Ahmad Lawan, a former president of the senate, says there will be mass protest if the three arms of government do not work together to reduce food prices and high electricity tariffs.
Lawan was contributing to a debate on a motion sponsored by Sunday Karimi, senator representing Kogi west.
Karimi’s motion was on the need to tackle “food insecurity”.
The former senate president said Nigerians must not be taken for granted in the face of worsening economic hardship.
“If we don’t take urgent actions on increased food prices and electricity tariffs, we will not like the actions we will see on the streets,” Lawan said.
“We cannot take the people for granted for too long.”
Earlier, the Kogi west senator said price of food staples have risen by over 300 percent, following the removal of subsidy on petrol.
“Insecurity in food-producing regions, bad roads, increase in the cost of transportation attributable to the removal of fuel subsidy and depreciation of the value of the naira, are possible factors that have contributed to the increase in prices of food items, household commodities,” he said.
“The greater percentage of the increase in prices of food items and consumables is not only due to these factors but to the zest of the merchants, traders, and retailers to make supernormal profits.”
The senate asked the relevant government ministries and agencies to tackle the problem.
The motion was adopted after it was put to a voice vote by Senate President Godswill Akpabio.
Reps query minister for allegedly spending N45m on new year party, N1.5 million for vehicle fuel
AFOLABI
The House of Representatives has queried the Minister of Women Affairs, Mrs Uju Kennedy-Ohaneye, for spending unrelated expenditures, including N45 million for a new year party, N20 million for sanitary pads.
Others include N1.5 million for vehicle fuel.
Rep Kafilat Ogbara, Chairman, House Committee on Women Affairs, led the interrogation of the Minister, over the non-payment of N1.5 billion to contractors in spite of the fund release in Abuja.
She said that the investigative hearing was aimed at uncovering the truth and not witch-hunting the Minister and the officials of the ministry.
The committee also investigated alleged diversion of funds meant for contractor’s payments, following a petition from contractors.
The committee also sought clarification on funds appropriated for the African First Lady’s mission and the whereabouts of the N1.5 billion meant for contractor payments.
The minister however denied the allegations of misappropriation, overspending, and non-payment to contractors.
The procurement officer confirmed contractors’ claims, and the Director of Finance and Administration acknowledged only paying approved contracts.
It would be recalled that the committee had at its last sitting summoned the minister to appear before it to explain the rationale behind the non-payment.
The committee also ordered the stoppage of all 2024 contract processes by the Ministry of Women’s Affairs until the whereabouts of the money for the said contracts are determined. (NAN)
Media
VIDEO: Women affairs minister and reps engage in a heated debate over alleged corruption pic.twitter.com/Y8bfnvzqvJ
— TheCable (@thecableng) July 10, 2024
Reality TV star Nina Ivy has announced she is undergoing breast reduction surgery.
In a post on Instagram, she shared excitement and relief, stating that she has been waiting for this moment her entire life.
After having two children, Nina Ivy said she has struggled with feelings of insecurity and discomfort related to her breast size.
She said she was looking forward to regaining her confidence and feeling more at ease in her own body.
“I’ve been waiting for this day my entire life, and finally, the time is here. After 2 kids, I’ve never really felt comfortable and confident about my breasts, and I am super excited to make a change. Finally, a new life,” she wrote..
It is a tale of woes as an acute scarcity of one of Nigerians’ most popular staple foods, bread, has hit Kaduna, Katsina and Kano States.
Checks by the Correspondents of the News Agency of Nigeria (NAN) revealed that the most-favoured staple was now as scarce as petrol or the highly-prized precious metal, Gold.
It was observed that whereas the commodity was very hard to come by, its prices have hit the roof.
Many of the residents could no longer afford their darling food, as such had turned to other not-too-cheap alternatives like noodles, millet porridge and bean cake, as well as bread and beans, among others.
The prices of the commodity have also been increased by between 20 to 40 per cent.
Many shop owners and consumers have vehemently lamented the obnoxious development, appealing for an urgent action to redress the ugly trend.
