Economy
C & I Leasing to Recapitalise Capital Base, Raise Fresh Funds
By Dipo Olowookere
Managing Director/CEO of C & I Leasing Plc, Mr Andrew Otike-Odibi, has expressed the determination of the company to raise its capital base to a higher level from its present.
Mr Otike-Odibi made this disclosure while reacting to the performance of the firm in the first six months of this year. He said this is one of the main targets the company hopes to achieve in the 2019 financial year.
“We remain focused on our key priorities for 2019, including validation of our business expansion, growth objectives of meeting and exceeding client’s expectation, increasing demand for our products and services and recapitalising the company’s capital base,” Mr Otike-Odibi said.
Business Post reports that the company disclosed that it “plans to raise equity via a Rights Issue for the purpose of business expansion, loan refinancing and working capital need.”
In the first half of 2019, C & I Leasing improved its gross earnings by 27.2 percent to N16.3 billion from N12.8 billion in H1 2018. This was mainly driven by the growth in the firm’s lease rental income by 70.6 percent of total gross earnings.
The growth in lease rental income was attributed to the expansion of the company’s lease rental portfolio, both in the marine and fleet management services respectively. Lease rental income comprising Fleet Management earnings and Marine earnings was up 30.9 percent to N11.5 billion in H1 2019 versus N8.8 billion in H1 2018.
According to the company, the growth in earnings from the lease rental business was the result of reduced vehicle downtime and new contracts signed during the period.
Marine provided ‘operate and maintain services’ on vessels owned by third parties, while Fleet Management saw an increase in earnings from the open rental business.
Personnel outsourcing earnings rose by 22.6 percent to N4.0 billion in H1 2019 (H1 2018: N3.2 billion) and represents 24 percent of total gross earnings. This was driven by increasing demand for professional services especially by the International Oil Companies, which resulted in higher volumes on existing contracts through the provision of expanded services such as enhanced logistics and trainings.
Tracking income was up by 16.6 percent to N115.8 million in H1 2019 (H1 2018: N99.3 million) due to increase in demand for tracking services reflected in increased customer uptake of its devices.
Net operating income increased by 24.7 percent to N4.6 billion in H1 2019 (H1 2018: N3.7 billion), underscoring the growth in gross earnings across the various business units.
Interest income, other operating income and share of gain from marine joint venture grew 3.4 percent to N704.6 million in H1 2019 (H1 2018: N681.5 million), largely driven by returns from the company’s marine business.
Interest expenses were up by 17.5 percent y-o-y to N2.5 billion in H1 2019 due to an increase in term loans to drive business expansion and to support the purchase of operating assets for the Fleet Management Business, while direct operating expenses were up by 31.7 percent y-o-y to N9.1 billion in H1 2019, reflecting the increase in gross earnings of the group, with indirect operating expenses increasing by 23.9 percent to N3.7 billion in H1 2019 (H1 2018: N3.0 billion).
The firm said its personnel costs rose 49.5 percent from N508.3 million in H1 2018 to N760.0 million in H1 2019 as a result of an ongoing welfare packages and performance incentives, while other administrative and general expenses grew by 26.6 percent from N794.7 million in H1 2018 to N1.0 billion in H1 2019, reflecting an increase in legal and professional fees, on business entered in by the company during the period as well as insurance expenses.
Profit before tax went up 25.8 percent year-on-year to N909.2 million from N723.0 million, while the profit after tax increased by 27.1 percent year-on-year to N866.9 million from N682.2 million.
Recall that in April 2019 the company entered into a Joint Venture arrangement with OCS Integrated Services Nigeria Limited, an Integrated Local Service Company, established to provide comprehensive operations and maintenance solutions for offshore oil and gas fields. It is a complete asset management which involves offshore asset maintenance and manpower solution.
By Adedapo Adesanya
The Senate Committee on Banking, Insurance and Other Financial Institutions has called for stronger collaboration among financial sector regulators and other stakeholders to strengthen Nigeria’s financial system and support sustainable economic growth.
The committee made the call during an expanded stakeholders’ engagement in Lagos, attended by the leadership of the Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC), Asset Management Corporation of Nigeria (AMCON), National Insurance Commission (NAICOM) and Nigeria Export-Import Bank (NEXIM), among other industry stakeholders and financial experts.
Chairman of the committee, Mr Adetokunbo Abiru (Lagos East), who was represented by Mr Osita Izunaso (Imo West), said stronger legislative reforms and regulatory collaboration were necessary to reposition Nigeria’s financial architecture for long-term economic prosperity.
Mr Abiru said the financial sector remained critical to investment, job creation, business expansion and macroeconomic stability, stressing that its ability to mobilise savings, channel credit to productive sectors, facilitate investment and manage risks was fundamental to sustainable economic growth.
He said the current economic realities required closer collaboration between the legislature and financial regulators, noting that challenges confronting the sector were interconnected and could not be effectively addressed through isolated interventions.
The lawmaker identified inflationary pressures, global economic uncertainties, cybersecurity threats, low insurance penetration and the need to diversify Nigeria’s export base as some of the challenges requiring coordinated policy responses.
He said the engagement was aimed at generating practical solutions to strengthen the country’s financial architecture and support sustainable economic growth.
