My Blog

Category: Business

  • NGX market cap gains N1.8trn in July

    Transactions at Nigerian Exchange Limited (NGX) closed the month of July 2023 on a positive note as earnings and dividend declarations from quoted companies helped NGX’s market cap to gain N1.814 trillion.


    The gain was also supported by insider dealings among companies as directors and related parties consolidated their positions in a show by such investors of their belief in the inherent values of such companies, as well as sustained positive reactions to the ongoing reforms by President Bola Tinubu.


    Despite the profit taking, selloffs and FX pressures witnessed within the period, the benchmark NGX All-Share index which opened the trading month at 60,968.27 points, closed at 64,337.52 points, representing a 5.53 per cent growth while year-to-date (YTD) close at 25 per cent in the month under review. 

    Also, market capitalization- listed value of equities rose by N1.814 trillion from N33.197 trillion to N35.011 trillion.


    There were also better-than-expected corporate earnings, higher dividend payouts and relatively improved liquidity as fixed income yields were not stable in the face of soaring inflation which supported buying interests in the market and flow of funds into the equity space.


    It will be recalled that a total turnover of 2.854 billion shares worth N37.645 billion in 41,547 deals was traded by investors on the floor of the Exchange last week Friday. The high traded volume and mixed sentiment experienced during the month reflected the buying interests by majority shareholders and activities of institutional investors as they sought to hedge against inflation on a mixed outlook for fixed income rates and yields.


    This followed the fact that the second quarter (Q2) performance of some quoted companies beat the inflation rate, raising hopes of better earnings that will support price and payout at the end of the financial year.


    Given the outcome of the Monetary Policy Committee meeting in the month under review, the prevailing mixed economic data and as well more corporate earnings now looking up, analysts believe that positive earnings surprises and possible interim dividend declarations from companies would spur increased bargain-hunting activities on the bourse.


    They also added that profit-taking activities on stocks that have experienced substantial appreciation might be possible.

    Analysts at Cordros Research said, “In the medium term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed-income market”.

  • SEC, FMMSD seek to raise capital for non-oil sector

    SEC, FMMSD seek to raise capital for non-oil sector

    The Securities and Exchange Commission (SEC) and the Capital Market Community are to partner with the Federal Ministry of Mines and Steel Development and other stakeholders to promote the use of alternative means of raising capital such as Non-Interest products, tokenization of assets, as well as adopting technologies such as FinTech.

    This among others was contained in a communiqué issued at the end of a two-day workshop on financing the Nigerian solid minerals sector through the capital market and the critical role of the commodities exchanges.

    The workshop also emphasised the need for the FMMSD and Federal Ministry of Education to re-prioritize the focus on STEM education at basic, secondary and tertiary institutions. 

    According to the communiqué, “There is a need for the Capital Market Community to ensure that the market infrastructure that supports the bringing to market of mining ventures is in place, while also protecting investors. 

    “All stakeholders should be involved in promoting sustainable practices and ESG standards within the mining industry while the FMMSD is to ensure the availability of geoscience data, given that it is essential alongside relevant market data in enabling intermediaries and commodities exchanges to structure products for the mining industry. 

    The participants also agreed that the FMMSD should collaborate with SEC and other stakeholders to develop capacity in the industry and address the issue of interference in mining activities by the State Government, which is identified as a major challenge faced by mining companies, the FMMSD is to take concrete steps to resolve the conflict in State and Federal laws as well as overlapping oversight.

    Earlier in a keynote address, the Executive Commissioner Operations of the SEC, Mr. Dayo Obisan said the solid minerals sector possesses immense transformative potential for sustainable economic growth in Nigeria and holds immense potential to contribute significantly to national economic diversification and sustainable development goals. 

    “With over 44 minerals discovered across the Federation, the mining industry can play a vital role in diversifying our economy away from crude oil dependency. The FMMSD has embarked on various initiatives to increase the sector’s contribution to Nigeria’s GDP from 0.5% to approximately 3% by 2025.

    To address the financing challenges faced by the mining industry, the SEC Commissioner said stakeholders must recognize the crucial role of the capital market in providing much-needed funding for large-scale mining projects as the capital market offers a wide array of financial instruments and products, attracting long-term investments and diversified sources of funding. 

    He said by tapping into this market, mining companies can strengthen their financial position and promote transparency, accountability, and good corporate governance practices to attract both domestic and foreign investors, stimulating investment inflows and fostering growth in the sector.

