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Costs hurt Cutix Plc’s earnings

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Nigeria’s weak macro-economic environment and its multiplier effect on businesses has triggered sustained pressure on the profit margin of Cutix Plc. Chris Ugwu writes

 

 

G

iven headwinds such as weak demand on the back of a squeeze on household wallets, most consumer goods companies in Nigeria have continued to find it difficult to weather the storm.

Rising cost of raw materials, driven by the challenging macro environment and fiscal and monetary headwinds have resulted to a marked reduction in domestic output, which has impacted negatively on companies’ bottom line.

 

 

The impact has been more especially on multinational consumer goods firms that have taken up foreign currency liabilities.

 

 

Also, infrastructural deficit, particularly electricity supply and bad road networks, have continued to hit hard on manufacturers, at times forcing some of them to fold up.

The prevailing macro-economic indicators also point to a sector, which is headed for collapse, if adequate measures are not taken to arrest the situation.

One of the companies negatively affected is Cutix Plc, which has seen fluctuations in profits.

 

 

The company had begun the financial year 2018 with a considerable gain of 7.21 per cent and also closed the year with eight per cent growth despite declines recorded during the half year and Q3.

 

 

However, due to high cost of sales occasioned by operational challenges, the company began the 2019 financial year unimpressive with a 15 per cent decline to what market watchers attributed to weak consumer demands, stiffer competition and lack of accessibility to key markets in some parts of the country, coupled with increased costs, which have resulted in slow growth of many fast moving consumer goods companies.

 

 

Following the sell offs that have enveloped equities market in recent times, market sentiments for the shares of Cutix, one of the building material firms listed on the floor of the Nigeria Stock Exchange, has also depreciated  significantly.

The share price, which closed at N2.03 per share in October 2018, has recorded a drop in growth that when the closing bell rang on Friday, the company’s share price stood at N1.50, representing a decrease of 53 kobo or 26 per cent year to date.

 

 

Financials

Cutix Plc closed the year ended April 30, 2018 impressive with 71 per cent growth in profit after tax to N440.295 million from N257.497 million recorded in 2017.

Profit before tax stood at N661.563 million during the period under review from N370.143 million posted a year earlier, accounting for an increase of 79 per cent.

Revenue grew by 38 per cent to N5.057 billion from N3.675 million reported in 2017.

 


In view of this performance, the directors recommended a dividend of 20 kobo per share to be paid to shareholders.

Cutix began the financial year with considerable gain of 7.21 per cent for the first quarter ended July 2018.

 

 

Its unaudited financial report showed that the company posted a profit after tax of N111.629 million for the first quarter as against N104.117 million reported in 2017.

Profit before tax stood at N171.737 million from in 2018 from N160.180 million posted in 2017, accounting for a growth of 7.21 per cent.

Revenue of the company grew marginally by two per cent from N1.296 billion in 2017 to N1.322 billion in 2018.

 

 

Cost of sales stood at N901.955 million during the period under review, from N925.129 million in 2017.

However, expectation that the firm would maintain growth momentum in bottom line was dashed as Cutix Plc closed the half year ended October 31, 2018 with  7.74 per cent decline in net earnings.

According to the company’s filing with the Nigerian Stock Exchange, its half year profit after tax dropped from N242.850 million in 2017 to N224.058 million during the period under review, accounting for a drop of 7.74 per cent.

The company’s profit before tax equally decreased by 7.74 per cent to N344.704 million in 2018 as against N373.616 million reported in 2017.

 

 

However, revenue increased by 2.20 per cent to N2.783 billion during the second quarter ended October 2018 from N2.723 billion recorded during the comparable period of 2017.

Cost of sales stood at N1.932 billion during the period under review from N1.920 billion in 2017.

Cutix ended Q3 with a dip in bottom line to post 9.39 per cent decline in net earnings for the nine months ended January 31, 2019.

 

 

Its nine months profit after tax dropped from N332.064 million in 2018 to N300.867 million during the period under review, accounting for a drop of 9.39 per cent.

 

 

The company’s profit before tax equally decreased by 9.39 per cent to N462.873 million in 2019 as against N510.868 million reported in 2018.

However, revenue increased by 7.51 per cent to N4.131 billion during the third quarter ended January 2019 from N3.842 billion recorded during the comparable period of 2018.

Cost of sales stood at N2.932 billion for the period as against N2.672 billion, accounting for an increase of 9.73 per cent.

