A Lead British International School student in Abuja, Namitira Bwala, has filed a civil suit against the school’s management.

She alleged that the school failed in its obligation to provide her with a safe and conducive learning environment.

Naija News recalls there was outrage on social media some weeks back following the emergence of a video on the alleged bullying of a female student of Lead British International School, Abuja, by her classmates.

An X user, @mooyeeeeeee, in an SOS post accompanied by two videos, said the female student was bullied, and she is seeking justice for her.

The matter had gained national attention with stakeholders and members of the public expressing views on the incident.

The suit was filed on May 9, 2024, at the High Court of the Federal Capital Territory, Abuja, through her lawyer, Marvin Omorogbe, Esq, of Deji Adeyanju and Partners.

Bwala in the suit marked FCT/HC/CV/2341/24: Miss Namtira Bwala Vs Lead British International School Ltd which commenced by way of Writ of Summons is seeking among others a public apology that would be published on two national dailies and ₦500 million in general damages.

She claimed among others, “A declaration that by virtue of the Claimant’s studentship in the Defendant’s school, Lead British International School, Gwarimpa, Abuja, the Defendant owes the Claimant a duty of care to protect her from any physical or emotional harm as well as any breach of her privacy while under the Defendant’s custody and supervision.

“A declaration that the Defendant’s failure to prevent the assault, torment, emotional distress, pain and trauma suffered by the Claimant while under the custody and supervision of the Defendant amounts to negligent conduct on the part of the Defendant.

“A declaration that the Defendant’s failure to immediately inform the Claimant’s parents of the assault and emotional trauma suffered by the Claimant while under the custody and supervision of the Defendant amounts to negligent conduct on the part of the Defendant

“A declaration that the Defendant’s failure to cause an immediate investigation into the physical assault and emotional trauma suffered by the Claimant while under its Custody and Supervision, until the video of the incident became viral on social media, amounts to negligent conduct on the part of the Defendant.

“An order directing the Defendant to issue a public apology to the Claimant in two national daily newspapers.

“An order directing the Defendant to pay the Claimant the sum of ₦500,000,000.00 (Five Hundred Million Naira) as general damages for the Defendant’s breach of the duty of care it owes to the Claimant and its negligent conduct in failing to prevent the assault, torment, emotional distress, pain, trauma and breach of privacy suffered by the Claimant while under the Defendant’s custody and supervision.

“Cost of this suit at ₦5,000,000 (Five Million Naira).

“An order directing the Defendant to pay the Claimant post judgment interest on the sum(s) awarded at the rate of 10% per annum from the date of the delivery of judgment until the judgment is fully and finally settled.

“Such orders or other orders as this Honourable Court may deem fit to make in the circumstances.“

Meanwhile, in a statement on Monday, the Counsel for the claimant, Marvin Omorogbe Esq, expressed optimism that the lawsuit will bring about drastic changes and adequate measures to prevent similar issues from reoccurring in the school.

According to the statement, the Lead British International School, Gwarimpa, Abuja, is being sued following a viral video which showed a student being bullied by her classmates.

The victim’s family stated that the school had failed in its obligation to provide a safe and conducive learning environment, resulting in the victim’s experience.

At the moment, a date for the hearing of the lawsuit has not been scheduled.

A renowned Priest of the Catholic Archdiocese of Abuja, Rev Fr Chinenye Oluoma, has lamented the state of the nation under the incumbent administration led by President Bola Ahmed Tinubu.

In a statement issued over the weekend via his Facebook page, titled ‘RENEWED SHEGE,’ Oluoma said politicians must stop offering people hope and instead offer them jobs, electricity, education, health care, and security, as these are what Nigerians need.

He expressed his belief that Nigerians may not fully comprehend President Tinubu’s new hope agenda. Oluoma compared hope to anaesthetics, stating that anaesthetics are used to numb pain during life-saving surgeries.

He shared his concerns on Facebook, highlighting the challenges faced by the nation’s currency, the naira, which is struggling to remain below ₦1500 per dollar. Oluoma also pointed out the significant increase in prices of basic commodities, such as bread, which has risen from ₦500 to ₦1200, and other goods that have doubled, tripled, or even quadrupled in price.

According to him, “Hope doesn’t put food on the table, hope doesn’t pay school fees, hope doesn’t pay hospital bills, hope doesn’t pay house rent (which landlords increase indiscriminately and govt ignores infamously); Hope will not create jobs or make electricity supply constant.”

“The problem here is that successive governments in Nigeria keep administering large doses of anaesthetics to us without carrying out any curative surgery. Maliciously increasing the dosage and frequency once we wake up from the effect of the previous dosage.

“At worst, hope is an opium, a psychic drug that makes you feel okay and patient, maybe even comfortable with all the things going wrong.

“It sedates you but doesn’t change your condition. So, Tinubu offered us hope, not jobs, not improved earnings, not stable electricity or a buoyant economy. He offered us hope, and we bought it.”

Furthermore, Oluoma expressed the viewpoint that politicians should not be the ones providing “hope” to citizens; rather, this responsibility should be entrusted to religious leaders.

