CAPITALDIGEST DAILYNEWS, 24/08/2026

OIL OUTPUT SURGES AS LOSSES VIA PIPELINES FALL

Nigeria is witnessing a rise in oil production, driven by several factors, including a sustained reduction in pipeline losses and improved security of oil assets. The Nigerian Upstream Petroleum Regulatory Commission’s July report showed that oil losses through pipelines had fallen to historical lows. Nigeria’s combined crude oil and condensate production also rose to approximately 1.735 million barrels per day in June, following improved security of oil assets. The production milestone represented a fourth consecutive monthly increase and was attributed to the peace and stability in the Niger Delta, as well as the impact of Tantita Security Services Nigeria Ltd operations in protecting national assets, particularly oil pipelines in the region. For years, Nigeria grappled with losses running into billions of dollars as a result of sabotage of oil installations and pipelines, community interference and production shutdowns. The losses negatively affected national revenue and kept oil production at low levels. However, the sector is turning the corner, with NUPRC reports showing that pipeline losses have continued to decline, helping oil production to rise to new levels. The gains have been linked to the work done by Tantita Security Services Nigeria Ltd in the Niger Delta region. For many stakeholders, the continued increase in oil production, alongside peace and stability in the Niger Delta, is expected to boost government revenue, external reserves and the broader fiscal outlook. The Federal Government of Nigeria’s appointment of Tantita Security Services Nigeria Ltd to protect oil assets and promote peace and stability in the Niger Delta has played a role in the development. President Bola Tinubu had appointed TSSNL, led by High Chief Government Ekpemupolo, alias Tompolo, to protect Nigeria’s oil assets in the Niger Delta region. The appointment was intended to enable TSSNL, through its security operations, to support the national economy in getting the full benefits of oil resources. TSSNL works in collaboration with other security outfits to achieve its goals of securing oil assets and ensuring peace and stability in the Niger Delta region. Tantita’s operations have ensured the security of oil pipelines, supported the uninterrupted flow of petroleum resources, and helped Nigeria migrate from a position of constant loss management to stability, planning, growth and development. TSSNL operations have transformed the oil and gas landscape, allowing Nigeria to expand its oil production quota and significantly cut rampant oil theft. Its track record in mitigating risks associated with oil pipelines has positioned it as a reliable partner in preserving Nigeria’s economic backbone. Nigeria met its OPEC production quota for the third straight month in July, producing a combined 1.67 million barrels per day of crude oil and condensate, the NUPRC said. NUPRC data showed that crude oil output averaged 1.505mbpd in July, while condensate added 0.17mbpd, taking the combined daily average to 1.67mbpd. The regulator said peak daily production reached 1.78mbpd, while the lowest daily output was 1.57mbpd during the month. “Despite some operational problems at a few fields, Nigeria met the OPEC quota of 1.5mbpd in July,” NUPRC stated in a recent statement. The commission noted, however, that overall production fell four per cent compared with June. The NUPRC attributed the month-on-month decline mainly to operational challenges at the Erha and Akpo fields. “Disruptions at Erha and Akpo constrained volumes and were a significant factor in the production shortfall for the month,” the spokesperson said. The regulator added that most other producing assets remained stable. “Operators implemented measures to maintain production efficiency and to minimise the impact of the disruptions,” the NUPRC said. The NUPRC Q2 2026 statistics on the enforcement of the Domestic Crude Supply Obligation, in accordance with the provisions of Section 109 of the Petroleum Industry Act, showed that a total of 53.7 million barrels of crude oil and condensate were supplied to local refiners between April and June, representing an overall performance of 97.4 per cent. The statistics showed that DCSO is being actively administered and enforced by the NUPRC. On a monthly basis, the commission meets with stakeholders, including crude oil producers and local licensed refineries, after which the producers are allocated a specific volume of their crude oil and condensate to be offered to local licensed refineries. In April, following consultations with stakeholders, 18,127,638 barrels were allocated to producers. However, the producers exceeded expectations, offering 19,312,476 barrels to refiners. Eventually, 20,879,381 barrels were supplied to local refiners, meaning the producers met 114.9 per cent of their allocation. In May, the commission, in enforcing its DCSO, allocated 18,778,392 barrels of crude oil to the producers, but the producers exceeded their expectations once again, offering 23,187,893 barrels to local refiners. However, the producers’ actual supply to the refiners by the end of the month stood at 14,228,865 barrels, representing 75.8 per cent compliance. However, in line with the PIA, the framework operates on a “willing buyer, willing seller” basis, which shapes eventual outcomes.

CBN PUSHES WIDER ADOPTION OF DIGITAL PAYMENT CHANNELS

The Central Bank of Nigeria has called for greater adoption of alternative payment channels to expand access to financial services and stimulate economic activity. Acting Director, Corporate Communications and Investor Relations Department of the CBN, Hakama Sidi-Ali, made the call at the 2026 CBN Fair in Lokoja, Kogi State. The event, which focused on “Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development,” was organised to educate the public on the apex bank’s policies, reforms and consumer protection initiatives. Represented by Zubairu Salihu, Branch Controller of the CBN Lokoja Branch, Sidi-Ali said the bank’s reforms under Governor Olayemi Cardoso were producing improvements across key areas of the economy. She cited the decline in headline inflation from 15.91 per cent in June to 15.43 per cent in July 2026, as well as the increase in foreign exchange reserves to more than $52.5bn. Sidi-Ali described the reserve level as a 17-year high, saying it reflected an improvement in Nigeria’s external financial position. She said the CBN’s reforms also covered the foreign exchange market and banking sector recapitalisation, alongside initiatives such as the non-resident Bank Verification Number, B-MATCH foreign exchange trading platform and Nigeria Payments System Vision 2028. The CBN official also highlighted the Nigerian Overnight Financing Rate, which was introduced with the Financial Markets Dealers Association to provide a transparent, market-driven benchmark for short-term funding transactions. She said alternative payment channels were particularly important for farmers, traders, small businesses and informal-sector operators who may have limited access to conventional banking services. The official referenced the 2023 Access to Financial Services Survey by Enhancing Financial Innovation and Access, which ranked Kogi as the state with the highest banking penetration at 94 per cent. She urged farmers, entrepreneurs, artisans, students and business owners to use the fair to improve their knowledge of financial services and available payment options. Kogi State Governor Ahmed Ododo, represented by his Special Adviser on Budget and Finance, Elijah Evinemi, said digital payment channels could help close financial access gaps in rural and underserved areas. He listed agent banking, mobile money, POS terminals, USSD, digital wallets, QR-code payments and electronic banking among the channels capable of improving access to financial services. Ododo said wider use of digital payments would make transactions more convenient and support economic activities among households and businesses.

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 percent, 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 percent 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 percent 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.