January 2026 – Page 15

Kebbi Government Approves N650 Million Transformer Project to Curb Power Outages

The Kebbi State Government has approved the release of N650 million for the procurement and installation of a 15-megavolt-ampere (15MVA) power transformer, in a decisive move aimed at improving electricity supply and reducing persistent power outages across the state. The intervention underscores the administration’s willingness to directly address infrastructure bottlenecks that continue to affect households, businesses, and public services.

The approval was announced in Birnin Kebbi by the Secretary to the State Government, Yakubu Bala-Tafida, during a media briefing on recent decisions taken by the state government. According to him, the transformer project is part of broader efforts by the administration of Nasir Idris to ease the economic and social hardship caused by unreliable electricity supply.

Electricity challenges have remained a recurring concern for residents of Kebbi State, with frequent outages disrupting small businesses, increasing operating costs for manufacturers and traders, and affecting the delivery of essential public services such as healthcare and water supply. Bala-Tafida noted that the new transformer is expected to significantly improve load capacity and system stability, particularly in high-demand areas of the state.

What the government is saying
While electricity distribution is the statutory responsibility of the Kaduna Electricity Distribution Company (KAEDCO), the Kebbi State Government said it deemed it necessary to intervene in the interest of its citizens.

“Although power distribution falls under the purview of KAEDCO, the Kebbi State Government considered it expedient to step in and alleviate the suffering of residents caused by persistent and epileptic power supply,” Bala-Tafida said. He explained that the decision reflects the administration’s people-centred approach, especially at a time when energy costs and operational challenges are placing pressure on local economies.

Beyond the one-off N650 million transformer project, the SSG disclosed that the state government also provides monthly financial support of N150 million to KAEDCO. This recurring intervention, he said, is intended to enhance service delivery, support maintenance activities, and ensure a more sustainable electricity supply framework within the state.

Bala-Tafida also appealed to residents to play their part by promptly paying electricity bills and avoiding illegal connections, stressing that improved cooperation between consumers, the government, and the distribution company is critical to sustaining gains in power supply. According to him, enhanced revenue collection will enable KAEDCO to invest more in network upgrades and fault resolution.

Broader development context
The transformer project fits into a wider pattern of public investment by the Kebbi State Government across key social and economic sectors. In October, the state approved N4.05 billion for the rehabilitation of seven General Hospitals, a move aimed at strengthening healthcare delivery and improving access to quality medical services across urban and rural communities.

In the education sector, the government approved N1.4 billion for the procurement of school furniture for public schools, addressing long-standing shortages that have affected learning conditions. To improve data-driven governance, an additional N900 million was approved as a take-off grant for the newly established Kebbi State Bureau of Statistics, with Umar Usman appointed as the substantive Statistician-General.

The state has also announced plans to recruit 500 additional health workers and to absorb 390 staff members previously engaged under the Global Alliance for Vaccines and Immunisation (GAVI) into the state workforce. This is particularly significant for Kebbi, which has long struggled with shortages of healthcare personnel, especially at the level of Primary Healthcare Centres.

Investment and outlook
Governor Idris has consistently linked infrastructure improvements, including power supply, to the state’s broader economic ambitions. In February 2025, he disclosed that the state had attracted over N330 billion in foreign investment targeted at boosting tourism and preserving cultural heritage. Reliable electricity, analysts note, is a critical enabler for such investments, particularly in hospitality, creative industries, and small-scale manufacturing.

By approving the N650 million transformer project and sustaining monthly support to KAEDCO, the Kebbi State Government is signalling a pragmatic approach to development—one that prioritises immediate solutions to pressing challenges while laying the groundwork for long-term economic growth. If effectively implemented, the intervention could ease power-related constraints, lower business costs, and improve overall quality of life for residents across the state.

Kano State Approves N6.9 Billion for Infrastructure, Welfare, and Institutional Reforms

The Kano State Government has approved over N6.9 billion in fresh spending for infrastructure development, social welfare programmes, and governance-related initiatives, reinforcing its commitment to addressing critical development gaps across the state. The approvals were granted at the 36th meeting of the Kano State Executive Council, held at the Government House in Kano, and reflect a broad-based approach that combines physical infrastructure delivery with human capital development and institutional strengthening.

Briefing journalists after the meeting, the Commissioner for Information, Ibrahim Waiya, explained that the approved projects span road construction, drainage systems, water supply, education, entrepreneurship support, anti-corruption initiatives, and legislative reforms. According to him, the decisions underscore the administration’s intention to pursue inclusive development while ensuring that governance structures are modernised to support long-term growth.

