Economy

Dunlop Seeks Core Investor to Produce Tyres in Nigeria

Published

7 years ago

16/02/2019

By Modupe Gbadeyanka

Managing Director of a leading marketer of automotive tyres, Dunlop Nigeria Tyre & Rubber Plc, Mr Mohammed Jimoh Yinusa, has disclosed that the company was looking for at least a major investor to enable it return to the manufacture of tyres in Nigeria.

In a notice to the Nigerian Stock Exchange (NSE) this week, the firm, which shut down its local production in 2008 due to a government policy, said it intends to return in full force to take its place in the market.

To achieve this goal, Dunlop is marketing its 10-year strategic business plan it developed with the hope of getting a potential investor, who will key into the vision of the company.

“We have developed a 10-year strategic business plan for a return to local tyre manufacture, which is currently being marketed to enable us secure a core lead investor for the project as the company currently does not have a single investor with up to 5 percent shareholding to provide the required leadership, after which we would jointly approach our technical partners.

“We are already in serious discussions with a state government that is setting up an Industrial Park with provision for an automobile cluster and a tyre manufacturing plant, among other possible options,” Mr Yinusa stated.

In 2006, the administration of President Olusegun Obasanjo reduced the import tariff on tyres to 10 percent from 40 percent.

This significantly affected local manufacturers of the product, leading to the exit of Dunlop and Michelin in 2008 and 2006 respectively.

The two leading local makers of tyres could not cope with the huge infrastructural deficiency, especially electric power and Dunlop, which had been operating in the country since 1963, had to go, but continued dialogue with the various successive governments on the need to raise the tariff on imported tyres to encourage local production.

Prior to the 2006 change in policy, Dunlop had just completed a major $50 million expansion into the truck tyre segment a year earlier in 2005 and when it became obvious that the policy reversal was not forthcoming, the firm had to in 2012 take the interim strategic decision to realise all its manufacturing assets to enable it to repay its indebtedness to financial institutions of over N8 billion, which was achieved by the end of 2014.

According to Mr Yinusa, the believe in the future of local tyre manufacture in view of the huge market in the West and Central African sub Regions, with no single tyre plant currently, made the company strategically retained its investment in natural rubber plantations through its 60 percent shareholding in its subsidiary company, Pamol Nigeria Limited, the key minority shareholders being Cross River State government with 21 percent and Delta State government with 15 percent.

Natural rubber constitutes about 50 percent of tyre raw materials, with Carbon Black at about 25 percent, both of which are significantly locally available.

The company’s CEO said, “We have now recorded significant results with the federal government, through the National Automotive Design and Development Council, with the conclusion of a new Automotive Policy which has taken into consideration the key policy negatives of the 2006 reversals.

“This new policy is in the process of being forwarded to the National Assembly for legislation in order to strengthen the future policy stability in this regard.”

“We wish to use this medium to appreciate the understanding exhibited by our shareholders and other stakeholders during this very difficult phase in the history of our company, while we continue our efforts to return our company to profitable operations in order to continue our over 57 years corporate journey,” Mr Yinusa said.

Economy

NASD Exchange Rises 1.22% on Sustained Bargain-Hunting

Published

1 day ago

28/02/2026

Adedapo Adesanya

By Adedapo Adesanya

Strong appetite for unlisted stocks further raised the NASD Over-the-Counter (OTC) Securities Exchange by 1.22 per cent on Friday, February 27.

Data revealed that the NASD Unlisted Security Index (NSI) was up by 49.41 points to 4,083.87 points from 4,034.46 points, and lifted the market capitalisation by N19.56 billion to N2.433 trillion from N2.413 trillion.

The volume of securities bought and sold by investors increased by 243.0 per cent to 4.5 million units from 1.3 million units, and the number of deals grew by 15.8 per cent to 44 deals from 38 deals, while the value of securities went down by 19.7 per cent to N82.5 million from N102.8 million.

Central Securities Clearing System (CSCS) Plc ended the session as the most active stock by value on a year-to-date basis with 35.0 million units valued at N2.1 billion, followed by Okitipupa Plc with 6.3 million units worth N1.1 billion, and Geo-Fluids Plc with 122.8 million units transacted for N480.4 million.

Resourcery Plc ended the day as the most traded stock by volume on a year-to-date basis with 1.05 billion units sold for N408.7 million, followed by Geo-Fluids Plc with 122.8 million units valued at N480.4 million, and CSCS Plc with 35.0 million units traded for N2.1 billion.

