Kano traders seek improved power supply

Kano Electricity Distribution Plc.

The Dawanau Grains Market Association in Kano State has called for stronger collaboration with the Kano Electricity Distribution Company to improve power supply to the market.

A statement on Thursday by KEDCO’s Head of Corporate Communications, Sani Bala, said the association’s president, Muttaka Isa, appealed when he led a delegation on a courtesy visit to the company’s Managing Director, Dr Abubakar Jimeta, on Wednesday.

According to the statement, the visit was aimed at enhancing electricity supply for the operational efficiency of the Dawanau Grains Market, described as one of West Africa’s largest grain hubs.

Isa said the partnership would ensure all stakeholders benefit from ongoing and future projects.

He said, “We sincerely appreciate the efforts of KEDCO’s core investor, Future Energies Africa, its board of directors, and management in supporting the market’s development.

Reliable electricity is crucial to our operations, and we believe that with closer collaboration, we can unlock even more value for our members and the region’s economy.

“We wish to collaborate more with KEDCO, especially in expanding energy access within and around the market, and work out modalities to ensure that energy users in the market use it in an authorised manner.”

In his response, Jimeta reaffirmed KEDCO’s commitment to working closely with key economic clusters such as the Dawanau Market, acknowledging their strategic role in the region’s agro-economic landscape.

He also pledged to explore innovative solutions to meet the market’s energy needs.

TAJBank meets new recapitalisation threshold – CEO

TAJBank LimitedThe non-interest bank, TAJBank, has met the new capital thresholds for its operations set by the Central Bank of Nigeria.

According to a statement on Thursday, this was confirmed by the Managing Director/Chief Executive Officer of the bank, Mr. Hamid Joda.

In March 2024, the CBN directed commercial banks with international authorisation to increase their capital base to N500bn and national banks to N200bn, while those with regional authorisation are expected to achieve a N50bn capital floor.

Similarly, non-interest banks with national and regional authorisations will need to increase their capital to N20bn and N10bn, respectively. CBN gave the banks a deadline of March 2026

Speaking on the sidelines of an investment summit in Abuja, Joda revealed that with compliance with the required minimum capital base as directed by the CBN, TAJBank has joined the ranks of a few banks that had already met or exceeded the CBN’s revised capital thresholds scheduled for enforcement from March 2026 by the apex bank.

“I am happy to report that through the leadership of our bank’s board, which is led by an industry doyen, Tanko Gwamna, and the support of our valued shareholders and investors, TAJBank has fulfilled the mandatory recapitalisation requirement and is now fully prepared for a more customer-friendly, innovative banking services delivery to our growing customers nationwide.

“Let me also use this opportunity to commend the CBN Governor, Mr. Olayemi Cardoso, and the management of the apex bank for the recapitalisation initiative, which, by all assessment standards, will reposition Nigerian banks for competitiveness in the rapidly changing global banking space. I want to assure all our shareholders, new investors and customers that TAJBank will continue to prioritise their interests in our operations in the management’s sustained drive to add value to every kobo invested in the bank.”

He added that the bank would be increasing its spend on technological assets, solutions and human resources “to surpass the customers, shareholders and other investors’ expectations through real-time delivery of world-class and Shari’ah-compliant financial solutions to meet their needs.”

Meanwhile, at the end of the 302nd Monetary Policy Committee meeting of the CBN, Cardoso had revealed 14 banks had met the requirements.

He said, “In the financial sector, the MPC noted the continued resilience of the banking system, with most financial soundness indicators remaining within projected benchmarks.

Manufacturing sector growth stalls amid port bottlenecks

manufacturing-sector

The slow growth in Nigeria’s manufacturing sector has persisted, with the sector’s decline extending into the second quarter of 2025 over recent inefficient port operations.

Figures from the National Bureau of Statistics show the manufacturing sector’s real contribution to Gross Domestic Product in Q2 2025 fell 7.81 per cent, down from 9.62 per cent in Q1 2025 and 8.01 per cent in Q2 2024.