A significant share of the approved funds is directed at road infrastructure and related compensation, highlighting the government’s focus on improving mobility and connectivity. The Executive Council approved N859.2 million for compensation payments to property owners affected by a five-kilometre road construction project in Tudun Wada Local Government Area. This measure is aimed at minimising social disruptions, ensuring fairness to affected residents, and enabling smooth execution of the project without prolonged disputes.

In addition, the council approved N2.6 billion for the construction of the Yandodo–Mai-Allo Road, a key transport corridor expected to enhance inter-community connectivity and support economic activity, particularly for traders and farmers who rely on efficient road networks. A further N1.2 billion was approved for the construction of a box culvert, while N896 million was allocated for the reconstruction of a failed culvert in Kiru Local Government Area, where recurring flooding has repeatedly disrupted transportation and economic life.

Urban resilience also featured prominently in the approvals. To address flooding and environmental risks, the council sanctioned N358.5 million for stormwater drainage projects in Kano Municipal. Complementing this, N85.6 million was approved for the extension of water pipelines in Gwale Local Government Area, aimed at improving access to potable water while also reducing flood-related challenges in densely populated neighbourhoods.

Beyond physical infrastructure, the Executive Council approved several initiatives targeted at education, youth empowerment, and public sector accountability. A total of N285 million was approved for classroom construction across the state, reflecting efforts to improve learning environments and accommodate growing enrolment. In addition, N431.7 million was earmarked for graduation ceremonies and empowerment programmes at the state’s Entrepreneurship Institute, reinforcing the government’s focus on skills development and job creation.

Institutional reform also received attention, with N157.7 million approved for the organisation of an anti-corruption workshop designed to strengthen transparency, ethics, and accountability within the public service. According to officials, this initiative aligns with broader efforts to improve governance standards and restore public confidence in state institutions.

On the legislative front, the council authorised the transmission of four bills to the Kano State House of Assembly. These include the Kano State Local Governments Administration Bill 2025, the Kano State Economic Planning and Development Council Bill 2025, the Kano State Education Bill 2025, and a bill to rename the Audu Bako College of Agriculture, Science and Technology, Dambatta. Collectively, the proposed laws are intended to strengthen local governance, improve planning coordination, reform the education sector, and update institutional identities.

The council also approved the implementation of the state’s Public-Private Partnership (PPP) Policy and Manual, signalling a strategic push to attract private sector participation in infrastructure delivery and public service provision.

Why this matters
The approval of over N6.9 billion highlights Kano State’s continued focus on tackling infrastructure deficits while investing in education, entrepreneurship, and governance reforms. Improved roads, drainage, and water infrastructure are expected to boost economic activity, reduce environmental risks, and enhance quality of life, particularly in rapidly growing urban and peri-urban areas.

The latest approvals also build on earlier investment decisions by the Kano State Executive Council. In previous briefings, the government announced approvals of N14.8 billion and over N69 billion for various developmental projects spanning healthcare, education, energy, and humanitarian interventions. Taken together, these cumulative investments signal a sustained and aggressive public investment posture aimed at driving holistic development across multiple sectors, even amid broader national debates on public finance and fiscal sustainability.

Rebooting Tax Reform: Bridging Nigeria’s Trust Gap

Nigeria’s proposed tax reform agenda is facing a credibility challenge—not because its technical foundations are weak, but because its rollout has failed to sufficiently account for a critical, often overlooked factor: tax morale. Across the country, citizens are struggling to connect with the intent and promise of the new tax regime. The resistance, confusion, and controversy that followed the bill’s passage point to a deeper problem—one rooted less in policy design and more in trust.

At the heart of the debate is a disconnect between the state and taxpayers. While government officials and policy experts have largely framed the reform as a technical necessity to broaden the revenue base and strengthen fiscal sustainability, many Nigerians see it through a social lens shaped by lived realities of hardship. Hunger, poverty, unemployment, and limited access to quality education continue to dominate daily life for millions. In such an environment, tax compliance cannot be assumed; it must be earned.

The work of the Presidential Fiscal Policy and Tax Reform Committee, chaired by Taiwo Oyedele, deserves recognition for its depth, rigour, and professionalism. On paper, the committee addressed long-standing inefficiencies in Nigeria’s tax framework, including overlaps, distortions, and the burden of compliance. However, the reform process adopted a largely technocratic approach, focusing on structures, rates, and administrative efficiency, while underestimating the importance of public buy-in and perception.

Tax systems do not operate in a vacuum. They are sustained by a social contract in which citizens agree to contribute resources in exchange for public goods, services, and accountable governance. When that contract is weak or broken, tax morale suffers. This is the core issue confronting Nigeria’s tax reform today. Citizens are being asked to comply more rigorously with tax obligations at a time when trust in institutions remains fragile.

