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CSCS Grows Revenue by 39.2%, Pays N3.7Billion Dividends

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In keeping to its commitment of ensuring strong and sustainable returns to its shareholders, the Board of Central Securities Clearing System (CSCS) Plc has proposed a total dividend of N3.7Billion to its shareholders, reinforcing the value accretion to its equity owners, who have seen notable rise in share price of the Company over the past year.

The dividend proposal, which was announced at the Company’s 28th Annual General Meeting that took place today at the Civic Centre, Victoria Island, Lagos on Friday, May 2022, was unanimously approved by elated shareholders, who commended the Executive Management for an incredible performance, despite the challenging operating environment.

The N3.7Billion dividend, which translates to 83.7% payout ratio, reflects the resilient profitability of the Company, notwithstanding the impact of lower trading activity on most Exchanges in the Nigerian capital market and inflationary pressures.

Consolidating on its diligent earnings diversification drive, the Company grew revenue from core operations and ancillary services by 39.2% to N6.4Billion from N4.6Billion in 2020, as it almost quadrupled earnings from ancillary services from N526million in 2020 financial year to N2.2Billion in 2021 financial year.

Notably, income from ancillary services contributed 33.3% and 21.5% of operating revenue and total income for the year respectively, underpinning Management’s strategy towards diversifying and strengthening the earnings fundamentals of the Company, with the ultimate objective of creating sustainable and superior wealth for shareholders and its broader stakeholders.

Addressing shareholders, Mr. Oscar Onyema OON, Chairman, Board of Directors of CSCS Plc said; “Notwithstanding the volatile operating environment and moderated capital flows, as reflected in the subdued capital market activities, the earnings fundamentals of your Company remained resilient and indeed stronger than ever.

This fact is evident in the impressive revenue growth of 39.2%, driven by stellar growth in ancillary income.

The equity market recorded one of the weakest secondary market activities in the past few years, with the average daily trade value of N3.9billion, some 10% below the trading activity recorded in 2020 financial year, explaining the tepid transaction fees.

Albeit income from ancillary services recorded a significant boost, contributing N2.2billion or 21.5% of total income in 2021FY, from N526million or 11.3% of total income in 2020FY.

This performance reinforces the capacity of the Management in delivering on the Board’s vision result of diversifying the business and enhancing the value accretion prospect to shareholders in a sustainable manner.

More importantly, my colleagues and I on the Board of your Company, are excited at the prospect for new offerings arising from strategic partnerships and new initiatives.

In our oversight role, we are working with the Management to invest relevant resources towards exploring new frontiers for growth, especially as these initiatives are expected to foster retail investor penetration and broader capital market growth.”

While commenting on the outlook for the business, the Chairman noted: “typical of a pre-election year, 2022 comes with its unique macro challenges but I am optimistic on the earnings capacity and overall resilience of our business, as we hope to consolidate on the strong foundations and extract synergies opportunities with our participants and partners in sustaining the positive trajectory of the business.

Hence, with the support of shareholders and other stakeholders, CSCS would continue to deliver superior performance and create wealth for shareholders.

In the same vein, Mr. Haruna Jalo-Waziri, the Chief Executive Officer, CSCS Plc said; “Reflecting the ingenuity of our participants and more importantly quick adoption of new remote access technologies, the Nigerian capital market remained active through the prolonged COVID-19 crisis. The collaboration of our regulator and participants has been incredible in sustaining our operational protocols and IOSCO PFMI standards.”

“Though clearing and settlement activity waned by 10.2% due to lower participation of foreign investors in the Nigerian equity market and a host of macro challenges, we are excited at the growth in our depository assets by 6.1% to N23.0trillion, reflecting new listings of securities across our multiple Exchange partners as well as issuers’ and investors’ confidence in the safety and secured accessibility of our systems.

Continuing, Mr. Jalo-Waziri said: “Despite the average inflation rate of 17.0% during the year, we sustained our cost efficiency strategy, leading to a 1.6% decline in operating expenses.

Overall, we achieved N5.8Billion and N4.4Billion Profit Before Tax and Profit After Tax respectively, underpinning the resilience of the business and commitment of my colleagues and I, in delivering on our pledge to sustainably create value for shareholders and our broader ecosystem.

“It has been twenty-five years of meritorious service, as the infrastructure for the Nigerian capital market. We have pioneered a number of initiatives and efficiencies in the market and have enjoyed the best of collaborative engagements with different stakeholders.

“Whilst we relish our progress working with other stakeholders in transforming the Nigerian capital market, we reckon there is a long way to go in bridging the gap towards our aspiration of positioning the Nigerian capital market as the hub of securities services in Africa and one of the leading capital markets, globally.

“To this end, we have reinvigorated our strategic thrust with the development of a medium-term playbook that would enhance our capabilities in executing new initiatives towards deepening the Nigerian capital market and strengthening our business growth frontiers for the mutual prosperity of all our stakeholders.”


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E-Financial

Banks, Others Raise N2.7 Trillion from Capital Market –  SEC

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Securities and Exchange Commission (SEC) has disclosed that banks and other companies raised over N2.7 trillion from the capital market in recent times.

Banks, Others Raise N2.7 Trillion from Capital Market -  SEC

The figure, which includes equity capital, excludes amounts raised by fund managers in the capital market.

Of the total amount, about N1.7 trillion was raised by banks through their recapitalisation exercises, according to the SEC.

Dr. Emomotimi Agama, director-general, SEC, shared these insights during the commission’s 2024 journalists academy, themed “Fintech: Leveraging Technology to Drive Capital Market Participation”.

He emphasised the importance of the event in promoting transparency, confidence, and awareness within the Nigerian capital market.

“In terms of equity rights and public issues within the capital market, the figure is closer to 2.3 trillion to 2.7 trillion. This excludes amounts raised or refinanced by fund managers and other funds generated during the year,” said the executive commissioner, operations, at SEC, Mr. Bola Ajomale, adding that, “So far, we have reached 2.7 trillion, and we are progressing steadily.”

Dr. Agama also emphasised the SEC’s collaboration with the Nigerian Financial Intelligence Unit (NFIU) to ensure Nigeria exits the Financial Action Task Force (FATF) grey list. The effort is critical to strengthening Nigeria’s financial sector and maintaining international financial credibility.

He noted that SEC was among 11 government agencies in Nigeria that achieved 100% implementation of recommended reforms under the Presidential Enabling Business Environment Council (PEBEC). The reforms aim to improve service delivery, enhance transparency, and attract both foreign and domestic investors.

Dr. Agama highlighted notable shifts in macroeconomic indicators and stated that since the current SEC management assumed office, significant steps have been taken to reposition its operations. Key initiatives include: creation of specialized departments, enhanced regulation, and registration of capital market operators that has seen the onboarding of FinTech companies under its Regulatory Incubation Programmes (RIP and ARIP).

He also highlighted the SEC’s approval of the Ministry of Finance Incorporated Real Estate Investment Fund as part of efforts to address Nigeria’s housing deficit. The fund supports affordable mortgage financing, aligning with the federal government’s One Million Homes Initiative.

He said SEC remains committed to implementing its Revised Capital Market Masterplan (2021-2025), focusing on stakeholder engagement, awareness creation, capacity building, and regulatory frameworks for innovative financial products.

Dr. Agama provided a glimpse into the Commission’s 2025 outlook, which will prioritize: Enhancing market transparency and investor confidence; leveraging financial technology for inclusion and innovation; and strengthening collaboration with domestic and international stakeholders to maintain financial stability.

By addressing key regulatory challenges and fostering innovation, the SEC aims to position the Nigerian capital market as a model of excellence and a driver of economic growth.


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E-Financial

BoI Raises Over $5Bn Funding, 2Bn Euro Syndications

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In its bid to provide adequate funding for Nigeria’s industrial development finance, the Bank of Industry Limited, BoI, has raised over $5 billion in international funding instruments.

The bank has also executed €2 billion loan syndications which is the largest fundraising in its history and the largest syndication in the history of African development finance institutions, DFIs.

To adequately deploy these funds the bank has created over 300 Business Development Service providers supporting SMEs nationwide. The bank also has established a robust onlending program with various financial institutions, including microfinance banks and fintechs.

These were disclosed by the Managing Director of the bank, Dr Olasupo Olusi, while briefing newsmen in Lagos on the bank’s 65th anniversary.

He stated: “In 2017, BOI commenced raising funds on the international market with a $750 million AFREXIM loan. Since then, we have successfully raised over $5 billion from the international capital markets through Eurobonds, loan syndications, and green finance instruments. This month, we concluded a global loan syndication that raised nearly 2 billion euros.