According to him, monetary policy, financial safety nets, banking institutions, the insurance industry and export finance were interdependent components of a stable financial system and must therefore be strengthened collectively.
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr Olusegun Ayo Omosehin, said the Nigeria Insurance Industry Reform Act (NIIRA) 2025 had contributed significantly to stabilising and repositioning the insurance sector.
Mr Omosehin disclosed that 43 insurance companies had successfully recapitalised, describing the development as a major milestone for the industry.
He commended Abiru and members of the committee for their role in advancing insurance sector reforms and urged the House of Representatives to expedite action on the relevant insurance reform bill to enable it to receive presidential assent and become operational.
Representatives of the CBN Governor and the Managing Directors of AMCON, NEXIM and NDIC also commended the Senate committee for its oversight and legislative support, saying its interventions had strengthened the agencies’ capacity to discharge their statutory mandates.
The engagement, held under the theme, Strengthening Financial System Architecture for Sustainable Economic Growth and Stability in Nigeria, also featured presentations by Professor Uche Uwaleke, President of Capital Market Academics of Nigeria (CMAN); Professor Biodun Adedipe, Chief Consultant, B. Adedipe Associates Limited; and Dr Tilewa Adebajo, Chief Executive Officer of CFG Advisory.
The experts presented policy recommendations on key issues affecting Nigeria’s financial system, with emphasis on financial stability, investment and sustainable economic growth.
Mr Abiru said the Senate would continue to engage financial regulators and other stakeholders to deepen financial inclusion, strengthen public confidence in financial institutions and improve regulatory effectiveness.
He said the broader objective was to position Nigeria’s financial system to compete more effectively in the global economy while remaining resilient and responsive to the country’s economic transformation agenda.
By Aduragbemi Omiyale
The first six months of 2026 were not too good for Caverton Offshore Support Group Plc, as it suffered an N8.7 billion loss compared with the N2.1 billion net profit it recorded in the same period of 2025.
This occurred as the company posted a 10.91 per cent decline in earnings between January and June 2026, according to its financial statements for the period ended June 30, 2026.
Analysis of the results showed that the revenue generated in the period under review stood at N14.7 billion versus the N16.5 billion printed in the corresponding period of last year.
Business Post observed that the revenue was negatively impacted by a decline in earnings from helicopter charter and helicopter/airplane contract.
Further analysis of the financial results indicated that operating profit went down by 22.34 per cent to N7.3 billion from N9.4 billion, with administrative expenses jumping to N7.9 billion from N4.7 billion.
But Caverton believes things will get better, noting that the clearest driver of the recovery is Caverton Marine.
Through its relationship with Stena Bulk, one of the world’s leading tanker operators, the organisation now participates in three Suezmax tankers trading a rare source of foreign-currency revenue for a Nigerian-listed company.
It noted that the relationship is being deepened through Unity Shipping Worldwide, a joint venture with the Nigerian National Petroleum Company (NNPC) Limited and Stena Bulk that pairs the state-owned oil firm’s national position and Stena Bulk’s fleet with Caverton’s indigenous operating platform
Closer to home, the firm’s OMIBUS platform, developed with Shanghai-based electric-propulsion OEM Explomar, is bringing battery-electric passenger ferries to Lagos waterways. A prototype is already in service, and Caverton holds a firm order from Lagos State for ten vessels, an early-mover position in clean inland-water transport that the group believes can be replicated across other states as the fleet enters service and ferry operations mature into steady, recurring revenue.
In aviation, the institution said the recovery is anchored on its partnership with NHV, a Belgium-based international helicopter operator, with the restructuring of charter operations targeted for the second half of 2026.
“The first half of the year tested us, but the direction of travel is now visible in the numbers.
“Quarter on quarter, we are working to build up our revenue to narrow losses. Our marine business units, from international tankers to electric ferries, are scaling.
“Meanwhile, our aviation relaunch is on track for the second half, and our cost base is tighter than it has been in years. There is distance still to travel, but Caverton is moving from stabilisation to recovery, and we intend to finish 2026 with that momentum intact,” the chief executive of Caverton, Mr Olabode Makanjuola, stated.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB) have issued new guidelines clarifying the taxation of virtual assets in Nigeria.
The guidelines provide an administrative framework for the taxation of virtual assets and specify the tax obligations of individuals and businesses operating in the sector.
According to a public notice issued by the two agencies, the framework covers registration, reporting and record-keeping requirements, valuation principles and the tax treatment of virtual asset transactions.
It applies to taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer (P2P) marketplace operators, tax practitioners and other persons engaged in virtual asset-related activities.
The NRS and JRB said the guidelines were developed in line with the provisions of the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025.
The two bodies said the release was aimed at providing clarity, certainty and consistency in the administration of Nigeria’s tax laws as the country’s virtual asset ecosystem continues to evolve.
The agencies added that the framework would promote voluntary compliance, enhance transparency and support the development of a fair and efficient tax system for digital asset transactions.
They urged all affected taxpayers and stakeholders to familiarise themselves with the guidelines and ensure compliance with the applicable tax obligations.
The guidelines are available on the official websites of the two agencies.
