Economy
Trapped Foreign Investors Invest in Nigerian Stocks, OMO Bills
By Dipo Olowookere
Some foreign portfolio investors, who sold off their Naira investments before and shortly after the lockdown in Nigeria in high hopes of repatriating their funds, but got trapped, are already re-investing their money in local investment tools, an investigation by Business Post has revealed.
In March 2020, the Central Bank of Nigeria (CBN) practically stopped the sale of foreign exchange (forex) to authorised traders.
Since the lockdown in Lagos, Abuja and Ogun State, Dollar sales at the Investors and Exporters (I&E) window have reduced drastically.
The I&E segment of the forex platform was created by the apex bank about three years ago for the exchange of Naira to Dollar by FPIs and business corporations.
Before the movement cessation on March 30, the average daily trading value at the investors’ segment was within $400 million to $500 million, but since the lockdown, it has broadly dropped to $30 million to $40 million. This has largely eased the pressure on the domestic currency and there have been huge drop in demand for forex at the market as well as supply.
Business Post reports that on Friday, the total value of transactions at the I&E segment was $62.45 million, higher than the $25.43 million recorded on Thursday.
Nigeria has been battling with Dollar inflows due to fall in the prices of crude oil, which contributes over 80 percent to its foreign earnings, causing the nation’s external reserves, where the CBN takes forex to defend the Naira, to deplete.
Business Post observed that some FPIs, who sold their Naira investments last month, have been unable to repatriate their proceeds weeks after. This has forced some of them to reconsider putting the funds back into the capital market.
In the past two to three weeks, the Nigerian equity market has suddenly experienced surge in the trading volume and value. It has also regained its strength despite the threats posed by the coronavirus disease, which has plunged the global economy into a recession, according to the International Monetary Fund (IMF).
Last week, the stock market appreciated by 7.19 percent week-on-week. This was after it moved up by 1.37 percent the previous week. This week, the market receded by 1.41 percent as a result of profit taking, though there was a 0.57 percent growth recorded yesterday (Friday).
Investigations by Business Post showed that non-resident investors, who could not get their funds out of the country, chose to turnover the money and wait until the restrictions are lifted and Dollar supply to the I&E is resumed by the CBN.
At the treasury bills market, in the last two weeks, there have been upsurge in transactions at the Open Market Operations (OMO).
Last year, the CBN restricted local retail and institutional investors from buying its OMO bills and only allowed FPIs to invest in the liquidity management tool.
Since the lockdown commenced late last month, the OMO auctions had been snubbed by offshore investors, but when they could not repatriate their funds, they began to look the way of the exercise about two weeks ago.
At the last exercise held on Thursday, OMO bills worth N100 billion were auctioned across 89-day, 180-day and 341-day tenor, but the bank received subscriptions worth N323.8 billion from investors.
According to the analysis, N10 billion worth of the short-dated bill were offered for sale, another N10 billion worth of 180-day instrument were auctioned, while N80 billion worth of 341-day maturity were offered.
But when the bids were analysed, investors staked N64.10 billion on the short-dated bill, N33.50 billion was staked on the mid-dated bill, while N226.16 billion was staked on the long-dated bill.
A day earlier, the Debt Management Office (DMO) auctioned local bonds worth N60 billion to investors, but when the bids were analysed, the papers were oversubscribed by 459 percent, with the debt office getting subscriptions valued at N275.67 billion.
Next Monday, President Muhammadu Buhari has a huge task to carry out. Nigerians would be expecting to hear his verdict on the present lockdown, which is currently in its fourth week.
Nigeria has continued to witness rise in the cases of COVID-19. As at Friday, a total of 1,095 cases of the virus have been confirmed in the country.
The Nigeria Centre for Disease Control (NCDC) last night announced 114 new cases, with 80 in Lagos, 21 in Gombe State, 5 in Abuja, 2 each in Zamfara and Edo States, and one each in Ogun, Oyo, Kaduna and Sokoto States.
Lagos has the highest number of cases, 657 cases, followed by Abuja with 138 cases.
If the lockdown is extended by another two weeks or one, the capital market may continue to benefit from it because it means more liquidity at the market, which is enough to keep the positive momentum at the stock market on.
However, most Nigerians, who are daily income earners will continue to groan as some of them claimed they have not received palliatives from government to encourage them to stay home any longer.
By Adedapo Adesanya
The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has said ongoing reforms and strategic policy implementation in Nigeria’s petroleum sector are driving significant investments and strengthening the country’s position as a leading energy destination in Africa.
Mr Lokpobiri stated this at the Management Retreat of the Ministry of Petroleum Resources, where he stressed the need for improved institutional performance and accountability to sustain growth in the sector.
According to the Minister, the federal government has deliberately pursued far-reaching reforms aimed at creating a stable and investor-friendly environment capable of attracting local and foreign capital into the oil and gas industry.
“From far-reaching institutional reforms to the effective implementation of strategic policies, we have remained committed to carrying all stakeholders along, fostering a conducive environment for investments to flourish,” Mr Lokpobiri said.
