Month: January 2026

Oborevwori Seeks Delta Assembly Approval for N200 Billion Supplementary Budget

Delta State Governor Sheriff Oborevwori has requested the State House of Assembly’s approval for a N200 billion supplementary budget to revise the state’s 2025 spending framework amid mounting fiscal pressures.

The request was formally conveyed in a letter read on the floor of the House by the Speaker, Dennis Guwor, during plenary in Asaba on Tuesday.

According to the governor, the supplementary appropriation has become necessary as Delta State continues the implementation of its 2025 Appropriation Act while grappling with additional expenditure demands linked to pensions, healthcare funding, debt servicing, and urgent community interventions.

If approved, the supplementary budget will increase the overall size of Delta State’s 2025 budget and allow the government to realign spending priorities to accommodate obligations that were not fully anticipated when the original budget was passed.

What the governor is saying

Governor Oborevwori told lawmakers that the supplementary budget is critical to sustaining his administration’s development agenda and ensuring that key obligations are met before the close of the fiscal year.

He explained that the structure and timing of the 2025 budget, which runs until January 31, 2026, made a review unavoidable in light of emerging expenditure needs.

“The need became necessary to address expenditures, bearing in mind that the 2025 budget runs till Jan. 31, 2026,” the governor said.

He added that the supplementary budget includes lump-sum pension payments aimed at easing the hardship faced by retirees who served the state. According to him, these payments are intended to “ameliorate the plight of pensioners who served the state meritoriously.”

The governor also highlighted rising costs under the state’s health insurance scheme, noting that increased enrolment has resulted in higher equity contribution requirements, thereby placing additional strain on public finances.

Get up to speed

Delta State is currently operating under the 2025 Appropriation Act, which was originally approved with a total budget size of N979.2 billion.

Under the proposed supplementary budget, N140.6 billion is allocated to recurrent expenditure, while N59.4 billion is set aside for capital expenditure.

Governor Oborevwori said rising debt service obligations on foreign loans have pushed spending beyond initial projections. He also cited higher statutory allocations to local governments and the need to fund urgent community-based projects across the state.

According to the governor, these pressures made a formal adjustment to the 2025 fiscal plan necessary to prevent disruptions to governance and service delivery.

What you should know

If the House of Assembly approves the supplementary appropriation, Delta State’s revised 2025 budget will rise to N1.179 trillion.

Under the adjusted structure, N489.4 billion will be devoted to recurrent expenditure, while N689.8 billion will go to capital expenditure.

Recurrent spending pressures are being driven largely by pension obligations, increased health insurance contributions, and higher debt servicing costs. Meanwhile, capital expenditure remains focused on infrastructure development and urgent community projects identified across the state.

The supplementary appropriation bill has already passed its first reading at the Delta State House of Assembly, clearing the way for further legislative scrutiny in the coming days.

For context, in November 2025, Governor Oborevwori presented a N1.664 trillion Appropriation Bill for the 2026 fiscal year to the House. The proposal allocates N499 billion, or 30% of the total estimate, to recurrent expenditure, while N1.165 trillion, representing 70%, is earmarked for capital spending.

In addition, the governor announced in May that Delta State’s Internally Generated Revenue (IGR) rose sharply from N83 billion in 2023 to N158 billion in 2024, reflecting efforts to strengthen the state’s revenue base.

Global Oil Prices Fall Below Nigeria’s $64.85 2026 Budget Benchmark

Global oil prices slipped below levels critical to Nigeria’s fiscal planning on Wednesday, intensifying concerns about the country’s 2026 budget assumptions as fears of an oversupplied market combined with renewed geopolitical tensions.

Brent crude declined toward $64 per barrel, falling below Nigeria’s 2026 budget benchmark of $64.85, while US West Texas Intermediate (WTI) traded under $60 per barrel. The downturn reflects heightened volatility in crude markets, driven by expectations that global supply may outstrip demand in the near to medium term, according to reports by Bloomberg.

