Economy
No Cause for Alarm, We Won’t Leave Nigeria—Shoprite
By Adedapo Adesanya
After reports went rival on Monday morning that it was considering exiting the Nigerian market, the management of Shoprite Nigeria has said it does not intend to pull the plug on its operations in the country.
According to a report by Vanguard Newspaper, this clarification was made by the Country Director for Chastex Consult, Mr Ini Archibong, who said the retail giant was not considering the widely reported plan to exit Africa’s largest market.
According to the Director of the consulting firm, “Shoprite is not leaving Nigeria.
“We have only just opened to Nigerian investors which we have also been talking to just before now. We are not leaving, who leaves over a $30 billion investment and closes shop? It doesn’t sound right.
“We only just given this opportunity to Nigeria investors to come in and also help drive our expansion plan in Nigeria. So, we are not leaving.
“I have tried to say this as too many people as I can. There should be no panic at all and all of that. There is no truth in that report.”
Earlier, it was reported that the company’s result did not get much from its operations in Nigeria and was considering the potential sale of all or a majority of stake in its supermarkets in Nigeria.
The report also said international markets excluding Nigeria contributed 11.6 per cent to the group sales and reported a 1.4 per cent decline in sales from 2018.
South African operations contributed 78 per cent of the overall sales and saw a 8.7 per cent rise for the year.
The report went further to say that as a result of the lockdown, customers’ visits declined 7.4 per cent but the average basket spends increased by 18.4 per cent.
It was not a surprising move as many understand that the move was possible following the exit of other retailers like Mr Price, Woolworths, among others in the last couple of years.
By Adedapo Adesanya
S&P Global has agreed to acquire a majority stake in Agusto & Co., a leading Pan-African rating agency with operations in Nigeria, Kenya, Rwanda and Ghana.
The investment, a strategic step for both companies, will complement and support the growth strategy of the S&P Global Ratings division in Africa. The terms of the transaction were not disclosed.
The company said in a statement on Tuesday that by combining S&P Global’s international expertise and resources with Agusto & Co.’s strong Pan-African presence and reputation for excellence, the partnership aims to expand market insights, strengthen credit transparency, and support market participants across the region.
“We are delighted to partner with Agusto & Co. to strengthen our domestic ratings presence across Africa,” said Mr Yann Le Pallec, President, S&P Global Ratings. “This transaction underscores our commitment to supporting growth and transparency in local credit markets throughout the continent. Africa’s opportunity is extraordinary, and by combining our global expertise with Agusto & Co.’s deep local insights, together we can foster informed analysis, constructive market dialogue, and greater investor confidence both regionally and internationally.”
“This partnership is a transformational milestone for Agusto & Co. and African capital markets, fulfilling our late founder’s vision of affiliating with a leading global rating agency,” said Yinka Adelekan, Managing Director of Agusto & Co.
“For more than 30 years, we have built a trusted credit rating institution across Africa. By combining our deep Pan-African market knowledge and analytical independence with S&P Global Ratings’ global expertise, resources and affiliate network, we believe this partnership will create new opportunities, enhance value for market participants, and support the continued development of transparent and resilient credit markets across the continent.”
Agusto & Co. is a leading Pan-African credit rating agency with a strong presence in Nigeria and other key African markets, rating financial institutions, corporates and other entities. Following the transaction, Agusto & Co. will continue to operate as a separate ratings entity and issue its own credit ratings and methodologies in accordance with applicable regulatory requirements.
The transaction is subject to customary closing conditions, including receipt of required regulatory approvals.
Subject to obtaining all required regulatory approvals, the transaction is expected to close during the second half of 2026.
The transaction is not expected to have a material impact on the financial results of S&P Global or S&P Global Ratings, the agency said.
Agusto & Co. was founded in 1992 by the late Nigerian economist and chartered accountant, Mr Olabode (Bode) Agusto. It was established as the first credit rating agency in Nigeria.
Mr Agusto, who served as the firm’s first managing director for 11 years, died in October 2023.
By Adedapo Adesanya
The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to suspend plans to increase Nigeria’s mandatory pension contribution rate.
The chamber’s Director General, Dr Chinyere Almona, warned that the move could worsen the challenges facing businesses, threaten jobs and discourage investment.
