Motivated by the relief provided by President Bola Ahmed Tinubu’s crude-for-naira swap initiative, two prominent players in Nigeria’s downstream oil and gas sector — Ardova Plc and Heyden Petroleum — have gone into a bulk purchase agreement with the Dangote Petroleum Refinery.

Biztellers reports that this strategic move is designed to ensure a steady supply of petroleum products at affordable prices, with a view to further stabilising Nigeria’s fuel market and enhancing energy security.

This strategy seeks to build on the example set by MRS Oil Nigeria Plc, which had entered into a similar agreement with Dangote Refinery.

ALSO READ: One Dies Following Explosion Of Tesla Cybertruck At Trump’s Hotel In Las Vegas

As a result, MRS Oil had lowered its petrol prices to N935 per litre across all its stations nationwide, addressing the long-standing issue of price disparities between states. On the sideline, MRS Oil’s stock surged to a new 52-week high last Friday, as investors became increasingly optimistic about the company’s future earnings prospects.

It was gathered that the bulk purchase agreement with Dangote Petroleum Refinery would enable both Ardova and Heyden to secure a reliable and consistent supply of petroleum products from the world’s largest single-train refinery, ensuring a stable supply of fuel at competitive prices, benefiting consumers across the country.

The arrangement ensures that Ardova and Heyden will have access to a full range of refined products, thereby securing their operations with a reliable supply chain.

A statement from Ardova Plc underscored the importance of this agreement in fostering a more competitive environment within Nigeria’s downstream oil and gas sector.

Ardova has been a key off-taker from the Dangote Refinery since its inception, but this new framework is expected to formalise and strengthen the partnership between the two companies, creating long-term benefits for both parties.

“This framework will see Ardova Plc offtake a full slate of petroleum products from the refinery. While Ardova Plc has been a significant off-taker from the refinery since its inception, this new framework will institutionalise a more robust relationship between the two companies to further enhance the emerging competitive landscape in the downstream oil and gas industry in the country,” noted the statement.

The partnership with Dangote Refinery is poised to have a transformative impact on Nigeria’s oil and gas market. By ensuring a stable and affordable supply of fuel products in the over 1,000 retail outlets of the two companies, the agreement will help to alleviate the recurring issue of fuel scarcity that has long plagued Nigeria.

The Dangote Refinery, which began production in 2024, has already played a pivotal role in addressing these challenges. Its large-scale operations have helped alleviate the supply pressures that often lead to price hikes and fuel shortages.

During the festive season, Nigerians enjoyed a relatively smooth period, with stable fuel availability and no significant price increases at the pump. Unlike previous years, when the country faced fuel shortages and arbitrary price hikes during peak periods, the Dangote Refinery has significantly contributed to stabilising the market and maintaining price consistency.

. . . ASI Closes 2024 At +37.65%

The Nigerian Exchange Limited (NGX) has marked a remarkable turnaround, breaking away from the poor performance of the 2015–2019 period to thrive in the 2020s.

Biztellers reports that the poor run came on the heels of the oil price crash in 2015 and the ensuing recession in 2016, the 2020s have ushered in a period of unprecedented growth for Nigeria’s stock market.

ALSO READ: SERAP Urges Tinubu To Direct CCB To Publish President’s, VP’s, Others Assets

Since 2020, the NGX All-Share Index (ASI) has delivered a stellar return of 283.45%, climbing from 26,842.07 points at the end of 2019 to 102,926.40 points as of December 2024. Standout years include 2020, 2023, and 2024, as investors sought higher real returns from equities amid negative yields in the fixed-income markets. The index closed 2024 with an impressive annual growth of 37.65%.

The depreciation of the naira, driven by macroeconomic reforms by the Central Bank of Nigeria (CBN) and the Federal Government, has significantly boosted the performance of the stock market. Foreign capital inflow has steadily increased, rising from a low of 4% in mid-2023 to an average of 16% by November 2024.

Additionally, high-profile listings have energized trading activities on the exchange, providing investors with a broader range of blue-chip stocks. Notable entries include Geregu Power Plc, Transcorp Power Plc, Aradel Holdings, and BUA Foods.

