CAPITALDIGEST DAILYNEWS, 17/08/2026

NIGERIA’S OIL PRODUCTION DROPPED 4% IN JULY – NUPRC

Nigeria’s crude oil production fell by four per cent month-on-month in July, but the country still met its Organisation of Petroleum Exporting Countries quota for the third consecutive month, latest data from the Nigerian Upstream Petroleum Regulatory Commission has shown. The commission’s latest production figures showed that Nigeria pumped an average of 1.505 million barrels per day of crude oil in July, slightly above its OPEC quota of 1.5 million barrels per day. When condensate production of about 170,000 barrels per day is included, the country’s total crude and condensate output stood at 1.67 million barrels per day during the month. The July performance, however, represented a decline from the 1.735 million barrels per day recorded in June, translating to a reduction of about 65,000 barrels per day, or 3.75 per cent. The NUPRC disclosed the figures in a statement issued on Wednesday by its Head of Media and Corporate Communications, Eniola Akinkuotu. The statement read, “Nigeria has for the third consecutive month met and exceeded its OPEC quota of 1.5mbpd. In the month of July 2026, Nigeria produced 1.505mbpd of crude oil and 0.17mbpd of condensate, bringing the combined daily production to 1.67mbpd. “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.” According to the commission, daily combined crude and condensate production fluctuated between a low of 1.57 million barrels per day and a peak of 1.78 million barrels per day in July. “Daily average production was 1.67 million barrels per day, comprising both crude oil (1.505 million bopd) and condensate (0.17mbpd),” the commission said. Despite the July decline, Nigeria has maintained crude production above its 1.5mbpd OPEC quota for three consecutive months. The country’s combined crude and condensate production has increased since the beginning of the year, according to NUPRC’s month-on-month data. Production stood at 1.459 million barrels per day in January, before rising to 1.483mbpd in February. It subsequently increased to 1.564mbpd in March, 1.663mbpd in April, 1.701mbpd in May and 1.735mbpd in June. Compared with January, however, July’s combined production of 1.67mbpd was about 211,000 barrels per day, or 14.5 per cent, higher. July therefore marked the first monthly decline after the steady increase recorded in the first half of the year. The NUPRC attributed the July decline principally to operational challenges at the Erha and Akpo fields, which affected production during the month. “These disruptions constrained production volumes and contributed significantly to the overall reduction in national crude oil output,” the commission said. It added that production activities at other oil-producing assets remained relatively stable despite the disruptions. “Despite the challenges encountered, production operations across other producing assets remained relatively stable, with operators implementing measures aimed at maintaining production efficiency and minimising the impact of operational constraints,” the regulator said. It said routine production and crude evacuation activities were also largely sustained across the industry. The commission added that operators and other stakeholders were working to resolve the affected production facilities and restore lost capacity. “Industry stakeholders remain focused on addressing the identified operational issues, restoring affected production capacity and strengthening asset reliability to support improved performance in subsequent months,” it said. The breakdown of production by terminals and streams showed that Forcados Terminal recorded an average output of 322.34kbpd in July, making it the largest producing stream listed by the commission. It was followed by Bonny Terminal, which recorded 303.72kbpd. Qua Iboe Terminal ranked third, with average production of 158.02kbpd of crude oil and condensates, while Escravos Oil Terminal recorded 131.41kbpd. The Bonga stream ranked fifth among the leading producing terminals, with an average of 100.23kbpd of crude oil. The Federal Government and NUPRC have identified increased crude oil production as important to government revenue, foreign exchange earnings and investment in the upstream sector.

