CAPITALDIGEST DAILY NEWS, 28/07/2025

DANGOTE REVEALS REFINERY EXPORTED ONE MILLION TONNES OF PETROL IN 50 DAYS

The Dangote oil refinery has begun exporting Premium Motor Spirit to other countries of the world. President of the Dangote Group, Alhaji Aliko Dangote, disclosed this on Tuesday at the ongoing Global the Dangote Petroleum refinery has begun exporting Premium Motor Spirit, selling approximately 1.35 billion litres of petrol to other countries worldwide in the past 50 days. President of the Dangote Group, Alhaji Aliko Dangote, disclosed this at the ongoing Global Commodity Insights Conference on West African Refined Fuel Markets hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in partnership with S&P Global Insights. According to Dangote, between June and July 2025, the refinery exported up to 1 million tonnes of petrol, being approximately 1.35 billion litres when converted. “Today, Nigeria has actually become a net exporter of refined products. Before I came on the podium, I asked my people how many tonnes of PMS we have actually exported. From June beginning to date, we have exported about 1 million tonnes of PMS, within the last 50 days,” he said. However, despite the Dangote refinery’s export drive, Nigeria still relies heavily on fuel imports. According to the NMDPRA, Nigeria and other West African countries still import nearly 69 per cent of their gasoline supply from overseas markets. NMDPRA’s Chief Executive, Farouk Ahmed, disclosed this at the same conference, saying that statistical data for 2025 indicates that an average of 2.05 million metric tonnes of gasoline is traded monthly in the region, with 69 per cent being imported. In fact, in the last eight days, a total of 231.881 million litres of PMS have been imported into the country, findings by The PUNCH have shown. According to the latest Shipping Position Daily by the Nigerian Ports Authority, these products came through various terminals in Nigeria, including Apapa, Tincan, and Calabar Ports. The report stated that the total volume of PMS imports within the period under review was 172,917 metric tonnes. And one metric tonne of PMS is made of about 1,341 litres. When multiplied by 172,917 metric tonnes by 1,341 litres, it amounts to 231.88 million litres imported within the period under review. Dangote’s export drive has not been without its challenges. The refinery has faced allegations of planning to monopolise the downstream sector, but Dangote has denied these claims. “Let me take this opportunity to address concerns around monopoly and dominance. The reality is that too many people who have the means and the opportunity to contribute meaningfully to our nation’s growth choose instead to criticise from the sidelines while investing their wealth abroad,” Dangote said. President Bola Tinubu has also weighed in on the issue, saying that Africa must end its role as a passive price taker in the global energy market and begin to shape its pricing, trade, and regulatory structures to reflect its production realities better. “Africa can no longer remain a price taker for its resources. It is time to establish credible, transparent benchmarks that reflect our realities and protect our economies,” Tinubu said in a post on his official X handle. According to Tinubu, Nigeria is working with regional partners to build an integrated market that would reward African production, secure energy access for local populations, and deepen cross-border prosperity. “From refining to regulation, data transparency to trade flows, Nigeria is working with regional partners to build an integrated market that rewards our production, secures energy for our people, and deepens prosperity across borders,” the president stated. The NMDPRA is also working to develop a regional pricing benchmark for West Africa. Ahmed said that the authority is working closely with S&P Global Commodity Insights to develop price indices for refined petroleum products, including Premium Motor Spirit, Automotive Gasoil, Aviation Turbine Kerosene, and Liquefied Petroleum Gas. The proposed regional benchmark will promote market confidence, attract more investment in storage and supply infrastructure, and ensure real-time price visibility for operators across the fuel value chain. “We are committed to building a transparent, data-driven market that reflects the true cost and value of fuel within West Africa,” Ahmed concluded.

