Nigerian Exchange Shrinks as Equities Investors Lose N35bn

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March 20, 2025

Nigerian Exchange Shrinks as Equities Investors Lose N35bn

Equities market capitalisation of the Nigerian Exchange (NGX) declined further due to sustained sell pressures, and this time financial stocks were the main target. The local bourse closed today’s trading session in negative territory, as key market performance indicators dropped by 0.05% apiece while year-to-date returns moderated.

The overall market downturn was primarily driven by persistent sell pressure in key stocks, such as UNILEVER, ACCESSCORP, AFRIPRUD, and others. In its market update, Atlass Portfolios Limited told investors that the continuous sell-offs over the past five trading sessions have resulted in a cumulative loss of ₦763 billion in investors’ wealth.

The NGX All-Share Index) decreased by 56.36 basis points today, representing a decline of 0.05% to close at 104,858.77. Today, the market activities were down, as the total volume and total value traded decreased by 77.28% and 49.51%, respectively.

Stockbrokers told investors that approximately 310.53 million units valued at N6,247.90 million were transacted across 10,182 deals.

In terms of volume, FIDELITYBK led the activity chart, accounting for 12.90% of the total volume of traded, followed by VERITASKAP (11.98%), NB (8.71%), ZENITHBANK (7.38%), and ACCESSCORP (6.76%).

ZENITHBANK emerged as the most traded stock in value terms, accounting for 17.17% of the total value of all transactions consummated on the exchange. CWG topped the advancers’ chart for today with a price appreciation of 9.64 percent, trailed by VERITASKAP (+8.41%), DEAPCAP (+7.61%), WAPIC (+4.26%), WEMABANK (+2.37%), LINKASSURE (+2.36%) and eight others.

Twenty-eight stocks depreciated, according to data from the local bourse. LIVESTOCK was the top loser, with a price depreciation of -9.57%, followed by CHAMS (-5.16%), ELLAHLAKES (-4.46%), UNILEVER (-3.64%), ACCESSCORP (-1.79%), and ZENITHBANK (-1.37%).

Today, the market breadth closed largely negative, recording 14 gainers and 28 losers. Also, the sectoral performance was negative, as two of the five major market sectors improved.

The consumer goods sector increased by 0.39%, and then the insurance sector advanced by 0.13%. The banking sector was down by 0.43%, while the industrial and oil & gas sectors closed unchanged.

Overall, the equities market capitalisation fell by N35.35 billion, representing a drop of 0.05%, to close at ₦65.75 trillion. #Nigerian Exchange Shrinks as Equities Investors Lose N35bn South African Market on Edge Before Budget Shut Down

Ecobank Named Africa’s Best Bank for Trade Finance

By

Ogochukwu Ndubuisi

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March 20, 2025

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Ecobank Named Africa’s Best Bank for Trade Finance

Ecobank Group, the leading private pan-African financial services group with unrivalled African expertise, is proud to be named as the Best Trade Finance Provider Bank in Africa, at the Global Finance Trade Finance & Supply Chain Finance Awards 2025.

Additionally, our affiliates in Burkina Faso, Côte d’Ivoire and Rwanda have also been recognised as the Best Trade Finance Provider in their respective markets.

Commenting on the award, Michael Larbie, Group Executive Corporate and Investment Banking, said, “We are focused on delivering a wide range of trade finance solutions and excellent trade services to our clients, leveraging the African Continental Free Trade Area’s single market.

“This is exemplified by our innovative “Ecobank Single Market Trade Hub”, which digitally connects buyers and suppliers across the continent and a gateway to our comprehensive suite of trade finance products and services.

“At Ecobank, we are relentless in our efforts to be the bank of choice for Africans and their businesses and in our absolute commitment to delivering a Better Africa”.

Ecobank provides comprehensive trade solutions to its customers using various payment methods to facilitate cross-border and domestic trade throughout and beyond its network of 35 sub-Saharan African countries.

It offers unique intra-Africa trade solutions, enabling its customers to settle their domestic and international trade transactions efficiently while mitigating payment risks.

The bank works closely with clients in reviewing key aspects of transaction processing, including Settlement, Financing, Risk Mitigation, Credit Enhancement and applicable Exchange Control Regulations.

