Economy
Ardova Positions Business for Future Growth, Cuts Borrowing Cost by 69% in 9 months
By Dipo Olowookere
Despite the huge challenges businesses across the globe, especially the oil industry, have faced this year, Ardova Plc has been able to come out stronger.
This has been made possible by the cost-optimisation, superior customer experience, operational efficiency, innovation, and strategic partnerships strategies of the board and management.
In the first nine months of 2020, the energy firm significantly reduced its borrowing cost by 69.6 per cent to N0.7 million from N2.3 billion in the same period of last year.
This was mainly due to the lower interest paid on bank loans and overdrafts in the period under consideration as N299.1 million was paid in contrast to the N1.3 billion paid last year.
Business Post reports that the superior customer experience offered by Ardova resulted in the 3.7 per cent rise in revenue to N128.2 billion from N123.6 billion, with the cost of sales up to N119.2 billion from N115.4 billion, leaving the company with a gross profit of N9.0 billion versus N8.1 billion in the same period of 2019.
In strict compliance with its cost-optimisation policy, Ardova cut is administrative expenses to N5.2 billion from N6.0 billion and this was mainly because of the reduction in board and AGM costs, personnel costs, transport and travel costs, amongst others.
In the first nine months of the year, the distribution expenses reduced to N1.6 billion from N1.7 billion and the operating profit went down to N2.9 billion from N4.2 billion.
Business Post observed that the bottom line of the results was not too palatable in the first nine months of the year, but in the third quarter, the firm bounced back into profitability.
In Q3 of 2019, the company had a net loss of N190.8 million but in Q3 of 2020, it was a net profit of N875.4 million, while the balance sheet closed very strong as the total assets closed at N49.8 billion versus N47.0 billion in FY 2019.
The CEO of Ardova, Mr Olumide Adeosun, in his reaction to the company’s performance in the period under consideration, said it “reflects our continued resolve towards operational excellence despite the challenging operating environment.”
“In the third quarter, we made significant strides in optimizing our core assets, built a resilient balance sheet, and worked extensively in positioning our business for future growth.
“Consequently, this led to increasing top-line revenue, higher margins, and improved operational efficiency.
“Specifically, our business transformation initiatives resulted in a sterling growth of over 2,000 per cent in normalized profit with operating expense ratio and gross margin printing at 5.2 per cent and 7.0 per cent,” he added.
Continuing, he said, “As a forward-thinking organisation, we will continue to explore opportunities in clean energy solutions and appraise the ever-changing downstream regulatory environment to build a socially responsible and formidable integrated downstream energy company.
“These opportunities and reforms, where required, will lead to one-off investments and collaboration with the right partners to deliver sustainable future returns to the business in the short to medium-term.”
“Overall, we are pleased with the progress we have made so far, especially in what has been the most challenging year for businesses across the globe and our industry in particular,” Mr Adeosun, who has transformed the firm since it was acquired from Mr Femi Otedola last year, stated further.
“Nonetheless, we remain committed to continue enhancing shareholder value. The focus over the coming periods will be to consolidate and build on the gains achieved and further refine our processes to ensure we achieve our set objective of superior customer experience, operational efficiency, innovation, and strategic partnerships,” he assured.
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn