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Just in: FBNH, UBA, GTCO, Access Bank, drop out of trillion market cap club
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By Kayode Sanni-Arewa
Nigerian banks experienced a challenging April, as all major banking stocks posted losses month-to-date.
This downturn coincided with the first month-to-date decline in the NGX All Share Index of the year, which lost 6% in April this year.
The most impacted were the FUGAZ banks—First Bank, UBA, GTCO, Access Bank, and Zenith—although Zenith was the only one to maintain its position in the SWOOT (Stocks Worth Over One Trillion Naira) index.
As of December 2023, Nigeria’s largest banks had a total net asset value of N9.7 trillion but only a combined market capitalization of N4.2 trillion ($ billion), translating to a price-to-book ratio of 0.43, or 43%.
This indicates that investors significantly undervalue banks compared to their book values.
Amid this, challenger banks like Opay and Kuda Bank are valued above $1 billion, despite their smaller operational scales.
According to the Nairametrics SWOOT Index, as of April, FBN Holdings, UBA, GTCO, and Access Bank each fell below the trillion naira market cap, a level they last exceeded in January when they briefly hit this milestone.
Access Bank: Since January, these banks have seen substantial declines in market capitalization.
For instance, Access Bank, Nigeria’s largest bank by assets, last reached the N1 trillion mark in late January.
By the end of April, its market cap had fallen to about N598.9 billion, despite having over N32 trillion in total assets and N2.5 trillion in net assets.
Similarly, UBA, with total assets and net assets of N20.6 trillion and N2 trillion respectively, saw its market cap drop from over N1 trillion in January to N817.3 billion at April’s end.
FBN Holdings, Nigeria’s oldest bank, saw its market cap peak just above N1 trillion in early April but fell to N857.8 billion by April 30th, 2024.
GTCO also experienced a dip; valued above N1 trillion as recently as April 26th, it ended the month with a market capitalization of N962.3 billion.
Zenith Bank, however, remained in the SWOOT, though it risks dropping below if the sell-offs continue into May 2024. It has total and net assets of N20.3 trillion and N2.3 trillion, respectively
Why Nigerian banks are undervalued
Several factors contribute to these low valuations relative to net assets, despite consistent dividend payouts.
Some analysts attribute it to the high liquidity of bank stocks, while others point to a general disinterest in the Nigerian stock market, suggesting that intrinsic stock values are seldom reached.
A more recent factor is the banking recapitalization announcement by the apex bank, which requires banks to raise over N4 trillion in new capital.
This has likely prompted a sell-off, as lower share prices benefit bank shareholders when the capital increase is through a rights issue.
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Day 3: Retired Nigerian police officers continue protest on Police Bills(Photos)
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By Emmanuel Agaji
Association of Retired Police Officers, Kaduna chapter protest on Police Bills entered day three today, February 27, 2025, Thursday at the National Assembly.
Naijablitznews reports that some of the placards being displayed by the retired simply indicate that the output and input of November 19th, 2024 public hearing on the Bills should be implemented.
They equally supported the fact that the police force should exit the contributory scheme.
The very aged retired officers could be seen sighted sitting under the son bearing placards which they display for motorists to look at.
See photos:
News
Just in: Police restore Obasa’s security details, withdraw Meranda’s as ex-Lagos speaker set for return
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By Kayode Sanni-Arewa
Mudashiru Ajayi Obasa who was impeached as speaker of the Lagos House of Assembly on January 13, 2025, is set to return.
Daily Trust understands that his security details have been restored just as those of Hon. Mojisola Lasbat Meranda, have been withdrawn.
Meranda was Obasa’s deputy before the impeachment. After his removal, the house unanimously elected Meranda, making her the first female to occupy the position in the history of the state.
Though she’s yet to officially resign as the Speaker of the House, her fate was reportedly sealed over the weekend by key All Progressives Congress (APC) leaders who intervened in the crisis rocking the House of Assembly.
Former National Chairman of APC, Chief Bisi Akande, former Governor of Osun State, Chief Olusegun Osoba, former Commissioner for Justice, Dr. Muiz Banire and members of the Governance Advisory Council (GAC) and some of the lawmakers had met over the weekend to find a resolution to the crisis.
It was at the meeting that the fate of Meranda was sealed as she was reportedly asked to vacate her seat.
There are indications that Obasa might return as the Speaker as following the resolutions reached by the leaders which largely favoured Obasa’s return.
“In truth, what they said was that Obasa’s removal was illegal and the lawmakers were directed at the meeting to go and return him,” sources familiar with the matter had said.
