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SEC Announces New Rules on Warehousing, Collateral Management

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By Tony Obiechina, Abuja

In a bid to ensure the nation has a vibrant commodities trading ecosystem which would in turn translate into foreign exchange earnings for the country, the Securities and Exchange Commission has announced new rules covering warehousing and collateral management among others.

According to a statement by SEC Head of Public Communication, Mrs Efe Ebelo in Abuja on Sunday, every warehouse that stores commodities to be traded on a registered Exchange shall apply to be registered by the Commission, while the Commission shall maintain a Register of all registered warehouses which shall be published on its website.

 A warehouse applying for registration going by the rule, shall submit proof of ownership or registered-lease deed or rent agreement, along with disclaimer from the owner of the Warehouse/property providing waiver of ownership regarding Commodities stored in such Warehouse, in case of leased or rented Warehouse;  present evidence of construction in compliance with the National Building Code, Present evidence of compliance with relevant Federal and State regulation relating to the operation of warehouses, and have  facility(ies) appropriate for storage of commodities.

Other requirements are that the warehouse should have appropriate security arrangements in place, have adequate trained staff with expertise and knowledge of scientific storage of commodities, have requisite equipment for weighing and quality measures of commodities, as well as have comprehensive insurance cover for the building, equipment, stock and other items as may be necessary.

The Rule also states that “The warehouse should be located in a place with access to infrastructure to support its operations and have sufficient space for parking and movement of large vehicles, have an efficient system for loading/unloading of Commodity including proper mechanism for segregation of different kinds/quality of Commodity.

“They are to submit a Standard Operating Procedure (SOP) which shall cover the following among others: Procedures for acceptance of commodities to be deposited and delivery of commodities; procedures for weighing, sampling of goods to be deposited in compliance with industry standards, procedure for verification of commodities and communication to depositors, and procedure for maintaining the quality of the goods stored in line with relevant specifications.

“Others are procedure for Know your depositor, security policy for ensuring the safety of the goods, procedure for the use of modern techniques for storage of goods, procedure for determining and addressing losses due to theft, fire, burglary, fraud, negligence and force majeure events, procedure for internal verification of stock, procedure for maintenance of warehouse and preservations of Stock, Organizational structure and Job description for every staff”.

 The rules states that for a Collateral Management Company to be registered by the Commission, an application shall be filed to the SEC accompanied by the relevant documents.

Some of the documents are two sets of completed appropriate S.E.C Forms to be filed by the sponsored individuals; a copy of the Certificate of Incorporation certified by the Corporate Affairs Commission where a copy not certified is filed, the applicant shall present the original for sighting by an authorized officer of the Commission; a copy of the Memorandum and Articles of Association certified by the Corporate Affairs Commission, which shall among others, include power to act as a Collateral Manager, a copy of the appropriate CAC Form containing particulars of the directors certified by the Corporate Affairs Commission; as well as a Copy of latest audited accounts or audited statement of affairs for companies in operation for less than one (1) year.

The rule further requires Fidelity Bond representing 20% of paid-up capital; sworn undertaking to keep proper records and render returns; evidence of minimum paid-up capital of N50 million. As well as application for registration of a minimum of two sponsored individuals one of whom shall be the chief executive officer.

“The two principal officers of the Collateral Management Company who shall be registered as sponsored officers must have a minimum of a university degree or its equivalent with not less than ten (10) years relevant post-qualification experience; a list of key officers and technical experts engaged and details of their qualifications, which should capture evidence of financial, technical capabilities to carry out the functions of a Collateral Manager, a list of relevant technology systems in place as required by collateral management services; information relating to the relevant Commodities Management Facilities including: Assaying facilities, Warehousing, Aggregation, Computerization and Telephone systems and a well finalized Business Plan;

“Two copies of existing or proposed by-laws or rules, Code of Conduct, Warehousing Guidelines etc.,  instruction and inspection manuals of warehouse activities; detailed information about the promoters and principal officers of the Collateral Management Company; two copies of Warehouse Accreditation requirements of the Collateral Management Company; detailed information about the Technology system to be adopted; and an Undertaking by the CMC to always forward copies of amendments of its Guidelines for approval by the Commission”.