 

 

Cutix reported seven per cent growth in revenue for the full year ended April 2019 to N5.434 billion from N5.057 billion in 2018.

 

 

Profit after tax rose by eight per cent to N477.070 million in 2019 from N440.296 million in 2018 while profit before tax stood at N679.332 million from N661.563 million in 2018, representing a growth of three per cent.

Based on the result, Cutix declared a final dividend of N220.1 million for the financial period ended Tuesday, April 30, 2019. This translates to 12.50 kobo per 50 kobo ordinary share.

 

 

The dividends will be paid electronically on Wednesday, October 30, 2019, to shareholders whose names appear on the register of members as at Friday, October 11, 2019, and who have completed the e-dividend registration and mandated the registrar to pay their dividends directly into their bank accounts.

However, Cutix began first quarter of 2019 unimpressive with a post of 15.42 per cent decline in net earnings for the period ended July 31, 2019.

 

According the company’s filing with the Nigerian Stock Exchange, its three months profit after tax dropped from N111.629 million in 2018 to N94.415 million during the period under review, accounting for a drop of 15.42 per cent.

The company’s profit before tax equally decreased by 15.42 per cent to N145.254 million in 2019 as against N171.737 million reported in 2018.

 

 

However, revenue decreased by 3.63 per cent to N1.274 billion during the first quarter ended July 2019 from N1.322 billion recorded during the comparable period of 2018.

The company’s cost of sales stood at N896.551 million from N901.955 million in 2018.

Profit deflators

 

 

The company had said that the operating environment in Nigeria remained very challenging despite some positive changes recorded during the 2018 financial year.

It noted, however, that the Central Bank of Nigeria took advantage of the increased foreign reserves to complement the availability of foreign exchange. With the availability of sufficient foreign exchange, the import of raw materials through Letters of Credit (LCs) increased, thereby reducing the attendant risks associated with the purchase of foreign exchange from parallel markets.

 

 

“Cutix Plc could, therefore, purchase the bulk of its foreign exchange requirements through the more cost effective official and more stable import-export (I & E) window.

“We recorded significant increases in the sale of power/armored cables due to high demand from ‘Operation Light up Nigeria’ projects in Anambra State. Nigeria’s multi-decade long electricity problems persisted during the financial year compelling our Company to rely on relatively more expensive AGO powered generating sets,” the company said.

 

 

It had earlier stated that the issue of multiple taxation had not been fully addressed by the federal and state government.

 

 

“A few government agencies are still finding alternative ways of increasing taxes which have created further hardship to local manufacturers and businesses,” it said.

 

 

The Chief Executive Officer, Mrs. Ijeoma Oduonye, had said her vision was to find success drivers and solidify on them, stressing that the company would maintain quality, which they are known for as well as good customer relationship.

According to her, the company took bold steps in the face of inflation and insisted on quality which speaks for their products pointing out that what they present to regulatory agencies is what they sell to their customers.

 

 

Oduonye, who lamented the poor power supply in the country and the influx of substandard products into Nigeria market as threat to quality goods manufactured locally, called on government to take necessary steps to protect local manufacturers.

Looking ahead

 

 

The management said: “We shall continue to drive for sustainable and profitable growth. Specific areas of focus will be capacity expansion, human capital development, improvement of operational efficiencies and improved culture of accountability.

“We will also track and take advantage of the increases in the sales of power/armoured cables especially from the continuing “Operation Light up Nigeria” projects in Anambra and other states in Nigeria.

 

 

“The company plans to continue driving its current aggressive growth ambitions. Special focus will be on volume capacity expansion and accelerated profitability whilst remaining competitive in the market place.”

Last line

Following challenges in the operating environment, the management of Cutix should proactively work towards cost reduction and optimisation in all areas of its operations to ensure the survival of the business and its sustained value creation for stakeholders.

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Business

Traders lament continuous border closure

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Traders lament continuous border closure

The sustained border closure by Federal Government has continued to destabilise commodity retailers, especially those into food item business.

Investigation by New Telegraph revealed that the situation had started creating an atmosphere of hopelessness since the Federal Government has vowed to sustain the closure till end of January 2020.

Nigeria closed its land borders to both Benin and Niger in August in what the government said was aimed at curbing smuggling of goods, especially rice into Nigeria. The closure has led to increase in food prices and subsequently pushed up annual inflation in the country.

