₦airaland Forum

SOURCE (remove the space between gist & mania): https://www.gist mania.com/talk/topic,377911.0.html

Customs Officer Accidentally Kills His Colleague While Trying To Extort A Traveler (Video)

By Bohlah at 12:45 PM, 17/02/2019

A Customs officer accidentally killed his colleague while trying to extort a traveler, today, along the Lagos-Ibadan expressway. According to reports, the officer accidentally shot his colleague dead when he tried to shoot a civilian traveller.

The victim of the extortion was said to be travelling down to the eastern region of Nigeria when accosted by the Customs officers. He was asked to pay N300,000 which he refused, as he complained that it was way too much. Eyewitnesses disclosed that the argument got heated up and the Customs officer accidentally killed his colleague while trying to shoot the traveller. See what Derumours wrote below:

"This is happening now on Lagos Expressway. A man was stopped by Nigerian Customs officers on his way to the East. Was charged to pay almost N300,000 for his car which he refused, and complained is too much. After many arguments and out of annoyance the Customs officer mistakenly shot his fellow Customs man in cold blood when he wanted to shoot the civilian".

VIDEO:
https://video.twimg.com/ext_tw_video/1097155288816328704/pu/vid/400x728/3d-Tk5nYri480b9p.mp4?tag=6

Regardless of which candidate you are rooting for, here are some things you need:

1. Get your PVC and pre-identify your polling centre, via www.gotomypu.com
2. Face cap
3. Sunglasses
4. Mobile phone (with earphones)
5. Power bank
6. Drinking water
7. Canvas shoes
8. Identification Card
9. Cash
10. Eat Breakfast and take some snacks along.

ON THE ELECTION DAY, DO NOT WEAR PARTY-BRANDED CLOTHING AND DO NOT CAMPAIGN.

If you observe any case of electoral malpractice, here are the EFCC emergency numbers:

ABUJA HQ------ 08141219896, 09077928772, 09051923475, 09074456025, 09051916064, 09066270016

ABUJA ZONAL OFFICE----08033492025, 08123827088

LAGOS OFFICE ---08033106347, 08123827088

PORT HARCOURT OFFICE ------ 08065642958

KANO OFFICE ---08033500256

GOMBE OFFICE ---07061813411

KADUNA OFFICE ---08037623831, 08058437872

ENUGU OFFICE ---07064917920

BENIN OFFICE ---08036008537

MAIDUGURI OFFICE ---08035899836, 08123827019

UYO OFFICE ---08055112603, 08180008030

SOKOTO OFFICE ---09085666666, 08081765401

ILORIN OFFICE ---08034516071

MAKURDI OFFICE ---08036328837

IBADAN OFFICE ---07030885555

The EFCC has offered rewards to anyone that may have authentic evidence of electoral fraud in their area, in accordance with the whistle-blowing policy of the government.

Best of luck as we go to the polls. God bless Nigeria!

SOURCE(abridged): https://www.premiumtimesng.com/news/top-news/313331-inec-lists-five-steps-to-addressing-challenges-before-new-election-date.html

Independent National Electoral Commission (INEC) has outlined 5 steps to resolve its logistics issues before the new date of the presidential and national assembly elections.

According to a breakdown by the commission’s chairman, Mahmood Yakubu, the steps are:

1. February 17-21: Configuration of Smart Card Readers.
2. February 18: Completion and confirmation of materials.
3. February 20 – 21: Receipt and distribution of sensitive materials made to Local Government Areas.
4. February 21: Refresher course for ad-hoc staff.
5. February 22: Deployment of personnel to Registration Area Centres.

The commission apologised to Nigerians and all stakeholders, seeking their understanding.

“I want to appeal to Nigerians and all other stakeholders for their understanding in what has been a very difficult decision for the Commission,” Mr Yakubu said. As Chairman of INEC, and on behalf of the Commission, we take full responsibility for what happened and we regret any inconvenience our decision might have caused.”

He said the decision, though painful, was for the good of the nation. He, therefore, assured the commitment of the commission to conduct free, fair and credible elections. He also insisted that the postponement was only due to logistics issues, not due to security issues, political influence or lack of resources.

Violence erupts in Anambra state ahead of general elections

Barely hours to the commencement of the 2019 polls, Anambra state has recorded cases of election related violence.
A member of House of Representatives, Mr. Gabriel Onyenweife, who defected from All Progressive Grand Alliance, APGA, to the Peoples Democratic Party, PDP, after failing to secure a ticket of APGA, had one of the houses in his compound set ablaze in the Ayamelum Local Government Area while 30 motorcycles he assembled for empowerment were razed.

Another victim of the violence was the member representing Nnewi North, Nnewi South and Ekwusigo federal constituency, Mr. Chirs Azubogu who lost a campaign vehicle to arsonists.

On Thursday, the divisional police station at Ajali in Orumba North local government area of the state was gutted by fire.

Many policemen were beaten up before the station was set ablaze, while some vehicles parked at the station were burnt. Some detainees at the station were allegedly released by people suspected to be members of Indigenous People of Biafra, IPOB, who moved into station immediately the fire started.

SOURCE: https://www.lindaikejisblog.com/2019/2/violence-erupts-in-anambra-state-ahead-of-general-elections.html

SOURCE (abridged): https://nairametrics.com/2019/02/14/economic-boost-for-buhari-as-nigerias-gdp-grows-fastest-in-4-years/

ECONOMIC BOOST FOR BUHARI AS NIGERIA'S GDP GROWS FASTEST IN 4 YEARS By Bamidele Samuel Adesoji -
February 14, 2019.

Nigeria's economy appears to have finally come out of recession - an economic woe it nosedived into due to over-reliance on oil. In wake of 2018 full GDP data release by the Nigerian Bureau of Statistics, Nigeria’s GDP grew fastest in 4 years with 2.38% growth rate in the last quarter of 2018 (Q4). Since President Muhammadu Buhari took over in 2015 from former President Goodluck Jonathan, the economy reached an all-time high. It grew at 2.38% in Q4 of 2018 from 2.35% in Q2 of 2015.

SECTORAL PERFORMANCE
Overall, the economy grew 1.93% in 2018, from 0.82 in 2017. Non-oil sector contributed about 91.4% of total GDP, up from 91.33% in 2017. This reflects an improvement in productivity of the non-oil sector in Nigeria and is basically attributable to growth in the service sector.

Notably, the service sector grew 1.83% in 2018, from -0.91% in 2017. Whatever policy is responsible for this, the current administration must have gotten something right, which has boosted the thriving service sector. However, oil sector contribution to GDP dropped in 2018 to 8.6% from 8.67% in 2017.

It is instructive to note that despite drop in oil sector contribution to GDP, the sector still accounts for over 90% of Nigeria's revenue. Hence, it is still debatable whether relatively stable oil price is responsible for the recent economic growth, or solely due to government policy reforms.

POLICY REFORMS AND GROWTH: SIAMESE TWINS
In many countries of the world, prolonged stagnation or declining living standards is undermining confidence of people in government policy reforms. As a result, there are continued efforts from the people to stiffly resist and reject the policies.

Globally, policymakers face a recurrent struggle to improve economic outcomes. Justifiably, mainstream economic theory has made a strong case for structural reforms and argued that structural reforms are always targeted at removing constraints from the supply side of the economy. Removing constraints on the supply side is expected to improve factor allocative efficiency, leading to medium and long term growth.

Essentially, policy reforms are not Hybrid Poplar — a tree that grows very fast (up to 5 to 8 feet per year). According to the Economic Policy Reform of Organisation for Economic Co-operation and Development (OECD) 2017, surging political headwinds greatly influence pace of policy reforms. Particularly, in an environment where there is uncertainty in growth prospects, policy reforms take some time to bear fruit.

In spite of supposed long term effects of policy reform, the government cannot let down the pace of reforms, as this will subjugate the economy to a bigger crisis in both the short and long term.

IS NIGERIA'S CURRENT ECONOMIC GROWTH BASED ON POLICY REFORMS?
Over the last two years, global growth has stayed around 3%, while being 4% in the past 4 years. The current administration in Nigeria, in order to improve the economy after the recession, embarked on the Economic Recovery and Growth Plan (EGRP) in 2017. It was set out to basically restore the country to growth, invest in human capital and build a globally competitive economy. Essentially, the ERGP spanning (2017-2020) is ambitiously targeting a 7% real GDP growth by 2020.

According to the Report of the Nigeria Economic Summit Group (2018), the Federal Executive council (FEC) has implemented 55 policies between May 2015 and 2018. This implies that there have been policy reforms at various levels of the Nigerian economy.

Among OECD countries, post-crisis of 2012, growth rate has averaged 2% (or even less in some cases). Indeed, overcoming growth sustainability challenges require coherent structural reform strategies. The current administration in Nigeria might just have achieved the 1.93% growth rate through its policy reforms.

AN ECONOMIC SCORE FOR PRESIDENT BUHARI?
As the Nigerian general election approaches, the polity is heating up and political gladiators are making calculations, while several claims of ineptitude are being targeted at one another to sway voters. The statistics are here again and are likely to bring some dose of excitements to some camps.

“We are perpetually being told that what is wanted is a strong man who will do things. What is really wanted is a strong man who will undo things; and that will be the real test of strength.”

The political maxim above was credited to Gilbert Keith Chesterton, an English writer, poet and philosopher popularly known as the "prince of paradox" and who lived between 1874 –1936.

GDP figures show that Nigeria is once again on the growth path. However, how will this really influence voters’ decisions? The different actors and idealists of political parties in Nigeria believe that their candidates either have the will to do things or undo them. Whatever the economy portends, they vote for their candidates as loyal supporters.

For the elite, the figures tend to matter in their intellectual debates. However, a large fraction of the elite find themselves woven in the fabric of the political class.

Lastly, the masses, that is, majority of Nigerians - market men and women, bus drivers, artisans, educated and uneducated Nigerians; victims of vote buying and electoral violence. They may not all understand what GDP figures mean, but they can relate and are quick to either discard or accept when being told the economy is growing.

To them, the economy is not growing until it affects their businesses positively on a day to day basis, gives jobs, and puts food on their tables. Hence if in reality, they have felt their own perceived growth indices so far, the GDP figure may just be a booster to increase chances of the incumbent to be re-elected.

The answer to your question is NO and YES:
1. No, it is not fake news, because the NERC actually made such a pronouncement.
2. Yes, it is fake news, because that pronouncement was actually made in January 2017 (two years ago), with the deadline set at 28th February, 2017.

However, the deadline couldn't be met, as detailed in the article below:
=========================================
SOURCE: https://t.guardian.ng/news/discos-miss-february-deadline-for-metering-of-electricity-customers/

The Guardian News

Discos miss February deadline for metering of electricity customers - By Roseline Okere
28 February 2017 | 4:29 am

Electricity Distribution Companies (Discos) have failed to meet the February 28, 2017 deadline set by the Nigerian Electricity Regulatory Commission (NERC) for provision of pre-paid meters to customers nationwide. The development comes as electricity generation stagnated yesterday 27th February 2017 at 4,315.45 mega watts, a far cry from national peak demand of 19,100 MW. It was learnt that the unenviable situation, majorly caused by gas constraints, had resulted in power firms incurring almost N869 million loss this month alone.

Following complaints of high rates by customers arising from estimated billing, the regulator had mandated Discos to meter consumers across the federation, threatening defaulters with sanctions from March 1st, 2017. It even went the extra mile of asking unmetered customers to lodge reports at any of its offices on the due date.

Reacting, the utility companies said they could not undertake the project under the current foreign exchange regime in the country, adding that the situation had made it practically impossible for them to source funds for procurement of the facilities.
They contended that the deadline applied only to unmetered multinational firms.

Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributors, Sunday Oduntan, in an interview with The Guardian, said the regulators were aware of what the body was doing as regards maximum demand customers (being the multinational companies), adding that they had recorded appreciable progress.

He explained that the association had been able to provide over three million meters since privatisation. On metering of regular customers, Odutan noted: “There is no technology that will provide over three million meters to Nigerian customers over 12 months. The regulators know about this and that is why they set February 28 ultimatum for us to provide meters for the maximum demand customers.”

But NERC’s Acting Chairman and Chief Executive Officer, Anthony Akah, assured that the commission would take measures to check exploitation through estimated billing.

