CAPITALDIGEST DAILYNEWS, 31/08/2026

PETROL IMPORTS RISE AS DOMESTIC REFINERY SUPPLIES FALL.

Nigeria’s dependence on imported petrol showed further signs of rebounding in July as supplies from domestic refineries dropped sharply, forcing a bigger contribution from foreign imports despite the country’s expanding refining capacity. Latest statistics on Nigeria’s midstream and downstream petroleum operations for July 2026, published on Monday, showed that domestic petrol supply fell by 21 per cent within one month, while petrol imports rose by nine per cent. The development points to the continuing challenge facing Africa’s largest oil producer as it seeks to replace decades of dependence on imported petroleum products with output from local refineries. The factsheet showed that total Premium Motor Spirit, popularly called petrol, receipts declined from 50.6 million liters per day in June to 45.5 million liters per day in July, representing a 10 percent drop. However, the composition of the supply changed significantly. Domestic refineries supplied 32.5 million liters of petrol daily in June, but this fell to 25.8 million liters per day in July. At the same time, imported petrol receipts increased from 18.1 million liters daily to 19.7 million liters daily. The report read, “Total PMS daily receipts fell by 10 percent from 50.6 million liters per day in June to 45.5 million liters per day in July. The decline was driven by a 21 per cent drop in domestic supplies, which fell from 32.5 million liters per day to 25.8 million liters per day, even as petrol imports rose by nine per cent from 18.1 million liters per day to 19.7 million liters per day.” The figures mean that while locally refined petrol remained the larger source of supply, imports accounted for an increasing share of the market in July as domestic production weakened. The July figures extended to a reversal that began in June, when petrol imports surged by 207 per cent to 18.1 million liters per day as domestic supply dropped by 22 per cent to 32.5 million liters. A month later, domestic supply fell further to 25.8 million liters daily, while imports climbed to 19.7 million liters, showing that imported petrol was gaining ground as local refinery supplies weakened. The shift came as crude oil receipts by domestic refineries declined from 632,000 barrels per day in June to 585,000 barrels per day in July, representing an eight per cent reduction. The lower crude supply coincided with the 21 per cent decline in domestic petrol receipts, underscoring the link between refinery feedstock availability and Nigeria’s efforts to reduce reliance on imported fuel. Nigeria, despite being one of Africa’s major crude oil producers, depended almost entirely on imported refined petroleum products for years due to the poor performance of its state-owned refineries. However, the emergence and expansion of private refining capacity, led by the Dangote Petroleum Refinery, as well as efforts to rehabilitate government-owned plants, have begun to alter the country’s petroleum supply structure. Data from the latest factsheet also showed that the Dangote refinery operated at an average capacity utilization of more than 71 per cent during the period under review. The refinery recorded average petrol production of about 25.9 million liters per day, closely matching the 25.8 million liters per day recorded as total domestic PMS receipts in July. The figures highlight the growing importance of domestic refining to Nigeria’s petrol market but also expose the vulnerability of the country’s supply system when local refinery output or crude intake declines. With domestic supply falling, foreign products moved in to fill part of the gap. The resurgence was also recorded in the diesel market. Automotive gas oil, popularly called diesel, receipts rose sharply from 16.2 million liters per day in June to 23.6 million liters per day in July, representing a 46 percent increase. But unlike June, when the entire recorded diesel supply came from domestic sources, imports returned in July. Domestic diesel receipts slipped marginally from 16.2 million litres daily to 15.7 million litres daily, while imports accounted for 7.9 million litres daily. This means that foreign diesel returned to the Nigerian market in July after no imported AGO was recorded in the previous month. The pattern across petrol and diesel suggests that while domestic refining capacity has significantly increased Nigeria’s ability to meet its fuel needs locally, imports continue to serve as a balancing source whenever local supply falls short. The data also showed that Nigeria’s petrol consumption dropped significantly during the month. PMS consumption, based on volumes trucked out into the domestic market, fell from 47.4 million liters per day in June to 35.7 million liters per day in July, representing a 25 percent decline. The reduction in consumption came despite an increase in petrol stock sufficiency from 19.7 days to 22.4 days. The higher stock cover suggests that available petrol inventories were sufficient to meet demand for a longer period, even as daily supply and consumption declined. Diesel stock sufficiency also improved from 37.1 days in June to 46.5 days in July, representing a 25 percent increase. The country’s diesel consumption, however, fell from 16 million liters daily to 14.7 million liters daily. A different trend was recorded in the liquefied petroleum gas market, where total receipts increased from 5.1 kilotonnes per day to 5.3 kilotonnes per day. Domestic LPG supply rose by 22 per cent, from 3.6 kilotonnes daily to 4.4 kilotonnes, while imports declined by 40 per cent from 1.5 kilotonnes to 0.9 kilotonnes per day. LPG consumption also increased by seven percent to 4.4 kilotonnes per day. The figures indicate that domestic producers strengthened their position in the cooking gas market during July, unlike the petrol and diesel segments, where imports gained ground following weaker local supply. Domestic gas supply also declined during the month, falling from 5.116 billion cubic feet per day to 4.723 billion cubic feet per day, an eight percent reduction. The figures include volumes supplied to Nigeria Liquefied Natural Gas Limited. Aviation turbine kerosene receipts equally declined from 2.5 million liters per day to 1.9 million liters daily, while consumption dropped from 2.9 million liters to 1.7 million liters per day.

