November 2025 – Page 2

Linkage Assurance Unveils Plan to Raise N16 Billion in Fresh Capital to Accelerate Growth and Strengthen Operations

Linkage Assurance Plc has announced a major step toward strengthening its financial position and scaling its operations, revealing plans to raise N16 billion in new capital. The move marks a significant strategic shift for the insurance firm as it seeks to enhance its competitiveness, reinforce its balance sheet, and position itself for long-term growth in Nigeria’s evolving insurance landscape.

The capital raise, disclosed through a formal filing with the Nigerian Exchange (NGX), will be executed through various equity-based fundraising options. According to the company, its board of directors has received the necessary authorization to source the funds using any combination of private placement, rights issue, public offer, or other approved equity instruments. The final structure will depend on market realities, investor appetite, and regulatory considerations at the time of execution.

In the document signed by Company Secretary Moses Omorogbe, Linkage Assurance emphasized that the board maintains full flexibility in determining the most suitable approach, pricing structure, and timing for the capital injection. The company also underscored its commitment to complying with all regulatory requirements, including approvals from the Securities and Exchange Commission (SEC), the National Insurance Commission (NAICOM), and the NGX.

The statement read:
“The Board of Directors of the Company be and is hereby authorized to raise additional N16,000,000,000 (Sixteen Billion Naira) capital or such other amount as it may determine, by way of either Private Placement, Rights Issue, Public Offer or a combination, on such terms and conditions, including price and timing, as may be determined by the Board of Directors of the Company, subject to obtaining all relevant regulatory approval.”

A Strategic Response to Industry-Wide Capital Pressure

Linkage Assurance’s decision comes at a time when Nigeria’s insurance sector is witnessing increasing regulatory pressure to strengthen capital bases and enhance underwriting capacity. NAICOM has consistently emphasized the need for better capitalized insurers capable of absorbing risk, protecting policyholders, and meeting global standards.

The company’s capital-raising plan is therefore not only timely but also aligned with industry expectations. With additional capital, Linkage Assurance aims to:

Improve its risk-bearing capacity
Expand its underwriting portfolio
Strengthen solvency margins
Invest in digital transformation and customer-facing technologies
Deepen market penetration across retail and corporate segments

Positioning for Growth in a Competitive Market

The insurance sector has become increasingly competitive in 2025, with many firms engaging in mergers, acquisitions, and capital restructurings to remain viable. Linkage Assurance’s move signals a bold intention to remain among the top-performing insurers by aggressively expanding its operational capabilities.

New capital will enable the company to pursue growth opportunities in key business lines such as life, non-life, oil and gas, marine, and general accident insurance. It also opens doors for strategic partnerships, product diversification, and expansion into emerging segments of the market.

Investor Sentiment and Market Outlook

While the exact fundraising structure is yet to be finalized, market analysts note that a successful capital raise of N16 billion could significantly enhance investor confidence. Linkage Assurance’s recent performance on the NGX—where several insurance stocks have ranked among the year’s best performers—suggests that investor interest in the sector remains solid.

As the company prepares for the next phase of its expansion, a strengthened financial base will serve as a catalyst for improved profitability, stronger brand positioning, and increased shareholder value.

Linkage Assurance’s proactive step underscores the broader transformation within Nigeria’s insurance sector—one driven by capital consolidation, regulatory reforms, and the increasing need for insurers to demonstrate resilience in a fast-changing economic environment.

Nigeria’s PMI Rises to 56.4 in November, Extends Expansion Streak to 12 Consecutive Months

Nigeria’s private sector maintained its strong upward momentum in November 2025, with the Composite Purchasing Managers’ Index (PMI) climbing to 56.4 points from 55.4 recorded in October. The latest PMI data, released by the Central Bank of Nigeria (CBN), confirms a continued and broad-based expansion in economic activity, marking the twelfth straight month of growth. This sustained positive trend highlights a year of progressive economic recovery across key sectors despite prevailing macroeconomic pressures.

According to the CBN report, November’s PMI reading stands above all earlier monthly figures recorded in 2025, underscoring the resilience of businesses and the gradual stabilisation of productive activities nationwide. “Overall, the November 2025 PMI data indicated a continued expansion in economic activities across all sectors, surpassing all earlier indices in the year,” the report said.

Broad-Based Strength Across Key Indicators

All major sub-indices registered improvements, signalling stronger business performance and more robust economic conditions.