He emphasized that it is the duty of the government to create job opportunities rather than merely promising them.

He wrote: “Hope shouldn’t be what politicians offer its citizens, it should be left for clerics like my humble self. A government should offer job opportunities, not hope of jobs.

“A government should offer security, power, housing, affordable health care, education and not hope for these things. Why is Nigeria the place where politicians preach like clergy men and clergy act like politicians?

“While the former offer hope, the latter promise jobs, prosperity and other material well being they are in no position and have no capacity to give. What in God’s blue planet is going on with governance in Nigeria?

“As long as the purchasing power of the poor masses keep nose diving and the prices of basic goods and services keep skyrocketing further beyond their reach, what we have is nothing but ‘Renewed Shege’.

“Each administration will always leave our currency weaker than the previous one, a recurring decimal. One administration shows us Shege, another one comes and renews it and we keep dying gradually in hope. Let the poor citizens of Nigeria breathe, please.”

[NaijaNews]

Story highlights

• Nigerian banking stocks have suffered a sharp decline in the second quarter, exacerbated by the Central Bank’s recapitalization directive.
• The FUGAZ stocks, comprising major Nigerian banks like FBNH, UBA, GTCO, Access Corporation, and Zenith Bank, have entered a bearish phase, with share prices significantly declining in anticipation of rights issues.
• Financial analysts have noted that the share price decline typically accompanying rights issues is due to the offer of shares at prices below market rates to entice existing shareholders, thereby increasing the supply of shares and putting downward pressure on prices.

Nigerian banking stocks have experienced a dismal second quarter thus far. This downtrend follows the Central Bank’s announcement on banking recapitalization, which has set expectations for further declines in share prices.

Investors, particularly those with substantial interests in major Nigerian banks, tell Nairametrics they are bracing for these potential drops. Early trends suggest their expectations of lower share prices is panning out as they gear up for non-dilutive rights issues.

These rights issues are typically the first step in the capital-raising process and could lead to further downward pressure on stock prices they opine.

Banking All Share Index

This trend is currently reflected in the performance of banking stocks. The Banking All Share Index, which tracks some of the most capitalized bank stocks on the Nigerian Exchange, is down 18% quarter-to-date, in stark contrast to the All-Share Index, which has seen a 6% increase over the same period.

• Year-to-date, Nigerian banking stocks have decreased by 6.8%, while the NGX All Share Index has risen by 31.37%.
• This is a significant reversal from the first quarter of the year, during which banking stocks posted a 14.6% return.
• At that time, the narrative was that bank stocks were undervalued both in terms of their earnings multiple and when evaluated in dollars.
• The momentum, however, has slowed recently, largely due to newly announced banking recapitalization plans.
• Nigeria’s Central Bank has mandated an increase in the minimum share capital, requiring international banks to hold N500 billion and nationally licensed banks N250 billion. This directive indicates that the banking sector must raise over N4 trillion (about $2.8 billion) within 18 months.

As a result, investor relations teams at banks are reportedly working overtime to meet these deadlines. But with billions of shares outstanding and freely floating, bank stocks are likely to face downward pressure in the short term as investors anticipate the rights issues.

FUGAZ stocks under pressure

The performance of tier-one bank stocks, which include FBNH, UBA, GTCO, Access Corporation, and Zenith Bank (FUGAZ), points to a bearish streak even as most adjust their prices ahead of dividend announcements.

In a recent Nairametrics report, nearly all the banks dropped below the one trillion market capitalization mark, with GTCO and Zenith barely hanging on. The valuation of FUGAZ bank shares is significantly declining in response to announcements of impending right issues.

• For example, FBNH, whose share price was quoted as high as N43 per share, is now down to N25 per share.
• One investor, who requested anonymity, suggested the stock could fall further to its year low of around N18, achieved on April 24^th, if it continues to be oversold based on their technical analysis.
• A market maker with ties to the bank suggested the bank’s planned N300 billion rights issue could be priced at N15.50 per share, pointing to the same price that was mooted when the bank first announced a right issue in 2023.
• Access Corporation, Nigeria’s largest bank by total assets, has already seen its share price fall to N17.4, just N1.4 shy of its own year low of N16 per share. Access Bank also announced plans to raise N365 billion via a rights issue.
• UBA, another tier one bank, has seen its share price drop from a year high of N33.95 to just N20.50. The board also approved a rights issue for the bank. The last time UBA raised capital via a rights issue in 2015, it did so at a share price of N3.50.
• The same trend applies to Zenith Bank and GTCO, which have also seen their share prices fall from year highs of N47.35 and N53 to N34 and N40, respectively.
• They are also shy of their year lows of N31.3 and N32.7. Both GTCO and Zenith have also announced plans for the right issue.

Although all the banks have announced plans to raise capital, the dates and share prices for the capital raises have not yet been announced

What they are saying

Speaking on the issue, the president of the Association of Capital Market Academics of Nigeria (ACMAN) highlighted that a decline in share price often coincides with a rights issue.

