Blog - Creator

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.

Nigeria Records N161.05 Billion Net Foreign Portfolio Investment in Equities in 2025

Nigeria recorded a net foreign portfolio investment (FPI) inflow of N161.05 billion into equities in 2025, pointing to a cautious but improving foreign risk appetite amid persistent market volatility and macroeconomic uncertainty.

Data from the Nigerian Exchange show that total foreign equity inflows for the year reached N1.40 trillion, marginally higher than total outflows of N1.24 trillion, resulting in a modest positive net position. While the outcome represents a recovery from the previous year, the underlying flow pattern highlights fragile and uneven foreign participation.

With the exception of September, monthly net inflows were largely subdued. March ended almost flat with a net inflow of N0.05 billion, while May (N13.31 billion), June (N6.33 billion), and August (N18.47 billion) provided incremental support. Even August’s inflow—one of the stronger months—was still less than one-tenth of September’s surge, underscoring the skewed nature of the annual performance.

Recovery from 2024 outflows, but still fragile

The positive net inflow in 2025 marked a clear turnaround from 2024, when foreign portfolio outflows of N455.62 billion exceeded inflows of N396.41 billion, resulting in a net outflow of N59.21 billion. However, the recovery remains structurally weak, driven more by episodic large trades than broad-based foreign confidence.

In December 2025, foreign transaction values jumped sharply, largely due to block trades. Despite gross inflows of N223.79 billion and outflows of N234.30 billion, the month closed with a net outflow, indicating that heightened activity did not translate into sustained net buying.

Overall foreign portfolio activity expanded significantly in 2025. Inflows rose 254.24% year-on-year, while outflows increased 172.86%, reflecting stronger two-way trading rather than one-directional capital inflows. Total foreign portfolio transactions climbed to N2.65 trillion, more than tripling the N852.03 billion recorded in 2024, a 210.72% year-on-year increase.

A year dominated by profit-taking

For much of 2025, foreign flows were characterised by profit-taking and tactical exits. Net outflows were recorded in January, February, April, July, October, November, and December, suggesting that foreign investors were frequently selling into rallies rather than building long-term exposure.

July stood out with a sharp net outflow of N44.99 billion, followed by sustained losses in November (N36.66 billion) and December (N10.51 billion). This pattern reflects continued sensitivity to equity valuations, foreign exchange dynamics, and broader macroeconomic risks, prompting investors to lock in gains.

September skewed the full-year result

The positive net inflow for 2025 was almost entirely driven by September, which alone contributed N263.30 billion—more than the total net inflow for the entire year. During the month, foreign inflows surged to N325.46 billion, while outflows were contained at N62.16 billion, pointing to major block trades, index rebalancing, or institutional portfolio reallocations.

Without September’s exceptional performance, the year would have closed with a net outflow, highlighting the fragile foundation of foreign investor confidence in Nigerian equities.

What the flow pattern tells us

Foreign equity flows in 2025 reflect selective, event-driven engagement rather than long-term conviction investing. While equities benefited indirectly from foreign exchange reforms and improved price discovery, participation remained tactical and short-term.

High domestic interest rates kept fixed-income instruments more attractive, positioning equities as a secondary option for foreign investors. Global liquidity conditions and frontier-market rotations enabled brief inflows, but competition from other frontier markets limited their scale and durability.

Although tax reforms and fiscal signalling helped anchor medium-term confidence, they were not sufficient to generate sustained foreign equity inflows.

Bottom line: Nigeria’s positive net FPI position in 2025 is encouraging but remains structurally weak, heavily reliant on isolated large inflows. Converting episodic foreign participation into durable long-term capital will require deeper macroeconomic stability, clearer FX policy direction, and stronger earnings visibility across listed companies.

UK Drops Foreign Student Target, Eyes £40 Billion Education Exports by 2030

The United Kingdom government is shifting its international education strategy, setting a new target of £40 billion a year in education exports by 2030, while dropping its long-standing numerical goal for foreign student enrolment on UK campuses.

The policy change, reported by The Guardian, replaces a 2019 objective that aimed to attract 600,000 international students annually to study in the UK. The move signals a recalibration of policy as ministers seek to balance migration pressures with the growing economic importance of the education sector.

