Economy
BUA Cement, Others Boost Nigeria’s Manufacturing Production Value to N3.73trn
By Adedapo Adesanya
Nigeria’s manufacturing sector recorded N3.73 trillion in production in the second half of 2021, 58.1 per cent higher than the N2.36 trillion reported in the corresponding half of 2020.
The president of the Manufacturers Association of Nigeria (MAN), Mr Mansur Ahmed, disclosed at a presentation on Thursday that this growth is indicative of the development in the industry.
He noted that the manufacturing production value increased by N0.07 trillion or 1.9 per cent when compared with the N3.66 trillion achieved in the first half of last year, while the total value of production for the year stood at N7.03 trillion as against the N4.42 trillion posted in 2020, which was ravaged by COVID-19, which prompted lockdown in most part of the year.
Mr Ahmed said the increase in the manufacturing production value in the second half of 2021 was associated with increased cement production due to the new BUA cement factory in Sokoto; the African Glass new factory and activities of the five new papermills.
“This is also highlighted by the increased production value in the non-metallic mineral products sector to N374.41 billion in the second half of 2021 from N74.18 billion and N249.79 billion recorded in the corresponding half in 2020 and the preceding half respectively,” he said.
Also, capacity utilisation in the manufacturing sector increased to 59 per cent in the second half of 2021 from 53.7 per cent recorded in the corresponding half of 2020; indicating a 5.3 per cent increase over the period.
It increased by 6.6 per cent when compared with 52.4 per cent recorded in the preceding half and averaged 58.9 per cent in 2021 from the 49.5 per cent average in 2020.
He said Mr Ahmed attributed the increase in manufacturing capacity utilisation to the phasing of economic and social restrictions meant to contain the COVID-19 pandemic and the full rebounding of economic activities globally within the period.
“In addition, there are increased capacities in the paper subsector brought in by five new paper mills that are into recycling of waste papers to produce cartons.
“Also, the additional capacities as BUA Group introduced a cement factory in Sokoto and the new African Glass Ltd. factory that produced glass products influenced the development.
“The performance shows that manufacturing is fast returning to the 2019 pre-COVID-19 level of activities in the country,” he said.
The MAN President revealed that investments in the manufacturing sector increased to N73.18 billion from N56.44 billion recorded in the corresponding half of 2020; indicating N16.74 billion or 29.7 per cent increase over the period.
Ahmed said it increased by N70.96 billion or 49.3 per cent when compared with N144.14 billion recorded in the preceding half with manufacturing investment totalling N217.22 billion in 2021 as against N118.52 billion in 2020.
Manufacturing investment has been gradually recovering following the return of economic activities as the issues of the COVID-19 pandemic are continuously resolved.
“In the last year, significant investment has been recorded in the Pulp, Paper, Printing & Publishing (6Ps) sector with the establishment of five new paper mills that are into recycling of waste papers to produce cartons.
“There is also the new BUA Group cement factory in Sokoko; and the new African Glass Limited factory that produced glass products,” he said.
Also, the total historical cumulative jobs in the manufacturing sector were estimated at 1,671,441 by the end of 2021, based on surveys conducted since 2013.
According to the report, a total of 8,508 jobs were created in the sector in the second half of 2021 as against 3,451 jobs recorded in the corresponding half of 2020 and 7,602 jobs created in the preceding half.
“The total net employment in the sector in 2021, after adjusting for job losses was 11,659 while net job losses in 2020 were 3,257.
“The trend indicates that manufacturing job is also rebounding following the gradual return of economic activities in the sector after a year onslaught brought by COVID-19 pandemic,” it read.
Mr Ahmed said Foreign Direct Investment (FDI) recorded $107.81 million in the third quarter of 2021; translating to a pick up from the downward trend of FDI in the country since the fourth quarter of 2020.
He said the association’s data also revealed an increase from $77.97 million recorded in the second quarter of 2021, which was the lowest level recorded for the past 11 years.
He noted that the report of the manufacturing sector’s FDI revealed an uptick in the third quarter of 2021 when compared with the data recorded in the last three quarters.
“Therefore, the third quarter figure of $107.81 million indicates 29.84 million dollars or 38.27 per cent increase when compared with $77.97 million recorded in the second quarter.
“The figure indicates a drop of $306.98 million or 74.01 per cent when compared with $414.79 million recorded in the corresponding quarter of 2020.
