Economy
Economic Downturn, Elections Frustrate Sale of GSK Agbara Factory
By Dipo Olowookere
The sale of the Agbara factory of GlaxoSmithKline (GSK) Consumer Nigeria Plc in Ogun State is yet to be concluded, Business Post has learned.
In 2019, the board of the biopharma company said its manufacturing plant in Ogun State would be shut down by the third quarter of 2021 as the firm was restructuring its business model.
According to a statement released on the development, GSK said the production of its drugs and other products would be handled by a “suitable third party local manufacturer,” saying this was the best strategy to “better serve the Nigerian patients and consumers,” as this development will “not impact GSK’s broader commitments to global health in Nigeria and across Africa.”
It explained that, “This restructuring, which would be effective in Q3 2021, involves working with local contract manufacturers for the supply of GSK’s products, where possible.
“This would support the building of local expertise, transfer of technical knowledge and improve local production capacities in the country.”
Business Post gathered that the GSK Agbara factory was to be offloaded in 2022, but it suffered a setback because buyers were sceptical about the outcome of the 2023 general elections and the macroeconomic environment in Nigeria.
This forced the management to offload some parts of the factory in bits, according to the information contained in the audited financial statements of the organisation for 2022.
GSK said at the time it shut down the factory, the plant and machinery, furniture and fittings, and motor vehicles were worth N666 million, N28 million and N21 million, respectively, with plans to have them sold “within a one-year period.”
“However, due to circumstances that arose in the course of the year, which were previously considered unlikely, some of the assets were not sold as at December 31, 2022,” a note from the results stated.
Explaining the reason for this, the company said, “In 2022, the Nigerian economy took a downturn, and the negative perception of the occurrence of the 2023 general elections in Nigeria made businesses stall on making capital investment decisions which affected the sale of these assets.
“The group took necessary action to respond to the change in these circumstances through direct engagement with potential purchasers to complement the bidding approach originally planned.
“Furthermore, the assets have been impaired and are being actively marketed at a price that is reasonable to their fair value, given the change in circumstances.
“During the year, plants and machinery and motor vehicles with carrying amounts of N29.7 million and N4.8 million, respectively, were disposed of during the year through several bidding processes. Net gains of N7.1 million, which arose from the disposals, have been reported in other gains and losses in the statement of profit or loss under the non-operating segment. There are no cumulative income or expenses included in other comprehensive income relating to the assets held for sale.
“Subsequent to 31 December 2022, additional disposals with a carrying amount of N114 million have been made as at the date of approval of these consolidated and separate financial statements. Negotiations and contracting are currently ongoing with several potential buyers for the remaining assets yet to be disposed of, and the directors expect that all assets will be sold in 2023,” it said.
The 2023 general elections were conducted by the Independent National Electoral Commission (INEC), and Mr Bola Tinubu of the ruling All Progressives Congress (APC) was declared the president-elect, though his mandate is being challenged by Mr Peter Obi of the Labour Party and Mr Atiku Abubakar of the Peoples Democratic Party (PDP).
On Thursday, GSK released its financial statements for last year, and the board proposed the payment of a 55 Kobo dividend to shareholders.
This was after the organisation grew its revenue for the year to N25.4 billion from the N22.5 billion achieved in the preceding year, as the profit before tax closed at N1.2 billion as of December 31, 2022, in contrast to N945.8 million as of December 31, 2021, with the post-tax profit closing at N771.2 million compared with the previous year’s N658.8 million.
By Adedapo Adesanya
Manufacturers are yet to benefit from relief on the burden of multiple taxes and levies despite the enactment of the Nigeria Tax Act 2025, according to the Manufacturers Association of Nigeria (MAN).
The association, in its Manufacturers CEO Confidence Index (MCCI) report for the second quarter of 2026, said manufacturers continued to face multiple tax collectors and regulatory agencies during the period.
Director-General of MAN, Mr Segun Ajayi-Kadir, said the new tax law, which was expected to reduce the burden of multiple taxation, had yet to deliver the intended benefits.
“Manufacturers complained that they were still met with multiple tax collectors and regulators in Q2 2026. It follows that the implementation of the Nigeria Tax Act 2025 is yet to achieve its objective of relieving manufacturers of the burden of taxes and levies,” he said.
According to the report, Nigeria’s business environment remains largely unsupportive of manufacturing growth, with local sourcing of raw materials emerging as the only indicator that recorded noticeable improvement.
MAN, however, warned that the gains in local sourcing could be undermined by worsening insecurity in parts of the country.
The association attributed the improvement largely to persistent foreign exchange constraints, which have forced many manufacturers to source inputs locally.
Despite this, it said excessive regulation and multiple taxation continue to weigh heavily on manufacturers.
The report showed that manufacturers recorded a modest increase in sales volume during the second quarter, but rising production, distribution and logistics costs continued to erode profitability.
It added that capacity utilisation, production levels, investment and employment remained broadly unchanged during the review period.
MAN further observed that although recent foreign exchange reforms had helped stabilise the naira, inadequate foreign currency supply remained a major constraint to manufacturing operations.