Output Index: 59.1 points
New Orders: 56.7 points
Employment: 54.4 points
Raw Materials Inventory: 54.3 points
Suppliers’ Delivery Time: 55.6 points

These figures reveal rising production volumes, increased consumer and industrial demand, and a more efficient flow of goods across supply chains. Faster delivery times point to easing logistical bottlenecks, while rising new orders highlight growing market confidence.

Industry Sector: Solid Expansion Despite Slight Pressure

The Industry Sector PMI came in at 54.2 points, remaining firmly in expansion territory though tempered by minor contractions in a handful of subsectors. Out of the 17 industrial subsectors surveyed, seven reported slight declines, with Paper Products facing the sharpest contraction.

Despite these pockets of slowdown, several subsectors maintained strong growth, led by Water Supply, Sewage & Waste Management, which delivered the highest expansion in the category.

Industry Sub-indices:

Output: 57.1
Employment: 51.6
Raw Materials Inventory: 49.7
Suppliers’ Delivery Time: 55.6
New Orders: 54.4

The drop in raw materials inventory below the 50-point threshold may reflect reduced input availability or more aggressive inventory optimisation by manufacturers responding to cost pressures.

Services Sector: Ten Straight Months of Growth

The Services Sector PMI remained upbeat at 56.8 points in November, marking ten consecutive months of expansion. All 14 subsectors surveyed recorded growth, reinforcing the services sector’s central role in Nigeria’s economic stabilisation efforts.

Educational Services saw the strongest growth as private investments increased and academic calendars stabilised nationwide. Professional, Scientific & Technical Services posted the slowest expansion but still remained well above the neutral 50-point mark.

This consistent broad-based expansion reflects improving consumer spending, stronger business-to-business transactions, and enhanced delivery of essential and professional services.

Agriculture Sector Leads as Strongest Performer

The Agriculture Sector continued its impressive run, posting a PMI of 58.2 points—its sixteenth consecutive month of expansion. This makes agriculture the longest-performing sector within the PMI framework.

All five agricultural subsectors expanded, boosted by improved weather patterns, better access to inputs, and rising demand for food and raw materials.

Key agricultural sub-indices included:

General Farming Activities: 61.4
New Orders: 59.5
Employment: 55.6
Raw Materials Inventory: 56.3

Forestry emerged as the fastest-growing subsector, driven by higher demand for timber and related materials.

Why the November PMI Matters

The sustained improvement in Nigeria’s PMI provides valuable insight into the country’s economic direction during a period of volatility and reform. Twelve months of uninterrupted expansion paint a clear picture of recovery—one that is not accidental but grounded in consistent business activity and positive sector-wide momentum.

PMI readings above 50 indicate growth; persistent readings around or above 55 signal strong and stable expansion. This trend boosts investor confidence, enhances credit outlooks, and encourages both domestic and foreign investment.

Crucially, the simultaneous growth in industry, services, and agriculture reflects a multi-sector expansion that supports millions of jobs. With agriculture and services—two of Nigeria’s largest employers—posting some of the strongest growth figures, the data suggests a recovery that is inclusive and sustainable.

As Nigeria navigates inflationary pressures, exchange rate challenges, and structural reforms, the November 2025 PMI results offer a reassuring signal: the private sector is steadily regaining strength, providing a crucial foundation for broader economic stability in the months ahead.

Nigerian Equities Rebound With N111bn Gain as Investor Confidence Returns

The Nigerian equities market rebounded on Thursday, November 27, 2025, recovering from the heavy losses recorded in the previous trading session and closing with a gain of N111.08 billion in market capitalization. The market’s total value rose to N91.1 trillion, representing a 0.12% increase from the N90.99 trillion posted on Wednesday. This positive turnaround stands in stark contrast to the roughly N443 billion decline witnessed the day before, signaling renewed investor confidence across key sectors.

Similarly, the benchmark NGX All-Share Index (ASI) advanced by 0.12%, closing at 143,239.23 points, compared to 143,064.57 points on Wednesday. The renewed momentum was driven largely by buying interests in major counters such as MTN Nigeria Communications Plc (MTNN), Nigerian Breweries (NB), and United Capital Plc (UCAP). MTNN recorded a gain of 1.08%, NB rose by 0.91%, while UCAP appreciated by 4.56%, all contributing significantly to the day’s bullish close.

Market breadth also reflected improved investor sentiment, closing positive at 1.74x, with 33 gainers outperforming 19 losers. This indicates broad-based buying activity and suggests that investors re-entered positions across several mid- and large-cap stocks after Wednesday’s sell pressure.

Key Market Indicators Strengthen

The market’s performance metrics provided further evidence of Thursday’s strengthening momentum.