Ecobank’s trade products and solutions are designed around three broad areas: structured trade and commodity finance; trade services; and supply chain finance.

The judges for the Global Finance awards selected Ecobank as the trade finance provider award winner based on input from industry analysts, corporate executives and technology experts, and on objective and subjective factors such as Ecobank’s trade-related transaction volume, the scope of its global coverage, customer service, competitive pricing, risk management and innovative products, services and technology.

Ecobank was presented with its trophies by Global Finance at the awards ceremony during the BAFT Europe Bank-To-Bank Forum in Amsterdam on 12 March 2025. #Ecobank Named Africa’s Best Bank for Trade Finance#

Veritas Kapital Assurance Climbs to N16bn in Market Value

By

Rebecca Ijose

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March 20, 2025

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Veritas Kapital Assurance Climbs to N16bn in Market Value

Veritas Kapital Assurance Plc market value climbed by more than 8.4% in the equities market to N16.085 billion as investors ramped up its shares in the local bourse.

The significant demand for its shares pushed the assurance company’s market value upward, signalling renewed investor confidence in the financial services sector.

Its share price climbed to N1.16, marking 8.41% increase from the previous close of N1.07, reflecting an improved sentiment toward Veritas Kapital Assurance. The stock price surged as over 37 million shares valued at N42.4 million exchanged hands in the local bourse on Thursday.

Veritas Kapital peaked at N1.17, matching its latest closing price, while the day’s low dipped slightly to N1.06. The company’s 52-week high of N1.80 highlights the potential for further growth.

The upward trajectory in the assurance stock highlights the resilience and strong market positioning. With a positive market trend, increased trading activity, and a strong sectoral presence, Veritas Kapital Assurance Plc is poised for further growth.

Shareholdings

More than 62% of the assurance company’s shareholdings are held by two majority shareholders: Veritas Capital Limited (52.8%) and Dr.Emmanuel I.U Ojei (9.29%).

Other influential shareholders with combined interest of 7.90% include Kano State Inv & Properties Ltd (3.33%), First Nominee/Asset Mgt Corp of Nig (2.79%) , Wushishi Mohammed Inuwa (LT. Gen. Rtd) (1.00%) and Sen. Maj. Gen. M. Magaro OFR (0.76%) Fitch Affirms Rwanda at ‘B+’ with Stable Outlook

Nigeria Plain Vanilla Bonds Trade Soft Ahead of Auction

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Marketforces Africa

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March 20, 2025

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Nigeria Plain Vanilla Bonds Trade Soft Ahead of Auction

Nigeria’s plain vanilla bonds traded soft in the secondary market ahead of Debt Management Office, DMO, monthly auction next week. The bond market recorded limited activity, with some interest around the mid-tenors.

Offers were noted on the April 2029s, February 2031s, and May 2033s, but few trades were executed due to wide bid-ask spreads, according to AIICO Capital Limited. Selloffs were observed at the mid (+6bps) segment of the curve, specifically JUN-33 (+29bps) and FEB-34 (+35bps).

Fixed income market investors treaded cautiously amid the prevailing bearish sentiment. Faced with liquidity constraints, market participants offloaded their positions decently across the yield curve.

Short and mid-term maturities, particularly Apr-29 (+10bps) and Apr-37 (+7bps) bore the brunt of the sell-off, while at the long end, Jun53 closed at an offered yield of 17.00%. Overall, the average yield inched upwards by 1bp to settle at 18.61%.

On Monday, the Nigeria’s debt office will offer N300 billion worth of FGN bonds for subscription at the primary market. This will be the last auction sales for the first quarter of 2025, a part of efforts to support budget deficit with local borrowings. #Nigeria Plain Vanilla Bonds Trade Soft Ahead of Auction US Recession Looms for First Half of 2025 – CEO

Money Market Rates Mixed as Banking Deficit Hits N1.7trn

By

Julius Alagbe

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March 20, 2025

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Money Market Rates Mixed as Banking Deficit Hits N1.7trn

The short-term benchmark interest rates moved in opposite direction in the money market as the banking deficit expanded to N1.7 trillion, affecting total subscriptions made at the Central Bank of Nigeria’s (CBN) auction.

Money market rates stayed elevated in the absence of significant inflows to douse an extended liquidity crunch in the banking system.