The data revealed that the sector grew 1.60 per cent year-on-year, higher than the same quarter of 2024 but 0.47 percentage points and 0.09 percentage points lower than the preceding quarter on an annual and quarterly basis, respectively. Quarter-on-quarter, the sector thinned 15.81 per cent.

The statistics also showed a slump in nominal GDP performance. The sector grew 4.51 per cent year-on-year, a decline of 3.14 percentage points compared to the same period in 2024 and a sharp drop of 37.89 percentage points from the 42.40 per cent recorded in the first quarter of 2025.

On a quarter-on-quarter basis, growth was down 31.72 per cent, with manufacturing contributing only 6.87 per cent to nominal GDP, lower than 7.84 per cent in 2024 and 10.78 per cent in Q1 2025.

Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said manufacturers’ productivity had weakened, worsened by the backlog of uncleared inputs at the ports.

He said, “Domestic manufacturing is still struggling, and more needs to be done by the government to mitigate the decline. I also believe that we should ease the process. We should ease the situation at the port. For the past few weeks, we’ve been encountering challenges with the buildup. People are not able to clear their goods.”

The latest slowdown comes as the sector battles a widening trade deficit. According to the NBS, Nigeria imported N15.39tn worth of manufactured goods in the first half of 2025, compared to exports of N1.09tn, leaving a deficit of N14.3tn.

Although manufactured exports rebounded in the second quarter, rising to N803.81bn, representing a 173 per cent increase from the first quarter and a 67.17 per cent growth year-on-year, stakeholders insist that the pace of recovery remains too weak to offset imports.

The PUNCH reported that Ajayi-Kadir described the deficit as “a confirmation of what we have always said, that domestic manufacturing is still struggling, and that more needs to be done by the government to mitigate this spread that has continued to widen.”

Also, the President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, linked the deficit to depleted local capacity. He said, “The N14tn deficit in manufacturing in H1 2025 is due to an imbalance in raw materials as manufacturers look outside because there are insufficient local raw materials.”

Stakeholders have renewed calls on the Federal Government to fast-track the implementation of the Nigeria First policy, which mandates ministries, departments, and agencies to prioritise locally manufactured goods in procurement. They also urged manufacturers to leverage state-level power generation to cushion high energy costs, which continue to weigh on production.

The manufacturing sector, which comprises 13 activities ranging from food and beverages to motor vehicles and assembly, remains a key driver of Nigeria’s industrialisation ambitions. But with declining contributions to GDP and a mounting trade deficit, stakeholders warn that the slowdown could be prolonged unless urgent reforms are implemented.

Four banks pay N135bn dividends amid hurdles

CBN-VUILDING-700×375Four of Nigeria’s leading financial institutions—United Bank for Africa, Zenith Bank, Guaranty Trust Holding Company, and Stanbic IBTC Holdings—have rewarded their shareholders with interim dividends amounting to about N135.49bn for the half-year ended June 30, 2025.

The dividend payment, detailed in their financial reports filed with the Nigerian Exchange Limited, provided relief to investors who had expressed concerns that lenders might hold back on payouts amid regulatory pressures and macroeconomic uncertainties.

Stanbic IBTC Holdings emerged as the highest interim dividend payer, declaring N2.50 per ordinary share of 50 kobo each. This translates to a total interim dividend of N39.75bn, subject to appropriate withholding tax and regulatory approvals.

The bank stated that shareholders whose names appear in its register of members as of Monday, October 6, 2025, would benefit from the payout. Analysts noted that Stanbic’s decision underlined its strong earnings capacity and commitment to shareholder value despite a challenging operating environment.

Zenith Bank, the country’s largest lender by market capitalisation, followed closely, approving an interim dividend of N1.25 per share across its 41,069,830,001 issued shares. This amounts to about N51.34bn.

