Business
Bond Market Records N79.8bn Transaction
The hull which trailed activities in the equities sector recently, extended to the over-the-counter bond market as investors staked 73.56 million units of bonds compared to 298.75 million units exchanged in the previous week.
Precisely, a total of 73.56 billion units of bonds worth N79.8 billion changed hands recently, down from a turnover of 298.7 million shares valued at N335.7 billion traded in the preceding week.
Similarly, the equities sector recorded a turnover of 1.3 billion shares worth N11.01 billion previously, in contrast to 2.2 billion shares valued at N10.95 billion which changed hands in the previous week.
However, the low volume was attributed to the number of days in which transactions were done at the stock market, as the market only opened for three days instead of five days in commemoration of Christmas and Boxing Day.
Although there were no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors, the 6th FGN Bond 2012 series 2 was the most active bond with a traded volume of 10.5 million units valued at N10.8 billion, followed by the 6th FGN Bond 2029 series 3 with a traded volume of 9.2 million units valued at N10.9 billion.
With the amount of price losses outweighing price gains, corporate performance indicators dropped by 0.36 per cent as the All- Share Index depreciated by 73.17 points from 20,601.99 at which it opened the Week on Monday to 20,528.82 points on Wednesday, while market capitalisation closed lower at N4.917 trillion from N4.935 trillion on Monday.
Similarly, three of the four sectoral indices depreciated. For instance the NSE Food/Beverages Index dropped by 0.61 per cent to close at 414.38 points while the NSE Banking index dropped by 1.51 per cent to close at 332.46 points.
Furthermore, the NSE Insurance Index dropped by 0.75 per cent to close at 247.76 points while the NSE Oil/Gas Index however remained constant at 290.55 points.
On the Week’s price movement chart, Flour Mills of Nigeria Plc led 44 other stocks to suffer price depreciation losing 280 Kobo to close at N127.50 million per share, while Nigerian Breweries Plc lost 201 Kobo to close at N50.00 per share.
Furthermore, CAP Plc, Glaxo Smithkline Consumer Plc and Eterna Oil, Julius Berger Nigeria Plc and Gas Plc all shed 123 Kobo, 118 Kobo, 109 Kobo and 94 Kobo each to close at N28.00, N22.44, N25.90, and N5.79 respectively.
On the other hand Chevron Oil Nigeria Plc topped the weeks gainers chart with 332 Kobo to close at N69.79 per share, flowed by Ecobank Transnational Incorporated with 80 Kobo to close at N14.70 per share, while Presco Plc added 60 Kobo to close at N5.62 per share.
Some of the other price gainers for the week include Guaranty Trust Bank Plc, Dangote Flour Mills Plc, Skye Bank Plc, Afribank Nigeria Plc, all of which added 41 Kobo, 31 Kobo, 25 Kobo, and 25 Kobo each to close at N15.51, N8.71, N5.75, N2.19 and N5.15 respectively.
A close look at activities in the equities sector showed that the banking sub-sector was the most active in volume terms during the week with an exchange of 845.12 million shares worth N7.38 billion, followed by the insurance sub-sector with a turnover of 224.11 million shares valued at N313 million while the food, beverages and tobacco sub-sector traded 33.6 million shares worth N568 million.
Further analysis of activities in the sub-sector showed that the volume in the banking sub-sector was largely driven by activity in the shares of United Bank for Africa Plc and Guaranty Trust Bank Plc.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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