NSE releases statement on Lagos State Government’s N4.85bn Municipality Note

The Nigerian Stock Exchange (NSE) has responded to publications with respect to the Lagos State Government’s N4.85 Billion, 15.75% Series 1, Tranche B, Environmental Note (Municipality Note) and the alleged default in repayment of the coupon and principal on the Municipal Note due on Tuesday March 5, 2019.

The Exchange recognizes that the publications if not addressed has the likelihood of dampening investors’ confidence in the Nigerian capital market.

“Information garnered by The Exchange in the wake of the media publications reflects that the Municipality Note was issued under a N50billion Medium Term Note Programme by Municipality Waste Management Contractors Limited, a privately owned company promoted by Visionscape Sanitations Solutions Limited”, the NSE said.

“We wish to inform the investing public and our stakeholders that the Municipality Note was not listed on The Nigerian Stock Exchange. As part of its regulatory oversight to safeguard investors in the Nigerian capital market, “The Exchange takes steps to satisfy itself that the financial and other advisers have done due diligence on all financial instruments listed on The Exchange in order to ensure that the obligations attached to those instruments are met as and when due”, it noted.

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The NSE further stated, that “As part of the requirements for the issuance and the listing of similar debt instruments, The Exchange requires that a Guarantee on the revenue of the State Government is issued, in addition to an approval of the State House of Assembly to back the Notes.”

“The established requirements are necessary to ensure that the risk of default on such instruments when listed on The Exchange is reduced to the barest minimum. Please be assured of The Exchange’s commitment to maintaining a fair, efficient and transparent market that guarantees the protection of investors’ rights,” the Exchange stated.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.