January 2026 – Page 4

NGX Money Market Mutual Funds Record Strong Asset Growth in 2025 as Investors Weigh Outlook for 2026

Nigeria’s money market mutual fund (MMMF) sector recorded remarkable growth in 2025, driven by increased investor participation and a strong preference for low-risk investment instruments. Despite softer average yields compared to the previous year, the sector expanded significantly in terms of assets under management, reflecting heightened confidence in money market funds as a stable investment option amid economic uncertainty.

Data from regulatory valuation reports covering January and December 2025 show that the net asset value (NAV) of NGX-listed money market mutual funds surged by 182%, rising from N1.68 trillion in 2024 to N4.74 trillion in 2025. This sharp increase highlights the growing appeal of money market funds to investors seeking capital preservation, liquidity, and relatively predictable returns.

Investor participation also rose substantially during the year. The number of unit holders increased from 353,940 in 2024 to 597,901 in 2025, signaling broader adoption of money market funds among retail and institutional investors alike. The trend suggests a shift toward conservative investment strategies, particularly as volatility in equities and longer-term fixed-income instruments continued to influence portfolio decisions.

Yield Compression Despite Asset Expansion

While asset growth was strong, average yields across money market funds declined during the year. The average yield fell from 21.24% in 2024 to 17.19% in 2025, reflecting changes in Nigeria’s monetary environment. This moderation in yields was largely influenced by adjustments in interest rate conditions and liquidity management policies, which affected returns on short-term instruments such as Treasury bills and commercial papers.

The combination of rising NAV and lower yields indicates that investors prioritized safety and liquidity over maximising short-term returns. For many investors, money market funds served as a defensive allocation, offering protection against market volatility while still delivering returns that remained competitive relative to inflation for most of the year.

Understanding Money Market Mutual Funds

Money market mutual funds are collective investment schemes that invest primarily in short-term, high-quality debt instruments such as Treasury bills, certificates of deposit, bankers’ acceptances, and commercial papers. These funds are designed to preserve capital while generating modest income, making them attractive to conservative investors and those seeking quick access to funds.

A key feature of money market funds is that the principal invested remains stable, while returns fluctuate based on prevailing interest rates and market conditions. For example, an investor placing N5 million in a money market fund retains the full principal amount, but the interest earned may rise or fall depending on movements in Treasury bill rates, open market operation yields, and bank placement rates.

This structure explains why yields softened in 2025 even as assets grew. Declines in stop rates at government securities auctions translated into lower income generation for fund managers, despite higher inflows into the funds.

Market Concentration and Fund Performance

As of December 2025, money market mutual funds accounted for more than 62% of total mutual fund assets in Nigeria, underlining their dominant position within the collective investment space. The sector remains highly concentrated, with leading asset managers controlling over 80% of total NAV.

Stanbic IBTC Money Market Fund emerged as the largest player, managing approximately N2.3 trillion, or nearly 49% of the total sector NAV, with a yield of 16.14%. Other major managers, including First Asset Management, ARM Investment Managers, Guaranty Trust Managers, and United Capital Asset Management, continued to hold significant market share.

Smaller funds also demonstrated competitive performance. The RT Briscoe Savings and Investment Fund recorded the highest year-to-date yield of 24%, although its NAV remained relatively small at N72 million, with a limited number of unit holders. This contrast highlights the importance of balancing fund size, liquidity, and yield when selecting an investment.

Outlook for 2026

Looking ahead, the performance of money market mutual funds in 2026 will depend largely on macroeconomic conditions, regulatory changes, and shifts in monetary policy. Movements in the Central Bank’s Monetary Policy Rate will play a critical role in shaping yields, as changes in benchmark rates directly affect returns on short-term instruments.

New regulatory requirements are also expected to influence the sector. Revised capital requirements for portfolio managers will raise the entry threshold, potentially strengthening industry stability while increasing compliance demands. Larger fund managers are well-positioned to meet these requirements, while smaller firms may need to adjust their operational strategies.

Despite potential yield fluctuations, money market funds are expected to remain a core component of investor portfolios in 2026. Their combination of capital security, liquidity, and steady income continues to make them a preferred option for investors navigating an evolving financial landscape.

As economic conditions unfold, informed investors who monitor interest rate trends, regulatory developments, and fund fundamentals will be better positioned to maximise returns while preserving capital in the year ahead.

Currency Outside Nigeria’s Banking System Hits Record N5.4 Trillion at End of 2025

Nigeria’s currency held outside the formal banking system rose to an all-time high of N5.4 trillion by the end of 2025, highlighting a significant increase in the volume of physical cash retained by individuals and businesses across the country. The latest figures underscore a growing reliance on cash, despite long-standing policy efforts aimed at promoting digital payments and reducing the economy’s dependence on physical currency.

