Economy
NASD Investors Lose N6.8bn in 36 Trades
By Adedapo Adesanya
Investors at the NASD Over-the-Counter (OTC) Securities Exchange lost N6.8 billion last week (Week 28) as the market’s capitalization closed at N519.90 billion compared to N526.65 billion it finished at the preceding week.
The NASD unlisted securities index (NSI) also closed negative by 1.28 per cent to close the week at 707.77 points as against 716.96 points it ended a week earlier.
This happened despite an increase in the amount of funds used to trade securities at the market during the week as well as a rise in the number of deals executed.
Business Post reports that there was a 346.4 per cent increase in the total value of shares traded by market participants during the week. Stocks worth N59.8 million were traded by NASD Investors last week compared with N13.4 million in the previous week.
Also, a total of 36 deals executed last week, higher than the previous week’s 34 deals by 5.9 per cent.
In addition, the volume of shares transacted in the week increased by 4,683 per cent to 10.7 million units from 224,48 units in week 27.
Further on the activity chart, Food Concept Plc ranked as the top among four most traded securities by volume and VFD Group Plc as the fourth most traded stock by volume. Food Concept Plc traded 10 million units of its stock, while VFD Group Plc sold 110,000 units.
In terms of value, the week closed with FrieslandCampina WAMCO Nigeria Plc ranked top among four most traded securities by value and Niger Delta Exploration and Production (NDEP) Plc stood as the fourth most-traded security by value for the week. Friesland pulled N30.2 million while NDEP Plc recorded N5.9 million.
The NASD OTC bourse closed the week with a positive movement in the prices of three of its stocks. Afriland Properties Plc, which currently holds a market capitalization of N2.9 billion closed the week at N2.14 representing an 8.08 per cent increase from the previous closing price of N1.98.
Food Concept Plc, which currently holds a market capitalization of N4.4 billion closed the week at N0.75 representing a 7.14 per cent increase from the previous close N0.7.
FrieslandCampina WAMCO Nigeria Plc, which currently holds a market capitalization of N118.1 billion closed the week at N121 representing a 0.12 per cent increase from the previous closing price of N120.86.
The week ended with one decliner, being Central Securities Clearing System (CSCS) Plc which currently holds a market capitalization of N67.5 billion closed the week at N13.5 after dropping 9.9 per cent from the previous week’s closing value N14.98.
On a year-to-date basis, the NASD OTC Exchange Market closed last week on a positive note at 1.47 per cent.
The YTD transactions at the exchange stood at 7.8 billion units worth N10.2 billion traded in 766 deals.
By Aduragbemi Omiyale
The board of Geregu Power Plc has acknowledged the concerns raised by shareholders, stakeholders, as well as regulators over the inability of the company to pay bondholders for their investment in its N40 billion bond sale.
There were reports that the power-generating organisation defaulted in repaying investors who bought its debt instrument.
In 2022, the company issued a seven-year paper to investors at a coupon of 14.5 per cent to be paid semi-annually. The note is expected to mature in July 2029. But data from the FMDQ Securities Exchange showed that there have been defaults in the 8th coupon payment and the 4th bullet principal repayment.
Reacting to the issue on Thursday, Geregu said it is actively having talks with advisers and others on ways to iron things out.
“Geregu remains actively engaged with relevant stakeholders and advisers regarding the resolution of the various challenges and is committed to achieving an orderly and mutually beneficial outcome.
“Discussions and engagements are ongoing, and the Company will continue to act in good faith in fulfilling its responsibilities,” part of the statement signed by its scribe, The Structure HQ, stated.
The firm explained that since assuming responsibility for its affairs, the current board and management have undertaken a comprehensive review and reconciliation of its transactions, liabilities, operational commitments, financing arrangements, financial obligations and related corporate documentation.
It stressed that this action was to ensure transparency, accuracy and prudent financial management, adding that it remains committed to transparency, responsible corporate governance and constructive engagement with all stakeholders.
The majority stake of Geregu Power was controlled by Mr Femi Otedola. He divested his stake in the energy firm in 2025, with the sale of 95 per cent of his shares in Amperion to MA”AM Energy.
