Business

Nigeria spent more than N1 trillion on iron and steel imports in 2025, despite having the largely idle Ajaokuta Steel Complex in Kogi State, according to data from the National Bureau of Statistics. The figure was part of an average annual import bill of about N526 billion recorded over the past six years. The Minister of Steel Development, Prince Shuaibu Abubakar Audu, however, estimated that Nigeria spends about $4 billion, or N5.6 trillion, annually on iron and steel imports. Ajaokuta Steel Complex was designed to produce up to 5.2 million tonnes of steel annually and supply products for construction, manufacturing, transportation, infrastructure and other industries. The complex, which has remained largely inactive for more than four decades, was also expected to create hundreds of thousands of direct jobs, generate millions of indirect jobs and reduce Nigeria’s dependence on imported steel. The President of the National Association of Steel Workers, Oyabugbe Sunday, said Nigeria was losing out by exporting raw materials while importing finished steel products at higher costs. He said reviving Ajaokuta would reduce foreign exchange outflows, increase local value addition and strengthen Nigeria’s industrial base. Several attempts by successive administrations to revive or concession the plant have failed. Previous arrangements involving private investors collapsed amid allegations of non-performance, lack of transparency and legal disputes. In 2019, Russia offered to provide about $460 million in funding and technical support to complete Ajaokuta, while Afreximbank reportedly pledged an additional $1 billion. However, the agreement was not completed before the Buhari administration left office. The Federal Government also established the Ajaokuta Presidential Project Implementation Team in 2020 to accelerate the plant’s revival, but the initiative reportedly made little progress amid alleged conflicts of interest. The revival of Ajaokuta was also one of President Bola Tinubu’s campaign promises in 2023. While campaigning in Kogi State, Tinubu pledged to revive the steel complex and dredge the River Niger to support transportation and logistics. Three years into his administration, however, the steel complex remains largely idle, while Nigeria continues to spend billions of naira on imported steel products.

Nigeria’s formal remittance inflows rose to a record $947 million in July 2026, bringing the country closer to the Central Bank of Nigeria’s target of attracting at least $1 billion monthly through official channels. The July figure represented the highest monthly inflow recorded through International Money Transfer Operators and followed a series of reforms introduced by the CBN to strengthen formal remittance channels. Between January and July 2026, total inflows through IMTOs reached $3.8 billion, representing a 50.2 per cent increase compared with the same period in 2025. CBN Governor, Olayemi Cardoso, said the latest figure placed Nigeria about $53 million away from the $1 billion monthly target. Cardoso said the increase was linked to measures aimed at making formal remittance channels more competitive, transparent and accessible. The reforms included a more market-driven exchange rate, changes to regulations governing IMTOs and the introduction of the Non-Resident Bank Verification Number. The CBN also tightened requirements for remittance transactions to pass through designated settlement accounts with authorised dealer banks. The apex bank said the growth in formal remittances could improve foreign exchange liquidity and transparency while supporting household consumption, investment and Nigeria’s external financing position. Cardoso said the CBN’s goal was not only to reach the $1 billion monthly mark but to sustain inflows above that level. He added that the bank would continue working with diaspora communities, banks and money transfer operators to reduce transaction barriers and encourage more Nigerians abroad to use formal remittance channels.

Meta, the parent company of WhatsApp, announced that it would begin charging businesses for certain messages sent through the WhatsApp Business Platform from October 1, 2026. The company disclosed the pricing change in a WhatsApp Business Platform update issued in July, stating that charges for service messages would resume from October 1. The new fees would affect companies using the official WhatsApp Business Platform, formerly known as the WhatsApp Business API, to manage customer conversations on a large scale. Banks, fintech companies, e-commerce platforms, telecommunications operators, logistics firms and large retailers were among the businesses expected to be affected. However, the new charges would not affect ordinary WhatsApp users or most small businesses using the standard WhatsApp Business application on their phones. Under the existing system, when a customer sent a message to a business, a 24-hour customer service window was opened, allowing businesses to respond with free-form service and certain utility messages without paying Meta. From October 1, businesses would instead be charged on a per-message basis for service messages sent during the customer service window. Meta also stated that utility messages, including payment confirmations, order updates and delivery notifications, would attract charges when sent in response to users within an open 24-hour customer service window. The company warned businesses and Solution Providers to add a payment method before the new charges took effect. Businesses without a payment method on file by September 30 would have their service messages stopped once the charges became effective. For Nigerian businesses, a chargeable utility or service message was expected to cost about $0.0101, equivalent to roughly ₦14, based on an exchange rate of about ₦1,340 to the dollar. Marketing messages were considerably more expensive at about $0.062, or approximately ₦84. Meta’s charges would be separate from any additional fees imposed by third-party Business Solution Providers. The development meant that Nigerian companies that relied heavily on WhatsApp for customer support and transactional communication would have to factor the new per-message fees into their operating costs from October.