President of ACMAN, Professor Uche Uwaleke, said the trend is commonly observed as rights issues are usually extended to existing shareholders at prices lower than prevailing market rates, aiming to incentivize shareholders to subscribe for additional shares.

Consequently, the influx of shares into the market intensifies, particularly when shareholders choose to divest a portion of their holdings, exerting downward pressure on share prices.

“A fall in share price normally accompanies a rights issue. This is because rights issues are typically made to existing shareholders at prices below current market values to serve as incentives to the shareholders to take up additional shares. So, the supply of shares to the market is increased especially when those shareholders opt to sell part of their shares which end up depressing share prices,” he said.

The Managing Director of Arthur Steven Asset Management Limited and former President of the Chartered Institute of Stockbrokers (CIS), Olatunde Amolegbe, noted that a discernible reaction has been evident since last month following the release of the recapitalization timeline by the Central Bank of Nigeria (CBN).

He emphasized that investors consistently exhibit caution regarding dilution stemming from capital-raising endeavours, particularly those entailing equity augmentation.

Amolegbe anticipates that volatility in banking stocks is likely to persist until the completion of the Rights issues.

“We’ve started seeing that reaction since last month when the recapitalization timeline was released by the CBN. Investors are always wary of dilution that typically results from capital raising exercises especially those involving equity raise.

My expectations are that volatility in banking stocks will probably continue until the rights issues are completed”.

The Managing Director of Highcap Securities Limited, Mr. David Adonri, highlighted that the post-rights Issue price dynamics are typically influenced by the prevailing market sentiment.

In a bullish market environment, prices may experience an upward trajectory following such issuances. However, he cautioned that irrespective of market sentiment, an oversupply of stocks resulting from a new issue could lead to a decline in prices.

Adonri noted that the movement of banking stocks after an impending rights issue is subject to considerable uncertainty, owing to the volatile nature of stock market fluctuations.

Outlook for banking stocks

Despite potential headwinds for investors interested in banking stocks, these conditions still provide a unique opportunity for medium-term investments.

• Banks are perhaps uniquely positioned to achieve the highest profits in their history, bolstered by central bank policies that have enhanced their earnings from foreign exchange gains and income from risk-free government securities.
• However, risks still exist in the longer term, with capital raises likely to increase the number of outstanding shares. The more shares a bank has, the greater the pressure on it to deliver strong earnings per outstanding share.
• Banks also face potential challenges as the era of super profits, driven by current central bank forex and monetary policies, gives way to a reliance on income from riskier lending activities.

Investors also have one eye on risk-free government securities which attract interest rates as high as 20% compared to the stocks which are riskier despite being cheap.

• Global fund lauds Nigeria’s anti-money laundering initiatives

The International Monetary Fund (IMF) has explained why the Central Bank of Nigeria (CBN) should issue operating licences or register cryptocurrency dealers.

In its 2024 Staff Report released at the weekend, the IMF recommends that global crypto trading platforms be registered or licensed in Nigeria, like similar operators, the Bureaux De Change (BDCs), which are licensed by the CBN to carry out forex transactions at the retail end of the market.

The IMF advised that such crypto trading platforms should be subjected to the same regulatory requirements applicable to financial intermediaries, following the principle of same activity, same risk, and same regulation.

The CBN had announced that cryptocurrency traders used peer-to-peer trading to manipulate the naira exchange rate against the dollar and other global currencies. 

The apex bank asserted in February that Binance, the largest cryptocurrency exchange by trading volume, had processed $26 billion in untraceable transactions in its Nigeria unit alone. 

Binance serves 185 million users in over 180 countries worldwide. 

To protect the naira from value erosion and reverse the negative impact in the financial system, the CBN subsequently stopped banks and other financial institutions from banking cryptocurrency traders.

Aside several other factors causing naira’s slide, like rising import bills, medical tourism, and tuition fees payment abroad, exchange rate manipulation by cryptocurrency traders remains a major contributory factor.

IMF said: “Rapid growth of transactions on FX trading platforms poses new challenges. At the end of February, the authorities closed the operations of Binance and other crypto-asset trading platforms that were being used by Nigerians to facilitate capital flight – neither the identity of traders nor the origin of their funds could be traced.”

“The authorities also revoked the licences of 4,173 Bureaux De Change (BDCs) that failed to comply with CBN accounting and reporting requirements. Staff recommends that global crypto trading platforms be registered or licensed in Nigeria and subjected to the same regulatory requirements applicable to financial intermediaries following the principle of same activity, same risk, and same regulation.”

The IMF lauded Nigeria’s progress in the fight against money laundering and terrorism financing.

It said: “Nigeria has made welcomed progress on improving its Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) framework, but further action is needed in line with Financial Action Task Force (FATF) recommendations. Nigeria has undertaken a series of measures, including legislative reform, conducted a money laundering and terrorism financing risk assessment, built awareness for competent authorities and the private sector, and increased investigation and prosecution of money laundering to correct identified deficiencies in the AML/CFT framework.”

[TheNation]