Economy
NGX Performance Indices Drop 0.66% on Access Holdings’ Disappointing Interim Dividend
By Dipo Olowookere
The Nigerian Exchange (NGX) kicked off the first trading session in the last week of the third quarter of the year on a negative note, with the key performance indices going down by 0.66 per cent on Monday.
This was partly caused by the reaction of investors to the 30 Kobo interim dividend declaration of the board of Access Holdings Plc.
A few days ago, its peer, UBA Plc, raised its interim dividend payment by 150 per cent to 50 Kobo and it was expected that Access Holdings would follow the same path.
However, the company disappointed traders, choosing to maintain its conservative style of holding funds for expansion through mergers and acquisitions.
This resulted in the heavy loss suffered by the banking index yesterday, 3.18 per cent, and with the 0.14 per cent decline posted by the consumer goods space, the bourse landed in the midst of the bears, which devoured the market despite the 0.18 per cent growth posted by the insurance sector, the 0.11 per cent rise recorded by the industrial goods sector. The energy counter remained flat.
At the close of transactions, the All-Share Index (ASI) declined by 441.95 points to 66,882.64 points from 67,324.59 points, and the market capitalisation decreased by N242 billion to N36.605 trillion from N36.847 trillion.
The activity chart was mixed during the trading session, with the volume of trades going down by 60.31 per cent to 408.2 million shares from 1.0 billion, the value of transactions increasing by 22.73 per cent to N5.4 billion from N4.4 billion, and the number of deals expanding by 20.99 per cent to 7,707 deals from 6,370 deals.
Access Holdings dominated the activity chart on Monday with the sale of 113.4 million equities for N1.8 billion, UBA traded 59.6 million shares worth N1.1 billion, Unity Bank exchanged 27.8 million stocks for N28.4 million, Universal Insurance transacted 17.6 million shares valued at N3.9 million, and Transcorp traded 16.8 million equities worth N103.7 million.
Business Post reports that investor sentiment was weak yesterday due to the negative market breadth index triggered by the selling pressure on 37 stocks. Only 15 stocks ended on the gainers’ log at the close of trading activities.
On top of the losers’ table was Caverton after it fell by 9.87 per cent to settle at N1.37, Access Holdings dropped 9.86 per cent to close at N15.55, Oando lost 9.70 per cent to finish at N10.70, The Initiates depleted by 9.65 per cent to N1.03, and RT Briscoe shed 9.52 per cent to end at 38 Kobo.
On the flip side, Ikeja Hotel was the best-performing stock after it grew by 10.00 per cent to N2.75, John Holt gained 9.70 per cent to quote at N1.81, Cornerstone Insurance appreciated by 9.49 per cent to N1.50, Regency Alliance rose by 8.57 per cent to 38 Kobo, and Tantalizers inflated by 6.67 per cent to 32 Kobo.
By Adedapo Adesanya
Two advisers to Dangote Petroleum Refinery’s planned Initial Public Offering (IPO) on Tuesday announced a $1 billion underwriting programme for the offering, giving the plant potentially powerful new route to African and international capital.
Marob Strategies and Consulting DIFC Limited and Lilium Capital Group said in a statement that the programme comprises a completed and funded $600 million private placement and a $400 million underwriting commitment for the planned IPO.
The $600 million placement is already complete.
The remaining $400 million commitment will only come into effect when the IPO is launched and remains subject to market conditions, regulatory and corporate approvals, and definitive documentation and securities-law requirements, according to the advisers.
Dangote Petroleum Refinery, built by Africa’s richest man Aliko Dangote, has become a symbol of Nigeria’s attempt to reduce dependence on imported refined petroleum products while building domestic refining and petrochemical capacity.
Recall that it has applied to Nigeria’s Securities and Exchange Commission (SEC) for a $5 billion IPO. However, the final size of the offering has yet to be determined.
The refinery has emerged as a major beneficiary of supply disruptions linked to the Iran war, increasing sales of jet fuel across Africa and into Western Europe as buyers seek alternative supplies.
