Economy
PZ Cussons Stocks Soar After Cancelation of Exit from Nigeria, Others
By Adedapo Adesanya and Aduragbemi Omiyale
The shares of PZ Cussons appreciated by 9.36 per cent on the floor of the Nigerian Exchange (NGX) Limited on Thursday to N45.00 from N41.15 on Wednesday.
This was buoyed by news that the company has halted its Nigeria exit plans and unveiled fresh expansion targets driven by renewed growth momentum in its key markets of the country as well as others.
This followed the conclusion of a strategic review, outlining an ambitious plan to strengthen the company’s presence across key markets on the continent including Nigeria, Kenya, and Ghana.
The company in a statement on its website on Thursday noted that the renewed focus formed part of a broader strategy to build a portfolio balanced between Developed markets such as the United Kingdom and Australia/New Zealand, and emerging markets including Indonesia and Nigeria.
The review, which began in April 2024, had included the sale of the Group’s 50 per cent stake in PZ Wilmar Ltd., its non-core edible oils joint venture in Nigeria to its partner, Wilmar International, for $70 million.
According to the company, the review attracted substantial interest from potential buyers.
However, the Board resolved that shareholder value would be better maximised by retaining the Africa business and pursuing long-term growth.
PZ Cussons stated that its new strategic direction for Africa would focus on building a winning portfolio of “locally loved brands,” anchored on three major pillars.
The first pillar was core growth across Nigeria, Kenya, and Ghana.
This will involve plans to deepen brand-building efforts, expand distribution, improve in-store execution, strengthen revenue-growth management, and enhance digital engagement.
The firm noted that its Nigerian subsidiary had doubled the number of directly served retail outlets since the 2022 financial year, boosting recent performance.
The second pillar targets category expansion into adjacencies such as men’s grooming and beauty, leveraging established brands including Venus, Imperial Leather and Premier.
The third pillar focuses on pan-African expansion, with new markets expected to be supplied through its existing operations in Nigeria and Kenya.
Highlighting Africa’s long-term potential, the Group said the continent’s population was projected to grow by more than 900 million over the next 25 years.
This represented over half of global population growth. Nigeria alone is expected to add over 100 million people, supported by rapid urbanisation and an expanding middle class.
PZ Cussons added that recent economic and currency improvements had supported double-digit revenue growth in the first half of its financial year.
The board expressed confidence in the company’s prospects, citing deep local insights, decades of brand heritage and strong manufacturing and distribution capabilities, especially as several multinationals had exited the market in recent years.
It noted that nearly 80 per cent of revenue in Nigeria was generated from brands that hold the number-one or number-two position in their categories.
“In the 2025 financial year, Africa contributed £141 million in revenue and £16 million in adjusted operating profit, representing 27 per cent and 30 per cent of the Group’s totals respectively.
“Following the divestment from PZ Wilmar, its Africa operations now comprise Family Care and Electricals in Nigeria, and Family Care businesses in Ghana and Kenya.
“The Group holds a 73.3 per cent stake in PZ Cussons Nigeria Plc,” the statement said.
Commenting, Mr Jonathan Myers, Chief Executive Officer of PZ Cussons, said, “Since embarking on the strategic review of Africa, we have identified or agreed the sale of non-core or surplus assets totalling over £70 million.
“This, combined with continued cash generation of the Group, has significantly strengthened our balance sheet.
“After a thorough review of the remainder of the Africa business and careful evaluation of the offers received, the Board believes it is in the best interest of our stakeholders to retain the business.
“Africa is a market of great opportunity. Given PZ Cussons’ deep heritage there, and given the strength of our brands and operational capabilities, we are well-placed to win over the longer term.
“Benefitting from a more stable economic environment in recent months and with positive fiscal reform, momentum in our Africa business is strong, with double-digit revenue growth in the first half of the financial year.
“We will now look to build on this strong performance and extend our category leadership, with nearly 80 per cent of our revenue in Nigeria already coming from brands with #1 or #2 positions.
“With plans underpinned by appropriate guardrails established to reduce risk and manage volatility, we are confident that we have a business that is set up for success.
“We expect Africa to be a significant contributor to overall Group revenue growth as we seek to build a winning portfolio of locally-loved brands, balanced between Developed and Emerging markets.”
By Adedapo Adesanya
President Bola Tinubu has approved targeted incentives to unlock Shell’s long-delayed $5 billion Bonga South-West deep-offshore oil project.
The approval came while receiving a Shell delegation led by its Global Chief Executive Officer, Mr Wael Sawan, at the State House, Abuja, on Thursday.
According to the President’s Special Adviser on Media and Public Communication, Mr Sunday Dare, the approved incentives are “disciplined, targeted, and globally competitive,” designed to attract new capital without undermining government revenues.
“These incentives are not blanket concessions. They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition. My expectation is clear: Bonga Southwest must reach a Final Investment Decision within the first term of this administration.”
The Bonga Southwest project, located approximately 120 kilometres offshore Nigeria in water depths exceeding 1,000 metres, has been stalled for over a decade due to fiscal disagreements between the federal government and Shell Nigeria Exploration and Production Company and its joint venture partners.
The project, estimated to cost over $5 billion, is expected to produce about 150,000 barrels of oil per day at peak capacity and holds significant potential for gas production, experts say.
Previous administrations struggled to reach an agreement with Shell on the fiscal terms for the project, with the oil giant seeking incentives to make the capital-intensive deep-water development commercially viable amid declining global oil prices and Nigeria’s challenging investment climate.
