Connect with us

BUSINESS

SEC Working to Improve Capital Market – Yuguda 

Published

on

Share

By Tony Obiechina, Abuja 

The securities and Exchange Commission has reaffirmed it’s committement to making the capital market attractive to Nigerians of all ages and status.

Director General of the SEC, Mr. Lamido Yuguda stated this during a meeting with a team lead by the British Deputy High Commissioner in Abuja on Friday.

Yuguda said the Commission is implementing various initiatives to ensure that products and offerings in the market are accessible to both the young and old which he said would further deepen the market.

According to him, “When we assumed office, we were shocked to know that the average age of the Central Securities Clearing System account holder was over 50 years.

The CSCS is a depository so if you are investing in equities you must have a CSCS account. 

“The average age of that account holder was over 50, and that made us realise that the young people were not participating in this market and when young people are not participating in any market, that market is doomed to fail. And young people today prefer to do things on their phones, if you have to fill a stack of forms manually young people won’t do it. We want to make investing in the capital market a fun experience.

“The capital market experience starts with a bank account and eventually the distribution has to hit a bank account as well. So we decided to look at the whole process and find out what is turning young people off. We have started the process and seen how the tech companies are providing much needed relief to the kind of bureaucracy that happens in the capital market.

Yuguda disclosed that the SEC recently approved an e-offer for MTN and expressed the excitement of the Commission that Nigerians especially those of the younger age bracket were able to participate in the offer.

According to him “It was marvellously successful and we are very excited about it. A lot of young people who had never invested in the capital market took the MTN offer. That is one of the first step in a lot of steps we are going to take to make investing in the capital market a much nicer experience for people both young and old. We know we can move quickly and faster once we strengthen our IT infrastructure to do a lot more” He said.

“In this market what we have seen is that where people do have ready access to interesting products in the regulated market they then gravitate towards the parallel markets and the Ponzi schemes and really the task of the Commission is to as much as possible move money to the regulated market away from the Ponzi schemes”.

He stated that with e-offers, a lot of Nigerians would be happy to invest in the capital market and that would dissuade people from patronising illegal schemes thereby leading to the development of the capital market and the Nigerian economy.

Yuguda also stated that the Commission in its drive to attract more people to the market is focusing on a proper identity management system which would also aid in the reduction of the issue of unclaimed dividends.

“One area we recognised we needed to attend to is the lack of proper identity management system in the market and this an area the Commission has really focused on. We have had over the past few decades a lot of unclaimed dividends in the market and we thought that the identity management could help solve the problem.

“I believe if we are able to do this to a logical conclusion it could unlock a lot more investors because I think the fact that people have money in the capital market and have not been able to claim them, it is not only bad for the people who have this money but it is also a disincentive for those trying to come in because they do not want their money to be trapped” he stated.

The DG commended the relationship between the Commission and the UK government the Commission and Nigeriawhich he stated has contributed to the growth and development of the capital market 

In his remarks, the British Deputy High Commissioner, Mr. Ben Llewellyn-Jones canvassed the need for the SEC to create more alternative options for investments for all classes of people as one of the ways of pulling people away from unregulated space. 

He said, “The more you can create alternative options the easier it is to pull people away from unregulated space and that is why the Sandbox is so attractive to us and why we encourage it. We come across these fintech players and they are formidably driven in their vision. 

“But we get a sense they need to work with regulators to make it work and they recognise that it’s the right way to be attracted to investment and grow the way they want. They are formidably talented as well and it is really encouraging. we are very keen to work with you and your approach and that’s very heartening and the appetite for innovation is what has attracted us to that the most”.

A statement by BPE Head of Public Communications, Mr Ibeh Uzoma Chidi on Sunday, named the companies as, Federal superphosphate Fertilizer Company (FSFC), Kaduna; Cement Company of Northern Nigeria (CCNN) Sokoto and Ikoyi Hotel (now Southern Sun) Lagos.

Their delisting followed a request by the BPE to the NCP for approval at its maiden meeting for year 2022 which held for two days (Monday, January 31, 2022 and February 1, 2022) at the Presidential Villa, Aso Rock, Abuja. 

In its request, the Bureau noted that it had carried out a review of the enterprises in line with BPE’s mandate to manage post—privatisation issues of privatised public companies and was satisfied the core investors had ensured compliance with the covenants.

BPE stated that it had developed standard processes and procedures for delisting privatised enterprises which all privatised enterprises are bound to comply with before being recommended for delisting.