One of the bakers told NAN in Kaduna, “”It is not that we are on strike, but we have had to stop production since 1st July, 2024.
“This unfortunate development was necessitated by the scarcity of wheat flour and its high cost, as well as sugar, oil and other additives.
“For instance, in June, we were buying a 50kg bag of flour for between N53,000 to N55,000, but it has now regrettably skyrocketed to between N67,000 to N70,000.
“How can we produce bread and also break even under this precarious situation?, “he told NAN anonymously.
Some bread sellers and consumers in Kaduna State decried the scarcity of bread around the state metropolis, saying that it had affected their businesses and daily lives.
Haidar Basiru , a tea and bread seller, said he usually buys 100 loaves of bread but due to the ongoing paucity, he was able to get only 30 loaves, which had finished already.
” The bakeries are saying they are on strike due to a hike in flour and sugar.
“This development has seriously affected our businesses as we usually operate in the mornings and evenings.
” But, from the look of things, we may not come out in the evening due to bread shortage.
“In fact, most of my colleagues operating around this axis in Kasuwan barci have not opened today, “he said.
Similarly , Mrs Kafayat Sadiq, a provisions seller, stated that she couldn’t get bread to stock in her shop since Tuesday, saying that her supplier had complained of the high cost of flour.
Abdullahi Muhammad, a bread consumer said, “I went to the shop in the morning to buy bread, which would be eaten as breakfast in my house but unfortunately, I couldn’t get it.”
” I had to buy spaghetti for the children to eat and go to school since there is no bread;
”I hope the issue would be alleviated soon.”
A resident of Funtua, Funtua Local Government Area of Katsina State, Aliyu Idris, told NAN that the prices of bread have also gone up in the state.
He said, ”For instance, a loaf of bread that was selling for between N 200 before now goes for N 400. This has affected all the sizes of the bread.”
Idris also stated that tea sellers and shop owners were now finding it very hard to get the commodity for sale to their customers.
In Kano State, a resident of Kano also corroborated the unfortunate scenarios in Kaduna and Katsina States, saying,’ a loaf of bread formerly selling for N600 before now goes for N 800.”
”Also, a loaf of sliced bread that was selling for n 1200 before is now selling for N 1600,” Haruna Salisu told NAN.
(NAN)
The House of of Representatives was on Wednesday thrown into a mourning mood following the death of a member, Hon. Akinremi Olaide popularly known among members and his supporters as Jagaban.
Akinremi was said to have died in the early hours of Wednesday at 51 after complaining of a slight ailment.
He is the third member of the House to have died since the inauguration of the House on June 13, 2024.
Spokesman of the House, Hon. Akintubde Rotimi, confirmed the death of Hon. Olaide who represented Ibadan North Federal constituency of Oyo State.
A statement in Abuja, Rotimi said the APC lawmaker who served as Chairman of the House Committee on Science Research Institutions, passed away on Wednesday.morning after a brief illness.
According to him: “Until his demise, the Oyo legislator was a dedicated public servant known for his unwavering commitment to the development of his constituency and the country at large. His passion for service, coupled with his deep understanding of the needs and aspirations of his people, earned him the endearing title of ‘Jagaban.’
“Throughout his tenure, he was a staunch advocate for policies and initiatives that promoted social welfare, economic growth, and scientific research. His contributions to legislative debates and his active participation in committee activities were a testament to his dedication and hard work.
“Rep. Akinremi was as much a grassroots politician as he was an astute statesman who leveraged his goodwill and network of relationships to attract positive impact to the people of his constituency.
“He built friendships by being intentional about reaching out and sending goodwill messages to all colleagues at special occasions, fostering camaraderie and unity within the House.
“As a ranking member, Rep. Akinremi had keen institutional memory and was a mentor to many first-time parliamentarians, guiding them with wisdom gained from his extensive experience in legislative affairs.”
He said Speaker Abbas Tajudeen expressed his profound sadness over the loss.
He quoted the Speaker as saying that “Rep. Akinremi Olaide Adewale was a beacon of dedication and service. His contributions to our legislative work, especially in the area of science and research, were invaluable. His passing is a great loss to the House, his constituency, and the nation. We will miss his leadership, wisdom, and the unique passion he brought to his work.