In its interim report, Zenith explained that the dividend, subject to ratification by shareholders, would be paid from its retained earnings. The bank emphasised that the move reflected its robust financial position and resilience in navigating Nigeria’s evolving banking landscape.

Guaranty Trust Holding Company also announced a significant payout, rewarding shareholders with N1 per share, amounting to N34.14bn for the half-year period. GTCO’s decision reassured investors who had been worried that regulatory tightening might impact dividend payments across the sector.

Meanwhile, the board of United Bank for Africa proposed an interim dividend of N0.25 per share, translating into a dividend yield of 1.4 per cent and a payout ratio of 7.83 per cent. Though comparatively modest, UBA’s payout reinforced its track record of balancing profitability, regional expansion, and shareholder reward.

Collectively, these four institutions provided their investors with much-needed returns, boosting confidence in the financial sector. While these banks brightened investor sentiment, some financial institutions have struggled to meet regulatory deadlines for filing their half-year reports.

Access Holdings recently secured approval from the NGX to extend the publication of its half-year report from September 29 to October 22, 2025. The lender explained that the delay was to allow sufficient time to obtain clearance from the Central Bank of Nigeria.

Similarly, Fidelity Bank attributed its delay in releasing results to ongoing reviews of its audited financial statements. The bank assured investors that once the review process was completed and the CBN granted approval, the results would be published in line with NGX rules and other relevant regulations.

Other lenders, including First HoldCo, Sterling Financial Holding Company, Wema Bank, and FCMB Group, have already released their half-year results. However, none of them declared interim dividends, citing regulatory directives and capital management considerations.

The mixed pattern of dividend announcements across the banking sector follows a recent circular by the Central Bank of Nigeria. The apex bank ordered banks operating under regulatory forbearance to suspend dividend payments, defer executive bonuses, and halt offshore investments.

The directive, signed by the CBN’s Director of Banking Supervision, Olubukola Akinwunmi, was part of ongoing reforms to strengthen the resilience and stability of the Nigerian banking sector.

The CBN said it had reviewed the capital adequacy and provisioning levels of banks under regulatory forbearance—particularly those with significant credit exposures and breaches of single obligor limits—before issuing the directive.

Affected banks have since assured their shareholders that they are working to resolve exposures that necessitated the forbearance and would soon return to normal dividend payments. According to investment bank Renaissance Capital Africa, six Nigerian banks collectively hold about $3.52bn in forbearance loans.

However, optimism grew following the most recent Monetary Policy Committee meeting, where the CBN disclosed that the forbearance measures had been successfully wound down.

“The committee further noted the successful termination of forbearance measures and waivers on single obligors, which have helped to promote transparency, risk management, and long-term financial stability in the banking system,” the MPC said in its communique.

The MPC reassured investors and the public that the impact of the removal of forbearance would be temporary and would not compromise the soundness and stability of the banking system.

Analysts believe that the N135.49bn interim dividend payments by UBA, Zenith Bank, GTCO, and Stanbic IBTC will help restore investor confidence, particularly at a time when many shareholders had resigned themselves to reduced or suspended payouts.

The move is also seen as an indication of the resilience of Nigeria’s top-tier banks and their ability to navigate regulatory and macroeconomic headwinds while still rewarding investors.

With regulatory uncertainties gradually easing and forbearance measures lifted, industry stakeholders expect more banks to resume dividend payouts in the coming quarters, further strengthening investor confidence in the Nigerian banking sector.

Equities market rebounds as investors drive N279bn gain

Nigerian Exchange LimitedThe Nigerian Exchange reversed previous losses on Thursday, closing the trading session with a gain of N279bn in market capitalisation as investors returned to the equities market.

At the close of trading, the market capitalisation of listed equities rose to N89.4tn from the N89.1tn recorded in the previous session. The Index advanced by 432.94 points, or 0.31 per cent, to close at 141,149.04 points.