SOURCE (abridged): https://punchng.com/stocks-reverse-losses-as-investors-gain-n334bn/

Stocks reverse losses as investors gain N334bn

Published February 11, 2019, Feyisayo Popoola

Stock market investors gained a total N334bn last week as the market closed on a positive note for 5 straight sessions.
Market capitalisation of equities listed on the Nigerian Stock Exchange increased from N11.424tn on Feb 2 to close at N11.758tn on Feb 8. The market earlier plunged to its lowest level in more than one and a half years on Jan 9, as market capitalisation fell below the N11tn mark from N11.72tn on Dec 31, 2018.

Analysts attributed the gains to resurgence of foreign portfolio investors. Vetiva Capital Management Limited, in its weekly market report, said the Nigerian capital market saw an increase in foreign participation since the turn of the year, beating analyst expectations of stand-offish investor sentiment pre-election.

It said the clearest indication of the gains was the resurgence of foreign inflows into the Nigerian market, indicated by a jump in FPI contribution to the importers and exporters foreign exchange window (51 per cent versus 22 per cent in the fourth quarter of last year). Analysts at Vetiva said the positivity could be attributed to both foreign and domestic factors, the change in tone from the United States’ Fed, indicating a slowdown in monetary policy normalisation, and a relatively peaceful pre-election period in Nigeria.

They said, “The equity market has benefitted from the uptrend, with total turnover since start of the year hitting N78bn, driven by renewed interest in large-cap stocks. That said, with the uncertainty of elections still looming large, market performance has remained tepid, with the All Share Index returning only +0.01 per cent year-to-date.”

The equity market traded largely mixed at the start of the year amid bargain hunting and modest negative sentiment, spurred by sustained political uncertainty. According to the analysts, despite mild resurgence in investor appetite for Nigerian equities at end of December 2018, tepid sentiment filtered into the market at the start of January with the ASI losing 6.7 per cent in the first few sessions of the year.

They said, “Nonetheless, investors taking position across key sectors, particularly the industrial goods sector (up 5.8 per cent month-on-month), translated into gains for select value counters and supported a flat return for the ASI. However, due to sizable sell-offs, a few sessions towards the end of January, the broad index however lost 2.8 per cent month-on-month.”

SOURCE: United Capital Research - Top 5 Stock Recommendations for week of 21st January 2019 (attached).

DISCLAIMER: This is the result of market analysis and not a solicitation. Due diligence is advised.

SOURCE (abridged): www.nairametrics.com

Dangote refinery to generate $11 billion per annum
By Damilare Famuyiwa - January 23, 2019.

Aliko Dangote, President of Dangote Group, has disclosed that Dangote Petroleum Refinery will create $11 billion per annum market for Nigerian crude.

Africa’s richest man said the new refinery was specifically designed for 100 per cent Nigerian crude. According to him, upon completion, the Dangote Refinery will fully meet Nigeria's daily consumption of all refined products and also have surplus for export.

Dangote made known that the refinery and petrochemical projects include:
-- world's second largest Urea plant with capacity of 3 million tons per annum;
-- largest sub-sea pipeline infrastructure in any country in the world, 1100 km, to handle three billion scuf of gas per day;
-- world scale gas treatment stations;
-- world-class petrochemical complex;
-- 480MW power plant, and
-- 500 KPTA polyethylene plant.

Would the project create jobs?

The largest single train refinery in the world, upon completion, will create no fewer than 100,000 indirect jobs, 26,716 filling stations and 129 depots in Nigeria. Already, while project construction is ongoing, 1,500 direct labourers, 100,000 on site contractors and 10,000 service providers are employed.

Upon completion, the project (which is expected to commence operations in April 2020) will also create ease of product availability and provide 26,000 trucks for transport, which will also create more jobs.

“The project will make Nigeria become the largest exporter of petrochemicals and biggest exporter of refined petroleum products in Africa. Our gas pipeline project will transport 3 billion standard cubic feet (scuf) per day of gas. I hope and pray that other Nigerians will join us in developing the country.” Dangote was quoted to have said.

Nairametrics had reported that the Central Bank of Nigeria (CBN), was set to provide a financial facility for the ongoing Refinery project, to the tune of N75 billion. Governor of the CBN, Godwin Emefiele, disclosed this in Abuja while answering questions from journalists during the just concluded Monetary Policy Committee (MPC) meeting.

While the nature of the financial facility is not exactly clear at the moment, Emefiele did mention that Dangote has already invested about 50 per cent of the $9 billion dollars needed to complete the project. The remaining 50% is expected to be sourced as loans from both local and foreign lenders.

SOURCE: Pulse Nigeria (abridged).

These 7 investment tips from Warren Buffett is exactly what you need to make money in 2019

Who better to get money advice from than one of the wealthiest people in the world? Warren Edward Buffett, chairman and CEO of Berkshire Hathaway, is currently the third richest man in the world. As of January 11, 2019, the CEO of Berkshire Hathaway is worth $81.1 billion (as estimated by Forbes).

Asides being a billionaire, he is also known as the "Oracle of Omaha" for being one of the most successful investors of all time.
Another thing he is really good at is dishing out amazing money/investment advice. Over the years, Buffet has shared numerous of these.

Here are seven of his investment tips that will help you to make money in 2019:

Rule №1: Never lose money.

Rule №2: Never forget rule №1.

What's the point of investing if all you do is lose money? Makes no sense, right? This is why Buffett warns against being frivolous or gambling. Take calculated risks instead, in order to reduce your chances of losing money.

Rule №3: Never invest in a business you cannot understand.

It’s common knowledge that Buffett always does his homework before deciding to invest in any business. As such, he invests only in companies he has thoroughly researched and understands. That way, he knows exactly what he is getting into. You should definitely do the same.

Rule №4: Never depend on a single source of income. Make investments to create a second source.

In other words, do not put all your eggs in one basket.

Rule №5: You don't need to be an expert in order to achieve satisfactory investment returns. He shared this advice in his 2013 annual letter to his company's shareholders. "Keep things simple", he adds.

Rule №6: Focus on the future productivity of the asset you are considering.

Buffett also says, "Omniscience isn't necessary; you only need to understand the actions you undertake."

Rule №7: Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important.

These last three are part of Buffet's fundamentals of investing.

Author: Inemesit Udodiong.
Source: Pulse Nigeria.

Why Access Bank’s customers are enraged on Twitter
By Emmanuel Abara Benson - January 9, 2019.

Many customers of Access Bank Plc have taken to Twitter to vent their anger over the bank’s alleged “criminality”. The Twitter storm followed a post by an aggrieved Access Bank customer, Ms Arike Martins, who called out the tier-1 lender for deducting N20 from her account after she dialed the bank’s USSD code.

Ms Martins’ January 6th post, which has since garnered over 500 retweets and 447 likes, eventually created enough buzz to aggravate the matter. Many more customers have since been complaining about the same issue, all while mentioning Access Bank’s Twitter handle:

So Access bank debits you 20# for dialing their ussd code irrespective of using it or not. This is unfortunate @accessbank_help

— Citrus Burst (@ArikeMartins_) January 6, 2019

Meanwhile, even though Access Bank has responded to the complaint and apologised for the “inconvenience”, many customers do not seem enthused by its explanation for the deduction. Ms Martins, especially, is yet to understand the reason behind the N20 debit:

I dialed *901# only and the next thing I got was a debit alert of 20#. You debited me for what exactly? What have I used your ussd to do?

— Citrus Burst (@ArikeMartins_) January 6, 2019

Here’s what the other angry customers are saying. Virtually everyone that commented on Ms Martins’ thread agreed that Access Bank is overcharging customers who dial the USSD code. Some even claimed that there is nothing else that is appealing about Access Bank, as all the good services he liked have been bastardised:

They’ve spoilt all the good things I like about AccessBank…I’m done with you guys tho✌�. pic.twitter.com/sYX7C5ICSi

— VIC3KING (@VIC3KIING) January 7, 2019

Others claimed that Access Bank is trying to recover the money it expended in the acquisition/merger with Diamond Bank Plc:

How do you want them to recover the money they use to buy diamond bank��‍♂️

— Unknown User (@mjaey_) January 7, 2019

Other people simply chose to be petty about the whole thing, talking about how they would clear all the money in their account before dialing the USSD code just so that the bank wouldn’t be able to debit them for the service:

If I had an account with them, I’ll clear it out. Then with my zero account balance I’ll dial the USSF code at least 50 times. Yeah I can be petty �

— bola badejo (@funtoarawomo) January 7, 2019

Meanwhile, others decided to drag other banks into the matter by accusing the likes of First City Monument Bank and Unity Bank Plc of being guilty of the same offence:

I used to think @UnityBankPlc was one the of best banks with fair pricing until they started charging to check balance with ussd code, Who knows very soon they'll follow in the footsteps of access bank. Worst is I wasn’t even informed of the changes.

— Rose Gold (@sesantuedoye) January 7, 2019

As expected, each of those banks quickly responded in efforts to clear their names:

Hello, we are concerned about your tweet, please. Shall we DM? #MyBankandI

— FCMB (@MyFCMB) January 7, 2019

The many comments that are pouring in on that thread simply attest to the fact that many bank customers are unhappy with the services they receive. Note that the absence of customer satisfaction is one of the most serious problems plaguing the Nigerian banking industry.

Access Bank Plc is a tier-1 lender which recorded a gross earning of N375.2 billion billion in as at Q3 2018, with a profit after tax of N62.9 billion. The bank’s stock is currently trading at N5.75 on the Nigerian Stock Exchange.

SOURCE: Nairametrics.com

SOURCE (abridged): Nairametrics.com

Where to make money in 2019
By Onome Ohwovoriole - January 9, 2019

The start of a new year is a period of stocktaking and goal setting for many. Living in a developing country like Nigeria means making money is always on the top of the agenda. Here are a few asset classes we think will do well in 2019 and are worth investing in.

A. EQUITIES
The Nigerian Stock Exchange performed poorly in 2018 closing down 17%, and has continued to decline in the new year

Investment case:
A depressed market provides a good opportunity for investors to pick stocks cheaply. Many companies are trading at a 6-month, and in some cases, 5-year lows. Foreign investors, a key player in the market, are staying on the sidelines till after the elections.

Likely risk:
While prices are cheap, they could get even cheaper. If militant attacks persist, foreign exchange liquidity could take a hit and lead to investors rushing out of the market.

Likely return:
Possible 5%-100% per annum.

Period:
6 to 12 months

Minimum amount:
N500,000

B. TREASURY BILLS
Are for anyone with idle cash for the short term, who wants to make returns in line with inflation, but doesn't have an appetite for risk.

Investment case:
TBills may not have been lucrative as they were in 2017, due to inflation rate trending down in the first half of 2018, but they gradually moved upwards as inflation began to rise. Forex pressure may force CBN to hike rates in a bid to maintain foreign investor appetite.

Likely risk:
Treasury bills have zero risk as the government is not expected to default.

Likely returns:
Possibly 10 to 15% per annum in 2019.

Period:
91 days, 182 days and 362 days.

Minimum amount:
N1 million and above; anything less is not worth it.

C. FGN BONDS
This is a government fixed income security that is offered for 2 years, 5 years, 10 years and 15 years tenors.

Investment Case:
They are one of the safest investments in the country as they are guaranteed by the government. They are recommended for anyone with loose cash who is looking to save towards the future and earn a fixed income over a long period of time. Interest is paid biannually and annually.

The Federal Government has ramped up bond issuance in the last few years and 2019 will not be any different. Rising USA interest rates may lead to a slight change in focus and increased domestic bond issuance.

2018 Performance:
Yields on bonds trended lower in the first half of 2018 before rising in tandem with higher inflation in the second half.

Likely risk:
FGN Bonds have zero risk as the government is not expected to default.

Likely returns:
Possibly 13 to 18% per annum in 2019.

Period:
Minimum 2 years though you can sell whenever you want.

Minimum amount:
Anything less than N1 million would not yield a meaningful profit.

D. CORPORATE BONDS
These are company-offered fixed income securities, for tenors of 2 years, 5 years, 10 years and 15 years.

Investment Case:
Corporate Bonds are offered by large corporations looking to borrow money from the public in exchange for periodic interest payments. They are recommended for anyone with loose cash who is looking to save towards the future and earn a fixed income over a long period of time. Interest is paid biannually and annually.

2018 Performance:
2018 saw several corporate bonds issued in the first half of the year, largely due to interest rates which trended lower, and the Federal Government’s policy of switching to foreign debt.

C and I Leasing Plc issued a N7 billion bond which was over subscribed by 33%. Tier two lender Union Bank Plc raised N13.5 billion through a bond issuance.