“The entire House of Representatives mourns this significant loss and extends its heartfelt condolences to the Akinremi family, the Ibadan North Federal Constituency, the Government and People of Oyo State, and the entire APC family. Rep. Akinremi’s legacy will undoubtedly continue to inspire those who had the privilege of working with him and benefiting from his leadership.
“We pray that the Almighty grants his family and loved ones the strength to bear this irreparable loss. May his soul rest in perfect peace”.
Health workers in Kaduna State have suspended the five-day warning strike they began on Monday.
The News Agency of Nigeria recalls that the workers embarked on the strike to press home demands for the improvement of their welfare package.
This is contained in a communique signed by the State Secretary, National Association of Nigerian Nurses and Midwives (NANNM), Nassa Yashi, issued on Wednesday in Kaduna.
He said, ”The health workers engaged in a frantic and meaningful discussion with the government, which resulted into the signing of a Memorandum of Understanding (MOU).
”The suspension is to also give room for more negotiations and await the government to fulfill her own side of the MOU.
“The strike is hereby suspended and the workers are expected to resume their normal duties immediately.
” The state administrative council (SAC) sincerely appreciate your massive support and resoluteness in making this struggle for the betterment of our welfare a huge success.”
Yashi assured of their readiness to represent their members, adding, ”and to do that very well without fear or favor.
” Do not forget, it is suspension, meaning if the promises made are not fulfilled, we shall resume the industrial action at the appropriate time.”
(NAN)
Bashir El-Rufai, son of the former governor of Kaduna State, Nasir El-Rufai, has sent a cryptic message to President Bola Tinubu over his reelection in 2027.
Bashir specifically said that nobody is too big to be elected out of office by the people, warning that it will happen with no consequences.
He said that people should forget all the intimidations flying up and down, saying they should be patient.
In a post on his X handle on Wednesday, Bashir seemingly referred to Tinubu, when he said that even the IMF and the World Bank will not save the “people” when the time comes, adding quickly: “Political strategist una. That one na for Lagos.”
Recall that Tinubu was largely referred to as a master strategist during the 2023 presidential campaign.
DAILY POST recalls that the younger El-Rufai’s father has been enmeshed in alleged misappropriation of public funds while serving as a Kaduna State governor.
He said: “Nobody is too big to be elected out of office by the people. It will happen & wallahi nothing will happen. So forget all these intimidations flying up and down. Let us be patient.
“Even IMF & World Bank no go save una that time. Political strategist una. That one na for Lagos.”
Following up his earlier post, Bashir said he didn’t mention any name, doubling down on his stance that nobody will force him to support utter failure of governance disguised as useless, dangerous ethnocentric political strategy.
“I didn’t call names o, but due to their guilt, they already know who is being spoken about. Wallahi, none of you will force anyone to support this utter failure of governance disguised as useless, dangerous ethnocentric political strategy.”
Nigerian disc jockey Florence Otedola, popularly known as DJ Cuppy, has sparked mixed reactions after revealing her intention to pursue a fourth degree at the age of 31.
DJ Cuppy recently shared her plans to further her education, despite already holding multiple degrees.
Her announcement stirred diverse responses from the public, with some questioning the need for additional academic qualifications when she already possesses significant educational achievements.
In a recent post on Twitter (now X), DJ Cuppy acknowledged the reactions she received, humorously stating that people are urging her not to pursue another degree.
She wrote;
“People are really begging me not to go back to school for a 4th degree [laughing emoji]. LMAO.”
The famous DJ’s educational journey includes a degree in Business and Economics from King’s College, London, which she completed in July 2014.
Following this, she obtained a master’s degree in music business from New York University in 2015.
Most notably, DJ Cuppy graduated from Oxford University in 2023 with an MSc in African Studies.
Netizens Reactions…
@badlieutanant said: ” DJ Cuppy, earning degrees and master’s degrees shouldn’t be your priority at this point. You’re already 30+, you should focus on getting married and starting a family. Time is not on your side.
