Business

The Borno State Government has disbursed N1 billion to small and medium-scale enterprises (SMEs) across five local government areas in the southern senatorial district of the state, reinforcing its commitment to grassroots economic recovery and post-insurgency development. The intervention, unveiled on Thursday, targets entrepreneurs operating in Biu, Hawul, Shani, Bayo, and Kwaya-Kusar.

According to reports by the News Agency of Nigeria (NAN), the disbursement is designed to support small business owners, improve business sustainability in rural communities, and stimulate local economic activity in areas that were severely affected by years of insurgency and insecurity.

What the state government is saying

Governor Babagana Zulum said the direct injection of capital into the SME sector is a critical strategy for driving inclusive growth, reducing poverty, and fostering long-term stability in Borno’s rural communities. Speaking at the flag-off ceremony in Biu, the governor explained that empowering local entrepreneurs remains central to the state’s recovery agenda.

According to him, small businesses form the backbone of local economies, particularly in post-conflict regions where formal employment opportunities are limited. By providing financial support to SMEs, the government aims to enable beneficiaries to expand operations, retain existing jobs, and create new ones.

Zulum noted that the initiative aligns with the state’s broader economic recovery framework, which prioritises self-reliance over prolonged dependence on humanitarian assistance. He stressed that revitalising small businesses would help restore livelihoods, strengthen household incomes, and reduce social vulnerabilities that often fuel unrest.

“This direct support to entrepreneurs is essential for grassroots development and for building a culture of self-reliance in communities recovering from years of insecurity,” the governor was quoted as saying.

Focus on rural inclusion and post-insurgency recovery

The SME disbursement reflects the Borno State Government’s deliberate focus on rural inclusion, particularly in the southern part of the state, which has been relatively stable compared to other areas but still bears the economic scars of prolonged conflict.

Beneficiaries were drawn from a wide range of sectors, including trading, agriculture, agro-processing, services, and small-scale manufacturing. State officials said the spread of beneficiaries across multiple local government areas was intended to ensure balanced development and prevent the concentration of support in a single location.

By targeting SMEs in these communities, the government hopes to unlock local value chains, encourage entrepreneurship among youth and women, and deepen economic participation at the community level.

Additional interventions announced

Beyond the N1 billion SME intervention, Governor Zulum announced several complementary initiatives aimed at addressing youth unemployment, education, healthcare, and infrastructure gaps in Biu and surrounding areas.

He approved the immediate employment of 200 youths from Biu to curb youth restiveness and provide income opportunities. The governor also inaugurated a remodeled Second Chance School, designed to offer vulnerable girls and women access to basic education, vocational skills training, and digital literacy.

In the health sector, Zulum visited the Biu Specialist Hospital, where volunteer health workers were formally employed to strengthen service delivery. He also inspected a 100-unit teachers’ housing estate under construction, a project aimed at attracting and retaining qualified teachers in public schools across the district.

Additionally, the governor directed the commencement of rehabilitation work on the Borno State Hotel Annexe in Biu, part of a broader infrastructure renewal drive to improve public assets and stimulate local economic activity.

What you should know

The N1 billion SME disbursement builds on a series of economic empowerment initiatives implemented by the Borno State Government in recent years. In March 2025, the state approved N1 billion in grants for 9,403 MSMEs in Biu and Hawul LGAs, targeting entrepreneurs, youths, and vulnerable households.

Earlier, in July 2024, the government disbursed N450 million to about 45,000 widows and vulnerable women as palliative support, aimed at helping families rebuild livelihoods disrupted by the Boko Haram crisis.

Taken together, these interventions underscore the state government’s strategy of combining humanitarian support with economic empowerment, as Borno continues its transition from emergency response to sustainable development and long-term economic recovery.

Nigeria’s business activity sustained its expansion streak for the twelfth consecutive month in December 2025, underscoring the economy’s resilience despite mounting cost pressures and weakening consumer demand. This assessment is contained in the latest NESG–Stanbic IBTC Business Confidence Monitor (BCM), jointly produced by the Nigerian Economic Summit Group (NESG) and Stanbic IBTC Bank, and titled “Rising Uncertainty Dampens Nigeria’s Current Business Conditions.”

While the headline indicators remained firmly in expansionary territory, the report paints a picture of an economy that is growing more cautiously. Structural bottlenecks, elevated operating costs, and softer demand conditions are increasingly shaping business sentiment, suggesting that momentum, though intact, is moderating.

Growth moderates but remains resilient

According to the report, the Current Business Performance Index eased slightly to 112.0 points in December 2025, down from 113.3 points recorded in November. Despite this marginal slowdown, the index remained well above the 100-point threshold that separates expansion from contraction and stood 11.2 points higher than its level in December 2024. This indicates that business conditions are still significantly stronger than a year earlier.

The BCM noted that the moderation reflects a more cautious stance among businesses, driven largely by subdued consumer purchasing power and persistent cost pressures. Nevertheless, all five major sectors tracked—Agriculture, Manufacturing, Trade, Non-Manufacturing, and Services—remained in expansion during the month, even though three sectors recorded slower growth compared with November.