It was not clear yet when the House would reconvene to effect the expected changes.
Meranda had adjourned plenary indefinitely two weeks ago when there was commotion in the assembly as a result of invasion by operatives of the Department of State Services (DSS).
News
Canada deports more people, particularly those rejected for refugee status
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By Kayode Sanni-Arewa
Canada deported more people last year to hit its highest annual level of removals in about a decade, overwhelmingly deporting people whose refugee claims were rejected, data obtained by Reuters showed.
By late November, Canada’s removal numbers had reached their highest point since at least 2015, when the governing Liberals led by Prime Minister Justin Trudeau came to power
The government has also budgeted more money for deportations this year.
Trudeau’s government, now in its final days, has sought to show Canadians it is getting tough on immigration amid a rising backlog of refugee claims and a backlash against immigrants over concerns that immigration is exacerbating a housing shortage.
Canada’s border agency said the spike in deportations is tied to a “significant increase” in the number of people applying for asylum since 2020, prompting it “to enforce removal orders in a more efficient and timely manner.”
Reuters requested border agency data on deportations, excluding people who left of their own accord and those sent back to the United States as part of a bilateral agreement under which would-be asylum-seekers are turned back.
The remaining total shows Canada deported 7,300 people between January 1 and November 19, 2024, an 8.4% increase over all of 2023 and a 95% increase over 2022.
The border agency did not provide equivalent figures for all of 2024. This week, it posted data online from 2019 to 2024 that do not break down deportations excluding returns to the US under that bilateral agreement. This data also showed an increase in the number of deportations.
About 79% of the 7,300 people deported in the first 11 months of last year were deported because their claim for refugee status had been rejected. That is up from about 75% in 2023 and 66% in 2022.
About 11% of the people deported last year through November 19 were removed for non-compliance with the conditions of their stay in Canada unrelated to a refugee claim, for example, for overstaying a visa. About 7% were deported because they had committed a crime either in Canada or elsewhere.
A spokesperson for Public Safety Minister David McGuinty did not immediately respond to questions about the deportations.
A spokesperson for the border agency said in an email that removal numbers fluctuate.
“The number of removals of those who received a negative asylum determination have increased each year since emerging from the pandemic,” wrote the spokesperson, Luke Reimer.
“These efforts are essential in maintaining the integrity of Canada’s asylum system.”
Canada has been dealing with record numbers of refugee claims, although the monthly totals dropped to 11,838 in January from 19,821 in July. There were 278,457 claims pending as of last month – the highest pending total in decades.
A campaign flag for US President Donald Trump flutters from a private residence between the Canada and US border in Mooers Forks, New York, US, Feb 4, 2025. REUTERS/Brian Snyder
MORE MONEY FOR DEPORTATIONS
One concern with these removals, especially those targeting failed refugee claimants, is that people can be deported while still appealing decisions about the risk they face if returned to their home countries, said Aisling Bondy, president of the Canadian Association of Refugee Lawyers.
“They could be removed even if there is significant error in the risk determination,” she said, worrying people are being deported to places they will face persecution.
Reimer said in an email that the agency “only actions a removal order once all legal avenues of recourse that can stay a removal have been exhausted.”
The rise in refugee claimant deportations speaks to the government’s priorities, including a tough stance on migration, said University of Toronto law professor and Human Rights Chair Audrey Macklin.
“You can decide that you want to make a show of how many people you are deporting to show that you are effective at policing the border,” Macklin said. “Then you go with people who are easier to find and remove, and those are going to be, often, refugee claimants.”
he prospect of deportation could also deter would-be refugee claimants, she said.
Canada is on track to deport even more people in the coming years: Late last year, the government pledged C$30.5 million ($21.3 million) over three years to increase deportations.
Canada Border Services Agency spent C$65.8 million on removals in 2023-24, up from C$56 million the year before.
At the same time, Canada has pledged C$1.3 billion toward border security to appease US President Donald Trump as he threatens sweeping tariffs on Canadian imports.
The ranks of those eligible for deportation could grow.
Canada is slashing temporary and permanent immigrant numbers and part of its plan relies on more than 1.2 million temporary residents, including workers and students, leaving the country next year, and another 1.1 million leaving the following year, according to government figures.
Immigration Minister Marc Miller has said Canada will deport people who do not leave on their own.
“It is people’s choice not to leave, and if they don’t, they face the consequences – including, after due process, deportation,” he told Reuters last year.
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