A five-day gridlock caused by deteriorating roads across the South-South has disrupted transportation, businesses and economic activities in the region, with the Benin-Sapele-Effurun Road among the worst affected. Manufacturers said they had lost more than N500 billion due to factory shutdowns, trapped raw materials and damaged goods. Traders and distributors have also reported losses as perishable products remained stuck on the roads. The gridlock has spread across Benin City and other parts of Edo State, while motorists using the Benin-Auchi and Benin-Agbor-Onitsha roads have also faced severe delays. Some travellers who previously spent six to 10 hours between the South-East and South-West now reportedly spend up to 24 hours on the road. Two major interstate transport companies have suspended services along the Lagos-Warri route after buses remained stranded for days. GUO had reportedly raised its Lagos-Warri fare to N55,000 before suspending operations. The Federal Government has announced plans to intervene, with the Minister of Works, Dave Umahi, expected to visit the affected corridor and oversee palliative works. Meanwhile, former presidential candidate Peter Obi criticised the focus on new road projects, arguing that the government should prioritise the reconstruction and maintenance of existing highways. The Centre for the Promotion of Private Enterprise also warned that the crisis was threatening investment, food security, production and supply chains, as trucks carrying essential goods, including fuel and agricultural products, remained trapped. Manufacturers and business leaders urged the government to urgently restore the affected roads, warning that prolonged inaction could worsen fuel shortages, food losses and business closures.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reaffirmed its support for Shell Nigeria’s operations as the Federal Government seeks to unlock about $50 billion in deep offshore investments, with the estimated $10 billion Bonga South West project expected to play a major role. The NUPRC Chief Executive, Oritsemeyiwa Eyesan, gave the assurance during a meeting with Shell Nigeria’s newly appointed Executive Vice President and Country Chair, Elohor Aiboni, at the commission’s headquarters in Abuja. The discussions focused on Shell’s ongoing projects and efforts by the Federal Government to attract fresh investment into Nigeria’s deep offshore oil sector. Eyesan said the commission remained committed to supporting industry operators as Nigeria targets crude oil production of three million barrels per day by 2030. Aiboni assumed her new position on August 1, 2026, becoming the first woman to hold the combined role of Executive Vice President and Country Chair of Shell Nigeria. She succeeded Marno de Jong, who retired after more than six years leading the company’s Nigerian operations. Aiboni has spent over 24 years with Shell, working across its Nigerian onshore and offshore businesses as well as international assignments in Kazakhstan and Brunei. She previously became the first female Managing Director of Shell Nigeria Exploration and Production Company Limited in 2021. Meanwhile, the Human and Environmental Development Agenda (HEDA Resource Centre) has urged NUPRC to publicly disclose how it plans to address outstanding environmental and decommissioning liabilities linked to a proposed transaction involving TotalEnergies EP Nigeria Limited. HEDA called on the commission to carefully assess the environmental and financial implications before approving TotalEnergies’ proposed sale of its 10 per cent non-operated stake in oil licences operated by the Renaissance Africa Energy Joint Venture. The organisation said the review was necessary because of longstanding environmental pollution associated with assets previously operated by the Shell Petroleum Development Company joint venture. It urged authorities to ensure that responsibility for remediation was not transferred to an entity without the capacity to meet the obligations.

