Economy
Naira Trades N485/$1 at Parallel Market as CBN Interventions Lessens Pressure
By Adedapo Adesanya
The Naira ended the midweek session stronger against the US Dollar at the parallel market as it gained N5 to close at N485/$1 compared to the previous rate of N490/$1.
At the same segment, the domestic currency also appreciated by N5 against the Pound to wrap the day at N635/£1 as against N645/£1 of Tuesday but lost ground against the Euro as the session by N5 to close at N580/€1 versus N575/€1 it was traded a day earlier.
Recall that the Naira had dropped to a low of N500/$1 as regulated channels could not clear their backlog of demands. But through the interventions of the Central Bank of Nigeria (CBN) in recent days to these sources, the pressure has been eased.
At one of such segments, the Investors & Exporters (I&E) window, data gathered from the FMDQ Securities Exchange showed that the exchange rate of the Naira/Dollar further depreciated by 0.25 per cent or N1 to N395/$1 from the previous rate of N394/$1.
At the same market segment, it was observed that the demand for forex decreased as market participants made transactions worth $57.97 million compared with the $168.57 million transacted at the preceding session, indicating a drop by 65.6 per cent or $110.60 million.
Meanwhile, at the interbank window of the market, the official exchange rate of the Naira/Dollar remained at N379/$1, while at the Bureaux De Change (BDC) segment, according to data from the Association of Bureaux De Change Operators of Nigeria (ABCON), the Naira traded flat against the Dollar at N392/$1.
It was a mixed outcome at the cryptocurrency market as the value of the digital monies tracked by Business Post on Quidax went into different directions.
The Bitcoin (BTC) lost 0.3 per cent on Wednesday to trade at N9,000,999.99, the Dash (DASH) lost 1.3 per cent to sell at N51,000.02, the US Dollar Tether (USDT) went down by 1.1 per cent to sell for 484.58, while the Ripple (RPX) depreciated by 2.8 per cent to trade at N300.01.
However, the Ethereum (ETH) gained 1.6 per cent yesterday to trade at N292,500, the Litecoin moved up by 0.8 per cent to sell for N42,353.02, while Tron (TRX) went up by 0.7 per cent to trade at N15.31.
By Aduragbemi Omiyale
Those who purchased the N40 billion bond issued by Geregu Power Plc in 2022 but did not receive payments last month as expected have reportedly now been paid by the energy company.
Geregu Power, listed on the Nigerian Exchange (NGX) Limited, was in the news recently over the repayment default on July 28, 2026, triggering panic in the capital market.
Last week, the organisation admitted the issues caused by this default, but said, “Discussions and engagements are ongoing, and the company will continue to act in good faith in fulfilling its responsibilities.”
It further disclosed that “relevant stakeholders and advisers [are being actively engaged] regarding the resolution of the various challenges and is committed to achieving an orderly and mutually beneficial outcome.”
The latest information indicated that N6.03 billion owed investors under the firm’s N40.09 billion Series 1 Senior Unsecured Bond has been cleared.
This is expected to bring relief to investors, who may have feared the worst after the entity failed to meet its debt obligations when due.
However, on the FMDQ Securities Exchange, the status of the debt instrument remains as “credit default in the 8th coupon payment and 4th bullet principal repayment.”
As of the time of filing this report, Geregu Power has yet to confirm the clearing of the N6 billion debt.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited extended its losing streak to seven consecutive sessions on Wednesday after it closed lower by 0.36 per cent.
The loss suffered yesterday was inflicted by the energy space, which significantly shed 4.63 per cent at the close of business. This was because of profit-taking in Aradel Holdings.
Further, the insurance segment went down by 0.88 per cent due to sell-offs, especially after news of the revocation of the operating licence of Universal Insurance Plc by the National Insurance Commission (NAICOM) after it missed the new recapitalisation requirements.
The consumer goods index depreciated at midweek by 0.31 per cent, while the banking space recovered 0.54 per cent, with the industrial goods segment closing flat.
When market activities ended for the session, the All-Share Index (ASI) was down by 860.76 points to 240,750.47 points from 241,611.23 points, and the market capitalisation gave up N556 billion to settle at N155.417 trillion compared with the previous day’s N155.973 trillion.
International Energy Insurance shed 10.00 per cent to quote at N4.77, Aradel lost 9.99 per cent to trade at N1,374.20, Universal Insurance slumped by 9.41 per cent to 77 Kobo, Red Star Express depreciated by 9.26 per cent to N14.70, and Royal Express crashed by 8.62 per cent to N1.06.
On the flip side, Haldane McCall gained 10.00 per cent to end at N3.52, Coronation Insurance improved by 8.44 per cent to N2.44, UAC Nigeria jumped by 6.56 per cent to N177.85, AVA Capital grew by 6.29 per cent to N7.60, and Caverton rose by 5.32 per cent to N4.95.
The most active equity during the session was Fortis Global Insurance, with a turnover of 610.7 million units worth N1.2 billion. FCMB traded 60.9 million units worth N722.9 million, Fidelity Bank transacted 57.0 million units valued at N1.2 billion, Consolidated Hallmark sold 46.3 million units worth N312.7 million, and Royal Exchange exchanged 43.5 million units valued at N45.8 million.
In all, a total of 1.2 billion shares valued at N37.8 billion exchanged hands in 34,546 deals on Wednesday compared with the 429.8 million shares worth N27.5 billion traded in 35,683 deals on Tuesday. This indicated a spike in the trading volume and value by 179.20 per cent and 37.46 per cent, respectively, while the number of deals declined by 3.19 per cent.
By Aduragbemi Omiyale
The operating licence of Universal Insurance Plc has been withdrawn by the National Insurance Commission (NAICOM).
This action was taken by the regulator over the failure of the underwriting firm, which is listed on the Nigerian Exchange (NGX) Limited, to meet the new recapitalisation requirements on or before July 31, 2026.
NAICOM said it revoked the company’s licence based on its powers stipulated in the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The regulator has appointed a Receiver/Provisional Liquidator for the insurance company, and he is Mr Ogbonna Chukwumerije, a partner at Pinheiro LP.
He will immediately trace, recover, secure and take possession of Universal Insurance’s assets, collate its liabilities and facilitate their settlement in accordance with the provisions of NIIRA 2025.
He is also required to liaise with NAICOM and submit periodic reports on the progress of the receivership and liquidation process.
Already, Mr Chukwumerije has informed banks, financial institutions, policyholders, creditors, debtors, customers and members of the public that Universal Insurance had entered receivership, advising parties dealing with the company’s funds, assets, records, policies, claims and liabilities to verify the authority of anyone claiming to act on its behalf.
Banks and other financial institutions were specifically warned against honouring withdrawals, transfers, payment mandates or other instructions issued on behalf of Universal Insurance unless authorised by the receiver.
However, Universal Insurance has taken steps to appeal NAICOM’s decision. The organisation was among six insurers that failed to meet the recapitalisation deadline.
