Economy
Dangote Desperate to Kill Our Business Like Others—BUA Group
By Dipo Olowookere
The management of BUA Group has reacted to a statement released on Monday by Dangote Group alleging that the former was stealing and illegally mining limestone at mining sites in Obu, Okpella, Edo State.
In the statement released later on Monday, BUA Group described Dangote Group’s statement as one which “stinks of desperation in its continued attempt to disregard the judicial process and scheme a viable competitor out of business as has been their legendary antecedent.”
It said Dangote Group was scheming plans to ensure BUA Group was out of business like it allegedly did to Ibeto, Polo House Jetty Tincan previously owned by Usman Dantata, and others.
The firm said further that while it does not want to join issues with anyone on the matter because it was currently before a court of competent jurisdiction, it was however compelled to use the opportunity presented by “Edwin Devakumar’s reckless statements to clarify the cycle of misinformation being proliferated.”
BUA Group said, “In specific response to Edwin Devakumar of Dangote Group’s claim of BUA operating on ML2541 in Okene, Kogi State, we wish to restate that BUA does not have any operations whatsoever in Okene, Kogi State where the purported ML2541 is situated.”
“Our Mining operations are limited to Obu-Okpella, Edo State for which licenses ML18912 & 18913 were issued and revalidate by the same ministry in a publication.
“These licences have been owned, operated and fulfilled by BUA and its predecessors-in-title since 1976 as it is also a notorious fact that we have exercised total control and possession over the mining area covered by the above mining leases since 1976 when we operated under the name of Bendel Cement Company Limited,” the statement explained.
“We are thus wont to excuse Edwin’s claims to a lack of basic knowledge and understanding of the geography of Nigeria but he will be better served if he seeks professional opinion in critically understanding the geography of Nigeria or he should otherwise refer to documents from the boundary commission which clearly delineates boundaries within Nigeria.
“We also wish to ask – Why is Dangote, an international company which is also listed on the Nigerian Stock Exchange, so averse to letting the rule of the law and judicial process take its course?
“The court has maintained that Status Quo be maintained (This includes BUA’s current ownership of our mines in Edo State) but the management of Dangote Group Dangote, as has been their strategy in the past to other companies in competition with them, is still seeking to out-muscle competition through backdoor means rather than let the court decide.
“If anyone is not satisfied, they should write to the courts as an independent arbiter for an interpretation of ‘maintaining status quo’ rather than spread misinformation in the court of public opinion,” BUA Group advised in the statement.
“The antecedents of Dangote Plc in trying to outmuscle competition are not in doubt. Various cases abound within and outside the cement industry – one of which was their taking over of the limestone deposits of another competing entity in the south-south region of Nigeria until they ceded him 25% of their company.
“This was in turn resold to them for hundreds of millions of dollars. Or is it the case of Ibeto whose business was almost driven under but for the prompt intervention of the then late President Umaru Musa Yar’Adua. Or is it the case of Polo House Jetty Tincan previously owned by Usman Dantata, whose License was revoked by NPA and reallocated to Dangote on the same day in order to prevent a sugar refinery to be sited there by a competitor.
“The facts of the matter as far as we are concerned are that BUA’s operations are in Obu, Okpella, Edo State and not Okene Kogi. We once again ask that all parties should wait for the court to resolve the issue. We will not be cowed or intimidated and will continue to seek redress through the proper legal channels,” the statement said.
By Dipo Olowookere
Investors on the Nigerian Exchange (NGX) Limited bought and sold 5.119 billion shares worth N404.762 billion in 285,223 deals last week. This was significantly higher than the 4.433 billion shares valued at N306.143 billion traded in 255,589 deals in the preceding week.
This surge in activity level was driven by First Holdco, AVA Capital, and Access Holdings, which accounted for 2.308 billion units sold for N224.773 billion in 27,359 deals, contributing 45.09 per cent and 55.53 per cent to the total trading volume and value, respectively.
Data showed that financial equities led the activity chart with 3.918 billion units valued at N271.428 billion in 123,514 deals, contributing 76.55 per cent and 67.06 per cent to the total trading volume and value, respectively.
Services stocks followed with 203.203 million units worth N3.061 billion in 18,333 deals, and consumer goods shares closed with a turnover of 191.283 million units valued at N13.203 billion in 30,730 deals.
In the five-day trading week, 33 equities appreciated versus 57 equities a week earlier, 56 equities depreciated versus 38 equities in the previous week, and 58 equities remained unchanged versus 51 equities in the preceding week.
