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Economy

Drop in Nigerian Treasury Bills Yield Imminent

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By FSDH Research

Yields on the Nigerian Treasury Bills (NTBs), particularly on the 364-day tenor, are likely to drop with the plan of the Debt Management Office (DMO) to refinance the NTBs through foreign debt.

The DMO hinted recently that the Federal Government of Nigeria (FGN) plans to issue about US$3bn in foreign debt of longer tenor, to refinance the domestic debt particularly the high-cost NTBs.

The plan is in line with the debt management strategy of the FGN for 2016-2019, with the overall objective of reducing its total cost of borrowing to achieve the country’s strategic target of an optimal debt mix of 60 percent and 40 percent for domestic and external debts respectively.

The debt management strategy also sets a target of domestic debt mix of 75 percent and 25 percent for long and short-tenored debts respectively.

Our analysis of the data from the DMO on the debt structure of Nigeria as at March 2017 shows that the total public debt stood at N19.16 trillion, made up of N14.93 trillion (78 percent) and N4.23 trillion (22 percent) in domestic and foreign debts respectively.

Although the external debt component at 22 percent as at March 2017 is far from the optimal mix of 40 percent, it is an improvement from 14 percent as at 2013.

If the DMO were to move the debt position as at March 2017 to the planned optimal level, it means that it would have to refinance about N3.43 trillion of the local debt in favour of the external debt.

Thus, we expect the external borrowing to grow faster than the domestic borrowing in the medium to long term.

The FGN’s component of the domestic debt stood at N11.97 trillion as at March 2017. NTB, which is the short-term debt, accounted for 30 percent or N3.60 trillion of the domestic debt of the FGN. This is higher than the target of 25 percent under the debt management strategy, meaning that the FGN could be issuing more of FGN Bonds than NTBs going forward.

This strategy will achieve two things: reduce the weighted average cost of borrowing for the government because the interest rate on the 364-Day NTB is higher than the interest rate on the FGN Bonds; and extend the tenor of the FGN debts.

Many corporate and individual borrowers have criticized the crowding out effect of the NTBs due to their high yields. The average yield on the 364-Day NTB in 2016 stood at 16.15 percent while the average yield between January 2017 and August 2017 stood at 22.91 percent.

From the monetary policy perspective, the high yields may be necessary to tame high inflation and protect the value of the local currency – it however constitutes a drain on the inadequate revenue of the FGN.

The International Monetary Fund (IMF) noted earlier in August 2017 that preliminary data for the first half of 2017 indicates significant revenue shortfalls, with the interest-payments to revenue ratio remaining high, at 40 percent as at the end of June 2017, and projected to increase further under current policies.

The DMO in its 2016 Debt Sustainability Analysis (DSA) report notes that the debt service-to-revenue ratio (for FGN only) breached the country’s specific threshold of 28 percent. The DSA report added that the FGN debt portfolio still remains highly vulnerable to persistent shocks in revenue, indicating a potential challenge in maintaining debt sustainability.

The total amount of debt service in 2016 stood at N1.20trn and represents 58 percent of the federal allocation disbursed to the FGN.

As at March 2017 the total debt service stood at N449 billion representing 82 percent of the total FGN allocation of N549 billion for the period.

We note that FGN revenue has been challenged in the last two years on account of a drop in oil revenue.

Thus, the plan of the FGN is to use the refinancing to lower debt service figures taking advantage of the relatively lower interest rate in the international financial markets. The FGN will have to put in place strategies to manage the currency risks associated with foreign borrowing.

The average yield on the FGN 6.375 percent July 2023 Eurobond from January till August 21, 2017 is 5.94 percent compared with 364-Day NTB of 22.91 percent.

The various efforts of the government should also increase revenue accruable to the country and the FGN.

 

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Economy

Dangote Cement Assures Shareholders Lasting Value, Pays N753.8bn Dividend

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dangote cement shareholders AGM

By Aduragbemi Omiyale

Shareholders of Dangote Cement Plc have been assured of lasting value for their investment and trust in the cement producing firm.

This assurance was given by the chief executive of Dangote Cement, Mr Arvind Pathak, at the company’s Annual General Meeting (AGM), where shareholders approved the payment of N753.8 billion as dividend for the 2025 financial year.

The cement brewer paid a cash reward of N45 per share for the year, a 50 per cent increase in dividend payout from the N30 per share a year earlier, reaffirming the company’s position as one of the most rewarding investments on the Nigerian Exchange (NGX).

