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
AVA Capital Plc has been admitted to the Main Board of Nigerian Exchange Limited (NGX) following the listing by introduction of its 5 billion ordinary shares at ₦7.50 per share, with a market capitalisation of ₦37.5 billion.
The listing marks a significant milestone in the Company’s growth journey, reinforcing its commitment to sustainable growth, strong corporate governance and long-term value creation, while enhancing its visibility within Nigeria’s capital market.
Speaking at the listing ceremony, the Chief Executive Officer of AVA Capital Plc, Kayode Fadahunsi, described the admission as a defining moment in the Company’s evolution. “Our admission to the Main Board of Nigerian Exchange is more than a listing; it is a public affirmation of the business we have built and the future we are committed to creating. We have established a resilient institution with a clear growth strategy, strong governance culture and an unwavering focus on creating sustainable value for our shareholders. Becoming a listed company deepens our accountability, broadens our visibility and positions us to seize new opportunities as we continue our growth journey.”
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Commenting on the listing, the Chief Executive Officer of Nigerian Exchange Limited, Jude Chiemeka, said the admission reflects the continued confidence of businesses in Nigeria’s capital market as a platform for sustainable growth. “Today’s listing reflects the confidence that forward-looking companies continue to place in the Nigerian capital market. By joining the Main Board of Nigerian Exchange, AVA Capital Plc is embracing the transparency, governance standards and market discipline that define public companies, while positioning itself to access a broader investor base and unlock long-term value. We are delighted to welcome AVA Capital Plc to the NGX family and look forward to supporting its continued growth.”
The admission of AVA Capital Plc expands the range of investment opportunities available to investors while reinforcing NGX’s commitment to connecting businesses with long-term capital and supporting their growth through enhanced visibility, strong governance and deeper investor engagement.
June 2026 results of the Nigerian National Petroleum Company Limited (NNPC Ltd) shows a Profit After Tax (PAT) of N535 billion, despite recording a marginal decline in crude oil and condensate production during the month.
The figure represents a 15.8 percent increase over the preceding month, according to the latest Monthly Financial and Operations Report of the state oil major, which indicates that the PAT rose by N73bn from the N462bn recorded in May, while revenue increased to N4.389tn.
According to the report, the company remitted cumulative statutory payments of N6.286tn to the Federation in H1, 2026.
It read, “NNPC Limited recorded N535bn profit after tax for the month of June, representing a 15.8 per cent increase from the N462bn recorded in May. Total revenue for the month stood at N4.389tn, while cumulative statutory payments to the Federation for the period January to June 2026 increased to N6.286tn, underscoring NNPC Limited’s sustained contribution to national revenue generation.”
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Average crude oil and condensate production declined marginally to 1.72 million barrels per day in June from 1.73 million barrels per day in May, representing a 0.58 percent decrease. However, output was 1.18 percent higher than the 1.70 million barrels per day recorded in June 2025.
According to the report, production was affected by operational disruptions, facility integrity issues and subsurface challenges across several assets.
It stated, “June production performance was impacted by operational disruptions, facility integrity issues, and subsurface challenges across several assets. However, performance was partially mitigated by production ramp-up following the completion of the Assa-Rumuekpe and 28-inch TNP Turnaround Maintenance.”
Despite the slight production decline, crude oil and condensate sales surged to 28.23 million barrels in June from 18.95 million barrels in May, representing a 48.97 percent month-on-month increase. The June sales volume was also 6.77 percent higher than the 26.44 million barrels sold in June 2025.
Gas production also improved, rising to 7,841 million standard cubic feet per day from 7,774 million standard cubic feet per day in May, while gas sales recovered to 4,970 million standard cubic feet per day from 4,921 million standard cubic feet per day.
The report highlighted progress on two major gas infrastructure projects. The Obiafu-Obrikom-Oben Gas Pipeline reached 98 percent completion, with final tie-in works ongoing.
It stated, “The Obiafu-Obrikom-Oben (OB3) Gas Pipeline progressed to 98% completion, with final tie-in works ongoing towards achieving First Gas in August 2026.”
Construction on the Ajaokuta-Kaduna-Kano Gas Pipeline also advanced to 94 percent completion. According to the company, “Construction and installation activities on the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline advanced to 94 per cent completion, supporting the target of early gas delivery to Abuja in 2026.”
The NNPC Ltd declared that it would continue implementing measures to sustain production growth despite operational challenges.