Likely risk:
Unlike FGN Bonds, Corporate Bonds do not have zero risk. However, the companies issuing the bonds are assigned credit ratings by rating agencies. The ratings are reviewed periodically.

Likely returns:
Possibly 15 to 18% per annum in 2019.

Period:
Between 3 months and 10 years. You can also sell whenever you want.

Minimum amount:
Anything less than N1 million would not yield meaningful profit.


E. MUTUAL FUNDS
This is basically giving your money to experienced fund managers to invest on your behalf in exchange for high returns. You also get to pay them fees for this.

Investment Case:
Mutual funds are an easy way for individuals who can't afford to invest directly in assets such as equities and fixed income to do so. They are also a good asset vehicle for passive investors (those that do not have time to monitor their holdings on a regular basis).

Mutual funds are also an easier way for domestic investors to get into small slices of assets they normally can't afford. So, rather than investing hundreds of thousands in an equity or treasury bills, they can buy units of a money market fund or equity fund.

2018 Performance:
2018 performance was largely tame, due to the equally mellow performance of the underlying assets namely stocks and treasury bills. Data from the Security and Exchange Commission reveals that Net Asset Value rose from about N440 billion as at January 5, 2018 to N650 billion as at November 2, 2018.

Likely risk:
The risk of investing in mutual funds, or any funds for that matter, is that your investments may not be managed well. This can result in very little or no returns. It can also lead to loss of capital, even though this is highly unlikely. You also get to pay the fund managers fees whether or not they make money for you.

Likely returns:
Possibly 10 to 14% per annum in 2019.

Period:
3 months to 12 months. Though you can sell whenever you want

Minimum amount:
At least N50,000 monthly.

F. REAL ESTATE
This means buying and selling land or buildings, or owning one in exchange for rental income.

Investment Case:
Investors in real estate point to the fact that real estate investment has always been a perfect hedge against inflation. They also suggest that it inherently has very strong capital appreciation over time. Some people prefer to purchase land in choice areas, hoping that in a few years’ time, property values in these locations will more than quadruple.

2018 Performance:
There is no official data on performance of real estate in the country.

Likely risk:
The risk of investing in real estate relates mainly to fraud and falling property values. Due to difficulty often encountered in verifying who owns properties, most investors end up buying real estate that are non-existent or owned by someone else who is not the seller.

Likely returns:
If you are buying a property to rent, then expect rental yields to be anything between 2 and 6% per annum. This means a property worth N100m will likely fetch you rent of N2 million per annum. It is interesting to note that property yields are often inversely proportionate to property values.

Period:
Long term

Minimum amount:
You should have at least N10 million if you intend to buy property. Plots of land can be as low as N500,000 to N1 million. Your initial capital is also dependent on the location of the property.

G. COLLECTIVE INVESTMENT SCHEMES
This is basically pooling funds together with friends and family and giving same to a professional to manage on your behalf or you manage it yourselves. For example, Investment Clubs, Cooperatives etc.

Investment Case:
Collective investment schemes are very attractive to investors who are looking for higher returns on their investments from a diverse portfolio. CIS schemes can invest in real estate, equities, bonds, cryptocurrencies, farming or any business they deem fit.

2018 Performance:
There is no official data on performance of collective investment schemes in the country.

Likely risk:
The risk of investing in CIS is that the fund managers could mismanage it and rather than get the higher returns you expected, erode the value of your original investment.

Likely returns:
Returns are typically set by the owners of the CIS. We have seen some aiming for returns as high as 25% annually. Some CIS also have lock-up periods for paying dividends, preferring to reinvest their profits compounded over a period of time.

Period;
Long term

Minimum amount:
Most CIS make monthly contributions of about N50k monthly.

H. ELECTION MERCHANDISE/SERVICE PROVIDERS
2019 being an election year means the Independent National Electoral Commission (INEC) and political parties across the country will need several services.

INEC offices will be a beehive of activities at this time, with the electoral umpire needing services such as buses to transport materials and staff. The huge crowd that tends to mill around them will also need to be transported and fed. Political parties will need several services, such as branded items, as well as posters and logistics for rallies.

Investment case:
Election spending across the country could run into tens of billions of Naira just at the Presidential level. Political parties and candidates keen on either remaining in power or taking over are less finicky about spending, as long as results can be delivered.

Outside the political circle, supporters of various candidates go out of their way to support financially and in kind. While this a one time opportunity, the potential profit made can equal that earned all through the year.

Likely risk:
Working closely with some political parties may leave some companies at the risk of post-election violence.

Likely return:
Services such as this tend to witness high patronage and little bargaining, as the cream of the crop are often fully engaged. Keen competition among political parties means services will be required all day round, and service providers can afford to charge a premium.

Period:
Short term

Minimum amount:
There is no minimum amount involved.

Finally, before you make that investment decision, make sure that whatever option you choose meets these criteria/rules:
1. I can check the value of my investment whenever I like, real time, online
2. Value of my portfolio is determined by the market and not by anyone or group of influencers
3. I can also check the value or price of the assets in my portfolio online, 24/7
4. I can liquidate the investment whenever I want and without restrictions
5. There are no middle men, except broker-facilitated trading engines.
6. The market is regulated by government or self regulated by the internet community.

NSE expels 35 stockbroking firms

By Onome Ohwovoriole - December 28, 2018

The NSE has expelled 35 stockbroking firms. The exchange disclosed this in a notice published on 28th December 2018 in The Punch newspapers. The move follows a special meeting of the National Council of the NSE held on 13th December 2018.

Here are the affected firms

Andruche Investments Plc
Angela Eccies Limited
Associated Trust Investment and Finance Limited
Beaver Securities Limited
Betraco Securities Limited
Cobal Ventures Limited
Financial Intermediaries Limited
Corporate Focus Securities Limited
GF Securities Limtied
IB Finance Limited
Intergrated Securities Limited
Integrated Ventures Nigeria Limited
Intercommerce and Consultant Limited
Investment and Capital Development Company Limited
Investment Trust Company Limited
Kamrash Securities Limited
Lakeside Asset Management Limited
M and F Investment and Securities Limited
Milestone Investment and Securities Limited
Millennium Investment Trust Limited
Moji Securities and Investment Nigeria Limited
Morgan Trust Asset Management Limited (formerly known as IMB Morgan Plc/IMB Securities Limited).
Multibank International Securities Limited
Nationwide Fiannce and International Securities Limited
Novelty Investment Limited
Optimus finance and securities Limited
Pabod Finance and Investment Company Limited
Pabofin Securities Limited
Path Securities and Investments Limited
Shiroro Finance Limited
Tassel Finance and Investment Limited
Unique Securities and Finance Services Limited
Upper Credit Securities and Investments Limited
WellsFargo Capital Limited
Westland Investment Limited.

The expulsions take immediate effect from the date of the National Council decision and all rights, incidences and privilege of membership automatically cease. The affected firms are also hereby notified by the notice.

The NSE also stated that the general public should not deal with the expelled firms in relation to transactions on the exchange.

Any investor who holds a stockbroking account in these firms should transfer their books to any active licensed stockbroking firm that is a dealing member of the exchange.

Investors or clients of these firms who may have deposited funds or securities such as share certificates are advised to go and collect such assets directly from these expelled firms.

SOURCE: https://nairametrics.com/breaking-nse-expels-35-stockbroking-firms/

SOURCE: nairametrics.com

BUY/SELL/HOLD FOR WEEK ENDING 2ND NOV 2018
Stocks on our Buy/Sell/Hold list are drawn from the top gainers and losers of the prior week, as well as various analysts’ reports.

(1). Dangote Cement Plc: HOLD
Results for the third quarter ended September 30, 2018 show that revenue increased from ₦603 billion in 2017 to ₦685 billion in 2018. Profit before tax increased from ₦220 billion in 2017 to ₦247 billion in 2018. Profit after tax increased from ₦154 billion in 2017 to ₦158 billion in 2018.
Price Information

Current Share Price: ₦200.50
Price to Earnings Ratio: 21.88X
Price to Book Ratio: 4.44
Year to Date Return: -12.83%
One Year Return: -4.59%
External View

Analysts at FBN Quest have an ‘Overperform’ rating on the stock. They have a target price of ₦283.80. This represents a 35.1% increase from the stock’s price of ₦210, as at when the report was prepared.

Analysts at United Capital have a target price of ₦258.40. This represents a 23% increase from the stock’s price of ₦210, as at when the report was prepared.
Our View

Dangote Cement is a HOLD in Nairametrics’ opinion. Year to date, the stock is down 12.83%. The stock would have declined 50% year to date, for it to warrant entry.


(2). Access Bank: HOLD
Results for the third quarter ended September 30, 2018, show that interest income increased from ₦245 billion in 2017 to ₦274 billion in 2018. Profit before tax dropped from ₦72 billion in 2017 to ₦70 billion in 2018. Profit after tax rose from ₦56.3 billion in 2017 to ₦62.9 billion in 2018.
Price Information

Current Share Price: ₦7.95
Price to Earnings ratio: 3.33X
Price to Book ratio: 0.48
Year to Date Return: -23.92%
One Year Return: 14.03%
External View

Analysts at FBNQuest have a ‘Neutral’ rating on the stock. They have a target price of ₦12.3 on it. This represents a 48.6% potential upside from the stock’s price of ₦8.30, as at when the report was prepared.

Analysts at United Capital have a Buy rating on the stock. They have a 12-month target price of ₦10.60. This represents a 27.7% upside from the stock’s price of ₦8.3 as at when the report was prepared.
Our View

Access Bank is a HOLD in our opinion. Year to date, the stock is down 23.92% and would have to decline by 50% year to date to warrant entry into the stock.

While the stock is trading at the lowest PE ratio among the FUGAZ banks, it could dip below its year low of ₦7.6 if strong bearish sentiments arise.


(3). Cutix Plc: HOLD
Results for the first quarter ended July 2018 show that revenue increased from ₦1.2 billion in 2017 to ₦1.3 billion in 2018. Profit before tax increased from ₦160 million in 2017 to ₦171 million in 2018. Profit after tax also increased from ₦104 million in 2017 to ₦111 million in 2018.
Price Information

Current Share Price: ₦2.03
Price to Earnings Ratio: 3.96X
Price to Book: 1.2
Year to date: 1%
One Year Return: 5.61%
Analyst View: None
Our View

Cutix is a HOLD in Nairametrics’ opinion. In numerical terms, the stock has been marked down for a 1 for 1 split and a ₦0.20 dividend and is trading close to its year low of ₦1.85. Investors would be better off waiting for a further decline before taking a position.

SOURCE (abridged): nairametrics.com

BUY/SELL/HOLD ANALYSIS FOR WEEK OF 26TH OCTOBER 2018
By Onome Ohwovoriole - October 19, 2018

Buy/Sell/Hold is picked from top gainers and losers of the previous week as well as various analyst reports.

(1). WEMA BANK: SELL
It reported net interest income ₦9.09 bn for Half Year ended 30 June 2018, vs ₦8.48 bn for H1-2017. PBT was ₦1.81 bn for the period, 27% increase from ₦1.43 bn for H1-2017. PAT for H1-2018 was ₦1.57 bn, vs ₦1.22 bn in H1 2017.

Price Info:
Current Share Price: ₦0.63
Price to Earnings Ratio: 9.32X
Price to Book Ratio: 0.47
Year to Date Return: 21.15%
One Year Return: 26%

External View:
Analysts at Afrinvest have a ‘Hold’ recommendation on the stock. They have a one-year target price of ₦0.57, a 1.8% upside from stock’s price of ₦0.56, as at when the report was prepared.

Our View:
Wema Bank is a SELL in Nairametrics’ opinion. It is trading at a PE ratio much higher than its tier two peers such as Fidelity Bank trading at 1.38 times earnings and Sterling Bank trading at 3.91 times earnings. It has also outperformed the All Share Index which is down 14.4% YTD. Investors would be better off selling now, then re-entering at a lower price.


(2). CAP Plc: HOLD
H1 ended June 2018 revenue increased from ₦3.4 bn in 2017 to ₦3.8 billion in 2018. PBT also grew from ₦1 bn in 2017 to ₦1.3 bn in 2018. PAT rose from ₦696 mn in 2017 to ₦917 mn in 2018.

Price Info:
Current Share Price: ₦31
Price to Earnings Ratio: 14.4X
Price to Book Ratio: 9.6
Year to Date Return: -8.82%
One Year Return: 0.70%

External View: None

Our View:
CAP Plc is a HOLD in Nairametrics’ opinion. While the stock is trading 22.5% below its year high of ₦40, possibility of further sharp decline is low due to the Illiquid nature of the stock.


