Business
NSE’s Bold Step in the Right Direction
LAGOS – Eromosele Abiodun writes that the bid by the Nigerian Stock Exchange (NSE) to move from frontier market to emerging market status is a bold step that will determine the future of the capital market
During a news briefing on the 2013 market recap and outlook for 2014 in Lagos recently, the Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, announced that the Exchange will in the course of the year pursue key initiatives aimed at propelling the NSE into the emerging markets.
He said he expect Nigeria to be a key beneficiary of the MSCI 2013 annual market classification review, which will see Qatar and UAE’s (together accounting for 30 per cent) transition from the MSCI Frontier Markets Index to the MSCI Emerging Markets Index.
“Cautiously, we will watch for the effects as Nigeria’s weight in the MSCI Frontier Markets Index shifts from the current 13.8 per cent to 19.7 per cent, making it the second largest market in the index, ”he said.
In growing the capital market in preparation for achieving emerging market status, Onyema said the NSE would in 2014 facilitate access to and participation in the market, increase its footprint on the continent, and deploy a risk framework to safe-guard the market value.
Specifically, he said the NSE plans to increase the number of new listings across five asset classes, operate a fair and orderly market, based on just and equitable principles, and diversify income streams, among other things.
Achieving that, according to him, will involve introducing new products such as a premium board, adoption of Generation ‘Y’ trading tools, and introducing a world-class surveillance programme, among others.
The NSE also plans to champion the development of enabling laws and policies to drive capital market development in 2014.
NSE Indices Formulation
The effort to make NSE a global market actually started a long time ago when the first market index in Nigeria was formulated 24 years after the founding of the NSE. Called the NSE All-Share Index or ASI, it was formulated in January 1984 with a base value of 100. Only ordinary shares are included in the computation of the index.
The index is value-relative and is computed daily. Over thirty years after the introduction of the ASI, the Exchange introduced the NSE-30 Index, which is a sample-based capitalisation-weighted index plus four sectoral indices to complement existing indices. These are NSE-Food/Beverages Index, (Later renamed NSE–Consumer Goods Index) NSE Banking Index, NSE Insurance Index and NSE Oil/Gas Index.
Recently, the NSE introduced the NSE Industrial Index as part of key initiatives to drive market optimisation. The Industrial Goods sector, which has about 100 prospects in pipeline that may possibly list on the bourse, consists of four sub-sectors with 27 companies listed in the sector, which contributes to 28 per cent of total market capitalisation.
The sector has not been able to contribute its quota effectively to the Nation’s GDP due to some key issues affecting the sector e.g. poor infrastructures, influx of sub-standard and proliferations of smuggled goods, unfavourable import tariffs along with inconsistent government policies. According to the key players in the sector, all these have hindered the desired growth in the industrial sector.
A New Level
To further enhance the NSE’s chance and drive the market towards achieving its $1 trillion capitalisation plan, the NSE last year introduced a new NSE Industrial Index made of 10 companies selected from a total of 27 companies listed in the sector.
The selection was based on market capitalisation, liquidity, full year returns of 40.36 per cent in 2012 and year-to-date (YTD) returns of 41.18 per cent when it was launched 2013.
The foundation member of the index are Ashaka Cement Plc, Nigerian Bag Manufacturing Company Plc, Dangote Cement Plc, Lafarge Cement WAPCO Nigeria Plc, CAP Plc, Cement Company of Northern Nigeria Plc, Berger Paints Plc, Cutix Plc, DN Meyer Plc and Portland Paints & Products Nigeria Plc.
Experts had told THISDAY at the introduction of the NSE Industrial Index that it was timely because the existing market indicator, the NSE-30, is more or less a price-weighted average, which gives higher-priced stocks more influence over the average than their lower-priced counterparts, but takes no account of the relative industry size or market capitalisation of the components.
Effort Already yielding Results
The introduction of the NSE Industrial Index also compliments the NSE’s listing drive. Over 100 industrial goods firms were said the be making plans to List on NSE following the introduction.
Onyema had while speaking at a sectoral dinner for industrial goods in Lagos recently revealed that the number of companies listed in the industrial goods sector of the NSE is set to rise as over 100 companies were eyeing listing on the exchange.
There are 27 companies that are currently listed in the industrial goods sector covering building materials, electronic and electrical products, packaging/containers, tools and machinery. The sector contributes 28 per cent to the total market capitalisation of the exchange.
The NSE executive officer, had told THISDAY at the dinner that the situation would improve soon because the Exchange was putting policies in place that will turn the sector around.
According to him, the exchange has made deliberate efforts to encourage new listings. He noted that those efforts are beginning to yield the desired results. Those efforts, he explained, were in the areas of business development, strong regulatory environment and technology.
