Business
Banks’ Shares Rally As Thousands Lose Jobs
Banks’ shares have rallied after two lenders fired almost 3,000 workers between them, and after shareholders of Fidelity Bank Nigeria and First City Monument Bank Plc approved bond sales.
Intercontinental Bank Plc advanced for the first day in 13, adding 46 per cent to close at N1.36 after it sacked 1,339 staff on December 18.
The shares had declined 89 per cent this year shares in Oceanic Bank International Plc, which had fallen 87 per cent in 2009, posted their steepest two-day rise in more than a month and advanced 4.5 per cent to close at N1.40 after the bank fired 1,500 employees.
The banks led a gain of as much as 1.7 per cent in the Nigerian Stock Exchange’s Banking index, its biggest intra-day rise since November 11. The index has lost 37 per cent this year and closed 0.6 per cent higher.
“the only thing banks can do is look at their cost structures since revenue insn’t growing”,
Bismarck Rewane, the Chief Executive Officer of Financial Derivatives and a number of the committee set up by the government to advise it on Nigeria’s response to the global financial crisis, said “It’s a welcome development. They have to reduce cost”.
The dismissals form part of a shake-up following an audit by the Central Bank of Nigeria in August and September, which resulted in Governor Lamido Sanusi, firing chief executives of both banks and six others and injecting at least N620 billion naira ($4.12 billion) into 10 banks including intercontinental and Oceanic; to boost their capital and Liquidity.
Nigeria’s All-Share Index, is the second-worst performer of 90 benchmark equity indexes on Bloomberg this year, after Ghana plunged 34 per cent in 2009 and 46 per cent last year.
Banks dragged the index down on concern they may have as much as $10 billion toxic assets, according to data in May from Eurasia group, a New York-based research company.
As much as two thirds of the bad debt is the result of a least N1 trillion of margin loans used to buy equities as they soared almost 13-fold since 2000.
Fidelity Bank headed for its highest close in two weeks, climbing 3.2 per cent to N2.58 after shareholders approved a N200 billion ($1.3 billion) bond sale on December 21. First City shareholders gave permission for the lender to raise N100 billion through a bond sale on December 16, company spokesman, Tunde Shofowora, said by phone from Lagos. The shares increased for the first day in four, adding 3.7 per cent to N7.19.
The two lenders are following Nigeria’s four biggest by raising funds through debt sales.
First Bank of Nigeria Plc, the West African nation’s biggest company by market value, will issue N500 billion in bonds after shareholders approved the sale on October 8.
Zenith Bank Limited, the second-biggest lender, will raise N300 billion following approval at a meeting on October 30, spokesman Timi Ejoor, said by phone.
Guaranty Trust Bank Plc, the third biggest, started a five year, naira-denominated bond issue on December 9, while United Bank for Africa Plc, the fourth-biggest lender, received the go-ahead to raise N500 billion through a bond sale on October 2.
The Nigerian bank shake-up may create opportunities for buyers. Standard Bank Group Limited, Africa’s largest lender, is looking at Nigeria for possible acquisition opportunities as the banking crisis slashed valuations, Johannesburg-based spokesman Eric Larsen, said.
Old Mutual Plc, the biggest insurer on the continent, seeks to follow smaller rivals such as Liberty Holdings Limited and FirstRand Limited into Africa, including Nigeria, to boost growth and make up for losses in its U.S business.
Business
Bayelsa To Spend N1.24trn As Diri Presents 2027 Appropriation Bill …Works, Education, Sports, Others Gulp Lion’s Share
Bayelsa State Governor, Senator Douye Diri has presented the 2027 Appropriation Bill of the State to State House of Assembly.
Christened the ‘’Budget of Assured Prosperity for Sustainable Growth and Development”, the appropriation bill was based on a projected revenue of N1,242, 688,970,520,22.
The Governor said the 2027 proposals were derived from broad stakeholder engagements involving traditional rulers, technical experts, the organised private sector and citizens across the state, noting that it was a historic budget being the first as the state was beginning its fourth decade and presented at a time sustained investments were visible in all the local government areas.
“Our fiscal priorities remain clear: roads and bridges that connect communities, better health and education services, reliable power and an environment in which businesses and families can thrive”, he said.
Presenting the estimates, governor Diri said N840.791 billion representing approximately 68 per cent was proposed for capital expenditure while recurrent expenditure was put at N401.897 billion representing approximately 32 per cent.
He observed that the proposed budget was approximately 22 per cent larger than that of the 2026 fiscal year, which was N1.016 trillion, just as he listed some strategic projects that would continue to receive priority attention in 2027, saying they were all at advanced stages of completion.
The projects according to the governor, include the Ekeremor–Agge Road Phase I, Nembe–Brass Road Phase I, Akaba–Ayakoro Road with spur to Otuegwe 1, Glory Drive Phase 3, Agbere-Elemebiri Road, the 30,000-seater stadium at Igbogene, and the nine-storey state secretariat complex.
The governor expressed the conviction that with work progressing on the three senatorial roads, all local government headquarters would be connected to the state capital and boost socio-economic activities across the state.
“With work progressing on all senatorial causeways, we are moving closer to an ambition our people have held since the creation of the state: to connect the capital to every local government headquarters and open up access to our coastal communities. This will boost fisheries, marine and blue economy enterprises, and tourism.
“These projects demonstrate that our beautiful terrain should not limit our ambition. With resolve, sound planning and prudent management, Bayelsa is building what many once thought were impossible”, he added.