(3). CUTIX Plc: HOLD
Q1 ended July 2018 revenue increased from ₦1.2 bn in 2017 to ₦1.3 bn in 2018. PBT increased from ₦160 mn in 2017 to ₦171 mn in 2018. PAT increased from ₦104 mn in 2017 to ₦111 mn in 2018.

Price Info:
Current Share Price: ₦2.20
Price to Earnings Ratio: 4.29X
Price to Book Ratio: 1.30
Year to Date Return: 9.45%
One Year Return: 10.81%

External View: None

Our View:
Cutix Plc is a HOLD in Nairametrics’ opinion. This week, the stock was marked down for a one for one bonus and a ₦0.20 dividend. The stock has since rebounded, gaining in the last two trading sessions.


(4). OKOMU OIL: SELL
H1 ended June 2018 revenue increased from ₦12.4 bn in 2017 to ₦12.9 bn in 2018. PBT dropped from ₦7.8 bn in 2017 to ₦6.9 bn in 2018. PAT also dropped from ₦6.2 bn in 2017 to ₦5.9 bn in 2018.

Price Info:
Current Share Price: ₦79.8
Price to Earnings Ratio: 8.59X
Price to Book Ratio: 2.75
Year to Date Return: 17.89%
One Year Return: 27.23%

External View:
Analysts at FBN Quest have an ‘Underperform’ rating on the stock. They have a target price of ₦88, indicating potential upside of 11.3% from the stock’s price of ₦79.8 as at when the report was prepared.

Analysts at United Capital have a BUY rating on the stock. They have a target price of ₦99.8, indicating potential upside of 25% from ₦79.8 as at when the report was prepared.

Our View:
Okomu Oil is a SELL in our opinion, as the stock is trading at a PE ratio of nearly 3 times its peer, Presco Plc, which is trading at 2.2 times earnings.

SOURCE: trwstockbrokers.
(COMMENT - As always, due diligence is advised, before taking investment decisions).

UBA PLC HALF-YEAR STOCK ANALYSIS

TRW FUNDAMENTAL AND TECHNICAL ANALYSIS OF THE NIGERIAN STOCK MARKET
Posted by TRW STOCKBROKERS LTD on October 15, 2018

Company: United Bank For Africa Plc
Rating: Buy
Current Market Price:N8.25
Year High: N13.50
Year Low: N7.00
Fair Value: N19.70
Conservative Expected Q3-EPS: N1.90

INTRODUCTION:
This report reviews the half-year financial performance of United Bank for Africa (UBA). But valuation was achieved through full year performance, from where projections were made and appropriate techniques adopted.

We maintain that analyst influence might be reflected in the valuation and projections accordingly. The next financial statistics currently awaited by investors from the financial institution is the nine-month performance. History reveals that the bank usually releases its third quarter earnings in the second week of October. For example, release dates for the past three financial years are: October 16, 11, and 15 in 2017, 2016 and 2015 respectively. Based upon this, we expect same between October 8 and 19, 2018. Please note that interim cash dividend trends have remained same (N0.20 per share) for the past three years, although slight variations were noticed in the payout ratio. We are of the opinion that such variations are negligible.

UBA PLC DATA:
Bourse :Nigerian Stock Exchange
Code Name: UBA
Sector: FINANCIAL SERVICES
Market Classification: Premium Board
Nature of Business: Commercial Banking
Date of Incorporation: February 23rd 1961
Date Listed: March 31st 1970
End of Accounting Year: 31st December
Website: www.ubagroup.com
Registrar: AFRICA PRUDENTIAL REGISTRARS
Auditor: PricewaterhouseCoopers
Share Price@Relsd (N): 8.05
Earnings per Share: 1.28
Intrinsic Value(N): 19.70
Shares Outstanding: 34,199,421,368
Market Capitalisation: 275,305,342,012

COMPANY FIGURES:
Gross Earnings for the half year improved over the corresponding year by 15.80%, from N222.71 billion to N257.91 billion.
Interest Income stood above that of similar period of 2017 by 20.87%; at N187.29 billion vs previous N154.95 billion. Interest Expense increased at a higher momentum, compared to the rate of income/ gross earnings growth, rising from N53.57 billion to N76.21 billion, representing a difference of 42.26%

Having considered all expenses and incomes, N58.14 billion was reported as Profit before Tax for the period, which is only 1.06% above the N57.53 billion reported in the same period of 2017. After deducting income tax expense, the financial institution reported N43.79 billion as profit for the period vs N42.33 billion earned in 2017 half-year. In other words, profit only improved by 3.43%. Total Comprehensive Income for the period stood 42.72% below 2017 half year. A total of N30.48 billion was reported, compared to N53.21 billion. Retained Earnings grew to N165.71 billion from N149.46 billion, a 10.87% improvement within the two periods under comparison. Total Assets was valued at N4.26 trillion, a 15.65% improvement over the period.

Total Liabilities were N3.77 trillion vs N3.20 trill in 2017. Total Deposits received for the period stood at N3.03 trillion, compared to N2.58 trillion in the corresponding half-year of 2017, a difference of 17.42%. Meanwhile, Loan and Advances to customers dropped marginally against the previous half-year (currently N1.55 trillion vs N1.57 trillion last year). Net Assets, on the other hand improved by a marginal 2.72% in the period under consideration.

UBA PLC STATEMENT:
Financial Positions 2018(Mill) 2017(Mill) % CGN
Cash & Cash Equiv. with CBN 1,031,779 763,224 35.19
Gross Earnings 257,918 222,718 15.80
Interest Income 187,294 154,954 20.87
Interest Expenses 76,218 53,575 42.26
PBT 58,140 57,531 1.06
PAT 43,792 42,339 3.43
Total comp Income 30,481 53,216 -42.72
Retained Earnings 165,712 149,469 10.87
Total Assets 4,267,653 3,690,289 15.65
Total Liabilities 3,771,401 3,207,158 17.59
Total Deposits 3,039,230 2,588,247 17.42
Loans & Advances 1,553,976 1,571,842 -1.14
Net Assets 496,252 483,131 2.72

VOLATILITY RATIOS:
Estimated Beta Value of UBA Plc stood above both the market and industry Average. This confirmed the volatility/patronage of its shares on the floor of the exchange. Although, this is almost irrelevant, since we analyze a financial institution whose major business is to collect deposits (mostly reported under liability). We estimate Debt to Equity ratio as 104.21%, well above the 58.79% industry average.

Volatility UBA PLC INDUSTRY
Beta-β 1.68 1.51
Debt to Equity 104.21 58.79

PROFITABILITY RATIOS:
Interest Expense to Gross Earnings is presently estimated at 29.55%, which is 22.85% above the 24.06% estimated in the 2017 half-year result. PBT Margin stood at 22.54%, as against 25.83% last year, representing a 12.73% drop. Similarly, Profit margin dropped against prior year’s. We have estimated 16.98% margin from Gross Earnings, compared to the 19.01% previous estimate. Return on Average Equity is now 8.82%, compared to 8.76% returns achieved in the first six months of 2017. Return on Average Assets differs by 10.56%, moving from 1.15% to 1.03%.

Profitability Ratios 2018 2017 %CHG
Interest Expense to Gross Earnings 29.55% 24.06% 22.85%
PBT Margin 22.54% 25.83% -12.73%
Profit Margin 16.98% 19.01% -10.68%
RoAE 8.82% 8.76% 0.70%
RoAA 1.03% 1.15% -10.56%

EFFICIENCY RATIOS:
Gross Earnings to Total Assets was flat within the two periods compared. Gross Earnings to Equity is now 51.97%, vs 46.10% estimated in the 2017 half-year. Financial Leverage is 8.60x as against 7.64x. This is an estimate of the number of times the total assets replicates the equity, meaning that the ratio got better over the review period. It was also established that 51.13% of Total Deposit was given out as Loan and Advances during the period, 15.81% lower than the 60.73% during the first six months of 2017. Meanwhile, Loan and Advances is 36.41% of Total Assets, 14.51% lower than the 42.59% of last half year. This shows a controlled/reduced risk compared to 2017.

Efficiency Ratio 2018 2017 %CHG
Gross Earnings to Total Assets 6.04% 6.04% 0.14%
Gross Earnings to Equity 51.97% 46.10% 12.74%
Financial Leverage 8.60 7.64 12.59%
Loan to Deposit 51.13% 60.73% -15.81%
Loan&Adv to Total Assets 36.41% 42.59% -14.51%

INVESTMENT RATIOS:
Snce shares outstanding remained constant during the two periods under consideration, the estimated amount earned per units of UBA shares is N1.28, which is 3.43% above the N1.24 earned last year. P/E Ratio for the period is 1.57x, vs 1.96x in 2017. Book Value is N14.51 per share, fairly same as N14.13 last year. This confirms that the company is currently undervalued. Also confirming this fact is the Price to Book Value that is estimated below unity, proving low price against Book Value. Operating Expenses for the period is currently 29.55%, this is 22.85% above the 24.06% of 2017 half year.

Investment Ratios 2018 2017 %CHG
EPS 1.28 1.24 3.43%
TCI/SHARE 0.89 1.56 -42.72%
Earnings Yield 15.91% 12.75% 24.76%
P/E-RATIO 1.57 1.96 -19.85%
P/BV 0.55 0.69 -19.29%
BVPS 14.51 14.13 2.72%
Opex Margin 29.55% 24.06% 22.85%

DIVIDEND
Dividend/Share (N) 0.20 0.20 0.00%
Payout Ratio 15.62% 16.16% -3.32%
Sustainable Growth Rate 7.45% 7.35% 1.34%

VALUATION:
As noted above, our valuation explored few full years’ financials prior, projected appropriately based on our growth expectations. Thus, we have placed the price of each UBA share at N19.70. Please note that our conservative earnings expectation for the expected nine months ended September 30th, 2018 is N1.90. This is about 6.74% growth above the previous third quarter earnings (N1.78) and 48.43% improvement from the half year earnings.

SOURCE (abridged): https://nairametrics.com/buy-sell-hold-week-to-date-october-19-2018/

Buy/Sell/Hold is picked from top gainers and losers of the previous week, and various analysts’ reports.

(1). Fidelity Bank Plc: HOLD
Results for half year ended June 2018 show gross earnings increased from N85.8bn in 2017 to N88.9bn in 2018. Profit Before tax increased from N10.2bn in 2017 to N13.1bn in 2018. Profit after tax also increased from N9bn in 2017 to N11.8bn in 2018.

Price Info:
Current Share Price: N1.93
Price to Earnings Ratio: 1.42X
Price to Book Ratio: 0.30
Year to Date Return: -21.54%
One Year Return: 45.21%

External View: Analysts at United Capital have a BUY recommendation on the stock, with target price N2.80, representing potential upside 54.7% from the price of N1.80 as at when the report was prepared.

Analysts at FBNQuest have a ‘Neutral’ rating on the stock with target price N3.00, representing potential upside 75% from price of N1.90 as at when the report was prepared.

Our View: Fidelity Bank is a HOLD in Nairametrics’ opinion. While the stock is trading quite cheaply, further decline is possible in view of current market sentiment. Investors would be better off with further 50% price decline before taking position.


(2). Stanbic IBTC: HOLD
Results for HY ended June 2018 show gross earnings increased from N97.1bn in 2017 to N114bn in 2018. PBT jumped from N29.1bn in 2017 to N50bn in 2018. PAT also increased from N24.1bn in 2017 to N43bn in 2018.

Price Info:
Current Share Price: N45
P/E Ratio: 6.97X
P/B Ratio: 2.18
YTD Return: 8.43%
One Year Return: 15.86%

External View: None

Our View: Stanbic IBTC is a HOLD in our opinion, as it is up 8.43% YTD. Investors would be better off waiting for a dip in price before taking position.


(3). Cadbury Nigeria Plc: SELL
Results for HY ended June 2018 show revenue increased from N16.2bn in 2017 to N17.5bn in 2018. Loss before tax fell from N766 million in 2017 to N423 million in 2018.

Price info:
Current Share Price: N10.30
P/E Ratio: 30.59X
P/B Ratio: 1.70
YTD Return: – 34.27%
One year return: 0.31%

External View: None

Our View: Cadbury is a SELL in Nairametrics’ opinion. Not only is the stock trading at over two times average PE ratio on the NSE, but H1 2018 results are also poor and may be an indication of poor full-year results. Poor fundamentals in the last few years have led to most analysts removing it from their coverage.