Other key challenges identified in the report include poor infrastructure, high production costs, raw material shortages and unfavourable trade policies.
The association said the findings underscore the continued pressure on manufacturers despite recent fiscal and foreign exchange reforms, stressing the need for more effective implementation of policies aimed at improving the operating environment for the real sector.
By Adedapo Adesanya
The federal government spent N3.14 trillion on servicing its domestic debt in the first quarter (Q1) of 2026, according to the Debt Management Office (DMO).
The figure, contained in the DMO’s latest domestic debt service report for Q1 2026, comprised N2.97 trillion in interest payments and N169.68 billion in principal repayments.
According to the report, the government spent N741.82 billion on domestic debt service in January before the figure rose to N967.67 billion in February.
Debt service increased further to N1.43 trillion in March, bringing total spending for the quarter to N3.14 trillion.
The March figure represented a 47.7 per cent increase from the N967.67 billion recorded in February and was 92.7 per cent higher than the N741.82 billion spent in January.
The debt office said interest payments accounted for approximately 94.6 per cent of the total domestic debt service during the quarter.
Treasury bills accounted for the largest share of interest payments at N1 trillion, while interest payments on Federal Government bonds stood at N1.96 trillion.
The government also paid N4.24 billion in interest on FGN savings bonds during the period.
The debt management body said the principal component of the debt service comprised N169.68 billion in repayments on local-denominated promissory notes.
Overall, domestic debt service rose significantly throughout the quarter, with March alone accounting for nearly half of the N3.14 trillion spent between January and March.
By Aduragbemi Omiyale
The Director-General of the Securities and Exchange Commission (SEC), Mr Emomotimi Agama, has outlined how the Federal Capital Territory Administration (FCTA) can leverage Nigeria’s capital market to raise long-term funds for critical infrastructure projects instead of relying solely on annual budgetary allocations.
According to Mr Agama, the capital market offers the FCT a sustainable financing model for roads, rail, housing, water, transport and other infrastructure through instruments such as infrastructure bonds, green bonds, real estate investment trusts (REITs), asset recycling and tokenised municipal securities.
Speaking at the Abuja Business and Investment Summit and Expo (ABIE 2026) in Abuja, the SEC chief noted that Abuja’s development demonstrates that economic growth is driven by investment, stressing that “cities are not built by budgets alone. Cities are built by capital markets.”
He advised the FCT to establish a long-term infrastructure bond programme backed by dedicated revenue sources such as ground rents, tenement rates, tolls, parking fees and land-use charges, noting that this would enable the territory to finance major projects without overburdening annual budgets.
“A budget can only spend what a single year has collected. A bond can spend what 30 years will collect,” Mr Agama said, explaining that infrastructure projects generate long-term economic value that can be used to service debt over time.
The SEC boss said the territory could also access cheaper financing through green and sustainability-linked bonds for projects including mass transit, light rail, solar-powered street lighting, waste-to-energy facilities and water infrastructure.
He further proposed the creation of an FCT Real Estate Investment Trust to unlock value from Abuja’s extensive property portfolio while giving ordinary Nigerians an opportunity to invest in the city’s real estate market.
Mr Agama also urged Abuja Investments Company Limited (AICL) to consider listing some of its businesses or establishing a listed infrastructure fund, saying this would raise capital without increasing government debt while improving corporate governance and transparency.
On the long-abandoned Millennium Tower project, he said the estimated over N400 billion completion cost should not be viewed as a budgetary burden but as an investment opportunity that could be financed through a special purpose vehicle and offered to investors via the capital market.
“The question is not whether Nigeria can afford the Millennium Tower. The question is whether we will let ordinary Nigerians own it,” he said.
Mr Agama further proposed an asset recycling programme under which completed income-generating public assets, including terminals, markets, commercial properties and the International Conference Centre, could be securitised or concessioned to institutional investors, with proceeds reinvested in new infrastructure.
He also called on the FCT to pioneer a regulated tokenised municipal bond programme that would allow citizens to invest as little as N10,000 through mobile phones in specific infrastructure projects.
According to him, the recently enacted Investments and Securities Act (ISA) 2025 has strengthened the legal framework for sub-national governments to access the capital market while providing enhanced investor protection and clearer regulation of digital assets.
Mr Agama disclosed that Nigeria’s capital market has grown significantly, with total market capitalisation exceeding N217 trillion as of May 2026, comprising about N160.5 trillion in equities and N56.7 trillion in bonds.
He said recent reforms, including the migration to a T+1 settlement cycle and regulatory measures to deepen market participation, have improved market efficiency and strengthened investor confidence.
The SEC DG assured the FCTA of the commission’s readiness to provide technical support for structuring and registering capital market instruments, saying the agency would work closely with the territory to unlock financing for infrastructure projects.
He added that Nigeria’s capital market remains critical to mobilising domestic savings for national development, insisting that “money is not scarce; delivery capacity is scarce, and financing follows delivery capacity.”
