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Reps order probe of Finance Minister, Gwarzo’s controversy

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Reps C’ttee asks FIRS to return N4.6bn to FCT

…As Official says .S. Sudan owes Sudan $1.3bn from 2012 oil deal ***

The House of Representatives on Tuesday ordered a probe into the suspension of the Director-General of the Securities and Exchange Commission, Mr. Mounir Gwarzo, by the Minister of Finance, Mrs. Kemi Adeosun, over alleged financial abuses.

At its plenary in Abuja, the House directed its Committee on Capital Market and other financial Institutions to conduct the investigation within two weeks, particularly the allegation that the suspension was as a result of the refusal of Gwarzo to halt the forensic audit of Oando Plc being carried out by SEC on the instruction of the minister.

The House, which was presided over by the Speaker, Mr. Yakubu Dogara, passed the resolution after a member from Bayelsa State, Mr. Diri Douye, moved a motion to table the suspension for debate.

The resolution also asked all parties to maintain the status quo pending the outcome of the investigation by the House.

Adeosun had last week suspended Gwarzo over allegations that he approved N104m severance package for himself while still in service, among others.

Two other top management officials of SEC were also suspended. They are the Head of the Media Division, Mr. Abdulsalam Naif, and the Head of Legal Department, Anastasia Braimoh.

But, on Tuesday, Douye’s motion indicated that the suspension of Gwarzo was reportedly fuelled by the controversy surrounding the Oando forensic audit.

“The House observes that there are allegations of interference by the Ministry of Finance in the discharge ofthe responsibilities of SEC, particularly the Oando forensic audit matter, which was largely responsible for the DG’s suspension,” the motion read in part.

However, in their contributions to the debate, some members called for investigation into the financial operations of SEC, including the alleged abuses by Gwarzo.

For instance, the Chairman, House Committee on Works, Mr. Toby Okechukwu, warned that the matter, if not diligently handled, could once again lead to a drop in activities in the capital market.

He stated, “The payment of severance allowance of N104m to the DG should be investigated. Also, the circumstances of the internal dispute between the DG and the minister should be probed. This is one way to avoid another collapse of the capital market.

“I wouldn’t know why the minister will not allow SEC to do its job. I wouldn’t know why infractions should be swept under the carpet. Nothing less than a total inquiry into what happened in SEC is what is required and not only why the DG was suspended.”

Meanwhile, SEC said on Tuesday that it would go ahead with the forensic audit of Oando Plc.

The commission said this in a letter dated December 5, 2017 and addressed to the management of Oando Plc.

The suspension of Gwarzo by Adeosun last week had been linked to the forensic audit into the financial affairs of Oando Plc.

While the Finance ministry had claimed that Gwarzo was suspended for financial impropriety, but there had been claims that he was actually suspended for his refusal to call off the forensic audit of the oil marketing firm.

But the commission in a statement on Tuesday said a letter had been written to the management of Oando informing it that the audit would go on as planned.

It said the decision to conduct the audit was in line with its zero tolerance for infractions in the capital market.

The statement read in part, “The Securities and Exchange Commission has reiterated its decision to conduct a forensic exercise into the activities of Oando Plc. This commitment is contained in a letter dated December 5, 2017 addressed to Oando Plc.

“The commission wishes to assure the general public of its zero tolerance for infractions in the Nigerian capital market.”

In the meantime, South Sudan still owes neighbouring Sudan 1.3 billion dollars from a 2012 deal that ended a dispute over oil payments between the two nations, former deputy finance minister told Reuters.

According to former deputy minister Mou Thiik, the previously undisclosed amount is equivalent to eight years worth of oil revenues for South Sudan at current prices.

He spoke to Reuters on Friday and was removed from his post by President Salva Kiir later that day.

Finance Minister Stephen Dau did not answer calls or text messages.

Oil minister Ezekiel Gatkuoth also did not answer calls or text messages.

Information minister Michael Makuei said he could not comment on figures.

In 2012, South Sudan shut down oil output after it could not reach an agreement with neighboring Sudan, its former ruler, on payment to use its infrastructure to export crude from its oilfields.

South Sudan eventually agreed to pay three billion dollars to Khartoum in a late 2012 agreement.

South Sudan is also supposed to pay royalties fees for each barrel of oil it exports through Sudan.

Thiik said Juba still owes 1.3 billion dollars of that original amount.