The controversy surrounding the bill’s passage through the National Assembly, followed by reported discrepancies between the version passed by lawmakers and the gazetted version, has only deepened scepticism. Instead of serving as a unifying moment to reset Nigeria’s taxation framework, the reform has entered the implementation phase amid confusion and competing narratives. This has eroded confidence and raised legitimate questions about transparency and process.

This moment calls for a reset. Implementation should not proceed as if public confidence is intact when evidence suggests otherwise. The government must recognise that policy legitimacy is as important as policy accuracy. The newly constituted National Tax Policy Implementation Committee, chaired by Kayode Tegbe, has a critical role to play. Its task should go beyond execution to include engagement—deep, sustained, and genuine dialogue with citizens, civil society organisations, and the private sector.

Education must be central to this effort. Nigerians need clear, accessible explanations of what the new tax regime entails, how it differs from the old system, and—most importantly—what benefits it promises in tangible terms. Tax reform should not be communicated solely in the language of revenue optimisation, but in terms of improved public services, infrastructure delivery, and shared national progress.

Equally important is the need for government to demonstrate seriousness in addressing the structural issues that undermine tax morale. When citizens see credible action on poverty reduction, food security, education, and basic welfare, willingness to comply with tax obligations naturally improves. Trust grows when people believe their contributions are being used responsibly and equitably.

Leadership from the executive arm, under Bola Ahmed Tinubu, is essential in setting this tone. Tax reform should be framed not as a fiscal extraction exercise, but as part of a broader national renewal agenda anchored on accountability, transparency, and shared sacrifice.

Several practical steps are urgent. First, discrepancies between the bill passed by the National Assembly and the gazetted version must be resolved transparently and swiftly. Second, stakeholder engagement should be institutionalised, not treated as an afterthought. Third, a nationwide tax education campaign must be launched to build understanding and reduce misinformation. Finally, government must visibly confront the socio-economic challenges that shape citizens’ attitudes toward taxation.

Why GTCO Raised ₦10 Billion via Private Placement

The decision by Guaranty Trust Holding Company Plc (GTCO) to raise ₦10 billion through a private placement in late December 2025 has generated interest across Nigeria’s capital market. At first glance, the move appeared curious, especially given the group’s strong profitability, solid balance sheet, and the fact that its flagship banking subsidiary is already well capitalised. However, a closer look shows that the capital raise was driven not by financial stress, but by a specific regulatory requirement that applies uniquely to financial holding companies in Nigeria.

On December 30, 2025, GTCO announced that it had secured the necessary approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) to raise ₦10 billion via a private placement. The offer, which closed on December 31, 2025, was disclosed in a statement signed by the Group General Counsel and Company Secretary, Erhi Obebeduo.

Importantly, the transaction was not prompted by weakness at GTCO’s core banking operations. Guaranty Trust Bank Limited, the group’s main operating subsidiary, has already exceeded the CBN’s minimum capital requirement for commercial banks with international authorisation. As of September 30, 2025, GTCO reported share capital of ₦18.21 billion and share premium of ₦489.37 billion, bringing total shareholders’ funds attributable to paid-up capital and premium to about ₦507.58 billion. By conventional measures, this places the group in a position of strength.

The key driver of the private placement lies in the regulatory framework governing financial holding companies, commonly referred to as HoldCos. Under CBN guidelines, a financial holding company is required to maintain minimum paid-up share capital that is at least equal to the aggregate regulatory capital of all its regulated subsidiaries. These subsidiaries can include banks, pension fund administrators, payment service companies, asset managers, and other licensed financial entities within the group.

In simple terms, the rule can be expressed as: HoldCo paid-up share capital must be equal to or greater than the combined regulatory capital of its subsidiaries. The logic behind this requirement is straightforward. First, it ensures that the holding company has sufficient capital strength to credibly support its operating subsidiaries in times of stress. Second, it prevents the same capital from being effectively counted twice across the group structure. Third, it avoids situations where a thinly capitalised parent company sits atop robust, well-capitalised subsidiaries, acting merely as a pass-through vehicle.

As subsidiaries grow through retained earnings, balance sheet expansion, recapitalisation exercises, or the addition of new regulated businesses, their regulatory capital naturally increases. However, this growth does not automatically flow up to the holding company’s paid-up share capital. Unless the HoldCo raises fresh equity, a gap can gradually emerge between the capital held at the subsidiary level and the capital sitting at the parent company.

This is precisely the dynamic that GTCO encountered. Continued growth across its regulated subsidiaries increased the aggregate regulatory capital within the group, triggering the need for the HoldCo to top up its own paid-up share capital to remain compliant. Crucially, this requirement applies only to holding companies, not to standalone banks. That distinction explains why the transaction may have appeared idiosyncratic to some market observers.