Investor sentiment has been weighed down by a combination of persistent output from major oil producers and growing geopolitical uncertainty, reinforcing a bearish outlook for crude prices as 2026 approaches.

What the IEA is saying

The cautious mood in the oil market has been reinforced by signals from the International Energy Agency (IEA), which is due to release its monthly oil market outlook later on Wednesday. Expectations of oversupply and sustained downward pressure on prices have continued to build.

Speaking at a panel during the World Economic Forum in Davos, IEA Executive Director Fatih Birol warned that oil and gas markets could remain under pressure for years. According to him, “for at least three to four years, we may well see downward pressure on oil and gas prices because of the huge amount of supply coming from the US and some other countries.”

Market participants are also monitoring developments around Venezuelan crude exports, which could be redirected following recent US policy interventions. Any redirection could introduce additional barrels into an already saturated global market.

Despite these concerns, crude’s prompt spreads remain in backwardation, suggesting short-term tightness in physical supply even as broader sentiment stays bearish. Overall, the mix of oversupply risks and geopolitical tension has created a fragile outlook for oil prices heading into 2026.

Backstory

Nigeria’s heavy dependence on oil revenue makes it particularly vulnerable to price swings in the global crude market. Oil accounts for the bulk of government revenue and foreign exchange earnings, meaning sustained price weakness could significantly strain public finances.

For 2026, the Federal Executive Council (FEC) set an oil price benchmark of $64.85 per barrel alongside an ambitious production target of 2.6 million barrels per day (mbpd). However, for budgeting purposes, a more conservative production level of 1.8 mbpd was adopted, reflecting ongoing challenges such as oil theft, pipeline vandalism, and years of underinvestment in upstream infrastructure.

Historically, higher oil prices have supported stronger GDP growth and fiscal stability, while prolonged price declines have increased pressure on foreign reserves, the naira, and overall budget execution.

More insights

Market jitters were further amplified by recent remarks and actions by US President Donald Trump, particularly relating to Greenland, which unsettled global financial markets and raised fresh questions about the stability of US–EU relations.

The dispute has dampened risk appetite across asset classes, including oil. Ahead of a key Davos address, the US administration also threatened to impose 10% tariffs on eight European countries linked to the Greenland issue, adding another layer of uncertainty to global markets.

While pockets of short-term supply tightness remain in parts of the physical oil market, the prevailing sentiment continues to lean bearish.

What you should know

If global crude prices remain below Nigeria’s budget benchmark, policymakers may face difficult fiscal trade-offs in 2026. Budget deficits could widen, borrowing requirements may rise, and capital expenditure could come under pressure.

Given Nigeria’s reliance on oil revenue, any sustained drop in prices poses risks to foreign exchange inflows and overall fiscal stability. Market watchers will continue to track supply-demand dynamics and geopolitical developments closely for signals on future price movements.

Earlier reports noted that Nigeria’s fiscal deficit rose sharply to N13.51 trillion in 2024, exceeding official targets and breaching the Fiscal Responsibility Act (FRA) 2007 deficit-to-GDP limit—underscoring the risks of prolonged oil price weakness.

Zichis Agro lists 600 million shares on NGX Growth Board at N1.81 per share

Zichis Agro Allied Industries Plc has listed 600 million ordinary shares by introduction on the Growth Board of the Nigerian Exchange (NGX), formally marking its entry into Nigeria’s public equities market.

The listing became effective on January 20, 2026, following approval by the Securities and Exchange Commission (SEC) and admission by the NGX. The shares were listed at N1.81 per share, valuing the company at approximately N1.19 billion.

Qualinvest Capital Limited acted as Lead Issuing House, while Anchoria Investment and Securities Limited served as Lead Stockbroker.

Trading under the ticker ZICHIS, the stock recorded 69.6 million shares traded before the close of the first trading session, with the price rising to N1.99 per share, placing it among the most actively traded equities on the day.