“The third quarter report of NBS revealed that the foreign Portfolio Investment increased to 1217.21 million dollars from $551.37 million dollars indicating, $665.84 million or 120.76 per cent increase over the period,” he said.
Similarly, the figure revealed an increase of $809.96 million or 198.89 per cent when compared with $407.25 million recorded in the corresponding quarter of 2020.
“The FDI increased to $323.83 million in the third quarter of 2021 from 68.03 million dollars recorded in the second quarter of 2021, thus indicating $255.80 million or 376.01 per cent increase over the period.
“However, the report indicated $76.26 million or 19.06 reduction when compared to $400.09 million recorded in the third quarter of 2020,” Mr Ahmed added.
He, however, said local raw materials utilisation in the manufacturing sector dipped to 51.7 per cent in the review period from 56.5 per cent in the corresponding period of 2020; indicating a 4.8 per cent decline over the period.
He noted that since the full opening of the economy from the COVID-19 pandemic, local raw materials and other manufacturing inputs had been relatively scarce and costly.
The MAN boss also said the inventory of unsold finished products dipped to N224.63 billion in the second half of 2021 from N303.22 billion recorded in the corresponding half of 2020.
This, he said, indicated a N78.59 billion or 25.9 per cent decline over the period.
“However, it increased by N9.8 billion or 4.6 per cent when compared with N214.83 billion recorded in the preceding half.
“Inventory in the sector totalled N439.46 billion in 2021 as against N577.61 billion recorded in 2020. “The decline in inventory in the period under review was attributed to the recovering aggregate consumption following the gradual rebounding of economic activities as COVID-19 pandemic receded,” he said.
By Aduragbemi Omiyale
One of the leading local energy firms, Oando Plc, delivered an impressive financial performance in the first six months of 2026, according to details of its results filed to the Nigerian Exchange (NGX) Limited.
Between January and June 2026, revenue surged by 20 per cent to N2.1 trillion from N1.7 trillion in the same period of 2025, driven by growth in the Exploration & Production and Trading segments of the business.
Also, the net profit grew by 8 per cent year-on-year to N68.6 billion from N63.3 billion, supported by improved operating profits and tax credits.
It was observed that the organisation deepened its domestic gas monetisation portfolio with the commencement of long-term gas supply of 11.2 MMscfd to the newly commissioned 60 MW Bayelsa Independent Power Plant.
“The first half of 2026 marks an important inflexion point in Oando’s journey. Over the past two years, our priority has been to successfully integrate one of the most significant upstream acquisitions in Africa and unlock the full value of our expanded portfolio. The progress achieved during the period demonstrates that we are now delivering the operational and financial outcomes expected from that transformation,” the chief executive of Oando, Mr Adewale Tinubu, stated.
Commenting further on the results, Mr Tinubu said, “Operational efficiency underpinned our performance during the period as we strengthened asset integrity, improved facility reliability and reinforced security across our operating areas, resulting in average facility uptime of 92 per cent while reducing production operating costs by 18 per cent to $16.83 per boe.”
“Our development programme also gathered significant momentum during the period as we successfully drilled and completed two land development wells, with an additional land well currently being drilled, while mobilising a second drilling rig to accelerate activity across our operated portfolio.
“In parallel, we continued an extensive programme of rig-less well interventions designed to restore production, sustain plateau output and mitigate natural field decline. Together, these activities increased average production to 42,789 boepd, representing 16 per cent year-on-year growth.
“This translated into a stronger financial performance, with revenue increasing by 20 per cent to N2.1 trillion, while the business generated N179.5 billion in operating cash, improving liquidity. Profit after tax also increased by 8 per cent to N68.6 billion, reflecting the overall improvement in operating performance during the period,” he pointed out.
The Oando chief also said, “Looking ahead in 2026, our priorities remain firmly centred on completing our seven-well drilling programme and portfolio-wide well intervention campaign while delivering production of circa 50,000 boepd.
“Beyond 2026, our identified inventory of 62 development wells, supported by 55 planned well interventions, provides a clear pathway towards our medium-term production ambition of approximately 100,000 boepd.
“Furthermore, we shall execute an intensive fundraising and balance sheet restructuring programme to optimise our capital structure, strengthen our financial position, improve working capital, enhance financial flexibility and ensure the business is appropriately funded to accelerate growth and maximise long-term shareholder value.
“We have built a resilient operating platform and established a clear roadmap for growth. Our focus is now on translating our significant opportunities into higher production, a stronger balance sheet and superior long-term returns for our shareholders.”
