Economy
Investors Lose N281b In 8 Months
By Modupe Gbadeyanka
According to a report by Vanguard, investors in Nigeria’s stock market lost about N281 billion of their investment value in the past eight months as the ongoing economic recession continues to hit the financial market.
This is just as stockbrokers continued to lament over difficult operating environment which has placed their businesses in difficulties.
Vanguard findings showed that the Nigerian Stock Exchange (NSE) market capitalisation, which represents the value of total investment in the stock market by investors, dropped by N281 billion or 2.9 per cent from N9.850 trillion it opened in the first trading day of January this year to close at N9.569 trillion last week Friday.
Another stock market gauge, the NSE All share index dropped by 2.7 per cent or 783.77 points from 28, 642.25 points it opened in January to close last week at 27,599.03 points.
Meanwhile, stockbrokers have said that the on-going economic recession continues to affect the financial market with dire consequences on the income streams of the capital market operators and has given them concern for their continued existence.
According to stockbrokers, “There is a deep concern that the current operating environment characterised by high interest rate, weak purchasing power, poor corporate earnings, unstable exchange rate , high inflation rate and investors’ apathy among others are fast eroding our dwindling income fuelling speculation that many of us may be pushed completely out of the business.
“So, if the government does not intervene appropriately we may be forced to go out of business and this will affect our employees and put them in the unemployment market.”
Painting the gloomy picture of the stockbrokers’ weak financial situation, the Managing Director and Chief Executive Officer, Standard Union Securities, Mr Sehinde Adenagbe said it would be difficult for stockbrokers to break even under the current climate.
“Overhead cost is rising steadily and workers are clamouring for higher pay to cope with the high cost of living. Office rent, epileptic power supply and transport costs are of great concerns to us and there are other contending issues that are eating deeply into the incomes of stockbrokers,” Mr Adenagbe posited.
Speaking on the survival strategy, the President and Chairman of Governing Council, Chartered Institute of Stockbrokers (CIS), Mr Oluwaseyi Abe advocated personal development on the part of the stockbrokers in order to expand their income streams.
“Recession is a time to take a breath. Invest on knowledge this time and be moderate. Stockbrokers should be multitasking to be relevant on all platforms and Exchanges.
“Also, they should not forget the age-long advice of an investment expert, Warren Buffet whose ideals covered risk taking, savings, expectation and earnings among others as survival strategy,” Mr Abe said.
Agreeing with Mr Abe’s submission, the Registrar and Chief Executive, CIS, Mr Adedeji Ajadi advised stockbrokers to be more creative and ready for diversification in order to remain in business. “This is not the time to limit business opportunities to trading listed securities. What about bonds, unlisted equities and foreign exchange?
“Stockbrokers are also investment advisers. This is the right time to work with governments at various levels as consultants and advisers on how to create alternative sources of revenue, and better manage scarce resources to ride through the challenges of the economy at this time,” Mr Ajadi said.
Managing Director and Chief Executive Officer, Network Capital Limited, Mr Oluropo Dada said there is the need for stockbrokers to leverage their wide professional latitude to go into money market instruments by way of portfolio switching in favour of money market instruments such as Treasury bills.
Mr Dada described money market instruments as very attractive at present as the federal government is deploying them to attract foreign investors.
“This possibly accounts for massive sell-offs of some stocks in the market. Stockbrokers are now buying instruments with strong fundamentals like Nestle Foods and Nigeria Breweries for proprietary trading to remain in business in this period of recession,” Mr Dada said.
The Chief Executive Officer, NASD OTC Exchange, Mr Bola Ajomale simply urged stockbrokers to wear their investment banking cap and work on buy-outs, mergers and growth of Small and Medium Scale Enterprises (SMEs) in order to cope with the current realities.
The Chief Executive Officer, Finawell Capital Limited, Mr Tunde Oyekunle advised stockbrokers to consider alternative income streams such as setting up of a strong fixed income desk to trade bonds and forex. He also recommended commodity trading and Derivatives such as forward contracts to boost income in the wake of recession.
Mr Oyekunle’s view was corroborated by the Chief Dealer, Coo Hedge Securities and Investment, Mr Samuel Ndata who urged his colleagues to diversify whatever little income in stockbroking to agriculture in order to stay afloat.
Mr David Adonri, the Chief Executive Officer, Highcap Securities Limited stated that to remain in business, stockbrokers must embark on austerity measures by cutting cost and patiently awaiting recovery of the economy.