GTCO’s experience is not unique. The same regulatory rule previously compelled Access Holdings Plc to undertake a private placement to align its holding company capital with the expanding capital bases of its subsidiaries. Over time, similar pressures could also emerge at other diversified financial groups such as Stanbic IBTC Holdings Plc or Sterling Financial Holdings Company Plc, particularly as their businesses grow and their regulated entities accumulate capital.

In essence, GTCO’s ₦10 billion private placement should be viewed as a mechanical outcome of regulatory discipline rather than a signal of distress. It reflects the natural consequence of business growth within a diversified financial group operating under Nigeria’s HoldCo framework. Far from indicating weakness, the capital raise underscores how regulatory oversight is keeping pace with expansion—ensuring that success at the subsidiary level is matched by adequate capital strength at the parent company.

NGX Group Drives Nigerian Capital Market to World-Beating 51.19% Rally in 2025

Nigeria’s capital market delivered one of its strongest performances in decades in 2025, with the Nigerian Exchange Group steering a rally that placed the country among the best-performing equity markets globally. Trading on Nigerian Exchange Limited, the operating exchange of Nigerian Exchange Group Plc, closed on December 31, 2025 with headline indicators reflecting robust investor confidence, improving macroeconomic fundamentals, and the impact of sustained market reforms.

At the centre of the rally was the NGX All-Share Index (ASI), which surged by 51.19% over the year to close at 155,613 points, up sharply from 102,926 points at the start of 2025. This exceptional performance translated into a massive expansion in equity market capitalisation, which grew by more than ₦36.6 trillion to ₦99.38 trillion by year-end. In absolute terms, this ranks as one of the largest increases recorded by any equity market worldwide in 2025.

Nigeria’s outperformance stood out clearly against global peers. While many developed and emerging markets struggled to deliver double-digit returns, most major equity indices ended the year with gains below 25%. Even the widely tracked MSCI All Country World Index, which captures performance across developed and emerging markets, rose by about 20% over the same period. Against this backdrop, Nigeria’s 51% rally drew renewed attention from international portfolio investors seeking exposure to high-growth frontier and emerging markets.

The strong market showing reflected a convergence of macroeconomic stabilisation and deliberate capital market reforms. Nigeria’s economy recorded steady growth throughout the year, with gross domestic product expanding by 3.13%, 4.23% and 3.98% in the first three quarters of 2025 respectively. Inflation, which had been a major headwind in previous periods, moderated significantly, falling to 14.45% in November 2025 from 34.60% a year earlier. The naira also showed signs of stabilisation, closing the year at ₦1,448.03 to the US dollar, compared with about ₦1,538 at the beginning of the year.

These improving fundamentals provided a more supportive environment for asset pricing and capital formation. NGX Group intensified engagement with policymakers, regulators, issuers, market operators and investors to ensure that macroeconomic gains translated into deeper liquidity, fairer valuations and broader participation across the market.

According to Temi Popoola, Group Managing Director and Chief Executive Officer of NGX Group, the 2025 performance underscored the importance of consistency in economic policy and sustained reforms. He noted that despite domestic and global economic headwinds, the Nigerian capital market demonstrated resilience, supported by purposeful reforms and strategic collaboration among stakeholders. Continued investment in technology and market infrastructure, he added, expanded access, enhanced transparency and improved operational efficiency.

Growth during the year was broad-based across asset classes. By December 31, 2025, equity market capitalisation stood at ₦99.38 trillion (approximately $68.74 billion), while the fixed income market reached ₦51.48 trillion ($35.61 billion). Exchange-traded funds (ETFs) recorded particularly strong momentum, with market capitalisation rising to ₦45.55 billion, reflecting growing investor sophistication and increased adoption of diversified investment products.

Trading activity also strengthened significantly. Year-to-date equities turnover climbed to ₦5.96 trillion, while average daily value traded rose to ₦23.76 billion. This increase was supported by rising share prices, resilient corporate earnings, recapitalisation efforts in the banking sector, new listings, and ongoing enhancements to market structure.

Beyond secondary market gains, capital formation remained a core focus. During 2025, the Exchange facilitated ₦6.49 trillion in capital raising by government and corporate issuers through a mix of equity and fixed income instruments. These funds played a critical role in financing infrastructure projects, supporting business expansion and improving fiscal sustainability.

Looking ahead, NGX Group says it will continue to deepen collaboration with regulators, issuers and policymakers, while accelerating investment in technology to sustain momentum and broaden access. With tax reforms and further market-friendly policies expected to unlock additional value, the Group aims to position Nigeria firmly as Africa’s preferred exchange hub and a key driver of long-term economic growth and wealth creation.