“One key thread in achieving these milestones through the years is our partners. BOI has established strategic partnerships with key local public and private institutions, as well as global financial and multilateral institutions to enable the bank to fulfill its mandate effectively. BOI partners with state governments, and foundations to establish the “Matching Fund” scheme.

“We also have partnerships with trade associations, such as the National Association of Small and Medium Enterprises (NASME), Nigerian Association of Small-Scale Industrialists (NASSI), and Manufacturers Association of Nigeria (MAN), to deepen real sector financing.

BOI recently signed a partnership agreement with SMEDAN to provide Nano and Micro Enterprises in Nigeria with a N1 billion fund at a single-digit interest rate. We have partnerships with several other public agencies like NCDMB, to support specific sectors.”

Listing further achievements of the bank, Olusi stated: “In November 2023, the Federal Government of Nigeria appointed BOI as the executing agency for the N200 billion FGN MSME Intervention Fund, which includes a N50 billion Presidential Conditional Grant Scheme (PCGS), a N75 billion Manufacturing Sector Fund, and a N75 billion MSME Intervention Sector Fund.

This program is currently being disbursed and there are numerous stories on the impact on private enterprises.

“Our strategic partnerships also extend to numerous organisations, such as African Development Bank (AfDB), the African Finance Corporation (AFC), Investment Climate Reform (ICR) initiative, the African Guarantee Fund (AGF), the Multilateral Investment Guarantee Agency (MIGA), the United States Export-Import Bank (USEXIM), the International Finance Corporation (IFC), etc. and several others.

“In the last twelve months, we have also revised our strategy to focus on impact and   introduced various strategic initiatives in alignment with President Bola Ahmed Tinubu’s Renewed Hope Agenda and in response to emerging macroeconomic issues.

 


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E-Financial

PalmPay Reaffirms Commitment to Ensuring a Safe Financial Ecosystem @ Anti-Fraud Walk

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As part of the commemoration of 2024 International Fraud Awareness Week, PalmPay over the weekend organized anti-fraud walk in Ikeja area of Lagos aimed at educating Nigerians on the need to secure their personal transactions information against fraudsters.

Mr. Chika Nwosu, managing director, PalmPay speaking at the event expressed PalmPay’s commitment to ensuring a safe financial ecosystem as events like this are central to that mission.

“This global initiative underscores a pressing issue that touches individuals, businesses, and economies alike—fraud. This week serves not only as a reminder of the pervasive risks posed by fraud but also as a call to action to combat it through education, awareness, and collaboration.

“Fraud is more than just a crime, it is a systemic threat that undermines trust, compromises security, and disrupts progress. Its effects are far-reaching, impacting personal livelihoods and the integrity of businesses.

“As digital payment platforms rapidly expand across Nigeria, fraudsters have unfortunately seized the opportunity to exploit vulnerabilities in the system. Mobile, web, and POS channels are now prime targets for criminal activities. Recent statistics from the Financial Institutions Training Centre (FITC) reveal that over 11,500 fraud cases were reported in Q2 2024—a stark reminder of the growing sophistication and persistence of these threats.  These figures are more than numbers; they represent real people whose trust has been broken and whose finances have been compromised.

“Fraud prevention is a collective effort. Individuals, businesses, and governments must work together to build a robust defense against this menace.

“On the people side, we need to educate people on the need to safe guard their PIN because when you compromise your PIN if fraud happens from that end it will not be our fault. It is better we educate people to be aware so that they don’t compromise their PIN or password.

“At PalmPay, we recognize that combating fraud begins with awareness. That is why we have taken a proactive approach to ensure that our users and the broader community are equipped with the knowledge and tools they need to stay protected.

“Our campaign this week focuses on empowering individuals to safeguard their digital identities, spot fraudulent schemes, and take swift action when they encounter suspicious activities,” he stated.

He highlighted some of the key lessons for fraud prevention  to include:

  1. Stay Informed: Regularly update yourself on emerging fraud tactics and the steps to counter them.
  2. Protect Your Information: Safeguard personal and financial details, using strong passwords and secure platforms.
  3. Verify and Report: Always verify requests for sensitive information and report suspicious activities promptly.
  4. Educate Others: Share what you’ve learned with family, friends, and colleagues, creating a ripple effect of awareness.

At PalmPay, we are deeply committed to leading the fight against fraud. This commitment extends beyond our platforms and services. It is reflected in our efforts to collaborate with industry stakeholders, engage with communities, and invest in cutting-edge security technologies.


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