Commodities Exchanges Must Protect Investors-SEC

The Securities and Exchange Commission has implored commodities exchanges in the country to have investor protection at the centre of their operations in a bid improve investor confidence and attract more investors.

Director General of the SEC, Mr. Lamido Yuguda,who gave the charge during the presentation of Eko Gold Coins to the management of the Commission by the Lagos Futures and Commodities Exchange in Abuja, Thursday,urged the LCFE and the entire value chain to always have investor protection at the core of their work because eventually this is what will make the product succeed.

He added:“Now the gold itself has great value, once you put out your money and buy it, you have value that is incontrovertible, but where we need to be careful is the associated investment product, the derivatives products.

“The derivatives products are built around the product itself. We must have investor protection at heart because if it is taken off and investors have confidence that anytime I want to sell this investment am actually likely to get more than I put in which is the true meaning of investment”

He stated that when people invest, they are postponing current consumption for future consumption, need to be paid some returns as a price for that postponement of current consumption.

He added: “So when you sell this product in the future and make gain, you are actually being rewarded, but when you sell the product in the future and you make a loss, you are making two losses. One you are postponing current consumption and two you have not recovered your principal in the future. When people do that, as it happened in the stock market in 2008, you find out that the investor confidence wanes.

“So when we do things we have investor protection and investor interest at heart, you find out that you create a product, everything you are doing tells you this is the direction I am going. So when you see that product deviating, you go back to the drawing table and say I must make sure that investors make money out of this. If we do that the sky is the limit for this product, that you have demonstrated today”.

He lauded the LCFE on the demonstration and presentation and assured them of the Commission’s support in the development of the product and in the efforts to enlighten both the market participants and the investors who will put in their money.

“I wish you all the best in this market and whatever the SEC can do to support the development of this gold market we will do. This is an important consideration because this is something that has a dual use. You can use gold as store of value, i.e monetary gold or as jewelry.

“When the price of gold moves in Dubai, the people in Zamfara state they know, people in Lagos state they know and ladies who have gold, and every time they take the gold to the market the gold dealers are actually prepared to buy. This is one product that does not get old, the older the better, because you buy at a cheap price and selling at a much higher price. So this is something that we truly want to support” he said.

Speaking, Chairman, Board of Directors, Lagos Commodities and Futures Exchange said Chief Onyewenchukwu Patrick Ezeagu that the core vision of setting up LCFE was to provide a viable structure that will transform the Nigerian commodities market and redefine practice standards which would catalyse economic growth in Nigeria.

With your support at the SEC, he said this novel foundation has been laid and gradually the commodities ecosystem is being reformed and transformed with development of innovative products and fungible Instruments that are being introduced into the market.

“One of such products developed by LCFE, “The Eko Gold Coin” is why we have come to pay the Commission this visit today. On July 28, 2022, the Lagos Commodities and Futures Exchange was commissioned by the Executive Governor of Lagos State, His Excellency, Mr. Babajide Olusola Sanwo-Olu with the momentous launch and unveiling of the first physical gold asset tradeable on a Commodities Exchange in Nigeria, “The Eko Gold Coin”.

“it is my greatest honour and elation to present the first tranche of this exclusive gold coins which is available for purchase at LCFE to you and your esteemed team at the Commission. Director General Sir, as the saying goes: “No one lights a lamp and put it in a secret place; rather it is set on a lampstand, where it gives light to all in the house”,he stated.

Lagos Police  Re-arrest Ex-convict

The Lagos State Police Command, Thursday re-arrested an ex-convict for stealing and breaking into the state fire service building.

Its spokesman, Benjamin Hundeyin, who said that the suspect, Yakub Yusuf, 23, was arrested hours after he was released from prison,disclosed that Yusuf was earlier sentenced to one month in prison for stealing at the Lagos State fuel dump in Alausa, Ikeja.

He added that a non-governmental organization paid Yusuf’s fine after learning that he was imprisoned because he could not afford to pay the fine ordered by the court.