The data, released as part of the Central Bank of Nigeria’s (CBN) money supply statistics, provides insight into liquidity conditions and cash usage patterns within the economy. The sharp rise in currency outside banks occurred alongside a broader expansion in money supply, with total money supply closing the year at approximately N124.4 trillion. This combination has raised fresh questions about the effectiveness and pace of Nigeria’s transition toward a cashless economy.

Currency in circulation also reached a historic high of N5.7 trillion in December 2025, indicating that only a relatively small portion of total cash remained within commercial bank vaults. The figures suggest that a significant share of naira notes continues to circulate directly among households, traders, and businesses rather than being held in deposit accounts.

What the Data Shows

Currency outside banks represents physical cash that is not deposited within the formal banking system. As of December 2025, this figure stood at N5.4 trillion, the highest level ever recorded. This surpassed the previous record of N5.125 trillion observed in December 2024.

While currency outside banks typically rises toward the end of each year due to increased spending during the festive season, the scale of the increase in 2025 was particularly notable. Throughout the year, currency outside banks averaged about N4.5 trillion, before accelerating sharply in the final months and crossing the N5 trillion threshold.

Total currency in circulation followed a similar trajectory, climbing steadily and closing the year at N5.7 trillion. The sustained growth in physical cash usage appears to contrast with the CBN’s long-standing objective of reducing cash transactions through digital payment systems, electronic transfers, and financial technology platforms.

Although the current CBN leadership continues to support digital financial inclusion, recent monetary policy actions suggest a greater reliance on orthodox tools—such as interest rate adjustments and liquidity management—rather than direct restrictions on cash availability.

Policy Context and Historical Background

The current rise in currency outside the banking system marks a significant shift from the approach adopted by the previous CBN leadership. In the period leading up to Nigeria’s 2023 general elections, the central bank pursued an aggressive strategy to limit cash availability, culminating in one of the sharpest contractions in currency circulation in recent history.

In January 2023, currency outside banks fell to a record low of N792.1 billion following the introduction of the naira redesign policy. The initiative significantly restricted access to physical cash, triggering widespread economic disruption, supply chain challenges, and public dissatisfaction. Although the policy was officially framed as a measure to improve monetary control and curb illicit financial activities, many observers believed it was also intended to limit the use of cash during the election period—an allegation the CBN denied.

Since the appointment of the current CBN Governor, Yemi Cardoso, the Bank has recalibrated its approach. Policy focus has shifted toward stabilising prices, strengthening the currency, and restoring confidence in the financial system, while allowing cash to circulate more freely alongside digital payment options.

Implications for the Financial System

The increased availability of cash outside the banking system has contributed to the rapid expansion of Nigeria’s agency banking network, particularly Point-of-Sale (PoS) operations. Access to cash has become a major source of income for thousands of PoS operators nationwide, especially in areas with limited bank branch coverage.

However, rising demand for cash services has also driven up operating costs. The price of PoS terminals has increased significantly between 2023 and 2025, influenced by inflation, foreign exchange pressures, and higher logistics expenses. Entry-level terminals that once sold for N15,000 to N20,000 now cost around N21,500, while more advanced smart devices have more than doubled in price.

At the same time, the CBN has tightened regulatory oversight of agent banking activities. New rules require geo-tagging of PoS terminals and impose penalties starting from N5 million, with additional daily fines for continued non-compliance. These measures reflect growing efforts to formalise and monitor cash distribution channels, even as physical cash remains deeply embedded in Nigeria’s economic activity.

Overall, the record level of currency outside banks highlights the complex balance Nigeria faces between promoting digital finance, ensuring liquidity, and maintaining monetary stability in an economy where cash continues to play a central role.

Nigerian Financial Market Liquidity Rises to N2.78 Trillion Despite Central Bank Tightening

