Economy
JP Morgan Warns Nigeria’s Inflation May Hit 28%
By Adedapo Adesanya
The American investment bank, JP Morgan, has warned that Nigeria’s headline inflation would likely not slow down in the near term as it forecast that it could reach a high of 28 per cent by the end of the year.
The bank, in its market research document on the Nigerian economy titled, Reform pause rather than fatigue released over the weekend, showed that the rate would climb higher as the policies of President Bola Tinubu will impact the prices of goods and services in the country.
Last week, the National Bureau of Statistics (NBS) said the country’s headline inflation hit an 18-year-high of 24.08 per cent in July, in contrast to 22.79 per cent in the prior month, spurred by surging food prices and energy costs.
The JP Morgan report noted that the July high inflation reading is early evidence of the impact of the fiscal and foreign exchange (FX) reforms, which will continue to push up the headline inflation in the coming months.
“Higher parallel market rates in recent weeks are likely to have an impact on August’s inflation reading and will be most noticeable in higher food and core prices,” the bank said in the document seen by Business Post.
As corrective measures, the lender advised that the Central Bank of Nigeria (CBN) maintain the current monetary policy rate (MPR) at 18.75 per cent for the rest of the year. In July, the Monetary Policy Committee (MPC) raised the benchmark interest rate by 25 basis points, indicating that the aggressive tightening might be winding down.
JP Morgan lauded the Tinubu administration, saying that it has demonstrated commitment to economic reforms even though there seems to be a pace in the progress made since the inception of the current administration.
However, it warned that the era of subsidy payment may return with the government’s intention to freeze the price of fuel at its current level.
It, however, showed evidence that the government is currently not subsidising the commodity.
“This is because we estimate that at current average retail prices (NGN617/ltr), crude oil prices (US$85/barrel) and the parallel market exchange rate (900), authorities are not currently subsidising petrol,” the document quoted, adding that, “However, invariably, a further rise in these key variables and government’s insistence on keeping petrol prices flat will result in a return of subsidies.”
The bank also stressed that the pace of the reforms relating to fiscal adjustments and the FX market could be slow, given the significant inflationary pressure on the economy.
By Adedapo Adesanya
Shareholders of Dangote Cement Plc have approved plans that could pave the way for the company’s secondary listing on the London Stock Exchange (LSE) while also endorsing a final dividend of N45.00 per ordinary share for the 2025 financial year.
The resolutions were passed at the company’s 17th Annual General Meeting (AGM) held on Thursday at Eko Hotels & Suites in Lagos, where shareholders also approved the audited financial statements for the year ended December 31, 2025.
The approval for an international secondary listing marks a significant step in Dangote Cement’s plans to broaden its access to global capital markets and enhance its international investor base.
In May, the company’s founder Mr Aliko Dangote said the cement subsidiary was planning a London listing to sell 10 per cent stake, sixteen years after debuting on the Nigerian Exchange (NGX) Limited. This would provide the company with the much-needed boost to compete in the United Kingdom market.
Shareholders also ratified the payment of a final dividend of N45.00 per ordinary share from the company’s retained earnings as of December 31, 2025. The dividend was paid on Thursday, July 2, 2026.
At the meeting, shareholders approved the appointment of Ms Mariya Aliko-Dangote to the company’s board of directors. In recent months, the eldest daughter of the billionaire as well as her sisters Halima and Fatima, have been strategically positioned across their father’s empire in what has been touted as succession plans.
They also re-elected four directors retiring by rotation: Mr Emmanuel Ikazoboh, an Independent Non-Executive Director; Mr Olakunle Alake, a Non-Executive Director; Ms Berlina Moroole, a Non-Executive Director; and Mr Alvaro Poncioni Merian, an Independent Non-Executive Director.
In addition, shareholders authorised the board to determine the remuneration of the company’s external auditors for the 2026 financial year.
The AGM also noted the disclosure of managers’ remuneration in compliance with the provisions of the Companies and Allied Matters Act (CAMA) 2020.
Shareholders further approved the election of Mr Robert Ade-Odiachi, Mr Sheriff Yussuf Mojirola and Mr Nicholas Nyamali as shareholders’ representatives on the Statutory Audit Committee. They will serve alongside the company’s representatives, Mr Ernest Ebi and Mr Olakunle Alake, until the next AGM.