“We have introduced value adding services, reviewed our listing requirements. The exchange has also introduced x-compliance report for companies and dealing members among other initiatives. All these are attracting attention of companies that have shown willingness to list on the exchange,” he said.
As part of efforts to make the industrial goods sector of the exchange more attractive for investors thereby encourage more listings, the NSE last week introduced the NSE Industrial Index.
The index, which comprises the most capitalised and liquid companies in the industrial sector, is designed to provide an investible benchmark to capture the performance of the industrial sector.
Onyema had explained that 10 out of the 27 companies listed in the industrial goods sector of the NSE were selected for the index based on their market capitalisation and liquidity.
He disclosed that any investor who had invested in industrial goods sector would have recorded a return of 40.4 per cent in 2012, noting that year-to-date, the sector has fetched a return of about 41 per cent.
Apart from the introduction of the index, the NSE will also re-launch its Alternative Securities Market (ASeM) in order to improve the performance of existing firms and encourage the listing of new ones.
Alternative Securities Market
As part of its expansion effort, the NSE had in June last year launched the Alternative Securities Market (ASeM), a market for emerging companies with high potential for growth in Nigeria.
The ASeM, is a specialised board on the Nigerian bourse where small to medium companies can access the capital market under less stringent rules and requirements to raise long term, low cost capital.
Onyema had told THISDAY at the launch that the NSE is a staunch believer in the critical role of emerging enterprises in a developing economy and as such we have taken the bold move of providing a platform for sustainable growth and development of these companies.”
The ASeM board, he said, will allow issuers, especially indigenous companies the opportunity to inject relatively low cost and long term capital into their businesses through flexible rules that recognize their growth potential rather than the size of operation.
Shedding light on the possibility of most of the companies expected on the ASeM board being without any professional guidance and therefore being unable to meet the post listing requirements of the Exchange, GM Listings Sales and Retention, of the NSE, Mrs. Taba Peterside, said: “Designated Advisers (DA) will be required for all companies listed on the ASeM Board of The Exchange to ensure compliance with all the requirements and obligations of the Alternative Securities Market.
The DAs, she added, will provide professional resources to qualifying companies for guidance and advice on securities-related matters.
Information gathered from within the Exchange revealed that the NSE has already completed the selection process for the DAs and is soon to name the successful applicants ahead of the official launch of the ASeM Board slated for later this month.
– THIS DAY
Business
LPG Exports Ban Still in Force – FG
The ban on exportation of Liquefied Petroleum Gas (LPG) is still in force despite rising prices and supply concerns across Nigeria.
An official with the Federal Ministry of Petroleum Resources made the clarification amid soaring prices and claims that locally produced cooking gas is being exported in foreign currency at the expense of domestic consumers.
Speculations had mounted amongst cooking gas retailers that some locally produced LPG was being sold to West African buyers because it was more profitable than supplying the domestic market.
The Chairman of the Liquefied Petroleum Gas Retailers Association, Ayobami Olarinoye, had told The PUNCH that the persistent scarcity and high prices of cooking gas were being worsened by limited product availability and alleged exports by a local refinery.
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Speaking exclusively with The PUNCH, the spokesman for the Minister of State for Petroleum Resources (Gas), Louis Ibah, dismissed the claim, saying the Federal Government’s restriction on LPG exports remains in place and is being enforced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
“The ban on exports of LPG announced by the Minister of State for Petroleum Resources (Gas), Dr Ekperikpe Ekpo, is still in place to stabilise prices and is strictly enforced by the NMDPRA,” Ibah told The PUNCH on Thursday.
Ibah emphasised that none of the local producers is allowed to export cooking gas, saying all resources are focused on making the product available for Nigerians. “It’s important to note that none of our producers are currently exporting the LPG meant for cooking in Nigeria, so all resources are focused on meeting our local needs,” he said.
The government’s position comes as concerns mount over soaring cooking gas prices and supply shortages across several parts of the country. Retailers and consumers have reported difficulties accessing supplies, while prices have continued to rise.
Describing the situation, Olarinoye said access to products had become increasingly difficult in recent weeks. “Getting the product has been excruciatingly difficult, and it is not readily available. Out of every 10 plants, only one or two would have products to sell to our members. Many of them, especially those situated in relatively residential areas, prefer to sell directly to end-users, while a few are still selling to retailers,” he stated.
He warned that prices were unlikely to decline in the immediate term unless there was an intervention. “The high price may remain the way it is until the situation changes positively,” the LPGAR boss noted.
Olarinoye called on the Federal Government to create incentives that would encourage more investors to enter the LPG market and boost local supply.
A source at the NMDPRA said the regulator was working with the Nigerian National Petroleum Company Limited and other stakeholders to improve product availability. “The regulator is collaborating with the Nigerian National Petroleum Company Limited and other key stakeholders to further boost LPG availability in the local market,” the source said.