Under the revised approach, the UK will focus less on the volume of overseas students physically studying in the country and more on expanding British education abroad through partnerships, overseas campuses, and transnational education programmes.

What the government is saying

According to the Department for Education, the new strategy removes numerical caps or targets for international students studying in the UK. Instead, universities and education providers will be encouraged to enter new global markets by opening overseas hubs and forming partnerships with institutions abroad.

This approach allows students to access UK-branded education closer to home, while still contributing to British education exports through tuition fees, licensing arrangements, and collaborative programmes.

Education Secretary Bridget Phillipson said the policy shift would help universities diversify income streams, strengthen international partnerships, and widen access to UK-quality education, while continuing to support domestic economic growth.

Alongside the new export-focused strategy, the government plans to introduce tighter compliance standards for institutions recruiting international students to the UK. Universities that fail to meet these standards could face recruitment caps or lose their licence to admit overseas students, according to the report.

Ministers, however, emphasised that the UK remains open to genuine international students. The government also confirmed in December that the UK will rejoin the Erasmus+ programme in 2027, restoring access to student exchange opportunities across Europe.

Why this matters

The policy adjustment comes amid a notable decline in UK study visas. In the year ending June 2025, the UK issued 431,725 sponsored study visas, an 18% drop year-on-year and a 34% fall from the peak recorded in 2023.

In addition, the government announced a new levy of £925 per international student per year of study in the 2024 autumn budget, which will take effect from August 2028. The levy is expected to add to the overall cost of studying in the UK and has raised concerns among universities and student groups.

Despite the visa slowdown, demand remains resilient in some areas. Data from UCAS showed that international undergraduate applications rose 2.2% in 2025 to 138,460, with applications from China increasing by a record 10%.

Student reactions

Student leaders have expressed concern that the shift towards overseas delivery could affect campus diversity and the student experience in the UK. National Union of Students UK president Amira Campbell said students value learning alongside peers from around the world on the same campus, noting that international students are central to the global reputation of UK universities.

She added that as institutions expand their overseas presence, the government must ensure that teaching quality and student experience at international campuses match the standards offered in the UK.

Overall, the new strategy underscores a broader rethink of how the UK monetises its global education brand—prioritising export growth and international reach, while tightening controls on migration-linked student numbers.

Kogi State to Raise N50 Billion Sukuk for Airport and Markets from March 2026

The Kogi State Government has announced plans to raise N50 billion through a sukuk issuance to finance the construction of an international airport and a modern international market, with the programme expected to commence by March 2026.

The disclosure was made by Governor Ahmed Ododo at an investor engagement and market sensitisation forum held in Abuja, according to the News Agency of Nigeria (NAN).

According to the state government, the planned sukuk will serve as the administration’s flagship infrastructure financing strategy, designed to accelerate economic transformation, unlock Kogi’s strategic location, and boost internally generated revenue.

Infrastructure-focused sukuk

State officials explained that the sukuk will be fully asset-backed and deployed strictly for infrastructure development, in line with Islamic finance principles. The proceeds will be applied exclusively to the Kogi State International Airport project and the Lokoja International Market, both of which are expected to be revenue-generating assets.

Speaking at the forum, the Commissioner for Finance, Budget and Economic Planning, Mr Asiru Idris, stressed that the financing plan is infrastructure-driven and consumption-free.

“This N50 billion sukuk is for infrastructure, not consumption. Today, we are presenting a clear and transparent investment proposition. It is specifically for the Kogi State International Airport and the Lokoja International Market,” Idris said.

Also speaking, the Managing Director of AVA Capital Group, Mr Kayode Fadahunsi, described the planned issuance as a textbook infrastructure sukuk, noting that the projects are capable of paying for themselves over time.

According to him, the airport and market developments can expand Kogi State’s internally generated revenue base while supporting sukuk repayments through project-linked cash flows.

Economic context

Kogi State has historically faced challenges in developing large-scale infrastructure, despite its strategic position linking northern and southern Nigeria. Successive administrations have identified transport, logistics, and commercial infrastructure as critical to unlocking the state’s economic potential and attracting private investment.