(4). Newrest ASL Nigeria Ltd: HOLD
Results for HY ended June 2018 show revenue dropped from N2.7bn in 2017 to N2.5bn in 2018. However, PBT jumped from N197 million in 2017 to N631 million in 2018.

Price Info:
Current Share Price: N6.00
P/E Ratio: 3.35X
YTD Return: 0.84%
One Year Return: -16.80%

External View: None

Our View: Newrest ASL is a HOLD in Nairametrics’ opinion. It is trading at a year high of N6.00. Investors would be better off waiting for a decline before taking position.

The move to divert cargo to other ports across the country received a major boost recently when the Dangote Oil Refinery jetty located at the Lekki Free Trade Zone, Lagos received its first ever ship call.

The ship named “BBC Naples” berthed at the new jetty in the evening of Sunday 23rd Sept 2018 to deliver essential equipment for ongoing construction work at the Dangote Refinery. The 132 metre long, 9,755 tonnes general cargo ship is operated by BB Chartering, while Hull Blyth Nigeria Limited is the agent. The ship, which arrived the Dangote Refinery jetty at 18:18 hours on Sunday after a 40-day voyage, loaded its cargoes for the Dangote Oil Refinery at Jebel Ali, United Arab Emirates and Richards Bay, South Africa.

Commenting on the ship call, the Managing Director of BBC Chartering Mideast Limited, Mr Denis Bandura, said: “Today our vessel ‘BBC Naples’ arrived at the Dangote Lekki Jetty. It is the maiden call at the newly constructed jetty, and BBC Chartering is very proud to have partnered with Dangote Group to make this milestone a reality. The vessel is delivering essential equipment for the construction of Dangote Oil Refinery, and BBC Chartering remains committed to provide its full capacity at a strategic level to ensure the successful delivery of this very important project.”

The Managing Director of Hull Blyth, Mr. Christian Holm also expressed delight at the berthing of the ship. He said: “Hull Blyth is honored to oversee the first vessel – ‘BBC Naples’ – at the Dangote Lekki Jetty. The unrelenting effort of Dangote Group, Nigerian Ports Authority, and BBC Chartering has made the opening of the jetty a reality, and it starts a new important phase in the construction of the Dangote Oil Refinery.

“Hull Blyth has a long history of logistic support to Dangote Group, and the oil refinery project has utmost priority as it will provide decisive benefit to Nigeria for many years to come.”

With a projected capacity of 650,000 barrels per day, the Dangote Refinery is expected to be the world’s biggest single-train facility upon completion in 2020. The multi-billion dollar refinery will produce various petroleum products including Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene.

The refinery project, which is expected to end Nigeria’s dependence on imported petroleum products, is projected to generate an estimated 9,500 direct and 25,000 indirect jobs. The President of Dangote Group, Alhaji Aliko Dangote, recently said he had mobilized more than $4.5bn in debt financing for the project.

SOURCE: https://www.thisdaylive.com/index.php/2018/09/26/first-ship-berths-at-dangote-refinery-jetty/?amp

PRE-MARKET COVERAGE OF THE NIGERIAN STOCK EXCHANGE (NSE) ON 27 SEPT 2018:

Pre market runs from 9.30 to 10am daily on the NSE. During this period, investors can place orders but no trade occurs. Figures will take the format Bid(k) vs Offer(k). Bid represents the amount of stocks people want to buy.

Offer is the number of stocks people wish to sell. K represents thousands. Net bid means there are no offers for a stock. Net offer means there are no buyers for a stock as at pre market. Bid vs Offer figures are subject to change all through the day.

--Access Bank 3k bid vs 13k offered
--Dangote Cement 500 units bid vs 1600 units offered
--FBNH 1.4 million bid vs 50k offered
--Seplat 150 units bid vs 851 units offered
--UBA Plc 379k bid vs 200k offered
--Wapco 100 units bid vs 18k offered
--Zenith Bank 2k bid vs 61k offered
--Dangote Flour 68 units bid vs 13k offered
--Dangote Sugar 5k bid vs 35k offered
--Guaranty Trust Bank 2 units bid vs 1k offered
--Guinness 1k bid vs 1k offered
--International Breweries 5k net offer
--Nigerian Breweries 7k bid vs 4k offered
--PZ Cussons Nigeria 20k bid vs 1k offered
--Unilever Nigeria 1k bid vs 1k offered

SOURCE: Nairametrics.

SOURCE: https://nairametrics.com/what-to-do-if-you-are-stuck-with-skye-bank-shares/

By Onome Ohwovoriole - Sept 25, 2018.

Shareholders in the defunct Skye Bank may have lost roughly N10.68 billion due to Friday’s revocation of its operating licence by the Central Bank of Nigeria (CBN). Skye Bank closed at N0.77 on Friday and had a total of 13.88 billion outstanding shares. The bank has a market capitalisation of about N10.68 billion. It has not released any audited accounts for 2 years now.

YEAR TO DATE (YTD) PERFORMANCE
The stock opened trading this year at N0.52 and closed N0.77 on Friday 21st Sept 2018. Investors that bought at start of the year and held till Friday, were up 48%. It was also the 2nd best performing banking stock ytd behind Unity Bank which is up 81%. Skye Bank peaked at N1.61 per share on 31st January this year. Investors at that point would have been up by 209% ytd.

LAST 5 YEARS TELL A DIFFERENT STORY
For investors that bought 5 years ago, they were largely in the red. From N3.90, per share, the stock consistently dropped to N0.77 as at Friday. In essence, their investments lost a whopping 80.2%. Ten thousand shares bought in 2009 valued at N39,000, would have been worth N7,700 as at yesterday.

PUBLIC OFFER WOES ARE WORSE
Investors that bought during its last public offer in 2008 and held till date, have even larger tales of woe. The public offer was priced at N14 per share. 10,000 shares bought at N140,000 would be valued at N7,700 as at yesterday. In essence, 94.5% of their holdings was wiped out.

WHAT TO DO IF YOU OWN THE SHARES?
The Nigerian Stock Exchange announced that it has placed the shares of the company on technical suspension meaning it cannot be sold or bought till further notice. For investors who own this stock, it is likely they may have lost their entire investment in the bank. CBN has yanked off its license, moved its assets and liabilitities to another bank, and transferred its board and employees to Polaris Bank.

Legal pundits suggest shareholders of the bank may have to seek legal redress, or they may not get anything from the bank. This is because shareholders' funds are assumed to have been wiped out following the injection of funds by the CBN. Retail investors who bought the shares of the company before Friday, will have to wait till the sale of Polaris bank is consummated.

In the meanwhile, make sure you keep evidence of your purchase of the stock. You may also contact the registrars of the company to confirm status of your holdings and that you be notified if there is any new information. You should also set Google alerts which will help you monitor any new information about Skye Bank and Polaris Bank.

WILL OTEDOLA MYTHOLOGY HAUNT THE APC IN LAGOS STATE?

BY DELE MOMODU

Fellow Nigerians, if you are under the age of 30, you may not readily understand what I have called the “Otedola mythology” in this heading. Let me, therefore, take little time to explain, or describe, the meaning.

Otedola is a Yoruba name that translates into English as "conspiracy turns to fortune". What was expected to be a negative development favoured someone, inadvertently. This was the case of Sir Michael Otedola, father of billionaire oil baron, Femi, whose name is sometimes transmuted and translated, by his acolytes, as Otedollar – someone who prints US Dollar, because of his fabled wealth.

Femi is credited with dragging his father into politics. According to available information, Femi had a brainwave one day and suggested to his dad to go into politics and contest for the seat of Governor of Lagos State because he saw an opportunity for him given the state of affairs at the time.

Sir Michael Otedola, who was a revered elder of the National Republican Party, however, did not seem to have any chance of winning. One, age was not on his side. He was born in 1926 and was 66 years old when he entered the race in 1991. By the standards of those days, he was considered too old – those clamouring that the young should take over the reins of power in Nigeria, under the ‘Not too young to Rule Platform – should take a view from the politics of that era which was meant to be for the younger generation with the tacit support of the older generation like Sir Michael. Two, he was never known to be an accomplished politician. Three, he was a man of modest means who could not afford the stupendous funding required. Four, he had two formidable youthful politicians, Dapo Sarumi and Femi Agbalajobi to contend with, and there was no way he was going to defeat either of the two on any regular day.

But man proposes and God disposes. Agbalajobi and Sarumi both targeted the Social Democratic Party (SDP) ticket. Agbalajobi had the avuncular support of former Governor Alhaji Lateef Jakande who was like the Alpha and Omega of Lagos State at the time, but he was resisted. No one wanted an imposition and Jakande was challenged by Dapo Sarumi and his group of newbreed politicians. Both of them fought gallantly for the ticket and neither was ready to step down for the other. The stalemate became so rough that their party had to step in by disqualifying both of them. Another popular young politician, Yomi Edu was then drafted in to replace the implacable duo. They were livid, and they and their supporters decided to sabotage their party.

In the other party was Sir Michael Otedola who had won the National Republican Party ticket. As noted earlier, the bitterness and lack of cohesion in SDP was so bad that those who lost out in the party decided to join forces with the NRC candidate against their own man, Yomi Edu.

As to be expected, a house divided against itself would naturally collapse. The underdog, Sir Michael Otedola thus gathered strength and momentum and the unthinkable soon happened. Sir Michael won the race, to the shock of most onlookers. Sir Michael reigned from January 1992 to November 1993 when General Sani Abacha struck and truncated that democratic government. The rest is history.

History seems to have a knack of repeating itself and this tale was reawakened early this week by the intractable squabbles in the same Lagos State, this time by a party in power, only as a result of a slender lead. There had been rumours that the political godfather in Lagos, Asiwaju Bola Ahmed Tinubu, and his political godson, the Governor of Lagos State, Akinwunmi Ambode, were at loggerheads.

Many had hoped that it was a joke or one of those usual beer parlour rumours. And if it was for real, they had hoped it would be resolved eventually in favour of Ambode, as it was in the case of Ambode’s erstwhile predecessor – Tinubu versus Governor Babatunde Raji Fashola when Fashola sought a second term in office. I wrote an article at that time advising both of them to join hands together or risk losing Lagos to their opponents because, according to me, their marriage was made and consummated in heaven.

Somehow that ugly situation was reportedly amicably settled then. However, later events were to demonstrate that any resolution had merely been on the surface as Tinubu and Fashola now appear to be intractable foes. Their situation is akin to what the Yoruba’s will describe as “ara o ro okun ara o ro adie” (the hen perches on a rope but no reprieve for the hen or the rope).

It is therefore very strange that given the antecedents, and the subsequent events, the same situation has come reincarnated with bigger force. And it is very unfortunate. It is not immediately clear what brought about the current imbroglio which if not properly managed could spell doom and total disaster for the APC in Lagos, with a spiralling effect at the Federal level.

Everyone was relieved when the hardworking and visionary Governor of Lagos State, Akinwunmi Ambode, picked his form and seemed to have no challenger whatsoever in his party. Prior to that, the Governor had reached out to many stakeholders, including captains of industries from the State and elsewhere. One of such Lagosians was the billionaire businessman, Femi Otedola who coincidentally hails from Epe, the same town as Governor Ambode.

Otedola apparently has his gaze concentrated on becoming Governor of Lagos State, like his dad, sometime in the future. Indeed, Otedola had mentioned privately to his inner circle of friends that he would like to contest in 2023. Why not run in 2019? Otedola said he had given his word to Governor Ambode not to run against him but, with a caveat, that if he fails to secure his party ticket he would run against any other APC candidate in 2019.

Anyway, back to Ambode, Tinubu and the 2019 APC ticket. Our relief and joy were however short-lived and dramatically and drastically cut short. The next day, two other giants of the APC stepped out of the wings to challenge Governor Ambode for the APC ticket. The first of the shockwaves that rippled through APC and Lagos State was the spectacular orchestrated declaration of Babajide Sanwo-olu, erstwhile Commissioner in the Tinubu and Fashola administrations before being appointed as Managing Director of Lagos State Property Development Corporation in May 2016 by Governor Ambode, the very man he seeks to unceremoniously unseat.

Sanwo-olu is a well-known veritable disciple of Asiwaju. He would not dare to make this opening gambit, unless he had the consent of Asiwaju to go for it. This was what made people believe that there was truly a rift of monumental proportions. Almost simultaneously, a three-way split loomed in the APC as Dr. Obafemi Hamzat announced that he was also running for the prized position of Governor of Lagos State.