Financial performance snapshot

According to the company, the listing is expected to improve share liquidity and enhance access to capital from both local and international investors to support expansion plans.

For the nine months ended September 30, 2025, Zichis Agro reported revenue of N464.1 million, representing a 122% year-on-year increase from N209.2 million recorded in the same period of 2024.

Revenue breakdown shows:

Egg sales contributed N176.2 million
Palm oil products generated N102.3 million
Feed mill products accounted for N88.6 million
Chicken and fish sales stood at N71.2 million and N25.6 million, respectively

Despite a 67.35% increase in cost of sales to N212.8 million, the company posted a gross profit of N251.3 million. Administrative expenses rose by 30% to N50.3 million, largely due to higher depreciation and staff-related costs.

Profit before tax surged to N201.04 million, up 364% year-on-year, while earnings per share increased to N0.28 from N0.06.

Company background

Zichis Agro Allied Industries Plc was incorporated on April 12, 2012 as Zichis Farms Limited and converted to a public company in May 2024, adopting its current name. In July 2025, the SEC approved the company for public trading, clearing the path for its NGX Growth Board listing.

The company operates as an integrated agro-industrial business with interests spanning oil palm plantations, palm oil and kernel processing, vegetable oil refining, poultry and fish farming, animal feed production, maize cultivation, and cash crop farming.

As of September 2025, total assets stood at N1.06 billion, representing a 22% increase, while shareholders’ equity rose to N1.01 billion from N851.5 million a year earlier. Revenue reserves amounted to N233.9 million, while current liabilities increased to N1.06 billion from N871.2 million in 2024.

The board is chaired by Hezekiah Chinyere Oshaba, with Antonia Chinyere Akabusi serving as Managing Director and Chief Executive Officer.

What this means for investors

The listing improves the tradability of Zichis Agro’s shares and provides a platform for future capital raising. With strong recent revenue growth and profitability, the company is positioning itself to attract investor interest within the NGX Growth Board segment.

At the listing ceremony, Chairman Hezekiah Chinyere Oshaba described the move as “a sign of good things to come for investors,” while MD/CEO Antonia Chinyere Akabusi reaffirmed the company’s commitment to accountability, transparency, and long-term shareholder value.

CBN auctions N1.15 trillion Treasury Bills amid liquidity surge and rate uncertainty

The Central Bank of Nigeria (CBN) on Wednesday is set to auction N1.15 trillion worth of Treasury Bills (T-bills), marking its second NTB auction for January 2026, as excess liquidity in the banking system collides with lingering uncertainty over the direction of interest rates.

The auction will be conducted across the three standard maturities—91-day, 182-day, and 364-day bills—continuing the apex bank’s aggressive reliance on short-term domestic instruments to manage liquidity and meet government funding needs.

Market participants say the auction outcome will provide fresh guidance on near-term interest rate direction, particularly as investors weigh moderating inflation prints against the CBN’s continued preference for tight monetary conditions.

Offer structure highlights longer-dated preference

Details from the CBN’s offer circular show that N150 billion has been allotted to the 91-day bills, N200 billion to the 182-day tenor, while the bulk of the issuance—N800 billion—will be offered through the 364-day bills.

Analysts note that the heavy skew toward one-year instruments reflects both the government’s funding strategy and investor appetite for longer-dated securities that allow them to lock in elevated yields amid uncertainty about the future path of rates.

Recent auctions have consistently shown stronger demand at the long end of the curve, particularly from institutional investors seeking predictable returns in a volatile macroeconomic environment.

Yields expected to remain firm despite easing inflation

Spot rates are widely expected to remain firm, extending the upward trend seen in the final quarter of 2025, even as headline inflation showed signs of moderation.

At the December 2025 auction, stop rates rose across all maturities, with the 91-day bills clearing at 15.80%, the 182-day at 16.50%, and the 364-day bills at 18.47%. The rate increases reinforced the CBN’s cautious stance on inflation sustainability and exchange rate stability.