@Official_Ogiis said: “I’d definitely go back for a 4th if I have the money, opportunity and luxury for it. Create more opportunities for myself. So please go for a fourth or even a fifth, you never know when it’ll be needed and in all I wish you luck my dear ❣️
@stritmotivation said: “Shey u no wan marry, yoruba men plenty outside ohf Lagos ?”
@Tee_Classiquem1 said: “Don’t mind them, pls chase your dream.”
@Dr_Pharouk said: “Don’t listen to them, you need it for your future Rita Sunshine
@MeetSunshineMay said: “I think it’s boredom pushing you into these areas of study cos what’s the use? Your DJ career has been left hanging, man you don’t have, I honestly need to step in from here.
@EbiraConnect said: “Those people maybe just want you to get married first and then, you can pursue your 4th degree. After all, you can combine both marriage and education together since there is money. But at the end , do what makes you happy. “
See below;
Media
People are really begging me not to go back to school for a 4th degree ?? LMAO
— Cuppy (@cuppymusic) July 9, 2024
Afrobeat artist Seun Kuti has accused the late MKO Abiola and his wife, Simbiat, of framing his father, Fela Kuti, for armed robbery during Muhammadu Buhari’s military regime.
According to Seun Kuti, the alleged conspiracy was part of a plan to have Fela executed under the regime’s harsh laws against armed robbery.
Seun Kuti detailed how the Abiolas fabricated a story, claiming that Fela and his associates had stolen Simbiat’s Ferrari at gunpoint.
This accusation came at a time when Buhari’s Deputy Head of State, Tunde Idiagbon, was enforcing strict laws that made armed robbery a capital offense, punishable by death.
In his words;
“Abiola and his wife, Simbiat, lied against Fela that he and his boys robbed her of her Ferrari at gunpoint under Idiagbon’s regime. This was Abiola and his wife’s plan to kill my dad because, under Idiagbon, armed robbery was punishable by death.
“Abiola and Simbiat wrote a statement at a police station that they saw Fela and his gang rob her at gunpoint. This led to Fela’s arrest which is punishable by death, but luckily for Fela, he was performing in Cameroon the very day Simbiat was lying about the theft. Fela escaped the case because he can’t be in two places at the same time; its either he’s on a stage in Cameroon or robbing in Lagos.
“Responding, Fela and my elder brother, Femi, took 12 buckets of faeces go and listen to his song – give me shit, I give you shit – then you will have a better understanding. They took it to Abiola’s house in the middle of the night and smeared his compound.
“The next day, the police visited my father’s house saying they came to investigate the shit-show in Abiola’s house the previous day. But Fela denied the act saying if given the opportunity, he would smear Abiola’s house with faeces.”
Former Chairman of the Independent National Electoral Commission (INEC), Professor Attahiru Jega, has secured a plum job in president Bola Tinubu government.
Tinubu appointed Jega as co-chairman of the Presidential Committee on Implementation of Livestock Reforms.
The committee was inaugurated at the presidential villa in Abuja on Tuesday shortly after the creation of the livestock ministry.
In his new position, Jega will oversee the surmounting of the challenges and barriers that plague agricultural productivity and creating new opportunities for farmers, herders, processors, and distributors within the livestock-farming value chain.
The President emphasized that the successful implementation of these reforms would require the collective efforts of committee members from both the public and private sectors, state governors, and all Nigerians.
“I appeal to everyone to remove any element of partisan politics from this. I will assume the chairmanship of the committee as President and appoint Professor Attahiru Jega as my deputy or co-chair,” Tinubu stated. “This is not about politics; this is about opportunity and our nation. While I may be absent, Jega will preside and continue to promote our objectives.”
During the inauguration at the Council Chamber of the State House, Tinubu expressed gratitude to the National Chairman of the All Progressives Congress (APC), Dr. Abdullahi Ganduje, for gathering experienced experts to ensure the harnessing of opportunities in the livestock sector.
“With the calibre of people here, this presents a unique opportunity to establish a central ministry called the Ministry of Livestock Development. It will enable our veterinary doctors to access research and cross-breeding opportunities and help us stop the wanton killings,” Tinubu added.
