Business
Capital market loses N309bn year to date
LAGOS – Among the 30 highly capitalised stocks listed on the Nigerian Stock Exchange (NSE), three banking stocks – Skye Bank plc, Ecobank Transnational Incorporated plc, and Fidelity Bank plc – were most negatively impacted in a recent value loss which took about N309 billion off Nigerian equities.
The sensitivity of the All Share Index (ASI) as benchmark indicator that tracks performance of the entire Nigerian equity market is largely driven by highly capitalised stocks.
BusinessDay tracking of the performance of large cap stocks at the Nigerian bourse (from January 7 to February 7, 2014) shows that Skye Bank plc lost most in the NSE-30 basket after its share price declined by 46.12 percent or N1.96kobo from a high of N4.25kobo to N2.29kobo.
Another big loser in the four-week period to February 7 is Ecobank Transnational Incorporated (ETI), which has declined by 12.82 percent or N2.18kobo from a high of N17 to N14.82kobo.
Similarly, Fidelity Bank plc has lost 11.24 percent or N0.3kobo from the value of its shares, which was N2.67kobo as at January 7 but declined to N2.37kobo as at February 7.
Also, at a low of N6.85kobo from N7.70kobo, Diamond Bank plc lost 11.04 percent or N0.85kobo of the value of its share in the review four-week period.
The value loss recorded in large cap stocks contributed immensely in redirecting the market trajectory to the negative zone of about 1.34 percent at the close of deals last week.
As banks recover from the 2013 regulatory pressures, with appreciable earnings growth expectation, market participants expect a positive correction in the prices of the value names in the sector.
For instance, Bismarck Rewane, CEO, Financial Derivatives Company Limited, noted that “bargain hunters may consider banks with solid fundamentals in this temporary downturn”.
Rewane, who spoke at the Lagos Business School (LBS) executive breakfast meeting, added that “banking stocks on the NSE are trading on average at 8.5x earnings compared with the market P.E. at 14.5x”.
Ashaka Cement plc, United Bank for Africa plc and Access Bank plc also followed the trio earlier mentioned in value loss.
In the four-week period to February 7, Ashaka Cement plc declined by 9.73 percent or N2.06kobo from a high of N21.17kobo to N19.11kobo; United Bank for Africa plc lost 9.72 percent or N0.86kobo from the value of its share from N8.85kobo to N7.99kobo; while Access Bank plc, which traded at a low of N8.79 kobo from N9.7kobo, lost 9.38 percent or N0.91.
As the banking counters occupy top position in this value shed, with associated positives on full-year 2013 earnings releases now in the air, market analysts see recent value shed as an opportunity for bargain hunters to buy into some of these banks, particularly those with strong fundamentals and dividend payment history.
The value of equities traded daily dropped by 49.85 percent or N3.163 billion from N6.344 billion to N3.181 billion; while the volume of equities declined by 34.58 percent or 144.361 million from 417.498 million to 273.137 million.
In addition to the aforementioned equities, Union Bank of Nigeria plc lost 9.09 percent or N0.95kobo from N10.45 to N9.50kobo; FBN Holdings plc declined by 8.69 percent or N1.4kobo from a high of N16.10kobo on January 7 to N14.70kobo as at February 7, 2014; while Nigerian Breweries plc, which opened the review period at N167.5kobo, dropped by 8.06 percent or N13.5kobo to N154.
Guinness Nigeria plc lost 7.91 percent or N18.83 percent from N238.08kobo to N219.25kobo; Lafarge Cement Wapco plc dropped by 6.09 percent or N7 from N115 to N108; while Zenith International Bank plc lost 4.92 percent or N1.15 from N23.38 to N22.23.
Looking further into the performance of stocks in NSE-30 basket, it shows that UACN plc, which stood at N70.35 on January 7, declined to N69 as at February 7, indicating a decline of 1.91 percent or N1.35; while GlaxoSmithKline Nigeria plc gained N1 or 1.47 percent from a low of N68 to N69.
International Breweries plc recorded a decline of 1.36 percent or N0.4kobo from N29.4 to N29; Oando plc lost N0.1kobo or 0.46 percent from N21.73kobo to N21.83kobo; FCMB Group plc declined by N0.11kobo or 2.87 percent from a high of N3.83kobo to N3.72kobo; Transnational Incorporated plc, which stood at N4.05kobo, rose to N4.11kobo, indicating a rise of 1.48 percent or N0.06kobo; while Nestle Nigeria plc declined by N30 or 2.56 percent from N1,170 on January 7 to N1,140 as at February 7.
