Economy
NSE Index Rises by 7.01% in Q3 2017
By Modupe Gbadeyanka
A recent report released by FSDH Research revealed that the Nigerian equity market as measured by the Nigerian Stock Exchange All Share Index (NSE ASI) appreciated by 7.01 percent in the third quarter of 2017.
This, it stated, was the strongest Q3 performance in the last four years.
The report said the stable macroeconomic environment was the major driver of the positive performance in the equity market and it expects this trend to continue in the last quarter of the year.
FSDH Research’s analysis of the historical trend of the equity market between 2012 and 2016 shows that the equity market rallied in December of each year.
FSDH Research’s historical analysis shows that there is a strong correlation between the movement in crude oil price and the Nigerian equity market.
The consensus on the short-term outlook for crude oil (Bonny Light) price is that it will remain above $50 per barrel.
The sustained high crude oil price coupled with improved oil production has led to a sustained accretion to the external reserves, which stood at $32.74 billion as at October 3, 2017.
The firm said it expects a continued boost to the external reserves in the short-to-medium term as oil price and production continue to strengthen because it is positive for the equity market.
Additionally, the introduction of the Investors’ and Exporters’ Foreign Exchange (FX) Window (I&E Window) has increased the supply of foreign exchange into the Nigerian economy and led to relative stability in the FX market. The I&E Window has also attracted more foreign investments into Nigeria. FSDH Research’s analysis of the capital importation data from the Central Bank of Nigeria (CBN) between January and July 2017 shows that there was a growth in capital importation in 2017, compared with 2016.
The total capital importation between January and July 2017 stood at $3.76 billion, representing a growth of 85.32 percent over $2.03 billion recorded in the corresponding period of 2016.
Other Investments (OI) – Loans attracted the highest capital of $1.69 billion between January and July 2017, closely followed by Foreign Portfolio Investment (FPI) – Equity of $1.15 billion, and Foreign Direct Investment (FDI) – Equity of $513.23 million.
FSDH Research said it expects continued foreign inflow into the equity market as the FX market remains stable.
It pointed out that this improved liquidity will boost the expected rally in the equity market. The drop in the yields on the fixed income securities should lead to portfolio realignments in favour of the equity market to take advantage of higher returns.
At the last auction on October 4, 2017, the yield on the 364-Day NTB stood at 18.65 percent, lower than the average yield of 22.71 percent recorded between January and September 2017.
Similarly, the yield on the 16.39 percent FGN January 2022 Bond stood at 15.83 percent as at the close of trading on October 4, 2017, lower than the average yield of 16.08 percent recorded between January and September 2017.
FSDH Research notes increased economic activities in most of the sectors of the Nigerian economy in September 2017.
A review of the latest Purchasing Managers’ Index (PMI) report that the CBN published for the month of September 2017 shows that economic activities in the manufacturing and non-manufacturing sectors continue to strengthen.
The Composite Manufacturing Index (CMI) expanded for the sixth consecutive month in 2017 to stand at 55.3 points in September 2017, from 53.6 points in August 2017.
The Composite Non-Manufacturing Index (CNMI) also expanded for the fifth consecutive month to 54.9 points in September 2017 from 54.1 points in August 2017.
The report is an indication that the Q3 2017 earnings of quoted companies will be an improvement over previous quarters.
According to FSDH Research, its forecasts for the Gross Domestic Product (GDP) in Q3 and Q4 2017 show that the GDP should grow in excess of 2 percent.
The firm says it expects the equity market to respond positively to the strong Q3 2017 GDP figures that the National Bureau of Statistics (NBS) will release on 22 November 2017.
By Adedapo Adesanya
About 143 companies that successfully passed the technical and prequalification stages of the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) 2025 Licensing Round will, today, compete for 50 oil and gas blocks at the commercial bid conference in Abuja, the final stage in the allocation process for the assets.
The commission said only the prequalified companies have been invited to attend the event, which will hold at the Conference Centre of the Transcorp Hilton Hotel, Abuja, stressing that participation is strictly by invitation.
The commercial bid conference will determine the successful bidders for oil and gas assets located across Nigeria’s producing and frontier basins.
The 50 blocks comprise 16 onshore blocks and 18 shallow water blocks in the Niger Delta, one deep offshore block, three onshore blocks in the Benin Basin, four in the Anambra Basin, four in the Chad Basin, and four in the Benue Trough.