The President noted that the traditional methods of livestock farming need to be reviewed and repositioned with the support of stakeholders, including state governments, to open new opportunities for growth and prosperity.
Tinubu said the Attorney-General of the Federation and Minister of Justice, Mr. Lateef Fagbemi (SAN), will remove legal impediments to the reforms, while the Minister of Communication, Innovation and Digital Economy, Dr. Bosun Tijani, will support automation efforts.
“Modern technology is available to us. We are ready to work. With all of you, the solution is here, and we must run with it. Any law that might inhibit our objectives, the Attorney-General will prioritize its removal. The Minister of Budget and Economic Planning will create a budget for growth, and the Minister of Finance will work out the funding,” Tinubu stated.
The President called for comprehensive and collective reforms, urging the support of all stakeholders.
“We need to provide incentives to enable Nigeria to take advantage of livestock farming. Dairy products and cold-chain logistics collectively offer substantial commercial and economic advantages. Despite the adversities we have faced over the years, I believe prosperity is within our reach,” Tinubu concluded.
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Foreign affairs ministry’s officials write Tinubu, list ‘offences’ of perm sec accused of sexual harassment
AFOLABI
Some officers of the federal ministry of foreign affairs have accused Ibrahim Lamuwa, permanent secretary in the ministry, of “multiple cases of sexual harassment and other infractions”.
In June, Simisola Fajemirokun Ajayi, a married female aide of Yusuf Tuggar, minister of foreign affairs, accused Lamuwa of sexual harassment.
Lamuwa has since denied the allegation, claiming that he turned down Ajayi’s request to pay her bills during an overseas trip.
However, in a letter dated July 3 and addressed to President Bola Tinubu, the employees, under the aegis of “concerned and patriotic foreign service officers,” claimed that the accusation against Lamuwa by Ajayi was not the first of its kind.
They added that sexual harassment allegations against the permanent secretary have become “a recurring feature in his entire public service career,” including harassment of children.
“His unbridled sexual assaults and harassment on minors and women is legendary,” the letter reads.
“Cases include harassment of neighbours’ children, as a young officer, while occupying government property at the foreign affairs quarters in Gwarimpa, Abuja; the inglorious removal from his post in Canada to avoid an impending declaration of persona non-grata (PNG), and sexual assault cases involving a large number of locally-recruited staff in our mission in Dakar, Senegal.
“In Senegal, while serving as ambassador and principal representative of Mr President, ambassador Lamuwa threatened a female bank official, saddled with the management of the embassy’s account, that he would ensure the movement of the mission’s account to another financial institution in the event that she does not agree to engage in sexual activities with him.
“It took the voice recording of the incident before Ambassador Lamuwa could withdraw from his inherent evil intentions.
“More recently at the ministry’s headquarters, a married female policy officer tasked with the implementation of presidential reforms could not resist the intense pressure, and she succumbed to Ambassador Lamuwa’s threat and was duly rewarded for her compliance in the yet-to-be-released 2024 posting exercise without due diligence.
“All these incidents could have been avoided if a system of checks and balances was in place in the administration of the ministry, with the appointment of under-secretaries.”
Aside from the issue of sexual harassment, the group also accused the permanent secretary of sabotaging the ministry.
“In the last 24 months, all Nigerian missions abroad have received 20 percent of their budgeted allocation,” the ministry’s officers said.
“The affected missions wrote to Amb. Lamuwa, more than 21 months ago, to appeal for the budget shortfall, a result of the government’s policy on the unification of the exchange rate, to be brought to the attention of Mr President, but Ambassador Lamuwa rather devised a plan to suffocate missions and utilize the untoward situation for his personal gains.
“With the assistance of the director of finance and account (DFA), Amb. Lamuwa suppressed all missions’ desperate appeal and began to peddle a misrepresentation to the honourable minister of foreign affairs and other high-level government officials that missions are financially buoyant and the only reason they were writing was that officers at posts, who are diligently serving the country, wanted an excuse not to return. Even with several inquiries from the state house, Amb. Lamuwa remained obstinate in his covetous plot.