Earlier in 2023, he sold N399 million shares of Geregu to another investor. Before then, he sold his stake in Forte Oil to invest in Geregu Power, which now has the former Governor of Zamfara State, Mr Abdulaziz Yari, as its chairman.
By Adedapo Adesanya
A former Commissioner for Insurance of the National Insurance Commission (NAICOM), Mr Mohamed Kari, has warned the federal government to reduce its intervention in the sector’s post-recapitalisation process.
He charged the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, to ignore calls for regulatory concessions in the just-concluded insurance industry recapitalisation exercise in the country.
The call, he said, was critical, especially when the companies clamouring for such concessions were chronic defaulters whose failure or strict regulatory discipline poses absolutely zero systemic risk to the Nigerian financial system or the broader economy.
Recall that NAICOM had requested insurance companies, as part of the recapitalisation process, to transfer their entire recapitalisation funds into an escrow account with the Central Bank of Nigeria (CBN). However, NICON Insurance and Nigeria Re, in a recent petition, had petitioned NAICOM over what they described as unlawful fees and regulatory demands arising from the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Mr Kari, who was also a former chief executive of NICON Insurance and Nigeria Re, said it was globally accepted that a government may occasionally intervene to rescue or support a consequential player in the financial sector, strictly where its distress poses a genuine ‘too big to fail’ systemic risk whose collapse would trigger a wider economic catastrophe.
“However, one must examine the reality of the two institutions in question today. These are no longer the market giants they once were decades ago,” he said.
He warned that having suffered years of steep decline, loss of market share, and severe operational shrinkage, their current market footprint is virtually insignificant.
“Their failure or strict regulatory discipline poses absolutely zero systemic risk to the Nigerian financial system or the broader economy. Why then should government intervene to shield operators whose distress carries no systemic consequence whatsoever?
“Rescuing or granting regulatory concessions to insignificant, chronic defaulters cannot be justified under any sound macroeconomic policy,” he added.
“When political intervention steps in to shield such non-systemic entities from standard regulatory checks, the equilibrium of the market breaks down as it creates unfair advantage.
“Operators that meet compliance targets carry the full cost of regulatory fidelity, while non-compliant firms that secure political exemptions operate with an artificial cost advantage.
“It disincentivises real capacity building: When political lobbying becomes an alternative to recapitalisation, companies are discouraged from making the hard structural choices necessary to refine their balance sheets and operations.”
He noted that if such a concession is granted to both insurance industry players in the defunct, it “distorts investor confidence: Both domestic and international investors look for predictable, transparent environments. A playing field where rules can be bent for select players frightens away patient capital. It weakens policyholder protection.”
By Adedapo Adesanya
Aradel Holdings Plc is set to commence production of Premium Motor Spirit (PMS) at its modular refinery in 2027, following the removal of fuel subsidies and the deregulation of the downstream petroleum market.
According to Aradel’s general manager of refinery, Mr Temitayo Ogunbanjo, the removal of government control over fuel prices had created an opportunity for the company to begin manufacturing petrol.
Speaking on the sidelines of a conference in Abuja, Mr Ogunbanjo told Bloomberg that the company’s 11,000 barrels-per-day modular refinery currently already produces kerosene, diesel, gas oil and naphtha.
He noted that the deregulation of the downstream petroleum market has now created a pathway for Aradel to commence gasoline production at its refinery.
He added that Aradel is also considering an expansion of the refinery, with the company assessing potential crude supply sources and export logistics as part of its plans.
The company’s integrated operations across crude oil production, refining and distribution have benefited from recent volatility in global oil markets triggered by the US-Iran war, he told the publication.
Mr Ogunbanjo also disclosed that Aradel is considering investments in aviation fuel production, as the product has emerged as an important export to the European market.
The planned petrol production is expected to further expand Aradel’s refining operations as Nigeria’s downstream petroleum sector adjusts to the post-subsidy regime and increased private-sector participation.
It could also mean competition for other dominant refiners and importers, particularly the 700,000 barrels per day Dangote Refinery. Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that Dangote supplied 87.55 per cent of Nigeria’s petrol demand in May 2026.