He noted that Yusuf has been re-arrested again by its Rapid Response Squad (RRS) operative for breaking into the Lagos State Fire Service premises.

Hundeyin said Yusuf allegedly stole the valve covers of an old fire truck that was under repair.

Chief Superintendent of Police (CSP), Olayinka Egbeyemi has transferred Yusuf to the State Criminal Investigation Department (SCID) for further investigation and prosecution.

Platforms Africa Holds Confab Monday

Platforms Africa,an e-discourse platform will holds its first continental forum in Lagos, Nigeria’s commercial capital,next Monday.

Solution to business, enterprise and governance hurdles in Africa will top the agenda at the Confab,Team Lead of Platforms Africa, Adeola Yusuf,said in a statement made available to Premium News

He gave the hint while unveiling the official flier for the event billed to hold November 21, at Sheraton Hotel, Lagos.

The forum will assess legislation and business survival in Africa with the review of the Nigeria’s 9th National Assembly and agenda for the 10th Parliament,he said

He lamented that lack of adequate focus by Africans on the choice of who occupies the legislative seat,adding that legislation directly or indirectly makes or mars businesses and lives of the people.

He said; “Democracy is a system of government by the whole population or all the eligible members of a state, typically through elected representatives. While a few countries in sub-saharan Africa are slipping back into military rule, more nations in the continent are deep-rooting trees of their democracies.

“Nigeria, the biggest democracy in Africa, is preparing for a regime change, and focus, as usual, is majorly on who will occupy seats in the executive arm of government while there is little or no interrogation about the quality of legislators whose bill passages and legislative instruments/agenda directly or indirectly impact businesses, and social enterprise.

“Platforms Africa, an e-community of intellectuals, policy moulders and opinion leaders in Africa, which has been having solution-driven discourse on Humanity and Africa Development, has deemed it necessary to have its first physical forum on Legislation In Africa.We want to review Nigeria’s 9th Parliament, which passed the *Petroleum Industry Bill (PIB) and set agenda for the 10th National Assembly.

“We have chosen Monday, November 21, 2022, for the event. And, we shall be honoured with your presence and support.We already have confirmation from prominent members of the forum as we spread tentacles to invite other key stakeholders which included: Mr. Francis Kokutse from Ghana, and Mr. Bosire Ontiri Japheth from Nairobi, Kenya.

“Through our e-Discourse, we have achieved a lot in terms of education and key information dissemination. We are assured that this physical forum will also help tremendously in the creation and sustenance of circles of informed Africans for the overall good of the continent in particular and the humanity in general.”

AfDB Boosts Africa’s Renewable Energy Project With $20m Private Equity Fund

The Board of Directors of the African Development Bank Group has approved an equity investment of $20 million in Evolution Fund III, a pan-African clean and sustainable energy private equity fund that is mobilising about $400 million into renewable energy and resource-efficiency assets across sub-Saharan Africa over a 10-year period.

EVIII aims to broaden geographic and technology scope to incorporate North Africa as well as several SSA countries and decentralized energy business models as the key climate mitigation and energy transition.

The bank’s support will contribute to an additional 2,162MW of installed renewable power generation capacity, 1.8 million tons of CO2 emission savings, and a green and sustainable growth across Africa by creating 2,480 full-time jobs, building on the track record of Evolution Funds I and II which generated about 1,309 jobs out of which 22% were women.

Vice President Kevin Kariuki of the African Development Bank’s Power, Energy, Climate Change and Green Growth Complex, said the bank is committed to boosting its portfolio of renewable energy projects and encouraging private investment in renewable and efficient energy solutions.

“The Evolution Fund III is well placed to invest much-needed capital in long-term, low-carbon and climate-resilient development pathways towards achieving a just, net-zero future for African countries,” Kariuki said.

The Bank’s investment in Evolution Fund III aligns with its High Five objectives, particularly, “Light Up and Power Africa” under its New Deal on Energy for Africa.

Wale Shonibare, Director Energy Financial Solutions, Policy & Regulations,said the bank’s support for a private equity fund focused on promoting renewable energy in Africa, will assist regional member countries to achieve their Nationally Determined Contributions and Paris Agreement obligations.