The state government believes that the proposed airport and international market will strengthen trade, logistics, and investment flows, positioning Kogi as a key commercial hub in the country.

What you should know

State officials disclosed that all key institutional approvals required for the sukuk issuance have already been secured. These include approvals from the Kogi State Executive Council and the Kogi State House of Assembly.

To further strengthen investor confidence, the state has submitted an application for an Irrevocable Standing Payment Order (ISPO) to the Federal Government. The bidding process for the airport project is also expected to commence within weeks.

In addition, financial advisers, technical consultants, and project partners have already been engaged to ensure effective execution and value-for-money delivery. A Sharia Advisory Board and an Independent Project Management Committee will also be constituted to oversee compliance, governance, and transparency throughout the life of the sukuk.

At the national level, the Debt Management Office (DMO) recently disclosed that the Federal Government has recorded N2.205 trillion in total subscriptions through the Sovereign Sukuk programme since its debut in 2017.

Earlier, in May 2025, the DMO announced the issuance of a N300 billion seven-year Ijarah Sukuk, targeted at funding critical road and bridge infrastructure across Nigeria’s six geopolitical zones, underscoring the growing role of sukuk instruments in public infrastructure financing.

Guinea Insurance Seeks NGX Approval for N5.30 Billion Rights Issue

Guinea Insurance Plc has applied to the Nigerian Exchange (NGX) for approval to raise N5.30 billion through a rights issue, as part of efforts to strengthen its capital base and comply with new regulatory capital requirements in Nigeria’s insurance industry.

The proposed rights issue involves the issuance of 5,295,200,000 ordinary shares of 50 kobo each at an offer price of N1.10 per share. The offer is structured on the basis of two new shares for every three existing shares held, with January 21, 2026, set as the qualification date for eligible shareholders.

The application was submitted to the NGX through the company’s stockbrokers, Forte Financial Limited and Mega Equities Limited, and is currently awaiting regulatory approval and listing. Once approval is secured, the company’s registrars will dispatch the rights circular to shareholders and release the detailed offer timetable.

Details from the market filing

According to a market bulletin referenced NGXREG/IRD/MB8/26/01/21, the rights issue is aimed at bolstering Guinea Insurance’s capital position in line with ongoing reforms in the insurance sector. Only shareholders whose names appear on the company’s register at the close of business on January 21, 2026, will be eligible to participate in the offer.

Regulatory backdrop

The capital raise comes amid sweeping reforms introduced by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law on July 31, 2025. The legislation overhauls insurance supervision and introduces higher minimum capital requirements alongside a risk-based capital (RBC) framework, designed to ensure insurers maintain capital levels that reflect the risks they underwrite.

Under the new regime:

Life insurance companies must maintain a minimum capital base of N10 billion.
Non-life (general) insurers are required to hold at least N15 billion.
Reinsurance companies must have a minimum capital of N35 billion.

The Act also grants the National Insurance Commission (NAICOM) expanded powers to mandate higher capital thresholds based on insurers’ risk profiles and to revoke licences of firms that fail to recapitalise within the stipulated timeframe.

NAICOM has since issued detailed recapitalisation guidelines covering submission of recapitalisation plans, quarterly progress reporting, capital verification procedures, and documentation requirements for admissible assets. All insurers and reinsurers are required to meet the new minimum capital requirements on or before July 30, 2026, with strict sanctions for non-compliance.

Stock performance on NGX

Guinea Insurance’s shares closed trading on Thursday, January 22, 2026, at N1.30 per share. The stock opened the year at N1.33 and has since declined by 2.26% year-to-date, placing it 141st on the NGX in terms of performance so far in 2026.

The stock has experienced significant volatility over the past year. It rose to N1.77 per share on August 22, 2025, before falling to N0.96 on December 11, 2025, and later recovering to N1.33 by December 31, 2025.

With 7.94 billion shares outstanding and a market capitalisation of approximately N10.3 billion, Guinea Insurance is currently ranked as the 110th most valuable stock on the NGX, accounting for about 0.0098% of the total equity market value.

Overall, the proposed rights issue represents a key step by Guinea Insurance to shore up capital, meet regulatory demands, and position itself more firmly within Nigeria’s evolving insurance landscape.

