Business

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.

The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, has urged Nigeria to take advantage of changing global trade patterns by implementing reforms that will attract investment, boost industrialisation and strengthen its position in global value chains. Speaking during a fireside chat with Central Bank of Nigeria Governor Olayemi Cardoso at the seventh Africa Emerging Markets Forum in Abuja, Okonjo-Iweala said increasing geopolitical tensions and the restructuring of global supply chains present significant opportunities for Nigeria and other African countries. She acknowledged that the global economy is experiencing trade fragmentation and uncertainty but stressed that such challenges also create opportunities for countries willing to improve their competitiveness. According to her, multinational companies are seeking to diversify their manufacturing and sourcing operations following lessons from the COVID-19 pandemic and ongoing geopolitical tensions. She said Africa should position itself as an attractive destination for these investments instead of allowing them to continue flowing mainly to Asia and Latin America. Okonjo-Iweala also highlighted West Africa’s abundant critical mineral resources, noting that the region could build integrated supply chains for renewable energy technologies and electric vehicle batteries through greater regional cooperation. She argued that African countries should work together on processing and manufacturing rather than pursuing isolated national strategies. Despite the opportunities, the WTO chief questioned whether Nigeria is prepared to undertake the governance, infrastructure and regulatory reforms needed to attract long-term investors. She called for the removal of bureaucratic obstacles that discourage businesses and urged policymakers to prioritise efficient leadership and a more investment-friendly environment. On the Federal Government’s economic reforms, Okonjo-Iweala said their success would ultimately depend on whether Nigerians experience tangible improvements in their daily lives. While commending reforms introduced by the Central Bank of Nigeria, she stressed that macroeconomic stability must translate into job creation, business growth and improved living standards to earn public confidence. She also advocated stronger implementation of the African Continental Free Trade Area (AfCFTA), saying increased trade among African countries would reduce dependence on external markets and stimulate regional economic growth. According to her, Africa’s growing middle class and youthful population could become major drivers of development if governments invest in skills development and employment opportunities. Addressing concerns over recent United States tariff measures affecting Nigerian exports, Okonjo-Iweala said the country should focus less on tariff rates and more on expanding and diversifying its export base through value addition and increased production. She further encouraged Nigeria to mobilise domestic capital rather than relying heavily on foreign investment, noting that global financial flows are becoming more constrained. She added that building investor confidence at home is essential, as domestic investment often serves as a signal that attracts international investors. Okonjo-Iweala concluded that Nigeria has the resources and potential to achieve sustained economic growth but emphasised that success will depend on consistent reforms, stronger institutions and policies that encourage investment, industrialisation and regional trade.