Economy
Moody’s Downgrades Seplat, Two Others
By Aduragbemi Omiyale
The ratings of three non-financial corporates in Nigeria have been downgraded by Moody’s Investors Service on the back of the weakening of the federal government’s credit profile.
The affected organisations are Seplat Energy Plc, Dangote Cement Plc, and IHS Holding Limited.
In a statement issued on Friday, the rating agency said it has also repositioned the national scale corporate family rating (CFR) of Dangote Cement to A3.ng from Aa3.ng to reflect the mapping of Global Scale Ratings to National Scale Ratings.
Moody’s noted that though the corporates have relatively prudent financial policies, adequate liquidity, moderate to low leverage and strong business profiles, they are still constrained by the foreign currency country ceiling because they are materially exposed to Nigeria’s economic, political, legal, fiscal and regulatory environment.
Seplat is less exposed to convertibility risk, given most of its revenue is paid in dollars. However, its export dollar oil revenue must be repatriated back into Nigeria within 90 days of receipt, after which Seplat can transfer these US dollar funds back into offshore bank accounts, the rating firm said.
It stated that to date, Seplat has had no restrictions imposed by the Central Bank of Nigeria (CBN), and the company targets 70 per cent of total cash balances in Dollars and 70 per cent of that in offshore accounts.
Seplat’s $650 million senior unsecured notes are due in 2026, and the company has a good liquidity profile supported by $305 million of cash on the balance sheet and full access to the $350 million undrawn revolving credit facility as of September 2022.
As for Dangote Cement, Moody’s said its high proportion of dollar debt in the capital structure exposes the company to currency convertibility risk.
It noted that while the cement firm continues to grow its dollar revenue through exports and repatriation of dollar cash flow from its other African operations, it still relies on the CBN for foreign exchange (FX), which remains restricted.
The company’s liquidity profile is adequate but is exposed to ongoing refinancing risks because of the large portion of short-term debt equal to N326 billion, representing 60 per cent of total debt as of June 30, 2022. It also benefits from strong cash flow generation, with cash balances of N194 billion as of June 30, 2022.
As for IHS, the renowned rating company said its downgrade also reflects exposure to currency convertibility risk, which over time will weaken the company’s liquidity position if it is unable, for a prolonged period, to upstream cash flow generated in Nigeria to the group level.
IHS earns around 67 per cent of its EBITDA from Nigeria, denominated in Naira, but its contracts are either dollar-linked or have Naira CPI pricing escalators that allow the company to pass through most of the cost inflation or currency depreciation it is exposed to.
“Nevertheless, the fact that revenues are invoiced in Naira exposes the company to Dollar shortages in the country and the resulting convertibility risk.
“IHS serves its dollar bonds through cash upstreamed to the group by its international operations, the largest one of which is in Nigeria,” it said.
Moody’s noted that during the six months to June 2022, IHS upstreamed $147 million of cash from Nigeria, in addition to regular upstreams from other operating companies.
It said liquidity remains good and is supported by a cash balance of around $500 million outside of Nigeria as well as a $270 million fully available liquidity facility, which Moody’s expects will provide the company with adequate liquidity for the next 2-3 years even in the case it was unable to upstream any cash flow from Nigeria over this timeframe.
Recall that last week, Moody’s downgraded Nigeria’s local currency country ceiling to B1 from Ba3 and the foreign currency country ceiling to B3 from B2.
By Adedapo Adesanya
TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the divestment of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
The Renaissance JV, formerly known as the SPDC JV, is an unincorporated joint venture between Nigerian National Petroleum Company Limited (55 per cent), Renaissance Africa Energy Company Ltd (30 per cent, operator), TotalEnergies EP Nigeria (10 per cent) and Agip Energy and Natural Resources Nigeria (5 per cent), which holds 18 licences in the Niger Delta.
In a statement by TotalEnergies on Wednesday, it was stated that under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil.
Production from these licences, it was said, represented approximately 16,000 barrels equivalent per day in company’s share in 2025.
The agreement also stated that TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the three other licences of Renaissance JV which are producing mainly gas, namely OML 23, OML 28 and OML 77, while TotalEnergies will retain full economic interest in these licences, which currently account for 50 per cent of Nigeria LNG gas supply.
Business Post reports that the conclusion of the deal is subject to customary conditions, including regulatory approvals.
“TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the sale of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
“Under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell to Vaaris its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil. Production from these licences represented approximately 16,000 barrels equivalent per day in the company’s share in 2025.
“TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the 3 other licenses of Renaissance JV, which are producing mainly gas (OML 23, OML 28 and OML 77), while TotalEnergies will retain full economic interest in these licenses, which currently account for 50 per cent of Nigeria LNG gas supply. Closing is subject to customary conditions, including regulatory approvals,” the statement reads in part.
The development is part of TotalEnergies’ strategies to dump more assets to lighten its books and debt.
By Aduragbemi Omiyale
The trading licence of Monument Securities and Finance Limited has been revoked by the regulatory arm of the Nigerian Exchange (NGX) Group Plc.
Known as NGX Regulations Limited (NGX Regco), the regulator said it took back the operating licence of the organisation after it shut down its operations.
The revocation of the licence was approved by Regulation and New Business Committee (RNBC) at its meeting held on September 24, 2025, a notice from the signed by the Head of Market Regulations at the agency, Chinedu Akamaka, said.
“This is to formally notify all trading license holders that the board of NGX Regulation Limited (NGX RegCo) has approved the decision of the Regulation and New Business Committee (RNBC)” in respect of Monument Securities and Finance Limited, a part of the disclosure stated.
Monument Securities and Finance Limited was earlier licensed to assist clients with the trading of stocks in the Nigerian capital market.
However, with the latest development, the firm is no longer authorised to perform this function.
Economy
NEITI Advocates Fiscal Discipline, Transparency as FG, States, LGs Get N6trn in Three Months
By Adedapo Adesanya
The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for fiscal discipline and transparency as data showed that federal government, states, and local governments shared a whopping N6 trillion Federation Account Allocation Committee (FAAC) disbursements in the third quarter of last year.
In its analysis of the FAAC Q3 2025 allocation, the body revealed that the federal government received N2.19 trillion, states received N1.97 trillion, and local governments received N1.45 trillion.
According to a statement by the Director of Communication and Stakeholders Management at NEITI, Mrs Obiageli Onuorah, the allocation indicated a historic rise in federation account receipts and distributions, explaining that year-on-year quarterly FAAC allocations in 2025 grew by 55.6 per cent compared with Q3 of 2024 while it more than doubling allocations over two years.
The report contained in the agency’s Quarterly Review noted that the N6 trillion included 13 per cent payments to derivative states. It also showed that statutory revenues accounted for 62 per cent of shared receipts, while Value Added Tax (VAT) was 34 per cent, and Electronic Money Transfer Levy (EMTL) and augmentation from non-oil excess revenue each accounted for 2 per cent, respectively.
The distribution to the 36 states comprised revenues from statutory sources, VAT, EMTL, and ecological funds. States also received additional N100 billion as augmentation from the non-oil excess revenue account.
The Executive Secretary of NEITI, Mr Sarkin Adar, called on the Office of the Accountant General of the Federation, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) FAAC, the National Economic Council (NEC), the National Assembly, and state governments to act on the recommendations to strengthen transparency, accountability, and long-term fiscal sustainability.
“Though the Quarter 3 2025 FAAC results are encouraging, NEITI reiterates that the data presents an opportunity to the government to institutionalise prudent fiscal practices that will protect the gains that have been recorded so far in growing revenue and reduce vulnerability to commodity shocks.
“The Q3 2025 FAAC results are encouraging, but windfalls must be managed with discipline. Greater transparency, realistic budgeting, and stronger stabilisation mechanisms will ensure these resources deliver durable benefits for all Nigerians,” Mr Adar said.
NEITI urged the government at all levels to ensure the growth of Nigeria’s sovereign wealth and stabilisation capacity, by committing to regular transfers to the Nigeria Sovereign Wealth Fund and other related stabilisation mechanisms in line with the fiscal responsibility frameworks.
It further advised governments at all levels to adopt realistic budget benchmarks by setting more conservative and achievable crude oil production and price assumptions in the budget to reduce implementation gaps, deficit, and debt metrics.
This, it said, is in addition to accelerating revenue diversification by prioritising reforms that would attract investments into the mining sector, expedite legislation to modernise the Mineral and Mining Act, support reforms in the downstream petroleum sector, as well as the full implementation of the Petroleum Industry Act (PIA) to expand domestic refining and value addition.
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