Market watchers say concerns about possible inflation reversals, combined with sustained government borrowing requirements, are likely to keep yields elevated in the near term.

Secondary market remains subdued

Activity in the secondary Treasury bills market has remained mixed, with most tenors closing flat as investors adopted a wait-and-see approach ahead of the primary auction and recent Open Market Operations (OMO) issuances.

Only select maturities recorded yield movements, reflecting selective positioning rather than broad-based trading interest. Analysts attribute the subdued tone to cautious sentiment despite ample liquidity in the banking system.

Earlier in the month, the CBN conducted an OMO auction, allotting N2.64 trillion across 203-day and 245-day bills at stop rates of about 19.38%, which contributed to mild selloffs in the secondary market and pushed average NTB yields higher.

Context from earlier January auction

At its first NTB auction of 2026 on January 7, the CBN raised N1.144 trillion, with particularly strong demand for the 364-day bills. The auction cleared at higher stop rates across all tenors, reflecting investors’ repricing of risk-free assets, especially at the long end of the curve.

Subsequently, secondary market yields moderated slightly as demand for naira-denominated government securities strengthened ahead of today’s auction.

Market participants say the January 21 auction will be closely watched for signals on whether yields have peaked or if the CBN intends to maintain pressure on short-term rates in the weeks ahead.

EFCC Arraigns Businessman Wilson Opuwei Over Alleged $550,000 Petroleum Allocation Fraud

The Economic and Financial Crimes Commission (EFCC) has arraigned a businessman, Wilson Opuwei, alongside his company, Dateline Energy Services Ltd., over an alleged $550,000 fraud linked to petroleum product allocations.

The arraignment took place on Tuesday, January 20, 2026, before Justice Olubunmi Abike-Fadipe of the Special Offences Court sitting in Ikeja, Lagos, according to a statement issued by the anti-graft agency.

The case relates to alleged offences dating back to 2011 and centres on accusations of obtaining money under false pretences in connection with the purported allocation of petroleum products.

The EFCC said Opuwei and his company were docked on a four-count charge bordering on obtaining by false pretences and stealing. According to the charges, the defendants allegedly obtained funds from a businessman, Prince Donatus Okonkwo, by falsely claiming the money was payment for the allocation of 5,000 metric tonnes of Dual Purpose Kerosene (DPK) from the Petroleum Products Marketing Company (PPMC).

One of the counts alleges that in April 2011, the defendants fraudulently obtained $500,000 through an intermediary, Chimaobi Anyast, under the pretence that the sum was payment for the DPK allocation. Another count accuses them of similarly obtaining an additional $50,000 as part payment for the same allocation, a claim the EFCC said was knowingly false.

The defendants pleaded not guilty to all the charges when they were read in court.

Providing background to the case, the EFCC disclosed that Opuwei was first arraigned on May 23, 2011, before Justice Habeeb Abiru of the Lagos State High Court. The matter was later transferred to Justice Abike-Fadipe for the trial to begin afresh.

According to the prosecution, led by Nwandu Ukoha, holding brief for Fadeke Giwa, the prosecution had closed its case as far back as 2015, but the defence failed to open its case, necessitating a restart of the trial. The commission said the case suffered prolonged delays due to the elevation of successive judges and alleged delays by the defence. Judges who previously handled the matter were later elevated to higher courts, contributing to the stalled proceedings.

On bail status, counsel to the defendant informed the court that Opuwei had earlier been admitted to bail on May 22, 2012, and requested that the existing bail conditions be maintained.

In his ruling, Justice Abike-Fadipe ordered that the defendant should continue on the earlier bail terms and adjourned the matter to March 19, 30, and 31, as well as April 1 and 2, 2026, for continuation of trial.

The case adds to a growing list of fraud-related prosecutions by the EFCC involving business figures and corporate entities. In recent years, the commission has intensified efforts to prosecute alleged financial crimes, including high-profile cases involving large sums of money across different sectors of the economy.