All-Share Index (ASI): +0.13% to 143,246.93
Market Capitalization: +0.13% to N91.11 trillion
Gainers: 33
Losers: 20
Total Deals: 18,094 (down 9.16%)
Total Volume Traded: 316.49 million units (down 57.14%)
Total Value Traded: N12.66 billion (down 64.38%)
Year-to-Date Return: +39.17%

Though trading volumes and transaction values declined significantly, the positive close reflected selective accumulation of fundamentally strong stocks rather than broad speculative activity.

Sectoral Performance Mixed but Mostly Positive

Sector performance showed modest yet encouraging gains. The Insurance sector led with a 1.3% increase, followed by Consumer Goods and Banking, which each rose by 0.1%. The Oil & Gas and Industrial Goods indices closed flat, indicating minimal movement in those sectors.

Across individual stocks, top gainers included Ikeja Hotel and Linkage Assurance, both rising 10%, followed by Learn Africa and NCR, each up 9.96%, and Union Dicon, which gained 9.52%. Meanwhile, the top decliners were Champion Breweries (–9.85%), Sterling HoldCo (–8.33%), UPDC (–8.23%), C&I Leasing (–4.83%), and Guinea Insurance (–4.35%).

Drivers of the Rebound

The market’s recovery was largely powered by gains in major large- and mid-cap equities. In addition to MTNN and NB, stocks such as HONYFLOUR (+6.4%), ACCESSCORP (+1.0%), and several tier-1 banks—GTCO, UBA, Fidelity Bank, FCMB, and FBN Holdings—also contributed meaningfully. The financial services sector, in particular, provided a strong backbone for the rebound, aided by rising investor appetite for banking and insurance counters.

Hospitality, insurance, and construction stocks also recorded strong demand, reflecting optimism about corporate earnings and broader economic prospects.

Despite the upbeat performance, trading activity weakened significantly. Transaction volume dropped by 56% to 324.55 million units valued at N13.05 billion, executed in 18,328 deals. Fidelity Bank led by volume with 32.20 million units traded, while GTCO topped by value at N2.27 billion.

Overall, Thursday’s rebound signaled renewed confidence in the equities market after a volatile session, helped by strategic interest in large-cap stocks and improved sentiment across financial, consumer, and insurance sectors.

World Bank urges Nigeria to cut high import tariffs to ease inflationary pressure

The World Bank has urged the Federal Government of Nigeria to adopt immediate policy adjustments—particularly reducing elevated import tariffs and eliminating selected import bans—to curb the country’s persistently high inflation and prevent further deterioration in household welfare. The recommendation was made by the World Bank Country Director for Nigeria, Mathew Verghis, during an interview with Arise TV on Thursday, where he raised strong concerns about the nation’s inflation trajectory and the deepening impact on poverty levels.

Verghis explained that Nigeria’s inflation remains alarmingly high, with food inflation hovering near 20 percent. This level of sustained price pressure, he stressed, continues to erode the purchasing power of low-income households, pushing millions closer to poverty. According to him, the Bank’s economic modelling indicates that poverty in Nigeria may continue to rise throughout 2025 and could extend into 2026 unless urgent action is taken to tame inflation and stabilise real household incomes.

He noted that while Nigeria has embarked on a series of structural reforms—including exchange rate liberalisation and the removal of petrol subsidies—these measures must be complemented with short-term policy tools that deliver faster relief to vulnerable citizens.

“Nigeria has high tariffs and, in some cases, import bans on goods consumed by the poor. One way of lowering inflation quickly is to reduce some of these tariffs and take away some of these import bans,” Verghis said, emphasising that such reforms align with Nigeria’s commitments under ECOWAS and global trade norms.

Sustaining long-term reforms while pursuing immediate relief

Verghis acknowledged that Nigeria’s broader reform programme is moving in the right direction, but warned that reforms cannot be episodic. He referenced countries such as India and China, which, he said, were only able to achieve economic stability and sustained growth after decades of uninterrupted structural reform. Nigeria, he argued, must learn from these global examples and maintain consistency across fiscal, monetary, and trade policies.

At the same time, he highlighted opportunities for policy adjustments that could deliver faster results. Reducing import tariffs on essential goods, improving customs efficiency, and removing certain import bans would lower the cost of key commodities, thereby dampening inflation and reducing the financial strain on households. He added that these measures would also help reduce smuggling and market distortions created by restrictive trade policies.

Exchange rate stability must be driven by investment, not control

On Nigeria’s exchange rate challenges, Verghis cautioned against attempts to artificially stabilise the naira. Instead, he advocated for a market-driven exchange rate supported by rising export earnings and higher inflows of foreign direct investment (FDI).

