NCAA Grants Izy Air Operator’s Certificate

January 11, 2016

The Nigerian Civil Aviation Authority, NCAA, has granted a Nigeria-based private jet charter company, Izy Air Limited, Air Operator’s Certificate (AOC).

At the ceremony at NCAA office, Ikeja, Lagos where the certificate was presented to president of Izy Air Ltd, Alex Izinyon II by the NCAA Director of Operations and Training, Captain Abdullahi Sidi, the organisation said it is determined to give its clients the best in private jet services.

Izinyon said the company is pleased to offer its incorporated services as a provider of executive charter, aircraft sales, aircraft purchase, management services and operation services to its clients.

The airline’s fleet of modern jet aircraft such as the luxurious Hawker 800/900XP series and the Bombardier challenger 601/604 series are immediately available for charter from the company’s base in Abuja, Nigeria, he said.

Izinyon when asked what should be expected of Izy Air Limited with the grant of the AOC said, “With the acquisition of our AOC, we are very much positioned to carry out an increase in services provided to our clients. We hope to change business aviation in Nigeria.

“Throughout 2016, we are focusing on improving our customer experience in all our flights; provide a more efficient management service programme for private jet owners centred around efficiency and reduced costs and help corporations and individuals with more efficient and seamless air logistics services, within and outside Nigeria,” he said.

Banking Stocks Recorded N853.8billion Loss in 2015

January 11, 2016

Banking stocks were hit badly in 2015 as 13 banking and three bank affiliate stocks record huge decline of N853.820 billion in their share prices.

The woe in banking and bank affiliate stocks reduced their stock prices drastically during the review period of 2015.

The loss recorded in 13 bank stocks during the year under review was 52.45 per cent of N1.628 trillion of entire equities’ loss in the year.

At the end of the year none of the most vibrant sector stocks traded above N20.00 kobo despite that Guaranty Trust Bank and Stanbic IBTC Holdings shares opened the year above N20.00 kobo.
Investigation carried out by Daily Trust revealed that only two banking stocks appreciated during the year 2015.

A breakdown of banking stocks transactions in 2015 indicates that Guaranty Trust Bank share recorded the highest loss in terms of value with N206.018 billion from N25.18 kobo to end the year with N18.18 kobo as it has 29.431 billion shares outstanding.

Zenith Bank value followed by N136.889 billion dropped from N18.41 kobo per share to close at N14.05 kobo.

FBN Holdings dropped N131.736 billion as it has 35.895 billion shares outstanding. It share price dropped from N8.80 kobo to N5.13 kobo per share in the year.

Stanbic IBTC Holdings share price declined from N27.00 kobo to N16.53 kobo during the year. It depreciated by N104.700 billion in market capitalisation in 2015.

Also, Diamond Bank share value in 2015 dropped by N75.966 billion as it share price moved down from N5.58 kobo to end the year with N2.30 kobo. Access Bank suffered a loss of N50.624 billion in its share value from N6.60 kobo it opened the year to N4.85 kobo it closed the year.

Other banking and bank affiliate stocks that dropped during the review year are UBA, Ecobank Transnational Incorporated, Union Bank and Sterling Bank with N33.377 billion, N32.662 billion and N20.441 billion respectively.

While FCMB, Skye Bank and Fidelity Bank market capitalisations fell by N15.842 billion, N14.991 billion and N3.477 billion correspondingly.

Only two banking stocks namely, Unity Bank and Wema Bank stocks appreciated in price between January to December 2015.

CBN Assures Dangote of Forex Support for $14billion Refinery

January 11, 2016

The Central Bank of Nigeria, CBN, has promised to assist the Dangote Group to access foreign exchange to facilitate its $14 billion refinery project.

CBN Governor, Godwin Emefiele said this on Sunday, January 10, during a tour of the refinery at its location within the Lekki Free Trade Zone in Lagos.

The refinery is projected to refine 650,000 barrels of crude oil per day.

Emefiele said the CBN support was to ease the importation of equipment needed to bring the Dangote refinery to reality.