CBN RETAINS INTEREST RATE AT 27.5%

The Monetary Policy Committee of the Central Bank of Nigeria has retained the Monetary Policy Rate at 27.5 per cent. PUNCH Online reports that the MPR is used to benchmark interest rates in the country and the decision is the third time the regulator is retaining the MPR in 2025. The Governor of the apex bank, Olayemi Cardoso, announced this on Tuesday at the end of the committee’s 301st meeting in Abuja. Cardoso also disclosed that the CBN retained the asymmetric corridor around the MPR at +500/-100 basis and other parameters. He said the Committee voted to retain Monetary Policy Rates at 27.5 per cent. retain cash reserve ratio for Deposit Money Banks at 50 per cent and Merchant banks at 16 per cent. “Also, Liquidity Ratio has been maintained at 30 per cent,” he said. Cardoso added that the decision was premised on the need to sustain efforts in curbing inflation and sustaining prices as it will address emerging monetary pressures. Cardoso also stated that the MPC acknowledged the effort of the federal government in providing security and its impact on food security. He also revealed that eight banks had so far met recapitalisation requirements of the CBN, while others were working hard to meet up. He, however, did not disclose the identities of the banks that have crossed the hurdle as at the time of filing this report. The apex bank had given a 24-month timeline, running from April 1, 2024, to March 31, 2026, for banks with international licences to maintain at least N500 billion, national banks to have minimum of N200 billion, and regional banks to maintain N50 billion as paid-up capital.

NGX, FG PUSH FOR CAPITAL FORMATION FRAMEWORKS

Market leaders, regulators, and government officials have called for unified action to strengthen Nigeria’s capital market and accelerate capital formation as a key driver of national economic growth. Speaking at the 2025 Chartered Institute of Stockbrokers National Workshop held at the Presidential Villa in Abuja on Tuesday, the Group Managing Director and Chief Executive Officer of Nigerian Exchange Group Plc, Temi Popoola, urged stakeholders to coordinate efforts to build a capital market capable of mobilising long-term funding and supporting Nigeria’s ambition to become a $1tn economy. Popoola attributed the recent revival of the market to deliberate reforms, improved macroeconomic conditions, and technological upgrades in market infrastructure. He, however, stressed that sustaining this momentum would require closer collaboration among market operators, regulators, and policymakers to strengthen industries, empower institutions, and deepen market structures. “The capital market stands at a pivotal point in Nigeria’s economic journey,” Popoola said. “With deliberate reforms and a strong regulatory environment, we have an opportunity to position the market as a key enabler of long-term capital formation that supports industries, empowers institutions, and scales our economy to new heights.” Popoola also highlighted NGX Invest, a platform designed to simplify market access for investors and issuers, which has facilitated over N2tn in primary market transactions. He said this reflected growing market confidence and demonstrated the results achievable when industry players and regulators work together. The Chairman of Nigerian Exchange Group, Umaru Kwairanga, emphasised the need to align capital market activity with Nigeria’s broader economic goals, citing the market’s role in financing infrastructure, supporting enterprises, and attracting investment. The President and Chairman of the Council of CIS, Oluropo Dada, reiterated the Institute’s commitment to fostering professionalism and integrity in the capital market, underlining the importance of investor confidence and increased market participation. Director-General of the Securities and Exchange Commission, Emomotimi Agama, described capital formation as central to the SEC’s mandate. Additionally, the Minister of State for Finance, Doris Anite, called for urgent efforts to expand access to long-term capital, enhance investor confidence, reinforce institutional frameworks, and strengthen linkages between the capital market and the real economy. Representing the Vice President, the Special Adviser to the President on Economic Affairs, Tope Fasua, called for sustained momentum through innovation, policy advocacy, and ethical conduct.

