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Regulatory risk biggest problem for businesses in Nigeria — Utomi



Nigeria @ 60: 120 eminent Nigerian elders, leaders for National Dialogue — Utomi

…As SON threatens to shut down defaulting manufacturers factories!***

Stakeholders in the private sector on Tuesday identified regulatory challenges as the nation’s biggest risk to business survival and called for national strategy in policy formation.

This came to fore as Standard Organisation of Nigeria (SON) threatened Tuesday, to clamp down on manufacturers who failed to meet the required products certification in the country.

The stakeholders indicated this at the Regulatory Conversations 4.0 with the theme “Foreign Exchange Restrictions on Food Imports and Implications for Regulating and Growing the Nigerian Economy” in Lagos.

Speaking at the event, Prof. Pat Utomi of the Centre for Value in Leadership, said that many companies had collapsed in Nigeria due to regulatory risk and lack of national strategy.

“We should have a clear national strategy that we want to become global leaders in these one, two, three areas.

“We can do isolated industrial policy to those areas of which our endowments allow us to become competitive globally and dominate that value chain,” Utomi said.

He noted that negative legitimacy would not take the country anywhere rather it would destroy businesses and lead to increase in unemployment rate.

“The biggest risk in doing business in Nigeria is regulatory risk.

“The regulator is more likely to kill a company than any market risk,” he said.

Utomi said that systematically certain sector of the economy had been wiped out by an unthinking regulator’s actions

He said that government needed to think through the consequences of its policies before implementation, noting that restrictions would not take the country anywhere.

Utomi explained that players in the industry should educate each other on the consequences because the economy belonged to everyone.

“Part of our duty as players in this, is to say to ourselves, look this economy belongs to all of us; can we begin to educate ourselves on the consequences,” he said.

Mr Muda Yusuf, the Director-General of Lagos Chamber of Commerce and Industry (LCCI), said that the regulatory environment was one of the biggest challenges being faced currently in business in the country.

Yusuf said that regulators meant well for the country but the problem was in strategy and how to achieve it.

“Unfortunately, we don’t have regulators who are in government, who actually listens or engages so that you can have the right kind of strategy to achieve the desired result.

“There are too many regulations in the country and the damage it is doing to the economy is enormous.

“To do business with integrity in Nigeria today is a tall order,” Yusuf said.

He said that many businesses had gone under because of challenges of regulatory compliance.

According to him, many businesses have transited to become informal sector players.

The LCCI boss said that smugglers had taken over businesses in Nigeria, adding that the country was losing because smugglers don’t pay taxes.

He explained that the emphasis should be on building domestic capacity for the development of the country.

Ms Suzzy Onwuka of the Consumer Protection Council, said that foreign exchange restrictions on food imports by government was to help local producers.

Onwuka said that most government policies was to move the country forward and make the country a better place for everybody.

She said the country did have issues in the implementation of policies.

Onwuka said that though there might be pains in policy implementation in the short term, players in the industry should take it as a challenge to achieve the desired result.

Also, Mr Oluwasegun Osundipe of the Manufacturers Association of Nigeria (MAN), lamented government’s failure in consulting with important stakeholders before implementation of policies.

Osundipe called on the government to keep policies on hold to give room for proper consultation and strategies.

Mr Soji Apampa, Chief Executive Officer, Integrity Organisation/Convention on Business Integrity, said that 70,000 children die annually due to serious malnutrition.

Apampa said that government should think through policy choices to avoid negative effects.

Meanwhile, the Standard Organisation of Nigeria (SON) threatened on Tuesday to clamp down on manufacturers who failed to meet the required products certification in the country.

Also read:  SON confiscates substandard cables worth N3.5m in Osun

Dr Papa’a Pongri, Principal Standard Officer, SON, said this in Abuja, stressing the need for manufacturers to comply with the Mandatory Conformity Assessment Programme (MANCAP) initiative of the organisation to ensure that only good quality products were in circulation in the country.