“As a result, our petroleum sector has witnessed significant investments that continue to strengthen Nigeria’s position as a leading energy destination.”
The Minister noted that the gains recorded in the sector were the product of collective efforts across the Ministry and its agencies, commending staff for their dedication and professionalism.
“The Management Retreat of the Ministry of Petroleum Resources provided an important platform to reiterate that these accomplishments would not have been possible without the collective dedication, professionalism and teamwork of every staff member across the Ministry and its agencies,” he stated.
Mr Lokpobiri said the retreat, themed Driving Institutional Performance and Accountability in the Petroleum Sector for Sustainable National Development, underscored the importance of continuous improvement in service delivery and operational efficiency.
Drawing lessons from the theme, he urged officials of the Ministry and regulatory agencies to intensify efforts toward enhancing institutional effectiveness and strengthening governance frameworks.
“I encouraged that we must redouble our efforts, continuously improve the quality of our services, and strengthen institutional performance,” he said.
The Minister further emphasised the continued relevance of fossil fuels in the global energy mix, stressing that Nigeria must leverage its hydrocarbon resources to drive economic growth while ensuring citizens benefit from ongoing reforms.
“With fossil fuel as the dominant source of energy, we must ensure that Nigerians experience the benefits of our progress and that Nigeria remains the preferred investment destination in Africa and a globally competitive hub for energy investments,” Mr Lokpobiri added.
By Aduragbemi Omiyale
The N3.2 billion rights issue of Universal Insurance Plc has been extended by almost two weeks after securing regulatory approval.
The exercise was earlier scheduled to close on June 10, 2026, but will now close on Monday, June 22, 2026.
The extension was granted by the Securities and Exchange Commission (SEC) after a request from the underwriting organisation.
In the rights issue, Universal Insurance is offering to shareholders 2,666,666,667 ordinary shares of 50 Kobo each at N1.20 per share on the basis of one new ordinary share for every existing six ordinary shares held as of the close of business on Monday, March 30, 2026.
Subscription for the acquisition of the company’s extra shares opened on Wednesday, May 13, 2026.
The extension gives investors more time to increase their stake in the insurance firm, which intends to use proceeds from the exercise to boost its capital base, as mandated by the National Insurance Commission (NAICOM).
Insurance companies operating in Nigeria have been given till July 31, 2026, to shore up their capital base or pack up. Operators can also explore a merger if they wish.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited opened its doors to market participants in four days last week as a result of a public holiday observed on Friday, June 12, for 2026 Democracy Day in the country.
In the week, investors bought and sold 4.964 billion shares worth N207.521 billion in 235,966 deals, as against the 3.966 billion shares valued at N175.659 billion that exchanged hands in 343,587 deals a week earlier.
Analysis showed that the financial services industry led the activity chart with 4.116 billion shares valued at N84.607 billion in 96,165 deals, contributing 82.92 per cent and 40.77 per cent to the total trading volume and value, respectively.
The services sector transacted 232.479 million shares worth N4.955 billion in 17,614 deals, while the industrial goods segment exchanged 144.988 million shares worth N39.077 billion in 24,775 deals.
Sterling Holdings, FCMB, and Access Holdings were the most traded stocks with 2.883 billion units sold for N36.188 billion in 15,533 deals, accounting for 58.09 per cent and 17.44 per cent of the total trading volume and value, respectively.
A total of 40 equities appreciated in the week versus 23 equities in the previous week, 53 equities depreciated versus 65 equities a week earlier, and 53 equities remained unchanged versus 58 equities in the preceding week.
ABC Transport was the best-performing equity for the week after it gained 25.60 per cent to trade at N7.80, Consolidated Hallmark appreciated by 23.13 per cent to N8.25, Abbey Mortgage Bank rose by 21.93 per cent to N11.40, Infinity Trust Mortgage Bank grew by 20.32 per cent to N11.25, and Austin Laz soared by 15.16 per cent to N4.33.
The worst-performing equity last week was Fidson Healthcare because of its 25.86 per cent loss, closing at N101.20. Neimeth declined by 19.14 per cent to N8.55, Union Homes REIT shed 17.36 per cent to close at N70.00, SUNU Assurances slipped by 11.38 per cent to N3.97, and Unilever Nigeria dropped 10.26 per cent to trade at N140.00.
As for the index movement, the All-Share Index (ASI) and the market capitalisation chalked up 0.88 per cent each to settle at 244,738.74 points and N156.970 trillion, respectively.
Similarly, all other indices finished higher apart from the pension, AFR Bank Value, MERI Growth, MERI Value, consumer goods, Lotus II, industrial goods, sovereign bond and commodity indices, which fell by 0.03 per cent, 1.20 per cent, 0.21 per cent, 1.61 per cent, 0.54 per cent, 0.51 per cent, 1.00 per cent, 2.04 per cent and 0.34 per cent, respectively.
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