“The best way to keep the naira stable is to make sure that your exports are increasing and your foreign direct investment is increasing,” he said.

He added that the objective should not simply be a stable exchange rate but an economic environment that promotes private-sector activity, encourages long-term planning, and enhances investor confidence.

Verghis praised Nigeria’s recent progress in diversifying its revenue base, noting that the country is now less dependent on oil revenues than in previous years—thanks to a more realistic exchange rate regime and elimination of petrol subsidies. This trend, he said, is improving the country’s fiscal outlook and helping to reduce the debt-to-revenue ratio for the first time in years.

However, he warned that fiscal discipline remains essential. Borrowing, he said, must be tied to productive investments: “If borrowed money is not utilised wisely, then eventually the country will face a debt problem.”

Concerns about Nigeria’s social safety nets

The World Bank recently expressed concern about the effectiveness of Nigeria’s social protection programmes. In its report, “The State of Social Safety Nets in Nigeria,” the institution noted that although 56 percent of beneficiaries of government social programmes are poor, only 44 percent of total benefits reach poor households. This inefficiency, the Bank warned, undermines efforts to cushion vulnerable populations against rising prices.

According to Verghis, improving social protection, stabilising inflation, and reforming trade policies must all work together to set Nigeria on a sustainable path toward inclusive growth.

Governor Bala Mohammed Presents N878 Billion 2026 Budget to Bauchi Assembly

Bauchi State Governor, Bala Mohammed, has presented an N878 billion Appropriation Bill for the 2026 fiscal year to the State House of Assembly, marking one of the most ambitious financial proposals in the state’s history. The governor made the presentation on Thursday in Bauchi, describing the proposal as a “Budget of Consolidation and Sustainability,” and assuring lawmakers of its full and effective implementation.

During the presentation, Mohammed emphasized that the budget was structured in compliance with the national chart of accounts and reflects the administration’s commitment to strengthening ongoing reforms across critical sectors. The proposed 2026 budget allocates N567 billion, or 65%, to capital expenditure, while N310 billion, representing 35%, is dedicated to recurrent spending. This distribution underscores the government’s focus on infrastructure development, service delivery improvement, and long-term socioeconomic growth.

Budget Growth Driven by Reforms

Governor Mohammed noted that the 2026 budget represents a 41.07% increase compared to the 2025 estimates. He attributed this substantial rise to enhanced revenue prospects driven by state-led reforms and the projected effects of tax adjustments scheduled for implementation in January 2026. According to him, the administration adopted a conservative revenue framework, aligning the proposal with the Medium-Term Expenditure Framework (MTEF) and the state’s Fiscal Responsibility Law to ensure fiscal realism and execution feasibility.

Mohammed highlighted that the state has recorded improvements in internally generated revenue, partly due to financial reforms and efforts to plug leakages. These gains, he said, provided a foundation for the expanded 2026 fiscal plan.

Sectoral Allocation: Economic Sector Dominates Spending

Providing a breakdown of the proposed allocations, the governor revealed that the economic sector accounts for the largest share of the budget, receiving N435 billion, or 49.6% of the total. This category covers agriculture, public works, transport, commerce, and other growth-enabling sectors critical to job creation and poverty reduction.

The administrative sector is set to receive N120 billion, representing 13.7%, while the Law and Justice sector has been allocated N12 billion, equal to 1.4% of the total. The social sector, which encompasses education, healthcare, and social welfare, is assigned N310 billion, representing 34.4% of the overall budget.

Mohammed explained that the allocations reflect the government’s priorities of strengthening human capital, enhancing infrastructure, and expanding economic opportunities for citizens.

Review of 2025 Budget and Expectations for 2026

While reviewing the performance of the ongoing 2025 budget, the governor reported an impressive 79.1% implementation rate as of September 2025. He expressed confidence that the 2026 budget would achieve at least 85% implementation, citing improved planning, disciplined financial management, and enhanced revenue mobilization efforts.

The governor appealed for sustained cooperation from the House of Assembly to fast-track the passage of the Appropriation Bill, stressing that timely approval is essential to maintaining the momentum of development across the state.

Assembly Promises Quick Passage

In his response, the Speaker of the Bauchi State House of Assembly, Abubakar Sulaiman, commended the governor for presenting the budget early and reaffirmed the legislature’s commitment to thoroughly and promptly reviewing the proposal. He praised the administration for its developmental strides and pledged the Assembly’s unwavering support for initiatives aimed at improving residents’ welfare.