Liquidity conditions in Nigeria’s financial markets strengthened significantly in the third week of January 2026, even as the Central Bank of Nigeria (CBN) intensified efforts to withdraw excess funds from the banking system. Data from market analysts show that average system liquidity climbed to N2.78 trillion as of Friday, January 23, 2026, representing a 31.75% increase compared to the N2.11 trillion recorded the previous week.
Analysts at Cowry Assets Management Limited attributed the sharp rise in liquidity to substantial maturity inflows and sustained investor participation across money market instruments. This expansion occurred despite aggressive monetary operations by the CBN aimed at tightening financial conditions and curbing surplus liquidity.
According to the analysts, the primary driver of the liquidity surge was the repayment of approximately N2.2 trillion in Nigerian Treasury Bills (NTB) maturities during the week. These inflows outweighed significant liquidity debits arising from both Treasury Bills auctions and Open Market Operations (OMO) settlements conducted by the central bank.
Specifically, liquidity was reduced by about N1.06 trillion from NTB auction sales held midweek, alongside an additional N1.3 trillion debited through OMO bill settlements earlier in the week. Despite these sizable withdrawals, the volume of maturing instruments ensured that the overall system liquidity remained elevated.
Market data further revealed that the CBN conducted multiple liquidity mop-up operations, withdrawing over N3 trillion through two separate auctions. However, the scale of inflows from maturing instruments proved sufficient to offset the tightening measures, allowing excess liquidity to persist within the financial system.
Interest Rates and Money Market Conditions
The central bank’s tightening stance translated into upward pressure on money market rates. Interbank Offered Rates (NIBOR) rose across all tenors, reflecting the costlier funding environment faced by financial institutions.
The overnight NIBOR increased by 2 basis points to 22.84% by the close of the week, while the one-month, three-month, and six-month tenors also recorded moderate increases. Funding conditions remained tight, with the overnight funding rate rising by 10 basis points to 22.79%, while the Open Repo Rate remained unchanged at 22.50%.
Similarly, Nigerian Treasury Index (NITTY) yields trended higher across most maturities. While the one-month NITTY declined slightly by 6 basis points to 16.64%, longer tenors recorded increases, with yields reaching 16.69% for three months, 17.88% for six months, 19.33% for nine months, and 21.18% for twelve months.
Treasury Bills Market Activity
Activity in the Treasury Bills market reflected a cautious investor sentiment, as rising yields triggered selective sell-offs in the secondary market. Average secondary market yields increased by 37 basis points week-on-week to 18.50%, indicating a bearish trading tone.
At the primary market auction, the CBN offered N1.15 trillion in Treasury Bills, attracting strong investor interest with total subscriptions of approximately N3.4 trillion. Nearly 98% of bids were concentrated in the 364-day tenor, highlighting investor preference for longer-dated instruments amid expectations of sustained high yields.
The central bank allotted about N1.1 trillion, with stop rates on the 91-day and 182-day bills rising to 15.84% and 15.65%, respectively. In contrast, the 364-day bill eased marginally to 18.36%, reflecting slight moderation at the long end of the curve.
Earlier in the week, the CBN also conducted an OMO auction, offering N600 billion across the 203-day and 245-day tenors. The auction attracted robust demand, with subscriptions totaling N2.9 trillion, resulting in N2.6 trillion in allotments. Stop rates settled at 19.38% for the 203-day bill and 19.39% for the 245-day bill.
Outlook for the Coming Week
Analysts expect system liquidity to remain positive in the near term, supported by an estimated N900 billion in OMO maturities and anticipated inflows from the Federation Accounts Allocation Committee (FAAC). However, upcoming liquidity pressures could limit the pace of rate moderation.
Notably, a planned N900 billion Federal Government of Nigeria bond auction scheduled for January 26, alongside repayments exceeding N900 billion, may partially offset inflows and keep funding rates elevated.
Cowry Assets noted that while liquidity conditions are expected to remain supportive, funding costs may stay above recent averages as investors position ahead of full-year 2025 earnings releases and navigate evolving monetary conditions.
Overall, the latest data underscores the complex balance facing Nigeria’s monetary authorities, as liquidity continues to expand despite tightening measures, reflecting deeper structural dynamics within the financial system and the broader economy.

LivingTrust Mortgage Bank Records N1.01 Billion Profit in 2025 Financial Year

LivingTrust Mortgage Bank Plc has delivered a strong financial performance for the year ended December 31, 2025, posting a profit after tax of N1.01 billion, representing an 18.3% increase compared to the N854.5 million recorded in the previous year.

The bank’s unaudited financial statements indicate robust growth in revenue and core income lines, supported by an expanding loan portfolio and improved interest earnings, even as operating expenses and credit impairment charges increased during the period.

Strong revenue expansion drives earnings growth

LivingTrust’s gross earnings surged by 74.9% year-on-year to N6.52 billion, up sharply from N3.73 billion in 2024. This significant expansion reflects the bank’s strategic focus on scaling its mortgage and term loan offerings, which remain the primary drivers of income.

Interest income rose to N4.49 billion, marking a 55% increase from the prior year. The improvement was largely attributed to higher volumes of interest-earning assets, particularly mortgage loans and structured term facilities. This growth underscores the bank’s ability to deepen its presence in Nigeria’s housing finance market despite broader economic pressures.