International Energy Insurance Posts N688.8 Million Profit in 2025 Despite Softer Revenue

International Energy Insurance Plc has reported a pre-tax profit of N688.8 million for the 2025 financial year, maintaining profitability despite a notable slowdown in revenue and weaker investment revaluation gains.

Although the result represents a sharp decline from the N3.1 billion pre-tax profit recorded in 2024, it underscores the company’s ability to stay in the black amid rising insurance costs and softer underwriting income.

Full-year insurance revenue stood at N4.08 billion, down 27.37% year-on-year from N5.6 billion in 2024, reflecting reduced premium volumes and a more challenging operating environment.

Key highlights (FY2025 vs FY2024)

Insurance revenue: N4.08 billion vs N5.6 billion
Insurance service result: N1.4 billion vs N3.4 billion
Investment income: N833.3 million, up 94.03% YoY
Net gains on investment property: N185.3 million vs N1.9 billion
Net investment income: N1.1 billion vs N2.4 billion
Net insurance & investment result: N2.5 billion vs N5.8 billion
Operating expenses: N1.7 billion vs N2.6 billion
Pre-tax profit: N688.8 million vs N3.1 billion
Premiums received: N3.3 billion vs N4.3 billion

What the numbers show

All insurance revenue for 2025 was generated from contracts recognised under the Premium Allocation Approach (PAA). However, profitability from core insurance operations weakened as insurance expenses rose by 12.53% to N2.1 billion, while net reinsurance costs jumped 46.99% to N488.9 million.

These pressures pushed the insurance service result down to N1.4 billion, less than half of the prior year’s level, though it remained a positive contributor to earnings.

On the investment side, performance was mixed. Investment income nearly doubled to N833.3 million, driven largely by interest income from bank deposits amounting to N739.6 million. This improvement helped cushion weaker underwriting performance.

However, net gains on investment properties declined sharply to N185.3 million, compared with N1.9 billion in 2024, while a marginal foreign exchange loss of N536,000 further weighed on returns. As a result, net investment income fell to N1.1 billion from N2.4 billion a year earlier.

After operating expenses of N1.7 billion and other income of N255.5 million, the company closed the year with a pre-tax profit of N688.8 million.

Balance sheet snapshot

International Energy Insurance’s balance sheet showed signs of strengthening in 2025:

Total assets: N15.8 billion (2024: N16.8 billion)
Major asset components included:
- Investment properties: N4.6 billion
- Financial assets at amortised cost: N4.07 billion
- Cash and cash equivalents: N3.6 billion

Liabilities dropped significantly to N6.8 billion from N24.4 billion, driven mainly by a sharp reduction in borrowings to N2.8 billion from N16.4 billion.

Total equity improved to N8.9 billion, with retained earnings rebounding from a negative N22.3 billion to a positive N145.2 million, marking a key turnaround in shareholders’ funds.

What you should know

Premiums received declined to N3.3 billion, reflecting softer underwriting activity.
Claims and benefits paid rose to N735.9 million from N628.4 million.
Despite revenue pressure, cost control and investment income helped sustain profitability.
The company’s shares are up about 24% year-to-date in 2026 on the Nigerian Exchange, reflecting renewed investor confidence.

Overall, while 2025 was a tougher year operationally, International Energy Insurance’s return to profitability and improved balance sheet position signal a degree of resilience as it navigates a challenging insurance market.

NGX Exchange-Traded Funds to Consider Investing in 2026

The Nigerian Exchange-Traded Fund (ETF) market maintained strong momentum in 2025, extending the growth recorded in 2024 and reinforcing ETFs as a viable investment option for both new and experienced investors.

According to valuation reports from the Securities and Exchange Commission dated January 3 and December 24, 2025, the total Net Asset Value (NAV) of all listed ETFs rose from N12.77 billion in 2024 across 11 funds to N18.08 billion in 2025 with 12 ETFs. This represents a 41.7% increase in total market value year-on-year.

Although the average year-to-date yield moderated slightly, easing from 53% in 2024 to 48% in 2025, the sharp expansion in assets under management points to rising investor confidence and deeper participation in the ETF segment of the Nigerian Exchange.