Hamzat, a prodigious Information Technology talent was Commissioner of Science and Technology from the Tinubu administration in 2005 to the end of the first Fashola Administration in 2011. In 2011, he became Commissioner for Works and Infrastructure under Fashola, in his second term, a post he held until the end of Fashola’s tenure in 2015. Since Fashola moved to the Federal level as Minister of Power, Works and Housing, Hamzat has joined him as an Adviser. As to be expected Hamzat is a strong loyalist of Fashola who is widely known to be disaffected with Tinubu despite the appearances that they keep up in public.

It is rumoured that there is a clique of current Federal Government Ministers and APC Governors who are intent on challenging the supremacy of Asiwaju Tinubu in South-West Nigeria and are intent on taking him down a peg or two. They do not support the assertion that he is leader of the Yorubas.

Hamzat’s announcement that he will be running as an APC candidate for Governor of Lagos State appears to support legend that Tinubu has major problems on his hands even as he seeks to topple and remove Ambode from the Lagos State Government House. Tinubu appears to be facing a battle on two flanks from Ambode and Hamzat which is causing consternation not only in the Tinubu camp, but also in the ranks of the APC stalwarts.

This unnecessary and unimagined debacle was what led to the hoopla this week when news broke that Otedola had accepted to fly the flag of PDP since it had become obvious that Tinubu has dumped his beloved godson and there was a double schism in the APC.

The emergence of a colossal gladiator like Otedola raises the stakes in the Lagos political conundrum several notches higher. It is now not simply a case of inter-party feuding, but also one of strong intra-party contest that may break the otherwise seemingly unbreakable back of APC’s camel I have spoken to Otedola who confirmed that he has reached agreement with several key members of Lagos PDP to offer him the PDP gubernatorial ticket and he has accepted in principle whilst awaiting the outcome of the APC primaries which will take place before the PDP primaries.

However, he said he was not in a hurry to make any open declaration. He would keep his options open because there were conflicting reports of Ambode and Tinubu reconciling their differences, and he would not break his promise to his kinsman, Ambode as a matter of honour and integrity.

The news of Otedola’s interest in running against the apparently Tinubu anointed APC candidate, Babajide Sanwo-olu, ignited fire, and went viral everywhere. The APC National Secretariat was said to be critically worried and troubled by what raises the spectre of history repeating itself, if Otedola contests and wins the election as a result of APC fighting a corrosive war of attrition. Otedola has all the attributes that his father lacked which makes him a very formidable opposition. He is also well loved and respected in Lagos State. The populace know that he is wealthy enough not to dip his hand into the Treasury as most politicians are wont to do.

He has also promised to recreate Lagos State into an international cosmopolitan city which will rival similar cities in the world. His vision is expansive. He does not see any reason why the Lagos landscape should not be filled with skyscrapers and other scenic attractions as other famous municipalities of the world. That Otedola may well have his wish and contest on this occasion is becoming ominous. Activities from the Tinubu-Sanwo-olu camp appear unrelenting. As at the time of writing this article, Sanwo-olu is going on with his plans as scheduled. He has announced plans to have a mega rally on Sunday, September 16, 2018. It is believed that all efforts to placate Tinubu may have failed abysmally, the reason for Sanwo-olu’s renewed confidence in going ahead with his campaign.

Governor Ambode is clearly in a big dilemma. It is not clear, and very doubtful, that he can win the APC ticket, on his own without serious intervention from Tinubu. Despite the overwhelming deluge of support from many political parties, it is not certain if the Governor would want to risk decamping to any other party, especially PDP, and if he would be able to win enough votes to retain his exalted position in any other party. Indeed, such a decision by Ambode would significantly play into the hands of PDP which needs APC to lose just a few hundred votes to lose the next election based on the outcome of the 2015 gubernatorial elections.

Lagos is currently in limbo and floating while awaiting the decision of the warriors and their godfathers and sponsors. The possibility of another Sir Michael Otedola scenario should not be discountenanced or totally ruled out. Otedola is not joking about his ambition at all. As he has indicated to me, he has his plans for an election well mapped out and he is ready to hit the ground running, whenever the coast becomes clearer, and it is evident that Ambode is totally out in the cold and has been hung out to dry.

But even if Otedola decides to chicken out, there are big candidates hovering in the wings in the opposition party. They include former PDP candidate, Jimi Agbaje, who has tried but lost twice. He is a fine gentleman with the discipline and diligence to continue with the good works of the Ambode era, whilst charting his own course. There is also a member of the Council of Elders, Deji Doherty, a relatively young and popular businessman and hospitality giant who has wanted to be governor for some time now. APC itself has Femi Hamzat, son of a great political family, eyeing the seat of Governor of Lagos. No one should write off any of these fine distinguished and hard-working men. They all come with fantastic resume. If the Governor is totally frustrated, the game may open up and become an all-comers affair.

The world is watching how this game would end. Good luck to Lagos and Lagosians.

SOURCE: https://www.thisdaylive.com/index.php/2018/09/15/will-otedola-mythology-haunt-the-apc-in-lagos-state/?amp

SOURCE: http://thenationonlineng.net/mtn-repatriation-nse-reviews-stanbic-ibtc-diamond-bank-governance/

MTN repatriation: NSE reviews Stanbic IBTC, Diamond Bank governance

The Nigerian Stock Exchange (NSE) and other stakeholders have launched an engagement process to review compliance of Stanbic IBTC Holdings Plc and Diamond Bank Plc to high-level corporate governance standards expected of top-rated quoted companies. The review was sequel to fines imposed on Stanbic IBTC Bank and Diamond Bank by the Central Bank of Nigeria (CBN) for complicity in alleged illegal repatriation of $8.1 billion by MTN Nigeria Communications Limited.

Stanbic IBTC Holdings Plc (the parent company of Stanbic IBTC Bank) and Diamond Bank were among 35 companies that were awarded the Corporate Governance Rating System (CGRS) certification in February 2018. Introduced into the capital market in 2012 and launched in 2014, the CGRS is a joint initiative between the NSE and the Convention on Business Integrity (CBi).

The CGRS was designed to rate quoted companies and their directors on corporate governance practices. The CGRS was the underlying variable for the creation of the NSE Corporate Governance Index (NSE CG Index). The NSE CG Index declined by 1.32 per cent yesterday, almost a triple of the overall average decline of 0.48 per cent for the entire equities market.

The Steering Board of the CGRS yesterday stated that it had taken note of the fines and controversies around the alleged illegal capital repatriation of $8.1billion for MTN Nigeria Communications Limited by four banks, including Stanbic IBTC Bank and Diamond Bank. Executive Director, Regulation, Nigerian Stock Exchange (NSE), Tinuade Awe, is the chairman of the CGRS Steering Board.

The board noted that “regulatory compliance formed a major part of the requirement for the award of the CGRS certification” and as such it has launched an engagement process with the affected banks.

“Consequently, the Steering Board is engaging with Stanbic IBTC Holdings Plc and Diamond Bank Plc on this matter, and will inform the investing public on the outcome of its engagement at a future date,” CGRS stated.

To be certified, the CGRS rates quoted companies through three processes including independent verification; self – assessment by the company; certification of director awareness of their fiduciary duties; and a corporate integrity assessment where perceptions of actual company behaviour are sought from internal and external stakeholders. A score of 70 percent and above for both the company and individual directors is required for certification.

At the award ceremony for the CGRS certification, Awe had affirmed that the companies successfully passed the rating test, having scored the required pass mark of 70 per cent. She pointed out that the aim of the CGRS rating was to improve the level of corporate governance of listed companies noting that the rating is a developmental index that will help to boost the company’s image and better cooperation when it needs to transact with foreign partners.

She explained that the self assessment is in three stages which is corporate compliance with its component indicator covering five categories
--business ethics and anti corruption
--internal and external audit and control
--shareholder and stakeholder rights
--board structure and responsibilities
--transparency and disclosure.

HOW FAR CAN THE NIGERIAN STOCK MARKET FALL?

SOURCE: https://brandspurng.com/how-far-can-the-nigerian-stock-market-fall/

The Nigerian Stock Market began 2018 on a high, recording over 17% in the first few weeks. This was on the back of strong optimism of sustained recovery and growth which was expected in global economies. For Nigeria in particular, many variables were in our favours such as Rising Crude Oil prices, Accruing FX reserves and relatively stable FX.

Despite these favourable conditions which still exist, Year to date (YTD), the Stock Market has performed poorly recording a negative. The first reason for this decline was the US double rate hike in March and June. The second is the political risk associated with the upcoming Nigerian elections in 2019. All these have resulted in foreign portfolio investors exiting the country.

Considering the bearish state of the market, most investors have become very cautious. According to Warren Buffet, a seasoned investor who is among the Top 10 richest men in the world, this is the time to start investing in stocks. It is a known fact that the best time to invest is when stock prices are declining. But now the question is, how far will the Nigerian Stock Market fall?

For now, it is almost uncertain to say when the market will stop its bearish trend and start its recovery, due to the many uncertainties that exist and are predicted to come globally and domestically. Some of these uncertainties include crude oil price fluctuations, trade war initiated by the US, expected increase in US rates, Nigeria’s Elections, etc.

However, we advise that investors can begin investing in stocks bit by bit, especially in those with strong fundamentals. Some of these stocks have declined by over 50% which makes them very attractive. Spreading your investment in such stocks at different low prices reduces your average entry price, thereby increasing your profit potential once it rebounds.

In 2019, our expectation for the performance of the stock market is bullish. We believe as the political situation of the country gets clearer and shows signs of stability, the market will experience a rebound. In addition to this, we believe crude oil prices within this period will not fall below $60 which is positive for the country.

Attached are the changes in prices of selected stocks so far in the year….

GTI CAPITAL RESEARCH

Dear honourable members of the Nairaland NSEMPA Forum, as expected, the Nigerian Stock Market is still trending downwards.

Has it bottomed out? Clearly, the answer is no!

While waiting for the appropriate entry points for your choice stocks, you may want to consider putting your idle funds into Nigerian Treasury Bills (secondary market) for short tenors - especially because the NTB rates are now trending upwards:

https://www.businesspost.ng/2018/09/03/n295b-t-bills-mature-this-week-as-cbn-woos-investors-with-higher-rates/

COMMENTARY ON CBN's $8.1B REPATRIATION ORDER TO MTN
SOURCE: www.proshareng.com (abridged)

Perspective/Commentary – Thread by @yinkanubi

This is a thread to help people understand issues surrounding the recent fine imposed by CBN on 4 banks and the request they should refund $8.1 Billion in "illegally repatriated" dividends.

This issue first come into the open in Sept 2016 when Senator Dino raised a motion accusing MTN of illegal repatriation of $13.92 billion to its parent company through 4 banks between 2006 - 2016 with help of the Minister of Industry, Trade and Investment, Okey Enelamah.

Senate then mandated its Committee on Banking, Insurance and other Financial Institutions to carry out a holistic investigation on compliance with the Foreign Exchange (monitoring and miscellaneous) Act by MTN Nigeria & Others.

Minister of Communication Mr Adebayo Shittu warned Senate to Protect MTN and that the action could scare away investors, while Minister of Industry & Trade Dr. Okey Enelamah dismissed the allegations as baseless since he did not own any shares in MTN as alleged.

In one of the interesting testimonies, CEO of MTN NG, Mr. Moolman admitted it failed to comply with the law requiring issuance of CCI within 24hrs of conversion because it was a mere “administrative requirement”. I'll come to this later.

In Oct 2016, it was further reported (or rumored) that CBN had ordered stop of dividend payout to MTN NG. It seems this was the first hint of an investigation by CBN on this particular issue.

In Nov 2017, Senate eventually cleared MTN NG of the allegation of illegally repatriating $13.92 Billion and also exonerated Minister of Industry and Trade Dr. Enelamah of any wrong doing. We thought the matter was closed, but we were wrong.

FAST FORWARD TO 29th AUGUST 2018
CBN revealed that 4 banks (Standard Chartered Bank, Stanbic IBTC, Citibank and Diamond bank) have been fined over N5b for their role in illegal remit of $8.1b dividend using “irregular” CCI in violation of the Foreign Exchange Act 1995 and the Foreign Exchange Manual. They were asked to "refund" the $8b.

WHAT DOES THE FOREX ACT/MANUAL SAY?
The Act (and memorandum 22 of the manual) prescribes that any foreign capital imported into Nigeria for purpose of investment must be converted to Naira within 24 hours of its arrival and Certificate for Capital Importation (CCI) issued by the authorized dealer i.e. Bank.