Giving a breakdown of the sectoral allocations, Works and Infrastructure got the lion’s share of N422.84 billion followed by Education ¦ 126.97 billion and Sports ¦ 68.50 billion.
Also, Health was allotted ¦ 53.32 billion, Security N24 billion, Public Utilities N22.94 billion and Agriculture got N17.74 billion.
Diri charged the Ministry of Budget and Economic Planning to enforce coordination, transparency and accountability and ensure effective implementation of the budget.
According to him, government would continue to improve its model schools, support accreditation of programmes in tertiary institutions, strengthen science and technical education and introduce digital learning tools in schools.
He added that the administration would pursue the upscaling of its 60 megawatts independent power plant to 100 megawatts and prioritise water provision in 2027.
He also remarked that the allocation to the sports sector would enable government accelerate work on the stadium project as the state prepares to host the National Sports Festival.
In his remarks, Deputy Speaker of the House of Assembly, Rt. Hon. Michael Ogbere, commended Governor Diri for the successful implementation of the 2026 budget, and appreciated him for his visionary leadership.
Hon. Ogbere described Diri as a peace maker, bridge builder and a leader who has constructed roads and bridges across 80% of all communities in the state, expressing confidence that the projects outlined were achievable.
The Deputy Speaker assured the governor of the 7th Assembly’s support and speedy passage of the budget while the Majority Leader, Rt. Hon. Monday Bubou, moved a motion for the members to pass a vote of confidence on Governor Diri and the administration, which was unanimously endorsed by the lawmakers.
Ariwera Ibibo-Howells, Yenagoa
Business
NNPC Targets Two Million Bpd Productions In 2027
The Nigerian National Petroleum Company Limited (NNPC) has said that ongoing reforms in Nigeria’s oil and gas sector have lifted national crude oil production by 600,000 barrels per day, from about 1.2 million barrels per day to 1.8 million barrels per day.
According to the company, the improvement has strengthened Nigeria’s position as a destination for international energy investment.
Group Chief Executive Officer ( GCEO) of NNPC Limited, Engr. Bashir Bayo Ojulari, made the remarks last week at an Energy Talk titled “Nigeria’s Reform Agenda: Competing for Energy Capital”, moderated by John Defterios, Chairman, MENA, APCO, at the 2026 Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in Abu Dhabi, United Arab Emirates.
Ojulari linked the production growth to the implementation of the Petroleum Industry Act (PIA) 2021, an improved investment climate, better investment decisions, and stronger collaboration between NNPC Limited and its partners.
He said the current output level is a milestone in NNPC Limited’s journey towards its 2 million barrels per day target by 2027.
The Company, he explained, is focused on maintaining infrastructure, protecting base production, increasing output from existing assets, and advancing new projects designed to lift production further.
“The figure of 1.8 million barrels per day is a stage in a journey towards our objective.
We are concentrating on the basics, which are maintaining our infrastructure, protecting base operations and executing the projects that will take production higher,” Ojulari stated.
On the domestic market, the GCEO said the removal of petrol subsidy has been accompanied by an expanded Compressed Natural Gas (CNG) programme.
He noted that over 400 CNG conversion centres have been established, while more than 1,000 trucks are transporting petroleum products
Nkpemenyie Mcdominic, Lagos
Business
SEREC Demands Independent Forensic Audit Of NIMASA CVFF Funds
The Sea Empowerment and Research Centre (SEREC) has call for an independent forensic audit of the Nigerian Maritime Administration and Safety Agency (NIMASA), following conflicting claims over the management and currency status of the Cabotage Vessel Financing Fund (CVFF).
The centre said the controversy surrounding the fund had reinforced its earlier concerns about transparency, accountability and the possible erosion of contributions through currency conversion and administrative decisions.
In a reaction titled, “Cocks Crow at Dawn — On the CVFF Audit Crisis,” forwarded by SEREC’s representative, Eugene Nweke, the organisation said the latest revelations had vindicated its earlier calls for a comprehensive examination of NIMASA’s accounts from 2004 to date.
SEREC said former NIMASA Director-General, Temisan Omatseye, had disclosed that dollar-denominated contributions were converted into naira and invested in fixed deposits during his tenure, while the incumbent Director-General, Dr Dayo Mobereola, maintained that the fund remained in dollars with the Central Bank of Nigeria.
The organisation said the conflicting accounts raised questions about the actual value, location and management of the fund, which was to provide financing support established for indigenous shipowners under the Coastal and Inland Shipping (Cabotage) Act.
It argued that shipowners, as contributors to the fund, deserved documentary evidence showing how much had accrued, where the money was domiciled, the interest generated and the amount currently available for disbursement.
SEREC also warned that converting dollar contributions into naira exposed the fund to significant foreign exchange losses, given the depreciation of the local currency over the years.
According to the organisation, if the contributions were converted into naira and retained in that currency, the fund could have suffered a substantial erosion in its real value, undermining its original objective of strengthening indigenous shipping capacity.
It maintained that the CVFF was contributors’ money and should not be treated as government largesse, stressing that shipowners had a legitimate right to demand accountability.
The centre further criticised maritime industry stakeholders, particularly shipowners’ associations, for allegedly prioritising access to the fund over sustained demands for transparency in its management.
SEREC insisted that no disbursement should take place without a comprehensive forensic audit to establish the fund’s financial history and current position.
It said the audit should cover all contributions, currency conversions, investments, accrued interest and administrative transactions relating to the fund from 2004 to date.
The organisation said the findings would provide the necessary clarity on the financial position of the CVFF and help restore confidence among indigenous shipowners seeking access to the facility.
Nkpemenyie Mcdominic, Lagos
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