Economy
Nigerian Breweries Opens N8b Commercial Papers Issuance
By Modupe Gbadeyanka
One of the leading brewery firms in the country, Nigerian Breweries Plc, has commenced issuance of a N8 billion Series 15 Commercial Paper (CP) under its N100 billion CP programme launched in 2015.
The N8 billion notes have 91 days tenor and the offer started on Thursday, July 12, 2018, and will close on Tuesday, July 17, 2018.
The programme is expected to complement the company’s other sources of working capital, while diversifying funding sources to include non-bank investors.
Additionally, the programme will improve the company’s ability to periodically access funding at rates mirroring the money market.
“They are using this launch which is the 15th series for expansion to finance working capital. They have a big competitor in the likes of International Breweries who also are doing a lot of expansion,” said Dolapo Ashiru, a financial analyst.
According to Business Day, Nigerian Breweries, in its 2017 financial statement, reported a five-year compound annual growth rate (CAGR) of 6.4 percent in revenue, driven by business acquisitions, introduction of new products, and more recently, price inflation.
In the same period, increase in the cost of raw materials and consumables as well as down trading, amongst others pressured NB’s margins. Nonetheless, the Company posted a good operating profit margin of 15.9 percent, return on assets of 13.3 percent and return on equity of 26.1 percent in 2017.
The Nigerian economy suffered a severe slowdown through 2016 and much of 2017, owing to sustained low global crude oil prices. This led to heightened economic uncertainty, which was worsened by the devaluation of the Naira.
However, the economy appears to have rebounded from recession, as the real Gross Domestic Products (GDP) growth rate registered at 0.8 percent in 2017, compared to a 1.5 percent decline in 2016.
The brewing industry is one of the major sectors within the Nigerian Food, Beverages and Tobacco division. The sector has witnessed various forms of transformation over the years, with the number of players spiking from less than five (5) in 1970 to over thirty (30) in 1980.
However, operational and economic challenges in the early 1980 led to the closure of some breweries. Currently, there are over ten brewery companies, of which five (NB, Guinness, Champion Breweries, International Breweries and Golden Guinea Breweries) are listed on the NSE. NB and Guinness dominate the industry, controlling over 60 percent and 19 percent market share respectively, based on industry sources.
In line with the capital intensive nature of NB’s business, fixed assets have historically accounted for over 70 percent of total assets. These assets have primarily been funded through equity, whilst the high working capital requirement has been covered through various debt instruments and payables.
Nigerian Breweries ‘principal activities involve the brewing, marketing and sale of lager, stout, non-alcoholic malt drinks and soft drinks, from which the Company derives its revenue. Nigerian Breweries’ primary geographical market is Nigeria, accounting for 99.9 percent of its sales in 2017.
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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