"Capital imported" can come in form of Cash or Equipment brought into the country. Either way, the requirements and process for CCI issuance is well spelt out in the Foreign Exchange act and manual.

SO WHAT IS THE CBN's CASE AGAINST THE BANKS AND MTN NG?
According to CBN, their investigation revealed the following:

1. That MTN NG shareholders invested and imported $402m in MTN Nigeria between 2001–2006. There seems to be no dispute about this from all parties.

2. That the investment was carried out through transfer of cash & importation of equipment evidenced by CCIs issued by the 4 banks. This means CCIs were issued to confirm MTN imported $402m into Nigeria. No dispute here as well.

3. That CCIs issued by the banks showed $59m out of the $402m was invested as Shareholders Loan while $343m came in as Equity. How did CBN know this? Because when CCIs are issued, you have to indicate whether it is for “Loan”, or “Equity”.

4. That a review of 2007 MTN financials revealed that instead of No. 3 above, what they found was $399m shareholders loan & $2.9m Equity in accordance to their Shareholders agreement but not in accordance with the CCIs. Is this unusual and evidence of fraudulent misrepresentation? Not really. The bank could have made an honest mistake of ticking the wrong box on the CCI even though this is very unlikely because they should have acted on instructions contained in MTN's Board Resolution.

5. That, following a request by Standard Chartered Bank (SCB) to convert the shareholders loan to Preference Shares, an approval-in-principle was issued by CBN subject to final approval on these conditions –

a). Implementation of decision in item 5B of their Board Resolution and
b). Undertaking that no remittance will be made to shareholders in form of interest/principal payments from date of the loan to date of conversion. Was this undertaking implied or in writing? We don’t know. Whichever way, it seems SCB ignored it.

6. Question: Why did CBN feel the need to issue an approval in-principle? Probably because the shares were to be converted to preference shares, which still ‘feels’ like a debt. When you think preference shares, think “Hybrid”. Now, this kind of conversion is not unusual but CBN obviously saw enough in the MTN NG board resolution authorizing conversion to make them want to wait for evidence of implementation before giving final approval.

7. This is where it gets murky. CBN claims that in spite of non-fulfillment of conditions it gave, MTN went ahead to convert the loans to preference shares and SCB issued CCIs in respect of the "illegal” conversion. Note use of the word "illegal".

8. Sometime in 2009, CBN queried SCB on CCI issued on this “illegal Conversion”. SCB in a reply dated 10 Dec 2009, acknowledged to CBN that it was an “unintended omission”. Nonetheless, on account of this CCI, MTN was able to remit $8Bn between 2007-2015.

9. Having concluded investigation, CBN ordered the banks to refund to it the $8.1Bn that was “illegally repatriated”. Does this mean the money belongs to CBN? No. CBN is only asking for return of its USD in exchange for the Naira MTN gave in return.

10. Now this is where it gets interesting. If MTN returns the $8.1 billion its shareholders already collected and CBN returns back to them the Naira it got in exchange, MTN could lose up to N2Trillon in the process. Do the Math and compare the $/N rate in 2007–2015 to the rate today. At the end of the day, the real negotiation (and there will be a negotiation) will be about justification of this differential and not the entire $8.1b. Will it be a 2-way negotiation between the banks and CBN or a 3-way negotiation with MTN NG included? We wait.

SUMMARY
1. It's a "refund" not a "forfeit". If the trade of $8b is executed, MTN NG will get back its Naira while CBN gets back its dollars. Meaning that in actual fact, the refund is going back in the books of MTN NG.

2. CCIs are issued by Banks and not CBN. Are there consequences for this move by CBN? Oh Yes! It'll make many investors take notice. The reality is that many investors have always played fast and loose with the rules.

I know for a fact there have been frantic calls from major world capitals to their Nigeria CFOs to be sure they are on solid footing. It is also likely banks will be more careful going forward, to ensure compliance with rules on capital importation.

It is instructive that compared to MTN NG, reactions of the indicted banks (Standard Chartered Bank, Stanbic IBTC, Citibank and Diamond bank) has been relatively measured. Could well be they don’t want to take on their regulator, or it could mean they know they are in the wrong.

This movie is far from over. It is just getting started. This is not THE END.

EQUITY REPORT 30th AUGUST 2018

NSE ASI Down 0.77%

The NSE ASI (-77bps) settled at 35,086.67 and the market capitalization lost N99.40 billion to close at N12.81 trillion.

ACTIVITY LEVEL:
Was mixed as Volume traded decreased by -17.52% to 284.59 million units and Value traded increased by 51.94% to N3.44 billion.

SENTIMENT:
Remained negative, as the market breadth (Advancers-Decliners Ratio) settled at 0.4x (vs. 0.7x previously), following price gains in 11 stocks against losses recorded in 27 stocks.

TOP GAINERS:
NEM (10.00%), LIVESTOCK (9.26%) and JAPAULOIL (8.00%).

TOP LOSERS:
MANSARD (-9.80%), INTENEGINS (-9.52%) and DIAMONDBNK (-9.35%).

SOURCE: Leadcapitalng.com

NSE MARKET UPDATE FOR 29 AUGUST 2018

MARKET INDEX SHEDS 44 BASIS POINTS AS INVESTORS LOSE N57BN
Trading activities on the Nigerian bourse closed today 29 August 2018 southwards. Benchmark index, NSE ASI and market capitalization trimmed by 0.44% to close at 35,358.94 basis points and N12.910 trillion respectively. Overall year-to-date return now stands @ -7.54%.

NEM led the volume log with 180.06m units followed by UBA / TRANSCORP with 27.20m / 21.75m. NEM also led the value chart with N540.11m followed by ETI / GUARANTY with N383.05m / N350.23m.

CBN official exchange rate closed at N306.15/$, I & E Fx rate closed at N363.06/$; parallel market rate closed at N361/$. As at time of this report (5.25pm), Brent Crude was being traded at $76.65p/b in the international commodities market.

ACTIVITY LEVEL
At end of the trading session, a total of 345.06m units of stocks worth N2.27b was exchanged in 3,261 deals. Financial Services sector accounted for 87% of total volume traded (81% by value), Conglomerates accounted for 6.38% of volume (1.35% of value), while Oil and Gas accounted for 3% of volume (4.11% of value).

MARKET BREADTH CLOSES NEGATIVE
Advancers/Decliners ratio pegged at 0.67x for the day with 18 gainers and 27 losers.

PORTPAINT led the gainers with an increase of 9.96% to close at N2.98, followed by REGALINS / SKYEBANK which gained 9.52% / 7.69% to close at N0.23/ N0.56 respectively. Decliners log were by LIVESTOCK which lost 10% to close at N0.54; STDINSURE / LASACO also shed 9.52% / 9.09% to close the day at N0.38 / N0.30 respectively.

SOURCE: Arthur Stevens Asset Management

4601CE:
Somebody please tell me what happens when you buy a stock and it is delisted on NSE.
I’m just curious o

"Delisting" means removal of a listed stock from the Nigerian Stock Exchange (NSE) or any exchange on which it is traded.

Various reasons can cause delisting:

1. BANKRUPTCY
When a company goes bankrupt, the shares will usually be delisted and cease to exist entirely. Also, when a company is going bankrupt, it will usually have violated one or more of the exchange's requirements, and might even be delisted before bankruptcy officially occurs. Implication for shareholders: The shareholder's investment is lost.

2. DISSOLUTION
A company might choose to dissolve entirely. In such an instance, the company will sell all assets, pay off creditors and distribute remaining proceeds to shareholders. After dissolution is completed, the shares will be delisted from the exchange. Implication for shareholders: Depends on what is "left over" for shareholders after settling creditors.

3. VOLUNTARY DELISTING TO GO PRIVATE
A company may decide to go private i.e. to stop being a publicly traded company. In that case it will apply for voluntary delisting from the NSE e.g. Nigerian Bottling Company, Great Nigeria Insurance. Implication for shareholders: The investment is intact but the shares cannot be traded on the NSE. However, trading can be done on the National Association of Securities Dealers (NASD)'s Over-the-Counter (OTC) market. In many cases shareholders will be paid cash for their shares when delisted from the NSE.

4. VOLUNTARY DELISTING DUE TO BUYOUT
A company can be delisted due to a buyout by another company. Implication for shareholders: You might receive cash for your shares or get shares of the acquiring company. If the company is taken private, shareholders will generally receive a cash payment for their shares when delisted. In many cases, the buyout is done at a premium so the shareholders get a much higher payment than the NSE trading price valuation.

5. VOLUNTARY DELISTING BY MERGER
A merger can also lead to voluntary delisting e.g. Oceanic Bank which merged with Ecobank, Intercontinental Bank which merged with Access Bank Plc. Implications for shareholders: They will either receive cash or be given shares in the merged entity.

6. FORCED DELISTING (FOR FAILURE TO MEET NSE REQUIREMENTS)
Companies listed on an exchange such as the NSE need to meet certain minimal requirements e.g. compliance with International Financial Reporting Standards, submission of quarterly, semi-annual and annual statements, annual certification on adherence to corporate governance, annual listing fees, e.t.c.

Continued failure to meet any of the requirements can eventually cause the company to be "forcibly" delisted from the exchange e.g. Onwuka Hi-Tek, Oluwa Glass, Nigerian Wire Industries. Implication for shareholders: In majority of cases, the investment is lost.

In the last 16 years, no less than 93 companies have been voluntarily or forcibly delisted from the Nigerian Stock Exchange.

