E-Financial
DLM Capital Group Successfully Redeems N20.161B Under its N25B CERPAC SPV Securitization
DLM Capital Group has redeemed a major part of the CERPAC Receivables Securitization Funding SPV and paid investors involved in the N25 Billion Future Flow Receivables backed Securitization transaction, a total of N20.161Billion. These redemptions were for the Discrete and Series 1 bonds executed by the Group.
The CERPAC N25 Billion Securitization Programme is a five-year bond issuance created in May 2017 when Continental Transfert Technique Limited (“the Sponsor”, “the Seller”) sponsored the incorporation of the special purpose vehicle, to raise funds in connection with the funding program for the purchase of current and future receivables accruing to the seller from the sale of the Combined Expatriate Residence Permit and Alien Cards (CERPAC Cards) in Nigeria.
CERPAC Receivables Funding SPV is unique in the sense that the only metric that informs the success of the company is the performance of the purchased CERPAC Receivables, which in turn are used to service the SPV’s debt obligations.
Since its creation in 2017, CERPAC has had four issues: the first N4.877Bn 5-year 18.25% Discrete Bond due 2023, the N12.5Bn 5-year 15.25% Series 1 bond due 2023, N1.600Bn 5-year 15.5% Series 2 bond due 2023, and the N1.250Bn Series 3 bond due 2028. In November 2019, an asset backed commercial paper of about N2.87billion was issued and fully repaid in June 2020.
On the 15th of January 2023, the Discrete N4.8Bn and Series 1 N12.5Bn matured and were fully paid. Upon the final payment of both the Discrete and Series 1 bonds, DLM also refunded the total sum of N2.3Bn kept in the Reserve accounts to Continental Transfert Techniques Limited.
Since the course of the CERPAC transaction, DLM Capital Group had raised about N23.011Bn and paid a total sum of N31.144Bn covering both Principal and coupons to date. The CERPAC Series 2 and 3 bonds will mature on 15th July 2023 and 15th July 2028, respectively.
Mr. Sonnie Babatunde Ayere commented as follows, “the current collateral cover to the remaining investors in Series 2 & 3 as at December 2022 was 34.5x, average DSCR (including principal) is approximately 4x and current credit enhancement is 64.17%. Based on these facts, the rating agencies should have re-rated the deal for an upgrade.
This was the first ever SEC approved combined offer, which allowed the SPV to issue both debt & equity at the same time and from the same prospectus to investors. Whilst the debt has performed fantastically well, so has the equity.
The equity investment returned year-on-year, an average of 55.65% per annum beating most market indices, appreciating from N50 a share to N189 a share as of December 2022.
Finally, whilst this transaction was initially frowned upon by real money managers in 2017, we were glad to note that at final redemption, a big chunk of the paper was finally held by the Funds as they had come to find comfort from its fantastic performance and transparency”.
DLM Advisory, headed by Mr. Emeka Ngene, (the Group’s investment banking subsidiary) acted as the Issuing House on the deal while DLM Trust Company Limited (the Group’s Trustee subsidiary) was the Lead Bond Trustee.
The Managing Director, DLM Trust Company Limited, Mrs. Ololade Razaaq remarked that the receivables had posted very strong cashflows over the last decade till date.
“Since the inception of the programme, there have been no record of delinquency or default as all investors received their principal and full coupon as and when due. This was also the first transaction in Nigeria to provide investors with a 100% transparency by providing investors with detailed monthly performance reports”.
Other successful securitization transactions executed by DLM Capital Group include the Primero BRT Securitization, the MAX Receivables Securitization SPV Ltd and the NMRC Pass-Through transaction which is still ongoing.
Nigeria’s Value Added Tax (VAT) revenue surged to ₦6.72 trillion in 2024, marking an 84.6% increase from ₦3.64 trillion in 2023, according to the National Bureau of Statistics (NBS). This sharp rise reflects stronger economic activity and improved tax collection efforts across key sectors.
VAT revenue showed consistent growth throughout the year. In Q1 2024, collections stood at ₦1.43 trillion. This rose to ₦1.56 trillion in Q2, representing a 9.09% increase. Q3 recorded ₦1.78 trillion, up 14% from the previous quarter, while Q4 peaked at ₦1.95 trillion, a 9.5% rise from Q3.
In Q4 alone, VAT collections totaled ₦1.95 trillion, with domestic VAT payments contributing ₦917.40 billion, non-import foreign VAT at ₦554.68 billion, and import VAT at ₦474.75 billion. Domestic VAT remained the largest source, indicating strong local business activity and consumer spending.