She noted that while improving retirement security is important, raising pension contributions at a time when businesses are grappling with soaring inflation, extremely high borrowing costs, exchange rate volatility, rising energy prices and multiple taxes would place an unbearable burden on employers.
According to the DG, Nigeria’s existing contribution rate is already comparable with global standards, noting that the country’s 18 per cent mandatory contribution is close to the OECD’s 18.8 per cent average and significantly higher than rates in countries such as the United Kingdom (8 per cent), the United States (12.4 per cent) and Kenya (12 per cent).
She warned that increasing payroll costs at this time would discourage recruitment, suppress wage growth, place disproportionate pressure on micro, small and medium-sized enterprises (MSMEs), reduce Nigeria’s attractiveness to investors and push more businesses into the informal sector.
The advocacy group called on the government to defer the proposal until a comprehensive Nigeria-specific actuarial and economic impact assessment is conducted and extensive consultations are held with the organised private sector and labour unions.
The group recommended that instead of increasing mandatory contributions, the National Pension Commission (PenCom) should focus on developing innovative investment instruments capable of delivering higher returns on existing pension assets, saying this would improve contributors’ retirement savings without imposing additional financial pressure on businesses.
PenCom had recently proposed an increase in mandatory pension contributions as well as a 3 per cent mandatory annual contribution equivalent to 3 per cent of the total wage bill.
According to the insurance regulator, the proposal forms part of broader pension sector reforms designed to strengthen the financial security of Nigerian workers in retirement.
LCCI’s opposition to this proposed policy comes after the Organised Private Sector of Nigeria expressed its disdain over the issue, also citing rising inflation and economic hardship for its rejection.
By Adedapo Adesanya
Nigeria will receive about 154.2 million litres of imported Premium Motor Spirit (PMS) this week despite increased domestic refining capacity driven by the Dangote Petroleum Refinery.
The latest Nigerian Ports Authority (NPA) shipping schedule shows that five petrol-laden vessels carrying a combined 115,000 metric tonnes of PMS are expected to berth at Tin Can Island Port in Lagos and Calabar Port between Monday and Wednesday.
The continued inflow of imported petrol highlights how marketers are balancing local supplies with overseas purchases based on pricing, availability and commercial considerations, even as domestic refining capacity expands.
According to the NPA’s Daily Shipping Schedule – Vessels Expected, four vessels will discharge their cargoes at the KLT Phase 3A terminal in Tin Can Island, while one vessel is scheduled to berth at the North West Petroleum & Gas terminal in Calabar.
The vessel LESTE is expected to arrive on Monday with 30,000 metric tonnes of PMS, equivalent to about 40.23 million litres, while BORA will deliver 10,000 metric tonnes, or approximately 13.41 million litres, to the same terminal.
On Tuesday, ST ILHAAM is scheduled to discharge another 30,000 metric tonnes (about 40.23 million litres), followed by STELLAR, which is expected on Wednesday with an additional 30,000 metric tonnes, also translating to roughly 40.23 million litres.
At Calabar Port, SL AREMU is expected to berth on Tuesday with 15,000 metric tonnes of PMS, equivalent to approximately 20.12 million litres, at the North West Petroleum & Gas terminal.
The shipping schedule also lists STELLAR at the Dangote terminal in Lekki Deep Sea Port with an arrival date of July 24.
However, its cargo status is marked “INB”, indicating the vessel is in ballast and not carrying cargo, suggesting it may be positioning to load refined products rather than discharge them.
The latest imports come as Nigeria continues to operate a liberalised downstream petroleum market that allows marketers to source products from either domestic refineries or international suppliers.
Industry operators have consistently argued that imports remain necessary to guarantee supply, encourage competition and take advantage of favourable pricing opportunities.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has also maintained that the market remains open to all qualified operators, with fuel prices expected to reflect prevailing market conditions.
Although local refining output has risen significantly following the ramp-up of the 700,000 barrels per day Dangote refinery and ongoing rehabilitation of government-owned refineries, imported petrol continues to account for a portion of Nigeria’s fuel supply, reflecting the competitive dynamics of the deregulated market.