According to the commission, the winning bids will be determined through a transparent evaluation process based on clearly defined commercial parameters. These include the signature bonus offered by bidders, the proposed work programme commitment and the level of performance security provided. The final selection will be based on a weighted technical and commercial score.
The licensing round is being conducted under the provisions of the Petroleum Industry Act (PIA) 2021, which requires a transparent and competitive process for the award of petroleum assets.
NUPRC had announced the commencement of the 2025 Licensing Round on November 11, 2025, before opening the online bid portal on December 1, 2025, to enable interested companies to register and participate in the exercise.
To ensure prospective investors fully understood the requirements, the commission organised a pre-bid conference on January 14, 2026, at Eko Hotels and Suites, Lagos. The event provided detailed explanations on the licensing guidelines and bidding procedures to registered participants and other stakeholders.
Registration and submission of prequalification documents closed on February 27, 2026, while the prequalification evaluation was completed on March 16, 2026.
NUPRC disclosed that 286 companies initially submitted applications for prequalification.
Following the evaluation process, 196 companies were cleared to participate in the technical and commercial bid stages.
The prequalified 143 companies eventually submitted a total of 200 bids for the available oil and gas blocks. These companies are now set to compete at the commercial bid conference, where the financial offers will be opened and evaluated to determine the eventual winners.
The licensing round is expected to attract fresh investment into Nigeria’s upstream petroleum sector, boost exploration activities across both producing and frontier basins, increase crude oil and gas reserves, and support the country’s drive to grow production and government revenue.
It also underscores the regulator’s commitment to implementing a transparent, competitive and investor-friendly licensing regime under the Petroleum Industry Act.
By Adedapo Adesanya
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained all key monetary policy parameters following the conclusion of its two-day meeting on July 21, 2026, on Tuesday, maintaining its tight monetary policy stance to curb inflation and support macroeconomic stability.
According to the Governor of the apex bank, Mr Yemi Cardoso, who chaired the committee, the Monetary Policy Rate (MPR), which serves as the benchmark interest rate, remains at 26.50 per cent. The MPC also retained the asymmetric corridor around the MPR at +50 basis points and -450 basis points.
In addition, the Cash Reserve Ratio (CRR) for commercial banks was left unchanged at 45.00 per cent, while the CRR for merchant banks remains at 16.00 per cent. The committee also retained the CRR on non-Treasury Single Account (Non-TSA) public sector deposits at 75.00 per cent, with the liquidity ratio at 30.00 per cent.
The decision reflects the apex bank’s continued commitment to containing inflationary pressures through a restrictive monetary policy while safeguarding the resilience of Nigeria’s financial system amid ongoing macroeconomic adjustments.
By keeping all policy tools unchanged, the MPC signalled its intention to continue managing excess liquidity in the banking sector and maintain stability in financial markets.
The move is also expected to provide greater policy certainty for investors and businesses monitoring the country’s monetary policy direction.
The latest decision also means borrowing costs are likely to remain elevated in the near term as the central bank continues to prioritise price stability over monetary easing.
Analysts had expected the CBN committee to retain the rate after Nigeria’s headline inflation came in at 15.91 per cent as of June 2026, marking a slight decline from 15.93 per cent in May.
However, even as overall price growth has moderated significantly compared to previous periods, food inflation remains a persistent challenge, accelerating to 17.52 per cent in June.
By Aduragbemi Omiyale
Shareholders of Unilever Nigeria Plc will receive an interim dividend of N2 per share, the board of the organisation has said.
The cash reward was announced after the company released its financial statements for the first half of the year ended June 30, 2026.
The payment will be made on Friday, August 14, 2026, only to investors whose names appear on the Register of Members at the close of business on Friday, July 31, 2026.
A quick look at the financial performance of the firm in the first six months of this year showed that revenue improved by 22.22 per cent to N119.9 billion from the N98.1 billion achieved in the corresponding period of last year.
A rise in earnings also resulted in a 16.43 per cent surge in cost of sales, though this did not shrink the gross profit, which rose by 29.93 per cent to N54.7 billion from N42.1 billion. The operating profit stood at N24.4 billion in the period under review, higher than N18.8 billion in the same period of 2025, while the net finance income contracted by 9.43 per cent to N4.8 billion from N5.3 billion due to elevated borrowing costs.
Business Post reports that despite higher taxes paid in the first six months of 2026, the net profit grew by 8.33 per cent to N15.6 billion from N14.4 billion, enabling the board to pass on value to shareholders for their faith in the firm.