“The far-reaching implication is that the jaundiced posting, as he had orchestrated and implemented, will give him unimpeded control over all the missions more than Mr President and the honourable minister of foreign affairs.”
They said embassies and offices in Asia—Rome, Geneva, Brussels, Tehran, and Bern—are drawing in debt and unable to pay rent and salaries.
They accused Lamuwa of demonstrating impunity by claiming to be well-connected to principals at the State House, particularly the office of the vice-president.
“Ambassador Lamuwa is not an example of what the civil service should promote or be proud of, as he has indeed shown great disrespect and disregard for the service and government processes,” the group added.
“Such individuals are a potent threat to society and should be confined to the walls of rehabilitation or correction facilities.”
The concerned ministry of foreign affairs officers asked President Tinubu to “direct a wider investigation of the issues stated in the letter to ascertain the facts and for necessary actions”.
Lionel Messi was on target for Argentina in the 2-0 win over Canada to guide them into the final of the 2024 Copa America.
The defending champions produced arguably their best performance of the competition with a dominant showing to qualify for a second consecutive final.
Manchester City forward, Julian Alvarez put Argentina in the lead in the 22nd minute with a low key finish following good work from Rodrigo Paul.
The trio of Angel Di Maria, Rodrigo Paul and Lionel Messi combined to devastating effect to rip Canada open at every opportunity but they were unable to add to their lead going into the break.
Six minutes into the second half, Lionel Messi scored his first goal of the competition with a close range finish to make it 2-0 for Argentina.
Canada failed to test Argentina goalkeeper, Emi Martinez until the last minute when Tani Oluwaseyi’s effort was parried away from safety.
Lionel Messi was named the player of the match following another influential performance and he is on course to win a third consecutive trophy for Argentina after the Copa America in 2021, FIFA World Cup in 2022.
He has now become the only player to lead his country to eight major finals in the history of football after guiding them to five Copa America finals, two World Cup finals and Olympic football finals.
The 37-year-old revealed that he is enjoying his “last battles” as he closes in on rounding up an illustrious career.
Messi said, “I’m living it like I lived it in the last Copa America, in the last World Cup….these are the last battles and I’m enjoying them to the maximum.”
He also praised his teammates for the way they have recovered from past disappointments to become successful.
He said, “The truth is that it’s crazy what this group has done, what the Argentina national team has been doing, because after all this it gives value to all (the tournaments) I and the old generation have played in,
“It’s not easy for us to be in a final again, for us to compete again to be champions,”
Lionel Messi and his teammates will take on the winner between Uruguay and Colombia in the final on Sunday.
Police Decline To Reveal Identities Of Alleged Nollywood Actor, Other Suspected Kidnappers Killed In Lagos
AFOLABI
The Lagos State Police Command has resolved to conceal the identities of nine suspected kidnappers who invaded the state on July 4.
Seven of the alleged kidnappers were killed in an intelligence-driven ambush. However, the reason for this decision by the police is unknown.
The quest to unravel their identities followed controversies surrounding the involvement of a Nollywood ‘actor/producer’, Henry Odenigbo, alleged to have been killed during the ambush.
According to the police, seven alleged kidnappers that invaded the state were killed, and two escaped with bullet injuries. The syndicate were said to have targeted residents or business persons in the Ladipo area of the state before the ambush.
The area is a host to the popular Ladipo market ranked as the largest auto spare part market in the country, and is likely to house successful business traders, dealers or residents.
The said Nollywood ‘actor/producer’ is alleged to have been among the syndicate, thus questioning the authenticity of the controversy as well as the personalities and the source of wealth of some Nollywood actors.
The Lagos Police Command when contacted by THE WHISTLER on Tuesday, declined to give out the identities of the slain suspected kidnappers.
Its spokesperson, Ben Hundeyin also declined any future plan to make public, the profile of the slain kidnappers. “I am not speaking about it… I decline to address any allegations,” he said, reacting to all questions asked by our correspondent.
Interestingly, the ambush of this syndicate occurred after eight months of surveillance.