At the Treasury bill auction on Wednesday, demand or total subscription reduced strongly compared with previous experience, a development attributed to a huge deficit in the financial system at the time.

Banks reportedly raised more than N1.8 trillion to augment their liquidity position before the CBN N800 billion auction sales were opened for subscription. Interbank or money market rates are expected to climb further on the expectation that liquidity challenges in the banking system will persist.

In a note, TrustBanc Financial Group Limited said the deficit in the banking system expanded by 16.82% to open at N1.7 trillion from N1.433 trillion, extending its negative balance streak to the ninth consecutive day.

The Nigerian Interbank Offered Rate (NIBOR) declined across most tenors, while the overnight NIBOR remained unchanged within the range of 0% to 32.79%, Cowry Asset Limited said.

Data from the FMDQ platform cited by investment banking firm showed that the Open Repo (OPR) rate decreased by 10bps to 32.40%, while the Overnight (O/N) rate increased by 2bps to close at 32.90%.

With a Nigerian Treasury bill auction settlement worth ₦503.92 billion expected on Thursday, analysts said they anticipate further liquidity strain and interbank rates to trend upward. #Money Market Rates Mixed as Banking Deficit Hits N1.7trn Dangote Refinery Stops Selling Petrol in Naira

Access Bank Opens N193.23bn Commercial Papers for Subscriptions

By

Julius Alagbe

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March 20, 2025

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Access Bank Opens N193.23bn Commercial Papers for Subscriptions

The wholly owned subsidiary of Access Holdings Plc, Access Bank, has opened N193.25 billion in commercial papers for subscription, a separate investment banking firm said in their investors’ notes.

The financial institution plans to raise the total sum from series 3 and series 4 commercial papers to augment its short-term funding demand under its N400 billion Commercial Paper Programme.

The offer is scheduled to close on Tuesday, March 25, 2025, Comercio Partners Capital Limited told investors in an emailed note on Thursday. The wholly owned subsidiary of Access Holdings Plc, is a leading full-service commercial bank operating through a network of more than 700 branches and service outlets spanning 3 continents, 24 countries, and over 60 million customers.

The Bank is a diversified financial institution that combines a strong retail customer franchise and digital platform with deep corporate banking expertise, proven risk management and capital management capabilities.

As of Q3 2024, Access Bank posted total assets of N40.6 trillion, of which N11.9 trillion were in loans and advances to customers, N22.3 trillion in customer deposits, N3.5 trillion in shareholders’ funds, and a capital adequacy ratio of 20.42%.

During the period, the group achieved N3.4 trillion in gross earnings, delivering a 22.1% return on equity. Access Bank is the first Nigerian bank to meet the CBN’s N500 billion minimum capital requirement for banks with international authorisation, well ahead of the 2026 deadline.

The bank’s share capital exceeds N600 billion, surpassing the regulatory requirement by N100 billion. Access Bank is rated Aa by Agusto & Co. and AA by GCR, reflective of its position as the largest bank in Nigeria and growing market share in Africa.

Also underpinning the strong ratings is the well-capitalised fortress balance sheet, asset quality, strong profitability profiles, and the bank’s proven and stable management team. #Access Bank Opens N193.23bn Commercial Papers for Subscriptions Seplat Energy Prices $650m 9.125% Notes Due in 2030

Seplat Energy Raises $567m from Debt Notes

By

Marketforces Africa

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March 20, 2025

0

Seplat Energy Raises $567m from Debt Notes

Seplat Energy Plc has announced successful completion of its tender offer for a total sum $567,462,000 or 87.3% from its $650 million it planned to raise from debt notes. The company revealed the results of its previously announced tender offer for cash of any and all of its outstanding 7.750% Senior Notes due 2026.

The pricing of the debt notes is targeted at refinancing an exiting obligations, according to document the company released. It said as of the expiration deadline, $567,462,000 in aggregate principal amount of the 2026 Notes, representing approximately 87.3% of the aggregate principal amount outstanding of the 2026 Notes, were validly tendered and not validly withdrawn.

Hence, Seplat Energy said it has accepted for purchase all the Notes that were validly tendered and not validly withdrawn as of the expiration deadline at a purchase price of U.S. $1,000.