RMB Powers Strategic Energy Shift with US$285 Million Financing for BlueCore InfraCo, Accelerating Nigeria’s Gas Transition

Rand Merchant Bank (RMB) has successfully closed a landmark US$285 million acquisition financing that is set to play a transformative role in Nigeria’s gas and power infrastructure landscape. The financing supported BlueCore InfraCo Limited’s acquisition of Glover Gas & Power B.V., the holding company that owns Axxela Limited, one of Nigeria’s leading private gas and power distribution platforms. The deal represents a major step toward indigenous ownership of strategic energy assets while reinforcing Nigeria’s long-term gas commercialisation and decarbonisation agenda.

In the transaction, Rand Merchant Bank, a subsidiary of FirstRand Group, acted as Global Debt Coordinator, Mandated Lead Arranger, Underwriter, and Bookrunner. RMB not only structured and part-funded the US$285 million debt package but also delivered a bespoke financing solution that enabled the transaction to be completed within a compressed timeline. In addition, RMB served as exclusive sell-side adviser to Helios Investment Partners, the outgoing shareholder, ensuring a smooth and efficient transition of ownership.

The financing paved the way for BlueCore InfraCo Limited to acquire Glover Gas & Power B.V., the 100% owner of Axxela Limited. Axxela is widely regarded as Nigeria’s foremost private gas and power distribution platform, with extensive infrastructure supporting industrial and commercial customers across multiple states. By facilitating the acquisition, the transaction strengthens local participation in critical energy infrastructure and enhances Nigeria’s capacity to deliver reliable, cleaner energy to homes and industries.

According to RMB, the transaction highlights the bank’s ability to deploy its “One Bank” model and deep sector expertise to deliver integrated, high-impact financing solutions. The deal was executed amid a highly competitive bidding process involving more than 15 interested parties, underscoring both the attractiveness of the asset and RMB’s capability to deliver under demanding conditions.

Commenting on the transaction, Chidi Iwuchukwu, Head of Investment Banking, Africa at RMB, described it as a milestone that demonstrates how tailored financial solutions can unlock value while supporting national development goals. He noted that enabling indigenous ownership of gas and power assets is critical to accelerating Nigeria’s transition toward cleaner, more sustainable energy sources and reducing dependence on carbon-intensive fuels.

Francis Oputeh, Lead Transactor and Head of Leveraged Finance West Africa at RMB, added that the transaction reflects a strong partnership with BlueCore InfraCo and reinforces RMB’s leadership in structuring complex, multi-stakeholder transactions across Africa. According to him, the deal illustrates RMB’s role not just as a financier, but as a trusted adviser capable of delivering impact beyond capital provision.

From BlueCore’s perspective, the acquisition represents a defining moment in its mission to strengthen Nigeria’s energy infrastructure through local ownership and long-term investment. Eric Idiahi of BlueCore InfraCo stated that partnering with RMB made it possible to secure a financing structure aligned with the group’s strategic objectives. With Axxela now under BlueCore’s ownership, the platform is expected to scale gas commercialisation efforts, improve energy reliability, and support sustainable industrial growth across Nigeria.

Beyond corporate strategy, the transaction aligns closely with Nigeria’s broader energy policy objectives. Gas is widely recognised as a transition fuel that can support economic growth while lowering emissions compared to diesel and other high-carbon alternatives. By expanding gas distribution infrastructure and reducing gas flaring, the acquisition supports national decarbonisation goals and contributes to energy security at a time when reliable power remains a critical constraint to industrial development.

RMB noted that the deal also demonstrates Africa’s growing capacity to finance large, sophisticated energy transactions locally, reinforcing confidence in indigenous capital and expertise. As Nigeria continues to reposition gas as a cornerstone of its energy mix, transactions of this scale are expected to play an increasingly important role in unlocking infrastructure investment and driving sustainable growth.

Overall, the US$285 million financing arranged by RMB for BlueCore InfraCo stands as a significant milestone in Nigeria’s energy transition. It strengthens local ownership of strategic assets, accelerates gas infrastructure development, and underscores the role of innovative African financial institutions in shaping the continent’s energy future.

Presco Plc Rights Issue Records 103% Subscription, Signals Strong Investor Confidence and Growth Outlook

Presco Plc has announced the successful completion of its recently concluded Rights Issue, which achieved an impressive 103% subscription rate, underscoring robust investor confidence in the company’s fundamentals, strategy, and long-term growth prospects. The oversubscription reflects strong participation from existing shareholders who not only took up their rights in full but also applied for additional shares, pushing demand beyond the size of the offer.