A statement shared via Hundeyin’s X handle, concerning the matter, partly read, “It is worthy of note that the command had been on the trail of this gang for the past eight months for their numerous kidnapping of wealthy individuals in Ikolo, Okota, Ejigbo and Ladipo of the state.”
The non-disclosure of the suspects’ identities by the police, is likely to incite sustained disinformation and defame the individual in question if not addressedz
Videos and pictures circulating on X showed the slain suspects, in a relatively identifiable state, sandwiched in a Hilux trunk.
Those who claimed to have identified the said ‘actor’ through a particular picture allegedly showing him in his blood, further raised concerns among many Nigerians.
THE WHISTLER contacted the president of the Actors Guild of Nigeria (AGN), Emeka Ejezie on the matter. He said he had only gotten wind of the circulated information on Tuesday evening and had plans to investigate the situation.
In addition, Ejezie said, “I am going to the national secretariat to check whether we have such people as members of the guild.”
Checks on the Instagram page of the said actor showed that he operates a movie production company called Ason-Rich, and is a member of the Association of Movie Practitioners (AMPRAC).
His sparse following Instagram page features movie content shared either daily or in close succession since he actively commenced movie-related content in December 2022.
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While his last post on Instagram was shared on June 28, the same content was also shared via his Facebook page on June 29.
At the time of this report, some Nigerians had taken to his comment session to hurl painful statements, pointing out his connection to the reported kidnapping incident.
At the close of trading on June 9, 2024, Access Holdings’ share price stood at N19.35, which is 2% lower than the N19.75 price set for the bank’s ongoing rights issue.
On July 8, the opening day of the rights issue, the share price opened at N19.20, then appreciated by 2% to close at N19.60. However, today, July 9, Access Bank declined by N0.25 to close at N19.35.
The fluctuations in Access Holdings’ share price raised significant concerns among shareholders, who voiced their apprehensions during the group’s “Facts Behind the Issue” presentation at the Nigerian Exchange (NGX).
Why it is an anomaly: Typically, in share offering programs, whether through a rights issue or a public offering, the offer price is set at a discount to the market price to attract investors.
In a rights issue, the discount on the issued shares is generally more substantial than in a public offering. For instance, Fidelity Bank priced its rights issue shares at N9.25, while its public offering shares were priced at N9.75.
Companies typically offer a larger discount on rights issues because they are exclusively available to existing shareholders, making the discount an additional incentive for these shareholders.
Reasons for the price disparity
In Access Holdings’ case, the Chairman of the Group, Aigboje Aig-Imoukhuede, tried to explain the reason behind the departure from the norm, putting forward the strong earnings profile of the bank.
Aig-Imoukhuede noted, “There are certain things I look at when investing in a business or considering an investment. When evaluating a business, if the business’s annual earnings run rate matches the amount I invested, I consider it a strong indicator.”
“For example, analyzing Access Bank’s earnings profile, even without accounting for currency devaluation profits, shows significant earnings potential. If devaluation occurs, the earnings forecast could double or triple.”
“Currently, the analysis shows a potential earnings value of about 17 naira per share, with a trading price of around 19.75 naira per share. This is not a bank that needs further reinvestment to make that money, meaning it won’t seek additional capital that could dilute its earnings.”
He then noted that the recent rights issue was essential to reward long-term investors who have supported the bank through difficult times, as the bank is poised to generate significant profits in the future.
Recall that in FY 2023, Access Holdings Plc hit earnings per share of about N17.23, based on its net income of N619.3 billion. The group’s earnings per share represent a 288% increase from the N4.44 earnings per share posted in 2022.
Using the offer price of N19.75, the price-to-earnings (P/E) ratio of 1.15 for the issued share is notably lower compared to its industry peers.
For instance, FBNH shares have a P/E ratio of 2.62, GTCO shares are at 2.36, UBA shares stand at 1.32, and Zenith Bank shares are at 1.74.
This disparity suggests that Access Bank shares trading in the market with a 1.12 P/E ratio may be significantly undervalued.
[Nairametrics]