The following were delisted from the Daily Official List of the NSE between 2002 and April 2018​.
​
S/N COMPANY DATE DELISTED REASON FOR DELISTING
1 IMPRESIT BAKOLORI PLC 2002 Voluntary
2 DUMEZ NIGERIA PLC 2002 Regulatory: NSE
3 CFOA NIGERIA PLC 2007 Voluntary
4 ACEN INSURANCE PLC 2008 Regulatory: NAICOM
5 ATLAS NIGERIA PLC 2008 Regulatory: NSE
6 CERAMICS MFG. COY. PLC 2008 Regulatory: NSE
7 AMICABLE INSURANCE PLC 2008 Regulatory: NAICOM
8 BAICO INSURANCE PLC 2008 Regulatory: NAICOM
9 BEVERAGES (WA) NIG. PLC 2008 Regulatory: NSE
10 ENPEE PLC 2008 Regulatory: NSE
11 TATE INDUSTRIES PLC 2008 Regulatory: NSE
12 MAUREEN LAB. PLC 2008 Regulatory: NSE
13 RIETZCOT NIGERIA PLC 2008 Regulatory: NSE
14 INTRA MOTORS NIG. PLC 2008 Regulatory: NSE
15 AVIATION DEV. COY. PLC 2008 Regulatory: NAICOM
16 GROMMAC INDUSTRIES PLC 2008 Regulatory: NSE
17 ONWUKA HI-TEK. PLC 2008 Regulatory: NSE
18 NIGERIAN LAMPS PLC 2008 Regulatory: NSE
19 NIGERIAN YEAST & ALCAHOL MFG. PLC 2008 Regulatory: NSE
20 SECURITY ASS. PLC 2008 Regulatory: NAICOM
21 SUN INSURANCE PLC 2008 Regulatory: NAICOM
22 NIGERIAN TEXT. MILLS PLC 2008 Voluntary
23 FOOTWEAR MFG. PLC 2009 Regulatory: NSE
24 FERDINAND OIL MILLS PLC 2009 Regulatory: NSE
25 CHRISTLIEB PLC 2009 Regulatory: NSE
26 BCN PLC 2009 Regulatory: NSE
27 LIZ-OLOFIN & COY. PLC 2009 Regulatory: NSE
28 OLUWA GLASS COY. PLC 2009 Regulatory: NSE
29 ASABA TEXTILE MILLS PLC 2009 Regulatory: NSE
30 ABOSELDEHYDE LAB. PLC 2009 Regulatory: NSE
31 EPIC DYNAMIC PLC 2009 Regulatory: NSE
32 FADMAD PLC 2009 Regulatory: NSE
33 ABA TEXTILE MILLS PLC 2009 Regulatory: NSE
34 AFPRINT PLC 2010 Regulatory: NSE
35 INCAR PLC 2010 Voluntary
36 NIGERCEM PLC 2011 Regulatory: NSE
37 DAILY TIMES PLC 2011 Regulatory: NSE
38 ALBARKA AIRLINE PLC 2011 Regulatory: NSE
39 FOREMOST DAIRIES PLC 2011 Regulatory: NSE
40 WIGGINS TEAPE NIG. LC 2011 Regulatory: NSE
41 OKITIPUPA OIL PALM PLC 2011 Regulatory: NSE
42 FIRST CAP. INV. & TRUST PLC 2011 Regulatory: NSE
43 FLEXIBLE PACKAGING PLC 2011 Regulatory: NSE
44 NEWPAK PLC 2011 Regulatory: NSE
45 KRABO NIGERIA PLC 2011 Regulatory: NSE
46 TROPICAL PETRO. PLC 2011 Regulatory: NSE
47 NIGERIAN BOTTLING COY PLC 2011 Voluntary
48 NAMPAK PLC 2011 Voluntary
49 UNITED NIG. TEX. PLC 2011 Voluntary
50 BANK PHB PLC 2011 Nationalised: CBN
51 AFRIBANK PLC 2011 Nationalised: CBN
52 SPRING BANK PLC 2011 Nationalised: CBN
53 INTERCONTINENTAL BANK PLC 2011 Merged with Access Bank Plc.
54 OCEANIC BANK PLC 2011 Merged with ETI
55 FINBANK PLC 2011 Merged with FCMB Plc.
56 ECOBANK PLC 2011 Absorbed by ETI: Now Ecobank Nigeria Ltd
57 ABPLAST PLC 2012 Regulatory: NSE
58 UDEOFOSIN GARMENT PLC 2012 Regulatory: NSE
59 HALLMARK PAPER PRODUCT PLC 2012 Regulatory: NSE
60 BACGO BAG PLC April 11, 2013 Merged with Flour Mills Plc
61 CRUSADER NIGERIA PLC May 13, 2013 Merged with Custodian & Allied Insurance Plc.
62 WEST AFRICAN ALUMINIUM PLC June 3, 2013 Regulatory: NSE
​63 NIGERIAN WIRE INDUSTRY PLC Jun2 3, 2013 Regulatory: NSE​
​64 ​BIG TREAT PLC ​November 24, 2014 ​Voluntary
​65 ​AFROIL PLC ​November 24, 2014 ​Voluntary
​66 ​STARCOMMS PLC ​November 24, 2014 ​Voluntary
​67 ​PINNACLE POINT GROUP ​​November 24, 2014​ ​Voluntary
​68 ​POLY PRODUCTS​ PLC ​​December 12, 2014 ​Voluntary​
​69 ​OASIS INSURANCE ​December 31, 2014 ​Acquired by FBN Life Insurance​
​70 ​CAPPA AND D'ALBERTO​ ​January 16, 2015 ​Voluntary
​71 ​IPWA PLC ​May 18, 2016 ​Regulatory: NSE
​72 ​G. CAPPA PLC ​May 18, 2016 ​​Regulatory: NSE
​73 ​WEST AFRICAN GLASS INDUSTRIES PLC (WAGI) ​May 18, 2016 ​Regulatory: NSE
​74 ​INVESTMENT & ALLIED INSURANCE PLC​ ​May 18, 2016 ​Regulatory: NSE
​75 ​ALUMACO PLC ​May 18, 2016 ​Regulatory: NSE
​76 ​JOS INTERNATIONAL BREWERIES PLC ​May 18, 2016 ​Regulatory: NSE
​77 ​ADSWITCH PLC ​May 18, 2016 ​Regulatory: NSE
​78 ​ROKANNA PLC ​​May 18, 2016 ​Regulatory: NSE
​79 ​VONO PRODUCTS NIGERIA PLC ​May 23, 2016​ Merged with Vitafoam Plc
​80 ​Lennards (Nigeria) Plc ​December 1, 2016 ​Regulatory: NSE
​81 ​P.S Mandrides & Company Plc ​December 1, 2016 ​Regulatory: NSE
​82 ​Premier Breweries Plc ​December 1, 2016 ​Regulatory: NSE
​83 ​Costain (W.A) Plc ​​December 1, 2016 ​​Regulatory: NSE
​84 ​Navitus Energy Plc ​​December 1, 2016 ​​Regulatory: NSE
​85​ ​Nigerian Ropes Plc ​​December 1, 2016 ​​Regulatory: NSE
​86 ​Beco Petroleum Products Plc ​May 2, 2017 ​​​Regulatory: NSE​
​87 ​MTECH Communications Plc ​​May 2, 2017 ​Regulatory: NSE
​88 ​MTI Plc ​May 2, 2017 ​​​​Regulatory: NSE​​
​​89 ​UTC Plc​ ​May 2, 2017 ​Regulatory: NSE
​90 ​Ashakacem Plc ​July 4, 2017 ​Voluntary​​
​91 ​Seven-Up Bottling Company Plc March 5, 2018 ​Voluntary (Shareholders Approval)
​92 ​African Paints (Nigeria) Plc April 6, 2018 ​Regulatory
​93 ​Afrik Pharmaceuticals Plc ​April 6, 2018 ​Regulatory
​​​​​​​​​

POST FOR TECHNICAL TRADERS

TECHNICAL ANALYSIS OF THE NIGERIAN STOCK EXCHANGE 15 AUG 2018

FOCUS: GLOBAL X MSCI NIGERIA ETF AMEX:​NGE

OSCILLATORS VALUE ACTION
Relative Strength Index (14) 33.68 Neutral
Stochastic %K (14, 3, 3) 5.85 Neutral
Commodity Channel Index (20) -158.18 Buy
Average Directional Index (14) 14.46 Neutral
Awesome Oscillator -0.74 Sell
Momentum (10) -0.77 Sell
MACD Level (12, 27) -0.34 Sell
Stochastic RSI Fast (3, 3, 14, 14) 8.21 Neutral
Williams Percent Range (14) -84.09 Buy
Bull Bear Power -1.02 Neutral
Ultimate Oscillator (7, 14, 28) 42.52 Neutral

MOVING AVERAGES VALUE ACTION
Exponential Moving Average (10) 19.80 Sell
Simple Moving Average (10) 19.90 Sell
Exponential Moving Average (20) 20.06 Sell
Simple Moving Average (20) 20.04 Sell
Exponential Moving Average (30) 20.29 Sell
Simple Moving Average (30) 20.32 Sell
Exponential Moving Average (50) 20.71 Sell
Simple Moving Average (50) 20.77 Sell
Exponential Moving Average (100) 21.41 Sell
Simple Moving Average (100) 21.82 Sell
Exponential Moving Average (200) 21.64 Sell
Simple Moving Average (200) 22.45 Sell
Ichimoku Cloud Base Line (9, 26, 52, 26) 20.17 Neutral
Volume Weighted Moving Average (20) 20.2 Sell
Hull Moving Average (9) 19.28 Buy

SOURCE: www.tradingview.com

TECHNICAL INDICATOR SUMMARY
Sell:Neutral:Buy RATIO = 16:7:3.
Therefore, outlook is currently still mid-range BEARISH for the analyzed basket of NSE equities.

ARTICLE: 3 WAYS TO BUILD GREAT WEALTH

Source: www.businessinsider.co.za

Business Insider | Executive Insights
Aug 14, 2018; 06:12 pm

After spending 5 years studying millionaires, I've found that there are 3 types of people who end up the wealthiest. Thomas C. Corley studied and interviewed 233 wealthy individuals over the course of four years and found three common ways they build their fortunes.

1. "Saver-investors" focused on having no debt, lived well below their means, and invested and saved for many years.
2. "Virtuosos" were the best of the best in their careers, and worked for companies that gave stock options or owned their own highly-profitable businesses.
3. "Dreamers" were the wealthiest group: They pursued a big dream and made it a reality, which led to some massive gain or income.

Over a nearly four-year period, I interviewed 233 wealthy individuals. During these interviews, I asked each rich person 144 questions. It took me another 18 months to summarize and analyze their responses. In an effort to share my research I've written several books sharing their habits, thinking, psychology, decision-making, risk tolerance, careers and many other things, which I learned thanks to my "Rich Habits" Study.

One of the many things I learned was how they actually created their wealth.

What I found is that there were three predominant paths rich people pursued in order to accumulate their wealth.

1. THE 'SAVER INVESTORS'
Just less than 22% of the rich people in my Rich Habits Study fell into this category. The "saver-investors" all had zero debt, and the passive income generated by their invested savings was enough to meet or exceed their standard of living.

They all had five things in common:

A. They had a low standard of living and
B. They typically made a modest income and
C. Their modest income exceeded their low standard of living and
D. They saved 20% or more of their modest income for many years and
E. They consistently and prudently invested their savings for many years.

It took the Savers about 32 years to accumulate an average wealth of $3.4 million.

2. THE 'VIRTUOSOS'
Approximately 27% of the rich people in my study were "virtuosos." These rich people were virtuosos in their career, industry, or profession. They were among the best at what they did.

These individuals either worked for large, publicly-held corporations (in which a significant portion of their compensation was stock-based compensation) or they were entrepreneurs/small business owners with enterprises that were highly profitable.

It took the virtuosos about 20 years to accumulate an average wealth of $4 million.

3. THE 'DREAMERS'
The "dreamers" were by far the wealthiest group in my study. Approximately 51% of them were individuals who pursued some big dream and were able to turn that dream into a reality. Their dream eventually provided them with an enormous amount of income, profit, or gain, and they accumulated an average of $7.4 million in about twelve years.

SUMMARY:
The point to all of this is: There is more than one way to skin a cat.

If you're risk-averse, it does not disqualify you from becoming rich. If you have no dream or you're not interested in saving your way to wealth, becoming a virtuoso in what you do for a living can make you rich. If you are not a saver or a virtuoso, pursuing some dream that makes your heart sing can also make you wealthy.

If you want to be rich, the only important thing is to pick one path that works for you and stick with it for many years. The one common denominator all levels of wealth shared was time — it took many years to accumulate their wealth.

NIGERIAN EQUITY MARKET SUMMARY FOR 14TH AUGUST 2018 (Source: Arthur Stevens Asset Management)

BEARS DOMINATE AS YTD RETURN SLIPS TO 7.73%

Trading activities on the Nigerian bourse has now been in the red zone consecutively for 8 days.

Today, the benchmark index , NSE ASI and market capitalization dropped by 0.35% to close at 35,288.23 basis points and N12.883 trillion respectively. Overall year-to-date return now stands at -7.73%.

UBA led the volume log with 26.87 million units followed by LASACO with 12.24 million and FBNH with 11.45 million units. GUARANTY led the value chart with N289.74 million followed by UBA with N250.66 million and STANBIC with N136.80 million.

CBN official exchange rate closed at N306.05/$, I & E FX rate closed at N362.30/$ ,while the parallel market rate closed at N360$. As at 5.20pm, Brent Crude traded at $72.83 p/b in the international commodities market.

ACTIVITY LEVEL
At the end of the trading session, a total 164.51 million units of stocks worth N1.61 billion was exchanged in 3,448 deals. The Financial Services sector for 72% of total volume traded (63% by value), the Consumer Goods sector accounted for 7.10% of volume (21.47% of value), while Oil and Gas accounted for 7.00% of volume (4.38% of value).

MARKET BREADTH CLOSES NEGATIVE

Advancers/Decliners ratio pegged at 0.39x, closing negative for the day with 13 gainers and 33 losers.

MBENEFIT led the gainers chart with an increase of 10% to close at N0.33, followed by CUSTODIAN and LIVESTOCK which gained 9.94% and 9.52% to close at N5.64 and N0.69 respectively. The decliners log was led by ABCTRANS which lost 10% to close at N0.36. Similarly, UNIONDAC and ETERNA shed 10% and 9.72% to close at N0.27 and N6.50 respectively.

EQUITY REPORT FOR MONDAY 16TH JULY 2018
NSE ASI Down 0.34%

The NSE ASI (-34bps) settled at 37,266.86 and the market capitalization lost N45.61 billion to close at N13.50 trillion.

Activity levels were mixed as Volume traded increased by 43.05% to 303.48 million units and Value traded decreased by 36.95% to N2.04 billion.

Investor’s sentiment remained negative, as the market breadth (A-D Ratio) settled at 0.3x (vs. 0.7x previously), following price gains in 8 stocks against losses recorded in 32 stocks.

NAHCO (9.97%), SOVERNINS (8.70%) and LASACO (5.88%) were top gainers, while LEARNAFRCA (-10.00%), MULTITREX (-10.00%) and PZ (-10.00%) were top losers.

SOURCE: LeadResearch