FMDQ Clear joins forces with Frontclear to deliver clearing structure for OTC market IHEANYI NWACHUKWU to significantly improve access to repos, interest rate, currency derivatives MDQ Clear Limited and liquidity. with the support of a settlement FMDQ OTC Securities Exchange, nation of a long-standing working Frontclear are jointly fa- Agreement for this first in the guarantee fund. and Frontclear, is a Netherlands- relationship focused on improving cilitating a clearing struc- Nigerian market has been signed FMDQ Clear Limited (FMDQ based development finance com- how the Nigerian OTC financial ture to strengthen the and it will enhance Nigeria’s first Clear) is a wholly-owned clear- pany. market functions and follows-on Over-The-CounterF (OTC) market central clearing house structure, ing and settlement subsidiary of The collaboration is the culmi- Continues on page 34 NEWS YOU CAN TRUST I ** FRIDAY 01 JUNE 2018 I VOL. 15, NO 67 I N300 @ g Stanbic Africa Holdings pays over N60bn for additional 1.1bn shares in Stanbic IBTC Holdings …lower free float may push stock higher IHEANYI NWACHUKWU tanbic Africa Holdings Inside Limited, the majority shareholder in Nigeria list- ed Stanbic IBTC Holdings SPlc has increased its stake in the TOLU financial institution through an ‘Toolz’ “off-market” transaction valued in excess of N63billion. ONIRU - By acquisition of an additional DEMUREN Continues on page 34 Buhari signs ‘Not Vice President Osinbajo (l) during a keynote interview with David Pilling of Financial Times, at the too young to We want to win the World Financial Times Nigerian Summit, with the theme ‘Dispelling Uncertainty and Building Resilience’ Cup for Nigeria - Mikel in Lagos. run’ bill P. 3 5 FG still looking at selling stakes in oil joint ventures, signing AFCTA Osinbajo trade deal garners support as Nigeria’s 180-day grace period nears ODINAKA ANUDU & MICHEAL ANI its stake in its joint venture did not explain further on how since then, the process has not sell down its stakes in the Joint with oil companies. far the process has gone. moved forward as no financial Ventures, the Federal Govern- ice President Yemi “We have not given up on it, a In November 2017, Nigeria advisers have been announced ment was looking at replicating Osinbajo has said lot of consultations are ongoing” first muted the idea of funding or any update given on how the the successful NLNG model that the federal Osinbajo said in a response to a the 2018 budget from restructur- process will proceed. where the FG stake is fixed at government has question from BusinessDay at ing the nation’s shareholdings A top source in government just 49 percent. The govern- not given up on its the ongoing FT Summit in Eko in joint venture (JV) companies had disclosed to BusinessDay Vplans of selling down part of Hotel Lagos. However, Osinbajo and sale of non-oil assets. But last year that in considering to Continues on page 4 2 BUSINESS DAY C002D5556 Friday 01 June 2018 NEWS Poverty reduction: Dangote tasks private sector on women empowerment … lifts 13,000 women in Nasarawa resident of Dangote income generation. ciaries in the state, so they can Group, Aliko Dan- “This we believe will help be issued with customised gote has urged pri- the beneficiaries meet their debit cards. vate sector operators livelihood needs,” he added. He said the essence was Pand Government at all lev- He explained that the to introduce banking to the els to adequately empower scheme, which was launched beneficiaries in their local women as a means of poverty a few years back, was targeted communities. reduction. at a minimum of 1,000 wom- According to him, the Dangote said once our en in each of the 774 Local beneficiaries’ accounts have women have been success- Government Areas (LGAs) of been credited with the grant fully enabled to support their the country. and that the bank’s agents homes and families, poverty “It is estimated that we have been adequately trained will gradually become a thing will spend about N10 billion and mobilised to provide the of the past in the country. on the scheme, some states beneficiaries with the basic Speaking while flag- with large population will get banking activities. ging-off the disbursement a little bit more than others,” “The foundation and the of N130million to 13,000 he said. Access bank team will be go- women in Lafia, Nasarawa Dangote said he started ing to each of the 13 LGAs in state under the Aliko Dan- the foundation in 1993 with the state to distribute the cards gote Foundation micro-grant the belief that by supporting to the selected beneficiaries scheme, Dangote promised social and economic changes in order to be able to redeem to do all within his power to through strategic investment their cash,” Dangote