Economy
Akeredolu-Ale Says ISB Will Improve Nigeria’s FX Earnings
By Aduragbemi Omiyale
The Managing Director of the Lagos Commodities and Futures Exchange (LCFE), Mr Akin Akeredolu-Ale, has described the Investments and Securities Bill (ISB) passed by the House of Representatives last year as a game changer, pointing out that it would help Nigeria improve its foreign exchange (forex) earnings.
Nigeria’s FX earnings from crude oil sales have dwindled in recent times due to low production caused by theft, putting pressure on the Naira in the currency market.
But the LCFE chief believes the new bill would change the narrative, as it would enable the commodities trading ecosystem to thrive, thereby diversifying the nation’s economy.
He stated that Nigeria is a commodities country as a better part of the gross domestic product (GDP) by way of production comes from the commodities ecosystem and urged the Senate to ensure swift concurrence on the Bill.
“We need that concurrence by the Senate as quickly as possible. I am very happy that the NASS has taken it upon themselves, as well as the SEC, to push this bill. That bill is a game changer for the commodities ecosystem and also a game changer for Nigeria as a commodities country.
“For now, a lot of commodities being traded are still in the informal sector, the bill would create structure, and all the leakages from taxation and revenue will be taken care of by this bill.
“The major thing about the commodities ecosystem is the fact that we are looking inwards in Nigeria now.
“A lot of the impact of the policies that the Central Bank of Nigeria (CBN) had done last year by way of supporting the agriculture space is paying off now in the maize, wheat and rice space, among others.
“For us at the LFCE, we have also looked at the part of commodities that has to do with solid minerals, which is the gold space.
“In Nigeria, we have over 58 different solid minerals that are sought for all over the world, and we have not touched platinum or lithium, which is the major component for batteries and electric cars.
“These are the kinds of commodities that, by the time the bill is passed, we would be able to have a proper structure and attract foreign investors.
“What do these foreign investors look out for? The foreign investors look at regulatory framework, legal framework and a proper enabling environment to want to participate in the market,” he commented.
Mr Akeredolu-Ale disclosed that in a bid to deepen the commodities trading ecosystem in Nigeria further, the Securities and Exchange Commission (SEC) had approved 13 products for trading on the LCFE.
He stated that the exchange has the capacity to trade electronic receipts of oil and gas, agriculture, solid minerals, derivatives and currencies, adding that the exchange has also put in place the necessary infrastructure to trade in derivatives as hedging instruments for investors.
“On July 28, 2022, we launched the Gold Coin. The good thing about the Gold coin is that the gold that was used in its preparation was sourced from Nigeria, and a lot of it came from Ilesha. It is being traded, and people have realised that this is a very good hedging instrument; this goes to show the capacity of what we can do in Nigeria if this bill is passed,” he remarked.
“The goal of LCFE is to play a pivotal role in growing the nation’s GDP into double digits. In Africa, the commodities ecosystem is the largest employer of labour. It provides a platform to deploy resources into the fungible assets that have been de-risked. We bring transparency through the operations of commodities exchange through our structures and two-way quote,” he added.
The LCFE chief, therefore, restated the compelling need for the federal government to unlock the potentials of the Nigerian commodity ecosystem through the concurrence of the ISB by the Senate, stating that, at the minimum, it will enhance the competitiveness of commodities exchanges in Nigeria.
By Adedapo Adesanya
Dangote Petroleum Refinery imported a total of $3.74 billion) worth of crude oil in 2025, to make up for shortfalls that threatened the plant’s 650,000-barrel-a-day operational capacity.
The data disclosed in the Central Bank of Nigeria’s Balance of Payments report noted that “Crude oil imports of $3.74 billion by Dangote Refinery” contributed to movements in the country’s current account position, as Nigeria imported crude oil worth N5.734 trillion between January and December 2025.
Last year, as the Nigerian National Petroleum Company (NNPC), which is the refinery’s main trade partner and minority stakeholder, faced its challenges, the company had to forge alternative supply links. This led to the importation of crude from Brazil, Equatorial Guinea, Angola, Algeria, and the US, among others.