Unilever Nigeria plc was in the gainers league in our four-week trend watch after rising by 1.44 percent or N0.77kobo from N53.24kobo to N54.01kobo; Stanbic IBTC Holdings plc lost 6.98 or N1.5kobo from a high of N21.50kobo to N20; Flour Mills of Nigeria plc also dropped by 0.07 percent or N0.06kobo from N87.06kobo to N87; GTBank plc dipped by N0.92kobo or 3.31 percent from N28.4kobo to N27.48kobo; while Total Nigeria plc lost 0.26 percent or N0.45kobo from N175.46kobo to N175.01kobo.
Forte Oil plc recorded a value rise of 14.84 percent or N13.21 from N89 to N102.21; Dangote Cement plc gained N5 or 2.13 percent from N235 to N240; Dangote Sugar Refinery declined by 1.36 percent or N0.16 from N11.8 to N11.64; Julius Berger was down by 1.78 percent or N1.29 from N72.29 to N71; while PZ Cussons Nigeria plc gained N0.1 or 0.26 percent from N37.90 to N38.
– BUSINESS DAY
Business
PENGASSAN Urges Strategic Focus on Local Refining Expansion
The Nigerian authorities have been called upon to focus on strengthening domestic refining capacity.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) made the call in a communiqué issued at the end of the three-day PENGASSAN Energy and Labour Summit (PEALS 2026).
It stressed the need for adequate protection for refineries operating in the country.
The PENGASSAN said Nigeria must reduce the economic inefficiency of exporting crude oil while importing significant volumes of refined petroleum products by creating an environment that supports domestic refining and other value‑adding activities.
The communiqué, signed by the union President, Festus Osifo, and General Secretary, Jerry Amah, stressed the need to protect refineries, including Dangote Refinery and Waltersmith Refinery.
The association said the expansion would enable Nigeria to retain a greater share of the value generated from its petroleum resources while creating jobs, conserving foreign exchange and stimulating industrial development. PENGASSAN linked the growth to wider opportunities in petrochemicals, gas processing and other downstream activities.
READ ALSO: Umar Cautions Against Irregular Policies in Nigeria’s Oil Industry
The communiqué reads in part: “The summit called for sustained policies and investments to expand Nigeria’s domestic refining capacity and reduce the economic inefficiency of exporting crude oil while importing significant volumes of refined petroleum products. The need to protect refineries (such as Dangote Refinery, Waltersmith Refinery, etc.) within Nigeria’s jurisdiction was emphasised.
“Nigeria must progressively retain more value from its petroleum resources through domestic refining, petrochemicals, gas processing and other value‑adding activities capable of generating employment, conserving foreign exchange and stimulating industrial growth.
“Ultimately, the strength of Nigeria’s oil and gas industry will not be measured merely by the resources beneath the ground, but by the projects delivered, the value created, the Nigerian capabilities developed, the decent jobs sustained and the prosperity generated for the Nigerian people.”
The association also warned that abrupt policy changes, overlapping mandates, repetitive approvals and conflicting directives increase the cost of doing business and weaken Nigeria’s competitiveness for global energy capital.
The PENGASSAN called for faster regulatory approvals, digitalised processes and clearer timelines, arguing that the effectiveness of regulation should be measured by its impact on investment, production, government revenue, job creation and national value rather than simply by the number of licences or approvals issued.
On gas, the PENGASSAN advocated an integrated approach to developing Nigeria’s more than 215 trillion cubic feet of proven reserves, including investments in processing facilities, pipelines, storage, LNG, LPG and CNG infrastructure. It said gas should be deployed more aggressively for power generation, manufacturing, transportation, fertiliser and petrochemical production.
The association also urged stronger protection of workers’ rights, occupational safety and employment during mergers, acquisitions, divestments and asset transfers, saying sustainable investment requires skilled and fairly treated workers and that increased production must not come at the expense of workers’ lives and wellbeing.
In addition, the PENGASSAN said the next phase of Nigeria’s petroleum industry must focus on execution with measurable targets and clearly assigned responsibilities to ensure policies translate into projects, production, investment and sustainable employment.
Business
PENGASSAN to Link Up with NUPRC to Unlock 3mmbopd
Two key stakeholders in Nigeria’s oil and gas industry have resolved to work closed to unlock three million barrels per day (bpd) of crude oil by 2030.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), according to the new President of former, Comrade Bosun Olabiyi-Agoro, would be working closely with each other to attain the objective.
He made the disclosure on Wednesday while on a visit to the NUPRC corporate headquarters.
The Head, Media and Corporate Communications, NUPRC, Eniola Akinkuotu, who made the disclosure in a statement, also credited the PENGASSAN President with declaring that inasmuch as the union is open to negotiations, issues bordering on the rights of workers to freely associate and join the union are non-negotiable.
READ ALSO: Tinubu Banks on NLNG Train 7 to Boost Nigeria’s Gas-led Economy
He made it public that issues surrounding contract staffing will be one of the key issues his administration will address.