Twenty-four companies listed on the Nigerian Exchange Limited (NGX) now account for 74.8 per cent of the total market capitalisation of Nigeria’s equities market, highlighting the dominance of a relatively small group of firms. As of August 17, 2026, the companies had a combined market capitalisation of N117.01 trillion, out of the NGX’s total market value of N156.52 trillion. The overall market capitalisation has increased by N57.14 trillion, or 57.5 per cent, from N99.38 trillion recorded at the end of 2025. The sharp rise has been driven largely by strong performances from several large-cap stocks. However, analysts warned that the concentration of market value in a few companies means their share-price movements could have a major influence on the wider market. Dangote Cement overtakes MTN Dangote Cement emerged as the most capitalised company on the NGX, overtaking MTN Nigeria. The 24 leading companies comprise nine banks, six consumer goods firms, three industrial goods companies, three energy companies, one consumer services company and one telecommunications company. The companies include Dangote Cement, MTN Nigeria, BUA Foods, BUA Cement, Aradel Holdings, First Holdco, HBM Nigeria, Zenith Bank, GTCO, Stanbic IBTC Holdings, Transcorp Hotels, Presco, Nestlé Nigeria, Nigerian Breweries, Geregu Power, UBA, International Breweries, Transcorp Power, Access Holdings, Fidelity Bank, Okomu Oil Palm, Ecobank Transnational Incorporated and Wema Bank. Banks maintain strong presence The banking sector accounted for a significant portion of the highly valued stocks. First Holdco led the banks with a market capitalisation of N6.37 trillion, followed by Zenith Bank at N5.04 trillion and GTCO at N4.70 trillion. Stanbic IBTC Holdings had N2.56 trillion, UBA N1.99 trillion, Access Holdings N1.45 trillion and Fidelity Bank N1.38 trillion. Ecobank Transnational Incorporated and Wema Bank recorded N1.27 trillion and N1.16 trillion respectively. Analysts attributed the strong performance of banking stocks partly to the sector’s recapitalisation exercise and improved investor sentiment. BUA Foods leads consumer goods BUA Foods was the most capitalised company in the consumer goods sector, with a market value of N13.69 trillion. Presco followed with N2.40 trillion, while Nestlé Nigeria stood at N2.22 trillion. Nigerian Breweries and International Breweries recorded N2.10 trillion and N1.79 trillion respectively. Despite improved investor expectations, the sector continues to face challenges from high production costs, inflation and weak consumer purchasing power. Dangote Cement leads industrial stocks Dangote Cement dominated the industrial goods sector with a market capitalisation of N17.15 trillion. BUA Cement followed with N13.69 trillion, while HBM Nigeria recorded N5.38 trillion. The figures further showed the significant role of large-cap industrial stocks in driving the overall growth of the Nigerian equities market. Energy sector records strong valuations Seplat Energy and Aradel Holdings led the energy sector, each recording a market capitalisation of N6.72 trillion. Geregu Power followed with N2.06 trillion, while Transcorp Power recorded N1.65 trillion. Analysts divided over investment prospects Analysts maintained mixed views on the investment prospects of stocks listed on the NGX. Of 32 stocks assessed, 17 received Buy or Strong Buy ratings, while 12 were rated Sell or Strong Sell. Three stocks received Neutral ratings. Analysts advised investors to consider factors such as earnings growth, company valuations, debt levels, cash flow, dividend prospects and return on equity rather than relying solely on recent share-price gains. Huge gains recorded by some stocks Several companies recorded extraordinary year-to-date gains. Zichis Agro Allied Industries topped the gainers, rising 1,744.22 per cent to N18.35 per share. SCOA Nigeria gained 365.49 per cent to N33.05, while Infinity Trust Mortgage Bank rose 221.43 per cent to N11.25. Berger Paints Nigeria increased by 207.50 per cent to N147.60, while Premier Paints gained 204 per cent to N30.40. First Holdco rose 198.51 per cent to N140, Vitafoam Nigeria gained 153.04 per cent to N194, while HBM Nigeria appreciated by 149.25 per cent to N334. Some investors record heavy losses Despite the broad market rally, several stocks recorded significant declines. Sovereign Trust Insurance was the biggest loser, falling 50.39 per cent to N1.89 per share. Ellah Lakes declined 41.52 per cent to N8.10, while Guinea Insurance dropped 43.37 per cent to N0.76. SUNU Assurances fell 39.64 per cent to N3.32, while Austin Laz declined 39.06 per cent to N2.84. Other major losers included Royal Exchange, Triple Gee & Company, Champion Breweries, Universal Insurance and Transcorp Power. Asset size tells a different story The ranking changed when companies were assessed according to total assets rather than market capitalisation. Ecobank Transnational Incorporated had the largest total assets in Q2 2026 at N49.15 trillion, followed by First Holdco with N30.65 trillion. Aradel Holdings ranked third with N10.88 trillion, while FCMB had N8.36 trillion and Oando N7.89 trillion. Dangote Cement recorded N6.62 trillion in assets, MTN Nigeria N5.97 trillion, Sterling Holdings N4.67 trillion, BUA Cement N1.92 trillion and BUA Foods N1.67 trillion. Analysts, however, stressed that a large asset base does not automatically translate into profitability or strong returns for shareholders, particularly when assets are heavily financed by liabilities. Negative equity raises concerns The Q2 2026 figures also highlighted differences in the financial strength of listed companies. While several firms recorded positive shareholders’ equity, Aradel Holdings had negative equity of N2.16 trillion despite total assets of N10.88 trillion. Oando also recorded negative equity of N530.45 billion against assets of N7.89 trillion. Analysts said investors should examine companies with negative equity carefully, particularly their cash flows, debt levels and plans for recapitalisation or restructuring. Market analyst David Adonri, Chief Executive Officer of Highcap Securities Limited, said the concentration of more than 70 per cent of market capitalisation among just 24 companies showed that the market’s headline performance was being driven largely by a small number of major stocks. He advised investors to look beyond the All-Share Index and assess individual companies based on their earnings and valuations. Another analyst noted that the difference between the Buy and Sell recommendations demonstrated that the market rally had created both investment opportunities and valuation risks.