Global Billionaire Count Hits Record 3,000 in 2025 as Wealth Concentration Deepens — Oxfam

The number of billionaires worldwide climbed to a record 3,000 in 2025, according to a recent report published by Oxfam.

The report highlights the accelerating pace of extreme wealth accumulation, noting that Elon Musk became the richest person in history for the first time, reaching a net worth of $500 billion during the year.

Collectively, the world’s billionaires now control more than $3.5 trillion, underscoring a widening gap between the ultra-wealthy and the rest of the global population.

What the report is saying

Oxfam said the growth in the billionaire population is speeding up faster than at any point in recent history.

“The growth in the billionaire population is accelerating faster than ever before. Over the past several decades, the number of billionaires has tripled, with their wealth expanding at rates well above the global average,” the report stated.

The organization warned that inequality is worsening rapidly in several countries, in some cases more sharply than in the previous four years.

According to the report:

The 12 richest individuals now control over $500 billion, an amount greater than the combined wealth of the poorest half of humanity.
Globally, billionaires are thousands of times more likely to command wealth levels that overshadow the political and economic influence of millions of ordinary citizens.

Oxfam said this concentration of wealth has become a central fault line in global debates over fairness, social justice, and the growing influence of money in politics.

Backstory

The accumulation of extreme wealth has long been linked to political power and influence. In countries such as the United States, billionaires have increasingly used their financial resources to shape public policy, influence elections, and secure political allies.

Critics argue that weak legal and regulatory frameworks often fail to hold the ultra-wealthy accountable, enabling them to consolidate both economic and political power with little restraint.

History shows that when wealth becomes highly concentrated, civil and political rights can erode. Protest movements are more easily suppressed, dissent is marginalized, and democratic processes risk being undermined as financial power dominates governance structures.

As the late Justice Louis Brandeis once warned, democracy cannot coexist with extreme concentrations of wealth, as excessive economic power ultimately threatens equality and accountable governance.

What you should know

The surge in the number of billionaires in 2025 goes beyond headline figures. It reflects deeper structural challenges in the global economy, where wealth increasingly shapes laws, elections, and economic policy.

At the same time, ordinary citizens around the world are grappling with rising living costs, limited access to opportunities, and shrinking social mobility. In some countries, growing economic inequality is coinciding with the rise of authoritarian tendencies, where wealth translates directly into political influence.

Oxfam warned that without deliberate policy interventions, the world risks drifting toward a future in which wealth dictates political power, intensifies inequality, and weakens democratic institutions.

The record number of billionaires in 2025, the report concludes, raises urgent questions about fairness, governance, and the long-term stability of societies worldwide.

Indigenous Contractors Renew Abuja Protests Over Unpaid ₦4 Trillion FG Debts

Indigenous contractors on Monday resumed protests in Abuja over an alleged ₦4 trillion debt owed by the Federal Government of Nigeria for capital projects completed in 2024.

The protest, reported by the News Agency of Nigeria (NAN), comes just weeks after a similar demonstration in December 2025, when contractors raised the same concerns over unpaid obligations. While that earlier protest prompted partial payments, contractors say the bulk of the debt remains outstanding.

On Monday, protesters gathered at the Federal Ministry of Finance, insisting they would not leave until the remaining balance was settled. According to the contractors, only a fraction of the claimed amount was paid after the December action.

What the contractors are saying

Speaking at the protest, the President of the Association of Indigenous Contractors of Nigeria (AICAN), Jackson Nwosu, said the unpaid sum covers capital projects executed for the Federal Government in 2024.

He explained that although the projects were completed and verified, contractors have not received full payment. According to him, many members financed these projects through commercial bank loans, exposing them to mounting interest costs and financial strain.

Nwosu said only about 40% of the outstanding amount was paid following the December 2025 protest, adding that members would remain at the ministry until the balance was released.

