Economy
Free Float: Champion Breweries Plans Public Offer in Q1 2025
By Adedapo Adesanya
Champion Breweries Plc has announced plans to address its free-float deficiency by issuing new shares to the public on the Nigerian Exchange (NGX) Limited in the first quarter of 2025.
Speaking at the company’s Facts Behind the Figures Presentation at the NGX in Lagos, the Managing Director, Mr Inalegwu Adoga, said, “This initiative is expected to bolster the company’s infrastructure and enhance its production capacity, enabling it to meet the growing demand for its products.”
He assured shareholders and the entire capital market community of enhanced dividends in spite of the tough operating environment.
He said the company’s focus remained on returning value to shareholders, saying the company had embarked on successful implementation of cost-saving measures, including shift to renewable energy and localisation of supply chains to enhance profitability.
Mr Adoga said the company would prioritise action on renewable energy solutions by investing in progressive decarbonisation of its business.
He added that the company would reduce its cost profile to remain competitive in the industry, saying that it was the only listed Nigerian brewery brand that reported a profit in the 2023 financial year.
He said the company would drive revenue growth through market expansion and deliver superior growth by increasing customer centricity.
Mr Adoga added that the company would develop capabilities and a dynamic succession plan to attract and retain top talents.
According to him, the mission of the company is to become the undisputed market leader in beer and malt in the South-South and South East.
Mr Adoga said that most of the company’s suppliers were Nigerians and would be paid in local currency, thereby eliminating foreign exchange pressure.
He said the company had shown resilience in the past 50 years of operation while positioning itself for long-term growth and sustainability.
“Our nine months of 2024 performance reflects our ability to adapt and grow in a challenging environment.
“We are confident that our investments in operational efficiency, renewable energy, and market expansion will position us for even greater success in the coming years,” he said.
According to him, Champion Breweries remains the only Nigerian-owned brewery listed on the NGX.
He added that the company had a track record of profitability and operational resilience.
Mr Adoga said that Champion Breweries reported a revenue growth of 68 per cent, reaching N14.02 billion in nine months of 2024, compared to the corresponding period in 2023.
He said that in spite of the macroeconomic challenges, including the impact of foreign exchange losses that resulted in a pre-tax profit of N178 million, the company remained resilient, having fully settled its foreign liabilities in nine months of 2024 to mitigate foreign exchange volatility.
Also speaking, Mr Imo-Abasi Jacob, Chairman of the Board of Champion Breweries, expressed confidence in the company’s strategic direction.
He said that the company had demonstrated resilience and commitment to its shareholders and stakeholders in spite of challenging economic conditions.
“Our focus on operational efficiency, cost reduction and market expansion reflects our determination to deliver sustainable value and growth.
“We are confident that, with our renewed leadership and strategic initiatives, Champion will continue to thrive as a significant player in Nigeria’s beverage industry,” Mr Jacob said.
The event also highlighted the company’s new strategic direction under the core ownership of EnjoyCorp Ltd., which Managing Director, Mr David Butler, serves as a Director on Champion’s board.
Mr Butler said that EnjoyCorp’s industry expertise and operational insights had driven transformative initiatives within Champion Breweries, with a focus on cost management, market expansion and customer-centric innovations.
By Adedapo Adesanya
Market bellwethers, Central Securities Clearing System (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc, lifted the NASD Over-the-Counter (OTC) Securities Exchange by 2.08 per cent on Monday, August 3.
CSCS Plc, the Nigerian securities depository company, gained N10.00 to close at N112.00 per share compared with the previous session’s N102.00 per share, and FrieslandCampina Wamco Nigeria Plc advanced by N4.71 to quote at N152.64 per unit versus last Friday’s N147.93 per unit.
As a result, the NASD Security Index (NSI) added 92.14 points to finish at 4,523.85 points compared with the preceding session’s 4,431.71 points, and the market capitalisation appreciated by N55.31 billion to N2.715 trillion from N2.659 trillion.
Business Post reports that the price of MRS Oil Plc crashed during the trading day by N12.00 to N120.00 per share from N132.00 per share, and UBN Property Plc dipped by 3 Kobo to N1.90 per unit from N1.93 per unit.