The outcome positions Presco Plc as one of the notable success stories in Nigeria’s capital market at a time when liquidity conditions remain tight and investors are increasingly selective. In a cautious environment characterised by rising interest rates, competition from fixed-income instruments, and heightened risk aversion, the ability of Presco Plc to attract demand in excess of its offer size highlights the depth of confidence the company continues to command among institutional investors, pension fund administrators, and retail shareholders.

Market analysts note that oversubscribed rights issues are becoming less common in the current cycle, making Presco’s result particularly significant. It signals that shareholders are convinced about the company’s earnings resilience, operational efficiency, and capacity to deploy new capital profitably. The strong response also suggests confidence in management’s execution track record and governance framework, which have been critical in sustaining performance across volatile market conditions.

Beyond the headline subscription figure, the Rights Issue represents a strategic strengthening of Presco Plc’s balance sheet. The additional capital provides the company with greater financial flexibility to support expansion initiatives, optimise its capital structure, and deepen investments across its integrated value chain. As a fully integrated edible oils and fats company, Presco operates across oil palm cultivation, milling, refining, and the production of specialty fats and oils, giving it a level of operational control and cost efficiency that few peers can match.

The successful capital raise further reinforces Presco’s ability to pursue disciplined growth while maintaining financial stability. With rising demand for edible oils and related products across Nigeria and the wider West African region, the strengthened balance sheet positions the company to scale production capacity, improve yields, and invest in efficiency-enhancing technologies without overleveraging.

Market participants have also interpreted the oversubscription as a vote of confidence in Presco’s long-term vision and sustainability focus. The company has consistently emphasised value creation through responsible agricultural practices, efficient processing, and regional expansion, supported by its subsidiaries, including Ghana Oil Palm Development Company Limited (GOPDC) and Siat Nigeria Limited. These assets extend Presco’s footprint beyond Nigeria and enhance its leadership position across the West African edible oils market.

The strong investor response to Presco’s Rights Issue comes against the backdrop of renewed activity and confidence in Nigeria’s corporate and capital markets, evidenced by major transactions across sectors. Recent developments in the energy space, such as the acquisition by Heirs Energies of a significant equity stake in Seplat Energy Plc, have highlighted growing capacity for large-scale African-led financing and investment. Within this broader context, Presco’s oversubscribed offer reinforces the narrative that well-governed Nigerian companies with clear strategies can still attract strong capital market support.

Overall, the 103% subscription of Presco Plc’s Rights Issue stands as a clear endorsement of the company’s strategy, execution capability, and governance standards. It reflects not only confidence in its current financial performance but also belief in its ability to deliver sustainable long-term value for shareholders. As Presco moves forward with a strengthened capital base, the company appears well positioned to deepen its market leadership, support regional food supply chains, and drive profitable growth in the years ahead.

Otedola Urges N1 Trillion Bank Capital Base as FirstBank Completes N500 Billion Capital Raise

Billionaire investor and Chairman of First HoldCo Plc, Femi Otedola, has called on Nigerian regulators to raise the minimum capital requirement for banks with international licences to at least N1 trillion, arguing that stronger capital buffers are essential for building a resilient financial system capable of supporting a $1 trillion economy.

Otedola made the call while reacting to recent reforms in Nigeria’s financial and economic landscape, shortly after FirstBank, the commercial banking subsidiary of First HoldCo Plc, completed a N500 billion capital raise to meet the current minimum requirement set by the Central Bank of Nigeria (CBN) for international banking operations.

Reflecting on more than three decades of investing and business leadership, Otedola said he rarely comments publicly on policy matters, but stressed that Nigeria is at a defining moment where decisive leadership deserves recognition. He praised Bola Ahmed Tinubu for what he described as courage and clarity in implementing difficult but necessary economic reforms.

According to Otedola, President Tinubu’s policies are rooted in a deep understanding of Nigeria’s economic structure and have begun to lay the foundation for sustainable growth. He noted that while reforms often come with short-term pain, the long-term benefits are now becoming evident, both domestically and in the way global investors perceive Nigeria’s economy.

In the same vein, Otedola commended the performance of the CBN Governor, Yemi Cardoso, describing his leadership as exceptional. He attributed the recent slowdown in inflation to the CBN’s disciplined return to orthodox monetary policy, arguing that policy consistency, rather than ad-hoc interventions, is critical to restoring macroeconomic stability.

Otedola also highlighted reforms in the foreign exchange market, noting that the strengthening of the naira is increasingly being driven by market fundamentals rather than artificial controls. He said this shift has restored confidence that had been missing for years, adding that the rise in Nigeria’s external reserves to a seven-year high above $46 billion underscores the credibility of current monetary management.