“Your $14 billion refinery investment will enjoy our support, no doubt.

“We are doing this to fast-track the importation of equipment you need for a speedy completion of that project and to encourage other Nigerians to follow your lead,’’ Emefiele said.

He added that the tour was aimed at lending the CBN’s support to the “project that will transform Nigeria’s downstream oil sector”.

“The Dangote Group approached us to indicate their interest to invest in refining crude, such that petrol-chemicals, fertiliser and fuel will be produced.

“Today, the three projects, which are valued at $14 billion (N2.8 trillion) are on course and this is highly commendable, ‘’ he said.

Shale Oil Firms in Panic Over Low Crude Price

January 11, 2016

U.S. shale companies are beginning to panic in the new year as a global supply glut sinks crude further to 11-year lows, putting added financial stress on the most heavily indebted.

Debt and equity investors have all but given up on the exploration and production sector as oil prices tumble lower. In the last year, the SIG index of oil companies .EPX fell 42 percent, compared with a 0.6 percent decline in the Standard & Poor’s 500 index .

SandRidge Energy Inc, a once high-flying Oklahoma-based shale company backed by billionaire investors Leon Cooperman and Canada’s Prem Watsa, was delisted by the New York Stock Exchange on Wednesday. The stock last traded on the NYSE for less than 20 cents a share.

Though companies ended 2015 with enough cash on hand to cover interest payments for well into next year, they cannot afford to drill new wells. The gloomier outlook is expected to prod more of them to restructure and give up on trying to ride out a downdraft showing no signs of abating soon.

Oil CLc1 is down 10 percent since Dec. 31 to $33 a barrel, falling away from the crucial $50 to $60 level that many shale companies need for long-term survival.

“You are going to see a lot more bankruptcies and restructurings this year,” said Bill Costello, an energy analyst at Westwood Holdings Group Inc. “This year is going to be much worse for companies with weak balance sheets.”

“Katsina Airport Terminal Ready for Commissioning” – FAAN

January 11, 2016

Managing Director of the Federal Airports Authority of Nigeria, FAAN, Saleh Dunoma, has disclosed that construction work at the Katsina Airport terminal has been completed and the project is ready for commissioning.

Dunoma said the authority is presently putting finishing touches for final takeover of the new terminal.
Speaking on the viability of the airport, he explained that the airport is of strategic importance and relevance as it would serve as alternative to other airports in the North.

He added that the terminal would add substantial value to the revenue generation drive of FAAN through annual the Hajj operations.

He also stated that the authority would continue to prioritize safety and security in line with international best practices.

The airport constructed in 1991 was being operated as airstrip before being upgraded to operate standard operations, according to a statement by spokesman of FAAN, Yakubu Dati.

Meanwhile, the MD while receiving officers of the Federal Road Safety Corps (FRSC) said the authority would continue to do its best to ensure safety and security on the Murtala Muhammed International Airport (MMIA) Access Road, Lagos.

It was learnt that the meeting was centred on providing a safe and secure driveway along MMIA Access Road, Lagos by permanently vacating the petroleum tankers positioned along that road.

SEC Set to Clear N80billion Unclaimed Dividends

January 11, 2016

Its Head, Corporate Communications, Naif Abdussalam, said that the capital market regulator would this week commence a road show to sensitise Nigerians on their rights to the unclaimed dividends and how to redeem them before holding a Town Hall meeting with stakeholders on the matter.

He said the SEC, has “directed all registrars of public companies to return all unclaimed dividends, which have been in their custody for 15 months and above, to the paying companies.”

The SEC also notified the public that enrolment for e-Dividend payments could now be efficiently conducted at bank and registrar branches nationwide through the online platform launched on July 29, last year.

The e-Dividend scheme, Abdussalam said, “has been a priority initiative for the entire capital market in a bid to curb the growth of unclaimed dividends and improve the overall efficiency of Nigeria’s equities markets.”