The performance lifted the market to a positive close after days of mixed sentiment, with analysts attributing the rebound to renewed bargain-hunting in large- and mid-cap stocks, particularly in the banking and oil and gas sectors.

Market data showed that a total of 781.7m shares valued at N19.5bn were traded in 20,382 deals, reflecting a 77 per cent improvement in volume, a 15 per cent increase in turnover, but a six per cent decline in the number of deals compared with the previous day’s trading.

In terms of price movement, MeCure Industries led the gainers’ chart with a 9.89 per cent appreciation to close at N26.10 per share, followed by Oando, which rose 9.5 per cent to end at N49.00 per share. McNichols gained 9.31 per cent to close at N3.64, while Chams rose 9.24 per cent to finish at N3.43 per share.

On the losers’ side, Eterna recorded the highest decline, shedding 10 per cent to close at N27.90 per share. Sovereign Trust Insurance dipped 4.84 per cent to N2.95, The Initiates lost 3.84 per cent to N12.02, while Caverton Offshore Support Group dropped 3.76 per cent to N6.40 per share.

Consolidated Hallmark Holdings emerged as the most actively traded stock with 333.2m units worth N1.25bn, followed by Sterling Bank, which exchanged 104.9m shares valued at N771.8m. Zenith Bank recorded 45.5m shares worth N3.14bn, while Fidelity Bank traded 26.1m units valued at N535.3m.

In terms of value, MTN Nigeria led with N5.01bn in transactions from 12.1m shares, followed by Zenith Bank at N3.14bn, Presco with N2.44bn, Consolidated Hallmark Holdings with N1.25bn, and UBA with N924.7m.

Sectoral performance was largely positive. The Banking Index rose 1.02 per cent, while the NGX Oil and Gas Index gained 0.74 per cent. The Consumer Goods Index appreciated 0.31 per cent, and the Pension Index advanced 0.37 per cent.

Overall, the market has posted a year-to-date return of 37.14 per cent despite recording a one-week loss of 0.78 per cent.

Analysts noted that the renewed buying interest suggests investors are positioning ahead of expected third-quarter earnings reports while also taking advantage of price corrections in key stocks.

Otedola, Calvados acquire 64.8m First HoldCo shares worth N2bn

Femi Otedola

First HoldCo Plc has notified the Nigerian Exchange Limited of insider dealings involving its Chairman, Olufemi Otedola, and his affiliated company, Calvados Global Services Limited, who jointly acquired 64.8m shares of the group valued at over N2bn.

In a regulatory filing dated September 24, the company disclosed that Otedola directly purchased 39,313,379 ordinary shares of First HoldCo at N31 per share. In addition, Calvados Global Services Limited, a company related to the billionaire investor, bought 25,565,289 ordinary shares at the same price.

The combined transaction amounted to 64,878,668 shares, translating to an investment worth about N2.01bn at the stated unit price.

According to the filing, the deals were executed on September 23, 2025, on the floor of the Nigerian Exchange in Lagos.

The disclosure, signed by the company’s board, emphasised compliance with regulatory requirements on insider dealings and transparency in shareholding transactions.

With this acquisition, Otedola, who already holds a significant stake in First HoldCo, further consolidates his position as a major shareholder in the financial services group.

Last year, The PUNCH reported that the Chairman of FBNHoldings, Otedola, has increased his stake in the business, as he acquired 2,029,376,358 units of shares valued at N18.95bn on Thursday.

Otedola acquired 316,506,776 units of FBNHoldings shares directly at N21.91 per unit. This brings the deal to about N6.93bn.

Also, in July, shares of First HoldCo climbed to a 52-week high of N36.45 per unit last week, according to data from the Nigerian Exchange Limited. This follows significant share divestments by firms linked to businessman Oba Otudeko and a former FirstBank chairman, Tunde Hassan-Odukale, in off-market transactions.