NGX CLOSES FLAT WITH N67BN GAIN

The Nigerian Exchange Limited closed Wednesday’s trading session on a flat note, gaining N67bn in market capitalisation amid mixed sentiment across key sectors. At the close of trading, the All-Share Index inched up by 105.70 points, representing a marginal gain of 0.08 per cent, to settle at 132,557.43 points. This pushed the market capitalisation up to N83.9tn from the N83.83tn recorded in the previous session. Despite the uptick in market value, trading activities saw significant declines across the board. The total volume of shares traded fell by 12 per cent to 681.2 million units, while turnover dropped by 36 per cent to N17.02bn. The number of deals executed also declined by 18 per cent, closing at 26,931. A total of 128 equities participated in the day’s trading, with 29 gainers and 37 losers, while 62 stocks closed flat. Academy Press Plc topped the gainers’ chart with a 10 per cent increase to close at N7.70 per share, followed by The Initiates Plc, which rose by 9.98 per cent to N13.34. Ikeja Hotel, Nigerian Enamelware, and NAHCO also made the top five, recording 9.95 per cent, 9.84 per cent, and 9.65 per cent gains, respectively. On the flip side, Austin Laz & Company led the laggards, declining by 10 per cent to close at N2.34. Tripple Gee & Co., Omatek Ventures, Daar Communications, and Multiverse Mining also featured among the top losers, with losses ranging between 9.95 per cent and 9.09 percent. In terms of volume, Access Holdings Plc recorded the highest number of traded shares with 98.6 million units valued at N2.74bn, followed by Ellah Lakes with 61.1 million shares worth N581.6m. Others on the top five-volume list included Japaul Gold (49.2m), Royal Exchange (43.8m), and Universal Insurance (32.1m). For value traded, Access Holdings also led the pack with N2.74bn in turnover, followed by Dangote Cement, which recorded N1.3bn worth of trades from 2.7 million shares. Aradel Holdings followed closely with N1.23bn in value from 2.45 million shares, while GTCO and WAPCO rounded out the top five with trades worth N1.14bn and N1.03bn, respectively. Across the market indices, performance remained largely positive. The Top 30 Index advanced by 0.08 per cent, the Banking Index rose by 0.44 per cent, and the Consumer Goods Index increased by 0.3 per cent. Similarly, the Pension Index climbed 0.24 per cent, while the Oil & Gas Index and the Insurance Index recorded moderate gains of 0.21 per cent and 0.13 per cent, respectively. Also, year-to-date, the index has appreciated by 28.79 per cent, reinforcing investor confidence despite intermittent profit-taking and bearish pressures in recent sessions. The PUNCH reported that the Nigerian stock market extended its bullish trend on Tuesday, recording a gain of N396bn in market capitalisation amid renewed investor interest across key sectors.

EQUITY TRADING SOARS 120% TO N779BN

The Nigerian stock market recorded a surge in equity trading activities in June 2025, with total transactions hitting N778.65bn, representing a year-on-year increase of 120 per cent compared to N354.55bn, recorded in the same month last year. Data released by the Nigerian Exchange Limited on Tuesday showed that the market’s growth was driven largely by increased participation from domestic investors, who accounted for approximately 64 per cent of the total trading value during the month. A detailed analysis of the market activity revealed that total domestic transactions grew by 9.93 per cent from N581.59bn in May 2025 to N639.34bn in June 2025. Foreign transactions also experienced a robust increase of 17.16 per cent, rising from N118.91bn, approximately $74.97m, in May to N139.31bn, about $91.07m, in June. The breakdown of domestic trading activity showed a significant shift in investor behaviour. Institutional investors outperformed retail investors by 14 per cent, with institutional transactions surging by 49.39 per cent from N244.13bn in May to N364.71bn in June. Meanwhile, retail transactions declined by 18.62 per cent, dropping from N337.46bn in May to N274.63bn in June. Market analysts attributed the increased institutional participation to growing confidence among long-term investors and fund managers, who are capitalizing on favorable economic indicators and corporate earnings reports. Foreign portfolio investment also played a vital role in the market’s performance, as foreign inflows into equities rose from N118.91bn in May to N139 in June, marking a 17 per cent increase, while foreign outflows were comparatively lower, underscoring a net positive foreign investment sentiment. Year-to-date figures reinforce the bullish market outlook, with total equity transactions reaching N4.19tn in the first half of 2025, compared to N2.60tn during the same period in 2024. Domestic investors have maintained a dominant presence, accounting for nearly 73 per cent of total trading volumes so far this year. Over the longer term, the Nigerian equity market has demonstrated steady growth. Data spanning eighteen years shows domestic transactions increased by 33.15 per cent from N3.56tn in 2007 to N4.74tn in 2024, while foreign transactions grew by 38.31 per cent over the same period.