Chevron Commits N1.9billion to Community Development Projects

January 11, 2016

Multinational oil company, Chevron Nigeria Limited (CNL) has provided over $10 million (aboutN1.9 billion), to fund various infrastructural and non-infrastructural community development projects in its operational areas in Nigeria in the last one year.

These projects are under its Global Memorandum of Understanding (GMoU), its Manager, Communications Policy, Government & Public Affairs, A. O. Adebawo, has said.

He spoke at the company’s headquarters in Lagos during the presentation of a prize to the Nigerian Media Merit Award (NMMA) 2015 winner of ‘Chevron Prize for Oil & Gas Reporter of the Year,’ to The Nation’s Assistant Editor Chikodi Okereocha.

He said under the GMoU, which improves local participation in determining the needs Chevron’s programs should address by giving host communities a greater role in managing their development through Regional Development Councils (RDCs), the company had spent over $10million in the last one year.

Adebawo said on the strength of the GMoU, which has brought peace and stability to areas where Chevron operates, several communities have benefited from projects including water supplies, rural electrification projects, school building, cottage hospital, road and drainage networks, town halls, housing for displaced people, scholarship, and micro-credit scheme among others.

CNL endowed the Chevron Prize for Oil & Gas Reporter of the Year category.

Adebawo said Chevron’s GMoU, a new and innovative approach to engagement with host oil communities, has significantly improved relationship with host communities.

Nigeria Breweries Saves N2.5billion from Energy Efficiency

January 11, 2016

Nigeria Breweries Plc (NBL) has said it saved N2.5billion from energy efficiency, adding that the company has recorded annual energy efficiency increase through production volumes increase yearly since its application in 2009.

Managing Director/CEO, Nicholaas A. Vervelde, who revealed this said plans are on top gear to switch from diesel to gas.

He said: “We have extended the number of breweries that are natural gas from three to four. Others will switch in future. These will significantly reduce our carbon footprint and operating cost.”

Vervelde stated this in a document titled: “Sustainability report” made available to our reporter.

He said the firm’s subsidiary, Aba Brewery, achieved 49 per cent reduction in thermal energy consumption representing nearly 80 million standard cubic feet of gas not burned to release Co2 into the atmosphere thereby saving on estimated electricity consumption by nearly 600 averaged sized homes.

In addition, he said the amount of carbon would have required more than 110,000 trees grown for 10 years, noting it remains the best thermal energy consumption results in the entire Heineken world.

Ford Sets New Record With 1.1million Sales in 2015

January 11, 2016

American automobile manufacturer, Ford, has reported record sales of about 1.1 million vehicles in China in 2015.

The Dearborn, Michigan, automaker said on Friday, January 8 that its 2015 sales in the country were up by three percent from the previous year as demand for small sport-utility vehicles there continues to grow.

It also set a new monthly sales record in December, selling 124,768 vehicles. That’s up 27 percent from the prior-year period.

Ford also tapped into China’s booming market for luxury cars with 11,630 Lincoln vehicles sold during the brand’s first full year in the country, where its entire SUV line-up is offered.

Lincoln added eight more dealerships than expected for a total of 33 in the 2015.

The company is aiming for 60 dealerships in 50 cities by year-end.

“Nigeria Has Over 155Gigawatts Power Generation Deficit” – Experts

January 11, 2016

The highest electricity generation Nigeria has attained is about 4,600Mw, which is less than 5Gw, experts have said.

Meanwhile, the country should be 160 gigawatts (Gw) or 160,000 megawatts (Mw),the experts, who spoke to The Nation in Lagos on condition of anonymity, said.

They said it was laughable that the sector’s regulator, the Nigerian Electricity Regulatory Commission (NERC) would put a ceiling of N50 billion per year on the 11 electricity distribution companies (DISCOs) in the country.

They noted that NERC had to take the decision because anything above the amount may be difficult for the DISCOs to recover considering the poor revenue collections they make from electricity bills, as well as low tariff, which they said is not cost-reflective.