Speaking on the development, John Paul, who sells food stuff such as rice, beans garri, noodles, among others at Egbeda market, complained that since the closure of the border his business had been affected in terms of both patronage and restocking.

He said the effect of the closure was obvious, as he has both increased the price at which he sells as well as reduce the quantity he buys.

Another woman, who pleaded anonymity, complained that the fairly used clothes she sells were now difficult to buy.

According to her, before the closure of the border she used to purchase her goods from neighboring countries at cheaper price, but with the closure, she now buys here in Nigeria but at a high price.

Before the border closure she used to sell her clothes for as low as N300 or N400 depending on the quality of the material, but now she sells them for nothing less than N600.

Another woman, who also pleaded anonymity, explained that there were goods currently on demand but not available as a result of the closure.

“Products such as sardines and some brand of sanitary wares are no longer in the market,” she added.

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ICPC bestows integrity award on FAAN staff

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ICPC bestows integrity award on FAAN staff

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has recognized a staff of the Federal Airports Authority of Nigeria, Mrs. Josephine Ugwu for her honesty and integrity in the discharge of her duties.

Mrs Ugwu was presented with the award at a two day summit on ‘Diminishing Corruption in the Public Sector’ jointly organized by the Office of the Secretary to the

Government of the Federation and ICPC in Abuja.

You will recall that in a celebrated case in the year 2015, Mrs. Ugwu while carrying out her duties as a cleaner at the Murtala Muhammed Airport, Lagos saw the sum of $12,200,000 in a toilet and submitted it to security officials. The money was subsequently returned to the owner. She has also refunded other sums lost by several other passengers at different times.

Mrs. Ugwu was subsequently given automatic employment by the Authority in recognition of her honesty and exemplary conducts.

The event climaxed with an hand shake to Mrs. Ugwu from the President of the Federal Republic of Nigeria, President Muhammadu Buhari. She was also given a brand new apartment in Lagos for her act of honesty and integrity.

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Senate pledges to help AMCON recover N5.4trn debt

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Senate pledges to help AMCON recover N5.4trn debt

The Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Senator Uba Sani, has declared that the Senate under the leadership of current Senate President, Ahmed Lawan, will join forces with the executive arm of government to wage serious and sustained war against obligors of the  Asset Management Corporation of Nigeria (AMCON), whom he described as economic saboteurs, saying they must be made to repay the over N5trillion outstanding debt owed the corporation.

Sani made the declaration at the commencement of the 2019 retreat for members of the Senate Committee on Banking, Insurance and other Financial Institutions, which began in Kaduna on Wednesday.

He said recovering the huge debt of AMCON had become a major burden for which the National Assembly will consider all options including reactivating the Failed Bank Act and at some point invite the pioneer management of AMCON under the leadership of Mustapha Chike-Obi to come and explain to Nigerians what they did during their tenure.

The chairman also hinted that the National Assembly would continue to support AMCON by providing all legislative supports including further amendment of the AMCON Act, if need be, to enable the corporation to recover the huge outstanding obligation.

He said the red chamber would bring up several motions that will enlighten the public on the real dangers of non-recovery of the debts to the economy. As the upper legislative arm provides AMCON with such support, the senator said if need be the Senate would along the line step on toes as far as the recovery of these national assets are concerned.

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NSE extends gain with N46bn

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NSE extends gain with N46bn

Nigerian stocks market yesterday sustained its positive outlook as the overall performance measures, NSE ASI and market capitalisation, rose further by 0.36 per cent each.

Market watchers attributed development to renew of confidence as bargain hunters leverage on under value stocks.

Consequently, the All-Share Index rose by 95.94 basis points or 0.36 per cent to close at 26.872.09 index points as against 26.776.15 recorded the previous day while market capitalisation of equities appreciated by N46 billion or 0.36 per cent to close higher at N12.969 trillion from N12.923 trillion as market sentiment remained on the green territory.

Meanwhile, a turnover of 239.2 million shares in 3,585 deals was recorded in the day’s trading.

The premium sub-sector was the most active (measured by turnover volume); with 121 million shares exchanged by investors in 1,527 deals.

Volume in the sub-sector was driven by activities in the shares of FBNH Plc and Zenith Bank Plc.

The banking sub-sector boosted by the activities in the shares of GTB Plc and Sterling  Bank Plc followed with a turnover of 45 million shares in 624 deals.