BANKING LIQUIDITY JUMPS TO N1.94TN AS INTERBANK RATES DECLINE

Nigeria’s money market came under less funding pressure on Wednesday as a substantial build-up in banking system liquidity pushed interbank borrowing costs lower. System liquidity rose by 35.53 per cent to N7.40tn during the session, representing an increase of about N1.94tn from the previous day, according to AIICO Capital Limited. The liquidity expansion was driven by coupon inflows and stronger placements by banks at the Central Bank of Nigeria’s standing deposit facility, indicating that financial institutions had sizeable cash balances available for investment or short-term placements. The improved liquidity position also reduced banks’ dependence on the CBN’s lending window. Market analysts reported no utilization of the standing lending facility during the day, easing pressure on overnight funding rates. Consequently, the overnight rate slipped two basis points to 22.12 per cent, while the open repo rate held steady at 22.00 per cent. Meanwhile, liquidity conditions could receive another boost from about N2.32tn in expected maturities from the CBN’s Open Market Operation securities. However, the Apex bank simultaneously conducted an OMO auction that absorbed about N2.8tn from the financial system. The opposing flows underline the CBN’s active management of banking-system liquidity as it seeks to prevent excess cash from exerting undue downward pressure on short-term interest rates. Overall, increased trading activity helped sustain positive sentiment in the fixed-income market.

INSURERS MUST BUILD CAPACITY BEYOND RECAPITALIZATION—NIA

The Nigerian insurance industry must move beyond recapitalisation and focus on building technical, operational and human capacity to achieve sustainable growth, the Director-General, Nigeria Insurers Association, Mrs Bola Odukale, has said. Odukale stated this in a keynote address at the 2026 Annual Retreat of the Risk, Audit and Compliance Technical Committee, themed, “From Capital to Capability: Driving Resilience, Innovation & Trust Through Governance, Risk & Compliance,” in Abeokuta, Ogun State. She was represented by the Director, Operations, NIA, Mr Lanre Ojuola. According to a statement on Thursday, she stated that while capital provides the financial buffer to absorb shocks, it cannot on its own manage complex risks, prevent regulatory infractions, strengthen institutions or earn policyholders’ trust. She said governance, risk management and compliance functions should be repositioned from cost centres to strategic drivers of competitive advantage. Odukale urged insurers to embrace technology-driven assurance through automated monitoring, data analytics and artificial intelligence-assisted compliance tools, while strengthening technical expertise in specialised risks such as commercial, marine, cyber and energy insurance. During the event, RACC also launched its industry-focused magazine. Also speaking, the Managing Partner, Risk Universe Consulting, Saheed Bashiru, said AI was already reshaping the global insurance industry, although adoption remained uneven. In a presentation titled “Artificial Intelligence Adoption & Optimisation,” Bashiru said Nigeria’s regulatory framework had provided a foundation for responsible AI adoption, with risk, audit and compliance functions serving as enablers rather than blockers. He outlined an AI adoption roadmap of “Assess, Pilot, Scale, Govern & Optimise,” recommending continuous monitoring through live dashboards tracking model performance, drift, bias indicators and incidents. Bashiru also called for regular, risk-based internal audits of AI systems and quarterly operational reports to boards, alongside annual strategic and audit reviews. He urged insurers to invest continuously in AI literacy, hybrid AI-risk career paths and responsible AI values. He advised Chief Financial Officers to incorporate AI return on investment and cost of inaction into capital and budget planning, while Chief Audit Executives should establish AI use-case inventories and baseline audits. The Chairman of RACC, Olugbenga Akinlalu, said insurers must strengthen institutional capabilities, governance structures and risk management systems to maximize the benefits of recapitalisation. Akinlalu, who is Group Head of Internal Audit, Continental Reinsurance Holdings, said stronger balance sheets must be matched by better talent, smarter technology, robust governance and effective risk management. He urged risk, audit and compliance professionals to move beyond traditional assurance roles and become strategic contributors to business growth, stressing that the future of the industry would require strong institutions, competent professionals, ethical conduct and sound governance.