In assessing the now delisted enterprises, BPE said it reviewed all the data submitted by the Core Investors in Line with their KPIs as indicated in the SSPA and followed up with an on-the spot assessment of the companies to validate the data submitted which showed excellent performance.

It would be recalled that FSFC was incorporated in September 1973 with an installed capacity of 100,000 metric tons per annum and privatied in 2005. It was handed over to the Core Investor, Messrs HEIKO Consortium in January 2006.

While Ikoyi Hotel also called Nigerian Hotels Limited was established in 1932 and owned 100% percent by the Federal Government, was privatised through Assets Sale to BETA Consortium Limited with a bid price of $13,867,000.000 and handed to the investor in 2003.

The Cement Company of Northern Nigeria Plc (CCNN), Sokoto was commissioned in 1967 with the Federal Government owning 45% shares of the Company.

In 2000 the FG shares were divested through a strategic Core Investor sale/Initial Public Offer. During its privatisation, an already existing shareholder and technical partner to CCNN, ScanCem/Dammnaz International Limited emerged as the core investor of the company. In 2010, the company was acquired by BUA international.
The delisted enterprises will be presented with their discharge certificate later.

BUSINESS

Digital Bank PalmPay Gets Recognition

Published

on

Share

Torough David

Digital bank PalmPay has once again secured global recognition, earning a place on CNBC and Statista’s 2025 Top 300 Fintech Companies in the World list.

This marks the second consecutive year the fintech platform has been listed among the world’s most innovative and impactful financial technology firms, placing it alongside global giants such as Revolut, Nubank, and Ant Group.

In a statement on Tuesday, the Founding Chief Marketing Officer at PalmPay, Sofia Zab, described the recognition as a strong validation of the company’s commitment to financial inclusion across emerging markets.

“To be recognised as one of the world’s top fintech companies by CNBC and Statista is a powerful affirmation of our mission to build a more inclusive financial system,” she said.

Zab noted that PalmPay’s strategy combines cutting-edge technology with deep local distribution to meet the needs of underserved communities.

“Through a customer-first mindset, we’ve built Nigeria’s leading neobank,” she added.

PalmPay currently serves over 35 million registered users, processing up to 15 million transactions daily. In Nigeria, its core market, PalmPay operates as a full-service neobank, offering services such as transfers, bill payments, credit, savings, and insurance, all available through its user-friendly mobile app.

The company also maintains a nationwide network of over one million agents and merchant partners and provides POS and API-driven solutions for merchants and enterprise clients.

Group Chief Commercial Officer at PalmPay, Jiapei Yan, said the fintech platform is building a neobanking infrastructure that aligns with the realities of emerging markets.

“We are creating the infrastructure for a connected digital economy where people and businesses can thrive through reliable, inclusive financial tools,” Yan said.

He added that the CNBC and Statista ranking not only affirms PalmPay’s progress but also highlights the scale of opportunity in emerging markets.

PalmPay recently expanded into Tanzania and Bangladesh, using smartphone device financing as a gateway to digital financial services for new users in these regions.

 “Our focus remains on closing financial access gaps for everyday consumers and businesses, while expanding the partner ecosystem that fuels our reach and impact,” Zab said.

 Earlier this year, PalmPay was also ranked #2 overall and #1 in financial services on the Financial Times Africa’s Fastest-Growing Companies 2025 list. The ranking reflected the company’s rapid scale and market traction, based on revenue growth between 2020 and 2023.

Continue Reading

BUSINESS

CBN’s Rates Hold Anticipated, New Strategies Important against Downsides – CPPE

Published

on

Share

The Centre for the Promotion of Private Enterprise (CPPE) said the decision of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to hold the interest rates was anticipated.

Chief Executive Officer of CPPE, Dr. Muda Yusuf said this in an interview on Wednesday in Lagos.

Yusuf said that although the decisions of the MPC were not surprising, the apex bank and managers of the nation’s economy must evolve additional strategies, including trade policy shifts against inflation.

He was responding to the outcome of the 301st MMPC meeting.

The MPC retained the rates for the third consecutive time, holding the Monetary Policy Rate (MPR) at 27.

5 per cent.

The Cash Reserve Ratio (CRR) was retained at 50 percent for deposit money banks and 16 per cent for merchant banks.

It also retained Liquidity Ratio at 30 per cent and the Asymmetric Corridor at +500/-100 basis points around the MPR.