Additional Context

Earlier in July, the Bauchi State Government disclosed that investments in the state’s gypsum and limestone resources had surpassed $1.5 million, accelerating plans for establishing a state-owned cement production company. This development aligns with the administration’s broader economic diversification goals, which are reflected in the heavy allocation to the economic sector in the 2026 budget.

Delta Governor Oborevwori Presents N1.664 Trillion 2026 Budget to State Assembly

Delta State Governor, Sheriff Oborevwori, has presented a N1.664 trillion Appropriation Bill for the 2026 fiscal year to the State House of Assembly in Asaba, marking one of the most ambitious financial proposals in the state’s history. The presentation, made during plenary, outlines the administration’s priorities for accelerating infrastructural development, strengthening economic resilience, and expanding social investments across the state.

Governor Oborevwori explained that the proposed budget is structured to reinforce his administration’s commitment to inclusive growth and long-term development. Of the total amount, N499 billion—representing 30% of the budget—is dedicated to recurrent expenditure. This allocation covers salaries, pensions, overheads, and the day-to-day operations of government institutions. The remaining N1.165 trillion, or 70%, is earmarked for capital projects, reflecting the administration’s strong emphasis on infrastructure expansion, economic diversification, and strategic investments in critical sectors.

The 2026 proposal represents a dramatic increase of N685 billion—about 70%—over the 2025 budget. The governor attributed the expansion to the state’s intensified development agenda and the need to address infrastructural deficits that constrain economic activity. He added that the higher capital allocation aligns with his promise to deliver visible and transformative projects under the “MORE Agenda,” which targets meaningful development, opportunities for all, realistic reforms, and enhanced peace and security.

Speaking further on funding sources, Governor Oborevwori disclosed that revenues for the fiscal year will be drawn from statutory allocations, internally generated revenue (IGR), Value Added Tax (VAT), the 13% oil derivation fund, and other legally recognized income streams. He emphasized that strengthening IGR mechanisms remains a central priority, especially as the administration seeks to reduce dependence on federal allocations and ensure more stable financial planning.

A major highlight of the budget is the allocation of N450 billion for road infrastructure. The governor stressed that well-constructed and well-maintained roads are essential for driving Delta State’s economic ambitions. He explained that improved road networks will lower transportation costs, enhance access to local and urban markets, attract new investments, strengthen inter-community linkages, and create thousands of jobs through construction and ancillary services. He also reaffirmed his administration’s commitment to completing ongoing road projects and initiating new ones in underserved communities.

Beyond infrastructure, agriculture remains a core component of the 2026 development plan. The budget sets aside N10 billion for the Ministry of Agriculture and Natural Resources to expand mechanized farming, support agribusinesses, and strengthen value chains in key commodities. Governor Oborevwori underscored that agriculture is central to economic diversification, poverty reduction, and food security. He noted that the administration will continue to invest in training, incentives, and modern tools to empower farmers across Delta State.

During his presentation, the governor called on lawmakers to give the budget swift consideration, stressing that timely approval is necessary to maintain momentum in project execution and service delivery. He pledged that his administration would continue to build “a prosperous, secure, and stronger Delta where no one is left behind.”

Responding on behalf of the Assembly, Speaker Rt. Hon. Dennis Guwor commended the governor for his achievements during the past year. He noted significant progress under the ‘Renewed Hope for MORE Agenda,’ including investments in infrastructure, social welfare programs, and prudent fiscal management. Guwor also praised the governor for approving the Consolidated Legislative Salary Structure (CONLESS) and initiating the construction of permanent offices for the Assembly Service Commission.

The Speaker assured the governor that the 8th Assembly would conduct a thorough and efficient review of the budget proposal. While affirming the Legislature’s constitutional independence, Guwor emphasized that both arms of government share a unified goal—delivering sustainable development and improving the lives of citizens across Delta State.

AfDB Approves $500 Million Loan to Support Nigeria’s Economic Reforms and Energy Transition

The African Development Bank Group (AfDB) has approved a $500 million loan to the Federal Government of Nigeria to advance the second phase of the Economic Governance and Energy Transition Support Programme—an intervention designed to accelerate structural reforms, strengthen public finance, and catalyse Nigeria’s shift toward cleaner, more reliable energy.

The approval was disclosed in a statement issued by the Bank on Wednesday following a meeting of its Board of Directors in Abidjan, Côte d’Ivoire. The initiative is structured as a policy-based operation covering the 2024 and 2025 fiscal years and aligns with Nigeria’s medium-term reform agenda.

