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Stanbic IBTC’s ETF 30 to be Admitted into NSE List

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Stanbic IBTC Asset Management Limited said its Exchange Traded Fund (ETF 30) would be admitted into the daily official list of the Nigerian Stock Exchange (NSE) soon.

Olumide Oyetan, chief executive officer, of the company, while speaking at the investors’ forum in Lagos, urged investors to leverage the bank’s on-going N1billion initial public offer for the Stanbic IBTC Exchange Traded Fund (ETF 30) and invest in a low cost instrument that will deliver the needed returns on investment.

He explained that application has been made to the NSE to admit the Fund in its daily official list, which would be listed for secondary market transactions as soon as the necessary regulatory approvals are secured.

The Stanbic IBTC ETF 30 was designed to track the performance of the NSE 30 index, which comprises the top 30 companies listed on the NSE in terms of market capitalisation and liquidity.

The index serves as the flagship benchmark for the stock market as it represents 92 per cent of the NSE’s market capitalisation and the will replicate the price and yield performance of the index.

The company is currently offering 10 million units of the Fund at N100 each at par to investors. Application for the offer opened on Monday, 15 September 2014, and is scheduled to close on Wednesday, October 15, 2014.

The offer, which has received approval from the Securities and Exchange Commission and NSE, will have a minimum subscription of 10,000 units and multiples of 5,000 units thereafter.

Oyetan explained that investors could invest or dispose of units of the Fund by buying or selling in the secondary market or through creation and redemption of the units in the primary market, adding that creation and redemption of the Fund could only be done by the Fund Manager when it is in excess of 500,000 units.

He said that units of the Fund could be created or redeemed either in kind or cash or combination of both.

Listing some of the underlying benefits, he pointed out that investing in the Fund represents an efficient means of acquiring all of the securities, included in the NSE 30 index, compared to investing in each individual stock.

He added that at any time during the trading day, an investor could execute a single ETF trade and immediately obtain broad exposure to the group of securities in the index, which span across different sectors.

“To further facilitate liquidity, the Fund will have a Market Maker, whose function will be to continuously offer to buy and sell units of the Fund on the floor of the Exchange. Investing in the Fund will reduce the complexities associated costs and risks of investing directly in underlying shares.

“Compared to mutual funds, the Fund will not charge a fee when an investor acquires or divests its units since such a transaction would happen on the floor the Exchange,” he said.

He added that the Fund is expected to earn dividends from securities held and would pay out substantially all of its net earnings to its unit holders.

 


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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