The Nigerian Society of Engineers (NSE) on Wednesday urged Ministries, Departments and Agencies (MDAs) of governments to enforce Procurement law and sanction violators for national growth and development.
Mr Emmanuel Akinwole, the immediate past National Chairman of the Nigerian Institute of Electrical and Electronics Engineers (NIEEE) gave the advice while delivering a public lecture at the General Meeting of the NSE, Lagos Branch.
The lecture was titled, `Procurement in Nigeria: Law and Practice’.
Akinwole, a member of the branch said: “The message we have for the government is to ensure that all arms of government and MDAs are encouraged to obey and follow the law of the land as regards procurement.
“Also, engineers and other professionals in procurement should be properly educated as we are doing for our members today. We must teach them the rules, regulations, the processes and the procedures in Procurement Act.
“The laws are there; the sanctions are there; they should just be applied and enforced. Sanctions for disobedience and non-compliance must be enforced to bring sanity and progress to our nation,”
According to him, proper procurement guarantees competitive, quality and cost effective project which every citizen and government needs.
The engineer, who noted that there were lacunas in the procurement law, commended the National Assembly for steps being taken to amend the law for the greater benefits of the people and the nation.
“A law that has been in existence from 2007, about 13 years ago, needs to be reviewed and currently there is an amendment before the National Assembly on all the loopholes based on use over the years.
“We believe this will better the lot of professionals and practitioners in procurement,” Akinwole said.
He urged the National Assembly to ensure adequate consultation with relevant professionals in carrying out the amendment to obtain their full experience and expertise for a good law to emerge.
On increase in abandoned government projects, the expert said that most projects were started without warehousing the funds.
Akinwole said: “The basic rule of procurement is that before you start a project, you must make sure the money is warehoused and ready.
“Most times, the money is not there and the project is started. Most MDAs are caught up in this.
“Until this is changed, there will be abandoned projects.
“That is why most MDAs normally have problems compared to private organisations, which normally obey the rules more.”
The engineer urged young engineers to get trained on procurement.
Akinwole noted that the Nigerian Institute of Procurement Engineers is an arm of the NSE where interested engineers got trained on procurement.
In his remark, Dr Musliudeen Agoro, the Chairman of NSE, Lagos Branch, suggested that engineers should be involved in procurement, hence the need to be alive to their responsibilities.
On cases of building collapse, Agoro commended the Lagos State Government for efforts in stemming the tide.
He attributed the cause to the use of unqualified engineers, lack of supervision, substandard materials, inadequate funding, among others.
The meeting was held at Oyebolu Engineering Resource Centre, Works and Physical Planning Department, University of Lagos. Akoka.
Edited by Adeleye Ajayi (NAN)
Recapitalisation: AIICO not resting in its drive — MD
Fajemirokun said that the firm’s current capital base was N11.6 billion and it hoped to increase this to N15.02 billion after the rights issue and bonus issue by the end of the year.
This, he said, would bring them closer to the NAICOM new capital requirement of N18 billion by 2021.
“Rationale for the rights issue is, NAICOM, last year, increased the regulatory capital requirements for insurance industry to N18 billion, from N9 billion.
“AIICO has not rested, we have been focused on three strategies, first is private placement, successfully executed in January which raised N5.3 billion and increased our capital base from N6.3 billion to N11.6 billion.
“Of course, we had a shortfall from this, which will be raised through the rights issue and bonus issue. We applied the private placement to the loan or convertible loan repayment to the IFC, which we are currently executing.
“Also, we have investment in technology, human capital, plant and equipment and we also launched the facts behind the offer and rights issue to raise N3.48 billion, which started on Sept. 2.
“It will increase our capital base from N11.6 billion to N15.1billion, which will be deployed to two ways, technology and PPE.
“The board recommended the bonus issue which will involve capitalising some of our retain earnings with the proposed term of one share for every five shares to shareholders as at third December 2020,” Fajemirokun said.
According to him, the new capital requirement of N18 billion is due in 2021, and after the bonus issue, AIICO will be at N16.02 billion.
“The key impact will ensure that we are able to underwrite big transactions, especially in aviation and oil and gas, earn market confidence and bring us closer to meet the new requirement.
“So, at the end of this rights issue, AIICO would have met the current capital requirement which is 50 per cent (N9 billion)
“Why stakeholders should invest in the rights issue is because AIICO’s current capitalisation as at Sept. 7 was about N10.2 billion, because we have got a diversified business with a life and non-life business with complimentary business in health, pensions, asset management and others.
“We have 9 to 10 per cent market share based on gross premiums as at 2018. We have shown solid growth in our compounded annual growth rate for our total asset, total equity, PAT as well as dividend per share,” he said.
Mr Oscar Onyema, Chief Executive Officer, NSE said that the rights issue presented shareholders an opportunity to support AIICO insurance with a balance sheet, increased efficiency and repositioning to increase market share.
He said that the ultimate aim of the rights issue was to improve shareholders’ returns.
Onyema, who was represented by Mr Olumide Bolumole, said that NSE would continue to position itself as the African exchange of choice.
He said it would continue to assist listed companies to achieve their business objectives.
Mr Dipo Williams, representing the Chartered Institute of Stockbrokers, said that AIICO had been one of the stock market’s good companies that had been listed since 1990.
Williams said that AIICO insurance had seen the benefits of the market and this was why it was back for more rights issue.
He assured the firm that the stockbroking community would always support them.
At the end of the webinar, Mr Oladeji Oluwatola, Chief Operating Officer of AIICO rang the closing gong to close the market.
Edited By: Oluwole Sogunle
Infrastructure: Firm optimistic of Nigeria’s cement market
Lafarge Africa Plc on Thursday expressed optimism of the country’s cement market in spite of the COVID-19 pandemic.