The principal amount of Notes accepted for purchase from investors with March 21, 2025 being the expected settlement date, the company said in a regulatory filing.

“No Notes were tendered under the guaranteed delivery procedures. Any of the 2026 Notes not repurchased in the Tender Offer will be redeemed on April 1, 2025 under the terms of the Indenture”, the company said.

Recalled that Seplat Energy Plc announced the pricing of its $650 million note of 9.125% that will be due for redemption in 2025 last week. #Seplat Energy Raises $567m from Debt Notes Seplat Energy Prices $650m 9.125% Notes Due in 2030

GlobalData Country Risk Index Drops Slightly in Q4 2024

By

Marketforces Africa

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March 20, 2025

0

GlobalData Country Risk Index Drops Slightly in Q4 2024

The global economy stands at a crossroads, balancing trade policy uncertainty and geopolitical tensions against easing price pressures. The latter is supporting a revival in domestic demand and providing central banks with room for potential rate cuts.

Against this backdrop, GlobalData, a leading data and analytics company, reports a slight drop in the GlobalData Country Risk Index (GCRI) from 55.6 in Q3 2024 to 55.0 in Q4 2024.

Global Risk Report Quarterly Update – Q4 2024 highlights that the Americas and the Middle East and Africa (MEA) face high risk scores due to economic instability and geopolitical conflicts.

The Asia-Pacific region, while risky, has a lower score than the Americas and MEA, buoyed by strong growth in emerging economies. In contrast, Europe is the least risky region, benefiting from a solid economic recovery and improved investment sentiment.

Annapurna Pillutla, Economic Analyst at GlobalData, said, “Global economic growth is projected to reach 3.1% in 2024, slightly down from 3.3% in 2023, reflecting both resilience and ongoing challenges.

“While the US economy continues to expand steadily, China’s real estate turmoil and potential US tariff hikes present key risks. Inflation remains above central bank targets in some regions, adding to the economic uncertainty.

“Growth in 2025 is expected to follow a similar trajectory, constrained by geopolitical tensions and policy unpredictability.”

The Trump administration’s proposed tariffs are likely to disrupt the global supply chains and raise business costs. By 2025, these measures could reduce production efficiency and alter trade patterns as companies face higher prices for imported goods and raw materials.

Europe – Steady recovery amid persistent challenges

Europe continues to be the world’s least-risk region, with its risk score improving slightly from 41.4 in Q3 2024 to 41.0 in Q4 2024. The region’s economic recovery is marked by a gradual decline in inflation, improved labor markets, and supportive policy rate cuts by the ECB.

However, geopolitical tensions, particularly involving Russia and Ukraine, along with political shifts to the far right, an aging population and labor shortages, present ongoing challenges. In the Q4 2024 GCRI update, Switzerland, Denmark, and Ireland were identified as the least risky countries, while Ukraine, Turkiye, and Belarus, faced the highest risks.

Asia-Pacific – Resilience amidst geopolitical challenges

The Asia-Pacific region’s risk score decreased from 54.0 in Q3 2024 to 53.4 in Q4 2024, indicating ongoing economic recovery. Projected to account for more than half of global growth in 2025, the region benefits from strong domestic demand and increased exports.

However, risks persist due to geopolitical tensions in the South China Sea and economic slowdown in China. China’s stimulus measures may offset some impact of US tariffs, while easing inflation and resilient consumption in other emerging economies improve the outlook. Strong growth prospects in Vietnam, the Philippines, and Indonesia further enhance regional stability.

In the Q4 2024 GCRI update, the highest-risk countries included Pakistan, Myanmar, and Bangladesh. Conversely, the countries with the lowest risk were Singapore, Taiwan (Province of China), and Hong Kong (China SAR).

Americas – Risk decline amid economic gains and political shifts

Americas’ risk score decreased slightly from 57.0 in Q3 2024 to 56.6 in Q4 2024, reflecting benefits from policy rate cuts and strong consumer spending, particularly in the US.

However, high US debt and fiscal challenges in Latin America persist, alongside political instability marked by protests and governance issues. Donald Trump’s return to the presidency adds to the region’s volatility, potentially affecting economic strategies and stability.

In the Q4 2024 GCRI update, Canada, the US, and Costa Rica were the least risky, while Haiti, Venezuela, and Argentina remained the highest-risk nations.

