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Unclaimed Dividends in Capital Market worries senate

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Unclaimed Dividends in Capital Market worries senate

The senate has called on stakeholders in the financial sector to come up with robust solutions to harness idle funds in Nigeria capital market to be channeled into productive ventures.
This was coming against the backdrop of poor performance and lost of confidence by investors in the Nigerian capital market.
Chairman, Senate Committee on Capital Market, Sanator Ibikunle Amosun made the call on Wednesday in his opening remarks at the 2021 capital market budget defence.

He expressed further concern on the issue of Unclaimed Dividends, which must be thoroughly dealt with by SEC and CSCS, for investors’ confidence and growth of the Capital Market.

“The idle or dormant funds in our system is quite worrisome considering the role those funds can play in the capital Market. Any financial system that is characterized with enormous wasteful resources in the midst of lack and financial challenges is not proactive”.

“The money market is already dominating the capital market due to reasons such as; system failure, lack of transparency in operations, insider abuse, etc, adding that the Investments and Securities Act (IST) will be reviewed.

“These informal sectors as we are all aware is a driving force that will dominate our nation’s economy. I encourage all the stakeholders present here to strategise on how to encourage Micro, Small and Medium Enterprises (MSMEs), and multinational companies to participate in the Nigeria Capital Market.

He further urged stakeholders in the capital market to all the stakeholders to intimate his Committee on all areas that require legislation in order to promote the Capital Market.

“Stakeholders must come up with robust solutions to harness the idle funds and see how it can be channeled into productive ventures.”

He therefore called on all stakeholders in the sector to study what is obtainable in other Capital Markets across the globe and enact relevant policy framework to eradicate dormant resources and proffer long lasting solutions to stem such wasteful occurrence.

“We cannot succeed where there is no cordial relationship between all players in the capital market as this may erode the confidence of both local and foreign investors.

“Furthermore, for us to operate a vibrant Capital Market, we must continuously train key stakeholders and members of staff on new trends and developments in the Capital Market to keep abreast with global best practices”, he advised

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CBN bans forex sales to Bureau De Change operators

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Bureau De Change operators in Nigeria will no longer be able to purchase forex from the Central Bank of Nigeria as the Apex Bank has put an end to the sales of forex to such outfits

The CBN Governor, Godwin Emefiele, who made the disclosure after the Monetary Policy Committee’s two-day meeting in Abuja on Tuesday indicated that the operators had defeated their purpose of existence to provide forex to retail users,  as they had become wholesale and illegal dealers.
”We observed that the BDCs have continued to make huge profits while Nigerians suffered in pain.
”The commercial banks would be monitored to provide forex for the legitimate use of Nigerians.

He stated that the MPC also retained the Monetary Policy Rate at 11.5 percent at the end of the meeting.

According to him, the Cash Reserve Ratio and Liquidity Ratio at 27.5 percent and 30 percent respectively were also retained.
“The MPC made the decision to hold all parameters constant. The committee thought by unanimous vote to retain the Monetary Policy Rate at 11.5 percent.

“In summary, MPC voted as follows, one, retain MPR at 11.5 percent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 percent, and retain the Liquidity Ratio at 30 percent,” he said.

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Gov Sule commends Buhari over Agric Institute in Lafia, says Nasarawa is safe for investors

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From Umar Egbunu Muhammed, Lafia

Nasarawa State governor, Abdullahi Sule, has applauded president Muhammudu Buhari for approving the setting up of the Agricultural Machinery and Equipment Development Institute in Lafia, the Nasarawa state capital.

This was just as the Governor urged investors to come to the state and invest, assuring them that the state capital is very safe owing to the relative peace being enjoyed across the 13 local government areas of the state.

The Governor, who gave the commendation while inaugurating, the Lafia City Mall for business, on Monday, said the commissioning of the edifice, is a testimony of the prevailing peace in the state.

He said: “I am extremely happy when I woke up this morning. In fact, last night I received the approval from Mr. President Muhamadu Buhari for the setting up of the agricultural machinery and development in Lafia, the state capital.”