ETFs that stood out in 2025

Among the 12 ETFs listed on the NGX in 2025, several funds distinguished themselves by size, yield, or consistency:

VG 30 ETF, managed by Vetiva Fund Managers, accounted for about 43% of total ETF NAV, making it the largest fund in the market. It also delivered a solid two-year average yield of 45.12%.
Lotus Halal ETF, managed by Lotus Capital Limited, posted one of the strongest performances, with a two-year average yield of 64% and a robust NAV of about N2 trillion, representing over 11% of combined ETF NAV.
New Gold ETF, managed by New Gold Managers, continued its impressive run. After averaging 88% yield across 2024 and 2025, it still delivered about 60% yield in 2025, benefiting from strong gold price dynamics.
VCG ETF, also managed by Vetiva, recorded the highest yield among smaller funds, with a two-year average of 83.20% and a standout 118.02% return in 2025.
Stanbic IBTC ETF 30 Fund, managed by Stanbic IBTC Asset Management, delivered stable performance, posting a two-year average yield of 41.49%, appealing to investors seeking consistency.

While performance was generally strong, investors are reminded that past returns do not guarantee future results, making it important to understand how ETFs work before investing.

What is an ETF?

An ETF can be thought of as a basket of assets—such as stocks, bonds, or commodities—packaged into a single investment product. Instead of buying shares of one company, investors gain exposure to multiple assets at once, helping to spread risk.

This diversification means weaker performance in one asset can be offset by stronger performance in others, making ETFs a cost-effective way to build a balanced portfolio.

How ETFs work on the NGX

ETFs are listed and traded on the Nigerian Exchange just like ordinary shares. Investors can buy or sell ETF units through licensed stockbrokers or, in some cases, directly via the fund manager.

Minimum investment requirements vary by fund. Some ETFs allow entry with as little as one unit, while others require larger minimums. For example, the Stanbic IBTC ETF 30 requires a minimum investment of 1,000 units.

Which ETFs should you consider for 2026?

Your choice of ETF should depend on your financial goals and risk appetite:

For high growth potential: The New Gold ETF remains attractive, with its NAV rising from N1.3 billion in 2024 to N2.01 billion in 2025, supported by strong commodity performance.
For size and stability: The VG 30 ETF, which contributed over 43% of total ETF NAV in 2025, offers exposure to Nigeria’s largest and most liquid companies, making it suitable for investors seeking broad market exposure.

Key factors to consider before investing

Before selecting an ETF for 2026, investors should carefully review the fund’s factsheet, paying attention to:

Investment strategy: Whether the fund tracks equities, bonds, commodities, or a mix
Minimum investment requirement: The number of units needed to get started
Risk profile: Aggressive versus conservative positioning
Expense ratio and management fees: Lower costs can significantly improve long-term returns
Replication method: Whether the ETF fully tracks its benchmark or uses sampling

Bottom line

ETFs remain one of the most flexible and accessible ways to diversify an investment portfolio on the NGX. By understanding how each fund works and aligning choices with personal financial goals, investors can position themselves more effectively for long-term growth in 2026 and beyond.

STANBIC, ZENITHBANK Lead Value as Nigerian Stock Market Stalls, Up 10.8 Points

The Nigerian stock market ended trading on Wednesday, January 21, 2026, on a subdued note, posting a marginal gain of 10.8 points to close at 166,267.6, as investors maintained a cautious stance despite rising activity levels.

This outcome marked the fourth consecutive session of limited price movement, reinforcing signs of consolidation after recent rallies. Trading activity, however, improved, with total volume rising to 822 million shares, compared with 795 million shares in the previous session.

Market capitalisation mirrored the muted price action, remaining flat at N106.4 trillion, as investors exchanged shares across 43,548 deals on the Nigerian Exchange.

In value terms, Stanbic IBTC Holdings Plc and Zenith Bank Plc led trading activity, with each recording about N2.7 billion worth of shares during the session.

What the data is saying

The modest uptick in the All-Share Index (ASI) pushed the market’s year-to-date return to 6.85%, signalling cautious optimism among investors amid sideways price movements.