It was also learnt that a new Seplat gas facility is expected to begin LPG supply to the domestic market by July. “This means we can expect a significant improvement in supply,” the source added.
The concerns come as the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, called for stronger efforts to improve domestic gas distribution and utilisation across the country.
Speaking at the Association of Local Distributors of Gas Business Forum 2026 in Abuja, Ekpo said Nigeria’s vast gas reserves would remain economically insignificant unless they are translated into accessible energy for households, industries and businesses.
Represented by the Director, Midstream and Downstream, Mrs Ikenma Irene, the minister delivered a keynote address titled, ‘From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives’.
He noted that Nigeria holds more than 209 trillion cubic feet of proven natural gas reserves but said the country’s development would depend on how effectively those resources are utilised.
“Nigeria’s development will not be measured by the volume of gas beneath our soil but by the extent to which that gas powers industries, supports households, creates jobs, and fuels sustainable economic growth,” the minister stated.
According to him, infrastructure gaps, weak distribution networks and limited market penetration remain major obstacles to increased domestic gas utilisation.
Ekpo reiterated the Federal Government’s commitment under President Bola Tinubu to accelerate domestic gas development through the Decade of Gas initiative and highlighted reforms under the Petroleum Industry Act 2021 aimed at improving investor confidence and encouraging private sector participation.
“Nigeria must now move decisively from gas abundance to gas accessibility. The success of this vision requires policy consistency, strong institutions, strategic investments, infrastructure expansion, security collaboration, and sustainable stakeholder partnerships,” he said.
He urged operators to focus on practical solutions that would expand infrastructure and distribution networks while ensuring affordable and reliable access to gas.
“Let us remain focused on building a gas sector that delivers real value to Nigerians—one that powers industries, supports households, creates jobs, enhances energy security, and drives inclusive national development,” he stated.
The minister concluded with a call for the implementation of gas sector reforms. “Let us move from gas abundance to gas access. Let us move from policy to implementation. Let us build a gas economy that works for all Nigerians,” he added.
Business
Dangote Foundation Distributes Rice to Cement Host Communities in Ogun
In a significant effort to alleviate the burden of rising food costs on vulnerable households, the Aliko Dangote Foundation (ADF) has commenced the distribution of bags of rice to members of host communities of Dangote Cement Plc across Nigeria.
The initiative forms part of the Foundation’s National Food Intervention Programme aimed at cushioning the effects of prevailing economic challenges on ordinary Nigerians. The distribution exercise, which is being rolled out across communities where Dangote Cement operates in Ibese and Itori, both in Ogun state, underscores the Dangote Group’s commitment to inclusive growth and community wellbeing.
In what has now become an annual event, in which thousands of 10kg bags of rice are being distributed to beneficiaries from 17 host communities in Ibese and 36 others in Itori and Ijebu-Igbo with focus on low-income families, elderly residents, and other vulnerable groups within the host communities.
Speaking on the initiative, ADF Chief Executive, Zouera Youssoufou who was represented by the ADF Head of Operations, Victor Ejiro reaffirmed that the food intervention programme reflects the organization’s long-standing dedication to food security and poverty alleviation, particularly during periods of economic strain.
She said: “This intervention is designed to provide immediate relief to households grappling with high food prices. As a socially responsible organization, we recognize the importance of supporting our host communities beyond business operations,”.
“At the Aliko Dangote Foundation, we recognize the current economic realities facing many Nigerian households. This intervention is aimed at providing immediate relief while reinforcing our long-standing commitment to the wellbeing of our host communities.”
“We understand the difficulties families are facing at this time. This support is our way of standing with our communities and ensuring that no household is left behind during these challenging times. Sustainable development goes beyond business operations. Through this programme, we are strengthening community resilience and contributing to national efforts to improve food access and social stability.”
“This intervention is focused on delivering real, immediate support to vulnerable households. We will continue to expand our reach to ensure more families benefit from this programme.”
At the Ibese distribution centre, The Aboro of Ibeseland, Oba Rotimi Oluseyi Mulero thanked the giving spirit of Alhaji Dangote describing the rice distribution as “operation feed the families”.
He stated excitedly: On behalf of our people, I extend our profound gratitude to the Aliko Dangote Foundation for this timely and commendable gesture. At a time when many families are facing economic challenges, this distribution of food items will go a long way in alleviating hardship within our communities.
“We appreciate Dangote Group not only as a business partner but as a responsible corporate citizen that continues to demonstrate genuine concern for the wellbeing of its host communities. We pray that this partnership continues to flourish for the benefit of all. Today, our hearts are filled with appreciation. This support has come at a very critical time for our people. Many households are under pressure, and this intervention will bring relief and hope to families.”
