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Running on empty: The lack of direction by the Board of the Nigerian Exchange Group

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Nigerian Exchange Group

Running on empty: The lack of direction by the Board of the Nigerian Exchange Group

Nigerian Exchange Group

When on March 30, 2017, members of the then Nigerian Stock Exchange passed a resolution at an extraordinary general meeting authorising their national council to commence the process that would demutualise the Exchange, it felt like a ray of sunshine for the average mom and pop to share in this wealth creating platform called The Nigerian Stock Exchange.

 

The idea to demutualise had been in the works since 2001; however, was not until 2015 that the Securities and Exchange Commission issued rules on the demutualisation of exchanges in Nigeria.

 

 

 

 

The demutualisation of The Nigerian Stock Exchange was eventually completed on March 10, 2021, a process that created 432 new shareholders made up of 255 dealing members (stockbrokers) and 177 ordinary members (individuals).

 

A demutualised Exchange was perceived as a major powerhouse for wealth creation. This was reflected in the price of the shares as it was listed at a price N27.90 as stockbrokers confirmed that their clients were falling over themselves to become shareholders. People were extremely reluctant to sell because of the strong profit prospects. These stockbrokers confirm that on a daily basis it got to a point that there were demand for over 50 million shares with no sellers offering to sell a single share, “AND THEN THE NIGHTMARE STARTED”

 

 

 

 

 

 

 

In September 2021 the NGX published its 2020 Financial Account, the first published result as a demutualised exchange. The result was nothing short of a nightmare, sheer disaster.

 

The new demutualised Exchange recorded an operating loss of =N=93.96 million compared to a =N=12.992 billion profit recorded by its closest rival Exchange, FMDQ for the same period.

 

 

 

 

 

 

 

With no inclination or determination to come out and bat for their newly minted shareholders the executive management and board of the NGX had no reservation spending the =N=6.02 billion income made that year on personnel and operational costs, out of =N=6.11 billion; that was 98.52% of their income (spending over =N=3.1 billion on just 269 staff members).

 

To confirm the board and management’s insensitivity to a return on investment to shareholders at that 2020 annual general meeting, instead of proffering ways to address improved returns to shareholders, their major preoccupation was to argue that The company’s executive management was not being compensated enough and to demand that shareholders dig deep into the company’s shareholders funds and allot 200,419,990 ordinary shares for the operation of a long term incentive plan for executive management consisting of a deferred bonus plan (DBP).

 

 

 

 

 

 

 

 

The equivalent value of this share bonus scheme (gift) to staff, if the company had in the alternative sold those shares in the open market at the company’s listing price would be =N=5,571,675,722.00.

 

The board was not done yet. At that same general meeting, they also asked shareholders to approve for the payment of =N=126,000,000.00 to all non-Executive members of the erstwhile National Council of the Nigerian Stock Exchange as at 31st of December 2020.

 

 

 

 

 

 

 

That was the 9th of September 2021. Fast-forward to the 7th of September 2022, the Nigerian Exchange Group published its full-year account for 2021 as posted on its website and guess what? The hemorrhaging is still persisting.

 

Just like in 2020, the company reported Income for the year 2021 of =N=6.80 billion and expense of =N=6.52 billion. And just like they did in their 2020 AGM the board and management intend to demand that the shareholders reward the Board and Executive Management for such sorry performance.

 

 

 

 

 

 

 

 

The Board, in their published notice to shareholders, are beating their chest and saying to the shareholders that they have done excellent work and that shareholders should allow them to continue on this downward trajectory for another Year.

 

The Board, from the published notice to shareholders are seeking =N=35 billion of new capital, preferably in “Dollars”, without providing an articulated capital allocation plan as well as utilisation plan.

 

 

 

 

 

 

 

Two questions, if I were a shareholder, would love to ask at this meeting holding on the 30th of September 2022: (1) Why should I trust you with new money when all you have done is frittered what you have for your personal benefit with no recourse to me, the shareholders that invested my hard-earned money into the company (2) why has the net cash position been dropping? Rather than increasing, it dropped over the years from =N=11.5 billion in 2019 to, =N=10.3 billion in 2020, to =N=7.0 billion in 2021.