Net interest income also recorded a notable increase, more than doubling to N766.94 million in 2025, compared with N357.87 million in 2024. The 114% jump highlights improved asset yields and effective balance sheet deployment, reinforcing the bank’s core profitability.

Credit provisioning rises amid loan book expansion

As the loan portfolio expanded, impairment losses increased to N2.72 million, up from N692,047 in the previous year. While the absolute value of impairment charges remains modest, the rise reflects a more cautious provisioning stance in response to growing credit exposure.

Total loans and advances grew by 21.7% to N17.08 billion, an increase of over N3 billion year-on-year. The higher impairment charges are viewed as a prudent measure to mitigate potential credit risks associated with rapid portfolio growth, particularly in the mortgage and term loan segments.

Although asset quality remains stable, management will need to maintain close oversight as lending activities continue to scale, especially in an environment marked by elevated interest rates and household income pressures.

Profitability sustained despite rising costs

Operating expenses rose by 18.9% to N1.71 billion, driven mainly by higher personnel costs, depreciation, and amortisation expenses associated with business expansion. Despite these cost pressures, LivingTrust successfully translated its revenue growth into higher bottom-line performance.

The combination of rising income and controlled cost growth enabled the bank to improve profitability, with the profit after tax margin remaining resilient. This reflects disciplined cost management and operational efficiency across its core banking activities.

Balance sheet growth strengthens financial position

LivingTrust’s balance sheet expanded significantly in 2025, with total assets increasing by 36.3% to N32.74 billion, up from N24.05 billion in the prior year. The growth was driven primarily by higher loans and advances, alongside a substantial increase in balances due from banks, which more than doubled to N12.02 billion.

Shareholders’ equity remained stable at N5.05 billion, supported by retained earnings. The stable equity base, combined with strong asset growth, provides a solid foundation for further expansion, although efficient capital management will be critical as the bank scales its operations.

Market performance and investor sentiment

LivingTrust’s stock performance reflects renewed investor confidence following the release of its 2025 financial results. While the stock closed 2025 at N3.45, representing a 21% year-to-date decline, momentum has shifted positively in 2026.

The stock has gained 55.4% year-to-date, and following the publication of the unaudited results, it recorded a 9.8% intraday gain, closing at N5.36, up from N4.88. The strong price reaction suggests that investors are responding positively to the bank’s earnings growth and balance sheet expansion.

Dividend outlook and future prospects

With earnings per share growing by 18.3%, market participants are increasingly optimistic about the possibility of a higher dividend payout. LivingTrust has a history of progressively rewarding shareholders, having increased its dividend to 8 kobo in 2024, up from 3 kobo in 2023.

Looking ahead to 2026, the bank appears well-positioned for continued growth, supported by its expanding mortgage portfolio and improving income profile. Key priorities will include maintaining asset quality, enhancing cost efficiency, and addressing structural issues such as free float levels over the medium term.

If effectively managed, LivingTrust Mortgage Bank is likely to sustain its strong momentum and further strengthen its position within Nigeria’s mortgage banking sector.

TikTok Star Khaby Lame Secures $900 Million Commercial Acquisition Deal

Khaby Lame, the world’s most-followed TikTok creator, has entered into a landmark commercial transaction valued at approximately $900 million, marking one of the largest monetisation deals ever recorded in the global creator economy.

The deal involves the partial sale of Step Distinctive Limited, the company that manages Khaby Lame’s commercial activities, and represents a major shift in how large-scale digital influence is being converted into structured, long-term business value. The transaction was disclosed by Rich Sparkle Holdings, a publicly listed U.S. company, which confirmed the completion of the acquisition alongside a broader strategic partnership tied to Lame’s global brand.

Under the agreement, Rich Sparkle, through its operating partners, will hold exclusive rights to Khaby Lame’s global commercial operations for an initial period of 36 months. These rights cover a wide range of revenue streams, including brand endorsements, advertising partnerships, merchandise, and e-commerce ventures linked to the creator’s image and intellectual property.

Strategic shift from endorsements to equity

Beyond the headline valuation, the structure of the deal highlights a deeper transformation in the creator economy. As part of the transaction, Khaby Lame will become a controlling shareholder in Rich Sparkle Holdings, positioning him not just as a brand ambassador or influencer, but as an equity participant with a direct stake in the company’s long-term performance.