The number of gainers at the close of trading session was 21 while decliners closed at 12.

Further analysis of the day’s trading showed that Cornerstone Insurance Plc topped the gainers’ table with 10 per cent to close at 77 kobo per share while Oando  Plc followed with 9.89 per cent to close at N3.89 per share and Flour Mills Plc with a gain of 9.85 per cent to close at N17.85 per share.

On the flip side, CCNN Plc led the losers’ chart with a drop of 10 per cent to close at N18.00 per share. Jaiz Bank Plc followed with a loss of eight per cent to close at 69 kobo per share while Lasaco Assurance  Plc dropped by 7. 41 per cent to close at 25 kobo per share.

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FirstBank reiterates commitment to women empowerment

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FirstBank reiterates commitment to women empowerment

The Chief Executive Officer, First Bank of Nigeria, Dr Adesola Adeduntan, has restated the lender’s commitment to empowerment of women.

He stated this at the bank’s first female-focused product, ’FirstGem’, 3rd Anniversary Conference held in Lagos yesterday.

He said: “May I reiterate that FirstBank is committed to the empowerment of women. We understand their story and recognise their invaluable contributions to the economy of our nation in particular and the global economy in general.

“Having identified the gaps in their lives, both in corporate Nigeria and in the entrepreneurial space, we are committed to bridging those gaps effectively by providing the tools required for women’s empowerment.”

The First Bank CEO said he was delighted that FirstGem was already in its third year, adding that the product, which was launched on 28 October 2016, was designed specifically to meet the financial needs of both corporate and entrepreneurial women.

“This product, apart from being an account dedicated solely to women, is lifestyle-enhancing. It provides a total lifestyle support for discerning women to enable them meet their economic needs and aspirations,” he said.

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Savannah Bank: Reps summon Emefiele, NDIC boss

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Savannah Bank: Reps summon Emefiele, NDIC boss

The House of Representatives has mandated its Committee on Banking and Currency to summon the Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele and Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru, to ascertain the new status of Savannah Bank, its readiness to commence operation and to ascertain whether promoters of the bank have fulfilled all requirements to begin business.

The committee is also requested to invite the shareholders and the new management of the bank to brief it on possible ways they have fashioned to pay or refund depositors’ funds.

The resolution followed the adoption of a motion sponsored by Aliyu Da’u Magaji (APC, Jigawa), at Thursday’s plenary of the House.

The committee, which is to submit its findings in two months, has also been mandated to ensure that effective measures are put in place to avoid the reoccurrence of what led to the withdrawal of the bank’s licence and eventual closure in 2002.

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Pension: Workers invest N951.28bn in banking sector

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Pension: Workers invest N951.28bn in banking sector

Nigerian workers, who are active in their contributions under the new pension arrangement, Contributory Pension Scheme (CPS), have so far invested about N951.28 billion in the banking sector.

The investment carried out on their behalf by pension Fund Administrators (PFAs) represent 9.93 per cent of the total N9.58 trillion pension assets.

According to a breakdown of the total investment posted on the industry regulator, National Pension Commission (PenCom)’s website, the pension fund managers also invested a total of N6.84 trillion in Federal Government securities within the period, representing 71.43 per cent of the total assets.

Details of the commitment shows that Federal Government bond got the highest with N4,47 trillion at 46.1 per cent; treasury bills, N2.2 trillion (23.62%); agency bonds N10.2 billion (0.11%); Sukuk, N80.52 billion (0.84), and green bonds, N13.37 billion (0.14%).

Within the same period, a total of N125.24 billion, representing 1.31 per cent was invested in state government securities while corporate debts securities gulped N621.95 billion, representing 6.49 per cent.

In the same vein, corporate bonds got N572.41 billion (5.97%); corporate infrastructure bond, N17.79 billion (0.19%); corporate green bonds, N31.71 billion (0.33%) and supra-national bonds N4.03 billion, representing 0.4 per cent.

Other areas invested in include commercial papers, N123.28 billion (1.29%), and foreign money market securities, N1.07 trillion (11.21%).

For mutual fund, they invested N9.90 billion (0.10%) in open/close-end funds and N11.91 billion (0.12%) in Reits.

The investment choice as stipulated by law setting up the scheme also includes real etste properties, N231.48 billion (2.42%); private equity fund, N32.06 billion (0.33%); infrastructure fund, N34.89 billion (0.36%) as well as cash and other assets, N26.47 billion, representing 0.28 per cent.