said. spread his wealth across the and interventions that im- Also speaking, Gov. Umaru country, towards reduction of prove the lives of the less priv- Al-Makura thanked Dongote poverty in the country. ileged he would make a posi- for the gesture describing it The Micro grant scheme, tive difference in the growth as strategic, considering the according to Dangote was of the country’s economy. hardship currently pervading one of the components of He said the four major the society. the economic empowerment goals of the foundation are “The efforts of the foun- programme of the foundation. -health and nutrition, edu- dation is in tandem with the He said the grant was cation, economic empower- Federal Government’s social aimed at providing the dis- ment and disaster relief. investment programme aimed advantaged and vulnerable in He said the foundation at providing succor to the the society with an uncondi- was partnering with Access aged, vulnerable groups and tional N10, 000 cash transfer bank to open bank accounts the poorest of the poor in the to boost their household for the all the 13,000 benefi- society,” he said. Friday 01 June 2018 BUSINESS DAY 3 businessday market monitor Commodities NSE Bitcoin E verdon Bureau De Change FMDQ Close Brent Oil Biggest Gainer Biggest Loser BUY SELL FOREIGN EXCHANGE TREASURY BILLS FGN BONDS NESTLE 2,726,227.23 -+0.97 pc $77.44 SEPLAT $-N N743.2 1.16pc N1472.5 -4.38pc 361.00 363.50 Market Spot $/N 3M 6M 5 Years 10 Years 20 Years Cocoa Powered by £-N 486.00 496.00 -0.18% 0.05% -0.00% 38,104.54 I&E FX Window 360.97 -0.20 0.00 US $2,528.00 €-N 416.50 426.50 CBN Official Rate 305.95 11.93 12.12 13.24% 13.31% 13.43% 4 BUSINESS DAY C002D5556 Friday 01 June 2018 FG still looking at selling stakes in oil Joint... Continued from page 1 cal zones in the country. ment earns billions yearly from The private sector, notably the NLNG in dividends despite Lagos Chamber of Commerce being a minority shareholder. and Industry (LCCI), has sur- This is compared to the losses prisingly backed the deal, stating declared yearly by the Nigerian that if smaller African countries National Petroleum Corporation are not afraid of it, Nigeria with (NNPC), which is owned 100 198 million people and humon- percent by the government. The gous $430 billion GDP has no federal government currently business shying away from ink- owns an average of 55 percent to ing the deal. 60 percent in the joint ventures “I don’t see anything to be with oil majors including; Mobil, afraid of,” Babatunde Paul Ru- Chevron, Total, Agip, Elf and wase, president of LCCI, said in Panocean. Lagos. In the initial plan put by the “If smaller countries are not government to sell down its afraid of it, we should have no stakes in the JVs, captured in the fear to be there,” Ruwase said, Economic Growth and Recovery adding that it was wrong for the Plan (EGRP) it had projected to federal government to have gone earn as much as N710 billion on this ‘beautiful project’ alone from restructuring of govern- at the outset only to return to the ment’s equity in the Joint Ven- private sector when it was time tures and N306 billion from sale to sign. Ruwase pointed out, how- L-R: Pat Utomi, founder, Centre for Values in Leadership (CVL)/chairman of the occasion; Uche Val Obi, of non-oil assets which together managing partner, Alliance Law Firm/author of a book titled ‘Class Action in Nigeria’, his wife Ella; Ejembi is projected to raise over N1 tril- ever, that the opposition from other private sector players were Eko, representing chief justice of Nigeria (CJN); Dotun Sulaiman, chairman, Financial Reporting Council of lion in 2018. The proceeds from Nigeria/lead speaker; Fabian Ajogwu, founding partner, Kenna Partners, and Oluwatoyin Sanni, MD/GCEO, the sales was supposed to help legitimate as the poor state of infrastructure made manufac- United Capital, at the maiden lecture series, luncheon and book presentation in Lagos, yesterday. the government fund the deficit Pic by Olawale Amoo in the 2018 budget. turers uncompetitive, stressing The government is yet to the need for the government to give any update on these plans make the business environment with many analysts fearing that more competitive for investors. planned sales may have been The AfCFTA is easily the largest trade agreement since OMO auction: CBN mops up abandoned now that oil prices are on the upward trend again. the World Trade Organisation Oil prices are forecast to stay (WTO) in 1994. It is targeted above US$70 per barrel this year. at creating a single market for This means that the govern- Africa’s 1.2 billion people and exposing each country to a $3.4 N800bn from banking system ment’s oil revenues, which in good times fund as much as 70 trillion opportunity.