According to Rich Sparkle, the partnership is designed to move away from fragmented, one-off endorsement deals toward a centralised, platform-driven commercial model. By integrating traffic generation, supply chain management, fulfilment, and technology, the company estimates that the combined business could generate more than $4 billion in annual sales once fully operational.

The rollout of the commercial model will initially focus on key international markets, including the United States, the Middle East, and Southeast Asia, with full implementation expected over the next three years. Execution of the strategy will be carried out in collaboration with Anhui Xiaoheiyang Network Technology Co. Ltd., a China-based content commerce operator with experience in large-scale digital retail operations.

Expanding the boundaries of content commerce

Rich Sparkle described the acquisition as a fundamental reimagining of global content monetisation. The company believes that combining a publicly listed corporate platform, a globally recognised digital personality, and an industrial-scale e-commerce supply chain will create a new benchmark for how creator-led businesses are built and scaled.

A key element of the strategy includes the development of an AI-powered digital twin authorised by Khaby Lame. This technology will replicate aspects of his facial expressions, voice patterns, and behavioural cues within a regulated framework. The digital twin is expected to support multilingual content production, virtual livestreaming, and continuous engagement across time zones, significantly expanding output without the constraints of physical scheduling.

In addition to mass-market e-commerce, the partnership also plans to pursue premium brand collaborations and co-branded intellectual property, particularly in sectors such as beauty, fragrance, fashion, and lifestyle products. These initiatives are intended to position Lame’s brand not only as a viral phenomenon but as a durable consumer-facing enterprise.

The rise of a global digital icon

Khaby Lame’s rise to global prominence is one of the most distinctive success stories in the social media era. Born in Senegal and raised in Italy, he gained worldwide recognition through short, silent videos that humorously critique overly complicated life hacks. His minimalist, wordless style has allowed his content to transcend language and cultural barriers, making it accessible to audiences across the globe.

Today, Khaby Lame commands an estimated 360 million followers across social media platforms, placing him among the most influential digital creators in the world. His reach, combined with a carefully managed brand image, has made him a highly attractive partner for global businesses seeking scale and authenticity.

A signal moment for the creator economy

The $900 million valuation attached to this deal underscores the growing institutional interest in the creator economy and highlights how top-tier digital creators are increasingly being treated as full-scale business assets rather than marketing channels.

For industry observers, the transaction signals a maturing market in which influence, data, and audience trust are being systematically converted into long-term commercial infrastructure. As creators continue to build global followings, deals of this nature may become a defining feature of the next phase of digital media and e-commerce convergence.

Appeal Court Disqualifies Nestoil’s Legal Team in $2 Billion Debt Dispute

The Court of Appeal sitting in Lagos has disqualified Chief Wole Olanipekun, SAN, and Dr. Muiz Banire, SAN from representing Nestoil Limited and Neconde Energy Limited in the companies’ ongoing $2 billion debt dispute with a consortium of lenders.

The ruling was delivered on Friday, January 23, 2026, by a panel of justices of the Court of Appeal and was confirmed by sources within the Nestoil legal team. In a significant procedural move, the appellate court also struck out all legal processes filed by the law firms of the two senior advocates on behalf of the affected companies.

The decision represents a major shift in the long-running receivership battle between Nestoil and its creditors, many of which are Nigerian banks.

In its ruling, the Court of Appeal clarified the legal implications of receivership on corporate governance and legal representation. The court held that once a company enters receivership, the powers of its board of directors are suspended, including the authority to appoint or retain legal counsel in matters connected to the receivership.

On this basis, the court granted the application to disqualify Dr. Muiz Banire, SAN, and Chief Wole Olanipekun, SAN, from appearing for Nestoil Limited and Neconde Energy Limited, respectively. All filings and applications previously submitted by their law firms in the matter were consequently struck out.

The court also noted that Nestoil’s alleged indebtedness of about $2 billion is substantial, reportedly exceeding the minimum capital requirement of at least four Nigerian banks with international licences, underscoring the scale and systemic importance of the dispute.

The legal conflict between Nestoil and its lenders has unfolded across multiple courts over several months. In November, Nestoil initiated proceedings at the Federal High Court in Abuja against eight Nigerian banks and the African Export-Import Bank (Afreximbank), seeking to restrain them from enforcing receivership proceedings following a Notice of Default.

At that hearing, legal teams representing both sides—including Access Bank, FBNQuest Merchant Bank Limited, and Afreximbank—appeared before Justice Mohammed Umar. While the lenders maintained that the receivership was lawfully triggered due to Nestoil’s failure to meet its debt obligations, the company challenged the process and sought injunctive relief.

