+Import Duty: Nine Steps High
Access Bank: A Loss and Life After
Access Corporation, one of Nigeria’s largest banks, experienced a significant loss last Friday. This was the unexpected passing of its co-founder and CEO, Herbert Wigwe. Along with his wife and son, Wigwe died in a California helicopter crash on February 9th, 2024.
The crash also claimed the life of Abimbola Ogunbanjo, the former group chairman of Nigerian Exchange Group Plc., who was with the Wigwes in the ill-fated aircraft.
After this tragic event, the company’s share price fell by 6.3% from N24.75 on Friday, February 9, to N23.20 on Monday, February 12.
Thankfully, the bank’s market performance began recovery as soon as the announcement of the new Acting CEO, Ms Bolaji Agbede that same day.
By Tuesday, Access’s share price rose by 0.43% increasing to N23.30. The next day, Wednesday, the share price rose further by 1.55% to N23.60.
The public’s reaction has been a mixture of sorrow and worry. In addition to being a well-liked CEO, Herbert Wigwe was credited with spearheading Access Corporation’s strategic efforts.
From November 14, 2023, to February 13, 2024, Access Corporation ranked as the fourth most traded stock on the Nigerian stock exchange. The company exchanged 1.97 billion shares in 32,403 trades, valued at NGN 47.5 billion, averaging 31.2 million shares traded daily.
Notably, the volume reached a high of 117 million on January 10th and a low of 6.07 million on February 13th.
Life After: Lessons from Apple Inc.
The passing of Steve Jobs, an innovative leader who played a crucial role in Apple’s success, raised concerns about the company’s future direction.
Following his death, Apple’s stock experienced a brief drop before rebounding under the leadership of Tim Cook, who was appointed CEO.
Apple’s recovery offers valuable lessons for leadership transitions, emphasising the importance of effective succession planning, continuity of vision, strong organisational culture, transparent communication, adaptability to markets, customer loyalty, focus on long-term value, innovation, resilient stock performance, and global brand strength.
As demonstrated by Apple Inc., a CEO’s exit can have a significant impact on a company’s stock price, and investors may respond cautiously if they are uncertain about the leadership vaccum or the company’s strategic direction.
Moving on from the tragic loss, “Access Corporations named executive director Bolaji Agbede as the company’s temporary CEO two days after Herbert Wigwe passed away.
The restoration of investor trust is contingent upon the new CEO’s capacity to sustain or improve operational performance.
Transparency and good communication are very important and have a beneficial impact on market perception, while prompt and well-received succession planning can minimise negative repercussions.
In the wake of this tragic loss, Access Corporation, its investors, and the Nigerian stock market face a challenging period of loss and adjustment.
The coming days will show how well the company navigates this unfortunate turn of events and its resilience in the face of adversity.
Bitcoin Bounces Back
The price of Bitcoin has increased to $48,189 as of 12 February 2024, the highest since it experienced a dip in April 2022.
Bitcoin’s resilience is mirrored by the global adoption of cryptocurrencies. Nigeria ranks fourth in cryptocurrency ownership globally and boasts over 22 million users, constituting 9.5% of the country’s population.
In 2023, the nation engaged in bitcoin transactions, sending $151.12 million and receiving $109.05 million, with a 5.23% ownership stake.
The market’s strength defied expert predictions of Bitcoin prices ranging from $10,000 to $28,000 in 2022 and beyond.
Bitcoin’s actual performance in 2024 has surpassed these forecasts. As the digital currency landscape evolves, investors and enthusiasts are left to speculate on Bitcoin’s future and its impact on the broader cryptocurrency ecosystem.
Nigerian Stocks: Profit after Loss
In stark contrast to the unprofitable 2023, January 2024 witnessed a remarkable turnaround in the Nigerian stock market, surpassing previous trade records.
Despite being the fourth least profitable exchange globally in 2023, with a 41% loss, the market experienced a substantial upswing in January 2024.