SEC FREEZES ASSETS ALLEGEDLY LINKED TO SIX TERRORIST FINANCIERS

The Securities and Exchange Commission has directed capital market operators to immediately freeze the funds, assets, and economic resources of six individuals and three entities designated as terrorist financiers by the Nigeria Sanctions Committee. The directive, communicated via a circular issued to all Capital Market Regulated Entities on Friday, was implemented in accordance with the provisions of the Terrorism Prevention and Prohibition Act 2022. The six designated individuals are Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu, and Yakubu Ogirima Ibrahim. The three corporate bodies placed on the sanctions list are Nine to Nine BDC Ltd, Generation Currency BDC Ltd, and Abbal Bako & Sons Bureau de Change. According to the capital market regulator, Hammajam was listed on June 18, 2026, for his involvement in terrorism financing and active support for the Islamic State West Africa Province. Usman was sanction-listed for providing material assistance to a designated terrorist organisation through repeated financial transactions, while Abubakar was listed for terrorism financing and direct membership of ISWAP. The commission further revealed that Chiroma allegedly utilised Bureau De Change operations and affiliated corporate entities to move funds linked to terrorist activities. Similarly, Muktar Adamu was listed on June 15, 2026, for facilitating financial network operations for the ISWAP Okene cell, while Ibrahim provided financial and material support to the ISWAP Kogi cell. The three BDCs were indicted for channelling funds linked to the same Okene financing network. The action comes amid intensified efforts by Nigerian authorities to disrupt the financial lifelines of insurgent groups operating in the North-East and North-Central regions. Bureau De Change operators have frequently come under regulatory scrutiny by both the SEC and the Central Bank of Nigeria over illegal foreign exchange dealings and money laundering vulnerabilities. Under the TPPA 2022 and Nigeria’s Sanctions Framework, financial institutions and capital market operators are mandated to act swiftly on sanctions lists issued by the NSC to prevent illicit funds from flowing through the formal financial system. In its directive, the SEC mandated CMREs to identify and freeze all listed assets without prior notice to the designated individuals or entities. Operators were instructed to submit full compliance reports—including details of frozen assets and any attempted transactions—to the Secretariat of the Nigeria Sanctions Committee. Additionally, the commission directed all regulated firms to file Suspicious Transaction Reports directly with the Nigerian Financial Intelligence Unit for deep analysis. “Regulated entities must report as suspicious transactions all cases of name matches in financial transactions, whether occurring before or after the receipt of the sanctions list,” the SEC stated. The regulator prohibited all forms of business dealings with the sanctioned entities, directing operators to maintain continuous monitoring across all accounts. Warning of strict consequences, the SEC noted that the circular takes immediate effect, adding that non-compliance constitutes a severe violation of the Investments and Securities Act 2025 as well as the SEC Anti-Money Laundering/Combating the Financing of Terrorism Rules and Regulations. Defaulting operators risk regulatory sanctions, including heavy financial penalties, operational suspension, or complete revocation of registration licences.

BANKS SPEND N76.5BN ON MARKETING IN THREE MONTHS

Nigeria’s deposit money banks increased spending on advertising, promotions and corporate gifts by 5.35 per cent to N76.54bn in the first quarter of 2026, up from N72.65bn recorded in the corresponding period of 2025. An analysis by The PUNCH of the unaudited financial statements of 11 banks showed that the increase amounted to N3.89bn year-on-year, as lenders intensified spending on marketing and promotional activities. The average marketing expenditure among the banks rose to N6.96bn in Q1 2026 from N6.60bn in Q1 2025, representing a 5.35 per cent increase or 1.05 times the previous year’s average. This means the increase did not amount to a full order of magnitude, which would require spending to rise by at least 10 times. United Bank for Africa recorded the biggest marketing expenditure during the period, spending N15.68bn, up from N5.65bn in Q1 2025, representing a 177.69 per cent increase. Fidelity Bank followed with N26.19bn, despite recording a 3.86 per cent decline from N27.24bn, while First HoldCo spent N13.58bn, down 29.07 per cent from N19.14bn. Zenith Bank ranked next with N6.15bn, rising by 28.72 per cent from N4.77bn, while Access Holdings spent N4.14bn, down 6.25 per cent from N4.42bn. Among the banks that increased their marketing expenditure, Jaiz Bank recorded the highest percentage growth, with spending jumping 1,623.60 per cent from N30.72m to N529.49m.  Sterling Financial Holdings followed with a 177.83 per cent increase, from N433m to N1.20bn, while UBA recorded a 177.69 per cent increase to N15.68bn. The other banks that increased spending included Zenith Bank, which raised its expenditure 28.72 per cent to N6.15bn; Stanbic IBTC Holdings, which increased spending 25.54 per cent to N2.78bn; and Wema Bank, whose expenditure rose 16.75 per cent to N1.13bn. However, five banks reduced their marketing expenditure during the period. FCMB Group recorded the largest absolute reduction among them, cutting spending 38.55 per cent from N3.80bn to N2.33bn. First HoldCo reduced spending 29.07 per cent to N13.58bn, while Guaranty Trust Holding Company cut expenditure 29.01 per cent from N4bn to N2.84bn. Fidelity Bank reduced spending 3.86 per cent to N26.19bn, while Access Holdings recorded a 6.25 per cent decline to N4.14bn. The spending pattern comes months after the Central Bank of Nigeria tightened its regulatory requirements for bank advertising and promotional activities. In a November 2025 letter to banks, payment service banks and other financial institutions, the apex bank said its thematic review had identified variations in how financial institutions interpreted and applied disclosure, transparency and fair-marketing requirements. The CBN directed banks to ensure that advertisements remained factual, balanced and transparent, while prohibiting claims that could mislead consumers, obscure risks or create unfair comparisons. The regulator also warned financial institutions against exaggerating benefits, omitting material information or using unaudited financial statements in advertisements. “Comparative, superlative, or de-marketing statements (direct or implied) are not permitted,” the CBN stated. It also directed institutions to withdraw non-compliant advertisements and submit compliance attestations signed by their managing directors or chief executive officers, executive compliance officers and chief compliance officers. The CBN said it would commence follow-up reviews from January 2026 and impose sanctions for breaches in line with the Banks and Other Financial Institutions Act 2020 and the Consumer Protection Regulations. Meanwhile, Fidelity Bank’s financial statements housed its marketing under prepayments, including expenses whose benefits covered future periods, including insurance premiums, adverts and publicity, computer expenses and subscriptions. The figures indicate that despite tighter regulatory scrutiny of financial-sector advertising, banks collectively expanded their marketing expenditure in Q1 2026, with UBA accounting for the largest increase in actual naira terms at N10.04bn. The increase by UBA alone exceeded the combined reductions recorded by Access Holdings, Fidelity Bank, FCMB Group, First HoldCo and GTCO, which together cut their spending by about N9.51bn.