“We are talking about over ₦4 trillion in unpaid capital projects executed for the Federal Government in 2024,” he said. “These projects have been completed, yet contractors are still unpaid.”

He warned that the association could escalate its actions if the government failed to honour its commitments, stressing that the situation poses risks not just to contractors but to the wider economy.

Impact on contractors

According to AICAN, delayed payments have pushed many indigenous contractors into severe financial distress. Nwosu said several members have defaulted on bank loans, with some reportedly losing properties to loan recoveries.

He added that the financial pressure has had devastating consequences for members, including reported cases of deaths linked to stress and hardship. The association accused the Federal Government of failing to honour agreements reached after previous engagements.

Nwosu also referenced assurances given by the Doris Uzoka-Anite, Minister of State for Finance, who reportedly promised that payment warrants would be issued once a verified list of completed projects was submitted. According to AICAN, despite submitting the list, no further payments followed, and members have not received any payment alerts.

This, he said, is despite directives from Bola Ahmed Tinubu instructing that the debts be settled.

What you should know

Unpaid obligations to contractors have been a recurring issue in Nigeria, particularly for capital projects executed under annual budgets.

In June 2025, the Federal Government said it was working to clear verified outstanding payments across Ministries, Departments, and Agencies (MDAs).
The Nigerian Senate later extended the implementation period for the 2024 capital budget to December 31, 2025, partly to allow more time for settling capital obligations.
In January 2025, reports indicated that the Federal Government faced cash flow constraints after the Central Bank of Nigeria declined requests for overdraft support.
In August 2025, Finance Minister Wale Edun said over ₦2 trillion in 2024 capital obligations had been settled, though contractors insist significant sums remain unpaid.

The 2026 Appropriation Bill earmarked ₦100 billion under the line item “Payment of Local Contractors’ Debts”, but contractors argue that this amount is far below what is needed to clear the accumulated arrears.

For now, the renewed protests underline growing frustration among indigenous contractors and highlight persistent challenges in Nigeria’s capital project financing and payment cycle.

DMO to Raise ₦900 Billion in January 2026 FGN Bond Auction

The Debt Management Office (DMO) has announced plans by the Federal Government of Nigeria (FGN) to raise ₦900 billion through the reopening of three Federal Government bonds at its January 2026 bond auction.

According to a circular issued by the DMO on Monday, the auction is scheduled for January 26, 2026, with settlement expected on January 28, 2026. The offer spans medium- and long-term maturities, giving investors a range of duration options across the yield curve.

What the DMO is offering

The January auction will feature three reopened FGN bond instruments with a combined target of ₦900 billion:

₦300 billion from the 18.50% FGN February 2031 bond
₦400 billion from the 19.00% FGN February 2034 bond
₦200 billion from the 22.60% FGN January 2035 bond

Each bond is offered at ₦1,000 per unit, with a minimum subscription of ₦50,001,000 and additional purchases in multiples of ₦1,000.

The coupon rates on these bonds are fixed, while successful bidders will pay a price that reflects the yield-to-maturity at which the auction clears, plus any accrued interest. Interest payments will be made semi-annually, and principal will be repaid in full at maturity under a bullet repayment structure.

Strong demand for government securities

DMO data shows that total FGN bond allotments in 2025 reached about ₦5.12 trillion, highlighting sustained investor appetite for government securities despite a high-interest-rate environment.

This strong participation underscores the role of FGN bonds as a preferred asset class for pension funds, insurance companies, banks, and other institutional investors seeking predictable returns and low credit risk.

Why the government uses bond reopenings

The FGN has consistently relied on bond reopenings as a strategic tool to finance budget deficits while deepening Nigeria’s domestic debt market.

Reopened bonds allow the government to raise funds through existing instruments with known coupon rates, providing pricing certainty for investors and reducing the administrative costs associated with issuing entirely new securities. They also improve market liquidity and help strengthen the domestic benchmark yield curve, which is critical for pricing other fixed-income instruments.

