Economy
Lafarge Africa Stock Gets Buy Rating
By Dipo Olowookere
One of the leading cement firms, Lafarge Africa Plc, which trades its stocks on the Nigerian Stock Exchange (NSE), has witnessed a positive momentum at the market lately.
Just when some observers thought the stock would struggle at the exchange, especially after its former CEO, Mr Michel Puchercos, was poached by its arch rival, Dangote Cement, it has been performing beyond expectations.
Recently, the company released its financial statements for the 2019 fiscal year and it became very clear that its South African arm had been the spanner in its works. With its exit, the organisation is tipped to take charge of its sector.
In the past days and weeks at the stock market, Lafarge Africa has not done badly and according to analysts at CardinalStone, investors should not waste time to load more of the company’s equities because it has the potential to sell at over N19 per unit later. At the moment, the share price is just below N12, precisely N11.50.
“Notwithstanding the current shock, we believe Lafarge remains a compelling proposition in the medium-to-long term due to its recent restructurings.
“Notably, the company’s cash flow position is likely to recover strongly in FY’22 alongside expected pick up in domestic macro,” analysts at the Lagos-based firm said.
It was noted that the cement industry in Nigeria is anticipated to witness 16.0 percent year-on-year decline in production this year due to the impact of the coronavirus.
However, Lafarge Africa is expected to slightly underperform the sector with a 17.6 percent y-o-y contraction in cement output due to “intensifying competition from BUA Cement across Lafarge Africa’s support hubs in the Northern and Southern zones of the country.”
It was projected that the revenue of Lafarge Africa will decrease in FY’20 by 17.6 percent to N175.5 billion and by a further 4.3 percent to N168.0 billion in FY’21 estimates.
“However, we expect a resurgence afterwards in line with the cyclicality of the company, with revenue likely to grow by an average of 8.8 percent between FY’22E and FY’24E,” the report said.
CardinalStone said one thing that should work in favour of the cement firm this year is its cost cutting measures across power; energy; and general administrative expenses, which was witnessed in FY’19, where the company reduced its operating costs by 21.9 percent.
“In FY’20, we believe this cost-saving measures could slightly taper the potentially huge impact of lower cement volumes on margins.
“We, however, note that the ongoing crisis is likely to delay the commissioning of Ashaka’s captive power plant project, which was expected to reduce cost in the North East,” it stated.
By Adedapo Adesanya
Dangote Petroleum Refinery imported a total of $3.74 billion) worth of crude oil in 2025, to make up for shortfalls that threatened the plant’s 650,000-barrel-a-day operational capacity.
The data disclosed in the Central Bank of Nigeria’s Balance of Payments report noted that “Crude oil imports of $3.74 billion by Dangote Refinery” contributed to movements in the country’s current account position, as Nigeria imported crude oil worth N5.734 trillion between January and December 2025.
Last year, as the Nigerian National Petroleum Company (NNPC), which is the refinery’s main trade partner and minority stakeholder, faced its challenges, the company had to forge alternative supply links. This led to the importation of crude from Brazil, Equatorial Guinea, Angola, Algeria, and the US, among others.
For instance, in March 2025, the company said it now counts Brazil and Equatorial Guinea among its global oil suppliers, receiving up to 1 million barrels of the medium-sweet grade Tupi crude at the refinery on March 26 from Brazil’s Petrobras.
Meanwhile, crude oil exports dropped from $36.85 billion in 2024 to $31.54 billion in 2025, representing a 14.41 per cent decline, further shaping the external balance.
The report added that the refinery’s operations also reduced Nigeria’s reliance on imported fuel, noting that “availability of refined petroleum products from Dangote Refinery also led to a substantial decline in fuel imports.”
Specifically, refined petroleum product imports fell sharply to $10.00 billion in 2025 from $14.06 billion in 2024, representing a 28.9 per cent decline, while total oil-related imports also eased.
However, this was offset by a rise in non-oil imports, which increased from $25.74 billion to $29.24 billion, up 13.6 per cent year-on-year, reflecting sustained demand for foreign goods.
At the same time, the goods account remained in surplus at $14.51 billion in 2025, rising from $13.17 billion in 2024, supported largely by activities linked to the Dangote refinery and improved export performance in other segments.
The CBN stated that the stronger goods balance was driven by “significant export of refined petroleum products worth $5.85bn by Dangote Refinery,” alongside increased gas exports to other economies.
Nigeria posted a current account surplus of $14.04 billion in 2025, lower than the $19.03 billion recorded in 2024 but significantly higher than $6.42 billion in 2023. The decline from 2024 was driven partly by structural changes in oil trade flows, including crude imports for domestic refining, according to the report.
Pressure on the current account came from higher external payments. Net outflows for services rose from $13.36 billion in 2024 to $14.58 billion in 2025, driven by increased spending on transport, travel, insurance, and other services.
Similarly, net outflows in the primary income account surged by 60.88 per cent to $9.09 billion, largely due to higher dividend and interest payments to foreign investors.
In contrast, secondary income inflows declined slightly from $24.88 billion in 2024 to $23.20 billion in 2025, as official development assistance and personal transfers weakened, although remittances remained a key source of inflow, as domestic refineries grappled with persistent feedstock shortages, exposing a deepening supply paradox in the country’s oil sector.
This comes despite the Federal Government’s much-publicised naira-for-crude policy designed to prioritise local supply.
By Aduragbemi Omiyale
An application has been submitted by Sovereign Trust Insurance Plc for its proposed N5.0 billion rights issue.
The application was sent to the Nigerian Exchange (NGX) Limited, and it is for approval to list shares from the exercise when issued to qualifying shareholders.
A notice signed by the Head of Issuer Regulation Department of the exchange, Mr Godstime Iwenekhai, disclosed that the request was filed on behalf of the underwriting firm by its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities.
The company intends to raise about N5.022 billion from the rights issue to boost its capital base, as demanded by the National Insurance Commission (NAICOM) for insurers in the country.
Sovereign Trust Insurance plans to issue 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026.
“Trading license holders are hereby notified that Sovereign Trust Insurance has through its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities, submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026,” the notification read.
By Adedapo Adesanya
Food Concepts Plc, the parent company of fast food brands like Chicken Republic and PieXpress, has disclosed plans to pay 10 Kobo in interim dividend to new and existing shareholders for the 2026 financial year.
This was disclosed by the company in a notice to the NASD Over-the-Counter (OTC) Securities Exchange, where it trades its securities.
The notice indicated that the proposed interim dividend, which comes with no bonus, will be paid to those who hold the stocks of the company as of the qualification date for the dividend, which was Tuesday, March 24.
This means only those who hold the company’s shares as of the closing session will be eligible to receive the stipulated dividend payment.
The shareholders of the company will be credited with the 10 Kobo dividend on Tuesday, March 31.
The notice noted that the closure of the company’s register will be on Wednesday, March 25, through Friday, March 27, 2026, both days inclusive.
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