Economy
Trapped Foreign Investors Invest in Nigerian Stocks, OMO Bills
By Dipo Olowookere
Some foreign portfolio investors, who sold off their Naira investments before and shortly after the lockdown in Nigeria in high hopes of repatriating their funds, but got trapped, are already re-investing their money in local investment tools, an investigation by Business Post has revealed.
In March 2020, the Central Bank of Nigeria (CBN) practically stopped the sale of foreign exchange (forex) to authorised traders.
Since the lockdown in Lagos, Abuja and Ogun State, Dollar sales at the Investors and Exporters (I&E) window have reduced drastically.
The I&E segment of the forex platform was created by the apex bank about three years ago for the exchange of Naira to Dollar by FPIs and business corporations.
Before the movement cessation on March 30, the average daily trading value at the investors’ segment was within $400 million to $500 million, but since the lockdown, it has broadly dropped to $30 million to $40 million. This has largely eased the pressure on the domestic currency and there have been huge drop in demand for forex at the market as well as supply.
Business Post reports that on Friday, the total value of transactions at the I&E segment was $62.45 million, higher than the $25.43 million recorded on Thursday.
Nigeria has been battling with Dollar inflows due to fall in the prices of crude oil, which contributes over 80 percent to its foreign earnings, causing the nation’s external reserves, where the CBN takes forex to defend the Naira, to deplete.
Business Post observed that some FPIs, who sold their Naira investments last month, have been unable to repatriate their proceeds weeks after. This has forced some of them to reconsider putting the funds back into the capital market.
In the past two to three weeks, the Nigerian equity market has suddenly experienced surge in the trading volume and value. It has also regained its strength despite the threats posed by the coronavirus disease, which has plunged the global economy into a recession, according to the International Monetary Fund (IMF).
Last week, the stock market appreciated by 7.19 percent week-on-week. This was after it moved up by 1.37 percent the previous week. This week, the market receded by 1.41 percent as a result of profit taking, though there was a 0.57 percent growth recorded yesterday (Friday).
Investigations by Business Post showed that non-resident investors, who could not get their funds out of the country, chose to turnover the money and wait until the restrictions are lifted and Dollar supply to the I&E is resumed by the CBN.
At the treasury bills market, in the last two weeks, there have been upsurge in transactions at the Open Market Operations (OMO).
Last year, the CBN restricted local retail and institutional investors from buying its OMO bills and only allowed FPIs to invest in the liquidity management tool.
Since the lockdown commenced late last month, the OMO auctions had been snubbed by offshore investors, but when they could not repatriate their funds, they began to look the way of the exercise about two weeks ago.
At the last exercise held on Thursday, OMO bills worth N100 billion were auctioned across 89-day, 180-day and 341-day tenor, but the bank received subscriptions worth N323.8 billion from investors.
According to the analysis, N10 billion worth of the short-dated bill were offered for sale, another N10 billion worth of 180-day instrument were auctioned, while N80 billion worth of 341-day maturity were offered.
But when the bids were analysed, investors staked N64.10 billion on the short-dated bill, N33.50 billion was staked on the mid-dated bill, while N226.16 billion was staked on the long-dated bill.
A day earlier, the Debt Management Office (DMO) auctioned local bonds worth N60 billion to investors, but when the bids were analysed, the papers were oversubscribed by 459 percent, with the debt office getting subscriptions valued at N275.67 billion.
Next Monday, President Muhammadu Buhari has a huge task to carry out. Nigerians would be expecting to hear his verdict on the present lockdown, which is currently in its fourth week.
Nigeria has continued to witness rise in the cases of COVID-19. As at Friday, a total of 1,095 cases of the virus have been confirmed in the country.
The Nigeria Centre for Disease Control (NCDC) last night announced 114 new cases, with 80 in Lagos, 21 in Gombe State, 5 in Abuja, 2 each in Zamfara and Edo States, and one each in Ogun, Oyo, Kaduna and Sokoto States.
Lagos has the highest number of cases, 657 cases, followed by Abuja with 138 cases.
If the lockdown is extended by another two weeks or one, the capital market may continue to benefit from it because it means more liquidity at the market, which is enough to keep the positive momentum at the stock market on.
However, most Nigerians, who are daily income earners will continue to groan as some of them claimed they have not received palliatives from government to encourage them to stay home any longer.
By Adedapo Adesanya
TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the divestment of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
The Renaissance JV, formerly known as the SPDC JV, is an unincorporated joint venture between Nigerian National Petroleum Company Limited (55 per cent), Renaissance Africa Energy Company Ltd (30 per cent, operator), TotalEnergies EP Nigeria (10 per cent) and Agip Energy and Natural Resources Nigeria (5 per cent), which holds 18 licences in the Niger Delta.
In a statement by TotalEnergies on Wednesday, it was stated that under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil.