Mr Khaled El Dokani, the company’s Chief Executive Officer, said this at Lafarge Africa virtual ‘Facts behind the figures’, at the Nigerian Stock Exchange (NSE).
He said that Nigeria’s cement market was promising considering its teeming population of 200 million people.
El Dokani added that the country’s enhanced emphasis on infrastructure development would increase activities in the industry.
He said that the company would remain committed to the attainment of the Sustainability Development Goals (SDGs).
El Dokani noted that Lafarge Africa’s initiatives were designed to contribute to the attainment of the SDGs.
“The company is committed to best practices such as minimising the use of water and replacing sources of water in communities, adopting non-polluting forms of renewable energy and recycling materials,” he said.
He, however, assured all stakeholders of enhanced value creation in the years ahead.
Onyema also appreciated the company for its recent interventions and donations to support national efforts toward cushioning the effect of the pandemic on the Nigerian populace.
He said that NSE would continue to provide a platform to support listed companies in meeting their strategic business objectives.
“We will continue to position ourselves as the African Exchange of choice for issuers and investors by implementing policies aimed at strengthening the corporate governance of our listed companies,” he said.
“We also launched a revamped version of our X-Issuer platform to enhance the continuous flow of relevant and
reliable market information, and to enable stakeholders make informed investment decisions.
“To cushion the impact of the pandemic and restrictions on business activities, we made provisions for palliatives to market stakeholders.
“This includes granting a sixty-day extension to listed companies on the filing of audited and quarterly financial statements,” Onyema said.
Edited By: Kamal Tayo Oropo/Wale Ojetimi
Sell pressure: Stock market extends loss 0.19%
The Nigerian Stock Exchange (NSE) extended losing streak on Wednesday, with a loss of 0.19 per cent, amid sell pressure.
The NSE All-Share Index shed 47.65 points or 0.19 per cent to close at 25,550.31 compared with 25,597.96 recorded on Tuesday.
Similarly, the market capitalisation which opened at N13.354 trillion lost two billion naira to close at N13.352 trillion.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Cadbury, Lafarge Africa, NEM Insurance, Zenith Bank and International Breweries.
Market breadth closed negative with 17 gainers against 19 losers.
Royal Exchange led the laggards’ table in percentage terms, dropping by 10 per cent to close at 27k per share.
NEM Insurance came second with 9.78 per cent to close at N2.03, while Cadbury dipped 8.39 per cent to close at N7.10 per share.
Associated Bus Company dropped 8.33 per cent to close at 33k, while Neimeth shed 7.69 per cent to close at N1.80 per share.
On the other hand, Learn Africa led the gainers’ chart in percentage terms, gaining 9.62 per cent to close at N1.14 per share.
Berger Paints garnered 7.44 per cent to close at N6.50, while Union Bank of Nigeria grew by seven per cent to close at N5.35 per share.
Oando increased by 4.44 per cent to close at N2.35, while Lasaco Assurance appreciated by four per cent to close at 26k per share.
Also, the volume of shares traded decreased by 13.59 per cent as investors bought and sold 211.82 million shares worth N2.42 billion in 3,651 deals.
This was in contrast with a turnover of 245.14 million shares valued at N3.01 billion achieved in 3,597 deals on Tuesday.
FCMB Group topped the activity chart with 30.33 million shares worth N62.18 million.
Access Bank followed with 20.97 million shares valued at N139.40 million, while United Bank for Africa sold 18.57 million shares worth N109.65 million.
Zenith Bank accounted for 17.99 million shares worth N306.34 million, while FBN Holdings transacted 13.54 million shares valued at N67.41 million.
Edited By: Chioma Ugboma/Oluwole Sogunle
NSE market indices resume week with 0.05% marginal growth
The Nigerian Stock Exchange (NSE) opened trading on Monday with a marginal growth of 0.05 per cent following buying interest in Dangote Cement and 16 other equities.
Speficially, the NSE All-Share Index grew by 13.64 points or 0.05 per cent to close at 25,605.59 from 25,591.95 recorded on Friday.
Also, the market capitalisation which opened the week at N13.350 trillion improved by N8 billion to close at N13.358 trillion.
The upturn was impacted by gains recorded in large and medium capitalised stocks, amongst which are; Chemical and Allied Products, Dangote Cement, Lafarge Africa, Neimeth and Guaranty Trust Bank.
The market breadth closed positive with 17 gainers against 16 losers.
Neimeth led the gainers’ chart in percentage terms, gaining 9.55 per cent to close at N1.95 per share.
Royal Exchange came second with 7.14 per cent to close at 30k, while Consolidated Hallmark rose by 6.90 per cent to close at 31k per share.
CAP went up by 6.67 per cent to close at N16.80, while Regency Alliance Insurance appreciated by 4.35 per cent to close at 24k per share.
Conversely, International Breweries led the losers’ chart in percentage terms, declining by 8.57 per cent to close at N3.50 per share.
Fidson lost 5.41 per cent to close at N3.50, while Japaul Oil dipped 4.76 per cent to close at 20k per share.
Also, the volume of shares transacted rose by 20.82 per cent with an exchange of 257.03 million shares valued at N3.32 billion in 3,567 deals.
This was in contrast with a total of 212.73 million shares worth N2.28 billion exchanged in 3,239 deals on Friday.
Transactions in the shares of Custodian Investment topped the activity chart with 49.27 million shares valued at N236.49 million.
Guaranty Trust Bank sold 29.56 million shares worth N739.21 million, while Lafarge Africa traded 23.58 million shares valued at N306.38 million.
FBN Holdings accounted for 19.63 million shares worth N100.12 million, while Access Bank transacted 16.38 million shares valued at N110.65 million.
Edited By: Tayo Ikujuni/Wale Ojetimi