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SEC, NFIU to Tackle Fraud, Ponzi Schemes

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  • SEC, NFIU to Tackle Fraud, Ponzi Schemes

The Securities and Exchange Commission and the Nigerian Financial Intelligence Unit have signed a Memorandum of Understanding to collaborate in combating crime in the Nigerian capital market and to ensure that suspicious transactions are eradicated from the market.

The acting Director-General, SEC, Ms Mary Uduk, who spoke in Abuja during the signing of the MoU, said the collaboration was necessary in order to close the ranks in the face of insider dealings, re-awakening of Ponzi schemes, cybercrime and other fraudulent activities that had engulfed the market in the last few years.

Uduk said the commission was paying close attention to digital transactions and was in the process of amending its rules to capture such transactions.

According to her, the commission already has regulations that prohibit shell companies from operating in the capital market and implored the NFIU to assist with solutions to track suspicious transactions as they occur.

Uduk said, “If we have solutions that will help us track transactions, it will reduce the incidence of insider dealing greatly. We will be very willing to collaborate with you on that in our determination to ensure that our markets are efficient and transparent and all investors are protected.

“Some areas where the MoU seeks cooperation of both agencies include training, secondment of middle cadre officers between both organisations, cross-border monitoring, repatriation of stolen funds from the capital market and prosecution of offenders, among others.”

On the rising spate of Ponzi schemes in the country, Uduk stressed the need for more collaborations between both organisations and further sensitisation to ensure that unsuspecting Nigerians did not continue to lose their hard-earned money.

The Director, NFIU, Mr Modibbo Tukur, commended SEC for the relationship that had existed between both organisations and assured that the NFIU would continue to play its part in ensuring that the financial system was safe for Nigerians to operate.

He said the NFIU was making efforts to ensure that the financial system was rid of shell companies, adding that for companies to exist, they should have physical addresses.

Tukur said, “If anyone establishes a company, it has to be a company indeed and we have to be firm on this. This has become more important now given the roll out of the Economic Community of West African States single currency, because with that, we know that capital and investments will move across borders and it is a single currency.

“So, we have to step up regulation to avoid fraudulent transactions. We will commence by September and some companies would have to be deregistered if they do not meet the criteria.

“We will publish the parameters and also give them enough time to regularise, after which those that do not comply before the deadline will be shut down.”

Tukur added that by the time the NFIU commenced the due diligence on the shell companies, the information would be shared with SEC for further action.

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

Investors Oversubscribed for FGN Bonds by N205.87 Billion in October

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bonds

FG October Bonds Oversubscribed by N205.87 Billion

The Debt Management Office (DMO) has said investors oversubscribed for the Federal Government’s October bonds by N205.87 billion.

The DMO stated this after concluding the monthly FGN bonds auction on Wednesday.

Two instruments of 12.5 per cent FGN March 2035 re-opening 15-year bond and 9.8 per cent FGN July 2045 re-opening 25-year bond were auctioned.

The two bonds of N15bn each with a total auction figure of N30bn received a subscription of N235.87bn.

The 15-year tenor and 25-year tenor bonds received 99 and 67 bids but recorded 21 and 26 successful bids respectively.

The amounts allotted for each of the bids were N20bn and N25bn respectively.

According to the DMO, successful bids for the 15-year tenor bond and 25-year tenor bonds were allotted at the marginal rates of 4.97 per cent and six per cent respectively.

However, it added, the original coupon rates of 12.5 per cent for the 12.5 per cent FGN March 2035 bond and the 9.8 per cent for the 9.8 per cent FGN July 2045 bonds would be maintained.

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Lafarge Africa Sustains Growth in Third Quarter, Reports N53.3bn Revenue

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Lafarge Africa

Lafarge Africa Grows Revenue by 31.4 Percent to N53.3bn Revenue in Q3 2020

Lafarge Africa Plc, a cement manufacturer headquartered in Lagos, sustained its strong growth in the third quarter (Q3) ended September 30, 2020.

In the company’s financial results released on the Nigerian Stock Exchange on Friday, the cement manufacturer’s revenue rose by 31.4 percent from N45.172 billion posted in the third quarter of 2019 to N59.337 billion in the third quarter of 2020.

Similarly, operating profit grew by 7.2 percent from N7.746 billion in the corresponding quarter to N8.302 billion in the quarter under review. This strong performance continues across the board as net income expanded by 2.8 percent to N4.867 billion, up from N4.734 billion posted in the third quarter of 2019.

Lafarge earnings per share rose by 2.8 percent to 30 kobo in the third quarter, again up from the 29 kobo posted in the same period of 2019.

On the outlook for the company going forward, the company said:

 Market demand is expected to remain strong in Q4.
 Naira devaluation and inflation remain a concern in Q4.
 The implementation of our “HEALTH, COST & CASH” initiatives would continue to deliver
improvement in our performance.
 We will maintain a healthy balance sheet.

Speaking on the company’s performance, Khaled El Dokani, CEO, Lafarge Africa Plc, said “Our robust results for the first 9 months reflect the strong recovery of the demand in Q3 and the successful implementation of our “HEALTH, COST & CASH” initiatives. Both have delivered considerable improvement in recurring EBIT, net income and free cash flow, despite the impact of the COVID-19 pandemic and Naira devaluation, particularly in Q3.

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Despite COVID-19 Pension Assets Hit N11.4 Trillion

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pension funds

Total Pension Assets Expand to N11.35 Trillion

The National Pension Commission has revealed that the total pension assets rose to N11.35 trillion as of the end of August 2020 despite the COVID-19 pandemic that disrupted businesses and economic productivity.

According to the latest figures from the National Pension Commission,  the commission assets expanded from N11.08 trillion in June 2020 to N11.3 trillion in July.

The report noted that 66.27 percent or N7.51 trillion of the funds had been invested in the Federal Government’s securities.

While some of the funds were also invested in domestic and foreign ordinary shares, corporate debt securities, local money market securities and mutual funds.

In the commission’s second quarter (Q2 2020) report, it said that following “the issuance of demand notices to some defaulting employers whose outstanding pension contribution liabilities had been established by recovery agents, 16 of the affected employers remitted N261.33 million during the period.

“PenCom said this represents a principal contribution of N152.79 million and penalty of N108.54 million during Q2 2020.”

In the commission’s Q2 2020 report, it said “the pension fund administrators (PFAs) 2,839 contributors under the micro pension plan, remitted a total of N7.4 million to the RSAs as pension contributions.

Also in the same quarter, it said the PFAs recaptured 56,990 RSA holders and uploaded their data to the enhanced contributory registration system (ECRS).

PenCom further said the growth in the industry’s membership was driven by the RSA scheme, which had an increase of 41,147 contributors, representing 0.46 percent.

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