The debt underscores the ruinous state of the economy of the world’s youngest nation amid a four-year civil war that has killed tens of thousands of people, forced four million people to flee their homes and slashed oil output, the main source of revenues.

Juba has not paid soldiers or civil servants for most of this year.

It was not clear if the 1.3 billion dollars debt included the arrears that landlocked Juba continues to rack up with Khartoum, the amount agreed in 2012 was roughly 26 dollars in fees for each barrel of South Sudanese crude piped to Port Sudan.

Sudan has been collecting some of those fees via an oil-for-cash arrangement, in which Khartoum takes cargoes of South Sudanese crude, but arrears are substantial.

The International Monetary Fund estimated that in the 2015 and 2016 financial year, Juba accumulated 291 million dollars in payment arrears related to the 2012 deal.

In the 2017 and 2018 budget passed in August, Juba acknowledged it would continue to accrue debt to Khartoum.

“It is likely that it will not be possible to honor the renewed 2012 (agreement) and make full payments to Sudan,” read the budget on the finance ministry’s website.

Additional report from Punch

Economy

NGX Market Capitalisation Gains N836bn

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

…Tantalizers, NASCON lead the losers’ chart 

The Nigerian Exchange Ltd.(NGX) market capitalisation, which opened at N57.697 trillion on Tuesday, gained N836 billion or 1.45 percent closing at N58.533 trillion.

Also, the All-Share Index rose by 1.45 percent or 1,480 points to close at 103,524.44, as against 102,044.84 recorded on Monday.

As a result, the Year-To-Date (YTD) return rose to 38.45 percent.

Interest in Telco heavyweight and Tier-one banks such as MTN Nigeria, UBA, Access Corporation, Guaranty Trust Holding Company(GTCO), and sustained interest in Transcorp Power(TransPower) kept the market in the green.

Market breadth closed positive with 35 gainers and 14 losers.

On the gainer’s chart, UBA led in percentage terms of 10 to close at N25.30, followed by MTN by 9.98 percent to close at N243.50 per share.

Julius Berger also gained 9.71 percent to close at N61, While Access Corporation rose by 9.51 percent to close at N22.45 per share.

Veritas Kapital Assurance went up by 9.38 percent to close at 70k per share.

Conversely, Tantalizers led the loser’s chart by 7.89 percent to close at 35k, and National Salt Company of Nigeria(NASCON) trailed by 6.77 percent to close at N53.70.

Morison Industries Plc shed 6.62 percent to close at N1.41, C&I Leasing lost 6.45 percent to close at N3.48, while Cutix Plc dropped 6.30 percent to close at N2.53 per share.

However, analysis of the market activities showed trade turnover settled lower, relative to the previous session.

The value of transactions was also down by 16.76 percent.

A total of 565.79 million shares valued at N14.23 billion were exchanged in 11,519 deals,  compared to 436.90 million shares valued at N17.09 billion exchanged in 11,344 deals traded on Monday.

On the activity chart, Transcorp led in volume with 170.72 million shares traded at a value of N3.13 billion, Access Corporation followed by 48.57 million shares valued at N1.06 billion.

GTCO sold 39.04 million shares worth N165.80 million, Jaiz Bank traded 36.78 million shares valued at N72.51 million and UBA transacted 31.96 million shares valued at N796.24 million

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Economy

SIFAX Group Appoints Basil Agboarumi As Executive Director

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SIFAX Group, one of the leading business conglomerates in Nigeria with investment in Maritime, Aviation, Oil & Gas, Haulage & Logistics, Financial Services, and Hospitality, has appointed Basil Agboarumi as its new Executive Director of corporate and Intergovernmental Affairs.

Agboarumi recently completed his term as the Managing Director/CEO of the Skyway Aviation Handling Company Plc. (SAHCO Plc.), one of the subsidiaries of SIFAX Group.

Agboarumi holds a National Diploma (OND) in Mass Communication from the Federal Polytechnic, Auchi and a Higher National Diploma (HND) in Mass Communication from the Federal Polytechnic, Oko, a Master in Communications (MSc) from the Lagos State University and a Certificate in Creative Design & Digital Communications from the School of Media & Communications of the Pan-Atlantic University, Lagos. He also holds a Management Certificate in Civil Aviation from Concordia University, Montreal, Canada.