 On Management of the CMC, THE SEC rule stipulates that Board of directors and the chief executive should be appointed with prior approval of the Commission;  key officers are to fulfil the fit and proper criteria as provided in these regulations;  the CMC is expected to maintain the eligibility criteria provided by the Commission and notify the Commission immediately if it ceases to fulfil any of the conditions provided in these rules; 

“Maintain high standard of integrity and fairness in discharging its functions and its dealing with other persons with whom it has agreed in writing to render services as CMC; Fulfil its obligations in a fair, efficient, transparent and ethical manner;  and act with due skill, care and diligence in performing all its functions and discharging all its obligations and responsibilities; 

“Upon Registration, the CMC is expected to display such license, in a conspicuous place, in the principal place of its business; establish the procedure for pledging, in favor of a financial institution, the Depositor’s commodities held with the Warehouse against which Electronic Warehouse Receipt has been issued; and certify a Warehouse”.

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UBA Raises N157bn Via Rights Issue to Boost Capital Base

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United Bank for Africa Plc (UBA) has announced plans to raise N157 billion through a rights issue.The disclosure was made via a notice to the Nigerian Exchange Ltd (NGX).It said in a statement on Thursday that its stock brokers, United Capital Securities Ltd., had submitted an application to the Nigerian Exchange Ltd.

to that effect.
It added its stock brokers had requested for approval and listing of a Rights Issue of 3,156,869,665 ordinary shares of 50 Kobo each at N50.
00 per share“Trading License Holders are hereby notified that United Bank for Africa Plc, through its Stockbrokers, United Capital Securities Ltd., has submitted an application to the Nigerian Exchange Ltd.” in that regard.
“The rights issue will be on the basis of one new ordinary share for every 13 ordinary shares held as of the close of business on Wednesday, July 16, 2025.“The qualification date for the Rights Issue is July 16, 2025,” the bank noted.The move is part of UBA’s strategy to strengthen its capital base and support its expansion and growth objectives across Africa.(NAN)

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Benue Uncovers Over 4000 Substandard Schools

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From Attah Ede, Makurdi

Over 4000 substandard and illegal schools have been uncovered and ready to be shut down across the state.The chief press secretary to the Benue State Governor, Tersoo Kula disclosed this at a press conference in Makurdi.Kula was reacting to a statement credited to former commissioner for education and knowledge management, Prof.

Dennis Ityavyar, said that Governor Alia has stabilised the educational sector since coming on board two years ago.
”No more strikes. Schools are moving on smoothly and in a bid to bring teaching and learning closer to the people and address the problem of younger school leavers in securing admission into tertiary institutions, the governor has established a new university.
”The establishment of University of Agriculture Science and Technology Ihugh, Vandeikyaa LGA is real..The governor has secured the licence, acquired land and made appointments of principal officers.”This is to address the issue of providing admission for the teeming Benue indigenes seeking admission into Nigerian universities.”The Governor has employed over 9700 teachers to energize public primary schools in the state. Apart from the fact that our primary schools would be energized, 9700 youths have been taken off the streets.”The government of governor Alia has also paid the 38 months earned allowance owed to lecturers at the Moses Adasu University, formerly Benue State University Makurdi”, he said.He maintained that renovation of government secondary schools and colleges across the state are ongoing where ongoing construction of new structures is in some public primary and secondary schools to ensure conducive learning environment.”Public primary schools teachers are trained on ITCs to enhance the teaching and learning of information and technology innovations at elementary level.”This government has been able to identify over 4000 substandard schools in the state and have secured insurance cover for Benue State students and paid bursary allowances in law school students in the state”, Kula stated.Benue Moves to Domesticate National Policy on IDPsThe Benue State Government has commenced a validation process to domesticate the newly federal government policy on Internally Displaced Persons (PDP) in the State.Commissioner for Humanitarian and Disaster Management in the State, Aondowase Kunde, stated that upon stakeholders’ inputs into the Internally Displaced Persons policy document, it would be fully launched.He added that the aim is to improve the welfare of the displaced population in the state.Kunde stated this during a two policy validation meeting held at Benue Hotels Makurdi yesterday.He maintained that the document which was passed into law by the national assembly needed to be domesticated in the state in line with the peculiarities of the state.In his remarks, the chairman, House Committee on Humanitarian and Disaster Management, Benue State House of assembly, James Abu Umoro, noted that the state has suffered so many natural and man-made disasters that it requires the policy to be domesticated in the state.Umoru insisted that the house will not hesitate to pass the document into law when presented by the executive arm of government.He said the issue of IDP in the state is a concern for everyone and must be given accelerated consideration at any point in time.On his part, House committee chairman on SDG and Donor Agencies, Peter Uche, noted that in most cases, communities have suffered attacks for more than ten years.”Let me therefore, call on all to support the implementation of the policy document for the displaced to return to their ancestral homes to start their normal farming and business activities”, he stated.The Director General, Sustainable Development Goals, John Akuse, who spoke at the occasion, said the validation of the IDP policy document is vital in paving the way for the displaced population to be adequately taken care of regarding their peculiar needs.