The Relationship Officer, Foresight Securities and Investment Limited, Mr Fakrogba Charles who noted that economy moves in cycles said that stockbrokers should advise investors to invest in value stocks as recession is not a permanent feature.
In his response, the Principal Partner and Chief Executive Officer, Alicorn Consulting Limited, Mr Segun Oye simply explained that, “Recession comes with external factors that can only be managed by aggressive reduction of overhead and option of innovative diversification.
Speaking as well on the economic recession in the country, Managing Director/CEO, B. Adedipe Associates, Dr Biodun Adedipe, said that the recession is bad news for all stakeholders, and it also demands creativity and pragmatism to reverse. He tasked the government to provide leadership by spending more, especially on infrastructure to prevent a full blown depression and push for economic recovery.
Dr Adedipe further charged the government on the need to make business environment more friendly, ensure policy alignment with expansionary necessity and press more into transparency and value for money spending.
According to him, the government needs to revisit the exchange rate policy — the current arrangement is counterproductive for an import dependent economy with weak real sector.”
Also speaking on this development, Managing Director, Cowry Asset Management Limited, Mr Johnson Chukwu, said that with the economy going into a recession, there is the likelihood of more job losses as consumer demand declines further.
“I think that our economic managers at both the fiscal and monetary sides need to evolve coordinated stimulus response to inject liquidity into the System and reverse the economic decline,” he said.”
He, however, urged the nation’s economy managers on why emphasis should be shifted from fighting high rate of inflation to intensifying efforts in restoring economic growth.
In a similar direction, Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr Muda Yusuf, said government should work to rekindle investors’ confidence in the economy because capital and investment flows from investors are needed to complement government’s developmental drives. His words, “government can rekindle investors’ confidence in the economy by the quality and consistency of its policies.”
http://www.vanguardngr.com/2016/09/recession-investors-lose-n281bn-less-9-months/
By Adedapo Adesanya
Pathway Advisors Limited has announced its role as Lead Issuing House to a N300 billion Commercial Paper Programme for Pivot Integrated Energy Services Limited, reinforcing its leadership in capital market advisory and energy sector finance.
The transaction was formally concluded with the execution of programme documentation at Capital Club, Victoria Island, Lagos, following the completion of all regulatory and programme clearances. The signing ceremony marked a defining milestone in mobilising large-scale short-term capital for Nigeria’s downstream petroleum sector.
Speaking at the event, the chief executive of Pathway Advisors Limited, Mr Adekunle Alade, emphasised the strategic significance of the Commercial Paper issuance in financing working capital, thereby enabling high-growth energy businesses to scale efficiently and sustainably.
“Nigeria’s downstream energy sector is undergoing a profound transformation, accelerated by the removal of fuel subsidies, the emergence of domestic refining capacity, and rising demand for reliable product supply across the country and the broader West African region.
“Companies like Pivot Integrated Energy Services Limited with a vertically integrated model, a strong track record, and a clear growth mandate are exactly the kind of issuers that the capital markets should be financing,” Mr Alade stated.
“Commercial paper, when structured appropriately, gives operationally strong businesses access to a deep and diverse pool of institutional investors, at tenors and costs that support the working capital intensity of petroleum trading and distribution. This transaction is a testament to what is achievable when credible issuers partner with experienced advisers to access the markets,” he added.
“The successful execution of this programme further affirms Pathway Advisors’ position as a trusted financial advisory and investment banking firm in complex, large-scale capital market transactions,” he stated.
In his comments, the chief executive of Pivot Integrated Energy Services Limited, Mr Babajide Babatope, described the commercial paper programme as a pivotal step in the company’s strategy to expand its supply capacity and strengthen its position as a leading integrated energy provider in Nigeria and West Africa.
“Nigeria’s downstream energy market demands scale, speed, and the right capital structure to compete effectively. This commercial paper programme gives us the financial firepower to support our growing volumes, reinforce our supply chain, and serve our customers with greater reliability across the regions we operate in,” Mr Babatope disclosed.
He noted that Pivot is one of the 20 approved off-takers in the Dangote Refinery PMS Consortium, with a target volume of 300 million litres per quarter, a position that underscores the company’s standing in Nigeria’s post-subsidy energy supply architecture. He added that the CP Programme would also support the company’s accelerating regional push, including active operations in Ghana, where Pivot has delivered over 100,000 MT since April 2025, and a planned entry into Tanzania with deliveries targeted in Q3 of 2026.
Mr Babatope further expressed appreciation to Pathway Advisors and other transaction parties for their professionalism, rigour, and commitment throughout the programme’s execution, and signalled his intention to continue deepening these partnerships as Pivot advances to subsequent phases of growth and financing.