Sectoral performance highlights

Agriculture emerged as the strongest-performing sector in December, with its BCM index rising by 9.6 points to 112.9. The improvement was attributed to heightened seasonal demand during the festive period, alongside stronger activity in Crop Production, Livestock, and Agro-Allied sub-sectors. Notably, Livestock and Agro-Allied activities exited contraction territory, posting indices of 105.2 and 108.2 points respectively.

Manufacturing also recorded modest improvement, with its index climbing to 117.9 points. Growth in this sector was supported by increased output in Food, Beverages and Tobacco; Textile and Apparel; Plastic and Rubber Products; as well as Electrical and Electronics manufacturing. However, the report highlighted ongoing structural challenges, as sub-sectors such as Cement, Basic Metal, Iron and Steel, and Wood Products slipped into contraction, weighed down by high production costs and supply constraints.

Trade, Non-Manufacturing, and Services all maintained expansion but lost momentum. The Trade index declined to 123.8 points from 132.9 points in November, as festive-season sales were dampened by weak consumer purchasing power. Services recorded its second consecutive slowdown, reflecting weaker activity in Real Estate, Broadcasting, Telecommunications, and Professional Services.

Rising costs and business caution

Across sectors, key sub-indices—including production levels, financial conditions, supply orders, access to credit, and cash flow—recorded moderate declines, signaling growing caution among firms. At the same time, the cost of doing business rose sharply, with the cost index increasing to 61.6 points from 54.3 in November. Surveyed firms cited unreliable electricity supply, insecurity, raw material shortages, rising input prices, and weakening sales as major constraints to operations.

These pressures continue to weigh on margins and investment decisions, limiting the pace at which businesses can scale operations despite overall economic expansion.

What it means for the economy

The December 2025 BCM data suggest that Nigeria’s economy remains on a growth path but is increasingly constrained by long-standing structural issues and near-term cost pressures. Although the Future Business Expectation Index dipped slightly to 132.6 points, it remained above its level from December 2024, indicating that businesses still expect gradual improvement in the months ahead.

However, the moderation in expectations reflects uncertainty around policy reforms, operating conditions, and broader macroeconomic risks. Sustaining momentum into 2026 will likely require targeted reforms to reduce operating costs, improve infrastructure, enhance security, and strengthen consumer purchasing power.

Supporting indicators remain positive

Complementing the BCM findings, the Central Bank of Nigeria (CBN) reported that Nigeria’s private sector expanded at its fastest pace of 2025 in December, with the Composite Purchasing Managers’ Index (PMI) rising to 57.6 points. In addition, Stanbic IBTC’s November 2025 PMI report noted that input cost inflation eased to its weakest level in nearly five years, offering some relief to businesses.

Overall, the data portray an economy that is expanding steadily but cautiously—resilient in the face of challenges, yet in need of deeper structural improvements to unlock stronger, more inclusive growth in the year ahead.

Presco Plc has announced the successful completion of its recently concluded Rights Issue, which achieved an impressive 103% subscription rate, underscoring robust investor confidence in the company’s fundamentals, strategy, and long-term growth prospects. The oversubscription reflects strong participation from existing shareholders who not only took up their rights in full but also applied for additional shares, pushing demand beyond the size of the offer.

The outcome positions Presco Plc as one of the notable success stories in Nigeria’s capital market at a time when liquidity conditions remain tight and investors are increasingly selective. In a cautious environment characterised by rising interest rates, competition from fixed-income instruments, and heightened risk aversion, the ability of Presco Plc to attract demand in excess of its offer size highlights the depth of confidence the company continues to command among institutional investors, pension fund administrators, and retail shareholders.

Market analysts note that oversubscribed rights issues are becoming less common in the current cycle, making Presco’s result particularly significant. It signals that shareholders are convinced about the company’s earnings resilience, operational efficiency, and capacity to deploy new capital profitably. The strong response also suggests confidence in management’s execution track record and governance framework, which have been critical in sustaining performance across volatile market conditions.

Beyond the headline subscription figure, the Rights Issue represents a strategic strengthening of Presco Plc’s balance sheet. The additional capital provides the company with greater financial flexibility to support expansion initiatives, optimise its capital structure, and deepen investments across its integrated value chain. As a fully integrated edible oils and fats company, Presco operates across oil palm cultivation, milling, refining, and the production of specialty fats and oils, giving it a level of operational control and cost efficiency that few peers can match.

The successful capital raise further reinforces Presco’s ability to pursue disciplined growth while maintaining financial stability. With rising demand for edible oils and related products across Nigeria and the wider West African region, the strengthened balance sheet positions the company to scale production capacity, improve yields, and invest in efficiency-enhancing technologies without overleveraging.

Market participants have also interpreted the oversubscription as a vote of confidence in Presco’s long-term vision and sustainability focus. The company has consistently emphasised value creation through responsible agricultural practices, efficient processing, and regional expansion, supported by its subsidiaries, including Ghana Oil Palm Development Company Limited (GOPDC) and Siat Nigeria Limited. These assets extend Presco’s footprint beyond Nigeria and enhance its leadership position across the West African edible oils market.