By Adedapo Adesanya
Africa-focused fintech company PalmPay has joined the ranks of unicorn startups after attaining a valuation of more than $1 billion, as the digital payment platform prepares for a potential initial public offering (IPO) in Hong Kong.
According to a report by Bloomberg on Tuesday, citing people familiar with the matter, the Hong Kong-headquartered company is in advanced discussions to raise about $200 million in a new funding round that would cement its unicorn status and support its next phase of expansion.
The planned fundraising comes as PalmPay accelerates its growth strategy across Africa and Asia, while positioning itself for a public listing that could become one of the most significant fintech IPOs involving an Africa-focused company in recent years.
PalmPay’s move follows a period of rapid growth in Nigeria, where it has become one of the country’s largest digital financial services providers. Alongside OPay and Moniepoint, the company forms the trio that dominates Nigeria’s retail digital payments and agency banking market, a segment driven by millions of point-of-sale (POS) transactions processed daily.
With PalmPay’s latest valuation milestone, all three leading Nigerian fintechs have now achieved unicorn status. While OPay has previously disclosed plans to pursue a listing in the United States, Moniepoint has remained focused on expanding its banking and business services without publicly indicating IPO ambitions.
Founded in 2019 after securing a Mobile Money Operator (MMO) licence from the Central Bank of Nigeria (CBN), PalmPay has built one of the country’s fastest-growing fintech ecosystems. The company says it now serves more than 35 million registered users and over 600,000 merchants, supported by an extensive network of more than 500,000 mobile money agents nationwide.
The platform offers a broad suite of financial services, including peer-to-peer transfers, bill payments, airtime purchases, savings, credit products, merchant payment solutions and agency banking services. PalmPay says it processes as many as 15 million transactions daily, reflecting the increasing adoption of digital payments across Nigeria.
Beyond its home market, the fintech has expanded into Tanzania, Ghana, and Bangladesh, underscoring its ambition to become a leading emerging-market digital bank. Industry analysts view the expansion as part of a broader strategy to diversify revenue streams while replicating its Nigerian success in other underbanked markets.
PalmPay has attracted backing from prominent global investors, including Taiwanese semiconductor manufacturer MediaTek and smartphone maker Transsion Holdings, whose Tecno, Infinix and itel brands command significant market share across Africa. Their support has helped PalmPay leverage smartphone penetration to drive financial inclusion through mobile-first banking services.
As part of efforts to strengthen its leadership ahead of its next growth phase, PalmPay recently appointed Mr Samuel Oluyemi as Chief Operating Officer (COO) for its Nigerian business. Mr Oluyemi joined the company after more than two decades at the Nigeria Inter-Bank Settlement System (NIBSS), where he played key roles in developing the country’s digital payments infrastructure.
If completed, the fundraising and eventual Hong Kong listing would further underscore growing international investor confidence in African fintech companies despite a more cautious global venture capital environment. The proceeds are expected to support PalmPay’s geographical expansion, deepen its product offerings, invest in technology infrastructure and strengthen its competitive position in Africa’s rapidly evolving digital financial services industry.
By Adedapo Adesanya
Market bellwethers, Central Securities Clearing System (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc, lifted the NASD Over-the-Counter (OTC) Securities Exchange by 2.08 per cent on Monday, August 3.
CSCS Plc, the Nigerian securities depository company, gained N10.00 to close at N112.00 per share compared with the previous session’s N102.00 per share, and FrieslandCampina Wamco Nigeria Plc advanced by N4.71 to quote at N152.64 per unit versus last Friday’s N147.93 per unit.
As a result, the NASD Security Index (NSI) added 92.14 points to finish at 4,523.85 points compared with the preceding session’s 4,431.71 points, and the market capitalisation appreciated by N55.31 billion to N2.715 trillion from N2.659 trillion.
Business Post reports that the price of MRS Oil Plc crashed during the trading day by N12.00 to N120.00 per share from N132.00 per share, and UBN Property Plc dipped by 3 Kobo to N1.90 per unit from N1.93 per unit.
Trading data showed that the volume of securities exchanged rose by 113.1 per cent to 1.5 million units from 690,990 units, and the number of deals climbed by 19.2 per cent to 31 deals from 26 deals, while the value of securities slid by 13.1 per cent to N65.2 million from N75.0 million.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 76.8 million units traded for N5.5 billion.
GNI Plc also closed the session 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 exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