Earlier developments escalated tensions when armed officers of the Nigeria Police Force sealed Nestoil’s headquarters in Victoria Island, Lagos, following a Federal High Court order freezing the company’s assets, bank accounts, and shares. That order was linked to an alleged $1.01 billion and N430 billion debt owed to FBNQuest Merchant Bank Limited and First Trustees Limited, both subsidiaries of First Bank of Nigeria Limited.

Just a day before the latest ruling, the Court of Appeal had adjourned another receivership-related case involving FBNQuest Merchant Bank, First Trustees Limited, Nestoil Limited, Neconde Energy Limited, and other parties. Presiding Justice Yargata Nimpara held that the court could not proceed until the issue of who could validly represent the respondent companies was resolved.

The disqualification of Olanipekun and Banire directly addresses that procedural uncertainty, effectively clearing the way for the appellate court to proceed with substantive hearings in the receivership dispute.

The ruling is expected to have far-reaching implications for the conduct of receivership cases in Nigeria, particularly on the limits of board authority and legal representation once control of a company has shifted to court-appointed receivers.

ZICHIS Trades 48 Million Units as All-Share Index Rises 0.07%

The Nigerian equity market recorded a mild rebound in the trading session ended January 23, 2026, with the All-Share Index (ASI) gaining 0.07% to close at 165,512.2 points, up from 165,397.4 points in the previous session.

The recovery represents a 114.8-point gain, coming a day after the market suffered a steep 870.2-point decline, or 0.52%, highlighting cautious bargain hunting by investors.

Despite the positive close, overall market activity softened. Trading volume declined to 731 million shares, compared with 768 million shares exchanged in the prior session, suggesting that investors remain selective.

Mid-cap stocks dominated activity during the session, with newly listed ZICHIS Agro Allied attracting significant attention and trading 48.8 million shares.

What the data is saying
The modest gain lifted the ASI’s year-to-date return to 6.36%, from 6.29%, pointing to a tentative return of buying interest after recent losses.

On the gainers’ chart, Morison and UHOMREIT led the market, each advancing 9.94%. On the downside, Neimeth and NSLTech topped the losers’ table, shedding 9.86% and 9.35%, respectively.

Activity was concentrated in mid- and low-cap stocks. Chams led the volume chart with 76.8 million shares, followed by NSLTech with 67.9 million shares. Zenith Bank ranked third with 49.1 million shares, while ZICHIS Agro Allied and Fidelity Bank completed the top five with 48.8 million and 39.6 million shares, respectively.

By value, Zenith Bank dominated trading, recording transactions worth N3.4 billion. Seplat followed with N1.7 billion, while Lafarge, GTCO, and Aradel posted turnover of N1.5 billion, N1.4 billion, and N1.3 billion, respectively.

Top 5 gainers
Morison gained 9.94% to close at N7.52
UHOMREIT rose 9.94% to N71.35
SCOA advanced 9.93% to N23.80
RT Briscoe climbed 9.93% to N5.98
AustinLaz increased 9.78% to N4.49

Top 5 losers
Neimeth fell 9.86% to N13.25
NSLTech declined 9.35% to N0.97
Eterna dropped 8.23% to N28.45
UPL shed 6.25% to N6.00
Eunisell lost 5.84% to N153.95

SWOOTs and FUGAZ performance
Among SWOOTs (stocks with market capitalisation above N1 trillion), performance was mixed. Lafarge gained 4%, while International Breweries declined 1.42%.

The FUGAZ banking stocks recorded a largely positive session. GTCO advanced 3.03%, Zenith Bank rose 2.08%, and Access Holdings gained 1.59%. UBA, however, closed lower, shedding 1.35%.

Why this matters
The modest rebound suggests that selling pressure is easing, but the recovery remains fragile. Gains were driven by a handful of large-cap stocks, while overall trading activity stayed subdued.

This indicates that investor confidence is still cautious, with participants carefully picking positions rather than committing broadly to the market.

Market outlook
The All-Share Index is still searching for short-term stability as investors reassess valuation levels and entry points.

While renewed interest in select large-cap stocks could support further upside, the market remains vulnerable to near-term pullbacks amid stretched prices and cautious sentiment.

Lagos Court Convicts AAC Consulting for N30.5 Million Theft from Chevron Contract Staff

The Economic and Financial Crimes Commission (EFCC) has secured the conviction of AAC Consulting Limited for the theft of N30.56 million belonging to contract staff of Chevron Nigeria Limited.

The conviction was handed down on Friday, January 23, 2026, by Justice Rahman Oshodi of the Special Offences Court sitting in Ikeja, Lagos, according to a statement released by the anti-graft agency.