The best-performing equity last week was CMFC, which chalked up 22.78 per cent to trade at N3.88, Thomas Wyatt gained 20.66 per cent to close at N4.38, Consolidated Hallmark grew by 19.60 per cent to N8.36, Lasaco Assurance rose by 18.68 per cent to N2.16, and VFD Group increased by 12.21 per cent to N11.95.
On the flip side, the worst-performing equity was ABC Transport, which decreased by 18.44 per cent to N5.75. Fortis Global Insurance shrank by 16.13 per cent to N2.34, Tripple Gee slipped by 15.54 per cent to N2.88, Veritas Kapital slumped by 15.38 per cent to N1.43, and International Breweries crashed by 13.87 per cent to N11.80.
At the close of business for the week, the All-Share Index (ASI) succumbed to selling pressure, as it shed 0.84 per cent to settle at 245,283.68 points, while the market capitalisation retreated by 0.79 per cent to N158.326 trillion.
Similarly, all other indices finished lower apart from the premium, insurance and sovereign bond indices, which appreciated by 0.02 per cent, 1.72 per cent and 0.27 per cent, respectively.
By Adedapo Adesanya
The National Insurance Commission (NAICOM) has officially announced the completion of Nigeria’s 12-month insurance sector recapitalisation exercise, describing the accomplishment as a pivotal step that “signals the beginning of a new era for insurance in the country.”
Undertaken pursuant to Section 15 and other relevant provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law by President Bola Tinubu on July 31, 2025, the exercise aligns directly with the administration’s economic agenda aimed at building a $1 trillion economy by 2030.
Following a rigorous process of review, verification, and validation, NAICOM said in a statement on Sunday that 43 insurance and reinsurance companies have successfully satisfied the new prescribed Minimum Capital Requirements.
The confirmed non-life insurers include Zenith General Insurance Company Limited, Custodian and Allied Insurance Limited, NEM Insurance Plc, Heirs General Insurance Limited, Fin Insurance Company Limited, Tangerine General Insurance Ltd, Capital Express Indemnity Insurance Limited, and Sanlam-Allianz General Insurance Nigeria Ltd.
Others include Consolidated Hallmark Insurance Limited, Sterling Assurance Nigeria Limited, Unitrust Insurance Co. Limited, NSIA Insurance Limited, Rex Insurance Limited, Linkage Assurance Plc, Anchor Insurance Company Ltd, Sunu Assurances Nigeria Plc, KBL Insurance Ltd, International Energy Insurance Plc, Veritas Kapital Assurance Plc, NPF Insurance Company Ltd, Coronation Insurance Plc, and Prestige Assurance Plc.
In the life insurance segment, the successful companies are Custodian Life Assurance Limited, CHI Life Assurance Limited, Heirs Life Assurance Limited, Prudential Zenith Life Insurance Ltd, Stanbic IBTC Insurance Limited, Sanlam-Allianz Life Insurance Nigeria Limited, Capital Express Life Assurance Limited, Mutual Benefits Life Assurance Ltd, Enterprise Life Assurance Company (Nigeria) Ltd, and Coronation Life Assurance Limited.
The composite insurers, operating across both life and non-life insurance that satisfied the requirements comprise Leadway Assurance Company Limited, AIICO Insurance Plc, Cornerstone Insurance Plc, AXA Mansard Insurance Plc, LASACO Assurance Plc, Fortis Global Insurance Plc, Industrial and General Insurance Plc, and Great Nigeria Insurance Plc. Additionally, Mutual Benefits Assurance Plc also met the non-life threshold. In the reinsurance category, Continental Reinsurance Plc and FBS Reinsurance Limited were confirmed compliant.
The regulator noted that an additional eight insurance operators, which submitted evidence of compliance shortly before the statutory deadline, are currently undergoing final verification and regulatory review, with outcomes expected within 14 days.
NAICOM stressed that the milestone “represents a major step towards building a stronger, more resilient, adequately capitalised, professionally governed, and policyholder-focused insurance sector that is better positioned to support national economic growth.”
The recapitalisation exercise was guided by explicit regulatory directives issued by NAICOM to guarantee an orderly, transparent, and verifiable transition. Through its Guidelines on the Implementation of Minimum Capital Requirements for Insurance and Reinsurance Companies in Nigeria, the Commission defined eligible capital instruments, admissible assets, verification procedures, and supervisory expectations throughout the implementation window.
According to the regulator, the action has successfully “enhanced the financial resilience of operators, attracted substantial domestic and foreign investment, and rekindled strong investor confidence” across the industry.