Christopher Clarke, Co-Managing Partner at Inspired Evolution, said “AfDB has been a consistent supporter of Inspired Evolution since 2010 and this third capital commitment evidences our trusted partnership that has been established in the delivery of the AfDB climate goals for Africa.”

Wayne Keast, Co-Managing Partner at Inspired Evolution, added “AfDB’s investment validates our track record and sophisticated investment management approach to accelerating Africa’s clean energy transition.”

UPDC Marks 25th Anniversary,Offers Roadmap On  Nigeria’s Housing Development

UPDC Plc, Nigeria’s property development, management and investment company, has explored pathways to solving the various challenges and maximizing opportunities being created in Nigeria’s booming but volatile real estate sector at a summit to mark its 25th Anniversary.

The summit,which was tagged, ‘Housing Development Imperatives for Nigeria; Prospects and Challenges’, provided an outlook of the real estate industry as the country steers towards the general elections in 2023.

Speakers include Frank Okosun, Senior Partner, Knight Frank Nigeria; Ann Ribu, Head of Property (Nigeria & West Africa), Standard Chartered Bank; Alan Davies, Managing Director, Cubitt Architects; Olutomi Sangowawa, Surveyor-General, Lagos State; Wole Oshin, Chairman, UPDC Plc and Founder, Custodian Investment Plc; and Odunayo Ojo, Chief Executive Officer, UPDC Plc.

The chairman, Wole Oshin, explored the recent history of the company,saying UPDC raised N16 billion in a rights issue in June 2020, and has continued to restructure after the recapitalization.

Besides,in 2020, the facility division of the company became a separate business; UPDC facilities Management ltd. In 2021, Custodian investment ltd became the major shareholder in UPDC. The company has experienced a turnaround since then, increasing efficiency and expanding its business.

“As UPDC shifts from recapitalization to maximizing growth and opportunities, we continue to look forward, focusing on achieving profitability in the short to medium term, embarking on projects that increase profit and expand the company’s impact,”he said.

Speaking,the CEO, Odunayo Ojo disclosed that UPDC is the first real estate company to have been listed on the Nigerian Stock Exchange, and offers the most diversified portfolio of residential, commercial, retail and hospitality assets.

He also noted that UPDC’s Real Estate Investment Trust (REIT), a vehicle that offers opportunities for members of the public to contribute into an investment pool, is the largest real estate investment trust in Africa.

At the panel session, real estate expert, Frank Okosun, spoke on the serious housing deficit in Nigeria, identifying some of the major challenges in the sector. These include the high cost of building materials, poor mortgage penetration and problems with land administration.

“There is a significant gap between the stock we have and the quality of houses that meet international standards as well as affordable ones.Property ownership in Nigeria is still an elitist engagement. There should be a strategy for the big real estate firms to make home ownership affordable for lower income earners,” he added

Renowned architect, Alan Davies, spoke about trends in the housing sector. He noted that Nigeria’s rising young population has led to higher demand in the 1 room and 2 room apartments. He also noted the return to environmentally responsible design in building.

“It is unfortunate that everything comes down to cost; not just the cost of building but also of maintenance. Reducing these costs is more critical than ever.” Mr. Alan said.

“Growth and access to finance for real estate projects will increasingly depend on creativity, innovation and adoption of technology amongst other factors. Today, there are global funds available for sustainability-oriented projects that meet Environmental, Social and Governance (ESG) goals,” said banker, Ann Ribu, who spoke on financing. Ribu noted the various opportunities currently available for real estate financing in the country. She called for collaborations across various players in the value chain, with a strong emphasis on sustainability.

Flood: Heritage Energy, Partners Donate N50m Relief Materials To Delta Communities

Heritage Energy Operational Services Limited (HEOSL), Operator of the OML 30 Joint Venture (JV) between NNPC E&P Limited (NEPL) and Shoreline Natural Resources Limited (SNRL), on behalf of the JV partners, has donated relief materials worth over N50million to 10 communities in its area of operation affected by the recent flood disaster, which has ravaged several communities in the delta region of Nigeria.

