Economy
Technology has Restored Confidence in Nigerian Capital Market—Stockbroker
By Dipo Olowookere
When investors do not have confidence in a country’s capital market, then there is a big danger because the market segment is one of the lifelines of any economy.
In order not to put the Nigerian economy in crisis, the Nigerian Stock Exchange (NSE), under the leadership of Mr Oscar Onyema, has come up with different initiatives.
One of these is the use of technology to run a transparent stock exchange, which has been commended by stakeholders in the industry.
At the moment, it is difficult for stockbrokers to trade shares of clients without first getting the approval of the owner.
In an interview with Vanguard, a Stockbroker and Chief Relationship Officer with Foresight Securities & Investment Limited, Mr Charles Fakrogha, said the use of technology by the NSE has helped to restore confidence investors have in the country’s capital market.
According to him, technology has allowed stockbrokers give their clients codes so as to validate trade orders.
He said this smart trading allow customers use their smart phone to trade anywhere in the world, explaining that it means they can put in their order, but before those trading orders will get to the trading engine, the stockbroker who gave the client the access must have validated the order. So, it is also making business easy for the capital market.
“Operators can now reach as many of their clients as possible unlike before when they have to manually put in the order.
“So, technology has done a lot in terms of enhancing the market. At the same time, it also has a flip side. Technology has also posed problem in terms of hacking, in terms of cyber-crime, but the measures put in place by the information technology department of the stock exchange and constant training and re-training of operators, to ensure that their system is fire proof, has helped in plugging the leakages.”
Furthermore, Mr Fakrogha said, “All the stockbroking firms have enhanced their Information Technology (IT) capability; most firms now trade remote. Most firms now have what is called Order Management System (OMS), where clients can put in their orders from any part of the world and those orders will get to the trading engine of the stock exchange, of course, validated by the trader before they get to the trading engine.”
Commenting on capital market infractions, the renowned stockbroker said, “Infraction has nothing to do with technology; it is integrity. However, technology has a role to play. There is a system at the Central Securities Clearing System (CSCS) initiated by the stock exchange.
“If I buy or sell for a client, the client gets automatic alert. That is what is called Trade Alert. If I as a stockbroker, I buy or sell for a client, he/she receives trade alert on his/her phone. So, if the client sees a trade on his portfolio that a broker has sold and did not give the mandate.
“Of course, it is obviously, an unauthorized sale. It is left for the client to report the transaction to the appropriate authorities. If the client did not do anything, of course, the stock exchange will not know.
“So, when a client is opening their trading account, they must insist that they will like to have a trade alert. The trade alert is now made compulsory. As soon as a client fills the form and you send it to the CSCS, automatically, the investor will be on trade alert.
“It is a very good innovation and it has been on for a long time. So, when the unauthorized sale takes place, the investors can make a report and where the broker cannot give reasonable explanation, the investor can take it up at the level of the Nigerian Stock Exchange and the problem will be resolved.
“As for me, I think technology has played a major role in terms of checking unauthorized sale, unlike in the past when a broker will sell and the client will not get any notice until one or two years after.”
On the direct cash payment to customers introduced by regulators, Mr Fakrogha said, “With direct cash settlement, if I sell shares for a client, all the proceeds will not come to my account. It is only my commission that comes to me while the proceeds go to the client.
“For us, that is a major breakthrough in terms of technology. This has come to also eliminate market infraction and this is major breakthrough on how technology has assisted to bring sanity in the capital market. It will interest you to know that Foresight is one of the stockbroking firms at the forefront of implementing the stock exchange’s direct cash settlement initiative.”
By Adedapo Adesanya
Dangote Petroleum Refinery imported a total of $3.74 billion) worth of crude oil in 2025, to make up for shortfalls that threatened the plant’s 650,000-barrel-a-day operational capacity.
The data disclosed in the Central Bank of Nigeria’s Balance of Payments report noted that “Crude oil imports of $3.74 billion by Dangote Refinery” contributed to movements in the country’s current account position, as Nigeria imported crude oil worth N5.734 trillion between January and December 2025.