The increase follows the company’s outstanding 2025 financial performance and underscores its unwavering commitment to shareholder value creation.

It was the highest dividend payout in the history of Dangote Cement and reflects the strength of its earnings capacity, robust cash generation ability, and disciplined execution of its growth strategy

Dangote Cement delivered a landmark financial performance in 2025. Earnings per share rose significantly to N59.86, demonstrating the company’s resilience and operational excellence despite prevailing macroeconomic challenges.

Mr Pathak said the dividend increase is backed by the organisation’s strong financial performance and healthy balance sheet.

“The decision to increase our dividend by 50 per cent to N45 per share demonstrates the strength of Dangote Cement’s earnings capacity and cash generation capability.

“As we continue to execute our pan-African growth strategy, we remain committed to creating lasting value for our shareholders, investing in the future of the business, and supporting Africa’s industrial development. Our shareholders have stood by us throughout our journey, and we are delighted to reward that trust with another significant increase in returns,” he stated.

The chief executive noted that the firm continues to strengthen its footprint across Africa through strategic investments and capacity expansion projects.

In 2025, Dangote Cement commissioned a 3-million-tonne-per-annum grinding plant in Côte d’Ivoire, reinforcing its presence in West Africa and increasing total installed capacity to 55 million tonnes per annum (Mta) across eleven African countries.

He added that the Company remains focused on its long-term objective of expanding installed capacity to 80Mta by 2030, while driving operational efficiency, increasing exports, enhancing sustainability initiatives, and improving shareholder returns.

On his part, the chairman of Dangote Cement, Mr Emmanuel Ikazoboh, said the increase in dividend payout reflects the company’s determination to reward shareholders for their continued confidence and support.

“Our commitment remains to create sustainable value for all stakeholders. This significant increase in dividend demonstrates the strength of our business model, our disciplined approach to capital allocation, and our confidence in the future. We are grateful for the trust our shareholders have placed in us over the years and remain committed to delivering superior returns while maintaining the highest standards of corporate governance and operational excellence,” he stated.

The organisation’s dividend history has continued to set benchmarks in the Nigerian capital market. Over the past 15 years, Dangote Cement has distributed more than N3.3 trillion in dividends to shareholders, reinforcing its reputation as a dependable creator of long-term wealth.

The latest dividend increase follows a previous 50 per cent rise from N20 per share to N30 per share, underscoring a consistent record of rewarding shareholders.

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Economy

Binance Crosses $1bn in Assets Under Management for Stocks Trading

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Binance

By Aduragbemi Omiyale

Stock trading on the world’s leading blockchain ecosystem and digital asset infrastructure provider, Binance, has hit a significant milestone, surpassing $1 billion in assets under management (AUM) in 30 days since launch.

This milestone follows the recent achievement by bStocks, Binance’s tokenised 1:1 US securities, which hit $100 million in AUM within two weeks of launch.

Since the platform began stock trading on June 1, 2026, it has recorded more than $3 billion in total trading volume.

Stock trading on Binance gives users access to over 7,000 US stocks and ETFs, settled in stablecoins, directly within the app alongside their existing crypto holdings.

Analysis showed that the average daily inflows stood at $42 million, while approximately 73 per cent of users come from emerging markets, with one in 7 visitors to Binance’s stock trading page registering an account; of those new sign-ups, nearly 90 per cent went on to place a trade.

In addition, fractional orders averaged 35 per cent of equity trading volume, with users able to participate from as little as $5, while almost 71 per cent of equity holdings are allocated to the Technology sector, with almost half (48 per cent) of that directed toward Semiconductors.

Nearly 740 of the 7,000 available stocks and ETFs have already been traded, with the Technology sector generating approximately 23 times the trading volume of other sectors, underscoring the conviction that Binance users have behind these positions.

The allocation patterns are consistent with a financially literate user base actively managing sector exposure rather than trading indiscriminately.

Binance Research projects that by 2031, crypto exchanges as a category could channel $2 trillion in incremental capital into global equity markets and bring 300 million new investors into the asset class.

“A billion dollars in 30 days is a sign of the demand that has been waiting decades for a door to walk through. The walls that kept most of the world out of US stocks were never as solid as they looked. We built this for the hundreds of millions of people who never had a way in,” the Head of Exchange and Trading at Binance,” Shunyet Jan, stated.