MEA – Persistent risks amid geopolitical tensions

The MEA regions risk score slightly decreased from 66.3 in Q3 2024 to 65.4 in Q4 2024, driven by growth in the non-oil sector. However, ongoing geopolitical conflicts, particularly in the Middle East, and humanitarian crises continue to pose significant challenges.

Africa faces rising debt and natural disasters, exacerbating food insecurity and displacement. In the Q4 2024 GCRI update, Yemen, Syria, and Burundi were among the highest-risk nations globally, highlighting the region’s persistent instability.

“Geopolitical tensions, trade disruptions, and market volatility present significant challenges for both policymakers and investors. To effectively manage these risks, a sophisticated approach is necessary, emphasizing adaptation and diversification”, Pillutla said.

Air Peace Reduces London Fare By N600,000

BOI Announces N10bn GLOW Fund to Support Female Entrepreneurs

By

Ogochukwu Ndubuisi

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March 20, 2025

0

BOI Announces N10bn GLOW Fund to Support Female Entrepreneurs

The Bank of Industry (BOI) has launched a special intervention programme, Project Guaranteed Loans for Women (GLOW), valued at ₦10 billion to support female entrepreneurs across the country.

The bank’s Managing Director, Dr Olasupo Olusi, announced the initiative on Thursday in Lagos, stating that the funding “aims to bridge the financial inclusion gap for women in Nigeria.”

According to him, Nigeria leads the world in women’s entrepreneurial activity, with 23 million female entrepreneurs accounting for 41 per cent of the country’s micro-businesses. Olusi decried that access to finance remained a major challenge for women looking to scale their businesses.

He, however, noted that BOI was committed to supporting female entrepreneurs with strategic funding initiatives designed to drive economic growth and innovation.

According to him, the bank’s 2025-2027 strategy prioritises gender-focused financial inclusion, targeting critical financing gaps and exploring actionable solutions for female-led businesses.

“Women entrepreneurs drive innovation, create jobs, and strengthen communities. However, financing remains one of their biggest challenges. “Our goal today is to listen, simplify financing processes, and build a strong network that fosters sustainable growth,” Olusi stated.

He also reaffirmed BOI’s commitment to providing financial solutions for women-led businesses in partnership with the Women Chamber of Commerce, Industry, Mines, and Agriculture (WCCIMA).

Olusi revealed that the ₦10 billion GLOW Fund was established in collaboration with WCCIMA to enhance access to capital for female entrepreneurs.

Additionally, he outlined other BOI financial interventions, including: the BOI Impact Fund, $2 million investment in Aruwa Capital, a female-led investment firm and $50 million partial risk guarantee partnership with the African Guarantee Fund

WCCIMA’s Director General, Dr Weyinmi Eribo, emphasised the need for sector-specific financing tailored to women-led businesses. She pointed out that while women-owned businesses were among the fastest-growing in Nigeria, the financial sector had yet to fully recognise them as a critical market segment.

Eribo noted that the financing gap for women-owned businesses exceeded $42 billion, describing this as a missed opportunity for national economic growth, job creation, and poverty reduction. She warned that without intentional, tailored financing, women-led businesses would struggle to scale and compete effectively.

“Women entrepreneurs account for over 40 per cent of Nigeria’s small and medium-sized enterprises (SMEs), yet many remain excluded from mainstream financing due to systemic barriers,” she stated.

Eribo commended BOI for launching the GLOW Fund and acknowledged the contributions of the bank’s gender desk team.

She pledged that WCCIMA, in partnership with BOI, would ensure that these funding initiatives translated into measurable impacts for female entrepreneurs. #BOI Announces N10bn GLOW Fund to Support Female Entrepreneurs#

Dangote Cement Appoints Fapohunda as Group Financial Officer

Oil Prices Rise as Tensions in Middle East Raise Supply Risk

By

Marketforces Africa

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March 20, 2025

0

Oil Prices Rise as Tensions in Middle East Raise Supply Risk

Oil prices increased as rising tensions in the Middle East raised supply risk concerns in the global commodities market. Brent crude, rose by around 0.5% trading at $70.89 per barrel, up from $70.54 at the previous session’s close.

