BUSINESS AM FIRST EDITION, FEB 2018

4
BUSINESS A.M. FEBRUARY, MONDAY 05 - SUNDAY 11, 2018
NEWS
Foreign
reserves...
Page 1
government coffers from which it
spends for execution of projects.
So, it is not an accomplishment of
government,” he noted.
“Foreign reserves are used to
buy foreign goods and the question
is what type of goods should
we be paying for? Should we pay
for exotic goods like champagne
and Range Rovers?”
He also stated that the foreign
reserve figures being quoted by
the authorities are overstated,
and that the real reserves are the
gross reserves minus time-bound
commitments like the Eurobond
borrowings, which are obligations
to be paid for at a specific time.
“If we are honest as a nation we
should subtract all the time-bound
obligations and hot money investments
to get the net reserves,” he
stressed, adding that for him the
nation’s net reserves are far below
what is being reported.
“Have you heard the Americans
and the Britons talking
about foreign reserves? They
don’t, because it is not an important
economic item to measure
performance of a country,” he
explained.
He stated that even if the
figures being pushed about are
right, they are not enough to
procure foreign goods for the
teeming population in a sustainable
manner.
“The level of our reserves is not
sustainable with the rate of population
growth,” he stated further,
and asked if we must be import
dependent as a nation, given
that foreign reserves only shows
a country’s ability to support its
imports.
Proffering solutions, he said
Nigeria should look inward to
produce goods for its citizens and
that a strong currency is not one
of the solutions. He said the effect
of not supporting the local currency
would be tolerably painful,
suggesting that all the effort being
made to prop up the naira was
misplaced.
He said all Nigerians need to
make personal sacrifices. Government
should tell what the sacrifices
are upfront and show the people the
value of the sacrifice, then lead by
example, adding that the people will
bear with government because they
know that they will benefit at the end.
“Leadership is telling the
people what the sacrifices are,
the benefits and then leading by
example,” he said.
According to the CBN, the
nation’s external reserves rose to
$40.33 billion as of January 25, the
highest in four years, from $38.765
billion on December 29, 2017. The
figures represent a rise of $1.56 billion
this year.
The steady rise in the external
reserve, from July 7 last year, is
occasioned by improved foreign
exchange inflow resulting from
increase in crude oil price, dollar
inflow from foreign portfolio investors
facilitated by the Investors and
Exporters (I&E) window introduced
in April last year, as well as
reduction in dollar sale through
CBN’s forex intervention.
* Our full interview with
Chike-Obi will be published in
the next edition
104 stock dealers come under Stock
Exchange hammer in five years
Andy Nssien
The Council of The Nigerian
Stock Exchange
NEWS
has in the last five years
wielded the big stick
which caught up with
no fewer than 104 dealing members
involved in market infraction.
Last year, ten dealing members
were blacklisted for unprofessional
misconduct bordering on unauthorised
sales of clients’ shares, share
price and market manipulation,
and unauthorised transfer and sale
of clients shares. This brings to 28,
the number of those disciplined in
this category by the for the same
and similar offences since 2012,
business a.m. findings have shown.
In another category, sixteen other
dealing members, comprising the
firms and their dealing clerks, were
referred to the Economic and Financial
Crimes Commission (EFCC). In a
particular instance, a dealing clerk
was sentenced to seven years imprisonment
and a fine of N20 million
imposed on the firm by a Lagos State
High Court, following a guilty verdict
for unauthorized sale of shares and
stealing, fraudulently converting
31,886,200 units of IPWA Plc shares
worth N331,297,618.
Also, in another category, 21 dealing
members were hammered for unauthorised
sales of investors’ shares
and misappropriation of clients’
funds. The disciplinary actions for
this group included expulsion by the
Council, de-registration by Securities
and Exchange Commission (SEC) and
restitution of clients’ funds.
business a.m.’s findings in another
category indicated that 39 dealing
firms with inadequate shareholders
funds incurred the wrath of the
Exchange. Of this number eight were
active, while the others were inactive,
with three of them de-registered by
SEC. The active firms in this group
included, Atlass Portfolio Limited,
Diamond Securities Limited, Golden
Securities Limited, Financial & Analytics
Capital Limited, Marriot Securities
and Investment Co. Limited, Midas
Stockbrokers Limited, Mission Securities
Limited, and TFS Securities &
Investment Company Limited.
The Nige​rian Stock Exchange (​
NSE), in i​ts bid to improve investors’
confidence in the market commenced
a strong campaign against market
infraction by its dealing members
by introducing a dealing members
compliance report, BrokerTraX under
which the activities and operations of
quoted companies are mirrored and
sanctions meted out on defaulters.
