Economy
Oyo, Chinese Firm Seal $2b Investment Deal
By Modupe Gbadeyanka
A $2 billion (about N636 billion) investment deal has been completed between a Chinese conglomerate, China Polaris, and the Oyo State government.
The deal, Business Post learnt, is for the establishment of a free trade zone for the manufacturing of automotive products, solar power generation, among others.
Governor of the state, Mr Abiola Ajimobi, disclosed on Tuesday during the turning of the sod to herald the construction work for the project, tagged Polaris-Pacesetter Free Trade Zone, located along the Lagos-Ibadan Expressway, Ibadan, expressed optimism that the project, which occupies a thousand hectares of land, would be ‘the new hub of African economy’ when completed.
He further disclosed that the first phase of the project comprising five factories is estimated to cost about N159 billion ($500 million) and is expected to be completed before the end of the first quarter of next year, while the entire project is expected to be completed in the next two years.
Mr Ajimobi described the event as the outcome of a journey of five years of intensive hunt for investors in core economic activities in his determination to achieve growth and sustained development in the state.
“During the period, I was in China for two weeks to seal the agreement, which culminated in the ceremony we are having here today (Tuesday).
“I’m happy to announce to the people of Oyo State that today berths the result of a five-year intensive hunt for genuine investors to come and partner us in the state.
“Polaris-Pacesetter Free Trade Zone is an industrial revolution with the total package of $2 billion investment aimed at pushing the state to the top notch, not only in Nigeria but in Africa.
“The multiplier effect of today’s ceremony is the imminent massive job creation and financial freedom for the government and the good people of our dear state,” he said.
However, Mr Ajimobi appealed to the Chinese investors to fast-track construction works at the trade zone, with the target of completing the first phase in the next three months.
Describing China as the fastest growing economy in the world, the Governor said that the industrial template to be propelled by the Polaris-Pacesetter Free Trade Zone would enhance agricultural, commercial, educational and infrastructural development in the state.
He was upbeat that the project would be a source of envy to states that border Oyo when completed.
The Governor said that the time had come for the state to add value to agriculture by ending the regime of wastages besetting the sector and the state’s natural resources.
President of China Polaris, Mr Zhang Wendong, and the leader of delegation, who is the representative of the Chinese government, Ms Zhang Xuemei, were among the top Chinese officials on the train.
Mr Wendong assured the state government of the investors’ irrevocable commitment to the Polaris-Pacesetter Free Trade Zone project, saying that the first phase of the project, which comprised of five factories, would gulp about N159 billion ($500 million).
He hinted that the conglomerate would ensure the completion of the last phase of the project within the next two years timeline that was proposed by the state government, which, he said, would include an assemblage of automotive products and production of solar energy to power.
He said, “Polaris-Pacesetter Free Trade Zone will encompass light, medium and heavy manufacturing lines of $2 billion. The first phase will cost $500 million, which will involve production and assemblage of vehicle parts and solar energy.
“We are targeting solar energy that will power the whole of Ibadan and its environs. This is the first of its kind in Africa and it will be replicated in other African countries.”
By Aduragbemi Omiyale
The national scale long-term issuer rating of Fidson Healthcare Plc has been upgraded to A+(NG) from A(NG), with its short-term issuer ratings of A1(NG) affirmed.
This action was taken by GCR Ratings, which also accorded the leading healthcare organisation in Nigeria with a stable outlook in a statement obtained by Business Post.
It was explained that the company achieved this latest development amid its strong competitive position and improved financial profile.
GCR said Fidson Healthcare’s debt metrics remain moderate, bolstered by a successful N21 billion rights issue expected in Q2 2026 and robust cash flows that support strong liquidity, though large expansionary investments and heightened working capital requirements slightly constrain the rating.
Fidson is a prominent pharmaceutical manufacturer in Nigeria, with over 350 products registered with the National Agency for Food and Drug Administration and Control (NAFDAC). Its product portfolio encompasses a wide range of therapeutic categories, including antibiotics, infusion products, over-the-counter products, and lifestyle healthcare solutions.
The company is enhancing its market position through ongoing investments in manufacturing capacity, product innovation, automation, and operational efficiency.
The firm operates through an extensive network of over 120 distributors across Nigeria, ensuring strong retail visibility and market penetration.
To further strengthen its competitive position, the company is investing in a greenfield automated manufacturing facility, additional infusion lines, and expanded tablet lines, all expected to become operational in the near term. This capital expenditure will significantly increase productive capacity, improve operational efficiency, and enhance export competitiveness in the medium term.