    He stated that to address these challenges, some practical solutions may include, but not limited to; attracting strategic investors who have established mining operations can bring expertise, technology, resources, and access to international markets. Such partnerships can be in the form of equity capital or debt financing, allowing miners to benefit from immediate cash injections and technology support.

  • Subsidy: Rice millers commend Tinubu’s plans for farmers

    The Abakaliki Rice Millers Association in Ebonyi has hailed the Federal Government’s plans to boost farm produce in an effort to cushion the effect of the removal of fuel subsidy.

    President Bola Tinubu, on Monday in a nationwide broadcast, assured Nigerians of adequate food sufficiency and security.

    According to Tinubu, the government will ensure staple foods are available and affordable.

    “To this end, I have ordered the release of 200,000 metric tonnes of grains from strategic reserves to households across the 36 states and FCT to moderate prices.

    “We are also providing 225,000 metric tonnes of fertiliser, seedlings and other inputs to farmers who are committed to our food security agenda,” Tinubu added.

    Reacting to the development on Tuesday, Mr Linus Nkwuda, Chairman of the millers association said that President Tinubu’s plans to boost agriculture was a welcome development.

    Nkwuda, however, decried the way inputs and seedlings meant for farmers had been diverted in the past.

    He appealed to the federal government to distribute such items directly to the farmers.

    “The items; fertilizer and seedlings as listed by the President during the broadcast, are very important to all farmers. We are happy.

    “We need those items to succeed. Loans are also important. We commend the President and urge him not to involve political farmers during implementation,” he said.

    Mr Kenneth Chigozie, Secretary of Rice Farmers Association of Nigeria (RIFAN), Abakaliki branch, also urged the president to work directly with the farmers at the hinterland in the efforts to ensure food security.

    Chigozie noted that working directly  with farmers would ensure transparency in the distribution of farm inputs meant for its members.

    Chigozie, however, expressed worry about how the farmers had suffered since the removal of fuel subsidy, adding that members were faced with challenges associated with the high cost of production.

    He described the cost of inputs, such as seedlings, herbicides, pesticides and fertiliser as well as hiring of labourers, as worrisome.

    “We are happy, President Tinubu is remembering us, the farmers. His promises to us during the nationwide broadcast are a welcome development.

    “Our prayer is that, let those items and monies attached come to us directly,” Chigozie added. 

  • Nigeria’s equity market sheds N391bn

    The nation’s equity market on Monday opened the week on a negative note, shedding N391 billion following profit taking activities recorded by small, medium and large stocks.

    The market capitalisation of listed equities fell by 1.10 per cent to N35.011 trillion from N35.402 trillion reported the previous day.

    The NGX All Share Index also depreciated by 718.87 basis points to 64337.52 points from 65056.37 points reported the previous day.

    An analysis of the investment showed that Betaglass Nigeria Plc, Linkage Assurance, SUNU Assurance and Mansard insurance led gainers table, appreciating by 10 per cent each to close at N38.50 per share, N0.77, N0.66 and N3.74 per share. Berger Paint followed with a gain of 9.95 per cent to close at N11.05 per unit.

    On the contrary, five companies declined by 10 per cent at the close of transactions on Monday.

    Dangote Sugar Refinery, Sovereign Trust Insurance, Ecobank Transnational Incorporate gained 10 per cent to close at N27.00, N0.63 per share, N15.30 per share respectively. Livestock and NPF MicroFinance Bank fell by 10 per cent also to close respectively to N1.89 and N1.80 per share.

    Volume of trades increased 213.65 million, representing 46.47 per cent as investors traded 673.42 million shares valued at N6.47 billion in 9788 deals against 459.770 million shares worth N5.345 billion exchanged hands in 8051 deals.

    Trading activities in shares of Abbey Building Society led activity with 112.259 million shares valued at N112.274 billion in 94 deals, Fidelity Bank followed with 58.588 million shares cost N503.707 million in 452 deals, Union Bank of Nigeria Plc traded 51.079 million shares worth N357.551 million in 30 deals, FCMB group exchanged 49.363 million shares cost N323.678 million in 294 deals while Universal insurance traded 47.506 million share cost N11.232 million.

  • Subsidy Removal: Tinubu to release N200bn to rice, cassava farmers

    Subsidy Removal: Tinubu to release N200bn to rice, cassava farmers

    *To make grains, fertilizers available

    President Bola Ahmed Tinubu has disclosed that in a bid to cushion the biting effect of fuel subsidy removal, the federal government will be releasing the sum of N200 billion will be released to farmers to cultivate rice, maize, cassava, and wheat.

    President Bola Tinubu, who made the announcement in a national broadcast Monday added that the amount would be taken from the initial N500 billion approved by the National Assembly for the cultivation of 500,000 hectares of land across the country.

    According to the President in the broadcast monitored by Nigerian Anchor, the economy will overcome the present turbulence occasioned by the petrol subsidy removal. He further said that there will be an immediate release of grains and fertilizers to ease price increase that is hitting the pockets of Nigerians.

    “Our economy is going through a tough patch and you are being hurt by it. The cost of fuel has gone up. Food and other prices have followed it. Households and businesses struggle. Things seem anxious and uncertain.

    “I understand the hardship you face. I wish there were other ways. But there is not. If there were, I would have taken that route as I came here to help not hurt the people and nation that I love.

    To further ensure that prices of food items remain affordable, we have had a multi-stakeholder engagement with various farmers’ associations and operators within the agricultural value chain.

    “In the short and immediate terms, we will ensure staple foods are available and affordable. To this end, I have ordered the release of 200,000 Metric Tonnes of grains from strategic reserves to households across the 36 states and FCT to moderate prices.

    “We are also providing 225,000 metric tonnes of fertilizer, seedlings, and other inputs to farmers who are committed to our food security agenda.

    “Our plan to support the cultivation of 500,000 hectares of farmland and all-year-round farming practice remains on course. To be specific, N200 billion out of the N500 billion approved by the National Assembly will be disbursed as follows:

    “Our administration will invest N50 billion each to cultivate 150,000 hectares of rice and maize. N50 billion each will also be earmarked to cultivate 100,000 hectares of wheat and cassava,” the President assured.

  • FG distributes subsidized farm inputs to farmers in Kano

    The Federal Government on Monday kick-started the distribution of subsidized farm inputs to farmers in Bunkure Local Government Area of Kano State.

    The Permanent Secretary of the Federal Ministry of Agriculture and Rural Development, Dr. Ernest Afolabi, announced this during the inauguration of the distribution event in the ATASP-1 States, including Jigawa, Kebbi, Niger, and Sokoto.

    Dr. Ernest Afolabi, represented by Malam Tanimu Ibrahim, the Director of Planning and Policy Coordination, stated that the distribution marked the beginning of the 2023 delivery of subsidized inputs to approximately 60,000 farmers across the participating states.

    The program, which was initiated in March 2015, aims to enhance food and nutrition security, attract private-sector investments in agriculture, reduce post-harvest losses, and add value to local agricultural produce.

    Under the Commodity Value Chain Development component, the Federal Government, through the ministry, has been providing crucial production inputs to support farmers, emphasizing the importance of transparency, accountability, and efficiency in the input delivery process.

    To make the program more efficient, the government approved the introduction and use of an ICT platform for input delivery to farmers this year, highlighting the significance of this notable improvement.

    The Permanent Secretary reaffirmed the current administration’s commitment to boost agricultural production in the country, emphasizing the vital role of agriculture in achieving food security.

    Governor Abba Yusuf commended the initiative, represented by his deputy, Alhaji Aminu Gwarzo.

    He reiterated his administration’s dedication to providing farmers with affordable avenues to access soft loans from credible financial institutions, thus enhancing food security in the state.

    Alhaji Faruk Mudi, Chairman of the All Farmers Association of Nigeria (AFAN) in Kano State, assured that the farmers would utilize the inputs efficiently to produce diverse food crops, reflecting their commitment to agricultural growth and sustainability.

  • Zenith Bank wins Best Commercial Bank for consecutive 3rd time

    *Grabs Best Corporate Governance awards

    For a third year running, Zenith Bank Plc has been named the Best Commercial Bank in Nigeria at the World Finance Banking Awards 2023. 

    The bank also emerged as the Best Corporate Governance Bank, Nigeria, in the World Finance Corporate Governance Awards 2023, retaining the award for a second consecutive year.

    The awards were presented to Dr. Ebenezer Onyeagwu, the Group Managing Director/Chief Executive Officer of Zenith Bank Plc, at the London Stock Exchange recently.

    The recognitions celebrate the bank’s tremendous feats and milestones in financial performance, financial inclusion, corporate governance, and sustainability.

    Commenting on the awards, Dr Onyeagwu said: “These awards are a testament to our resilience and ability to adapt to the vagaries of the market as well as our innate capability to engender very stellar business performances through our innovative products and solutions. It also affirms our continued commitment to global best practices in corporate governance, sustainability and corporate social responsibility.”

    The MD dedicated the awards to the Founder and Group Chairman, Jim Ovia, thanking him for his mentorship and for establishing the basis for a resilient and highly successful institution. He also expressed gratitude to the board for their exceptional leadership, vision, and insight; to the staff for their unwavering commitment and dedication; and to the bank’s customers for making Zenith their preferred bank.