There were six price gainers yesterday led by FrieslandCampina Wamco Nigeria Plc, which added N9.02 to close at N111.46 per unui compared with the previous day’s N102.44 per unit, Nipco Plc appreciated by N6.00 to N284.00 per share from N278.00 per share, CSCS Plc recouped N1.87 to sell at N70.12 per unit versus Thursday’s value of N68.25 per unit, Geo-Fluids Plc improved by 17 Kobo to close at N3.18 per share versus N3.01 per share, Industrial and General Insurance (IGI) Plc advanced by 5 Kobo to sell at N50 Kobo per unit versus the preceding day’s 45 Kobo per unit, and Acorn Petroleum Plc chalked up 2 Kobo to settle at N1.34 per share, in contrast to the previous day’s N1.32 per share.

Economy

FX Liquidity Crunch Sinks Naira to N1,363/$1 at NAFEX, N1,370/$1 at Black Market

Published

1 day ago

28/02/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira performed poorly against the United States Dollar in the different segments of the foreign exchange (FX) market on February 27, closing the week without a gain.

In the black market, the domestic currency weakened against the Dollar yesterday by N5 to close at N1,370/$1 compared with Thursday’s closing price of N1,365/$1, and at the GT Bank forex desk, it lost N2 to sell N1,369/$1 versus the N1,367/$1 it was sold a day earlier.

Yesterday, the Nigerian Naira lost N3.75 or 0.26 per cent against the greenback at the Nigerian Autonomous Foreign Exchange Market (NAFEX) to trade at N1,363.39/$1 compared with the previous day’s N1,359.82/$1.

Also, the Naira depreciated against the Euro at the official market during the session by N2.33 to quote at N1,609.22/€1 versus N1,606.89/€1, and appreciated against the Pound Sterling by N6.74 to settle at N1,836.49/£1 compared with the preceding session’s N1,843.23/£1.

The Naira’s latest depreciation occurred as FX demand continued to outpace available supply, intensifying pressure in the market.

In response to the negative momentum, the Central Bank of Nigeria (CBN) intervened by selling Dollars to banks and other authorised dealers in an effort to stabilise the local currency. The move came barely a week after the apex bank had purchased about $190 million from the foreign exchange market to temper the Naira’s rally.

Specifically, the CBN injected $200 million into the official market between Tuesday and Wednesday through an intervention call. However, the liquidity support proved insufficient to reverse the currency’s downward trend.

Meanwhile, the cryptocurrency market declined on Friday, with Solana (SOL) down by 10.4 per cent to $78.60, as Dogecoin (DOGE) decreased by 9.5 per cent to $0.0982.

Further, Cardano (ADA) slumped 8.9 per cent to $0.2647, Ethereum (ETH) slipped by 8.6 per cent to $1,859.10, Ripple (XRP) shrank by 8.2 per cent to $1.30, Litecoin (LTC) lost 1.4 per cent to close at $52.39, Bitcoin (BTC) slid 5.9 per cent to $63,686.39, and Binance Coin (BNB) went down by 4.9 per cent to $596.64, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.

Economy

Oil Prices Climb on Geopolitical Anxiety

Published

1 day ago

28/02/2026

Adedapo Adesanya

By Adedapo Adesanya

Oil prices rose about 2 per cent on Friday, with traders bracing for supply disruptions as nuclear talks between the United States and Iran were without an agreement.

Brent crude futures settled at $72.48 a barrel after chalking up $1.73 or 2.45 per cent, while US West Texas Intermediate crude futures finished at $67.02 a barrel, up $1.81 or 2.78 per cent.

The two sides agreed to extend indirect negotiations into next week, but traders grew sceptical that an agreement between US President Donald Trump’s administration and Iran was possible.

The US and Iran held indirect talks in Geneva on Thursday after Mr Trump ordered a military buildup in the region.

Oil prices gained during the talks, on media reports indicating that discussions had stalled over U.S. insistence on zero enrichment of uranium by Iran. However, prices eased after the mediator from Oman said the two sides had made progress.

They plan to resume negotiations with technical-level discussions scheduled next week in Vienna, Omani Foreign Minister Sayyid Badr Albusaidi said on X.

Market analysts noted that geopolitical risk premiums of $8 to $10 a barrel have been built into oil prices on fears that a conflict will disrupt Middle East supply through the Strait of Hormuz, where about 20 per cent of global oil supply passes.

To cushion the impact from a possible strike, one of the world’s largest oil producers, the United Arab Emirates (UAE), is set to export more of its flagship Murban crude in April, while Saudi Arabia said it would also increase oil production.

Additionally, Saudi Arabia may raise its April crude price to Asia for the first time in five months due to higher demand from India to replace Russian supplies, potentially raising it by about $1 a barrel.

Meanwhile, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) is likely to consider raising oil output by 137,000 barrels per day for April at its March 1 meeting, after suspending production increases in the first quarter.

The resumption of output increases after a three-month pause would allow Saudi Arabia and the UAE to regain market share at a time when other OPEC+ members, such as Russia and Iran, contend with Western sanctions while Kazakhstan recovers from a series of oil production setbacks.

Eight OPEC+ producers – Saudi Arabia, Russia, the United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria and Oman will meet at the meeting on Sunday.