NGX SHEDS N259BN AS ALL-SHARE INDEX

The Nigerian Exchange Limited concluded Wednesday’s trading session on a subdued note, as persistent selling pressure pushed equities’ benchmark indicators further into negative territory. The All-Share Index dropped by 402.25 points to settle at 238,682.92 points, down from 239,085.17 points recorded during the previous session on Monday. There was no trading on Tuesday, as the Federal Government declared a public holiday in commemoration of the 2026 Eid-el-Maulud celebration. Reflecting this downward movement, the overall equity market capitalisation contracted by N259.04bn to close at N154.14tn, touching its lowest point of the period as the Central Bank of Nigeria maintained its Monetary Policy Rate at 26.50 percent. Sectoral performances across the exchange reflected widespread weakness, with several key sector indices recording losses. The NGX Banking Index lost ground to close at 2,447.97 points, driven down by dips in heavyweights such as Zenith Bank Plc, which declined 2.13 per cent to N119.40 per share, and Guaranty Trust Holding Company Plc, which slipped 0.08 per cent to N127.60 per share. Insurance stocks also experienced broad declines, pulling the NGX Insurance Index down to 1,070.51 points. Additional downward pressure hit the consumer goods and energy sectors, as the NGX Consumer Goods Index fell to 4,028.23 points and the NGX Oil/Gas Index dipped to 4,954.75 points. Despite the overall bearish sentiment across the market, select equities managed to post notable gains. Neimeth International Pharmaceuticals Plc led the gainers’ chart, surging 9.66 per cent to close at N7.95 per share. NEM Insurance Plc followed with a 6.67 per cent rally to N32.00 per share, while Regency Alliance Insurance Plc gained 6.25 per cent to reach N0.85 per share. Other positive performers for the day included Linkage Assurance Plc, UPDC Real Estate Investment Trust, and Dangote Sugar Refinery Plc, which advanced 1.47 per cent to close at N69.00 per share. Conversely, market sentiment was dragged down by sharp pullbacks in pharmaceutical and agricultural counters. Fidson Healthcare Plc topped the losers’ list, falling 9.99 percent to close at N84.20 per share. FTN Cocoa Processors Plc experienced a similar sharp drop of 9.94 per cent to N7.79 per share, while International Energy Insurance Plc slid 9.74 per cent to N3.15 per share. Livestock Feeds Plc and Omatek Ventures Plc also saw severe declines, falling 9.43 per cent and 9.42 per cent, respectively. Trading activity across the market floor remained active, recording a total equity volume of over 733.25 million shares valued across 49,116 deals. Institutional and retail investors traded heavily in financial services, with First HoldCo Plc logging over 88.9 million shares traded and Access Holdings Plc following with 32.6 million shares. In the Exchange Traded Funds market, the Lotus Halal Equity ETF led the advancers with an 8.46 per cent jump to N125.00, whereas the Vetiva Industrial ETF logged the biggest drop among ETFs, sinking 9.02 per cent to N109.00. Debt securities registered minimal activity on the day, leaving bond valuations largely unchanged.

FX UTILIZATION JUMPS 74% TO $16.2BN IN Q1

Nigeria’s foreign exchange utilization rose sharply to $16.2bn in the first quarter of 2026, representing a 74 percent increase from the same period a year earlier, as improved dollar supply and greater currency stability boosted activity across the economy. The latest figures, contained in the Central Bank of Nigeria’s Quarterly Statistical Bulletin, show that the increase was largely driven by invisible transactions, which more than doubled year-on-year to $11.4bn from $4.5bn. Invisible transactions consequently accounted for about 70 percent of Nigeria’s total foreign exchange utilization during the quarter. The financial services industry was responsible for the largest portion of demand within the invisible transactions segment. Its FX utilization climbed 117 percent year-on-year to $9bn, representing 79 percent of total invisible transactions. Business services recorded the second-highest utilization within the category, rising significantly to $1.2bn from $223.6m in Q1 2025. Meanwhile, spending on merchandise imports remained relatively unchanged. FX utilization for visible imports increased marginally by 0.2 percent year-on-year to $4.9bn. Industrial companies, however, recorded lower demand for foreign exchange during the period. Their utilization fell 20 percent year-on-year to $1.8bn, despite the sector’s substantial dependence on imported raw materials, machinery, and equipment. In contrast, FX utilization for manufactured products rose to $1.1bn from $477.9m a year earlier, while demand for transport products increased to $295m from $142.8m. The stronger utilization of these categories was partly attributed to higher import costs linked to global supply chain disruptions and increased prices of key inputs and raw materials following the US-Iran conflict. The data also point to improving liquidity conditions in Nigeria’s FX market, with stronger gross external reserves providing greater support for dollar availability. The relative stability of the naira has also helped strengthen confidence in the market, making it easier for businesses and other end-users to anticipate currency movements and increasing their willingness to access foreign exchange. According to Lagos-based emerging markets analyst Ike Ibeabuchi, “The rise in FX utilization is a positive indication that improved liquidity is encouraging businesses and other market participants to return to the formal foreign exchange market.” However, he said the sustainability of this trend will depend on the CBN’s ability to maintain adequate dollar supply and ensure that exchange-rate stability is supported by stronger underlying economic activity.