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Tinubu Honours Buhari, Renames University of Maiduguri after Late President

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By David Torough, Abuja

President Bola Tinubu has approved the renaming of the University of Maiduguri, Borno State as Muhammadu Buhari University.

“May we now adopt the University of Maduguri as the Muhammadu Buhari University,” Tinubu said at the close of a special session of the Federal Executive Council held to honour Buhari at the Aso Rock Villa, Abuja on Thursday.

The President paid a glowing tribute to Buhari, describing him as “a good man, a decent man, an honourable man” whose legacy of discipline, patriotism and moral uprightness would endure for generations.

Tinubu said although the late president was not without flaws, his unwavering commitment to national service set him apart.

“President Buhari was not a perfect man, no leader is, but he was, in every sense of the word, a good man, a decent man, an honourable man.

“His record will be debated, as all legacies are, but the character he brought to public life, the moral force he carried, the incorruptible standard he represented, will not be forgotten.

“His was a life lived in full service to Nigeria, and in fidelity to God,” he said.

Reflecting on Buhari’s time in office and his long military and civil service, Tinubu praised the late leader’s simplicity, humility, and stoic resistance to the trappings of power.

He said, “He stood, always, ramrod straight; unmoved by the temptation of power, unseduced by applause and unafraid of the loneliness that often visits those who do what is right, rather than what is popular.

“His was a quiet courage, a righteousness that never announced itself. His patriotism lived more in action than in words.”

Tinubu also recounted their political alliance, which culminated in the historic 2015 elections that marked Nigeria’s first democratic transfer of power from one ruling party to another.

“We stood together, he and I. Alongside others drawn from across the political spectrum, regions and tongues, we formed an alliance that enabled Nigeria to experience its first true democratic transfer of power from one ruling party to another.

“When he was sworn in as our party’s first elected President, he led with restraint, governed with dignity, and bore the burdens of leadership without complaint,” he said.

The President expressed admiration for Buhari’s post-office modesty, noting that he returned to his hometown, Daura, without seeking to wield influence behind the scenes.

“When his tenure ended, he returned to Daura; not to command from the shadows or to hold court, but to live as he always had, never seeking to impose his will but content to let others carry the nation forward.

“Even in death, he maintained the serenity that defined him in life: not a sigh, not a groan, just a quiet submission to the will of God. Such was the man Nigeria has lost. Such was the man for whom our nation now mourns,” he added.

Tinubu thanked the Inter-Ministerial Committee and Katsina State Governor, Dikko Radda, for organising a befitting state funeral within 48 hours, describing it as a “profound honour” to lead the burial procession in Daura.

He concluded his tribute with a prayer: “Mai Gaskiya, the People’s General, the Farmer President, your duty is done. May Almighty Allah forgive his shortcomings and grant him Aljannah Firdaus. May his life continue to inspire generations of Nigerians to serve with courage, conviction, and selflessness. President Buhari, thank you. Nigeria will remember you.”

Buhari died on Sunday, July 13, at the age of 82.

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