This is the JV partners’ way of supporting the communities neighboring the asset, currently devastated and rendered homeless by the unfortunate natural disaster,it said in a statement.

The OML 30 JV paratners’ move is also part of the activities in support of Delta State Governments’ efforts at mitigating the attendant hardship caused by the flood in the state,it also said.

The relief items were distributed to the Internally Displaced Persons (IDPs) from communities around its operations including Uzere, Igbide, Emede, Olomoro, Oleh, Evwreni, Unenurhie, Uwheru, Ehwe and Okpolo Ewhe. Items provided included basic food commodities such as rice, beans, garri, vegetable oil, noodles as well as medical and pharmaceutical supplies and other basic household needs.

HEOSL’s General Manager – Government, Joint Ventures & External Relations, Adesola Adebawo, noted that the provision of these relief materials is “putting a human face to the OML 30 Asset and to demonstrate partnership with our affected communities in good and bad times”

He said,in 2018, the OML 30 Asset stood with its host communities during a similar flood disaster and made provision for palliatives.

He added that during the COVID-19 Pandemic in 2020, the company also supported all 112 host communities by providing them with food items and medical supplies.

According to the Chief Executive Officer of HEOSL Ado Oseragbaje, “the company recognizes the devastating effect of the flood and attendant hardship on the affected communities”.

Commending the support of the JV Partners to respond to the plight of the affected communities, he affirmed the commitment of the company to ensure that the relief materials are properly distributed to ameliorate the suffering caused by the natural disaster.

Speaking,the representative of the NNPC E&P Limited, Oghenero Omowhara who spoke on behalf of the Manager, Community Relations stated that “whenever our host communities are visited by a natural disaster, we swing into action to help ameliorate the attendant hardship that may result, by providing basic needs to cushion the effects brought in by the disaster”.

Besides, the representative of SNRL, Abass Umohata, commended HEOSL for the initiative and called for seamless distribution advising that the relief materials get to those in dire need and affected by the flood.

How Inflation Is Weakening Nigeria’s Economy-Muda Yussuf

The Chief Executive Officer,CEO of Centre For Promotion Of Private Enterprise,Dr.Muda Yussuf,has said that
said that the current spate of inflation is weakening purchasing power of citizens as real incomes are eroded and increasing poverty incidence in the country.

It is also contributing to the escalation of production costs which negatively impacts profitability,he said in his comment on October inflation in the country.

According to him,the development also accounts for erosion of shareholder value in many businesses and weakening of investors’ confidence in the country.

Headline inflation accelerated to 21.09% in as against 20.77 in September.

On a month-on-month assessment, there was a decline of 0.11% in the headline inflation. It declined from 1.36% in September to 1.24% in October. Food inflation maintained its upward trajectory, accelerating to 23.72 with a month on month decline of 0.21%. Core inflation similarly spiraled to 17.76% in October.

Yussuf said it was evident Nigeria is yet to see an abatement to the key factors fueling inflation which are global and domestic in nature.

He said:”They are a combination of structural and policy issues.These factors include the depreciating exchange rate, rising transportation costs, logistics challenges, forex market illiquidity, hike in diesel cost, climate change, insecurity in many farming communities and structural bottlenecks to production.

“These are largely supply side and policy concerns. Monetary policy tightening in most economies around the world, especially the leading economies, is also driving imported inflation and the depreciation in the exchange rate.The accelerated growth in fiscal deficit financing by the CBN is heightening liquidity in the economy with consequences for soaring inflation”

He reasoned that tackling inflation requires urgent government intervention to address the challenges bedeviling the supply side of the economy, addressing production and productivity constraints, fixing the dysfunctional forex policy, and institution of fiscal reforms to curb escalating deficit spending.

He added: To give producers and citizens some relief, the government could tweak the tariff policies by granting concessionary import duty on intermediate products for industrialists, especially those in the food processing segments of the agriculture value chain”

Egbin Power, Boss Win AfriSafe Awards

Egbin Power Plc has received the Utility Power Generation Company of the Year at the 2022 Afrisafe HSE Awards, a prestigious Health, Safety and Environment (HSE) industry award which was held to honour outstanding individuals, corporate organizations and laudable initiatives in the safety industry across Africa.

The event was attended by notable personalities, professionals, entrepreneurs, HSE certification companies, training institutions, regulators and safety solution providers among other bodies in the industry across the continent.

According to the organizers, the award is in recognition of the various proactive and preventive measures implemented by the power generation company, which has positively impacted on the company’s safety culture.

Receiving the award, Mokhtar Bounour, Chief Executive Officer, Egbin Power Plc, thanked the organizers for the recognition.

He also commended the employees of company for implementing and observing high safety standards at work while dedicating the award to the entire team.

” We are honoured to have received this prestigious award for the Best Company in HSE in the Power Generation and Utility Sector. At Egbin, our mission is bringing energy to life responsibly and we cannot do that without taking into consideration that Safety is first. We remain committed to taking the lead in ensuring the safety of our employees and contractors as a responsible and safety-conscious organization”, he said.

Egbin Power, a subsidiary of Sahara Group, promotes green energy and environmental sustainability through partnerships with focus on clean energy and sustainable environment.

The Group Managing Director of Sahara Power Group, Kola Adesina (MFR) also bagged the AfriSafe Legend Award in recognition of the Group’s efforts to maintain the highest level of safety standard in its operations, in a bid to ensure safe working environment.

Adesina expressed delight in receiving the award and commended the organizers of the Awards for the diligent effort put into promoting safety practices and initiatives.

Chairman of AfriSafe Award, Dr. Afe Mayowa, in his address described the winners as worthy people who deserve respect for their numerous contributions toward the advancement of the industry, noting that they were nominated by leading voices in the safety industry and members of the general public who are privy to their exemplary contributions to the profession

How To Stop Global Energy Deficit -ND Western Boss

Investments in natural and renewable energy coupled with support from policymakers are crucial to bridging the regional and global energy deficit,Eberechukwu Oji, CEO of ND Western,has said

He gave the suggestion in a panel discussion on, “Natural Gas and the African Continent: Bridging Regional and Global Energy Deficit Using Natural Gas as a Transition Fuel” at the recent 2022 Africa Oil and Gas Week held in Cape Town,South Africa.

“As the Nigerian government translates the new petroleum industry Act, it is creating more opportunities for tangible projects for gas development in Nigeria. This way we can promote the use of natural gas thereby reducing carbon emissions and air congestion in the country. Then, of course, there are businesses like ND Western, an independent producer of gas in Nigeria. With an installed capacity of 600 mmscfd, we currently produce about 350 million cubic feet of gas each day.

“We believe that maximizing gas production to suit the economy’s needs is crucial. With better infrastructure and more support from policymakers we’ll be able to provide Nigeria with alternative clean sources of energy, providing extra benefits to Nigeria and the region,” said Oji.

“Local communities must benefit from gas that’s produced from their environment, which is something our organization plans to address, including job creation.” He added.

The panel session led by Emmanuel Grand, Senior Managing Director, FTI Consulting, expounded on some global energy issues, while also highlighting the need for a more secure and diverse energy supply all over the world.

SNEPCo’s Bonga FPSO Completes Turnaround Maintenance

Shell Nigeria Exploration and Production Company Limited (SNEPCo) is pleased to announce that the 2022 Turnaround Maintenance (TAM) of the Bonga floating production storage and offloading vessel (FPSO) has been completed.

The 225kbopd capacity FPSO was closed on October 18, 2022 to carry out statutory inspections, recertifications and other critical asset integrity restoration activities.

The 2022 TAM which was originally planned for 30 days was completed in 22 days on November 9, 2022 due to excellent front-end planning and flawless execution.

A statement from the company said commissioning and start-up activities are in progress and will culminate in ramp up of oil and gas production in the coming days.