It stated, “Focus remains on delivering incremental production across the asset portfolio by improving facility reliability and availability, minimizing Unscheduled Downtime, optimising crude export operations, and accelerating the maturation of production opportunities to sustain Upstream production growth.”
The report also showed that upstream pipeline availability remained at 100 percent during the month, while petrol availability across the NNPC Retail Limited stations stood at 53 percent. It added that all production, sales and financial figures remained provisional and were subject to reconciliation with relevant stakeholders.
The landed cost of imported Premium Motor Spirit (petrol) has climbed above the gantry price offered by the Dangote Petroleum Refinery, reinforcing calls by petroleum marketers for Nigeria to halt fuel importation and prioritise local refining.
The latest Energy Bulletin released by the Major Energies Marketers Association of Nigeria showed that the spot landed cost of imported petrol stood at N1,223.32 per litre as of July 29.
The price is higher than the Dangote refinery’s gantry price of N1,215 per litre, indicating that imported petrol currently costs marketers more than supplies sourced from the 650,000-barrels-per-day Lekki-based refinery.
The MEMAN bulletin also showed that Brent crude averaged $90 per barrel during the review period.
The development comes days after the Independent Petroleum Marketers Association of Nigeria renewed its call for an end to petrol importation, arguing that local refining capacity is sufficient to meet the country’s fuel demand.
IPMAN National Publicity Secretary, Chinedu Ukadike, recently told The PUNCH that there was no justification for continued petrol imports when local refineries, particularly the Dangote refinery, were producing enough to supply the domestic market.
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He argued that importing petrol when locally refined products were available only exerted additional pressure on foreign exchange and undermined investments in domestic refining.
The latest pricing data appears to support the marketers’ position, with the landed cost of imported petrol now exceeding the Dangote refinery’s gantry price.
According to the MEMAN bulletin, Dangote’s coastal price for PMS stood at N1,195 per litre, while its gantry price was N1,215 per litre, inclusive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority charges.
The report also showed that the naira averaged N1,367.03/$ during the review period, while international crude oil prices remained elevated, contributing to higher import costs.
The rise in global crude prices also pushed up the cost of refined petroleum products internationally. The price of diesel traded on the Intercontinental Exchange in Europe averaged $1,246.54 per metric tonne during the review period.
The bulletin further revealed that the spot landed cost of diesel rose to N1,739.96 per litre, compared with a 30-day average of N1,427.00 per litre, while aviation fuel climbed to N1,616.43 per litre against a 30-day average of N1,421.10 per litre.
The pricing trend suggests that locally refined petrol currently offers marketers a cheaper alternative than imports.
Earlier, the Independent Petroleum Marketers Association of Nigeria urged the Federal Government to halt the importation of petrol, arguing that imported petrol has become more expensive than locally refined products and is frustrating efforts to stabilise prices in the downstream sector.
The association said the continued issuance of fuel import licences was worsening price volatility, putting additional pressure on the naira and undermining the competitiveness of domestic refineries, particularly the Dangote Petroleum Refinery.
Speaking with The PUNCH, the National Publicity Secretary of IPMAN, Chinedu Ukadike, said the recent import licences issued by the NMDPRA had failed to achieve their intended objective of moderating domestic fuel prices.
According to him, petrol imported under the new licences is being sold at rates significantly higher than the price of products supplied by the Dangote refinery.
Meanwhile, data from Petroleumprice.ng also showed that some depot owners continued to adjust their ex-depot petrol prices on Thursday amid changing market conditions. AIPEC sold at N1,216 per litre.
Ardova reduced its ex-depot price by N1 to N1,217 per litre, while Ascon and T-Time each cut their prices by N2 to N1,216 per litre. Emadeb, however, increased its price by N1 to N1,218 per litre, while NIPCO retained its price at N1,217 per litre.
Outside Lagos, Aradel raised its ex-depot price by N5 to N1,240 per litre in Port Harcourt. Matrix and Sigmund reduced their prices by N10 each to N1,225 and N1,224 per litre, respectively, while T.S.L. cut its price by N15 to N1,225 per litre.
In Calabar, Hong Petroleum, Mainland and Sobaz each reduced their depot prices by N5 to N1,220 per litre. In Warri, A.Y.M. Shafa increased its price by N3 to N1,233 per litre, while Optima raised its price by N2 to N1,232 per litre. Matrix reduced its price by N3 to N1,230 per litre, while Rainoil cut its price by N2 to N1,240 per litre.
The PUNCH reports that the pump prices of petrol currently hover around N1,250 to N1,300 per litre in Lagos and Ogun states, while they are higher in the North and other distant locations.
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