Last year, as the Nigerian National Petroleum Company (NNPC), which is the refinery’s main trade partner and minority stakeholder, faced its challenges, the company had to forge alternative supply links. This led to the importation of crude from Brazil, Equatorial Guinea, Angola, Algeria, and the US, among others.
For instance, in March 2025, the company said it now counts Brazil and Equatorial Guinea among its global oil suppliers, receiving up to 1 million barrels of the medium-sweet grade Tupi crude at the refinery on March 26 from Brazil’s Petrobras.
Meanwhile, crude oil exports dropped from $36.85 billion in 2024 to $31.54 billion in 2025, representing a 14.41 per cent decline, further shaping the external balance.
The report added that the refinery’s operations also reduced Nigeria’s reliance on imported fuel, noting that “availability of refined petroleum products from Dangote Refinery also led to a substantial decline in fuel imports.”
Specifically, refined petroleum product imports fell sharply to $10.00 billion in 2025 from $14.06 billion in 2024, representing a 28.9 per cent decline, while total oil-related imports also eased.
However, this was offset by a rise in non-oil imports, which increased from $25.74 billion to $29.24 billion, up 13.6 per cent year-on-year, reflecting sustained demand for foreign goods.
At the same time, the goods account remained in surplus at $14.51 billion in 2025, rising from $13.17 billion in 2024, supported largely by activities linked to the Dangote refinery and improved export performance in other segments.
The CBN stated that the stronger goods balance was driven by “significant export of refined petroleum products worth $5.85bn by Dangote Refinery,” alongside increased gas exports to other economies.
Nigeria posted a current account surplus of $14.04 billion in 2025, lower than the $19.03 billion recorded in 2024 but significantly higher than $6.42 billion in 2023. The decline from 2024 was driven partly by structural changes in oil trade flows, including crude imports for domestic refining, according to the report.
Pressure on the current account came from higher external payments. Net outflows for services rose from $13.36 billion in 2024 to $14.58 billion in 2025, driven by increased spending on transport, travel, insurance, and other services.
Similarly, net outflows in the primary income account surged by 60.88 per cent to $9.09 billion, largely due to higher dividend and interest payments to foreign investors.
In contrast, secondary income inflows declined slightly from $24.88 billion in 2024 to $23.20 billion in 2025, as official development assistance and personal transfers weakened, although remittances remained a key source of inflow, as domestic refineries grappled with persistent feedstock shortages, exposing a deepening supply paradox in the country’s oil sector.
This comes despite the Federal Government’s much-publicised naira-for-crude policy designed to prioritise local supply.
By Aduragbemi Omiyale
An application has been submitted by Sovereign Trust Insurance Plc for its proposed N5.0 billion rights issue.
The application was sent to the Nigerian Exchange (NGX) Limited, and it is for approval to list shares from the exercise when issued to qualifying shareholders.
A notice signed by the Head of Issuer Regulation Department of the exchange, Mr Godstime Iwenekhai, disclosed that the request was filed on behalf of the underwriting firm by its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities.
The company intends to raise about N5.022 billion from the rights issue to boost its capital base, as demanded by the National Insurance Commission (NAICOM) for insurers in the country.
Sovereign Trust Insurance plans to issue 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026.
“Trading license holders are hereby notified that Sovereign Trust Insurance has through its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities, submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026,” the notification read.
By Adedapo Adesanya
Food Concepts Plc, the parent company of fast food brands like Chicken Republic and PieXpress, has disclosed plans to pay 10 Kobo in interim dividend to new and existing shareholders for the 2026 financial year.
This was disclosed by the company in a notice to the NASD Over-the-Counter (OTC) Securities Exchange, where it trades its securities.
The notice indicated that the proposed interim dividend, which comes with no bonus, will be paid to those who hold the stocks of the company as of the qualification date for the dividend, which was Tuesday, March 24.
This means only those who hold the company’s shares as of the closing session will be eligible to receive the stipulated dividend payment.
The shareholders of the company will be credited with the 10 Kobo dividend on Tuesday, March 31.
The notice noted that the closure of the company’s register will be on Wednesday, March 25, through Friday, March 27, 2026, both days inclusive.
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