    World Finance is a foremost international magazine providing extensive coverage and analysis of the financial industry, international business, and the global economy. Its editorial combines award-winning journalism, covering a vast array of topics from banking and insurance to wealth management and infrastructure investment, with contributions from some of the world’s most esteemed economists and theorists and consultants from government think tanks and the World Economic Forum.

    Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards, with these latest honours coming on the heels of several recognitions, including being recognised as the Number One Bank in Nigeria by Tier-1 Capital, for the 14th consecutive year, in the 2023 Top 1000 World Banks Ranking published by The Banker Magazine; Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and 2022; Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards; Best in Corporate Governance’ Financial Services’ Africa, for four successive years from 2020 to 2023, by the Ethical Boardroom; Most Sustainable Bank, Nigeria in the International Banker 2023 Banking Awards; Best Commercial Bank, Nigeria and Best Innovation In Retail Banking, Nigeria in the International Banker 2022 Banking Awards.

  • Seplat grows 2023 H1 revenue by 3.8% to N278.3bn

    Seplat grows 2023 H1 revenue by 3.8% to N278.3bn

    *Gross profit hits N140.6bn

    A leading Nigerian independent energy company, Seplat Energy Plc, has recorded a rise in revenue by 3.8 percent to N278.3 billion from N219.2bn year-on-year in its unaudited results for the six months ended 30 June 2023.  

    Seplat, which is listed on both the Nigerian Exchange Limited and the London Stock Exchange, also grew its 2023 H1 gross profit to N140.6bn from N114.1bn year-on-year.

    The Company, in its announcement, described the operating performance for the period as solid, given a 2 per cent increase in production, helped by reduced losses on its Western Asset, which is benefitting from the availability of the Amukpe-Escravos Pipeline and increased output from OML40.

    The company extended the Share Sale and Purchase Agreement (SSPA) for the acquisition of ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited (MPNU) to preserve the transaction, pending the resolution of certain legal proceedings and receipt of applicable regulatory approvals; and will continue to work with all parties to achieve a successful outcome.

    The full-year production guidance was retained at 45-55 kboepd whilst Capex guidance ranges at $160 – $190 million (previously $160 m) to support the Group’s objectives for the year.

    Following the Company’s previously announced Board succession plan (25 April 2023), it announced that Eleanor Adaralegbe, currently Vice-President Finance, has been appointed CFO-designate and will succeed Emeka Onwuka as CFO in 2024.

    Commenting on the impressive results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy said:

    “Seplat Energy’s continuing strong performance puts us on track for an excellent year that will support the increased quarterly dividends we announced in April, and our balance sheet remains strong despite the impact of the recent Naira devaluation.

    “We are benefiting greatly from use of the new Amukpe-Escravos Pipeline, which has supported our robust cash generation this year, and remain focused on improving operations, reducing costs where possible and further de-risking the business.

    “We continue to strengthen our Company in the knowledge that our efforts to improve governance and sustainability are widely supported by Nigerian and international investors.

    “The distraction of frivolous legal actions is receding, and we are focused on developing our assets and launching our joint venture ANOH Gas Processing Plant, which will significantly boost our cash generation in the coming years. We expect that this will enable us to fund additional investment in Nigeria’s energy infrastructure and return higher dividends to shareholders.

    “We remain confident that our proposed and transformational acquisition of MPNU will be approved, enabling us to scale into a significant energy supplier with diverse and productive assets that have potential to generate substantial benefits for Nigeria. We wholly align and support the recent government efforts to make Nigeria a more attractive place to invest and continue to focus on delivering affordable and reliable energy for Nigeria’s young, entrepreneurial and rapidly growing population.”

  • Cash shortages drops MTN’s fintechs’ revenue by 39.4%

    The effects of cash shortages on over-the-counter (OTC) transactions during the first quarter of 2023 impacted negatively on MTN’s Nigeria revenue from fintech customers.

    The company, which disclosed this in its first half of 2023 financial results, said it reported a 39.4 percent decline in its fintech customers for the half-year 2023, bringing its users down to 7 million at the end of June.

    According to MTN, out of the 7 million fintech customers, 3.1 million are MoMo wallet users, representing 44 per cent of its total fintech customers.

    Despite the decline in customers, MTN said it recorded a 7.8 per cent growth in fintech revenue. Its fintech revenue for the first six months of this year stood at N43.6 billion compared with N40.4 billion recorded during the same period last year.