The case stems from offences committed in 2013 and centres on the unlawful conversion of funds meant for Chevron’s contract staff.

What the EFCC said

The EFCC disclosed that AAC Consulting Limited was arraigned on January 12, 2026, by its Lagos Zonal Directorate 1 on an amended one-count charge of stealing, contrary to Section 285(1) of the Criminal Code, Cap 34, Vol. 44, Laws of Lagos State, 2011.

According to the commission, the company was accused of dishonestly converting funds belonging to Chevron contract staff for its own use.

The charge reads:
“That AAC Consulting Limited, on or about 27th April 2013, at Lagos, within the Ikeja Judicial Division, dishonestly converted to its own use the aggregate sum of N30,564,635.81 (Thirty Million, Five Hundred and Sixty-Four Thousand, Six Hundred and Thirty-Five Naira, Eighty-One Kobo), property of contract staff of Chevron Nigeria Limited.”

Backstory

The EFCC said the trial began on June 5, 2023, when AAC Consulting Limited and its Managing Director, Anthony Adeoye, were arraigned on a 50-count charge bordering on stealing and issuance of dud cheques.

Both defendants initially pleaded not guilty, prompting a full trial. During the proceedings, the prosecution, led by I. O. Daramola, called two witnesses and tendered several documents, all of which were admitted as exhibits by the court.

According to the EFCC, the defendants later repaid the full amount involved to the petitioner in December 2023. Following the repayment, they changed their plea from not guilty to guilty.

Subsequently, the charge was amended, and AAC Consulting Limited pleaded guilty to the one-count charge of stealing.

Court ruling

At the resumed proceedings on Friday, Justice Oshodi found AAC Consulting Limited guilty and convicted the company accordingly.

The court ordered the firm to pay a N5 million fine within 14 days, warning that failure to comply would result in the winding up of the company.

What you should know

In recent years, Nigerian courts have increasingly convicted corporate entities prosecuted by the EFCC for financial crimes.

A Federal High Court in Ikoyi convicted FARM360 Limited and MCBHADMOS Trans-Atlantic Trade Limited for illegally collecting N80 million from investors through unlicensed collective investment schemes.
Quintessential Investment Company Limited was also convicted for illegal capital market operations involving over N1.2 billion in investor funds.
Similarly, a Lagos State High Court convicted Partnership Securities Limited and its chairman, Victor Ogiemwonyi, for stealing nearly N953.6 million and $80,000, ordering restitution to the affected investor.
In 2025, an Oyo State High Court convicted Detorrid Heritage Investment Limited and its principal for more than N1 billion in investment fraud, resulting in a multi-year prison sentence.

The conviction of AAC Consulting Limited reinforces the EFCC’s stance that corporate entities involved in financial crimes will be held accountable under Nigerian law.

Netflix slams Paramount’s $108 billion WBD bid over debt concerns

Netflix has sharply criticised Paramount’s proposed $108 billion takeover bid for Warner Bros. Discovery (WBD), raising concerns about the rival studio’s heavy debt burden and questioning the credibility of its financing structure.

Speaking to the Financial Times, Netflix co-chief executive Greg Peters said Paramount’s offer “doesn’t pass the sniff test,” arguing that the company is already over-leveraged and that most WBD shareholders have yet to back the proposal.

Netflix, which is pursuing a competing all-cash $82.7 billion bid, said its offer provides greater certainty and could allow shareholders to vote on the deal as early as April 2026.

If successful, Netflix’s acquisition would give it control of Warner Bros’ century-old film studio and HBO’s premium content library, including major franchises such as Game of Thrones and Harry Potter.

What Netflix is saying

Netflix has drawn a clear contrast between its offer and Paramount’s proposal, focusing on balance-sheet strength and execution risk.

“Paramount already is saddled with quite a lot of debt,” Peters said, adding that the rival’s $30-per-share offer would require what he described as “pretty crazy” levels of additional borrowing.

According to Peters, Netflix’s own financial position allows it to pursue the acquisition without relying on aggressive leverage, reducing uncertainty for shareholders.

He also argued that without the backing of Oracle co-founder Larry Ellison, Paramount would have “no chance in hell” of completing the transaction, highlighting the dependence of the bid on external financing.

The backstory

Paramount’s $108 billion bid for WBD is structured around a mix of debt and equity, including roughly $55 billion in debt and $40 billion in equity financing backed by Larry Ellison, the father of Paramount CEO David Ellison.

So far, Paramount has secured only about 7% of WBD shares through its tender offer, far below the 50% threshold required to gain control. While Paramount has signalled it could raise its bid, analysts have questioned whether further increases are feasible given the company’s existing leverage.

