement issued by the DMO, the Federal Government will offer N25,000,000,000 at 12.50 percent for bonds maturing in Jan 2026.

For bonds maturing in March 2035, the Federal Government will offer N40,000,000,000 bond at 12.50 percent.

Similarly, a total of N45,000,000,000 bond with July 2045 maturity will be on offer at 9.80 percent interest rate while another N40,000,000,000 bond with 12.98 percent interest and March 2050 maturity will also be on offer.

On interest rate, the DMO said “For Re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.”

On the unit of sales “N1,000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.”

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Pension Funds Invest N55.25bn as Total Assets Hit N10.7trn



pension funds

Pension Funds Administrators Invest N55.25bn

The Pension Funds Administrators said a total sum of N55.25 billion has been invested under the Contributory Pension Scheme in infrastructure as of the end of May.

This was stated in the commission report titled ‘Summary of pension fund assets as at 31 May, 2020’ obtained on Monday.

According to the report, the total assets under the Pension Funds Administrators stood at N10.79 trillion during the period under review.

In the commission amended investment regulation, it had stated that it would invest the funds in line with the provisions of Pension Reform Act, 2014.

This was also stated by the PenCom. The PenCom said the Pension Funds Administrators must maintain a multi-fund structure in line with the regulation.

It stated, “In addition to the requirements of other guidelines issued by the commission on corporate governance, ethics and business practices, each PFA shall establish an investment strategy committee as well as a risk management committee, in compliance with section 78 of the Pension Reform Act, 2014.

“The investment strategy committee, in addition to other functions specified in the Act, shall formulate internal investment strategies to enable compliance with this regulation, taking into cognisance the macro-economic environment as well as the investment objectives and risk profile of the respective PFA Funds.”

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Investment Commitment Drops By 67% to $5.06bn in H1, 2020




Nigeria’s Investment Commitment Depreciates to $5.06 Billion in H1, 2020

The Nigerian Investment Promotion Commission (NIPC) disclosed that the nation’s total investment commitment by investors declined to $5.06 billion between January and June 2020.

This represents a decline of 67 percent or $10.9 billion from the $15.15 billion reported in the first half of 2019.

The commission disclosed this in a report obtained in Abuja on Sunday and stated that the drop was in line with the projected downward pressure in investment inflows given the negative impact of COVID-19 pandemic on the economy as a whole.

The report also revealed that investors from Nigeria and three other countries announced 34 projects in 16 states and the Federal Capital Territory during the first quarter of the year.

Top destinations for investors in the first quarter were $2.61 billion; Lagos, $221 million; Nasarawa, $56 million; Ekiti, $50 million; and Cross River, $15 million.

Accordingly, the transport and storage sector attracted 40 percent of the total investment commitment while information and communication received 32 percent with mining and quarrying attracting 22 percent.

The United States of America emerged as the most active source of investment during the first quarter, committing 43 percent of the announcements.

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