CAPITALDIGEST DAILYNEWS, 03/08/2026

NNPC POSTS N535BN PROFIT, REMITS N6.3TN TO FEDERATION

The Nigerian National Petroleum Company Limited increased its profit after tax by 15.8 percent to N535bn in June 2026 despite recording a marginal decline in crude oil and condensate production during the month. The latest Monthly Financial and Operations Report released by the national oil company showed that profit after tax rose by N73bn from the N462bn recorded in May, while revenue increased to N4.389tn. The report, obtained by our correspondent on Friday, also showed that the company remitted cumulative statutory payments of N6.286tn to the Federation between January and June 2026. It read, “NNPC Limited recorded N535bn profit after tax for the month of June, representing a 15.8 percent increase from the N462bn recorded in May. Total revenue for the month stood at N4.389tn, while cumulative statutory payments to the Federation for the period January to June 2026 increased to N6.286tn, underscoring NNPC Limited’s sustained contribution to national revenue generation.” Average crude oil and condensate production declined marginally to 1.72 million barrels per day in June from 1.73 million barrels per day in May, representing a 0.58 percent decrease. However, output was 1.18 percent higher than the 1.70 million barrels per day recorded in June 2025. According to the report, production was affected by operational disruptions, facility integrity issues and subsurface challenges across several assets. It stated, “June production performance was impacted by operational disruptions, facility integrity issues, and subsurface challenges across several assets. However, performance was partially mitigated by production ramp-up following the completion of the Assa-Rumuekpe and 28-inch TNP Turnaround Maintenance.” Despite the slight production decline, crude oil and condensate sales surged to 28.23 million barrels in June from 18.95 million barrels in May, representing a 48.97 per cent month-on-month increase. The June sales volume was also 6.77 percent higher than the 26.44 million barrels sold in June 2025. Gas production also improved, rising to 7,841 million standard cubic feet per day from 7,774 million standard cubic feet per day in May, while gas sales recovered to 4,970 million standard cubic feet per day from 4,921 million standard cubic feet per day. The report highlighted progress on two major gas infrastructure projects. The Obiafu-Obrikom-Oben Gas Pipeline reached 98 percent completion, with final tie-in works ongoing. It stated, “The Obiafu-Obrikom-Oben (OB3) Gas Pipeline progressed to 98% completion, with final tie-in works ongoing towards achieving First Gas in August 2026.” Construction on the Ajaokuta-Kaduna-Kano Gas Pipeline also advanced to 94 percent completion. According to the company, “Construction and installation activities on the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline advanced to 94 percent completion, supporting the target of early gas delivery to Abuja in 2026.” NNPC said it would continue implementing measures to sustain production growth despite operational challenges. It stated, “Focus remains on delivering incremental production across the asset portfolio by improving facility reliability and availability, minimizing Unscheduled Downtime, optimising crude export operations, and accelerating the maturation of production opportunities to sustain Upstream production growth.” The report also showed that upstream pipeline availability remained at 100 per cent during the month, while petrol availability across NNPC Retail Limited stations stood at 53 per cent. It added that all production, sales and financial figures remained provisional and were subject to reconciliation with relevant stakeholders. 

NAIRA ENDS JULY WEAKER, CLOSES AT N1,368.22/$

The naira closed July on a weaker note at the official foreign exchange market, extending its week-long depreciation to settle at N1,368.22 per dollar on Friday. Data from the Central Bank of Nigeria showed that the local currency depreciated by N1.50, or 0.1 percent, from N1,366.72 per dollar recorded on Thursday. The naira remained relatively stable throughout July but posted marginal losses during the week despite ongoing foreign exchange reforms by the apex bank. The currency opened the week on Monday at N1,362.20 per dollar, reflecting an 11-kobo depreciation from the previous trading session. It weakened further to N1,365.53 per dollar on Tuesday before closing at N1,366.71 per dollar on Wednesday. The local currency maintained its downward trend on Thursday, closing at N1,366.72 per dollar, before ending the month at N1,368.22 per dollar on Friday.