For the Federal Government to achieve its industrialisation aspiration, which is primarily premised on adequate and stable power supply, the sector should be opened to massive investment.

Bearish Sentiment Returns as NSE Index Sheds 0.87%

January 11, 2016

Transactions on the Nigerian Stock Exchange, NSE, closed in the Red zone on Friday, January 8, as the All Share Index dropped by 0.87 per cent to close at 27,028.39 points from 27,266.18 on Thursday, January 7.

Similarly, market capitalization plunged from N9.377 trillion to N9.296 trillion.

Okomu Oil led the gainer table of seven stocks with the highest gain of N3.25 gain or 9.85 per cent to N36.25 followed by Dangote Sugar with a gain of N0.28 or 4.86 per cent to close at N6.04 followed by Ikeja Hotel that gained N0.15 or 4.81 per cent to close at N3.27 per share.

On the other hand, Honywell Flour topped 29 stocks on the losers’ chart with N0.17 loss or 8.95 per cent to close at N1.73 followed by Unity Bank that lost 0.08 or 8.60 per cent to close at N0.85 per share, and Flour Mill that lost N1.04 or 5 per cent to close at N19.76 per share.

All together, a total of 235,554,505 shares worth N1.938 billion exchange hands in 2,953 deals.

External Reserves Slides to 12-year Low at $28billion

January 11, 2016

Nigeria’s external reserves have continued to slide hitting a 12-year low as it crossed the $29 billion mark to a 30-day moving average of $28.931 billion as at Friday January 8, 2016.

This brings the total decline of the reserves from the beginning of December 2015 to 3.17 per cent.

The reserves which was at $29.880 billion as at December 1, 2015 had dropped by 2.7 per cent within the month to $29.069 the last day of last year before a further shed of $138.668 million dollars between December 31, 2015 and January 7, 2016.

Having hovered around $30 billion since September last year, the reserves began a steady decline in December, crossing over to $29 billion which it maintained throughout the month before it hit $28 on January 4, 2016 which is the latest figure given by the Central Bank of Nigeria.

The external reserves had depreciated by 14.1 per cent last year having fallen from fallen from $34.46 billion which it was as at December 31, 2014 to $29.069 billion as at December 31, 2015 according to figures given by the Central Bank of Nigeria (CBN) on its website, covering barely four months of imports.

A source within the CBN explained that the decline was due to the fact that the level of inflow into the reserves was lower than the level of outflow during the 30-day period.

According to Olubunmi Asaolu of FBN Quest Research, the dropping level of the reserves also reflects the falling oil prices at the international market.

CBN May Announce New Exchange Rate Band Of N185-N220 In Q1 2016

January 11, 2016

The Central Bank of Nigeria, CBN, may announce a new exchange rate band, with a floor of N185 and a ceiling of N220 in the first quarter of 2016 in an effort to bring the external and domestic economic variable into equilibrium.

Some analysts have expressed optimism that the apex bank may unveil the new band when the Monetary Policy Committee (MPC) meets in two weeks, at a time when there are mixed signals on the direction of monetary policy in Nigeria.

Bismarck Rewane, chief executive officer, Financial Derivatives Company (FDC) said interest rate will likely respond to the new band.

Money market rates are already at an all-time low.

“We expect to see a creeping up of rates as the level of government borrowing increases”, he said.

The anticipated tweak in the exchange rate band is expected to slowdown the rate of depletion,of the external reserves, already below $29 billion, as the demand pressure eases.

BUA Divests From Flour Mill Business In Fresh $275million Deal

January 11, 2016

BUA Group has announced the divestment of its flour business to Olam International in a deal worth $275million.

Founder, BUA Group, Abdulsamad Rabiu, who spoke at the signing ceremony over the weekend, said: “This signing marks a major milestone in our medium term strategy. Over the years, we have run one of the largest and most efficient flour milling businesses in Nigeria and are confident in the value it will add to the buyer’s operations.”