Production from these licences, it was said, represented approximately 16,000 barrels equivalent per day in company’s share in 2025.
The agreement also stated that TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the three other licences of Renaissance JV which are producing mainly gas, namely OML 23, OML 28 and OML 77, while TotalEnergies will retain full economic interest in these licences, which currently account for 50 per cent of Nigeria LNG gas supply.
Business Post reports that the conclusion of the deal is subject to customary conditions, including regulatory approvals.
“TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the sale of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
“Under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell to Vaaris its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil. Production from these licences represented approximately 16,000 barrels equivalent per day in the company’s share in 2025.
“TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the 3 other licenses of Renaissance JV, which are producing mainly gas (OML 23, OML 28 and OML 77), while TotalEnergies will retain full economic interest in these licenses, which currently account for 50 per cent of Nigeria LNG gas supply. Closing is subject to customary conditions, including regulatory approvals,” the statement reads in part.
The development is part of TotalEnergies’ strategies to dump more assets to lighten its books and debt.
By Aduragbemi Omiyale
The trading licence of Monument Securities and Finance Limited has been revoked by the regulatory arm of the Nigerian Exchange (NGX) Group Plc.
Known as NGX Regulations Limited (NGX Regco), the regulator said it took back the operating licence of the organisation after it shut down its operations.
The revocation of the licence was approved by Regulation and New Business Committee (RNBC) at its meeting held on September 24, 2025, a notice from the signed by the Head of Market Regulations at the agency, Chinedu Akamaka, said.
“This is to formally notify all trading license holders that the board of NGX Regulation Limited (NGX RegCo) has approved the decision of the Regulation and New Business Committee (RNBC)” in respect of Monument Securities and Finance Limited, a part of the disclosure stated.
Monument Securities and Finance Limited was earlier licensed to assist clients with the trading of stocks in the Nigerian capital market.
However, with the latest development, the firm is no longer authorised to perform this function.
Economy
NEITI Advocates Fiscal Discipline, Transparency as FG, States, LGs Get N6trn in Three Months
By Adedapo Adesanya
The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for fiscal discipline and transparency as data showed that federal government, states, and local governments shared a whopping N6 trillion Federation Account Allocation Committee (FAAC) disbursements in the third quarter of last year.
In its analysis of the FAAC Q3 2025 allocation, the body revealed that the federal government received N2.19 trillion, states received N1.97 trillion, and local governments received N1.45 trillion.
According to a statement by the Director of Communication and Stakeholders Management at NEITI, Mrs Obiageli Onuorah, the allocation indicated a historic rise in federation account receipts and distributions, explaining that year-on-year quarterly FAAC allocations in 2025 grew by 55.6 per cent compared with Q3 of 2024 while it more than doubling allocations over two years.
The report contained in the agency’s Quarterly Review noted that the N6 trillion included 13 per cent payments to derivative states. It also showed that statutory revenues accounted for 62 per cent of shared receipts, while Value Added Tax (VAT) was 34 per cent, and Electronic Money Transfer Levy (EMTL) and augmentation from non-oil excess revenue each accounted for 2 per cent, respectively.
The distribution to the 36 states comprised revenues from statutory sources, VAT, EMTL, and ecological funds. States also received additional N100 billion as augmentation from the non-oil excess revenue account.
The Executive Secretary of NEITI, Mr Sarkin Adar, called on the Office of the Accountant General of the Federation, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) FAAC, the National Economic Council (NEC), the National Assembly, and state governments to act on the recommendations to strengthen transparency, accountability, and long-term fiscal sustainability.
“Though the Quarter 3 2025 FAAC results are encouraging, NEITI reiterates that the data presents an opportunity to the government to institutionalise prudent fiscal practices that will protect the gains that have been recorded so far in growing revenue and reduce vulnerability to commodity shocks.
“The Q3 2025 FAAC results are encouraging, but windfalls must be managed with discipline. Greater transparency, realistic budgeting, and stronger stabilisation mechanisms will ensure these resources deliver durable benefits for all Nigerians,” Mr Adar said.
NEITI urged the government at all levels to ensure the growth of Nigeria’s sovereign wealth and stabilisation capacity, by committing to regular transfers to the Nigeria Sovereign Wealth Fund and other related stabilisation mechanisms in line with the fiscal responsibility frameworks.
It further advised governments at all levels to adopt realistic budget benchmarks by setting more conservative and achievable crude oil production and price assumptions in the budget to reduce implementation gaps, deficit, and debt metrics.
This, it said, is in addition to accelerating revenue diversification by prioritising reforms that would attract investments into the mining sector, expedite legislation to modernise the Mineral and Mining Act, support reforms in the downstream petroleum sector, as well as the full implementation of the Petroleum Industry Act (PIA) to expand domestic refining and value addition.
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