Economy
Nigeria’s Securities Lending Market Hits N513m
By Dipo Olowookere
The securities lending market in Nigeria is gradually growing and this is because investors are beginning to embrace the ecosystem.
Business Post gathered that the market has been witnessing an uptick in stakeholders’ participation and data from the Nigerian Exchange (NGX) Limited showed that as at August 20, 2021, the space has 6.8 million units of shares worth N513.1 million
As at 2019, the market had 61,435 stocks valued at N344,555 and in 2020, it expanded to 7.38 million units worth N95.2 million and this is because investors are beginning to see value in the investment tool.
The data also showed that at the moment, 2.3 million equities of MTN Nigeria worth N395.6 million have been borrowed by investors and as at last Friday, there are 77.33 million shares of Zenith Bank Plc, 8.89 million shares of MTN Nigeria, 43 million shares of Dangote Sugar, 31.09 million shares of GTCO and 45 million shares of UBA available for market participants to borrow.
Recall that at an interactive session, the Head of Trading Business Division at the NGX, Mr Jude Chiemeka, had said that securities lending presented significant benefits to investors in a bull or bear market.
“Whether you are a speculative investor looking to make quick gains, or a long-term investor holding stocks, securities lending provides the strong potential to deliver benefits to all market players through capital gains and low-risk incremental income.
“It also plays an important role in the capital market by providing liquidity, which in turn reduces the cost of trading and promotes price discovery,” Mr Chiemeka had stated.
Securities lending is the market practice of transferring shares for a fee from a holder (the lender) to another party (the borrower), with the borrower agreeing to return the securities to the lender either on demand or at the end of the agreed loan term.
It essentially means that the owner of a share can temporarily loan out his shares to someone else and earn an income that they ordinarily would not have enjoyed if the shares were left sitting in his/her portfolio.
In a bid to widen the pool of securities available for lending and increase participation, the NGX issued guidelines that became effective on January 7, 2019.
These guidelines were prepared to adequately address stakeholders’ expectations in securities lending transactions and to provide proper education on the procedures and controls involved in securities lending.
By Aduragbemi Omiyale
The suspension earlier placed on trading in the shares of Zichis Agro-Allied Industries Plc has been lifted by the Nigerian Exchange (NGX) Regulations Limited.
The regulatory subsidiary of NGX Group Plc placed an embargo on Zichis stocks after the price went up by nearly 900 per cent within one month of its listing on the NGX Limited in January 2026.
The action was taken to find out if there was any form of manipulation in the price movement of the new firm on Customs Street to protect market integrity.
Zichis was listed on the growth board of the bourse by introduction at a unit price of N1.81, but within a month, its share price rose to N17.36 per unit, indicating an 859.12 per cent surge.
In a notice to the investing community today, the Head of Issuer Regulation Department at NGX, Mr Godstime Iwenekhai, confirmed the lifting of the suspension on Zichis.
“Kindly refer to our market bulletin referenced NGXREG/IRD/MB23/26/02/23 and dated February 23, 2026, titled Notification of Suspension of Trading in the Shares of Zichis Agro-Allied Industries Plc, wherein trading license holders and the investing public were notified of the suspension of trading in the shares of Zichis Agro-Allied Industries Plc, pursuant to Rule 7.0: General, Rules on Suspension of Trading in Listed Securities, Rulebook of The Exchange, 2015 (Issuers’ Rules), as amended.
“Trading licence holders and the investing public are hereby informed that NGX Regulation Limited has concluded its investigation into the trading activities in the company’s shares and has implemented corrective measures to safeguard market integrity in line with its mandate to promote a fair, orderly and efficient market.
“Accordingly, the suspension placed on trading in the shares of Zichis Agro-Allied Industries Plc has been lifted, effective Monday, March 23, 2026,” the notice read.
Business Post reports that the share price of Zichis has been adjusted downward from N17.36 to N8.58 after the suspension was lifted.
By Adedapo Adesanya
The Dangote Petroleum Refinery said it has strengthened Nigeria’s presence in the regional energy market with the successful sales of 12 cargoes, by traders, totalling 456,000 tonnes of refined petroleum products.
