The Federal Government raised over N2.36tn from the capital market in 2020, the Chief Executive Officer of the Nigerian Stock Exchange, Mr Oscar Onyema, has said.
He stated this on Tuesday at the 2020 market recap/2021 outlook.
He said the Federal Government issuances amounted to 92 per cent of total bond issuances in the market.
Corporate firms also leveraged the low-yield environment to fund expansion objectives and pursue debt refinancing, raising a total of N192bn, he added.
“Capital-raising activities in the fixed income market increased significantly in 2020. The NSE’s bond market capitalisation rose by 35.52 per cent from N12.92tn in 2019 to N17.50tn,” he said.
Onyema also stated, “The year 2020 was indeed a historic one for global capital markets. Facing buffeting headwinds, world markets saw sharp swings and steep losses, but largely remained resilient and orderly amid rising uncertainty.
“For the Exchange, renewed investor optimism coupled with improved economic conditions and low fixed income yields, propelled a year end bull run. Of 93 global equity indices tracked by Bloomberg, the NSE All Share Index emerged the best-performing index in the world, surpassing the S&P 500 (+16.26 per cent), Dow Jones Industrial Index (+7.25 per cent) and other global and African market indexes, to post a one-year return of +50.03 per cent.”
Giving the product performance, Onyema said, “The Nigerian equities market got off to a strong start in 2020, returning 10.4 per cent by the eighth trading session. By October, the equities market entered a much-awaited bull run.
“Buoyed by the formal declaration of the US president-elect, unattractive fixed income yields and better-than-expected corporate earnings, the NSE ASI recovered from Q1’20, to close the year at 40,270.72 (+50.03 per cent) and erase losses of -14.90 per cent recorded in 2019.
“During its remarkable year end run, the ASI gained 6.23 per cent in a single trading session which triggered a 30-minute halt of trading on all stocks for the first time since the NSE Circuit Breaker was introduced in 2016 to safeguard market integrity in periods of extraordinary volatility.
“At the close of the year, the NSE’s equity market capitalisation was up by 62.42 per cent, from N12.97tn in 2019 to N21.06tn in 2020 while market turnover saw an uptick of 7.25 per cent, from N0.96tn in 2019 to N1.03Tn in 2020.
“Although Initial Public Offering activity was mute, the value of supplementary issues increased dramatically from 2019, rising by 851.37 per cent to N1.42tn, from N148.77bn.
“Also noteworthy is that for the second consecutive year, equity market transactions were dominated by domestic investors who accounted for 65.28 per cent of market turnover by value (retail: 44.98 per cent; institutional: 55.02 per cent) while foreign portfolio investors accounted for 34.72 per cent.”
He said the NSE would consolidate on the benefits of demutualisation.
Onyema disclosed that the NSE intended to aggressively pursue cutting-edge products and services, access new markets and deliver better value to its valued stakeholders.
“The year has started on a positive note as the ASI has already returned 2.0 per cent after 11 trading sessions. We expect the marginal reopening of businesses, normalisation of the economy and revenue-diversification drive of the Nigerian government to elicit positive sentiments throughout the year,” he said.
He, however, noted that the growth expectations should be viewed with caution, saying the second wave of COVID-19 in Nigeria and globally could slow down renewed social and economic activities.
NMDPRA seals 16 gas plants, arrests five suspects in Edo
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has sealed 16 illegal gas facilities in Edo State.
Some filling stations were also sealed over an alleged breach of rules and regulations.
The agency arrested five suspects during the exercise.
The agency’s state comptroller, Ebi Ogionwo, said the clampdown was to curb the activities of illegal and unlicensed oil and gas operators in the state.
He alleged that some misguided operators were setting up oil and gas facilities in areas not suitable for the business and without necessary approval from the agency.
Ogionwo said, “It is an offence for anyone to site such facilities without due approval from the NMDPRA. The agency is out to bring sanity to the operations of midstream and downstream petroleum business in the state.”
He further warned investors against taking laws into their hands by setting up gas and petroleum facilities in areas not approved by the agency.