Yusuf said that the outcome was anticipated based on current realities, adding that the decision had both positive and negative consequences for the nation’s economy.

He said it was expected that current rates would be maintained due to CBN’s consistent approach of not cutting rates until inflation significantly moderates.

He said that inspite of marginal deceleration in annual inflation to 22.22 per cent, month-on-month headline, food, and core inflation all increased in June.

According to him, the CBN cited inflationary trends coupled with persistent factors like high energy costs, insecurity, exchange rate volatility and logistics expenses as reasons for its decision.

He stressed the need for more affordable funds to boost economic growth and investment, noting that interest rates exceeding 30 per cent are highly prohibitive.

The CPPE boss, however, said that economic management involved trade-offs.

He said that CBN’s tight monetary stance, characterised by high interest rates, had successfully attracted an inflow of foreign exchange through portfolio investments.

Yusuf said that the influx of forex was a key positive outcome that justified CBN’s decision to maintain monetary tightness, even if it appears to hinder direct investment and growth.

He said that CBN’s decision had several implications, adding that financial instruments will continue to offer attractive returns, benefiting investors in these areas.

Yusuf said that the country needed factors that could bring down the cost of production, distribution, and the cost of importation of critical input for production.

“There are already some actions, we need more effective and impactful actions on insecurity, so that our food production can also be scaled up.

“These are some of the additional things that need to take place on the policy front to complement whatever the monetary policy authorities are doing.

“Clearly, monetary policy alone or monetary policy instruments alone are not sufficient to effectively tackle inflation,” he said.

Continue Reading

BUSINESS

IMF Predicts 0.5% GDP Revenue Loss for Nigeria

Published

on

Share

Torough David, Abuja

The Federal Government may lose as much as 0.5 percent of the country’s Gross Domestic Product in revenue following its decision not to raise the Value Added Tax rate, the International Monetary Fund has disclosed.

In its latest Article IV Consultation Report on Nigeria, the IMF stated that although the recent tax reforms approved by the National Assembly and President Bola Tinubu represent a major step forward in modernising the VAT and Company Income Tax regimes, the choice to maintain the current VAT rate would lead to an immediate revenue shortfall.

“The decision not to raise the VAT rate now is reasonable, given high poverty and food insecurity, and with the cash transfer system to support the most vulnerable households not yet fully rolled out.

However, this will reduce consolidated government revenue by up to ½ per cent of GDP in the authorities’ estimates,” the report noted.

While the Federal Government is expected to be largely insulated from the fallout—thanks to expected gains from improved CIT compliance—the blow will be felt most by state and local governments.

According to the Fund, unless alternative financing options are found, subnational governments may be forced to either scale back spending or ramp up their own revenue efforts.

The IMF, however, acknowledged the government’s justification for delaying a VAT hike, particularly at a time of worsening poverty and food insecurity.

With only 5.5 million of the targeted 15 million households reached under the federal cash transfer programme, the Fund noted that raising VAT at this stage could further strain vulnerable households.

Nonetheless, it cautioned that the cost of delaying reform would fall on already stretched public finances, especially at the subnational level.

“Assuming no alternative financing sources, they [states and LGAs] would have to raise additional revenue or reduce spending, which is assumed in the baseline,” the report said.

Despite this challenge, the IMF welcomed the tax reform agenda being driven by the Presidential Committee on Fiscal Policy and Tax Reforms, describing it as critical to reversing Nigeria’s poor revenue-to-GDP ratio, one of the lowest globally.

The reforms aim to boost compliance and enforcement, and the Fund believes they hold “significant medium-term revenue potential” once fully implemented.

Measures include modernising the VAT and CIT frameworks, tightening exemptions, and introducing digital tools to monitor compliance. Total revenue and grants reached 14.4 per cent of GDP in 2024, up from 9.8 per cent in 2023, buoyed by currency depreciation and improved administration.

However, public debt also rose, hitting 52.9 percent of GDP last year, with interest payments consuming 41.1 percent of Federal Government revenue. The IMF advised the government to maintain a neutral fiscal stance in 2025, stressing that revenue shortfalls should not lead to excessive borrowing.

It also urged the authorities to clearly set out a medium-term revenue plan, including timelines for further tax policy changes, to restore investor confidence and ensure policy credibility.

The report stated, “Pre-committing to an implementation timeline for further policy measures in an updated medium-term framework would support fiscal sustainability and provide guidance on available fiscal space for development spending and support for the most vulnerable households.”