Several sectors posted significant quarter-on-quarter growth in Q4. Extraterritorial organisations and bodies saw a dramatic rise of 180.05%, followed by agriculture, forestry and fishing at 70.83%, and human health and social work at 46.13%. These gains suggest increased operational scope, improved compliance, and possibly targeted government incentives.
However, not all sectors fared well. Households as employers and self-use production contracted by 28.97%, while the information and communication sector declined by 23%. The drop in ICT may reflect shifting market dynamics or regulatory headwinds affecting digital services.
Overall, the surge in VAT revenue signals a positive fiscal outlook for Nigeria, with implications for budgetary planning, infrastructure investment, and social services funding. It also highlights the importance of sector-specific monitoring to sustain momentum and address emerging challenges.
Federal Inland Revenue Service (FIRS) has commenced an electronic invoicing solution (e-invoicing) aimed at transforming digital tax administration and revolutionising tax payment in Nigeria.
The e-invoicing system, also known as the Merchant-Buyer Model, is designed to make tax compliance easier, faster and more transparent for all categories of taxpayers.
A statement by Dare Adekanmbi, special adviser on Media to Zacch Adedeji, chairman, FIRS, said the solution went live on August 1, following a successful pilot phase which began in November 2024.
According to the statement, large taxpayers, which are companies with annual turnover of N5 billion and above, are the first to be onboarded. In less than two weeks after the initiative went live, no fewer than 1,000 companies, representing 20 per cent of over 5,000 eligible firms, have embraced the solution and commenced integration with the FIRS MBS platform.
It noted that the remaining large taxpayers are expected to come onboard on or before November 1, the deadline for all firms in the category to complete their onboarding and integration processes.
“MTN Nigeria became the first taxpayer to transmit live electronic invoices to the FIRS, officially ushering in the e-invoicing regime. Huawei Nigeria and IHS Nigeria have also concluded test transmissions and are set to go live in the coming days.
“In collaboration with the National Information Technology Development Agency (NITDA), Service Providers have been incorporated into the ecosystem to act as both System Integrators and Access Point Providers. These providers will facilitate the onboarding, integration, and invoice transmission processes for taxpayers.”
The statement commended all large taxpayers, tax consultants, and service providers for their cooperation and commitment to the success of the project.
“We also acknowledge the genuine efforts of many taxpayers who strove to meet the 1st of August 2025 deadline but encountered operational constraints.
“In the spirit of encouraging voluntary compliance, the FIRS management has graciously approved a three-month extension of the deadline, with the new deadline now set for 1st November 2025.
“The FIRS e-Invoicing Implementation Team will continue to provide support through stakeholder engagements, including webinars, workshops, and town hall meetings, to ensure a seamless transition for all large taxpayers,” it added.
The national e-invoicing solution is an electronic fiscal system (EFS) developed by FIRS to provide real-time visibility into commercial transactions and ensure the authenticity, accuracy and completeness of invoices.
It is being implemented in phases, starting with large taxpayers, with medium and emerging groups to follow.
The initiative aligns with global best practices and supports the Federal Government’s broader objectives of enhancing revenue assurance, reducing tax evasion, and modernising tax administration.
It is also a critical tool in the implementation of the Nigeria Revenue Services Reform Act, which seeks to harmonise revenue reporting and establish a single source of truth for government revenues.
First Securities Brokers Limited, the stockbroking subsidiary of First Holdco Plc, recently announced its impressive performance in the latest Nigerian Exchange (NGX) Broker Performance Report. The firm secured first place in terms of trading volume and value of transactions for the month of July, 2025.
According to the report, First Securities Brokers Limited displayed strong trading activity and strategic market positioning, further solidifying its reputation as a significant player in the capital and equities market.
Fiona Ahimie, Chief Executive Officer and Managing Director of First Securities Brokers Limited expressed her pleasure at the firm’s achievement of a trading value of ₦414.457 billion, which accounts for 22.80% of the total trading value reported by the NGX during the review period. This performance highlights the effectiveness of the integrated model promoted by First Holdco Plc.
The Holding Company’s strategic focus on synergy within the Group played a crucial role in enhancing the performance of First Securities Brokers Limited.
“This remarkable achievement reflects the hard work and dedication of our entire workforce, as well as the trust our clients continue to place in us. It underscores our growing influence and effectiveness in the Nigerian equities market,” she added.
“Our focus on providing innovative and seamless trading solutions, coupled with deep market expertise, has been crucial to driving this success. We are not just a brokerage firm; we are strategic partners in our clients’ financial journeys. This recognition further motivates us to deliver exceptional value.”
“We remain committed to creating long-term value for our clients and stakeholders. Building on this momentum, we will continue to enhance our service offerings and further establish our position as a key driver of growth and development in the Nigerian financial market.”
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