Basil Agboarumi, Executive Director, Corporate and Intergovernmental Affairs

After the privatization and subsequent takeover of SAHCOL by SIFAX Group in 2009, Agboarumi was appointed the Head of Corporate Communications to spearhead the re-branding of the new company. He was subsequently appointed the company’s Managing Director in 2018. Under his leadership, SAHCO Plc was listed on the Nigeria Stock Exchange while many airlines, both local and foreign, signed business deals with the company due to its excellent and cutting-edge services which include passenger handling, ramp handling, and cargo handling.

Agboarumi has over 25 years of professional in public relations, reputation management, brand development, media relations, business development, and government relations.

Speaking on the new appointment, Dr. Taiwo Afolabi, Chairman, SIFAX Group, said Agboarumi brings vast experience and records of achievements to his new role, adding that these qualities will help him succeed in the new role.

He said: “He demonstrated the capacity and ability to navigate different terrains as a leader during his time as the Managing Director of SAHCO. The COVID-19 pandemic hit shortly after he took over the reins at SAHCO, but he was able to steer the ship of the company to profitability despite the uncertainties that characterised the global aviation business at the time. I am convinced the Group will benefit tremendously from his wealth of experience as he assumes this new role.”

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Economy

NGX All-Share Index Crosses 100,000 Mark

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

…Guinness Nigeria and FTN Cocoa Processors lead the losers’ table

The All-Share Index, one of the performance indices of the Nigerian Exchange Ltd.(NGX), on Thursday, crossed a 100,000 mark for the second time in the year.

Having crossed the mark on Jan. 24, and later dropped, the All-Share Index specifically added 0.75 percent or 744 points to settle at 100,335.3, compared to 99,591.64 posted on Wednesday.

Consequently, investors gained N420 billion or 0.75 percent, as the market capitalisation which opened at N56.310 trillion, closed at N56.730 trillion.

Also, the Year-To-Date (YTD)return rose to 33.19 percent.

Improved buy interest in the shares of Dangote Sugar, MTN Nigeria, Transcorp Power, Oando Plc, and Cornerstone, alongside other top gainers drove the equity market to a positive terrain.

Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 9.11 percent.

However, market breadth closed negative with 33 losers and 25 gainers.

On the gainers table, Dangote Sugar and MTN led in percentage terms of 10 percent each to close at N50.60 and N201.30 per share, respectively.

Transcorp Power followed closely by 9.99 percent to close at N351.30, while Juli Plc added 9.96 percent to close at N4.97 per share.

National Salt Company of Nigeria (NSCN) rose by 9.92 percent to close at N47.65 per share.

On the other hand, Guinness Nigeria and FTN Cocoa Processors led the losers’ table by 10 percent each to close at N45.90 and N1.53 per share, respectively.

Transcorp also lost 9.95 percent to close at N17.10, Ikeja Hotel shed 9.93 percent to close at N6.08, while Redstarex declined by 9.87 percent to close at N3.38 per share.

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

A total of 554.72 million shares valued at N17.73 billion were exchanged in 9,708 deals, compared to 416.48 million shares valued at N19.51 billion exchanged in 9,338 deals.

On the activity table, Transnational Corporation (Transcorp) led both in volume and value with 301.36 million shares traded in value of  N5.65 billion.

Sterling Nigeria sold 33.32 million shares worth N150.78 million, while FBN Holdings traded 23.21 million shares valued at N773.91 million.

Also, United Bank of Africa (UBA) transacted 18.38 million shares worth N400.29 million and Zenith Bank sold 17.08 million shares valued at N583.93 million.

Reacting, a stockbroker with Premium Capital, Mr Victor Ibrahim, said that the improved performance of the equity market was due to renewed investors’ expectations from the current government’s policies.

Ibrahim stated in Lagos that investors were keying into the future benefits of the economy by boosting their investment in the equity market.

He said, “The stock market is a leading indicator of the Nigerian economy and as such, with government policies such as the free-flow economy, investors confidence in our market has been boosted.

“The artificial scarcity of dollars in order to underprice or devalue the Naira is also another indicator.

“This is because the price of stocks in the Nigerian equity market is cheaper for foreign investors and those local investors who have dollars in reserve.

“While the Nigerian economy may presently appear tough, investors are keying into the future opportunities in the current government’s policies with the belief in the capacity of President Bola Tinubu.”

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