Ogionwo said five suspects arrested during the exercise would be charged to court.
“There are laws, guidelines and regulations that people must follow before setting up oil and gas facilities. So, the purpose of the operations is also to check the level of compliance by those who have set up these facilities in the state and take necessary actions that are required,” he said.
Ogionwo added that the illegal operations of oil and gas facilities compromised the safety of lives, property, environment as well as deprived both the state and Federal Governments of the revenue that should accrue to them through taxes and other sources.
Lagos suspends RTEAN activities, sets up caretaker committee
The Lagos State Government has suspended all activities of Road Transport Employers Association of Nigeria (RTEAN) in the state.
Special Adviser to the Governor on Transportation, Sola Giwa, who announced the suspension, said the action became imperative following some pockets of violence recorded in Ojo and Lagos Island on Wednesday.
Already, he said a 35-man caretaker committee had been constituted to take over activities of the union.
The caretaker committee is headed by Sulaiman Adeshina Raji, with Bamgbose Oluseyi as deputy chairman and members are Sunday Aransiola, Sulaiman Onabanjo, Azeez Abdulrahman, Isiaka Seriki, Victor Ifemenam, Kareem Babatunde, Amusan Abdulrahman, Teslim Adeshina, Sulaiman Surajudeen and Fatai Rauf.
Others are Sunday Banjo, Segun Omole, Thomas Akinkayode, Taiwo Lasisi, Gbenga Kashimawo, Samson Ajala, Taiwo Daodu, Sule Aliu, Ahmed Musa and Oladipupo Ibrahim. Adewale Adeniyi, Olatunji Durojaiye, Wasiu Olanrewaju, Taofeek Onileola, Yusuf Afolabi, Bode Ogungbade, Alh. A.A. Ussaini, Saliu Usman, Saheed Badru, Kolawole Yusuf, Kayode Thomas, Idowu Oyewole and Salami Babatunde Ope, are to also join them.
Giwa reiterated that suspension became necessary to prevent further acts of violence in the state, stressing that men of the Lagos State Police Command would be deployed in different parts of the state to enforce the action and ensure safety of lives and property.
He said the state government met with some representatives of the RTEAN on Wednesday, following a protest by some members of the union demanding the removal of their national president, adding the government had assured them of a thorough investigation into the allegations levelled against the union’s president with a promise to resolving all lingering issues.
Ade.Ojo hails Mandilas GM @60, says Toyota family proud of you
The Founder of Toyota Nigeria Limited, TNL, Chief Michael Ade Ojo, has described the General Manager of Mandilas Motors, Ms. Kemi Koyejo as a performer, who takes her job very seriously.
Chief Ade Ojo, who spoke at the MUSON Centre, Lagos during the 60th birthday ceremony of Koyejo as the chairman of the occasion, showered encomiums on the GM for her contributions towards driving Toyota brand sale and development in Nigeria.
He said, “Olukemi is a performer, a wonderful lady, who takes her job very seriously. She is “Lady Toyota”. She never misbehaves and I want to pray that God should continue to bless you the more.”
Chief Ade Ojo, who recalled that Kemi’s father was his senior in high school, expressed no surprise at Kemi’s sterling performance and behaviour, given her family background.
“The Toyota family in Nigeria is very proud of you and God will continue to be with you,” he prayed.
The 84-year-old business mogul attended the event with his wife, and senior management staff of Toyota Nigeria Limited including the Managing Director, Mr. Kunle Ade Ojo.
Reiterating Chief Ade Ojo’s commendation on the Mandilas General Manager, the Managing Director of Toyota, Mr. Kunle Adeojo, also said that the Mandilas General Manager is very hard-working and has brought many ideas that have led to the growth of the Toyota brand in Nigeria.
He also used the occasion to announce that the Nigerian Institution of Mechanical Engineers has conferred on him a Fellow of the institute.
A trained engineer, Mr. Kunle Ade Ojo, has been at the helm of affairs at TNL and has taken the company to greater heights despite the challenges in the Nigeria’s auto sector.
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