By Adedapo Adesanya
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has secured a $12 billion commitment from South Korea to establish a Skills Acquisition Centre in Abuja, as part of efforts to strengthen entrepreneurship and boost small businesses across Nigeria.
The chief executive of SMEDAN, Mr Charles Odii, disclosed this over the weekend during a road walk and sensitisation campaign at Utako Market in Abuja to commemorate the 2026 World MSME Day.
According to Mr Odii, the proposed facility will provide vocational and entrepreneurial training to young Nigerians and enhance the capacity of Micro, Small and Medium Enterprises (MSMEs).
He said the agency is awaiting the allocation of land by the Federal Capital Territory (FCT) Administration for the project.
“We need land in the FCT to build the Skills Acquisition Centre. If the FCT Administration is unable to provide one, we will use our office premises in Idu, Abuja, because we do not want Nigeria to miss this opportunity offered by the Korean Government to support skills and vocational training,” he said.
As part of activities marking the World MSME Day, Mr Odii also announced the launch of SMEDAN’s N500 million GROW Fund, a zero-interest financing intervention designed to support small businesses across the country.
He explained that the fund would be disbursed to members of registered cooperative societies and business associations to strengthen their enterprises.
According to him, beneficiaries are expected to utilise the funds strictly for business purposes, including expanding working capital, acquiring workspaces and purchasing equipment.
“The funding is meant to support and improve their businesses. It should be used for working capital, workspaces, tools and other productive business needs. Any use outside these objectives will not be encouraged,” he said.
Mr Odii further disclosed that entrepreneurs trained by SMEDAN in Abuja would receive vocational equipment, including washing machines, barbing kits, shoemaking tools and sewing machines, to enable them to become self-reliant.
“We have identified these tools as essential to the businesses of our trainees based on the skills programmes they have undergone,” he added.
The SMEDAN boss stressed that the agency’s interventions are driven by the critical role MSMEs play in Nigeria’s economy.
“Small businesses are the heartbeat of Nigeria’s economy. By providing infrastructure, skills and financing, we are creating an enabling environment for them to grow, thrive and contribute meaningfully to national development,” he said.
Odii also revealed that the National MSME Policy would be reviewed and relaunched in November 2026 to strengthen the sector and improve its contribution to economic growth.
He called on state governments to collaborate with SMEDAN in expanding skills acquisition programmes, creating jobs, reducing poverty and supporting the economic development agenda of President Bola Tinubu’s administration.
By Adedapo Adesanya
The Dangote Petroleum Refinery has purchased two cargoes of crude oil from the United Arab Emirates (UAE), marking its first-ever procurement of Middle Eastern crude as it diversifies its feedstock sources ahead of continuous expansion.
According to a report by S&P Global Commodity Insights, the two cargoes will be the first sourced by the 700,000-barrels-per-day refinery from any Middle Eastern supplier, signalling a shift from its traditional reliance on Nigerian, African, and United States crude grades.
The report said the purchases followed the resumption of oil exports from the Middle East after the United States and Iran reached an interim peace agreement that restored confidence in shipping through the Strait of Hormuz.
The refinery, designed primarily to process Nigeria’s light sweet crude, has increasingly diversified its crude slate as operations ramp up. The company sources crude from Brazil, Equatorial Guinea, Angola, Algeria, and the US, among others.
The refinery and the Nigerian National Petroleum Company (NNPC) Plc had agreed on the supply of between 13 and 15 cargoes of Nigerian crude monthly in Naira, but the volumes often fluctuate. In May, the state oil company allocated seven cargoes to the plant, up from five in previous months.
The chief executive of the Dangote Refinery, Mr David Bird, had previously disclosed that these constraints had compelled the company to seek additional crude sources outside Nigeria.
According to S&P Global, the refinery has been broadening the range of crude grades it processes as part of its ambition to operate as a fully merchant refinery. The report noted that in 2025, about 70 per cent of the refinery’s crude imports came from Nigeria, while 24 per cent originated from the United States.
The report added that the refinery’s expansion plans would further increase its crude requirements. Dangote plans to double the refinery’s processing capacity to 1.4 million barrels per day by the end of 2028, a level that would enable it to process about 80 per cent of Nigeria’s recent crude oil production in a single day.
Business Post understands that since NNPC cargoes are cheaper for the refinery because of lower shipping costs, importation of crude could translate to higher fuel prices, with Nigerians possibly buying as high as N1,300 – N1,400 at the pump.
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