On the gainers’ chart, McNichols, RT Briscoe, and NCR all advanced by the maximum 10%, while UPDC REIT and Champion topped the losers’ table, shedding 9.68% and 9.31%, respectively.

By volume, ZICHIS Agro Allied dominated trading with 69.2 million shares, followed by NSLTECH with 54.7 million shares and Access Holdings with 40.1 million shares. Zenith Bank and Tantalizers completed the top five, trading 38.1 million and 33 million shares, respectively.

In value terms, Stanbic IBTC led with N2.78 billion, closely followed by Zenith Bank at N2.74 billion. Nigerian Breweries recorded N2.4 billion, GTCO posted N2.1 billion, while Aradel closed the top five with N1.4 billion.

Top 5 gainers

McNichols gained 10.00% to close at N6.93
RT Briscoe rose 10.00% to N4.95
NCR advanced 10.00% to N171.05
Jaiz Bank climbed 9.99% to N7.93
May & Baker increased 9.95% to N43.65

Top 5 losers

UPDC REIT declined 9.68% to N8.40
Champion fell 9.31% to N19.00
NSL Tech dropped 6.78% to N1.10
WAPIC lost 6.69% to N3.35
Ecobank shed 6.00% to N47.00

SWOOTs and FUGAZ performance

Among SWOOTs (stocks worth over N1 trillion), performance was mixed. International Breweries rose 0.67%, while Lafarge gained 0.57%. In contrast, Aradel declined 1.86% and Nigerian Breweries slipped 0.19%.

FUGAZ banking stocks also recorded mixed outcomes. Zenith Bank and First HoldCo closed flat, while Access Holdings edged up 0.22%. On the downside, UBA fell 0.22% and GTCO dipped 0.05%.

Why this matters

The marginal gain in the ASI reflects a market in pause mode, with investors selectively positioning in preferred stocks while taking profits in others. Heavy volumes in ZICHIS Agro Allied, NSLTECH, and Access Holdings highlight areas of active interest, while strong value trades in Stanbic IBTC and Zenith Bank underscore sustained activity in key blue-chip names.

Market outlook

Despite closing in positive territory, the market continues to show signs of tight trading ranges, suggesting investors are reassessing entry points. While renewed buying interest in select large-cap stocks could support a broader rally, the overall market remains vulnerable to short-term pullbacks amid already stretched valuations.

Naira Closes Mid-Week at N1,423/$ Officially as Parallel Market Hits N1,486/$

The naira closed the mid-week trading session at N1,423 per dollar at the official foreign exchange market, extending a mixed performance that contrasts sharply with continued weakness in the parallel market.

Data from the Central Bank of Nigeria (CBN) and Nairametrics Research shows that while the official market remains relatively stable, significant pressure persists outside the regulated window.

The gap between the two FX windows has narrowed slightly but remains wide, highlighting the impact of ongoing market reforms alongside deep-seated structural constraints in Nigeria’s foreign exchange market.

What the data is saying

At the Nigerian Foreign Exchange Market (NFEM), the naira traded at N1,420.5/$ on Monday, strengthened marginally to N1,420/$ on Tuesday, before depreciating to N1,423/$ on Wednesday.

Last week, the currency opened at N1,425/$ on Monday and appreciated gradually to close at N1,417.95/$, reflecting intermittent gains at the official window.

In the parallel market, the naira opened at N1,483/$ on Monday, remained unchanged on Tuesday, and weakened slightly to N1,486/$ on Wednesday.

The exchange-rate gap between the official and parallel markets stood at N63, narrowing from N73 recorded last week, which was the widest margin since February 2025.

On a year-to-date basis, the naira opened 2026 at N1,428/$, indicating sustained pressure despite periods of relative stability at the official market.

Overall, the data suggests that while official rates show modest convergence, intense foreign exchange demand continues to drive volatility in the parallel market.

More insights

The figures show that the current parallel-market rally is the worst since mid-December 2025, when the naira fell to N1,492/$ on December 17, 2025.

Between December 11 and 22, 2025, the currency traded consistently above the N1,480/$ psychological threshold, underscoring recurring stress in the informal FX market.