Nigeria’s decision not to raise VAT comes at a time of heightened global and domestic uncertainty. Lower oil prices, rising financing costs, and mounting social pressures have narrowed the government’s fiscal space.

The IMF observed that while reforms since 2023—including fuel subsidy removal and the liberalisation of the foreign exchange market—have improved macroeconomic stability, their benefits have yet to trickle down to most Nigerians.

With inflation still elevated at 22.9 per cent as of May 2025, and poverty levels worsening, the government appears to be prioritising stability over revenue acceleration, for now.

However, the IMF warned that the long-term cost of inaction could be higher if reforms stall or if subnational governments struggle to adjust.

In the meantime, the IMF continues to support Nigeria’s reform efforts, including through capacity development and the deployment of a resident advisor to assist with revenue mobilisation strategies.

The Nigeria Economic Summit Group warned that the Federal Government could face revenue shortfalls if it does not increase the value-added tax rate as part of the ongoing tax reform process.

The Chief Executive Officer of NESG, Dr. Tayo Aduloju, made this statement during an interactive media session in Abuja. He emphasised that while reforms in the VAT system are essential, maintaining the current VAT rate without an increase could lead to a significant loss of revenue for the government.

Speaking on the issue, Aduloju said, “Without those rate hikes, it means that the government might lose some revenue.” Aduloju explained that the current tax reform process must strike a balance between simplifying the tax system and increasing the VAT rate to maintain revenue stability.

According to him, simply reducing the number of taxes without adjusting the VAT rate could weaken the government’s revenue base.

ReplyReply allForwardAdd reaction
Continue Reading

Advertisement

Read Our ePaper

Top Stories

NEWS59 minutes ago

Minister Describes Death of Leon Usigbe as Monumental Loss

ShareBy Johnson Eyiangho, Abuja Minister of Information and National Orientation, Mohammed Idris has described the death of Dr Leon Usigbe,...

NEWS19 hours ago

Unique Secondary School Expands Outreach, Honors Ogbodo, Launches Scholarships

ShareBy David Torough, Abuja Unique Secondary School Makurdi (USSM), a leading private educational institution in Benue State, continues to make...

Foreign News1 day ago

Zelensky Announces New Draft Law on Anti-corruption Bodies after Protests

ShareUkrainian President Volodymyr Zelensky said he has approved the text of a draft law guaranteeing the freedom of two anti-corruption...

Entertainment/Arts/Culture1 day ago

Spotify Spotlights Fola, Thakzin as Africa’s Next Music Icons

ShareSpotify has announced Nigerian Afrobeats talent, Fola and South African Afro House DJ and producer, Thakzin, as part of its...

NEWS1 day ago

Why I Quit Banking for Music – CDQ

ShareNigerian rapper CDQ has revealed that he left a stable banking job to pursue his true passion, music. In an...

Entertainment/Arts/Culture1 day ago

Popular Chinese Singer Executed by Firing Squad over Murder of Girlfriend

SharePopular Chinese actor and singer, Zhang Yiyang has been executed for the murder of his underage girlfriend. Zhang Yiyang became...

NEWS1 day ago

Aba state: Stop Attacking Ikonne’s Patriotic Call, Analyst Warns Gov Otti

Share… Says EX-NALDA Boss Means Well, Patriotic By Mike Odiakose, Abuja A researcher and political analyst based in Abia state,...

Entertainment/Arts/Culture1 day ago

Why Igbo Men Struggle in Politics – Pete Edochie

ShareVeteran Nollywood actor, Pete Edochie, has stirred controversy with a bold statement about Igbo politicians, claiming they are not adept...

NEWS1 day ago

TRANSCORP Hotels PLC Reports Strong Performance ,Delivers N1.024BN Interim Dividend

ShareTranscorp Hotels Plc (“Transcorp Hotels” or the “Company”) (NGX: TRANSCOHOT), the hospitality subsidiary of Transnational Corporation Plc (“Transcorp Group”), has...

Entertainment/Arts/Culture1 day ago

Wizkid Becomes First African Artiste to Hit Nine Billion Streams on Spotify

ShareNigerian singer, Ayodeji Balogun, aka Wizkid, has surpassed nine billion streams across all credits on Spotify. He became the first...

Copyright © 2021 Daily Asset Limited | Powered by ObajeSoft Inc