“People are also branding products manufactured in Nigeria with a different country’s name; that is fraudulent and unacceptable,’’ he said.

Pongri said that the issue of porous borders had increased the rate of influx of substandard products in the country.

“There is a peculiar problem with porous borders not only to SON, but to immigration and customs as well.

“This has been of major concern to us that people smuggle in substandard products.

“Yes, the Federal Government has shut down the land borders but substandard products are still in circulation.

“So, what we need to do is to go round and get rid of all those products,’’ Pongri said.

He, however, urged the Federal Government to encourage small and medium enterprises via adequate funding mechanism to enable them grow.

“If we have information, we go round and demand SON MANCAP certificate and where there is none, we seize the product,’’ Pongri said, urging local manufacturers to strengthen their collaboration with the SON to enable it achieve its mandate.





N672Bn: Sell-offs in Dangote Cement, MTN, Others Push Equity Down By 1.23%



Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

…Dangote Cement, Conoil lead losers table

Selloffs in the shares of Dangote Cement, Conoil, and MTN Nigeria, among others, on Friday, dragged the equity market’s performance indices down by 1.23 percent to close the week’s trading sessions.

Specifically, investors lost N672 billion or 1.24 percent, as the market capitalisation, which opened at N54.707 trillion, closed at N54.035 trillion.

The All-Share Index also lost 1.24 percent or 1.228.32 points, to settle at 98,751.98, as against 99,980.3 recorded on Thursday.

Consequently, the Year-To-Date (YTD) return on the index dropped to 32.07 percent.

Selloffs in Dangote Cement, MTN Nigeria,  Fidelity Bank, Sovereign Trust Insurance, and Nestle made the market performance negative terrain.

Analysis of the market activities showed trade turnover drop when compared to the previous session, with the value of transactions down 22.01 percent.

A total of 367.62 million shares valued at N6.78 billion were exchanged in 9,168 deals, compared to 542.95 million shares valued at N8.70 billion exchanged in 9,650 deals posted previously

Meanwhile, Dangote Cement and Conoil led the losers’ table by percentage terms of 10 each to close at N135, and N90.90 per share respectively.

MTN trailed by 9.96 percent to close at N200.70, Thomas Wyatt Nigeria lost 9.78 percent to close at N2.03, while Sovereign Trust Insurance shed 6.52 percent to close at 43k per share.

On the gainers’ table, The Initiative Plc and FTN Cocoa Processors led by 10 percent each to close at N1.98 and N1.65 per share respectively.

Juli Plc followed closely by 9.97 percent to close at N3.75, Champion Breweries Plc gained 9.94 percent to close at N3.76 and PZ Nigeria rose by 9.93 percent to close at N33.75 per share.

On the activity table, Transcorp led in volume with trade of 57.00 million shares valued at N792.05 million, while Access Corporation sold 31.77 million shares worth N667.8 million.

United Bank of Africa (UBA) traded 28.50 million shares valued at N674.07 million and Fidelity Bank transacted 28.07 million shares worth N297.65.

Also, First City Monumental Bank(FCMB) sold 27.92 million shares worth N227.22 million.

However, market breadth closed positive with 43 gainers and eight losers on the trading floor

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Equity Market Recovers, Investors Gain N390bn



Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

…Sunu Assurances, CWG Plc lead the losers’ table

The Nigerian equity market on Thursday recovered from its three sessions losses, making investors to gain N390 billion.

Improved buy interest in the shares of Guaranty Trust Holding Company(GTCO), Zenith Bank, FBN Holdings, NEM Insurance, Juli Plc, among other top traders, pushed the market performances up.

Specifically, the market capitalization, which opened at N54.317 trillion, gained N390 billion or 0.72 percent and closed at N54.707 trillion.

The All-Share index also rose by 0.72 percent or 714 points to close at 99,980.3 points, compared to 99,266.02 recorded on Wednesday.

Consequently, the Year-To-Date return rose to 33.71 percent.

Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

Analysis of the market activities indicated that trade turnover settled higher relative to the Wednesday 5 session, with the value of transactions increased by 49.27 percent.

The market breadth closed positive with 35 gainers and 19 laggards on the trading floor.

On the gainers table, GTCO, NEM Insurance, Juli and United Bank of Africa(UBA) led in percentage terms of 10 each to close at N36.60, N6.60, N3.41 and N22.55 per share, respectively.

ALSO READ: NAFDAC NATIONAL STRATEGIC ACTION PLAN: Partners With Pharmaceutical Supply Chain Stakeholders

Champion Breweries also gained 9.97 percent to close at N3.42 per share.

On the other hand, Sunu Assurances led the losers’ table by 10 percent to close at N1.17, followed by Eterna Plc by 9.81 percent to close at N14.25 per share.

CWG Plc trailed by 9.76 percent to close at N9.55, Morison Industries Plc shed 9.58 percent to close at N1.51 and Cadbury Nigeria lost 9.52 percent to close at N19 per share.

A total of 542.95 million shares valued at N8.70 billion were exchanged in 9,650 deals, compared to 396.23 million shares valued at N5.83 billion exchanged in 10,549 deals posted on Wednesday.

On the activity table, UBA led in volume and value with 93.71 million shares traded in deals worth N2.07 billion, Transcorp followed with 54.08 million shares traded in a value of N692.19 million.

Japaul Gold Group sold 34.33 million shares worth N65.77 million, Sterling Nigeria transacted 28.49 million shares valued at N129.15 million and Fidelity Bank sold 27.09 million shares worth N270.74.

Meanwhile, market breadth closed positive with 35 gainers and 19 laggards on the trading floor.

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NGX Opens Week Weakly, As Market Sheds N1.82trn



Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

 …MTN and Dangote Cement lead the Losers’ Table 

Transactions resumed on the Nigerian Exchange Ltd. (NGX), on Monday, on a negative posture with the market indices declining by 3.15 percent due to selloffs.

Specifically, the market capitalisation which opened at N57.849 trillion, shed N1.82 trillion or 3.15 percent to close at N56.028 trillion.

Similarly, the All-Share Index(ASI) also dropped by 3.15 percent or 3,330 points to settle at 102,393.23, compared to 105,722.78 achieved on Friday.

As a result, the ASI Year-To-Date (YTD) return fell to 36.94 percent.

The market was dragged down due to selloffs in the shares of MTN Nigeria, Dangote Cement, and Zenith Bank.

On the losers’ table, MTN and Dangote Cement led in percentage of 10 each to close at N247.50 and N686.70 per share, respectively.

NGX Group trailed by 9.76 percent to close at N22.20, NEM insurance dropped 9.74 per cent to close at N6.95, while Tantalizers lost 9.52 percent to close at 38k per share.

On the contrary, Juli Plc led the gainers table by 9.52 percent to close at N1.61.

Dangote Cement followed with an increase of 8.64 percent to close at 88k per share.

Sunu Assurances garnered 6.74 percent to close at N1.90, while ABC Transport gained 6.67 percent to close at 96k per share.

Nigerian Aviation Handling Company Plc (NAHCO) also appreciated by 5.86 percent to close at N30.70 per share.

On the activity chart, Guaranty Trust Holding Company (GTCO) led with a trade of 28.85 million shares valued at N1.13 billion.

Also, Transcorp sold 20.14 million shares worth N275.93 million, while Access Holdings traded 15.90 million shares worth N359.5 million.

FBN Holdings sold 15.87 million shares worth N450.74 million and Zenith Bank transacted 15.84 million shares valued at N568.04 million.

Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 7.58 percent.

Meanwhile,  273.85 million shares valued at N7.44 billion were exchanged in 9,688 deals, compared to 342.52 million shares worth N8.05 billion in 8,395 deals on Friday.

Meanwhile, the market breadth closed negative with 36 declining stocks and 16 that appreciated.

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