Trading data showed that the volume of securities exchanged rose by 113.1 per cent to 1.5 million units from 690,990 units, and the number of deals climbed by 19.2 per cent to 31 deals from 26 deals, while the value of securities slid by 13.1 per cent to N65.2 million from N75.0 million.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 76.8 million units traded for N5.5 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) has introduced a 1.5 per cent stamp duty on eligible virtual asset transactions, with the tax deducted directly from the cryptocurrency purchased before it is credited to the buyer’s wallet.
According to the new guidelines issued on Monday, anyone buying Bitcoin (BTC), USDT or other cryptocurrencies in Nigeria will receive fewer digital assets due to the deduction.
This requires registered crypto exchanges and other Virtual Asset Service Providers (VASPs) to withhold the levy in the digital asset being traded and remit it to the government, marking Nigeria’s most comprehensive move yet to bring cryptocurrency transactions into the country’s tax net.
Unlike traditional taxes deducted from a customer’s bank account, the 1.5 per cent charge will be taken from the cryptocurrency itself, meaning buyers will receive less Bitcoin, USDT or other tokens than they paid for.
The tax body stated that “income tax deducted at source and stamp duty shall be remitted to the service in the originating token of the transaction.”
Besides the new stamp duty, the guidelines also clarify how income tax, Value Added Tax (VAT) and other tax obligations will apply to virtual asset activities such as trading, staking, mining and other crypto-related transactions.
To illustrate the new rule, the tax authority said a buyer who pays N1 million for one Bitcoin will receive only 0.985 BTC after 0.015 BTC is deducted as stamp duty and remitted to the government. When that Bitcoin is later sold, the next buyer will also have 1.5 per cent deducted from the cryptocurrency credited to their wallet.
The NRS said the guidelines are intended to provide clarity for taxpayers, crypto exchanges, peer-to-peer (P2P) marketplace operators, financial institutions, tax consultants and all participants in Nigeria’s virtual asset ecosystem.
According to the guidelines, the 1.5 per cent duty applies to eligible virtual asset transactions facilitated through registered exchanges and other recognised intermediaries. Where a cryptocurrency is used to complete a transaction that already attracts stamp duty under the law, the applicable duty on the underlying instrument will also be payable.
For crypto users, the implication is higher transaction costs, as eligible purchases will attract the 1.5 per cent stamp duty, while VAT on exchange service fees and income tax on taxable gains may also apply, depending on the nature of the transaction.
By Adedapo Adesanya
The Naira opened the week on a positive note, as it appreciated against the US Dollar by N3.39 or 0.25 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, August 3, to N1,364.83/$1 from N1,368.22/$1 last Friday.
However, it suffered a marginal decline against the Pound Sterling in the official market during the session by 10 Kobo to close at N1,837.89/£1 compared with the preceding session’s N1,837.79/£1, and lost 6 Kobo on the Euro to sell at N1,573.93/€1, in contrast to the previous trading day’s N1,573.87/€1.
At the black market segment, the Nigerian currency traded flat against the Dollar yesterday at N1,405/$1, and at the GTBank forex counter, it was unchanged at N1,374/$1.
Interbank FX transactions increased sharply as market makers’ activities raised total Dollar volume exchanged to $137.048 million, more than 132 per cent above $58.990 million in turnover at the previous close. The surge in turnover was driven by increased deals at the NFEM window. The central bank reported that deal count at the interbank FX window rose to 138 from 67 on Friday.
As for the cryptocurrency market, major tokens advanced despite ongoing uncertainty around unresolved Coldcard wallet sweeps that have drained hundreds of Bitcoin (BTC), while traders are watching whether bitcoin can hold above $63,000 through the US session. BTC rose by 1.70 per cent to $63,765.88.
Bitcoin treasury firm Strategy disclosed Monday it sold 1,638 bitcoin for about $105 million between July 27 and Aug. 2, its third sale of 2026, per an SEC filing.
Also, an attacker has moved about 1,816 bitcoins, or roughly $114 million, from more than 5,200 addresses since July 30 in a fourth wave of sweeps targeting BTC in Coldcard-generated addresses.
Cardano (ADA) appreciated by 6.7 per cent to $0.1959, Binance Coin (BNB) gained 1.5 per cent to sell for $590.82, Solana (SOL) jumped by 1.3 per cent to $73.72, TRON (TRX) soared by 0.9 per cent to $0.3286, Dogecoin (DOGE) also grew by 0.9 per cent to $0.0703, Ripple (XRP) advanced by 0.5 per cent to $1.07, and Ethereum (ETH) rose by 0.4 per cent to $1,863.33, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