According to the AfDB, this phase of the programme builds on the progress achieved in the first phase, which focused on stabilising fiscal operations, improving transparency, and initiating key reforms within the energy sector. The second phase is expected to deepen these reforms and broaden their impact across federal institutions, private businesses, and the wider Nigerian economy.

Reform Priorities and Strategic Goals

In its statement, the AfDB outlined three central pillars that will guide the deployment of the $500 million facility:

1. Strengthening Fiscal Policy and Public Financial Management
The loan will support Nigeria’s efforts to expand non-oil revenues, reduce fiscal vulnerabilities, and enhance the efficiency of government spending. This includes improving public financial management systems, increasing transparency in budget implementation, and reducing leakages. With Nigeria’s fiscal framework still constrained by high debt-service costs and relatively low revenue mobilisation, the Bank’s intervention aims to provide the budget support necessary to keep critical reforms on track.

2. Accelerating Energy Sector Reforms
A major component of the programme is the acceleration of energy sector reforms intended to reduce chronic energy poverty. Nigeria continues to struggle with erratic electricity supply, insufficient generation capacity, weak transmission infrastructure, and governance challenges across the value chain. The AfDB hopes that targeted reforms—combined with improved regulatory oversight and a stronger investment climate—will help attract private capital, reduce system losses, and expand power access to underserved communities.

3. Supporting the National Energy Transition Plan (NETP)
The loan will also facilitate Nigeria’s shift toward cleaner energy sources by supporting climate adaptation and mitigation initiatives. This includes implementing energy-efficiency standards for electrical appliances, reinforcing climate resilience policies, and updating Nigeria’s Nationally Determined Contribution (NDC) targets for the 2026–2030 period. The Bank emphasised that achieving an inclusive and sustainable energy transition is essential for long-term economic stability and environmental protection.

Beneficiaries and Institutional Scope

The programme will directly benefit several key government agencies, including the Federal Ministry of Finance, the Federal Inland Revenue Service, the Office of the Auditor General, the Debt Management Office, the Federal Ministry of Power, the National Climate Change Council (NCCC), the Nigerian Electricity Regulatory Commission (NERC), and the Federal Ministry of Environment.

Beyond government institutions, the AfDB noted that private businesses—particularly those in the power and green energy sectors—stand to gain from a more predictable regulatory environment, improved energy infrastructure, and a stronger fiscal framework supportive of public-private partnerships. Subnational governments are also expected to benefit through improved governance structures that encourage private investment at the state level.

Broader Impact and Current AfDB Portfolio in Nigeria

The Bank emphasised that the reforms supported by this loan are crucial for stabilising Nigeria’s macroeconomic outlook, rebuilding investor confidence, and unlocking long-term financing for infrastructure, renewable energy, and climate-resilient development.

As of 31 October 2025, the AfDB’s active investment portfolio in Nigeria includes 52 projects valued at $5.1 billion, spanning infrastructure development, agriculture, governance, energy, and private-sector support. The new $500 million facility adds another layer of support to Nigeria’s ongoing efforts to reposition its economy and modernise its energy landscape.

Gov. Otti Presents N1.016 Trillion 2026 Budget Proposal to Abia State House of Assembly

Abia State Governor, Dr. Alex Otti, has formally submitted a 2026 budget estimate of N1.016 trillion to the Abia State House of Assembly, marking a significant fiscal step for the state as it pursues deeper economic transformation and institutional strengthening. The presentation, made on Wednesday, was announced in a statement issued by the Governor’s Chief Press Secretary, Ukoha Njoku Ukoha.

The proposed budget—aptly titled “Budget of Acceleration and New Possibilities”—signals the administration’s intention to build on the momentum created in 2025. The new estimate represents a 13% increase over the previous year’s budget, underscoring the state government’s expanded ambitions in infrastructure renewal, social sector investments, and governance reforms.

A central feature of the proposal is its heavy emphasis on capital development. Of the N1.016 trillion outlay, a substantial N811.8 billion (80%) has been earmarked for capital expenditure. This marks not only a prioritization of long-term developmental projects but also a 32% increase in capital spending compared to the 2025 projection of N726.4 billion. In contrast, recurrent expenditure is set at N204.4 billion (20%), which itself reflects a 33% rise from last year’s recurrent appropriation of N136 billion.

Governor Otti explained that the increase in recurrent spending is primarily driven by administrative and workforce needs, especially following the onboarding of thousands of newly recruited employees across various sectors of the state government. According to him, the adjustments were necessary to adequately fund essential public services, sustain operational efficiency, and support the personnel structure required to deliver on the administration’s development agenda.

