Economy
Stock Investors Loses N74bn as Inflation Numbers Dampen Mood
By Dipo Olowookere
It was another awful day for stock investors at the Nigerian Exchange (NGX) Limited as the market further declined by 0.13 per cent on Wednesday.
The loss recorded at Customs Street at midweek was influenced by selling pressure, triggered by another rise in the inflation rate in the country.
The National Bureau of Statistics (NBS) yesterday disclosed that the average prices of goods and services increased by 33.69 per cent in April 2024 from 33.20 per cent in March 2024.
The soaring inflation rate was attributed to the hike in the prices of food items, which pushed the food inflation to 40.53 per cent in the period under review.
The jump in inflation only signals another tightening of the monetary policies by the Central Bank of Nigeria (CBN) next week, when it meets to decide what the benchmark interest rate should be.
The Governor of the CBN, Mr Yemi Cardoso, recently hinted that the cost of borrowing would remain high until inflation cools.
The inflation numbers on Wednesday spurred traders to further book profit, weakening the All-Share Index (ASI) by 130.56 points at the close of the session to 97,343.42 points from 97,473.98 points, as the market capitalisation declined by N74 billion to N55.058 trillion from N55.132 trillion.
Business Post reports that investor sentiment was poor yesterday as the bourse closed with 30 price losers and 13 price gainers, implying a negative market breadth index.
FTN Cocoa and PZ Cussons lost 10.00 per cent each to sell for N1.44 and N20.25 apiece, Sterling Holdings decreased by 9.89 per cent to N4.01, The Initiates slumped by 9.78 per cent to N2.03, and UAC Nigeria contracted by 9.76 per cent to N13.40.
Conversely, Custodian Investment appreciated by 9.63 per cent to N10.25, International Energy Insurance gained 9.29 per cent to close at N1.53, Sovereign Trust Insurance rose by 7.89 per cent to 41 Kobo, NPF Microfinance Bank soared by 7.10 per cent to N1.96, and Champion Breweries surged by 6.11 per cent to N3.30.
The panic selling at midweek raised the trading volume and value by 15.98 per cent and 22.41 per cent, respectively, while the number of deals retreated by 7.77 per cent.
Investors bought and sold 355.6 million shares worth N7.1 billion in 7,333 deals during the trading day versus the 306.6 million shares worth N5.8 billion transacted in 7,951 deals on Tuesday.
GTCO topped the activity chart with the sale of 71.9 million equities valued at N3.0 billion, Custodian Investors traded 65.5 million stocks for N785.3 million, Access Holdings exchanged 24.2 million shares valued at N416.7 million, Tantalizers transacted 21.3 million equities worth N12.4 million, and Prestige Assurance sold 17.5 million stocks for N9.0 million.
By Aduragbemi Omiyale
Nigeria slightly surpassed its quota set by the Organisation of the Petroleum Exporting Countries (OPEC) in July 2026.
In the month under review, the country produced about 1.57 million barrels of crude oil per day.
It was the third consecutive month Africa’s largest oil-producing nation was meeting its monthly quota, set to stabilise the price of the commodity on the global market by the oil cartel.
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday showed that the 1.5 million barrels per day ceiling for Nigeria was surpassed last month.
The agency disclosed in a statement today that the country produced 1.505mbpd of crude oil and 0.17mbpd of condensate, bringing the combined daily production to 1.67mbpd.
In the month under review, the daily peak production of crude oil and condensate was 1.78mbpd, while the lowest daily production was 1.57mbpd.
Although Nigeria met its OPEC quota in the month of July, the statistics show that on a month-on-month basis, production fell by 4 per cent.
This was attributed to the decline in production due to operational challenges experienced at the Erha and Akpo fields, which impacted crude oil output during the period under review.
These disruptions constrained production volumes and contributed significantly to the overall reduction in national crude oil output.
Despite the challenges, production operations across most other producing assets remained relatively stable, with operators implementing measures aimed at maintaining production efficiency and minimising the impact of operational constraints, NUPRC stated.
By Aduragbemi Omiyale
The over 9 billion shares of Lasaco Assurance Plc issued to shareholders of the company via a rights issue have been listed on the Nigerian Exchange (NGX) Limited.
The equities were brought to Customs Street on Wednesday by the organisation, increasing its total issued and fully paid-up share capital.
Lasaco Assurance, which scaled the recapitalisation hurdle of the National Insurance Commission (NAICOM) in July 2026, raised fresh capital from the capital market to shore up its capital base.
The underwriting firm got about N18.5 billion from the rights issue, which involved the issuance of 9,236,321,546 ordinary shares at a unit price of N2.00.
The exercise was on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
Confirming the listing of the additional stocks of Lasaco Assurance today, the Head of Issuer Regulation Department of NGX RegCo, Mr Godstime Iwenekhai, announced in a circular that, “Trading licence holders are hereby notified that an additional 9,236,321,546 ordinary shares of 50 Kobo each of Lasaco Assurance Plc were today, Wednesday, August 12, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 9,236,321,546 ordinary shares of 50 Kobo each at N2.00 per share on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
“With the listing of the additional 9,236,321,546 ordinary shares, the total issued and fully paid-up share capital of Lasaco Assurance Plc has now increased from 11,083,585,855 to 20,319,907,401 ordinary shares of 50 Kobo each.”
By Adedapo Adesanya
The Nigerian Insurers Association (NIA) has said the successful recapitalisation of the insurance industry will strengthen the sector’s ability to support financial stability and economic growth.
NIA Chairman, Mrs Ebelechukwu Nwachukwu, said a well-capitalised insurance industry would be better positioned to meet its obligations promptly, underwrite complex and large-scale risks and serve as a dependable pillar of the Nigerian economy.
She made the remarks while commending the National Insurance Commission (NAICOM) for its structured implementation of the new minimum capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Mrs Nwachukwu said NAICOM’s clear guidelines, systematic verification process, defined timelines and rigorous supervision had provided operators with a credible framework for navigating the recapitalisation exercise.
She described the outcome as a major milestone for the industry and congratulated the 43 insurance and reinsurance companies that have successfully met the prescribed minimum capital requirements.
According to her, the exercise represents “a major win not just for regulators and operators, but for policyholders, investors and the wider Nigerian economy.”
Mrs Nwachukwu said the association would continue to work with NAICOM and other stakeholders to consolidate the gains of the exercise, with emphasis on sustainable industry growth, stronger market conduct and improved consumer confidence.
The official also expressed solidarity with the eight companies still undergoing final verification and regulatory review, urging them to remain confident as NAICOM completes the process within the 14-day review period.
The NIA chairman assured policyholders and the wider business community that the insurance industry would emerge from the recapitalisation exercise stronger, more resilient and better positioned to contribute to Nigeria’s economic development.
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