Mr Tinubu directed his Special Adviser on Energy, Olu Verheijen, to facilitate the gazetting of the incentives in line with Nigeria’s existing legal and fiscal frameworks, including the Petroleum Industry Act 2021.
The President emphasised the strategic importance of the project to Nigeria’s economy, noting its potential to create thousands of direct and indirect jobs, generate significant foreign exchange inflows, and deliver sustained government revenues over its lifespan.
He added that the project would deepen Nigerian participation in offshore engineering, fabrication, logistics, and energy services. Tinubu reaffirmed his administration’s commitment to policy stability, regulatory certainty, and speed, noting that these reforms are critical to restoring investor confidence and positioning Nigeria as a preferred destination for large-scale energy investment.
He revealed that Shell and its partners have invested nearly $7bn in Nigeria in the past 13 months, particularly in the Bonga North and HI projects, describing this as evidence that the country’s economic and energy-sector reforms are yielding results.
Responding, Shell CEO Wael Sawan said Nigeria’s investment climate has improved remarkably under the Tinubu administration, adding that the company is increasingly confident in Nigeria as a destination for long-term investment.
The Bonga field, operated by Shell, commenced production in 2005 and was Nigeria’s first deep-water development.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange further moved southwards on Thursday by 0.24 per cent due to sustained selling pressure by investors.
During the session, the NASD Unlisted Security Index (NSI) went down by 8.91 points to 3,642.22 points from 3,651.13 points it closed on Wednesday, and the market capitalisation recorded a loss of N5.33 billion to end N2.179 trillion compared with the previous day’s N2.184 trillion.
The day’s trading data showed that the volume of securities traded by traders declined by 36.5 per cent to 2.9 million units from 4.5 million units, and the total number of deals slid by 4.8 per cent to 40 deals from the 42 deals recorded at midweek, while the value of securities increased by 12.8 per cent to N85.4 million from N75.7 million.
Central Securities Clearing System (CSCS) Plc ended the trading session as the most active stock by value on a year-to-date basis with 6.1 million units valued at N245.6 million, followed by FrieslandCampina Wamco Nigeria Plc with 866,615 units sold for N58.4 million, and MRS Oil Plc with 291,791 units traded at N58.3 million.
Geo-Fluids Plc ended the day as the most active stock by volume on a year-to-date basis with 7.7 million units worth N52.4 million, trailed by CSCS Plc with 6.1 million units sold for N245.6 million, and UBN Property Plc with 3.2 million units valued at N6.4 million.
Yesterday, the market breadth was flat as three price gainers and three price losers led by Nipco Plc which lost N15.90 to trade at N220.00 per share compared with the previous day’s N235.90 per share, FrieslandCampina Wamco Nigeria Plc tumbled by N2.13 to sell at N66.91 per unit versus N69.04 per unit, and Ge0-Fluids Plc declined by 21 Kobo to settle at N6.85 per share compared with Wednesday’s closing price of N7.06 per share.
On the flip side, MRS Oil Nigeria gained N5.00 to close at N200.00 per unit versus N195.00 per unit, CSCS Plc appreciated by 13 Kobo to N40.60 per share from N40.37 per share, and UBN Property Plc improved by 9 Kobo to N1.99 per unit versus N1.90 per unit.
By Adedapo Adesanya
The value of the Naira further depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, January 22 by N1.38 or 0.09 per cent to close at N1,422.07/$1, in contrast to the N1,420.69/$1 it ended on Wednesday.
This was due to FX demand pressure on the local currency in the official currency market in Nigeria.
However, the domestic currency got a reprieve against the Pound Sterling as it recorded a marginal gain of 28 Kobo to sell for N1,908.56/£1 compared to midweek’s value of N1,908.84/£1 and chalked up 22 Kobo on the Euro to quote at N1,665.26/€1 versus the previous day’s N1,665.48/€1.
The Nigerian currency, at the GTBank FX desk, N1 against the Dollar yesterday to settle at N1,430/$1 compared with the N1,429/$1 it was traded a day earlier, and at the black market, it remained unchanged at N1,485/$1.
The Naira continued to trade within range despite the fluctuations as consistent foreign exchange supply and the sustained emphasis on transparency in pricing by the Central Bank of Nigeria (CBN) continued to offer backing.
The bank’s medium-term outlook, which anticipates external reserves rising beyond the $50 billion mark later in the year, has also helped to reinforce confidence among investors and corporates.
Unlike earlier January periods marked by sharp volatility, the current environment has been defined by measured trading and limited speculative pressure, while FX inflows from exporters, non-bank corporate, individual, and other sources continue to flow easily.
Meanwhile, there was renewed weakness across crypto markets, with liquidation activity picking up and risk appetite fading across benchmarked tokens.
In the last 24 hours, Ripple (XRP) depreciated by 2.0 per cent to sell at $1.91, Ethereum (ETH) lost 1.5 per cent to quote at $2,969.33, Cardano (ADA) slumped by 0.9 per cent to $0.3618, Dogecoin (DOGE) weakened by 0.9 per cent to $0.1256, Solana (SOL) dropped 0.7 per cent to $128.93, and Bitcoin (BTC) slipped by 0.5 per cent to $89,644.20.
However, Litecoin (LTC) appreciated by 0.9 per cent to trade at $69.01, and Binance Coin (BNB) grew by 0.2 per cent to $891.41, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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