 

The Shareholders of The Nigerian Exchange Group need to wake up and end this nightmare; the NGX should be a bastion of everything that is desired in a listed company.

 

 

 

 

 

 

· World-class Corporate Governance

 

· Current Chairman and Chief Executive have been at the helm for close to 11 years

 

 

 

 

 

 

· Competitive Return on Investment and Return on Equity

 

· Company has done two years post demutualisation without paying a single kobo dividend

 

 

 

 

 

 

· Best in class Expense Management programme (cost to Income earned)

 

· FMDQ cost/income of 46% for 2021

 

 

 

 

 

 

· NGX cost / income of 96% for 2021

The current market price of shares of NGX of =N=19.80 as against the listing price of =N=27.90 is a statement and reflection of investors negative perception, not just on the NGX Group and the people running it, but a declaration of non-confidence on the people running and overseeing the actual Exchange. Even the chairman alludes to this in the Chairman’s statement in the just-published annual account “the Group is trading at about 17x compared to the global peer average of 20x, which suggests that its shares are undervalued relative to other Exchanges globally.

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Caribbean countries seek Dangote’s partnership in Cement, fertiliser production

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Caribbean countries seek Dangote’s partnership in Cement, fertiliser production

Caribbean countries seek Dangote’s partnership in Cement, fertiliser production

…Grenada PM says Dangote Refinery will save Africa from being a Dumping Ground

 

The Prime Minister of Grenada, Dickon Mitchell, has described the Dangote Petroleum Refinery and Petrochemicals as a significant investment in industrialisation and manufacturing needed by developing countries for their industrial growth.

 

He noted that it is through this type of investment that Africa and the developing countries can reverse the cycle of exporting raw materials while importing finished products from developed countries.

This is as Dangote hinted at potential partnerships with the Caribbean community in the production of cement and fertilisers as well as petroleum products.

Caribbean countries seek Dangote’s partnership in Cement, fertiliser production

Mitchell, who is the chairman of the Caribbean Community (CARICOM or CC) – a political and economic union of 15 member states and five associated members throughout the Americas, The Caribbean and Atlantic Ocean, disclosed this on Thursday during his tour of the Dangote Petroleum refinery and Petrochemicals complex in Ibeju Lekki, Lagos.

 

Mitchell said the investment is a tribute to the President of Dangote Group, Aliko Dangote and his vision not just for Nigeria but Africa as a whole.

 

“This investment is a tribute to Dangote and his remarkable vision. It is the first of its kind in Nigeria and Africa, symbolising what the developing world needs: significant investment in industrialisation and manufacturing. This is an incredible achievement and a testament to Mr. Dangote’s vision, not just for his company, but for Nigeria and Africa as a whole.

“Dangote exemplifies what an African leader should be. We need not just political leaders, but business leaders who are willing to invest in Africa, particularly in manufacturing and industrialisation. We must ensure that we don’t continue to export our raw materials to the developed world, where they can be turned into sophisticated products and sent back to us. We need to reverse that cycle; it is the only way to grow the wealth of Africa and the developing world. Additionally, we need to support this with training and invest in job opportunities,” he said.

Applauding the sophistication and automation at the refinery, the Prime Minister expressed optimism for Nigeria’s future, especially given the number of young Nigerians trained and working at both the refinery and fertiliser plants. The $20 billion refinery, the largest private investment in Africa, stands out for its team of young professionals, predominantly aged between 26 and 28, most of whom hold advanced degrees and were educated in Nigeria.

“It has been a wonderful experience to witness the shared skills, depth of sophistication, and automation here. Seeing so many bright young Nigerians, particularly in the laboratories, is truly inspiring. I believe this bodes well for the future development of Nigeria,” he added.

Mitchell stated that the Caribbean Community would be exploring partnership opportunities with the Dangote Group to enhance its economy.