The commission highlighted that the recapitalised market boasts enhanced capacity to underwrite larger and more complex risks across strategic sectors of the national economy. The expanded capital base is set to improve insurers’ ability to settle policyholder obligations promptly, absorb emerging macroeconomic risks, support long-term national infrastructure projects, and boost the sector’s competitiveness within regional and global markets.
Furthermore, the exercise provides a solid baseline for NAICOM to deepen its risk-based supervisory framework, ensuring regulatory capital remains appropriately aligned with the nature, scale, complexity, and risk profile of each licensed operator.
The regulator reaffirmed its commitment to consumer protection, sound market conduct, and expanded financial inclusion as implementation of NIIRA 2025 continues alongside technological modernisation.
“Our unwavering commitment remains to build a fair, stable, innovative, inclusive, and globally competitive insurance market that inspires public confidence and delivers lasting value to policyholders and the Nigerian economy,” the statement read.
By Adedapo Adesanya
The Manufacturers Association of Nigeria (MAN) has urged the federal government to shift its focus from periodic bailout packages to comprehensive structural reforms, warning that financial interventions alone will not revive Nigeria’s struggling textile industry.
The association argued that years of intervention funds have failed to restore the industry’s competitiveness because the core challenges confronting manufacturers remain unresolved.
The Director-General of MAN, Mr Segun Ajayi-Kadir, said the textile sector’s long-term recovery depends on tackling persistent structural constraints, including unreliable electricity supply, inadequate local cotton production, smuggling, obsolete machinery and limited access to affordable long-term financing.
According to him, while intervention programmes such as the Central Bank of Nigeria’s Cotton, Textile and Garment (CTG) Policy and the N100 billion Real Sector Support Facility have provided temporary relief, they have not addressed the underlying factors driving high production costs and weakening the industry’s competitiveness.
“Key challenges that need attention include the high costs and inadequacies of energy supply, rampant smuggling and counterfeiting, a lack of quality raw cotton, outdated machinery and inefficient loan structures. While aid funds may help with immediate needs like fuel and debt repayments, they do not resolve the core issues of energy supply, cotton availability or market access,” Mr Ajayi-Kadir said.
He outlined a package of reforms that, according to him, would rebuild the textile value chain and improve manufacturers’ competitiveness.
Among the recommendations is the development of gas-powered Independent Power Plants (IPPs) in key textile hubs such as Kano, Kaduna, Aba and Ogun, as well as the creation of industrial parks with shared infrastructure, including Effluent Treatment Plants (ETPs), steam utilities and machinery maintenance workshops to lower production costs.
Mr Ajayi-Kadir also called for measures to revive domestic cotton production through the introduction of high-yield, pest-resistant seed varieties and contract farming arrangements between textile mills and farmers to ensure a reliable supply of raw materials while reducing dependence on imports and exposure to foreign exchange volatility.
On financing, he urged the government to restructure industry loans by extending repayment tenures to between 10 and 15 years and permitting duty-free importation of modern spinning, weaving and printing equipment to boost productivity.
To protect local manufacturers from unfair competition, he advocated stronger anti-smuggling measures, including digital cargo tracking systems, border scanners and stricter enforcement of Executive Order 003 to prioritise locally produced uniforms and other government procurement.
The MAN chief further stressed the need to revive technical and vocational institutions to train textile engineers, weavers and computer-aided design (CAD) specialists capable of supporting a modern manufacturing industry.
He added that improving compliance with international quality and environmental standards would better position Nigerian textile manufacturers to benefit from export opportunities under the African Continental Free Trade Area (AfCFTA) and the African Growth and Opportunity Act (AGOA).
Mr Ajayi-Kadir pointed to Bangladesh, Vietnam and India as examples of countries that transformed their textile industries through sustained structural reforms rather than repeated financial bailouts.
According to him, Bangladesh emerged as the world’s second-largest garment exporter by providing duty-free access to production inputs and establishing special economic zones, while Vietnam built a globally competitive textile industry through reliable electricity, foreign direct investment and trade agreements.
India, he noted, strengthened its sector with PM MITRA textile parks, Production-Linked Incentive (PLI) schemes and investments in cotton production.
He maintained that Nigeria should concentrate on building a sustainable textile ecosystem instead of relying on temporary financial support for struggling manufacturers.
“With stable energy, reliable local cotton supply and protected markets, Nigeria’s textile industry has the potential to create millions of jobs and generate substantial foreign exchange earnings, just as Bangladesh and Vietnam have done,” he said.