The strong investor response to Presco’s Rights Issue comes against the backdrop of renewed activity and confidence in Nigeria’s corporate and capital markets, evidenced by major transactions across sectors. Recent developments in the energy space, such as the acquisition by Heirs Energies of a significant equity stake in Seplat Energy Plc, have highlighted growing capacity for large-scale African-led financing and investment. Within this broader context, Presco’s oversubscribed offer reinforces the narrative that well-governed Nigerian companies with clear strategies can still attract strong capital market support.

Overall, the 103% subscription of Presco Plc’s Rights Issue stands as a clear endorsement of the company’s strategy, execution capability, and governance standards. It reflects not only confidence in its current financial performance but also belief in its ability to deliver sustainable long-term value for shareholders. As Presco moves forward with a strengthened capital base, the company appears well positioned to deepen its market leadership, support regional food supply chains, and drive profitable growth in the years ahead.

Aradel Holdings Plc has completed the acquisition of an additional 40% equity stake in ND Western Limited, lifting its total ownership to 81.67% and effectively converting ND Western into a subsidiary of Aradel Energy Limited. The milestone transaction marks a major step in Aradel’s long-term strategy to consolidate its upstream energy portfolio and deepen operational control across key producing assets.

The development was disclosed in a corporate filing submitted to the Nigerian Exchange (NGX) on December 31, 2025, confirming that all conditions precedent to the transaction had been satisfied and the consolidation formally concluded. The deal was first announced on October 24, 2025, with the latest disclosure signalling its successful close.

Beyond strengthening Aradel’s grip on ND Western, the transaction also significantly increases the group’s indirect interest in Renaissance Africa Energy Company Limited. Aradel’s stake in Renaissance has risen from 33.3% to 53.3%, giving it majority control of the joint venture that operates the prolific OML 34 asset in Nigeria’s Western Niger Delta. This enhanced ownership structure places Aradel in a stronger position to influence strategic, operational, and investment decisions across the asset’s value chain.

Strategic rationale behind the acquisition

In its NGX filing, Aradel described the acquisition as fully aligned with its broader vision of portfolio optimisation and sustainable value creation. According to the company, increasing its equity interest in ND Western enhances scale, improves governance, and unlocks efficiencies that are critical in a consolidating energy landscape.

Speaking on the transaction, Aradel’s Chief Executive Officer, Adegbitte Falade, said the deal reinforces the company’s ambition to remain a leading indigenous integrated energy player. He noted that deeper ownership would allow Aradel to drive long-term shareholder value through improved operational leverage, tighter cost control, and more coherent capital allocation across its assets.

The company’s Chief Financial Officer, Adegbola Adesina, confirmed that the acquisition received all required regulatory approvals, including clearances from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Federal Competition & Consumer Protection Commission (FCCPC). This regulatory sign-off underscores the transaction’s compliance with Nigeria’s petroleum and competition laws.

Why ND Western matters

ND Western holds a 45% participating interest in Oil Mining Lease (OML) 34, one of Nigeria’s most productive onshore oil and gas assets. The company also owns 50% of Renaissance Africa Energy Company Limited, the joint venture responsible for operating OML 34. With Aradel now controlling more than 80% of ND Western, it gains expanded operational influence not only within ND Western itself but also across the Renaissance JV framework.

This majority control offers Aradel several strategic advantages, including stronger oversight of production activities, enhanced governance, and greater flexibility in planning long-term investments across exploration, development, and production. It also improves Aradel’s ability to respond swiftly to market conditions, deploy capital efficiently, and pursue synergies across its upstream operations.

Implications for the sector

The acquisition highlights a broader trend of consolidation among Nigeria’s indigenous energy companies, many of which are expanding their footprints as international oil majors divest from onshore assets. For Aradel, the deal strengthens its competitive positioning at a time when scale and operational efficiency are increasingly critical to sustaining profitability in the upstream sector.

By securing controlling interests in both ND Western and Renaissance, Aradel is better positioned to pursue future partnerships, raise capital, and optimise production from one of the country’s most valuable oil assets. The move also signals confidence in Nigeria’s upstream potential, even amid regulatory changes and evolving global energy dynamics.

Market reaction and performance

Despite the strategic significance of the acquisition, Aradel’s shares closed at N670.00 on December 31, 2025, representing a 1.5% decline from the previous close of N679.90. The muted price reaction suggests that investors may still be assessing the full financial and operational implications of the deal.

For context, Aradel opened trading in 2025 at N598.00 and has posted a year-to-date gain of about 12%, ranking 105th on the NGX by annual performance. The stock reached a 2025 high of N869.00 on October 28 before moderating to current levels. In the fourth quarter of 2025, Aradel ranked as the 41st most traded stock on the Exchange, with 196 million shares changing hands across 44,117 deals valued at N134 billion.

Overall, the completion of the ND Western acquisition represents a defining moment for Aradel Holdings, reinforcing its upstream ambitions and laying the groundwork for sustained growth and value creation in Nigeria’s evolving energy sector.