For instance, in March 2025, the company said it now counts Brazil and Equatorial Guinea among its global oil suppliers, receiving up to 1 million barrels of the medium-sweet grade Tupi crude at the refinery on March 26 from Brazil’s Petrobras.
Meanwhile, crude oil exports dropped from $36.85 billion in 2024 to $31.54 billion in 2025, representing a 14.41 per cent decline, further shaping the external balance.
The report added that the refinery’s operations also reduced Nigeria’s reliance on imported fuel, noting that “availability of refined petroleum products from Dangote Refinery also led to a substantial decline in fuel imports.”
Specifically, refined petroleum product imports fell sharply to $10.00 billion in 2025 from $14.06 billion in 2024, representing a 28.9 per cent decline, while total oil-related imports also eased.
However, this was offset by a rise in non-oil imports, which increased from $25.74 billion to $29.24 billion, up 13.6 per cent year-on-year, reflecting sustained demand for foreign goods.
At the same time, the goods account remained in surplus at $14.51 billion in 2025, rising from $13.17 billion in 2024, supported largely by activities linked to the Dangote refinery and improved export performance in other segments.
The CBN stated that the stronger goods balance was driven by “significant export of refined petroleum products worth $5.85bn by Dangote Refinery,” alongside increased gas exports to other economies.
Nigeria posted a current account surplus of $14.04 billion in 2025, lower than the $19.03 billion recorded in 2024 but significantly higher than $6.42 billion in 2023. The decline from 2024 was driven partly by structural changes in oil trade flows, including crude imports for domestic refining, according to the report.
Pressure on the current account came from higher external payments. Net outflows for services rose from $13.36 billion in 2024 to $14.58 billion in 2025, driven by increased spending on transport, travel, insurance, and other services.
Similarly, net outflows in the primary income account surged by 60.88 per cent to $9.09 billion, largely due to higher dividend and interest payments to foreign investors.
In contrast, secondary income inflows declined slightly from $24.88 billion in 2024 to $23.20 billion in 2025, as official development assistance and personal transfers weakened, although remittances remained a key source of inflow, as domestic refineries grappled with persistent feedstock shortages, exposing a deepening supply paradox in the country’s oil sector.
This comes despite the Federal Government’s much-publicised naira-for-crude policy designed to prioritise local supply.
By Aduragbemi Omiyale
An application has been submitted by Sovereign Trust Insurance Plc for its proposed N5.0 billion rights issue.
The application was sent to the Nigerian Exchange (NGX) Limited, and it is for approval to list shares from the exercise when issued to qualifying shareholders.
A notice signed by the Head of Issuer Regulation Department of the exchange, Mr Godstime Iwenekhai, disclosed that the request was filed on behalf of the underwriting firm by its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities.
The company intends to raise about N5.022 billion from the rights issue to boost its capital base, as demanded by the National Insurance Commission (NAICOM) for insurers in the country.
Sovereign Trust Insurance plans to issue 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026.
“Trading license holders are hereby notified that Sovereign Trust Insurance has through its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities, submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026,” the notification read.
By Adedapo Adesanya
Food Concepts Plc, the parent company of fast food brands like Chicken Republic and PieXpress, has disclosed plans to pay 10 Kobo in interim dividend to new and existing shareholders for the 2026 financial year.
This was disclosed by the company in a notice to the NASD Over-the-Counter (OTC) Securities Exchange, where it trades its securities.
The notice indicated that the proposed interim dividend, which comes with no bonus, will be paid to those who hold the stocks of the company as of the qualification date for the dividend, which was Tuesday, March 24.
This means only those who hold the company’s shares as of the closing session will be eligible to receive the stipulated dividend payment.
The shareholders of the company will be credited with the 10 Kobo dividend on Tuesday, March 31.
The notice noted that the closure of the company’s register will be on Wednesday, March 25, through Friday, March 27, 2026, both days inclusive.
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