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NSE Becomes Public Liability Company

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The Nigerian Stock Exchange (NSE) has received final approvals from Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) and the regulatory body for corporate affairs, Corporate Affairs Commission (CAC)  to convert from a mutual, member-owned company to a public limited liability company. paving the way for its public listing and trading of its shares.

With this development, the Exchange has now completed its demutualisation process.

Under the demutualisation plan, a new non-operating holding company, the Nigerian Exchange Group Plc (‘NGX Group’) has been created. The Group will have three operating subsidiaries, namely: Nigerian Exchange Limited (NGX Limited), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulation company; and NGX Real Estate Limited (NGX RELCO), the real estate company. All the entities have been duly registered at the CAC.

President, Nigerian Stock Exchange (NSE), Otunba Abimbola Ogunbanjo said the successful demutualisation was one of his fundamental objectives when he assumed the presidency of the Exchange, saying that SEC’s decision today (yesterday) in approving the NSE’s demutualisation plans brings this aspiration to a successful conclusion in a process that included the passage of the Demutualisation Act through the National Assembly.

He said: “We are elated that this milestone has been achieved as we celebrate the 60th anniversary of the commencement of trading at the Exchange and now look forward to the future public listing of its shares on NGX Limited. On behalf of the NSE, I would like to warmly thank all those that have worked assiduously to achieve this watershed event on our journey to make the NSE a multifaceted exchange that extends across various markets and geographical regions,”

The approvals by the SEC and CAC imply that the NSE can now activate its transition plan to a new operational structure and holding company. The extensive transition plan, taking the Group and its subsidiaries through to full operational launch, covers legal and practical changes to enable the functioning of the new corporate structure, with no loss of service and a seamless transition for market participants.

The transition plan will also see the inauguration of Boards for each of the new entities, staff reallocation to their respective functions within the operating subsidiaries, operationalisation of business plans and budgets, technology systems transfer, and the requisite arm’s length agreements between the entities. Upon Operational Launch, the Group’s new brands, including a new website, will be unveiled and the Group will be in position to execute on its strategic vision. Stakeholders, including our new valued shareholders will benefit from The Group’s enhanced Corporate Governance framework, access to capital to fund strategic developments and a more globally competitive Exchange.

The approvals also enable the shares of NGX Group Plc, which have been registered with the SEC, to be allotted to the membership pursuant to the Court approved Scheme of Arrangement. Ahead of its listing on NGX Limited, the shares of NGX Group Plc will be available for bilateral trades to be executed in line with extant rules and regulations of the Nigerian capital market. Otunba Ogunbanjo will serve as the inaugural Chairman of NGX Group Plc’s Board of Directors.

Chief Executive Officer, Nigerian Stock Exchange (NSE), Oscar Onyema said the Nigerian capital markets should play a role commensurate with Nigeria’s status as Africa’s largest economy.

“At the Nigerian Stock Exchange, we have a vision that the new group will become the premier exchange hub for Nigerian businesses and for the African economy. We are implementing a series of measures towards this goal, demutualisation being a critical milestone. The completion of demutualisation is a truly significant moment, and we welcome the new possibilities that have opened up for us today,” Onyema said.

Demutualisation of the NSE is pivotal in that it creates new strategic opportunities that will enable the Group realise its vision of becoming Africa’s leading capital market infrastructure provider.  The creation of a holding company and a new capital structure will also enable NGX Group Plc to form new dynamic relationships, drive strategic partnerships and gain capital raising flexibility. It will be recalled that NSE members approved at its last AGM, the listing by introduction of NGX Group Plc on NGX Limited.

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VAT Increases By N41.7bn – NBS

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The National Bureau of Statistics (NBS) has said that Value Added Tax (VAT) increased by N41.7 billion in Quarter One of 2021.

VAT increased by N41.7 billion to N496.39 billion in Quarter One of 2021 as against N454.69 billion generated in Quarter Four of 2020 and N324.58 billion generated in Q1 of 2020.

The National Bureau of Statistics (NBS) published the figures in Abuja on Saturday in its Sectoral Distribution of VAT for Q1 2021.

According to the bureau, the increase represents a 9.17 per cent increase quarter-on-quarter and a 52.93 per cent increase year-on-year.

It said that of the total amount generated in Q1 of 2021, N224.85 billion was generated as non-import VAT locally, while N171.66 billion was generated as non-import VAT for foreign.