Key incentives for investors

Investors participating in the January 2026 auction will benefit from several statutory and regulatory advantages:

The bonds qualify as approved investments under the Trustee Investment Act.
They are recognised as government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), making them eligible for tax exemptions.
The bonds will be listed on Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange, ensuring transparency and secondary market tradability.
FGN bonds count as liquid assets for banks in the computation of liquidity ratios and are backed by the full faith and credit of the Federal Government.

Applications for the auction must be submitted through authorised Primary Dealer Market Makers (PDMMs), in line with the DMO’s guidelines.

The bigger picture

The January 2026 bond auction forms part of the FGN’s broader domestic borrowing strategy, aimed at financing budgetary obligations while offering investors stable, long-term investment options. At the same time, it supports the continued growth and sophistication of Nigeria’s domestic debt market.

John Holt Shares Gain 42.9% YTD in 2026, but Risks Still Loom

Shares of John Holt PLC have climbed 42.9% year-to-date (YTD) in 2026, placing the stock 15th on the Nigerian Exchange (NGX) YTD performance table. The rally has been even sharper in the short term, with the stock rising over 70% month-to-date, drawing fresh attention from market watchers.

Ordinarily, such a move would signal renewed investor confidence. In John Holt’s case, however, the surge raises difficult questions—especially given the stock’s 37% decline in 2025, when it ranked among the 20 worst-performing equities on the exchange.

For a company coming off a weak year, a gain of more than 40% in just half a month—without a clear shift in fundamentals—demands a closer look. Is this the start of a genuine turnaround, improving growth expectations, or simply a speculative bounce in a thinly traded stock?

The company at a glance

Founded in 1961 and listed on the Nigerian Stock Exchange in 1974, John Holt is one of Nigeria’s long-standing corporate names. Over the decades, it has evolved into a diversified conglomerate with operations spanning renewable energy solutions, diesel and gas generators, firefighting equipment, rapid intervention vehicles, air-conditioning systems, marine boats, and the export of non-oil products.

The company operates within the conglomerate sector, alongside peers such as UACN, Transcorp, SCOA, and Chellarams.

Financial performance: uneven and volatile

Between 2021 and 2025, John Holt generated ₦11.18 billion in cumulative revenue. While the headline figure appears solid, the underlying trend is far less reassuring. Revenue fluctuated sharply year to year, resulting in an average annual growth rate of just over 5% across the five-year period.

Profitability has been even more erratic. The company recorded losses in 2021 and 2023, modest profits in 2022 and 2025, and one exceptional year in 2024. In that standout year, profit after tax surged to ₦2.47 billion, with earnings per share jumping to ₦6.34. By 2025, EPS had fallen back sharply to ₦1.20.

A closer look at the 2024 numbers shows why caution is warranted. A significant portion of that year’s profit did not come from core operations. Instead, it was driven by about ₦3.45 billion in other income, largely from the disposal of property, plant and equipment, as well as support from the company’s parent.

In simple terms, John Holt sold assets and benefited from one-off backing in 2024—boosting profit temporarily rather than sustainably.

When those exceptional items faded in 2025, profitability dropped sharply, a decline compounded by persistently high costs. Cost of sales—driven mainly by finished goods—absorbed over 75% of revenue, highlighting weak operating efficiency and thin margins.

This distinction matters because equity markets ultimately reward companies that can generate consistent, recurring earnings, not occasional windfalls.

Why the sharp rally in early 2026?

Trading data offers important clues. Over the past three months, John Holt has ranked 108th by trading activity on the Nigerian Exchange, underscoring how thinly traded the stock is.

Since the start of 2026, the shares have frequently traded flat at ₦7.00, with opening, high, low, and closing prices often identical across multiple sessions. Meanwhile, daily volumes have swung wildly—from a few tens of thousands of shares to several hundred thousand in a single day.

This pattern suggests a market driven more by a scarcity of sellers than by broad-based demand. In such low-liquidity conditions, even modest buying can push prices sharply higher. Once prices start moving, momentum traders often pile in, reinforcing gains regardless of whether the underlying business has materially improved.