According to the Exchange sources,
with the BrokerTraX, investors can now
make more informed decisions about
where to invest by viewing names of
dealing member firms t​hat have been
found liable for contraveni​ng market
rules. The goal is to reduce this infraction
of rules to its barest minimum in
line with the deliberate and sustain​ed
effort to restore confidence.​
Mike Ezeh, managaing director
and chief executive, Crane Securities
Limited, welcomed this initiative
by the Exchange and said the
move was capable of sanitizing the
market and, thereby, creating attractive
environment for both local and
foreign investors to operate. He said
the Brokertrax , a dealing member
compliance report, would prepare
investor’s mind in selecting which of
the stockbroking houses was viable
and engaged in genuine businesses.
He said this would prevent them from
putting their money into a drain pipe
by the wrong choice of fraudulent
dealing members.
However, he was wary of a plethora
of rules and regulations emerging from
the NSEvand the government regulatory
agency, SEC, adding that some of
those requirements, especially those
bordering on supervision were putting
a strain on financial resources of
stockbrokers.
John Egede, a capital market analyst
said the Brokertrax was a step taken in
the right direction, especially at a time
investor confidence needed to be restored
in the market. He said there were
other areas the NSE and the regulator
needed to address, especially in creating
a conducive environment for the small
investors to thrive.
He identified many charges paid by
the investors in the course of transaction
as constituting double taxation,
which is a disincentive to investing in
the market.
He said VAT and stamp duties are
overdue for scrapping, adding that
doing so would reduce the financial
burden of investing in the market.
L-R: Ganiyu Olatunde, professor and vice chancellor, Olabisi Onabanjo University; Ibikunle Amosun, governor of Ogun
State and visitor to the university; Adedotun Aremu Gbadebo, His Royal Majesty, the Alake of Egbaland; and Aigboje Aig-
Imoukhuede, at the 27th convocation ceremony of the university held in Ago-Iwoye, Ogun State, where Aig-Imoukhuede
was conferred with an honorary Doctor of Science degree
Coronation Capital chairman, Aig-Imoukhuede,
awarded honorary doctorate by OOU
Aigboje Aig-
Imoukhuede, the
NEWS
investment banker
and chairman of
Coronation Capital
Limited, has been awarded an
honorary doctorate degree by the
Olabisi Onabanjo University. He
was conferred with the degree at
Ago-Iwoye, Ogun State recently,
according to a statement issued
by Reputation Plus, a reputation
management company.
The university conferred the
award on him, according to Mbang
Femi-Oyewo, a professor and a
former deputy vice chancellor of
the university, “as a symbol of the
university‘s recognition of Aigboje
Aig-Imoukhuede’s contributions
to nation building and sustainable
development, as well as our association
with his vast achievements
in the different facets of human endeavours,
the University has found
Aig-Imoukhuede
led the 2002
acquisition of
Access Bank
and oversaw the
transformation of
the bank, leading it
to a top-5 position in
Nigeria, with assets of
$ 12 billion and 350
branches
him worthy of its Doctor of Science
(D.Sc.) Honoris Causa,” she said.
Well regarded in corporate
Nigeria, especially in the financial
services sector, as an astute
banker with great eye for detail
and diligence, Coronation Capital,
which he founded in 2014 after
he retired from Access Bank plc as
group managing director and chief
executive, is an Africa-focused
private equity and proprietary
investment firm.
He was trained as a lawyer
before his foray into banking and
is regarded as one of those who
changed the face of banking in
Nigeria.
Aig-Imoukhuede led the 2002
acquisition of Access Bank as
group managing director and chief
executive officer, and oversaw the
transformation of the bank, leading
it to a top-5 position in Nigeria,
with assets of $ 12 billion and 350
branches, employing 20,000 staff
in nine countries.
His financial industry acumen,
even while serving as chief executive
of Access Bank, saw him chair
the Presidential and National
banking industry committees. He
founded the FMDQ OTC Exchange,
which today specializes in fixed
income securities and derivatives.
Aig-Imoukhuede’s passion and
commitment to the development
of financial markets has seen him
take prominent roles within Nigeria’s
financial and capital markets.
Notable amongst these was his
election as President of the National
Council of the Nigerian Stock Exchange
in 2012; Co-Chairmanship
of the UK-Nigeria Capital Market
Task Force, and Chairmanship of
Board of Trustees of the Financial
Market Dealers Association, and
Wapic Insurance.
A director of TCX Investment
Management Company Netherland,
Aig-Imoukhuede is an entrepreneurial
philanthropist, whose social
engagements include; Chairman of
Friends Africa, a partner organization
of the Global Fund, Co-Chairman
of the Board of GBC Health,
and founding member of the Private
Sector Health Alliance of Nigeria.