Turning to the banking sector, Otedola said the ongoing recapitalisation exercise is one of the most important reforms undertaken in recent years. While the move initially attracted criticism, he argued that the strong profits recorded by banks in 2024 and the consolidation seen in 2025 have validated the policy. In his view, higher capital thresholds will enable banks to lend more effectively to the real sector, strengthen governance structures, and reduce the dominance of weakly capitalised institutions.

From this perspective, Otedola said the current N500 billion minimum capital requirement for international banking licences should be seen as a stepping stone rather than an endpoint. He called for an increase to at least N1 trillion, stressing that an economy aspiring to reach the $1 trillion mark cannot rely on undercapitalised banks. Stronger banks, he said, would mean broader ownership, better risk management, and institutions that are run as enduring enterprises rather than personal estates.

Within this context, FirstBank’s successful completion of its N500 billion capital raise represents a key milestone. The bank has now met the CBN’s existing capital requirement for international operations, reinforcing its position as one of Nigeria’s systemically important financial institutions. Otedola noted that shareholders of First HoldCo Plc remain committed to injecting additional capital, not only into FirstBank but also into other subsidiaries and new business adjacencies as growth opportunities emerge.

Concluding his remarks, Otedola described Yemi Cardoso as the best Central Bank Governor Nigeria has produced, citing his calm leadership style, discipline, and focus on long-term stability over short-term popularity. He expressed confidence that Nigeria is turning a corner and pledged continued support from long-term investors for monetary and financial sector reforms that are laying a stronger foundation for sustainable economic growth.

Overall, Otedola’s comments underscore growing support among leading business figures for deeper banking sector reforms, particularly higher capital requirements, as Nigeria seeks to build a more robust financial system capable of supporting long-term development ambitions.

Nigeria’s Money Supply Rises to N122.95 Trillion in November 2025 as Liquidity Expands Despite Tight Policy

Nigeria’s broad money supply (M3) rose sharply to N122.95 trillion in November 2025, up from N119.04 trillion in October, underscoring a continued expansion in system liquidity even as monetary authorities maintain a broadly tight policy stance. The latest figures, released by the Central Bank of Nigeria (CBN), point to accommodative liquidity conditions in the banking system amid elevated interest rates and ongoing efforts to tame inflation and stabilise the exchange rate.

On a month-on-month basis, M3 expanded by N3.91 trillion, while year-on-year growth remained robust, rising from N108.97 trillion recorded in November 2024. This sustained increase suggests that liquidity is being injected into the economy through multiple channels, raising important policy questions about how the apex bank balances growth-supportive liquidity with macroeconomic stability.

A closer look at the data shows that the rise in money supply was driven by increases in both net domestic assets (NDA) and net foreign assets (NFA). Net domestic assets climbed to N85.57 trillion in November from N84.23 trillion in October, reflecting higher claims by the banking sector on the government and the private sector. This trend is often associated with increased government borrowing, rising credit to businesses and households, or portfolio rebalancing by banks toward domestic assets in search of yield.

Net foreign assets recorded an even more striking improvement, rising to N37.38 trillion in November from N34.80 trillion in October. Compared with November 2024, when NFA stood at N17.35 trillion, the figure has more than doubled. This sharp year-on-year increase points to stronger foreign exchange inflows, improved external sector conditions, and relatively healthier reserve buffers. Together, the expansion in NDA and NFA suggests that liquidity growth in Nigeria is being fuelled by both internal credit dynamics and improved external positioning.

Other monetary aggregates followed a similar upward trajectory. Broad money measured by M2 increased marginally to N122.94 trillion in November from N119.03 trillion in October, while narrow money (M1) rose to N40.53 trillion from N39.35 trillion. The growth in M1, which captures currency in circulation and demand deposits, indicates higher transactional balances in the economy and potentially stronger short-term economic activity.

The backdrop to these developments is a series of monetary policy adjustments by the CBN in the second half of 2025. In September, the Monetary Policy Committee cut the Monetary Policy Rate (MPR) by 50 basis points to 27%, citing easing inflationary pressures and relatively improved foreign exchange conditions. However, at its November meeting, the Monetary Policy Committee opted to hold the MPR steady at 27%, signalling a more cautious approach as liquidity conditions continued to loosen.

By holding rates despite rising money supply, the CBN appears to be walking a tightrope. On one hand, expanding liquidity supports credit growth, business activity, and overall economic recovery. On the other, excessive liquidity can undermine disinflation efforts and reignite pressure on the naira if not carefully sterilised. Sustained growth in NDA, particularly from government borrowing, also raises concerns about fiscal dominance and its implications for price stability.