Netflix, by contrast, is positioning its bid as simpler and more transparent. The streaming giant, which now boasts around 325 million subscribers worldwide, says its all-cash offer eliminates the risks associated with complex financing structures and heavy borrowing.

Why it matters

The battle for Warner Bros. Discovery is being closely watched across the global entertainment industry, as a successful Netflix takeover could fundamentally reshape Hollywood.

A combined entity would merge Netflix originals such as Stranger Things and Squid Game with Warner’s deep catalogue of films and television content, potentially redefining production, distribution, and monetisation models.

Industry reports suggest Netflix could shorten theatrical exclusivity windows or release major films directly to streaming, a move that would further disrupt traditional cinema revenue.

Paramount has pushed back against Netflix’s criticism. Gerry Cardinale, founder of RedBird Capital and a major Paramount Skydance shareholder, dismissed Netflix’s bid as “smoke and mirrors,” arguing that it effectively shifts billions of dollars in debt onto WBD’s Discovery Global spin-off. He famously described the proposal as “the Harry Houdini of deals.”

As the contest intensifies, Netflix is presenting itself as financially disciplined and execution-ready, while portraying Paramount’s bid as over-leveraged and dependent on external backers — a narrative likely to weigh heavily on shareholder sentiment in the weeks ahead.

Sterling’s major shareholder, Ess-ay Investment, buys company shares worth N197.9 million

Sterling Financial Holdings Plc has disclosed that Ess-ay Investment Limited, a major shareholder linked to Mrs. Tairat Tijani, a Non-Executive Director of Sterling Bank Ltd, has acquired additional shares in the company valued at N197.9 million on the Nigerian Exchange (NGX).

The transaction, referenced NGSTERLNHCO9, was executed in 18 separate tranches, according to a regulatory filing signed by Executive Director Olayinka Oni.

Details from the disclosure show that the purchases were carried out between January 6 and January 14, 2026, at an average price of N7.34 per share, involving a total of 26,967,509 ordinary shares.

The acquisition follows a similar insider-linked transaction in December 2025, when Seven Degrees North Limited, an investment vehicle associated with Sterling Financial Holdings’ Group Chief Executive Officer, Yemi Odubiyi, purchased shares worth N578.1 million.

Shareholding impact

Before the latest transaction, Ess-ay Investment Limited already held a 5.14% stake, equivalent to 2,678,152,467 shares, in Sterling Financial Holdings. Following the acquisition of an additional 26.97 million shares, its total holding rose to 2,705,119,976 shares, increasing its ownership to approximately 5.19%.

This positions Ess-ay Investment Limited as the third-largest substantial shareholder in the company. It trails CardinalStone Asset Management Limited, which holds 31.98%, and Silverlake Investments Limited, with a 20.61% stake.

Combined, these three substantial shareholders control 57.73% of Sterling Financial Holdings’ issued share capital, representing 30.09 billion shares out of the company’s 52.12 billion outstanding shares listed on the NGX.

Previous insider-linked purchase

In late December 2025, Seven Degrees North Limited acquired Sterling Financial Holdings shares valued at N578.1 million, giving CEO Yemi Odubiyi an indirect interest of 82 million shares in the company. The transaction was executed at N7.05 per share, a level that appears to have attracted value-oriented investors.

Since then, Sterling Financial Holdings’ shares have gained over 6% year-to-date, trading above N7.50 by mid-session on January 23, 2026.

Financial performance backdrop

Sterling Financial Holdings reported a strong financial performance for the nine-month period ended September 2025, with profit before tax rising 141% year-on-year to N70.96 billion, compared to N29.4 billion in the same period of 2024.

Interest income grew 38.73% to N262.4 billion, largely driven by loans and advances to customers, which contributed approximately N175 billion. After interest expenses of N119.3 billion, net interest income stood at N143 billion.

Non-interest income also remained robust, supported by net fees and commissions of N35.8 billion, net trading income of N22.7 billion, and other income of N20.5 billion, bringing total operating income to N222.2 billion, up 57.69% year-on-year.

On the balance sheet, total assets expanded to N4.0 trillion, up from N3.5 trillion, while retained earnings increased 62% to N102.1 billion.

What it means

Recent share purchases by Ess-ay Investment Limited and Seven Degrees North Limited signal strong insider confidence in Sterling Financial Holdings’ valuation and earnings outlook. With shares accumulated between N7.05 and N7.34, investors are positioning for further upside, especially if the stock sustains momentum toward the N8.50 level on the NGX.

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Month: January 2026