“One of the reasons I am here is to pursue synergies and partnerships between the diaspora and Africa, particularly in areas such as the refinery, cement, and fertiliser. We believe there are fantastic opportunities to develop partnerships between the Caribbean and Africa,” he added.

On his part, Dangote described the visit as symbolic, noting that many Caribbean countries are beginning to discover crude oil and are exploring opportunities to build their own refineries. This would help them address the challenge of exporting crude while importing refined petroleum products at high costs.

 

“The visit shows that many countries are proud of what we have been able to achieve because a lot of countries have been unable to deliver their refineries. It shows their pride in seeing a Black person like them at the Caribbean, although I am from Nigeria, succeed. For them, this is a dream, especially as many Caribbean countries are beginning to discover oil but still depend largely on exporting crude while importing petroleum products, which is costlier than in America. Their dream is to set up a refinery—perhaps not of this size—but one that would cater to their people,” he said.

 

Africa’s wealthiest man emphasized that the company is looking for partnerships in the Caribbean not only in petroleum products but also in cement and fertilizer production. He mentioned ongoing discussions about importing crude from these countries while supplying them with refined products.

 

“There are numerous partnerships in place. He is not only the Prime Minister of Grenada but also the Chairman of the Caribbean Community (CARICOM). We are exploring collaboration in areas such as cement and petroleum, including the possibility of buying crude from them while selling some of our petroleum products to them. We already export to the U.S., Mexico, and other regions, so there is significant collaboration we are looking to develop between us and them,” he added.

 

The 650,000 barrels per day (bpd) Dangote Oil Refinery—the largest single-train refinery in the world—is designed to process a wide variety of crude oils, including those from Africa, the Middle East, and US Light Tight Oil. It conforms to Euro V specifications and is built to meet stringent standards set by the US Environmental Protection Agency (EPA), European emission norms, the Department of Petroleum Resources (DPR), and the African Refiners and Distributors Association (ARDA). The refinery has the capacity to satisfy 100% of Nigeria’s demand for petrol, diesel, kerosene, and aviation jet fuel, with additional surplus available for export.

 

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LX Group CEO BIGLX Takes Cryptocurrency To The Next Level ….Why You Should Invest

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LX Group CEO BIGLX Takes Cryptocurrency To The Next Level

….Why You Should Invest

The LXGROUP CEO by name GODWIN GREGORY IBEGBU popularly known as BIGLX has proven that he is on a mission to take cryptocurrency to the next level. He said dreams do come true and I am a living testimony to that.

 

The Fastest growing cryptocurrency brand had driven a strong force in the crypto space within its reign of one year and eight months after several years of working under his former bosses. He gave cryptocurrency a chance and it has given him his financial freedom. Success doesn’t just come in a day but by work In progress. The newly cryptocurrency brand has recorded over 800-1000 users during this period of time making them run a total transaction of 1.1Billion naira in just a year and 8 months.

The lxgroup was officially rebranded from its former name LordBtc Exchange which started with $5-$100 customers repeatedly for 5 months not quite long started getting more users who wanted to give a try and after their first transaction with the brand they got stocked to the brand and introduced the lxgroup to their own fellow friends and now they have been a wave in the crypto space with notable users in the space of a year and eight months.

He added, “I have learnt to be patient and cut off from people who want to compete”.

“According to the records, LX and his team have transacted and processed out a total of $670K during this time frame making them efficient and reliable for its users. I will say this again for the records over a year plus with an additional 8 months ago, no adverts nothing just myself and the team have witnessed lxgroup been used by many, trusted by thousands, and has successfully processed a total payment of 1.1Billion Naira in transactions across its banks to customers. Further more he said I LX love you all, for supporting me and the brand for years now isn’t easy with the trust, the refers and the trades are noticed, we have also worked hard over the years making sure we improve in serving you better without compromising your trust and we are pleased to say greater things awaits lxgroup. Also I urge you all to keep trading with us as we will Never disappoint you all.”