    The report also said that the naira devaluation impeded the company’s financial growth in the second quarter of 2023, recording a forex loss of N131.5 billion, an increase of N 117.9 billion from the N13.6 billion forex loss reported in the first of 2022.

    MTN reported that the Central Bank of Nigeria’s recent forex operations changes caused a significant 60 per cent movement in the exchange rate to N756.24/US$ by the end of June 2023.

    The telecom giant’s second-quarter results show pre-tax profits fell a whopping 64 per cent to N44.6 billion, taking off its half-year profits to N200.3 billion compared to N268.6 billion in the same period in 2022.

    Explaining the reasons for the company’s fintech business poor performance in the period under review, MTN’s Chief Executive Officer, Mr Karl Toriola, said the firm’s fintech user base was impacted by the effects of the cash shortages on over-the-counter (OTC) transactions during the first quarter of 2023.

    Toriola noted that the fintech business remains a crucial priority for MTN as it continues to put structures in place to support the execution of its growth strategy and scale the fintech ecosystem in line with our Ambition 2025 strategy.

    In that regard, he said the company would ramp up its fintech campaigns to create more awareness.

    Meanwhile, MTN recorded 49.9 per cent growth in its digital revenue for the period under review.

    According to the company, this was bolstered by revenue from rich media services and content VAS.

    Toriola said the digital revenue growth was also supported by the adoption of digital products and the development of the active base, up 56.6 per cent to 14 million.

    “In H1, we bought Amazon Prime Video and Apple Music to our customers, expanding our rich media services portfolio. Ayoba, our instant messaging platform, continued to gain traction with the addition of over two million users, bringing the monthly active users to 7.2 million in H1.

  • Stock market swells N867.7bn, as forex gap widens across trades

    The Nigeria Exchange (NGX) last week grew by an additional N867.7 billion to cap at N35.7 trillion. All Share Index (ASI) rose by 0.1 percent.

    This is as the crude oil price rise in the international markets failed to grow the country’s foreign reserves, leading to a widening gap across markets.

    At the domestic stock market, Year-to-Date (YTD) return improved to 26.9 percent (previously 26.8 percent). Activity level dampened as average volume and value traded fell 31.7 percent and 62.0 percent to 570.9 million units and N7.5 billion week-on week (w/w) respectively.

    At the global equities market, resilient corporate earnings encouraged bullish sentiment.

    Last week, the global equities market performance was shaped by a mix of the International Monetary Fund (IMF’s expectation of a better growth in China, unsurprising rate hikes by the US Feds and European Central Bank (ECB), and exciting corporate earnings.

    Overall, the MSCI World index rose 0.3 per cent w/w. The US market closed the week positive as investors continued to digest impressive corporate earnings releases and recent economic data.

    Specifically, PCE headline inflation slowed to 3.0 per cent in June from 3.8 per cent in the prior month – further solidifying expectations of the Fed to halt its ongoing hawkish monetary campaign.

    A the foreign exchange (fox) market, Brent crude oil price rose 3.9 per cent w/w to $84.00/bbl. backed by strong demand from the Sino economy as it reopens economic activities.

    This also comes with supply being artificially contained by OPEC+ members and frail supply pulls from the US.

    “Meanwhile, Nigeria’s foreign reserves still falls short of expected accretion from crude earnings as it declined 0.1 per cent w/w to $33.9 billion as of July 26th, 2023”, said analysts at Afrinvest.

    Across the forex market last week, naira traded within a similar band to the previous week. At the Investors & Export (I&E) window activity level improved 8.3 per cent, 32,3 million to $421.6 million, leading to 0.3 per cent w/w appreciation of the naira N775.76/$. In the parallel market the dollar appreciated 0.6 per cent w/w to N870/$, bringing a weekly average spread increase of 60.6 per cent to N89.02.

    At the treasury bills market, the OPR and OVN rates (interbank rates) fell 19.5ppts and 19.6ppts w/w respectively to 0.9 per cent and 1.4 per cent due to buoyant system liquidity.

    Specifically, liquidity level advanced 180.2 per cent  w/w to N593.0bn as higher opening balances of banks (9.0x w/w) and Federal Account Allocation Committee (FAAC) payment largesse more than offset NT-Bills outflows of N264.3 billion during the week.

    The secondary market for domestic bond instruments closed the week on a bearish note as investors reacted negatively to the outcome of the MPC meeting. As such, average yield rose three basis points (bps) to 12.8 per cent backed by repricing across the curve.

    Specifically, yield on the short, mid, and long-dated instruments expanded by 145bps, 25bps and 19bps respectively.