The persistence of wide differentials reflects structural bottlenecks that continue to shape the naira’s performance. Meanwhile, relative stability at the official market mirrors the Central Bank’s ongoing reforms and targeted interventions to manage currency flows.

This contrast suggests that despite brief episodes of strength at the official window, deeper structural pressures continue to dominate parallel-market trading.

What you should know

Global currency trends are also influencing Nigeria’s FX dynamics. The U.S. dollar held firm against major currencies after President Donald Trump withdrew threats to impose tariffs on several European NATO countries.

Trump cited a framework agreement with NATO over Greenland as the basis for dropping the tariff plans, easing investor concerns after earlier threats triggered widespread sell-offs in U.S. assets.

The dollar traded at $1.1685 per euro and was flat at 0.7953 Swiss franc, while the Australian dollar climbed to a 15-month high on the back of strong employment data and improved risk sentiment.

Analysts note that sustained improvement in the naira will depend on stronger foreign exchange inflows, improved investor confidence, and reduced dependence on the parallel market.

Earlier this week, the naira slipped marginally at the official market, closing at N1,420.5/$ on Monday, as global dollar sentiment softened amid renewed concerns over U.S. economic and geopolitical risks.

EFCC Recovers N1.23 Billion from Sujimoto Over Enugu Smart Schools Project

The Economic and Financial Crimes Commission (EFCC) has recovered N1.234 billion from Sujimoto Luxury Construction Limited and returned the funds to the Enugu State Government.

The recovery was confirmed in a statement issued by the anti-graft agency via its official X account on Wednesday, January 21, 2026.

The action followed a formal petition submitted by the Enugu State Government after Sujimoto failed to execute a contract for the construction of 22 smart schools, despite receiving advance payments totaling more than N2.28 billion.

What the EFCC is saying

According to the commission, it commenced investigations after receiving a request from the Enugu State Government in February 2025, alleging that the construction firm diverted funds meant for the smart schools project.

The petition accused the company, led by Olasijibomi Ogundele, of nonperformance, breach of contract, and misapplication of public funds, which the state government said pointed to an intent to defraud.

EFCC operatives from the Special Task Fraud Section of the Enugu Zonal Directorate investigated the matter and successfully recovered N1,234,350,000 on behalf of the state.

“In line with its unwavering commitment to the fight against corruption, economic and financial crimes, and the recovery of misappropriated public funds, the EFCC on Wednesday, January 21, 2026, handed over the sum of N1,234,350,000 to the Enugu State Government. The funds were recovered from Sujimoto Luxury Construction Limited for failure to honour its agreement with the state over the construction of 22 smart schools,” the commission stated.

More insights

The EFCC reiterated that contractors entrusted with public funds must comply strictly with the Public Procurement Act and uphold the principles of transparency, accountability, and integrity.

The commission added that it would continue to pursue individuals and companies involved in the diversion or mismanagement of public resources, regardless of their status.

Officials of the Enugu State Government, who received the recovered funds, commended the EFCC for its professionalism and thorough investigation, noting that the recovery would help mitigate financial losses suffered by the state.

What you should know

In September 2025, the EFCC declared Ogundele wanted over alleged diversion of funds and money laundering linked to the N5.7 billion 22 Smart Green Schools project.

The businessman later released a video denying any wrongdoing, blaming project delays on rising construction costs, inflation, manpower shortages, security concerns, and broader economic challenges. He maintained that engineers had been mobilised to project sites and that he remained committed to completing the schools.

Following continued delays, the Enugu State Government formally petitioned the EFCC, alleging that Ogundele disappeared after receiving about 50% of the contract sum, leaving the projects largely abandoned.

Subsequent investigations revealed minimal work at most sites, with several locations lacking proper excavation and structural compliance. A joint inspection carried out by officials of the Enugu Ministry of Works and the EFCC in May 2025 reportedly confirmed the lack of substantial progress across multiple project locations.

The recovery of N1.234 billion represents a partial return of funds linked to the stalled smart schools project and underscores ongoing efforts by the EFCC to recover misappropriated public resources.

‹ Previous
1
…
4
5
6
7
8
…
63
Next ›