At the same time, the sharp improvement in net foreign assets provides some comfort. Stronger external inflows and better reserve positions can help cushion the economy against external shocks, support exchange rate stability, and give the central bank more room to manage liquidity through market operations. However, if foreign inflows are not effectively absorbed, they can further add to domestic liquidity and complicate monetary management.

What this ultimately means is that Nigeria’s monetary environment remains delicately balanced. The simultaneous rise in domestic and foreign assets highlights a liquidity expansion that supports economic activity but also increases macroeconomic risks. By maintaining a tight policy stance in November, the CBN is signalling its intention to prevent rapid money supply growth from eroding recent gains in inflation moderation and exchange rate stability.

Going forward, the effectiveness of liquidity management tools—such as open market operations, cash reserve requirements, and foreign exchange interventions—will be critical. As money supply continues to expand, investors, businesses, and policymakers will be watching closely to see whether the CBN can sustain growth-supportive liquidity without compromising price stability in 2026.

Best Performing Banking Stocks in Nigeria in 2025: Winners, Laggards, and What Drove Investor Returns

Nigeria’s banking equities delivered a mixed but largely positive performance in 2025, reflecting a year of selective investor confidence rather than broad-based sector optimism. According to year-end market data from the Nigerian Exchange, the NGX Banking Index closed 2025 with a gain of 39.77%, trailing the broader Nigerian Exchange (NGX) All-Share Index (ASI), which posted a stronger 51.19% return.

While the banking sector underperformed the overall market, the results still marked a significant recovery from prior years of subdued sentiment. Investors increasingly differentiated between banks based on balance sheet strength, earnings sustainability, capital adequacy, and strategic execution. Out of the 12 listed banking stocks on the Exchange, only a handful managed to outperform the broader market benchmark, underscoring the highly selective nature of capital flows into the sector.

At the top of the leaderboard was Wema Bank Plc, which emerged as the standout performer with a remarkable gain of 124.18% in 2025. The bank’s share price climbed from N9.10 at the start of the year to N20.40 by year-end, driven by growing investor confidence in its digital banking strategy, expanding retail footprint, and improving profitability metrics. July proved decisive for Wema Bank, with a single-month surge of over 47%, reflecting peak investor enthusiasm.

Other strong performers included Stanbic IBTC Holdings Plc, which returned 73.61% as its share price rose from N57.60 to N100.00. Investors were drawn to Stanbic IBTC’s diversified earnings base spanning commercial banking, asset management, and pensions, as well as its consistent dividend track record. Mid-year rallies reflected renewed appetite for fundamentally strong and well-governed financial institutions.

First HoldCo Plc also delivered an impressive 70.77% return, climbing from N28.05 to N47.90. The rally was largely concentrated in December, when the stock surged over 54%, driven by renewed confidence in its restructuring efforts, capital position, and medium-term earnings outlook.

Among tier-one banks, Guaranty Trust Holding Company Plc (GTCO) gained 59.12%, closing the year at N90.70. Investors continued to favour GTCO for its strong capital buffers, predictable cash flows, and disciplined cost management. Similarly, Zenith Bank Plc posted a solid 35.82% gain, rising from N45.50 to N61.80, reinforcing its reputation for earnings consistency, robust liquidity, and dependable dividend payouts.

Mid-tier banks also featured prominently among the year’s winners. Ecobank Transnational Incorporated advanced by 49.64%, supported by diversified pan-African revenues and ongoing improvements in operational efficiency. Jaiz Bank Plc gained 51.67%, reflecting growing acceptance of its non-interest banking model, alongside speculative momentum in the second half of the year. FCMB Group Plc and Sterling Financial Holding Company Plc also delivered respectable gains of 28.19% and 25.89%, respectively, driven by retail-led growth strategies and improving asset quality.

Notably absent from the list of top performers were Fidelity Bank Plc, which posted a modest gain of 8.57%, and Access Holdings Plc, which ended the year with an 11.95% decline. Investor caution around integration risks, capital requirements, and earnings pressures weighed on both stocks.

Why this matters is that 2025 marked a clear shift in investor behaviour toward selective exposure rather than blanket sector positioning. Banking stocks that outperformed were those perceived as better equipped to navigate foreign exchange volatility, rising funding costs, and regulatory headwinds. The divergence between the NGX Banking Index and the broader ASI highlights cautious optimism—confidence is returning, but investors remain highly discriminating.

Looking ahead, banking equities are expected to remain among the most actively traded stocks on the NGX due to their dividend appeal and systemic importance. Performance in 2026 will likely depend on interest rate dynamics, FX stability, regulatory reforms, and each bank’s ability to sustain earnings momentum in an evolving macroeconomic environment.

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Month: January 2026