“Our Group’s strategic focus will now be to diversify to business areas with greater potential for export where the sourcing and utilisation of foreign exchange is less and most of the materials needed for production can be sourced locally whilst also positioning our current line of Foods and Infrastructure businesses for market leadership.”

Further speaking on the Group’s medium term growth strategy, Alhaji Rabiu, who is also the executive chairman of BUA, said that expanding the backward integration of its sugar plantations in Kwara and Kogi States is key.

“Extensive work is ongoing in Lafiagi, Kwara State with over 20,000 hectares and we have another 50,000 hectares of farmland in Bassa, Kogi. These two operations form the fulcrum of our backward integration programme for sugar and this will further reduce the country’s dependence on imported raw sugar while supporting the value chain in sugar production within Nigeria

“Similarly, we expect to replicate the successes we have recorded through the deep integration of our cement operations.”

“With most raw materials for cement currently being sourced locally, we have been able to scale up operations significantly with minimal dependence on foreign exchange and will soon start exporting to neighbouring countries from both our Obu and Sokoto plants which are currently undergoing 3.5million MTPA and 1.5million MTPA capacity expansions respectively to bring the Group’s cement production capacity to around 10 million MTPA by 2018,” he added.

NASS Shuns New Auto Policy In N4.7billion Vehicles Acquisition Plan

January 11, 2016

Indications have emerged that the National Assembly, NASS, may have discarded the nation’s automotive policy.

This assumption is coming as both the executive and the legislature unveiled plan to acquire various automobiles budgeted at a whopping N4.7 billion for the National Assembly and over N3.7 billion for principal officials of the federal government is implemented.

Findings by Leadership revealed that, of all the cars, sports utility vehicles (SUVs) and other logistics vehicles to be purchased by both the National Assembly and the presidency, none of them is from among the locally assembled models in the country, raising doubts on the support of the government to the celebrated national automotive policy.

While the Presidency voted the sum of N3.63 billion for BMW saloon cars for principal officers and another N189.1 million voted for tyres for various vehicles, including the bulletproof and plain Mercedes Benz cars being used in the Presidency in the 2016 budget, the Senate plans to spend its share of the total sum of N4.7 billion on Toyota Land Cruisers 2016 model for its 109 members. The senators also want their vehicles to come with integrated navigator cruise control, and QI-Compartible wireless charging and Kinetic dynamic suspension system.

The House of Representatives plans to buy two Mercedes Benz S550 2016 Model, with full option and bullet proof, as well as 14 Toyota Land Cruisers, 5.7L petrol engine, 2016 Model, with full option and keyless entry.

The identities of the choice cars for the members of the legislature were contained in an advertorial placed in one of the national dailies on November 13.

Other favored car brands and models include American brand, V8, VXR “with intelligence,” Peugeot 607 and 406 sedans, Prado jeeps, Hilux vans and other exotic Toyota models, broadly described as “utility and operational vehicles.” None of these are currently being assembled in Nigeria.

While Toyota, Mercedes and BMW cars are not being assembled in the country at the moment, PAN Nigeria has not commenced local manufacturing of Peugeot 607 and 406 models, suggesting the government and the NASS will have to source the vehicles from abroad, a rejection of the made-in-Nigeria brands and models.

Automobile industry investors and stakeholders who spoke on the matter lamented that the plan of the government to source the vehicles from outside the country, stressing that sourcing the automobiles from the local industry would save the country from huge capital flight that leads to severe loss of foreign exchange.

Stock Market Loses N555billion in First Trading Week

January 10, 2016

Transactions on the Nigerian Stock Exchange, NSE, kick started the year 2016 on negative note run as 190 equities listed declined by N555 billion during the first trading week of the year.

Index movement indicates that the NSE All-Share Index and market capitalization depreciated by 5.63 per cent to close the week at 27,028.39 and N9.296 trillion respectively.

Similarly, all other Indices finished lower during the week, with the exception of the NSE Industrial Goods Index that rose by 0.45 per cent to close at 2,176.44.