The US benchmark, West Texas Intermediate (WTI) increased by 0.5%, reaching 67.33 per barrel, compared to its prior session close of $67. Geopolitical tensions in the Middle East, including Israel’s ground operations in Gaza and U.S. airstrikes on Houthi targets in Yemen, could drive the market to the upside.

Yemen’s Houthi group announced late Wednesday that 16 of its members were killed in US airstrikes targeting Saada, Al-Hazm district in Al-Jawf province, and As Sawadiyah district in Al-Bayda province, according to Houthi-affiliated Al-Masirah TV.

On Saturday, US President Donald Trump stated that he had ordered a “major attack” against the Houthis. He further warned on Wednesday that Iran must halt all alleged assistance to the group or face consequences.

Since late 2023, the Houthis have been attacking Israeli-linked ships in the Red Sea, Arabian Sea, Bab al-Mandab Strait, and the Gulf of Aden with missiles and drones, disrupting global trade in what they claim is an act of solidarity with Gaza. While the group halted attacks following a January ceasefire between Israel and Hamas, they threatened to resume operations after Israel blocked humanitarian aid into Gaza on March 2.

The Houthi group has been attacking Israeli-linked ships passing through the Red and Arabian Seas, the Bab al-Mandab Strait, and the Gulf of Aden with missiles and drones since late 2023, disrupting global trade for what it said was a show of solidarity with the Gaza Strip.

The ongoing hostilities in the Red Sea pose a significant risk to maritime trade security, potentially tightening global oil supplies.

Adding to market pressure, US Energy Information Administration (EIA) data revealed a decline in US crude oil production. Output fell by 2,000 barrels per day (bpd) to approximately 13.57 million bpd for the week ending March 14.

Over the same period, gasoline inventories dropped by 500,000 barrels, reaching 240.6 million barrels. Lower US production has fueled concerns over tightening supply, supporting upward price movements.

Monetary policy decisions from the Fed remain a key driver of oil prices. The Bank kept its policy rate steady in the 4.25%-4.50% range on Wednesday, citing a stable labor market and slightly elevated inflation.

The bank maintained its forecast for the federal funds rate, indicating that the possibility of two rate cuts this year remains unchanged. Analysts believe that a weaker US dollar, coupled with rate cuts aimed at stimulating economic growth, could push oil prices higher.

A depreciating US dollar makes oil more affordable for buyers using other currencies, while economic expansion could boost demand in oil-intensive sectors.

However, the outlook remains contingent on global economic growth at a time when trade tensions are increasing. In this regard, concerns over China’s oil demand persist.

A continued slowdown in imports from China could limit oil’s potential for a rebound. This comes in addition to the potential for additional supply from OPEC and the U.S., which could weigh on the market. #Oil Prices Rise as Tensions in Middle East Raise Supply Risk CBN Hikes Interest Rates on Nigerian Treasury Bills

MarketForces Africa

Nigerian Exchange Shrinks as Equities Investors Lose N35bn

Nigerian Exchange Shrinks as Equities Investors Lose N35bn

Ecobank Named Africa’s Best Bank for Trade Finance

Ecobank Named Africa’s Best Bank for Trade Finance

Veritas Kapital Assurance Climbs to N16bn in Market Value

Veritas Kapital Assurance Climbs to N16bn in Market Value

Nigeria Plain Vanilla Bonds Trade Soft Ahead of Auction

Nigeria Plain Vanilla Bonds Trade Soft Ahead of Auction

Money Market Rates Mixed as Banking Deficit Hits N1.7trn

Money Market Rates Mixed as Banking Deficit Hits N1.7trn

Access Bank Opens N193.23bn Commercial Papers for Subscriptions

Access Bank Opens N193.23bn Commercial Papers for Subscriptions

Seplat Energy Raises $567m from Debt Notes

Seplat Energy Raises $567m from Debt Notes

GlobalData Country Risk Index Drops Slightly in Q4 2024

GlobalData Country Risk Index Drops Slightly in Q4 2024

BOI Announces N10bn GLOW Fund to Support Female Entrepreneurs

BOI Announces N10bn GLOW Fund to Support Female Entrepreneurs

Oil Prices Rise as Tensions in Middle East Raise Supply Risk

Oil Prices Rise as Tensions in Middle East Raise Supply Risk

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