In terms of its liquidity assessment, its 12-month sources versus uses coverage at 1.6x and 24-month coverage at 1.4x, supported by access to diverse funding sources.
Estimated liquidity sources include forecasted operating cash flow of N15.1 billion, cash holdings of N4.7 billion, inventory valued at approximately N17.5 billion, and cash of N21 billion from the equity raise. These resources are sufficient to cover anticipated near-maturing debt obligations of N23.4 billion and forecast medium-term capital spending of around N20 billion, as well as a dividend payout of N3.7 billion in 2026.
By Bon Peters
The new acting Comptroller of the Eastern Marine Command of the Nigeria Customs Service (NCS), Mr Esien Etim Esiet, a Deputy Comptroller of Customs, has promised to maintain an open-door policy with stakeholders, including licensed agents and partners.
He gave this assurance when he officially assumed leadership of the command on Wednesday, May 20, 2026, according to a statement issued by the command’s spokesman, Mr Joshua Iliya, a Deputy Superintendent of Customs (DSC), in Port Harcourt, Rivers State.
In a proactive move to strengthen maritime security and trade facilitation, he immediately initiated an extensive tour of operational facilities and high-level engagements across the region, including Rivers (Abonnema and Onne Outstations), Akwa Ibom (Oron Outstation), and Cross River (Calabar Outstation) States.
During the visitations, Mr Esiet conducted rigorous inspections of equipment and personnel readiness, emphasising that the success of the command relied on a united front, adding that a “sustained synergy is our greatest weapon in combating smuggling and maritime crimes,” insisting that a united front was non-negotiable for national security.
On the inter-agency level to foster a one-service approach, DC Esiet held strategic meetings with the Customs Area Controllers of Port Harcourt II (Onne), the Oil and Gas Free Trade Zone, and the Cross River/Calabar Free Trade Zone/Akwa Ibom Area Command.
To further reinforce maritime safety, he equally paid courtesy visits to top maritime security brass, including the Commander, NNS Pathfinder, Port Harcourt, the Commanding Officer, Navy Forward Operation Base (FOB), Ibaka, the Flag Officer Commanding (FOC), Eastern Naval Command, and the Cross River State Commissioner of Police.
On community and private sector partnership and in recognition of the vital role of grassroots support, DC Esiet visited monarchs in the region, underscoring commitment to maintaining deep-rooted ties with host communities, among others.
On fiscal policy compliance, he reiterated his administration’s resolve to strictly align with the policy direction of the Comptroller-General of Customs, Mr Bashir Adewale Adeniyi, emphasising that his leadership would focus on streamlining maritime enforcement protocols, ensuring officers were motivated and equipped while maintaining an open-door policy with licensed agents and partners.
The Eastern Marine Command, which is a specialised wing of customs, is dedicated to patrolling the nation’s Eastern Waterways, preventing smuggling, and ensuring the security of maritime trade.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a marginal loss of 0.02 per cent on Tuesday, May 26, due to selling pressure, as investors cut down their exposure to unlisted stocks.
During the session, the volume of securities traded by investors jumped by 45.6 per cent to 2.2 million units from the previous day’s 1.5 million units, the value of securities increased by 119.5 per cent to N129.9 million from the N59.2 million recorded a day earlier, and the number of deals soared by 92.6 per cent to 52 deals from the preceding day’s 27 deals.
At the close of business, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and Central Securities and Clearing System (CSCS) Plc with 61.2 million units exchanged for N4.1 billion.
GNI Plc was also the most active stock by volume on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc followed with 1.1 billion units traded for N415.7 million.
Five securities recorded various movements yesterday at the OTC securities exchange, with three price gainers and two price losers.
For the advancers, they were led by 11 Plc, which added N22.11 to its share price to close at N243.11 per unit versus N221.10 per unit, CSCS Plc grew by N2.95 to N77.80 per share from N74.85 per share, and IPWA Plc expanded by 80 Kobo to N8.83 per unit from N8.03 per unit.
On the flip side, FrieslandCampina Wamco Nigeria Plc shrank by N12.11 to N167.89 per share from N180.00 per share, and Geo-Fluids Plc lost 2 Kobo to sell at N2.98 per unit versus Monday’s N3.00 per unit.
As a result, the market capitalisation dropped N600 million to close at N2.571 trillion compared with the previous day’s N2.571 trillion, and the NASD Unlisted Security Index (NSI) fell by 1.00 points to 4,297.17 points from 4,298.17 points.
The market will be closed on Wednesday (May 27) and Thursday (May 28) for the Eid al-Kabir holidays.
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