From recent development, the outlook of investment is likely to expand as the regulator disclosed recently that workers in the informal sector are gradually keying into the scheme.

According to the Head, Corporate Communications, PenCom, Peter Aghahowa, 19 PFAs have registered 28,000 micro pension participants as at November.

According to the breakdown, 21,430 participants were registered as at June 2019,b while in July, 221 participants were registered. In August 2019, 1,299 Nigerians were registered, September, 2737 registered and in October, 2313 participants registered.

While over 40 million Nigerians in the formal sector have no pension plan, which account for about 65 per cent of the GDP, Aghahowa said registration had, however, been challenged due to low financial literacy.

Other challenges include the need for National Identity Number (NIN), which is one of the criteria for registration; low awareness about the scheme and inadequate technology platform to support the registration process.

He said in a bid to tackle the challenges, the commission embarked on campaign across the traditional, social and digital media, engaging with union, associations, professional bodies and non-governmental organisations.

“Though NIN has slowed down the process of micro pension registration, PenCom has, however, collaborated with the National Identity Management Commission (NIMC) to ensure that participants get their numbers on time to fast track registration.

“The commission is working on having its own USSD code to ease payment of pension contribution for enrollees,” he added.

Though the micro pension scheme is moving at a slow pace, the President, PenOp, Aderonke Adedeji, said there was need to give it time in order to avoid mistakes.

Speaking on the growth of the industry, Adedeji said 15 years after setting up the Contributory Pension Scheme, it has grown to over N9.trillion.

“However, we are not yet where we want to be. We need to address the issue of transfer window and the slow registration of NIN, but we are making progress in that aspect.

“In recent time, we have been experiencing slow pace of growth of the industry and the reason is not far-fetched.

“In terms of the state of the Nigerian economy, we have increase in unemployment rate which is a threat to the growth of the industry,” she added.

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IGR: Taraba woos investors

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IGR: Taraba woos investors

To boost its internally generated revenue Taraba State Governor, His Excellency, Arc. Darius Ishaku, has called on local and foreigners to invest in its Mambila Beverages Nigeria Limited so as to expand the production of Highland Tea.   

Ishaku, who disclosed this to journalists during the launch of the tea in Lagos, said his administration planned to hands-off running of the firm soon and targeting interested investors both foreign and local to partner with the state government to expand the production.

According to him, the company currently employs over 3,000 people and also accepts green leaf from about 2,000 out growers who cultivate tea on 800 hectares of farmland across villages on the Mambila Plateau, which is enhancing the economic viability of communities on the Mambila Plateau and Taraba State at large.

He said that Mambila Beverages Nigeria Limited, makers of Highland Tea, was one of the 25 moribund companies he revived under his rescued mission during his  first term in office, all in a bid to create employment for Taraba citizens and generate more IGR for the state.

Speaking on the choice of Lagos to unveil the commodity, the governor stressed that Lagos was strategically chosen as venue of the launch because of its population, large market and returns of investment, saying that the firm plans to set up its Lagos office for the distribution of the product.

“Lagos, the largest market in Africa, a city of over 20 million people, you cannot but have to deal with them. The idea is to bring our Highland Tea from Taraba to Lagos where the large market is available so that we can expose it to Nigerians here. After the acceptability of the product here, we will then think of West African countries. We will export but let’s satisfy the home demand.

“Nigerians don’t even know much about Highland Tea. Some people have taken it, they love it but it’s not in the market. We are going to bring it to the market in Lagos.”

The governor explained that Highland Tea had demonstrated to be a home grown tea that is better than foreign ones in terms of health.

Speaking on the Mambila Beverages Nigeria Limited, Ishaku noted that the company was a subsidiary of Taraba Investment and Properties Limited, which was incorporated as a private limited liability company in 2012 to manage the assets acquired by the Taraba State Government.

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CBN to create 2m jobs via cassava value chain

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CBN to create 2m jobs via cassava value chain

In line with its ongoing strategic intervention in key sectors of the economy, the Central Bank of Nigeria (CBN) is intervening in cassava production, which it said has potential of providing two million jobs across value chain.

To bring cassava’s enormous potential to fruition, CBN governor, Mr. Godwin Emefiele, yesterday in Abuja, facilitated the signing of Memorandum of Understanding (MoU) between Nigeria Cassava Growers Association and Large Scale Cassava Processors.