While presenting the budget, Governor Otti emphasized that the fiscal plan is aligned with the goal of accelerating socioeconomic development through strategic investments in infrastructure, social welfare, security architecture, and institution-building—pillars he described as critical to the “ongoing transformation” of Abia State. He highlighted that the administration is committed to sustaining policies and projects that stimulate growth and improve citizens’ quality of life.

The proposed budget gives strong attention to key social sectors. Education receives 20% of the total allocation, while health is assigned 15%, bringing their combined share to 35% of the 2026 budget. This focus reinforces Otti’s long-stated commitment to strengthening human capital as a driver of long-term prosperity.

Infrastructure remains one of the most heavily funded priorities. The budget allocates N169.3 billion for road construction, reconstruction, rehabilitation, and maintenance. This includes ongoing projects as well as new interventions aimed at improving mobility, opening up economic corridors, and easing transportation challenges across urban and rural communities.

The government also outlined the revenue assumptions guiding the budget. The 2026 plan is built on conservative revenue projections that take into account the economic conditions of 2025. Internally generated revenue is expected to hit N223.4 billion. Governor Otti noted that the administration intends to finance all recurrent expenditure solely from IGR, which he described as a strategic approach to strengthening fiscal responsibility. Any borrowing, he emphasized, would be strictly tied to infrastructure projects that can stimulate growth and generate long-term value.

Overall, the N1.016 trillion budget proposal reflects the Otti administration’s drive to consolidate recent gains and deepen reforms. With its blend of aggressive capital investment, social sector expansion, and prudent fiscal planning, the 2026 budget charts a trajectory aimed at accelerating development while opening new possibilities for economic advancement and institutional renewal in Abia State.

Nigeria’s Money Supply Expands to N119.04 Trillion Following September Rate Cut

Nigeria’s monetary landscape continued its expansion in October 2025, with new figures from the Central Bank of Nigeria (CBN) showing that broad money supply (M3) rose to N119.04 trillion, up from N117.78 trillion recorded in September. This represents a month-on-month increase of N1.25 trillion, or 1.06%, and underscores the continued build-up in system liquidity even as the apex bank cautiously navigates a shifting macroeconomic environment.

On a year-on-year basis, the data points to an even more pronounced expansion. M3 climbed from N107.99 trillion in October 2024 to N119.04 trillion in October 2025, marking an annual increase of N11.04 trillion, or 10.22%. This steady growth in liquidity has come at a time when inflation pressures have begun to ease, giving the monetary authorities room to initiate a modest policy rate cut for the first time in five years.

The growth recorded in October follows the Monetary Policy Committee’s (MPC) landmark decision in September 2025 to reduce the Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27.5% to 27%. The cut, taken against the backdrop of moderating inflation and an improving foreign exchange market, signalled a tentative shift toward policy easing after years of aggressive tightening aimed at curbing inflationary pressures.

Net Domestic Assets Take Centre Stage

A closer look at the components of broad money supply reveals that net domestic assets (NDA) were the primary driver of liquidity growth in October. NDA rose sharply from N76.12 trillion in September to N84.23 trillion in October—an expansion of N8.11 trillion, or 10.65%, within a single month. This marks one of the most significant monthly increases recorded in 2025.

NDA reflects the banking sector’s claims on government and the private sector, along with other domestic financial positions. Such a sharp increase typically signals a rise in government borrowing, growth in credit extended to businesses and households or a reallocation of banks’ portfolios toward domestic investments. In October, the strong expansion in NDA more than compensated for a notable contraction in Nigeria’s net foreign assets.

Net Foreign Assets Decline

Net foreign assets (NFA) fell from N41.66 trillion in September to N34.80 trillion in October, a decrease of N6.86 trillion, or 16.45% month on month. Despite this sharp monthly decline, NFA remains significantly higher than it was a year ago, rising by 67.41% when compared with October 2024. The monthly dip, however, highlights renewed external pressures—possibly related to fluctuations in foreign reserves, exchange rate adjustments, or global market dynamics—while domestic liquidity continues to expand.

M2 and Narrow Money Maintain Stable Growth

Money supply measured as M2 mirrored the overall trend, rising from N117.77 trillion in September to N119.03 trillion in October, representing a month-on-month increase of 1.06%. Year on year, M2 also rose from N107.99 trillion to N119.03 trillion, maintaining the same annual growth rate of 10.22% as M3.

The alignment between M2 and M3 suggests that the bulk of the liquidity expansion originated from traditional channels—such as deposits and credit—rather than more complex financial assets.