At the end of the week, a turnover of 899.604 million shares worth N7.669 billion in 14,164 deals were traded by investors on the floor of the exchange in contrast to a total of 2.965 billion shares valued at N9.364 billion that exchanged hands last week in 7,174 deals.

The Financial Services Industry (measured by volume) led the activity chart with 764.790 million shares valued at N4.858 billion traded in 8,904 deals; thus contributing 85.01 per cent and 63.34 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 40.164 million shares worth N100.471 million in 626 deals. The third place was occupied by the Consumer Goods Industry with a turnover of 40.006 million shares worth N1.707 billion in 2,116 deals.

Trading in the top three equities namely Access Bank Plc, Guaranty Trust Bank Plc and United Bank for Africa Plc.(measured by volume) accounted for 339.027 million shares worth N2.800 billion in 3,116 deals, contributing 37.69 per cent and 36.51 per cent to the total equity turnover volume and value respectively.

Day by day trading indicates that the year opens on the bears as local bourse losing 271.93 basis points to close at 28,370.32 points on the first trading day in 2016.

Consequently market capitalization lost N94 billion to settle at N9.757 trillion. In line with the direction of Monday trading sentiments, market activity measured by value and volume traded deceased. The value traded lost 81.5 per cent to settle at N700.5 million while the volume traded decreased to 99 million units respectively. Market breadth settled at a positive as 12 stocks appreciated in prices against 18 depreciations.

The Consumer Services sector started the week on a negative footing, as losses in Nigeria Breweries and Nestle Nigeria drove a negative 2.9 per cent return. Despite the gains of 1.8 per cent in Zenith Bank, the Financial Services sector also returned negative 0.4 per cent based on losses of 4.9 per cent and 0.7 per cent seen in FBN Holdings and Guaranty Trust Bank respectively. Oando’s 1.7 per cent gain contributed to the Oil and Gas sectors 0.1 per cent return. Regardless of the flat daily return in Dangote Cement, the Industrial Goods sector returned negative 0.1 per cent on the back of a 4 per cent decrease in Ashaka Cement share price.

Oil Market Speculators Bet on $15 Per Barrel in 2016

January 10, 2016

As crude oil price continue to slide, global speculators are reported to be buying put options contracts that will only pay out if price drops to as low as $15 a barrel in 2017, the latest sign some investors expect an even deeper slump in energy prices.

The prices on Wednesday dipped below $35 per barrel for the first time since 2004, tumbling more than five percent as the row between Saudi Arabia and Iran made any cooperation between major exporters on cutting crude oil supply to the international market more unlikely.

The diplomatic rift between Saudi Arabia and Iran after the Saudi execution of a Shi’ite cleric, Nimr al-Nimris believed to have ended speculation that the Organisation of Petroleum Exporting Countries (OPEC) could agree to cut production to lift the price of oil.

Riyadh had called off diplomatic ties with Tehran over Iran’s response to the execution of the Saudi Shi’ite cleric, while the United Arab Emirates and Kuwait have backed Saudi Arabia in the diplomatic crisis that could deepen sectarian tension in the Arab world.

Bloomberg reported that the bearish wagers come as OPEC’s effective scrapping of output limits, Iran’s anticipated return to the market and the resilience of production from countries such as Russia raise the prospect of a prolonged global oil glut.

Head of Commodities Research at Goldman Sachs Group Inc, Mr. Jeffrey Currie was quoted as saying that the oversupply would continue into 2017, adding there is risk oil prices would fall to $20 a barrel to force production shutdowns if mild weather continues to damp demand.

The bearish outlook has prompted investors to buy put options , which give them the right to sell at a predetermined price and time at strike prices of $30, $25, $20 and even $15 a barrel, according to data from the New York Mercantile Exchange and the United States Depository Trust & Clearing Corp.

West Texas Intermediate (WTI), the United States benchmark, is currently trading at about $36 a barrel.
The data, which only covers options deals that have been put through the US exchange or cleared, is viewed as a proxy for the overall market and volumes have increased this week as oil plunged.