Sule affirmed that, there was no better time for any investor that is interested in doing business in Nasarawa State than at the moment, that his administration was working tirelessly to ensure that there is peace and security for businesses to thrive.

While thanking the owners of the mall for undertaking such capital intensive venture, in Lafia, Sule reiterated that, his administration will continue to put measures in place, for the benefit of the people.

He, however, applauded the chief executive officer of the Lafia City Mall, Mr. Umaru Emmanuel, for his concern for the plight of the youths and for the need to impact skills on them to make them useful not only to themselves but the society.

The Governor used the opportunity of the event, to disclose plans by his administration, to establish industrial zones in Karu and Lafia local government areas.

He indicated that, with the Lafia Technical Institute completed, his administration is approaching the BPP, with a view to equipping the various workshops in the institute, namely ICT, electrical installation, fitter machinist, welders, fabrication, carpentry, cabinet makers, motor mechanics, among others, with a view to impacting desirable skills in the youths, as well as graduates who are unemployed.

He added that, following the establishment of the Nasarawa State Investment Development Agency (NASIDA), the government went on to sign an MoU on the 13, 000 hectares of land in Gurku/Kabusu, which has also been earmarked for industrial use.

“I appreciate President Buhari for giving the approval for the setting up of the new technical institute in Lafia,” he added.

“I want to thank you, the CEO of Wave Mart Group, for your continuous believe and trust in Nasarawa State. I want to thank you also for giving us the opportunity to prove to the world, that indeed, Nasarawa is safe for investment,” the governor said.

Earlier, Chairman of the Wave Mart Group, Umaru Emmanuel, said with the commissioning of the Lafia City Mall, it has brought the number of investments by his firm to three, stressing that, with Lafia now a city, it can also boast of a mall, a feature of the modern day city.

Emmanuel dismissed insinuations suggesting that, the North is not safe for doing business, adding that, for the over 7 years he has invested in Nasarawa State, he had no reason to regret.

The Wave Mart Group chairman, however appealed to the Governor, to roll out a deliberate plan in which youths of the state, will be impacted with necessary skills to make them employable.

In a goodwill message, the Emir of Lafia, HRH Justice Sidi Bage (rtd), commended the owners of the mall, for beautifying the city of Lafia and for making it possible for the people to shop under a conductive atmosphere.

The royal father, in order to show further appreciation, bestowed a traditional title on the owner of the mall, Umaru Emmanuel, as the new Dangatan Lafia.

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Reps moves to pass Youth Entrepreneurship Fund bill

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Youth entrepreneurs in Nigeria may witness better days as the House of Representatives has moved to provide them opportunities for financial succour as the bill to bring about that has advanced to second reading on the floor of the green chamber

The bill is entitled : ‘Youth Entrepreneurship Development Trust Fund (Establishment) Bill, 2021(HB. 1448) sponsored by Mr Farah Dagogo, Member representing Degema/ Bonny Federal Constituency, Rivers State.

In his lead debate, Dagogo noted that the proposed law will create a fund which shall be used to provide financial support to Nigerian youths with entrepreneurship skills.’

He expressed confidence that the proposed ‘Youth Fund would provide a vehicle for assured socioeconomic security for Nigerian youths, to galvanize them to become employers of labour, self reliance and captains of industry.’

He said the ‘Youth Fund’ will not only reduce unemployment and the social vices that characterize the Nigerian society today, but serves as a strong pointer that the country are very particular about its youths and have them in its plan.

Giving insight into the bill, the Federal Lawmaker said funding for the ‘Youth Fund’ will not be less than 5% capital estimate proposal from the Federation Account approved as appropriation for the fiscal year.

Other sources of revenue as proposed are ; profits accruing periodically from approved investments made out of the capital in the Youth Fund, one percent profit as declared by each private entity in the country, other revenue legitimately accruing to the fund by means not provided for in the Bill, and such other sums as may accrue to the capital in the Youth Fund from time to time.

Further insight into the bill indicated that( in Section 4 (1)) the youths will have a say on how the funds are to be administered by the Youth Fund Management Board, with its Chairman expected to be a youth appointed by the President on recommendation from the Minister of Youths and Sports and other recognized youth bodies.

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