Emefiele, who underscored importance of cassava as agriculture commodity, said Nigeria is hugely blessed with the commodity.

He disclosed that Nigeria imports cassava derivatives valued at about $600 million annually.

The CBN governor linked the apex bank’s interest in cassava value chain to President Muhammadu Buhari’s economic diversification programme for Nigeria.

This, he said, was because economic diversification is an essential tool for national development, pledging that CBN would leave no stone unturned towards repositioning Nigeria on the map of the world not just as the leading cassava producer, but a processor as well.

To achieve the cassava sufficiency goal, he said the CBN was holding consultations with the International Institute for Tropical Agriculture (IITA), Ibadan and the National Root Crops Research Institute, Umudike.

He said: “We place a high premium on cassava because the commodity can generally be used for different uses along the value chain. The value chain has enormous potential for employing over two million people in Nigeria if well harnessed, due to the diverse secondary products that it offers.

“Some of the products include High Quality Cassava Flour (HQCF), starch, sugar syrups and sweeteners, chips for domestic livestock feed and for export to China, Ethanol/bio-fuels, High Fructose Cassava Syrup (HFCS), Fuel Ethanol (E10) as well as Animal Feed from cassava waste among others”.

“In our midst today are large corporations like Nestle, Flour mills, Promasidor, Unilever who require the secondary outputs from cassava such as starch, glucose, sorbitol etc. as raw materials for the production of their final products. We also have the companies whose responsibility is the processing of cassava to starch, glucose, ethanol etc., as well as members of the Cassava Farmers Association,” Emefiele said.

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Economic devt: FG tasks CIS on policy proposal

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Economic devt: FG tasks CIS on policy proposal

In a bid to address infrastructural development in the country, the Federal Government has called on Chartered Institute of Stockbrokers (CIS) to come up with policy proposals that will drive the economy.

The Federal Government made this known at the 2019 edition of the CIS annual conference, which held in Lagos yesterday.

Speaking on the theme, “Boosting capital market competitiveness in a challenging macro-environment,” Minister of Industry, Trade and Investment, Otunba Richard Adebayo, said it would be a welcome idea if the CIS  can come up with  policy proposals to support and address Nigeria’s infrastructure challenges while government will incentivise and provide the enabling environment to support this objective.

The minister, represented by Dr. Francis Alaneme, Director, Federal Ministry of Industry, Trade & Investment, said: “We declare our willingness to partner with the CIS in ensuring the necessary enabling environment that will further stimulate and boost competitiveness in the capital market as well as ensure a coordinated and integrated approach to Nigeria’s financial sector is attainable. The best way to improve competitiveness is through a mixture of policies designed to help, improve capital market competitiveness.”

Chairman, Capital Market and Institutions Committees, House of Reps, and other committee members, Honourable Babangida Ibrahim, stated that the theme was timely and addresses the need for effective policies that will drive the market forward.

Ibrahim noted that investor confidence as well as unclaimed dividends remained major issues affecting the growth and development of the capital market and called on the institute to devise means of bringing up policies that will affect the market and the economy positively.

His words: “I want to assure this institute that the committee is ready to work with the CIS and already the National Assembly and House of Reps in particular are aware of the major challenges facing the capital market in recent times. As a result of that, we have already started engaging with some of the key stakeholders including the institute on the best way forward.

“I would like to appeal to the institute to be unofficial advisers to the government and continue to monitor the activities of the government as regards policies affecting the market so as to ensure we move the capital market forward.

“The theme is timely and there are certain actions that must be taken in order to boost the competitiveness of the market. One of the challenges facing the capital market is investors’ confidence because of the inability to get the kind of gains they want. Recently, we brought a motion in the house to investigate unclaimed dividends and we discovered that it is growing day by day and so I will appeal to this institution and other key players that by the time we commence the public hearing, all these challenges will be tackled.”

Corroborating him, Vice-Chairman, Senate Committee on Capital Market, Senator Binos Yaroe, charged the institute to come up with policy proposals that will enhance the competitiveness of the market.

“The challenges the Nigerian capital market is facing cannot be emphasized and the economy has never been as bad as it is today and it is a known fact that the capital market is the barometer of any economy. The market indices have not been encouraging but for the positive impact of MTNN and Airtel Africa it would have been much worse. In that regard, the National Assembly is ready to partner and support the institute to ensure that our market is more competitive,” he said.

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