LX Group CEO BIGLX Takes Cryptocurrency To The Next Level

....Why You Should Invest

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FIRS Launches USSD Code *829# for taxpayers’ satisfaction

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FIRS Launches USSD Code *829# for taxpayers’ satisfaction

 

In a bid to enhance ease of doing business, the Federal Inland Revenue Service (FIRS), on Wednesday, launched an Unstructured Supplementary Service Data (USSD) Code *829# specifically targetted at improving taxpayers’ satisfaction.

FIRS chairman, Zacch Adedeji, launched the code at the Revenue House in Abuja as part of activities making this year’s Customer Service Week which has the theme Above and Beyond.

The initiative makes Nigeria the sixth African country to deploy USSD code for simplifying tax payment processes. .

A statement by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman said taxpayers on any mobile telecommunication network in the country can now get across to FIRS real-time on issues relating to retrieval of Taxpayers Identification Number (TIN), verification of Tax Clearance Certificate (TCC), information on tax types and rates, locate the nearest FIRS office, and as well as get answers to general tax-related inquiries.

Speaking at the ceremony, Adedeji said the instant messaging protocol demonstrated further commitment of the agency to simplifying tax administration and ensuring that “every taxpayer—whether in bustling cities or remote areas—can engage with FIRS seamlessly.”

He called on taxpayers to enjoy the benefits that the USSD code offers and utilise the code for all their enquiries.

“With the *829# USSD code, taxpayers now have the power to: retrieve their Taxpayer Identification Number (TIN), verify their Tax Clearance Certificate (TCC), access information on tax types and rates, locate the nearest FIRS office, and get answers to general tax-related inquiries.

“Without the need for internet access, all of these services are now available with a simple mobile phone. This technological leap reflects our dedication to creating a tax system that is efficient, transparent, and responsive to the needs of taxpayers”, he said.

The agency also launched Customer Centricity Guide, a booklet containing policies, processes and procedures to ensure that FIRS keeps the taxpayers in their rightful position as ‘kings.’

“Equally important is the unveiling of the Customer Centricity Guide. This guide embodies our commitment to putting taxpayers at the centre of our service delivery.

“It outlines the principles and values that will drive our interactions with taxpayers by ensuring that every engagement is defined by respect, professionalism, and efficiency.

“The guide serves as a reminder to us all that the taxpayer is not just a client, but a valued partner in nation-building. Through the combination of the *829# USSD code and the Customer Centricity Guide, we are reinforcing a culture of service excellence and making tax compliance not just a duty but an experience that fosters trust and voluntary participation.

“As we celebrate this achievement, I encourage everyone to make full use of the *829# service and embrace the Customer Centricity Guide. Your feedback will be crucial as we continue to enhance these services and meet the evolving needs of our taxpayers,” he said.

The national coordinator of Servicom, Nnenna Akajemeli, praised the effort of the FIRS towards taxpayers’ satisfaction, noting that the efforts are evident.

“There are many things to congratulate the FIRS on. One is the launch of the USSD code *829# and the customer centricity guide. These initiatives which are simplifying tax and ensuring that citizens and taxpayers are delighted at the quality of service you render,” she said.

FIRS Director, Taxpayers’ Service Department, Loveth Onanuga noted the agency recognized that customer-centricity means more than just satisfying customers’ basic wants, but also going “above and beyond what customers anticipate and astonishing them with great service” in line with the theme of the week.

 

 

CAPTIONS USSD 1-3

L-R, Coordinating Director, People Services Group, Anthony Okonkwo; Coordinating Director, Services Support Group, M.L Abubakar; Coordinating Director, Compliance and Enforcement Group, Matthew Gbonjubola; Coordinating Director, Medium Taxpayers’ Group, Dick Irri; Chief of Staff, Tayo Koleosho; chairman, Federal Inland Revenue Service (FIRS), Zacch Adedeji; Coordinating Director, Corporate Services Group, Mrs Bolaji Akintola; Coordinating Director, Special Duties, Tamadi Shettima; Coordinating Director, Large Tax Group, Ms Aminat Ado during the unveiling of the agency’s USSD code *829# at the FIRS headquarters in Abuja, on Wednesday.

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