Economy
Dunlop Seeks Core Investor to Produce Tyres in Nigeria
By Modupe Gbadeyanka
Managing Director of a leading marketer of automotive tyres, Dunlop Nigeria Tyre & Rubber Plc, Mr Mohammed Jimoh Yinusa, has disclosed that the company was looking for at least a major investor to enable it return to the manufacture of tyres in Nigeria.
In a notice to the Nigerian Stock Exchange (NSE) this week, the firm, which shut down its local production in 2008 due to a government policy, said it intends to return in full force to take its place in the market.
To achieve this goal, Dunlop is marketing its 10-year strategic business plan it developed with the hope of getting a potential investor, who will key into the vision of the company.
“We have developed a 10-year strategic business plan for a return to local tyre manufacture, which is currently being marketed to enable us secure a core lead investor for the project as the company currently does not have a single investor with up to 5 percent shareholding to provide the required leadership, after which we would jointly approach our technical partners.
“We are already in serious discussions with a state government that is setting up an Industrial Park with provision for an automobile cluster and a tyre manufacturing plant, among other possible options,” Mr Yinusa stated.
In 2006, the administration of President Olusegun Obasanjo reduced the import tariff on tyres to 10 percent from 40 percent.
This significantly affected local manufacturers of the product, leading to the exit of Dunlop and Michelin in 2008 and 2006 respectively.
The two leading local makers of tyres could not cope with the huge infrastructural deficiency, especially electric power and Dunlop, which had been operating in the country since 1963, had to go, but continued dialogue with the various successive governments on the need to raise the tariff on imported tyres to encourage local production.
Prior to the 2006 change in policy, Dunlop had just completed a major $50 million expansion into the truck tyre segment a year earlier in 2005 and when it became obvious that the policy reversal was not forthcoming, the firm had to in 2012 take the interim strategic decision to realise all its manufacturing assets to enable it to repay its indebtedness to financial institutions of over N8 billion, which was achieved by the end of 2014.
According to Mr Yinusa, the believe in the future of local tyre manufacture in view of the huge market in the West and Central African sub Regions, with no single tyre plant currently, made the company strategically retained its investment in natural rubber plantations through its 60 percent shareholding in its subsidiary company, Pamol Nigeria Limited, the key minority shareholders being Cross River State government with 21 percent and Delta State government with 15 percent.
Natural rubber constitutes about 50 percent of tyre raw materials, with Carbon Black at about 25 percent, both of which are significantly locally available.
The company’s CEO said, “We have now recorded significant results with the federal government, through the National Automotive Design and Development Council, with the conclusion of a new Automotive Policy which has taken into consideration the key policy negatives of the 2006 reversals.
“This new policy is in the process of being forwarded to the National Assembly for legislation in order to strengthen the future policy stability in this regard.”
“We wish to use this medium to appreciate the understanding exhibited by our shareholders and other stakeholders during this very difficult phase in the history of our company, while we continue our efforts to return our company to profitable operations in order to continue our over 57 years corporate journey,” Mr Yinusa said.
By Aduragbemi Omiyale
The Debt Management Office (DMO) on Monday allotted bonds worth N929.3 billion to investors from the N1.7 trillion bids it received from subscribers.
The exercise, which took place on Monday, July 20, 2026, was oversubscribed by market participants, reflecting the confidence investors have in the government’s ability to redeem the debt instrument on maturity.
On offer for sale for the July auction was N1.2 trillion worth of the FGN bonds, but the DMO allotted below this, despite receiving bids above the offer.
The papers were offered in 10-year, 15-year, and 20-year tenors, at N400 billion each.
For the decade-old note, investors staked N444.47 billion, but the debt office sold N245.73 billion at an 18.34 per cent coupon rate. For the one and a half-decade-old paper, bids valued at N518.00 billion were received by the DMO, with a non-competitive bid of N50.00 billion, with N302.13 billion allotted to investors at 18.40 per cent, and for the two-decade paper, the DMO got competitive bids of N665.19 billion and N381.46 billion was sold to bondholders at 18.35 per cent.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, disclosed that Nigeria’s external reserves had risen to $52.5 billion, enough to finance about nine months of imports.
He disclosed this on Tuesday at the end of the 306th meeting of the Monetary Policy Committee (MPC) held in Abuja, where the Monetary Policy Committee (MPC) retained the benchmark interest rate at 26.50 per cent as well as the standing facilities corridor at +50/-450 basis points around the MPR.
Similarly, the Cash Reserve Requirement (CRR) was maintained at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.
Speaking on FX developments, the central banker said at the $52 billion level, the country’s external reserves were significantly above the internationally recommended threshold of three months of import cover.
On the Naira exchange rate, Mr Cardoso said the foreign exchange market had deepened and was now operating on a transparent willing-buyer, willing-seller basis.
He said the apex bank remained committed to maintaining a liquid and functional foreign exchange market, adding that daily market turnover sometimes exceeded $1 billion.
According to him, the long-term stability of the naira would depend on key economic fundamentals, including increased oil exports, foreign direct investment, and improved domestic productivity to reduce dependence on imports.
He also added that the MPC welcomed the federal government’s renewed commitment to stronger policy coordination, particularly collaboration between fiscal and monetary authorities, which he said had helped reduce the impact of the Middle East crisis on the Nigerian economy.
Mr Cardoso said members of the committee also commended efforts to improve crude oil production and urged relevant agencies to intensify reforms in other sectors, including solid minerals, to boost government revenue.
On the regulatory forbearance granted to banks during the COVID-19 period, he reiterated that this had been discontinued because it had served its purpose.
According to him, the policy had “outlived its time” and was no longer necessary in assessing the health of the banking sector.
“Forbearance, we felt, had outlived its time. Many of you will recall this is something that came as a result of COVID. And now we are in 2026; we did not see the reason why that should continue to form part of the analysis of the banking system,” he said.
Mr Cardoso explained that banks had begun recalibrating their portfolios following the end of the policy, leading to a temporary reduction in outstanding risk assets.
He, however, assured that the development was part of a transition towards a stronger and more sustainable credit environment.
“It reflects a transition to a more sustainable and better quality credit environment, which is what we all want. We don’t want unanticipated shocks that come in a boom-and-bust fashion,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its recent positive run by 1.17 per cent on Tuesday, July 21, triggered by appreciation seen in four bellwethers.
Leading the pack was FrieslandCampina Wamco Nigeria Plc, which added N12.00 to its value to close at N153.15 per share compared with the previous day’s N141.15 per share. NASD Plc appreciated by N1.90 to N36.00 per unit from N34.10 per unit, Food Concepts Plc improved by 23 Kobo to N2.48 per share from N2.25 per share, and Afriland Properties Plc grew by a marginal 1 Kobo to N15.01 per unit from N15.00 per unit.
As a result, the market capitalisation of the bourse increased by N30.40 billion to N2.637 trillion from Monday’s N2.606 trillion, and the NASD Security Index (NSI) gained 50.70 points to finish at 4,393.97 points, in contrast to the 4,343.27 points it ended a day earlier.
The unlisted securities exchange recorded a price loser yesterday, and it was Geo-Fluids Plc, which shed 1 Kobo to settle at N2.30 per share versus N2.31 per share.
During the trading day, the volume of securities traded by market participants on Tuesday dropped 99.4 per cent to 322,147 units from the previous day’s 52.6 million units, the value of securities dipped by 89.8 per cent to N19.4 million from the preceding session’s N191.2 million, and the number of deals contracted by 3.6 per cent to 27 deals from 28 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis, with 3.4 billion units traded for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 75.4 million units exchanged for N5.3 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