Narrow money (M1), which captures cash in circulation and demand deposits, saw a more modest adjustment. It increased from N39.11 trillion in September to N39.35 trillion in October, reflecting a rise of 0.61% month on month. Year-on-year growth in M1 stood at 13.12%, indicating steady expansion in cash-based and current account transactions.

A Delicate Balancing Act for the CBN

The combined data paints a picture of an economy experiencing buoyant domestic credit activity while grappling with external vulnerabilities. The strong rise in NDA suggests intensified liquidity creation within the domestic financial system, even as NFA declines.

Given this backdrop, the MPC’s November decision to maintain the MPR at 27% reflects a cautious approach aimed at preventing excessive liquidity from eroding recent progress in taming inflation. By holding rates steady after September’s initial cut, the central bank appears committed to striking a balance between supporting economic recovery and safeguarding macroeconomic stability.

Overall, the October 2025 money supply numbers highlight shifting liquidity dynamics driven largely by domestic financial activity. As Nigeria continues to manage the ripple effects of global uncertainties, exchange rate adjustments and internal credit expansion, the CBN’s measured policy stance remains critical in ensuring that liquidity growth does not reverse the hard-won gains in price stability.

Sovereign Trust Insurance Board Approves N5 Billion Rights Issue as First Step in Broader Recapitalisation Drive

Sovereign Trust Insurance Plc has taken a major step toward strengthening its financial position and meeting new regulatory requirements, with its Board of Directors approving an initial capital raise of N5 billion through a Rights Issue. The approval, announced after a board meeting chaired by Mr. Abimbola Oguntunde, marks the first phase of a larger N20 billion recapitalisation programme designed to align the company with the recently enacted Nigerian Insurance Industry Reform Act (NIIRA).

The NIIRA framework, signed into law by President Bola Ahmed Tinubu, introduces stricter capital adequacy requirements and demands that insurance firms maintain stronger solvency buffers to protect policyholders and enhance sector-wide resilience. For Sovereign Trust Insurance Plc, the new rules represent both a compliance obligation and an opportunity to expand its underwriting strength in a market that is becoming progressively competitive.

In a regulatory filing with the Nigerian Exchange (NGX), the company stated that the N5 billion Rights Issue reflects its proactive approach to the unfolding industry reforms. According to the filing, the capital raise is expected to be completed within the first quarter of 2026. The company has already begun consultations with issuing houses, auditors, legal advisers, and other transaction parties to ensure a seamless process once the offer officially opens to existing shareholders. Regulatory approval processes are also in their final stages.

The decision to launch the Rights Issue follows resolutions passed at the company’s 30th Annual General Meeting held on September 25, 2025. At the meeting, shareholders endorsed a capital raise of up to N20 billion—signaling widespread investor support for management’s long-term strategy. Shareholders also approved a dividend of five kobo per share, a gesture that project confidence in the company’s fiscal discipline despite the impending capital restructuring.

Market reaction in the weeks following the AGM was notably positive. The company’s shares recorded significant gains on the NGX over multiple trading sessions in October 2025, reflecting heightened investor interest and renewed optimism regarding Sovereign Trust Insurance Plc’s growth prospects under the NIIRA regime.

In a statement signed by Mr. Segun Bankole, Head of Corporate Communications & Investor Relations, the company emphasized that the Rights Issue aligns with global best practices in capital management. The additional funds will enhance liquidity, boost operational flexibility, strengthen the balance sheet, and enable the company to expand its underwriting capacity—particularly in high-growth segments of the insurance market.

Managing Director and Chief Executive Officer, Mr. Olaotan Soyinka, reaffirmed management’s commitment to positioning Sovereign Trust Insurance Plc among the top five insurance companies in Nigeria. He encouraged shareholders to take full advantage of the Rights Issue once it opens, stressing that the recapitalisation will support ongoing initiatives around innovation, digital service delivery, and improved customer experience. According to Soyinka, these strategic pillars—digital transformation, market agility, operational efficiency, and underwriting excellence—remain central to the company’s mission to deliver long-term value.

Earlier in September, the company had indicated that the broader N20 billion capital raise could be executed through a combination of public offerings, private placements, and rights issues, either within Nigeria or in international markets. Pricing and valuation, the company said, would be determined through book building and other industry-recognized valuation methods.

As regulatory reforms reshape Nigeria’s insurance landscape, Sovereign Trust Insurance Plc’s early move to meet compliance targets positions it for stronger market presence. With the upcoming Rights Issue and the broader recapitalisation programme, the company aims not only to meet statutory requirements but to secure future growth in a sector increasingly defined by capital strength, digital innovation, and customer-centered service delivery.

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Month: November 2025