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Economy

Velex Advisory’s Approach to Financial Structuring for Business Growth

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Velex Advisory

Expansion across Africa is often framed as a market opportunity.

New customers, growing adoption, and expanding digital ecosystems continue to attract businesses into multiple African markets. Yet for many companies, growth across the continent becomes difficult to sustain beyond initial entry.

Across African markets, businesses must operate within different tax regimes, currency environments, banking systems, and capital access frameworks. These differences introduce financial complexity that directly impacts how companies manage cash flow, allocate capital, and sustain operations across jurisdictions.

Over time, these issues increase financial risk and slow growth, limiting the ability of emerging growth companies and established businesses alike to scale sustainably.

Financial Advisory as a Strategic Growth Enabler

According to Velex Advisory, managing this complexity requires more than accounting. It requires a structured approach to how financial decisions are made across the business.

“Poor financial management and structure is one of the biggest challenges businesses across Africa face, especially as they expand. In many cases, growth happens faster than the systems supporting it, which then leads to cash flow pressure, inefficiencies across markets, and difficulty sustaining that growth,” says Jonathan Nwanze, Finance Manager, Velex Advisory West Africa.

Businesses, therefore, need structured, strategic financial advisory to help them:

  • Align their financial structure and capital structure with the expansion strategy
  • Manage capital across multiple jurisdictions, and maintain visibility across revenue and cost centers.
  • Prepare for investment, funding, and capital raising
  • Ensure compliance without limiting operational flexibility.

This is what enables businesses to move from operating to scaling with clarity, financial flexibility, and control across markets.

How Velex Advisory Structures Finance for Scalable Growth

Financial advisory is one of Velex Advisory’s core service areas, supporting businesses by aligning financial strategy with how they operate and expand across African markets.

Rather than treating finance as a back-office function, the firm works with companies to ensure that financial decisions support business growth, market entry, and long-term sustainability across multiple jurisdictions.

“Scaling across multiple markets requires more than access to capital. It requires discipline in how that capital is structured, deployed, and managed across the business,” says Vadim Mildov, Executive Chairman, Velex Group.

At Velex Advisory, financial advisory is delivered as a structured, hands-on process that connects financial planning with operational and strategic decision-making across the business.

This includes:

i) Tax Advisory

Operating across multiple markets requires careful alignment with different tax regimes.

Velex Advisory supports clients in structuring their operations to ensure tax efficiency while maintaining compliance with local regulations. This includes corporate tax positioning, cross-border tax considerations, and aligning tax structures with revenue flows, business plans, and overall financial goals.

ii) Financial and Investment Analysis

As businesses scale, financial visibility becomes increasingly important.

Velex Advisory provides financial and investment analysis to help businesses assess performance, evaluate growth opportunities, and prepare for investment or expansion. This includes supporting investment readiness, understanding valuation, and identifying financial risks across markets.

iii) Banking Advisory and Assurance

Access to banking infrastructure and financial institutions varies significantly across African markets.

Velex Advisory supports businesses in establishing and managing banking relationships, navigating local financial infrastructure, and aligning capital and liquidity structures with operational needs. This includes guidance on liquidity management, capital planning, and financial systems that support cross-border operations.

Connecting Financial Structure to Business Growth

Financial advisory does not operate in isolation. Velex Advisory also supports businesses across key operational and legal functions that directly impact how companies operate and expand.

“Financial structuring and legal structuring are deeply connected. Decisions around transactions, partnerships, and expansion have direct implications on risk exposure and long-term sustainability,” explains Laura Gacho, Legal Manager, Velex Advisory East Africa.

On the legal side, the firm provides support in licensing and regulatory compliance, intellectual property and data protection, and transaction advisory, including joint ventures, M&A transactions, capital raises, and strategic partnerships.

From a business advisory perspective, Velex Advisory works with clients on business establishment and development, market entry and growth strategy, human resources consulting, and due diligence and valuation support, ensuring that operational, structural, and strategic decisions are aligned from the outset.

By integrating business, legal, and financial advisory services, Velex Advisory supports companies in building structures that are not only compliant but capable of sustaining long-term success and growth across African markets.

As part of the broader Velex Group and working alongside Velex Hub and Velex Investments, the firm connects advisory, investment readiness, and expansion strategy into a single, coordinated approach across markets.

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