These listings have propelled the market capitalization from N12.79 trillion at the end of 2019 to N62.76 trillion as of December 2024, representing a meteoric increase of N49.97 trillion.

At the Closing Gong Ceremony marking the end of 2024 trading activities, NGX’s Chief Executive Officer, Jude Chiemeka, represented by the Head of Trading and Products, Abimbola Babalola, commended key stakeholders, including the stockbroking community represented by the Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON).

“The year 2024 witnessed significant activity in the secondary market, a testament to the efforts of our trading license holders. Complementary macroeconomic fundamentals were instrumental, and we appreciate the impactful policymaking by the CBN and the Federal Ministry of Finance. We also commend the Securities and Exchange Commission for its effective oversight, especially during the smooth banking recapitalization process,” he said.

CIS President and Chairman of Council, Oluropo Dada, and ASHON Chairman, Sam Onukwue, represented by the 2nd Vice Chairman, Ify Rita Ejezie, emphasized the pivotal role of stockbrokers in driving capital market growth.

They reiterated their commitment to advocating for policies that enhance market development.

Despite the impressive growth, challenges remain. According to Proshare’s 2025 market outlook, Nigeria’s capital market continues to grapple with high transaction costs, information asymmetry, monetary tightening, low trading volumes, and wide bid-ask spreads, all of which stifle liquidity.

However, the report underscores the potential of leveraging the equity market through the listing of national assets, such as NNPC, to unlock liquidity and stimulate domestic and foreign investment.

GMD/CEO of Nigerian Exchange Group, Temi Popoola, reflected on the market’s resilience and growth trajectory, thus, “Nigeria’s capital market has proven itself as a hub of resilience and innovation, consistently offering valuable opportunities for investors. The strong performance of our blue-chip companies over the past decade has been a key driver of returns, even amid challenging economic cycles. Inflationary pressures have made equities an attractive hedge, and strategic new listings have significantly boosted market activity.”

He further highlighted the transformative impact of policy reforms, “Macroeconomic shifts, particularly in the oil and gas sectors and currency devaluation, have been transformative. These changes, coupled with the liberalization of exchange rates, have enhanced operational efficiency and contributed to the robust performance of listed companies. As we approach 2025, we remain optimistic that continued reforms and a stable macroeconomic environment will sustain growth, boost liquidity, enhance investor confidence, and deliver long-term value for all market participants.”

The Chairman, Access Holding Company Plc, Aigboje Aig-Imuokhuede, has commended the digital innovation efforts of the Nigerian Exchange Group (NGX) following the successful N351bn Rights Issue completed to comply with the regulatory directive of the Central Bank of Nigeria (CBN).

According to a statement from Access HoldCo, Aigboje Aig-Imuokhuede said, “By leveraging the NGX’s E-offering platform – NGX Invest, the Company provided its shareholders with a seamless, efficient, and convenient subscriber experience significantly reducing barriers and democratizing participation in the Rights Issue.”

ALSO READ: Adeleke Commiserates With AbdulRazaq On CoS’ Demise

In an article published by the World Federation of Exchanges, the Group Managing Director/Chief Executive Officer, Nigerian Exchange Group Plc, Temi Popoola had emphasised that the platform was at the core of NGX Group’s digital strategy, stating that it was designed to streamline the distribution of securities in the Nigerian capital market.

“Its user-friendly interface allows investors to onboard seamlessly and verify their identities through the Nigeria Inter-Bank Settlement System (NIBSS), using their Bank Verification Number (BVN). With NGX Invest, the traditionally complex and time-consuming process of investing is reduced to a few clicks, making it easier for investors across Nigeria, including those in underserved areas, to participate in the capital market,” he said.

The success of Access HoldCo’s capital raise, making it the first bank to officially comply with the CBN’s Banking Recapitalisation directive, is a key social proof and testament to the robustness of NGX Invest and demonstrates the potential of NGX Group’s platform to support the growth and business goals of its Issuers.