CBN CUTS ONE-YEAR T-BILL YIELD AFTER N3.62TN BIDS

The Central Bank of Nigeria reduced the stop rate on its one-year treasury bill at Wednesday’s primary market auction after investors submitted overwhelming bids, reflecting sustained appetite for longer-dated government securities. Auction results showed total subscriptions of about N3.62tn against the N700bn offered across the three maturities. The strongest demand came from the 364-day bill, which attracted N3.38tn in bids for an offer size of N500bn, representing an oversubscription of nearly seven times. Despite the strong demand, the CBN allotted about N1.25tn across the 91-day, 182-day and 364-day instruments, with more than N1.02tn allocated to the one-year paper alone, which is well above the amount initially offered. The stop rate on the 364-day bill fell to 17.35 per cent from 17.66 per cent recorded at the previous auction, a decline of 31 basis points. Bid rates for the tenor ranged between 16.98 per cent and 20.00 per cent, reflecting investors’ willingness to accept lower yields in exchange for locking in longer-term returns. For the 91-day T-bill maturing on 29 October 2026, the CBN offered N100bn, received subscriptions of N135.74bn, and allotted N130.72bn. The stop rate remained unchanged at 16.30 per cent, while bid rates ranged from 15.97 per cent to 17.50 per cent. Similarly, the 182-day bill due on 28 January 2027 recorded subscriptions of N104.74bn against an offer of N100bn. The apex bank allotted N99.18bn, maintaining the stop rate at 16.50 per cent despite bid rates ranging between 16.00 percent and 25.00 percent. The latest auction extends a pattern seen throughout July, with institutional investors concentrating heavily on the one-year instrument. The 364-day bill attracted N2.87tn in bids at the July 15 auction and N1.86tn at the 8 July sale, highlighting persistent demand for longer-dated treasury securities. The decline in the one-year stop rate suggests improved liquidity within the financial system, enabling investors to accept lower returns while the CBN continues to issue larger volumes to absorb excess funds and meet the government’s financing requirements under the expanded third-quarter treasury bill programme, according to analysts. Wednesday’s sale marked the final T-bill auction for July and forms part of the CBN’s N5.8tn gross issuance programme for the third quarter of 2026. Allotment letters are scheduled for 30 July 2026, with settlement taking place on the same day. Although yields remain attractive across the maturity spectrum, the one-year T-bill continues to provide the highest return, with its effective yield remaining close to 21 per cent, making it the preferred option for institutional investors.

PRIVATE SECTOR FX OUTFLOWS JUMP 165% TO $16.3BN

Foreign exchange outflows through autonomous channels rose by more than 160 per cent in 2025, reflecting increased private-sector demand for foreign exchange despite stronger inflows into the economy, according to the Central Bank of Nigeria’s 2025 Annual Report and Statement of Accounts. The report showed that autonomous foreign exchange outflows climbed 164.84 per cent to $16.26bn in 2025 from $6.14bn recorded a year earlier. The sharp increase contributed to a 27.83 per cent rise in Nigeria’s total FX outflows, which reached $49.05bn, up from $38.37bn in 2024. By comparison, foreign exchange outflows through the CBN increased only marginally by 1.74 per cent to $32.79bn from $32.23bn in the previous year, accounting for about 66.9 per cent of total outflows. Despite the increase in demand for foreign exchange, Nigeria posted a stronger external position as total FX inflows rose 13.81 per cent to a record $109.86bn in 2025 from $96.53bn in 2024. The CBN attributed the rise in inflows largely to autonomous sources, which grew 25.12 per cent to $70.54bn, driven by higher non-oil export receipts, capital importation and over-the-counter foreign exchange purchases. Inflows through the apex bank, however, declined 2.08 percent to $39.32bn due to lower receipts from government debt and foreign exchange swap transactions. Overall, the economy recorded a net foreign exchange inflow of $60.81bn, higher than the $58.16bn posted in 2024. Autonomous sources generated a net inflow of $54.28bn, while the CBN recorded a net inflow of $6.52bn. The figures point to an increasingly market-driven foreign exchange landscape, with both inflows and outflows being led by private-sector activity rather than official transactions.

NGX LOSES N648BN AS RENEWED PROFIT-TAKING HITS EQUITIES

The Nigerian stock market reversed Tuesday’s gains on Wednesday as renewed profit-taking across major counters triggered a broad-based sell-off, wiping out approximately N648bn from investors’ wealth. Widespread profit-taking outweighed targeted buying interest in selected counters, leaving market breadth firmly in the red as declining equities almost doubled those that recorded price appreciation. At the close of trading, the Nigerian Exchange All-Share Index dropped 0.41 per cent, falling from an opening level of 247,984.55 basis points to settle at 246,980.17 basis points. In tandem with the benchmark index, total market capitalisation contracted from N159.992tn at the start of the session to close at N159.344tn. Market breadth closed negative as 45 equities recorded price declines against 23 gainers, underscoring the dominant profit-taking mood among investors. The downturn was led by Cornerstone Insurance Plc, which shed 10.00 per cent to drop from N6.00 to N5.40, and Legend Internet Plc, which also fell 10.00 per cent to close at N4.05 from N4.50. Other significant decliners included The Initiates Plc, which lost 9.91 per cent to land at N30.00; Guinea Insurance Plc, easing 9.78 per cent to N0.83; and ABC Transport Plc, which slipped 9.45 per cent to end the day at N5.75. Despite the overarching bearish sentiment, insurance stocks remained in noticeable demand among bargain hunters. Lasaco Assurance Plc led the gainers’ chart, appreciating 10.00 per cent to move from N2.20 to N2.42. CNIF advanced 9.98 per cent to close at N154.30, while NEM Insurance Plc climbed 9.97 per cent to finish at N34.20. SUNU Assurances Nigeria Plc gained 9.83 per cent to settle at N3.91, and Prestige Assurance Plc rose 7.14 per cent to close at N1.50. Meanwhile, major heavyweight counters provided a buffer against further market decline by remaining unchanged for the session. MTN Nigeria Communications Plc, Dangote Cement Plc, Seplat Energy Plc, Custodian Investment Plc, and Julius Berger Nigeria Plc were among the prominent stocks that closed flat.