The shipments by traders, destined for countries such as Cote d’Ivoire, Cameroon, Tanzania, Ghana, and Togo, represent the refinery’s export of Premium Motor Spirit (PMS) since achieving 650,000 barrels a day capacity in February, according to a statement by the Refinery.
The products were sold on a FOB (Free on Board) basis to the end international traders for deliveries to the above-identified countries of export.
This accomplishment, the Refinery noted, underscores its capability not only to meet but to exceed Nigeria’s domestic fuel demands.
“It also demonstrates the refinery’s growing role in supplying high-quality Euro 5 gasoline and diesel to West Africa — a region long underserved and historically regarded as a dumping ground for lower-quality fuels, and other regions which have become destinations of exports.
“By supplying neighbouring and other economies, the Dangote Refinery is expected to contribute to enhancing energy security in West, East, and Central Africa, reducing logistics and supply chain delays associated with long-distance fuel imports, lowering cost pressures on regional fuel markets through proximity sourcing, and as well as building stronger trade relations between Nigeria and key African economies”, the statement added.
The sale comes amid widening global worries about fuel supplies as the tanker traffic through the Strait of Hormuz, which serves as the critical chokepoint for roughly 20 per cent of global oil and LNG trade, has slowed sharply amid escalating military activity in the Gulf.
The conflict in the region has sent oil prices above $113 per barrel in recent weeks and has made economies worry about inflationary worries.
President Bola Tinubu expressed concerns over the negative impact the crisis in the Middle East would have on the Nigerian economy, noting that efforts are being made to ensure the citizens, especially the vulnerable, are catered to by the government.
Western economies could release additional volumes of crude from storage should the need arise after it released 400 million barrels of crude from OECD reserves to cushion the blow to oil markets.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited operated for only three days last week due to the public holidays observed on Thursday and Friday for Eid al-Fitr.
Data from Customs Street showed that investors transacted 8.761 billion shares worth N267.253 billion in 193,473 deals compared with the 3.321 billion shares valued at N164.845 billion traded in 318,907 deals in the preceding week.
Analysis showed that the ICT sector led the activity chart with 5.330 billion stocks worth N46.825 billion executed in 21,573 deals, contributing 60.84 per cent and 17.52 per cent to the total trading volume and value, respectively.
The financial services industry exchanged 2.765 billion equities for N95.892 billion in 75,103 deals, and the consumer goods space sold 174.484 million shares valued at N20.805 billion in 20,693 deals.
eTranzact, FCMB, and Wema Bank accounted for 6.084 billion shares worth N40.661 billion in 5,570 deals, contributing 69.44 per cent and 15.21 per cent to the total trading volume and value apiece.
Business Post reports that in the week, 48 equities appreciated versus 34 equities in the previous week, 43 stocks depreciated versus 61 stocks in the preceding week, and 57 shares closed flat versus 53 shares of the earlier week.
John Holt topped the advancers’ chart after it chalked up 25.40 per cent to trade at N11.86, BUA Cement expanded by 21.00 per cent to N326.70, Premier Paints rose by 20.62 per cent to N23.40, Zenith Bank went up by 14.64 per cent to N110.00, and Learn Africa appreciated by 13.33 per cent to N9.35.
The laggards’ group was led by Zichis, which shed 50.58 per cent to close at N8.58. Presco went down by 18.37 per cent to N1,701.10, DAAR Communications declined by 13.55 per cent to N1.85, Eterna slipped by 12.77 per cent to N36.90, and Red Star Express crashed by 9.98 per cent to N25.55.
At the close of business, the All-Share Index (ASI) and the market capitalisation appreciated by 1.39 per cent each to 201,156.86 points and N129.126 trillion, respectively.
In the same vein, all other indices finished higher apart from the insurance, AFR Div Yield, consumer goods, energy, Lotus II and commodity indices, which fell by 0.42 per cent, 2.34 per cent, 0.10 per cent, 4.78 per cent, 2.76 per cent and 4.91 per cent apiece, while the sovereign bond index closed flat.
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