It added that the balance of N99.88 billion was generated as Nigeria Customs Service-import VAT.

The NBS said that manufacturing generated the highest amount of VAT – N49.41 billion – closely followed by professional services which generated N42.50 billion.

“State ministries and parastatals generated N26.96 billion, while mining generated the least with N48.36 million.

According to NBS, mining is closely followed by pioneering and textile with N77.01 million, and garment industry with N289.41 million.”

The bureau said that the data was provided by the Federal Inland Revenue Service and verified and validated by NBS.

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Presidency Gives Update On MSMEs Survival Fund

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The presidency says the portal for the 4th National Micro Small and Medium Enterprises (MSMEs) Award will open from May 10.

Tola Johnson, Special Assistant to the President on Micro Small and Medium Enterprises (MSMEs), Office of the Vice President, made this known on Friday in Abuja.

Johnson, who is also the Coordinator, Project Delivery Office (PDO), briefed newsmen on the fourth National MSMEs Award slated for June 27.

He said that MSMEs interested in the 2021 Awards should visit the website www.msmeclinics.gov.ng from May 10.

President Muhammadu Buhari, through Vice President Yemi Osinbajo, moved to empower and reward MSMEs across the country, which gave birth to National MSME Clinics in 2017.

Some offshoots of the clinics include the MSMEs One-Stop-Shop, the Shared Facility Initiative and the MSMEs Awards conceived in 2018.

According to Johnson, a few things will be done differently in the forthcoming awards.

He said, “One of the very important things to quickly say is that this year, the award’s site or portal has moved to www.msmeclinics.gov.ng.

“In the past, we used to have msmeclinics.gov.com but now moved to a safer site; so, we will be expecting a lot more people on this site.

“This year, also, the portal will be opened from May 10, and it will open for three weeks to run all through to May 31.

“The categories are the same, but there is a certain category that was reviewed based on input or suggestion from one of our partners National Information Technology Development Agency (NITDA).

“ The category in question has been changed to Tech and Innovation Driven Enterprise; it used to be just Innovation Category.’’

He listed other categories as agriculture, beauty, wellness and cosmetics, creative arts, fashion and style, furniture and woodwork and manufacturing.

Johnson said there were other special categories as the “Best MSMEs Supporting State’’.

He said the date for the fourth MSME Award coincided with the UN Day for MSME, adding that there would also be a fashion exhibition.

“One other thing that is worthy of mention is that this year, we are going to have this week of the MSMEs award, which is on June 27.

“We are doing it exactly the same day at the UN World MSME Day.

“So, this will be Nigeria’s answer to marking that day; to give MSMEs who are thriving in that space some sort of rewards and recognition.

“More so, we are going to have a fashion and art exhibition on June 25; it is a first of its kind; we are expecting a lot of Nigerian brands from across the country; it is strictly made in Nigeria exhibition, ‘’ he said.

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Ooni Of Ife Canvasses For Locally Made Products

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The Arole Oduduwa and Ooni of Ife, Ooni Adeyeye Enitan Ogunwusi Ojaja II, has urged Nigerians to patronise locally made products, stating that such gesture is required to grow the country’s economy.

Ogunwusi made the call recently at his Ile Oodua Palace Ile-Ife while playing host to management of Titan Multi-business investment Limited, producers of Titan Rice.

The Titan team were on a courtesy visit to the African foremost monarch to formally invite him as the special guest of honour at the commissioning of the Titan Farms Corporate head office and rice factory located in Ibadan, slated to hold soon.

The Ooni commended Titan management for their patriotism and originality while rendering qualitative services to Nigerians.

“We should commend the management of this great company and other few ones across the country for standing up to the challenges in the competitive market, it is obviously not easy,” the Ooni said.

Founder and Chief Trader, Titan Multi-business Investment, Mr Gbenga Eyiolawi, thanked the Ooni for the kind words, affirming his organisation’s readiness to uphold its efficient service delivery mechanism.

“Titan is an agro-commodity processing and trading outfit, buying farm produce directly from Nigerian farms and processing them with our partner-mills and processing facilities using High-Tech equipment in the Northern part of the country.

“These processed goods are packaged in our brand and sold directly to distributors across South-west Nigeria. Pioneer of such goods is our rice brand known as Titan Rice which is produced and packaged in the North and then sold in the South,” Eyiolawi noted.

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