“The President of Nigeria has an ambition which he runs through the CCE which is to make sure that by 2030 we are able to produce three million barrels per day. All of us have to work to make that happen. It will be our happiness to make sure that that target is actually attained. We can assure you that we are here to collaborate. We will be very reasonable,” Olabiyi-Agoro assured.
On her part, the Commission Chief Executive, Oritsemeyiwa Eyesan, said the President Bola Tinubu-led Federal Government had been working assiduously to increase production as evidenced by the latest executive order which is targeted at deep offshore investments. She noted that production had risen from a low of 1.1mmbopd a few years ago to an estimated 1.755mmbopd in 2026.
Seeking the support of PENGASSAN to achieve this target, Eyesan, said industrial stability remained critical to hitting higher production targets.
“As you settle into your new role, be assured that the commission will give you 150 per cent cooperation. In addition to the support we will give you, we want to ask that we work very closely to actualise government objectives.
“We want to grow production from our current level to 3 million barrels in 2030. For gas, we are still doing under 8bcf and we want to grow that to 12bcf by 2030. So, let’s make that happen,” she stated.
Business
Tinubu Banks on NLNG Train 7 to Boost Nigeria’s Gas-led Economy
As the multi-billion-dollar Nigeria LNG Limited (NLNG) Train 7 Project reaches more than 90 percent completion, President Bola Tinubu has described it as critical to Nigeria’s gas-led economic agenda.
According to Tinubu, the successful delivery of the project would help expand Nigeria’s gas exports, create jobs, deepen local capacity and strengthen investor confidence in the country’s oil and gas sector.
The President spoke at the State House, Abuja, on Thursday when he received an NLNG delegation led by its Managing Director and Chief Executive Officer, Adeleye Falade.
The delegation briefed the President on the progress of Train 7, prospects for further expansion and challenges affecting the company’s operations and contributions to the national economy.
The discussions also covered the pricing and accessibility of liquefied petroleum gas (LPG), trucking along the Bonny-Bodo Road corridor, NLNG’s contribution to public revenue, its investments in the Bonny-Bodo Road and other social-impact projects, and the need for a more enabling business environment.
Tinubu congratulated Falade on his appointment, describing his assumption of office as coming at a defining period for the NLNG and Nigeria’s gas development ambitions.
Tinubu expressed the view that the completion of the Train 7 project must translate the country’s vast gas reserves into jobs, increased exports, industrial growth and long-term economic value.
“I congratulate you, Leye, on your appointment. Train 7 is at the centre of our national gas agenda. Its success matters not only to NLNG, but to Nigeria’s economic future,” the President said.
Tinubu commended the progress recorded on the project, describing Train 7 as a benchmark for project delivery, partnership, Nigerian content development and investor confidence.
He assured the NLNG management that the Federal Government would continue to improve the business environment, provide greater regulatory clarity and remove bottlenecks affecting major oil and gas investments.
“Nigeria is open for business, but it must be business that creates value at home — building capacity, supporting communities, protecting the environment and contributing to national prosperity. NLNG must continue to lead by example,” he added.
Responding, Falade thanked the President for his administration’s support for NLNG and the broader gas sector, assuring him that the company remained committed to the safe and successful completion of Train 7.
“With the project now over 90 percent complete, our immediate priority is to deliver the remaining work safely, efficiently and to the required quality, while preparing the plant for reliable and sustainable operations,” Falade said.
He said the project would increase Nigeria’s LNG production capacity, support export growth, create opportunities for Nigerian workers and businesses, deepen local participation and generate greater long-term value from the country’s gas resources.
Falade also restated NLNG’s commitment to supporting the domestic LPG market and improving access to cleaner cooking fuel for households and businesses.
He, however, called for coordinated action among the Federal Government, regulators and industry operators to increase domestic supply, improve storage and distribution infrastructure, eliminate avoidable costs and create a more transparent and efficient LPG market.
“Improving LPG accessibility is important to Nigeria’s energy transition and to the wellbeing of millions of Nigerian households. NLNG remains committed to supporting the domestic market, but improving affordability requires coordinated action across the entire LPG value chain,” he said.
The NLNG chief also sought the President’s intervention in addressing ease-of-doing-business challenges, particularly the proliferation of taxes, levies, charges and regulatory demands imposed by different tiers and agencies of government.
According to him, multiple and sometimes conflicting fiscal and regulatory obligations raise operating costs, create uncertainty and could discourage existing operations and future investments.
Falade assured the President that NLNG was ready to align more closely with the Federal Government’s development agenda and explore additional areas of partnership.
The meeting ended with a renewed commitment by the Federal Government and NLNG to sustain momentum on Train 7 as the project enters its final phase.
Both sides also agreed to strengthen their partnership to support the project’s successful delivery and NLNG’s broader contribution to Nigeria’s gas development and economic growth.