They also approved annual remuneration of N20 million for the chairman and N15 million each for the non-executive directors for the financial year ending December 31, 2026.
By Dipo Olowookere
The activity level on the Nigerian Exchange (NGX) Limited improved last week after market participants traded 3.821 billion stocks worth N154.393 billion in 258,567 deals compared with the 2.324 billion stocks valued at N134.486 billion transacted in 249,328 deals in the preceding week.
Analysis showed that financial equities dominated with 2.330 billion units sold for N54.606 billion in 108,978 deals, accounting for 60.99 per cent and 35.37 per cent of the total trading volume and value, respectively.
Services stocks recorded a turnover of 509.473 million units worth N16.353 billion in 16,527 deals, and consumer goods shares recorded 216.344 million units valued at N8.057 billion in 25,963 deals.
Sterling Holdings, Access Holdings, and Ikeja Hotel were the busiest stocks, accounting for 1.405 billion units worth N28.370 billion in 12,898 deals, contributing 36.78 per cent and 18.37 per cent to the total trading volume and value, respectively.
The best-performing equity for the week was Airtel Africa, which gained 21.00 per cent to sell for N5,274.00. Regency Assurance grew by 20.25 per cent to 95 Kobo, UPDC expanded by 12.31 per cent to N3.65, DAAR Communications rose by 7.84 per cent to N1.65, and SUNU Assurances increased by 7.50 per cent to N3.87.
The worst-performing equity was International Energy Insurance, which fell by 18.83 per cent to N4.70, McNichols slumped by 18.60 per cent to N7.00, University Press crashed by 17.54 per cent to N4.70, RT Briscoe dipped by 13.98 per cent to N10.15, and UPDC REIT moderated by 13.00 per cent to N8.70.
Business Post reports that 22 shares appreciated during the week, the same as the previous week, and 57 equities depreciated, the same as a week earlier, while 67 stocks remained unchanged, the same as the preceding week.
The All-Share Index (ASI) and the market capitalisation closed lower by 1.21 per cent in the five-day trading week to 229,240.34 points and N147.103 trillion, respectively.
Similarly, all other indices finished lower apart from the main board, which chalked up 2.27 per cent.
By Adedapo Adesanya
The Securities and Exchange Commission (SEC) has cleared seven new fintech and digital asset firms for admission into its Accelerated Regulatory Incubation Programme (ARIP), granting them Approval-in-Principle (AIP) to operate within the programme’s regulatory sandbox as part of efforts to promote innovation while protecting investors.
The commission said the move reinforces its commitment to fostering responsible innovation that deepens Nigeria’s capital market without compromising market integrity.
The seven firms set for admission into the programme are Bitbarter Technologies Limited, Luno Fintech Nigeria Limited, GetEquity Limited, Koinkoin Global Network Limited, Wrapped CBDC Ltd, Trovotech Ltd and Blockvault Custodian Ltd.
According to the SEC, the Approval-in-Principle permits the firms to operate within the defined scope of the programme, subject to conditions stipulated by the Commission.
It clarified that the approval is not a final operating licence but confirms that each entity has satisfied the admission requirements for ARIP.
“An Approval-in-Principle confirms that an entity has satisfied the Commission’s admission requirements for the Programme. It is not a final licence and remains conditional on the entity’s continued compliance with all applicable regulatory, operational, and supervisory obligations,” the Commission stated.
The ARIP is a controlled regulatory environment established by the SEC to accelerate the onboarding of digital asset and other investment service providers, including Virtual Asset Service Providers (VASPs) and tokenised product platforms.
The programme enables the Commission to evaluate emerging business models and financial technologies under regulatory supervision before they are offered to the investing public.
According to the commission, the initiative is designed to ensure that adequate safeguards are in place to protect investors while preserving the integrity of Nigeria’s capital market.
The SEC reiterated its commitment to supporting innovation that enhances efficiency, transparency, financial inclusion and sustainable growth in the capital market through initiatives such as ARIP.
It also urged members of the public to verify the regulatory status of individuals or organisations promoting investment products or services through its official channels before committing funds.
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