Investors can buy options contracts in the bilateral, over-the-counter market too. They have bought increasing volumes of put options that will pay out if the price of WTI drops to $20 to $30 a barrel next year, the data shows.

“N50billion Capital Expenditure Inadequate to Improve Supply” – Electricity Distributors

January 10, 2016

The Association of Electricity Distributors, ANED, has stated that the, CAPEX, allowed for electricity distribution companies (DISCOs) yearly was inadequate to meet the expected improvement in the nation’s power sector.

Executive Director, Sunday Olurotimi Oduntan, who stated this at a press conference in Lagos, advocated the need to exempt the Credit Advance Payment for Metering Implementation (CAPMI) from the limit placed on CAPEX, even as he expressed displeasure over the huge gap in the nation’s power sector funding over the years.

He said: “According to the power sector privatisation agreement, all the DISCOs can only invest an average of N50 billion in a year because of the present tariff structure,” he stated.

“But if the CAPMI is exempted from the CAPEX limit, our members can channel their investment into metering all the customers without affecting other intended investment in infrastructural development to boost power supply across their networks,” Oduntan added.

Chief Executive Officer, Benin Electricity Distribution Company (BEDC), Mrs Funke Osibodu, stated that DISCOs take the blame for every problem in the power sector because they directly interface with the power consumers.

“We don’t have control over generation and transmission. We are like collection agents for the entire power industry. Across the financial value chain in the Nigeria Electricity Supply Industry (NESI), we get just 25 per cent of the total collections,” she explained.

“Once we collect the billing from the customers, the generation companies (GENCOS) get 60 per cent, Transmission Company of Nigeria (TCN) gets 11 per cent… We are directed to meter all our customers within one year, but we are constrained by the limit of CAPEX that we can invest.

SEC Summons BGL Group over N2.9billion Infraction

January 10, 2016

The Securities and Exchange Commission, SEC, has ordered suspended BGL Group and their sponsors to appear before the Administrative Proceedings Committee (APC) on February 3.

The capital market regulator said it has invited the BGL Group, which consists of BGL Securities, BGL Assets Management and their sponsors to appear before the APC.

SEC said the summons was prompted by the receipt of 10 new complaints, valued at over N2.9 billion, against the group between May 20 and November 10, 2015 from various investors.

The commission said the investors have alleged several violations of the Investments and Securities Act (2007), SEC Rules and Regulations as well as the Code of Conduct for Capital Market Operators, including performance of a capital market function without due registration, promoting and marketing products not registered by the commission.

Others allegation against BGL are failure/refusal to resolve clients’ complaints, failure to file statutory returns and furnishing the commission with false and misleading information.

Auctioneers Charge Buhari to Probe Sale of NITEL/MTEL

January 10, 2016

Following the outrage that trailed the sale of NITEL/MTEL obsolete items, the National President of the Nigeria Association of Auctioneers, NAA, Aliyu Kiliya, has called on President Muhammadu Buhari to probe the sale of the former leading telecoms operator in the country.

Kiliya made the appeal in an open letter to the Vice President, Yemi Osinbajo and the Chairman Council of Propertisation, a copy of which was made available to reporters on Friday, January 8 in Bauchi.

“The National Association of Auctioneers (NAA) as stakeholders filed a case in Bauchi Federal High Court against the liquidator who was appointed by the Bureau for Public Enterprise (BPE).

“We feel disappointed by the way and manner NITEL and MTEL sale was carried out.

“The items were supposed to be sold by open and competitive bidding, instead of secret bidding,” Kiliya said.

He said the NAA is dismayed that despite the direction by the Federal High Court judge that status quo should be maintained, it was regretable that NETCOM Company Limited has taken over the disposal of all the items of NITEL/MTEL nationwide, contravening the order that was given by the court.

“In this regard we are appealing to your good office to as a matter of urgency to kindly stop immediately the selling of NITEL/MTEL as we believe that a lot of revenue is being looted that is why they are rushing to sell and if this is allowed to happen a lot of revenue will be lost,”he said.