Is the stock undervalued?

Based on available fundamentals, John Holt does not appear undervalued in a way that clearly justifies strong, long-term investor conviction.

For a convincing undervaluation case, the company would need to demonstrate sustained earnings growth, improving margins, and the ability to generate ₦1 billion or more in recurring annual profits without reliance on asset sales or parent-company support. That evidence is not yet visible.

The bottom line

John Holt’s 2026 rally is a textbook example of how share prices can move ahead of fundamentals in thin markets. The recent gains appear driven largely by low liquidity, limited free float, and speculative interest rather than a clear operational turnaround.

While the company returned to profitability in 2025, margins remain weak and costs continue to consume most of its revenue. Until earnings become more consistent and are clearly driven by core operations, caution remains the sensible stance for investors.

Microfinance Banks’ Non-Financial Assets Hit Record ₦358.79bn as Sector Balance Sheets Expand

Non-financial assets held by microfinance banks (MFBs) in Nigeria rose to a record ₦358.787 billion in June 2025, highlighting the sector’s growing accumulation of physical and intangible assets alongside rapid balance-sheet expansion.

The figures are contained in the latest quarterly statistical bulletin released by the Central Bank of Nigeria (CBN).

What the data shows

The June 2025 position represents a 0.88% month-on-month increase from ₦355.650 billion in May 2025. On a year-on-year basis, non-financial assets surged by ₦131.08 billion, translating to a 57.56% increase compared with ₦227.707 billion in June 2024.

The steady rise points to a structural shift in the asset composition of microfinance banks, as operators continue to invest more heavily in property, equipment, vehicles, technology, and other non-financial holdings.

Month-by-month trend

CBN data shows consistent growth through the first half of 2025:

January 2025: ₦314.752 billion (up from ₦168.691 billion in January 2024)
February 2025: ₦317.986 billion (from ₦181.198 billion in February 2024)
March 2025: ₦320.334 billion (from ₦197.298 billion in March 2024)

The pattern underscores sustained asset accumulation across the sector rather than a one-off spike.

Total assets cross ₦5 trillion

Beyond non-financial assets, the bulletin shows that total assets of licensed microfinance banks climbed to ₦5.228 trillion in May 2025, the highest level ever recorded.

Between December 2024 and May 2025, total assets expanded by ₦1.267 trillion, representing 32% growth in just five months. Regulators and analysts see this metric as critical for assessing capital adequacy, regulatory compliance, and the sector’s preparedness for potential recapitalisation requirements.

What counts as non-financial assets

Non-financial assets derive value from their physical substance, utility, or contractual rights, rather than from being traded on financial markets. For microfinance banks, these include:

Tangible assets: real estate, office buildings, equipment, vehicles
Intangible assets: goodwill, software, trademarks, and other intellectual property

Rising holdings in this category may reflect branch expansion, digital infrastructure investments, or consolidation of operational capacity.

Why it matters

The sharp increase in non-financial and total assets signals growing scale and ambition within Nigeria’s microfinance sector. While stronger balance sheets can support wider financial inclusion and credit delivery, analysts note that excessive concentration in non-earning assets could also affect liquidity and profitability if not carefully managed.

What you should know

The same CBN bulletin revealed that Nigerians withdrew ₦36.34 trillion via ATMs between January and June 2025, a 197.66% jump from ₦12.21 trillion in the same period of 2024—despite new withdrawal fees.

Transaction volumes also rose sharply, with 858.80 million ATM withdrawals recorded in the first half of 2025, up 72.98% from 496.47 million a year earlier. The data suggests that higher charges did little to dampen cash demand, even as banks—microfinance institutions included—continue to expand their asset base.

Together, these trends point to a financial system experiencing rapid growth, rising activity, and increasing operational scale, with microfinance banks playing a more prominent role in Nigeria’s evolving banking landscape.

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