The planned listing could rank among the largest IPOs in Africa, depending on the final size of the offering and market conditions at launch.
“This is an important milestone for DPRP and for African capital markets,” Mr Dangote said in the announcement, describing the completed placement and IPO underwriting commitment as a sign of confidence in the refinery’s strategic role.
On his part, Marob Strategies Chairman, Mr Benedict Oramah, a former president of the refinery’s backer Africa Export-Import Bank, said investor interest demonstrated appetite for African-led capital markets transactions involving transformative assets on the continent.
Adding his part, Lilium Capital Chairman, Mr Simon Tiemtoré, similarly framed the deal as an effort to connect major African investment opportunities with institutional capital across the continent and international markets.
By Adedapo Adesanya
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) could impose fines of up to five per cent of the annual turnover of petroleum operators found guilty of serious anti-competitive practices in the midstream and downstream sectors.
This was contained in the draft regulations of the proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026.
According to the proposal, errant companies of serious offences such as price-fixing, bid-rigging, market allocation, abuse of market dominance and other conduct capable of causing significant harm to competition could be fined between three and five per cent of their annual turnover.
It further proposed that persistent or serious offenders may also have their licences suspended or revoked, while the NMDPRA may impose daily penalties on operators that fail to comply with its orders or continue prohibited conduct after being directed to stop.
The draft regulation stated: “Where the Authority determines, after investigation and due process, that a licensee or any other person has engaged in anti-competitive conduct or breached any provision of this Regulation or the Act, it may impose administrative fines as provided herein.
The maximum administrative fine shall not exceed five per cent of the annual turnover of the offending undertaking for the preceding financial year.
“For purposes of these regulations, ‘annual turnover’ means gross revenues or sales derived from the regulated business activities in Nigeria. Where multiple entities or group structures are involved, the Authority may consider the turnover of the group, subsidiary, or segment most directly involved in the infringement.”
“Where a licensee or person fails to comply with an order or directive of the Authority, a daily penalty may be imposed for each day the violation continues.
“Where a prohibited practice continues after a final order, the daily penalty could rise to between N10m and N50m. Before imposing a fine, the NMDPRA would issue a Notice of Intention to Fine setting out the facts and findings, the nature of the infringement, the basis for calculating the proposed fine and the proposed deadline for payment,” it proposed.
By Adedapo Adesanya
Nigerian billionaire, Mr Femi Otedola, the chairman of First HoldCo, has acquired an additional 147.74 million shares of the financial services group through his investment vehicle, Calvados Global Services Limited.
According to a regulatory filing obtained from the Nigerian Exchange (NGX) Limited on Monday, Mr Otedola purchased the stocks valued at N20.68 billion.
The notice said the investor purchased about 147,737,699 ordinary shares at N140 per share on August 14.
The transaction increases Mr Otedola’s stake in the financial services group from 11.99 billion shares (26.1 per cent) to 12.13 billion shares (26.4 per cent).
The acquisition comes less than two weeks after the billionaire bought 138.04 million ordinary shares for about N18.11 billion.
Prior to that, Mr Otedola had said he had invested more than N600 billion of his personal wealth in the bank, describing the investment as a “long-term generational commitment” rather than a turnaround play.
Responding to speculation about increasing his stake, Mr Otedola said his investment philosophy favours majority control.
“My investment threshold is always over and above 51 per cent,” the billionaire had said.
“One of my key investment principles is that firm shareholder control, with due regard for minority interest, is a key ingredient to executing reforms and restructuring to deliver value to all stakeholders.”
The bank’s share price had recently risen to an all-time high of N140 per share, pushing its market capitalisation to N6.37 trillion.
In recent months, Mr Otedola has also made other high-profile investments outside the banking sector, including the acquisition of a luxury residence in London’s exclusive Mayfair district, further expanding his international real estate portfolio.
He is also believed to have participated in a financing arrangement involving the Dangote Refinery, providing funds to support its working capital needs as the facility scaled up operations.