SEC SETS 5PM CUTOFF FOR T+1 EQUITIES, COMMODITIES TRADE

The Securities and Exchange Commission has fixed 5:00pm on the first business day after a transaction (T+1) as the settlement deadline for equities and commodities traded and settled through the Central Securities Clearing System. The Commission made this clarification in a circular issued on Wednesday to capital market operators and other market participants as part of the implementation of the T+1 settlement cycle in the Nigerian capital market. According to the SEC, all transactions in the affected securities must be fully paid for by 5:00 p.m. T+1 to ensure compliance with the standard Delivery versus Payment settlement procedure. It warned that where a broker/dealer’s trading account is not adequately funded to meet its settlement obligation within the prescribed period, the default would be managed in line with the CSCS Default Management Procedure and the applicable transaction settlement guidelines of the relevant exchange. The Commission also clarified that foreign portfolio investors are not required to prefund their accounts for trades in the Nigerian capital market. However, it stated that capital market operators facilitating transactions on behalf of foreign portfolio investors must establish and maintain appropriate controls and processes to ensure timely funding and completion of settlements within the prescribed timeframe. The clarification follows earlier SEC circulars on the implementation of the T+2 settlement cycle for equities transactions, issued on 3 June 2025, and the transition to the T+1 settlement cycle, issued on 15 May 2026. The T+1 cycle means that eligible securities transactions are settled one business day after the trade date, reducing the period between execution and final settlement. The SEC said the transition represents a significant milestone in its efforts to build a more efficient, resilient, and internationally aligned trading and post-trade environment. It added that the shorter settlement cycle would improve settlement efficiency, reduce counterparty risk, enhance liquidity, and strengthen the competitiveness of the Nigerian capital market. According to the regulator, the reforms would ultimately improve the attractiveness of the Nigerian market to both domestic and international investors.

STOCK MARKET SHEDS N1TN AMID RENEWED BEARISH TRADING

The domestic equities market closed Tuesday’s trading session on a bearish note, as price depreciation in MTN Nigeria Communications Plc and 25 others dragged the overall market capitalisation lower by N1.17tn. Consequently, the All-Share Index dropped by 1,806.18 points, or 0.73 per cent, to close at 246,723.57. Similarly, the market capitalisation shed N1.17tn to settle at N159.26tn. The downturn was primarily driven by sell-offs in large- and medium-capitalised stocks, including MTNN, UACN, Dangote Sugar Refinery, Nigerian Aviation Handling Company, and First Holdco. Despite the broader market decline, market breadth closed positive with 27 gainers against 26 losers. FTN Cocoa topped the gainers’ chart, appreciating 9.88 per cent to close at N8.90 per share. C&I Leasing followed with an 8.26 per cent gain to close at N5.90, while Sovereign Trust Insurance rose 6.74 per cent to finish at N1.90 per share. Regency Alliance Insurance gained 6.33 per cent to close at 84 kobo, while Universal Insurance advanced 6.02 per cent to close at 88 kobo per share. Conversely, Thomas Wyatt Nigeria led the losers’ chart, dropping 9.97 per cent to close at N2.89 per share. AVA Capital followed with a 9.60 per cent decline to settle at N8.95, while International Energy Insurance lost 6.32 per cent to close at N4.00 per share. International Breweries fell 5.98 per cent to close at N11.00, while Guinea Insurance declined 5.13 per cent to close at 74 kobo per share. Activity levels spiked sharply as total volume traded jumped 270.4 per cent to 3.91 billion units, valued at N32.38bn and exchanged in 45,608 deals. Consolidated Hallmark Holdings traded 54.34 million shares valued at N379.42m, while Fidelity Bank transacted 46.86 million shares worth N1.02bn. Trading in the shares of Fortis Global Insurance dominated the activity chart with 3.29 billion shares valued at N9.58bn. Trans-Nationwide Express followed with 84.58 million shares worth N181.90m, while Access Holdings traded 66.13 million shares valued at N1.87bn.