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Some of the community leaders and beneficiaries also expressed appreciation to the ADF Chairman, Alhaji Aliko Dangote for the gesture, noting that the rice distribution comes at a critical time when many families are facing financial pressures due to inflation and rising living costs.
Also at Itori, the Olu of Itori, Oba Abdulfatai Akorede Akamo said his people’s hearts are filled with appreciation. “This support has come at a very critical time for our people. Many households are under pressure, and this intervention will bring relief and hope to families.
“We thank Alhaji Aliko Dangote and his Foundation for remembering the grassroots and standing by us in times of need. We are deeply grateful for this act of kindness. May the Almighty bless the Dangote Group and increase its capacity to continue doing good for humanity.”
At several distribution points, orderly processes were put in place to ensure transparency and equitable access. Local coordinators, in collaboration with community representatives, supervised the exercise to guarantee that the items reached intended beneficiaries.
The Dangote Cement host communities, spread across key states including Ogun, Kogi, Benue, Edo, and others, have historically benefitted from numerous Corporate Social Responsibility (CSR) initiatives by the Dangote Group, ranging from infrastructure development to healthcare, education, and economic empowerment programmes.
The ongoing food intervention aligns with the Foundation’s broader strategy to enhance food access and strengthen social safety nets across Nigeria. It also complements government efforts aimed at mitigating the impact of economic headwinds on citizens.
Industry observers note that such private sector-driven interventions are increasingly crucial in bridging gaps in social welfare delivery, especially in times of economic uncertainty.
The ADF, one of the largest private philanthropic organizations in Africa, continues to play a pivotal role in supporting national development priorities through targeted interventions in health, education, and economic empowerment.
As the rice distribution progresses, the Foundation has reiterated its commitment to expanding the reach of the programme to cover more communities in need, reinforcing its mission to improve the quality of life for Nigerians.
Business
Africa’s Largest Bank Backs Dangote Refinery’s IPO
Africa’s largest financial institution, Standard Bank Group, has reaffirmed commitment to support the growth of the Dangote Industries Limited (DIL), pledged backing the planned listing of the Dangote Petroleum Refinery, and expressed readiness to finance future expansion projects across the continent.
The commitment came during a strategic visit by Standard Bank Group Chief Executive, Sim Tshabalala, and senior executives to the Dangote Petroleum Refinery and Dangote Fertiliser complex in Lagos.
Speaking after touring the facilities, Tshabalala described the refinery as a transformational industrial project with far-reaching implications for Nigeria and Africa.
“We are here because the Dangote Group is a large and important global player and a significant force on the African continent,” he said. “Standard Bank is the largest financial institution in Africa and we have partnered with Dangote on a variety of initiatives. We are here to lend support, to see this magnificent refinery and to discuss Vision 2030 and how we can continue supporting the Group’s growth ambitions.”
Tshabalala disclosed that Standard Bank intends to play a leading role in the refinery’s planned Initial Public Offering and future growth initiatives.
“As Dangote lists, there is an IPO coming up and we are a leading player in that process,” he said. “As the Group continues to expand in Nigeria and across Africa, there will be opportunities for financial advisory services and balance sheet support, and we stand ready to provide both.”
He described the refinery as “a wonder of the world,” noting that its impact is already being felt through stronger foreign exchange earnings, improved balance-of-payments performance and enhanced energy security.
“This is a wonder to behold. It is massive, productive and transformative. It is already making a significant contribution to Nigeria’s economy through its impact on foreign reserves, the balance of payments and the lives of ordinary Nigerians,” he said.
Group Vice President, Oil and Gas, Dangote Industries Limited, Devakumar Edwin, said the visit represented a significant milestone in a partnership that began during the refinery’s construction phase.
“The bank visited us during construction and understood the scale of what we were building,” Edwin said. “Today, the refinery is fully operational and they can see what their support has helped to create. It is like nurturing a tree and eventually seeing it bear fruit.”
He added that both organisations are exploring opportunities to deepen collaboration as Dangote expands its industrial footprint across Africa.
Managing Director and Chief Executive Officer of the Dangote Petroleum Refinery, David Bird, said the visit highlighted the importance of long-term partnerships in delivering large-scale industrial projects.
“Standard Bank has been one of our strongest supporters throughout the history of the refinery and the broader Dangote Group,” Bird said.
“This visit was an opportunity to demonstrate what that support has enabled. Seeing is believing, and it allows our partners to appreciate the scale of what has been achieved.”
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The visit also coincided with a major operational milestone for the refinery, which has now exceeded its original design capacity.
Bird disclosed that the refinery recently completed performance test runs at 700,000 barrels per day, above its nameplate capacity of 650,000 barrels per day.
“We have always believed there was engineering flexibility built into the design,” he said. “Achieving sustained production of 700,000 barrels per day is a testament to the technical capability of our people and the strength of the systems we have built.”





