Business

Jaiz Bank tops stocks as equities close at N485bn

Published

11 months ago

July 22, 2024

Jaiz Bank tops stocks as equities close at N485bn

Nigeria’s premier and largest non-interest bank, Jaiz Bank Plc, was the most sought after stock at the stock market as investors scrambled to take positions in the bank after official confirmation of its recent recapitalisation.

The board of Jaiz Bank announced that the bank plans to scale up its capital base to N70 billion, after it successfully raised additional N10.4 billion new equity capital through a recent private placement.

The new capital brought the bank’s share capital and share premium to N18.7 billion, N1.3 billion below Central Bank of Nigeria (CBN)’s new minimum capital requirement of N20 billion.

Jaiz Bank is one of the three banks with highest relevant minimum capital base, as defined by the CBN. Banks have up till March 2026 to comply with the new minimum capital requirements for their various licenses.

Jaiz Bank was the most active stock at the stock market in a rebound that saw Nigerian equities closing weekend with net capital gain of N485.4 billion.

Transactions on Jaiz Bank accounted for 686.93 million shares valued at N1.49 billion in 955 deals, the highest by any stock for the week. Cutix Plc occupied a distant second with a turnover of 232.07 million shares worth N1.44 billion in 822 deals. FCMB Group placed third with a turnover of 220.7 million shares worth N1.71 billion in 924 deals.

Altogether, the three most active stocks accounted for 1.14 billion shares worth N4.63 billion in 2,701 deals, representing 40.32 per cent and 10.93 per cent of the total equity turnover volume and value respectively.

Total turnover at the Nigerian Exchange (NGX) rose to 2.827 billion shares worth N42.366 billion in 44,277 deals last week as against 2.765 billion shares valued at N85.230 billion traded in 40,796 deals two weeks ago.

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The banking-led financial services sector accounted for more than three quarters of transactions at the market, with a sectoral turnover of 2.179 billion shares valued at N30.667 billion traded in 25,260 deals, representing 77.08 per cent and 72.38 per cent of the total equity turnover volume and value respectively. The industrial goods sector was a distant second with a turnover of 246.921 million shares worth N2.039 billion in 2,068 deals while the oil and gas sector placed third with a turnover of 107.218 million shares worth N1.704 billion in 3,128 deals.

Benchmark indices indicated average gain of 0.87 per cent during the week, equivalent to net capital gain of N485.4 billion. The All Share Index (ASI)-the value-based common index that tracks all share prices at the NGX, rose from its week’s opening index of 99,671.28 points to close at 100,539.40 points.

Aggregate market value of all quoted equities also increased correspondingly from the week’s opening value of N56.441 trillion to close weekend at N56.929 trillion. The market capitalisation was slightly moderated by the delisting of three companies during the week.

The market sentiment was generally positive with more gainers that losers. There were 37 gainers and 34 losers last week compared with 34 gainers and 38 losers recorded in the previous week.

Chairman, Jaiz Bank Plc, Alhaji Mustapha Bintube, last week said the bank plans to grow its capital base to N70 billion by the end of this year.

He pointed out that the bank is also poised for another impressive performance in 2024, noting that half year profit for 2024 had already surpassed the bank’s full-year profit of N11 billion in 2023.

According to him, from its humble beginning of initial capital of N6 billion in 2012, Jaiz Bank has grown consistently to become a dominant ethical bank in the West African region.

Bintube said the bank would continue to reflect its growth in dividend payment to shareholders, promising to increase the dividend payouts in the years ahead.

Managing Director, Jaiz Bank Plc, Haruna Musa, said the bank was working to be the first bank to complete its recapitalisation process.

According to him, the bank would soon launch a public offer to raise additional equity capital.

Jaiz Bank tops stocks as equities close at N485bn

Business

Iran-Israel war: Petrol nears N1,000/L, further hike imminent

Published

9 hours ago

June 23, 2025

Trends Admin

Iran-Israel war: Petrol nears N1,000/L, further hike imminent

Filling stations across the country have adjusted the pump price of premium motor spirit (PMS), otherwise known as petrol, with a litre sold at almost N1,000 across the country.

This followed the recent increase in the price of crude oil on the global market, triggered by the escalating Israel-Iran hostilities, with marketing advising Nigerians to brace up for further increases unless there is a de-escalation of the current tension.

Newstrends reports that since the conflict started, there has been severe damage to critical oil infrastructure, triggering a sharp spike in global oil prices.

Spike in crude prices

As soon as the conflict started, Brent crude increased by 11.71% from $66.45 penultimate Monday to $74.23 after hitting an intraday high of $78.50, the highest since January 27.

Also over the penultimate weekend, U.S. West Texas Intermediate crude finished at $72.98 a barrel, up $4.94, or 7.62%.

Similarly, WTI jumped over 14% to its highest since January 21 at $77.62. WTI climbed 13% to its level a week ago.

Israel and Iranian hostilities have worsened volatilities in the oil and gas sector as investors are on the edge of price instability amidst fear of escalating Middle East conflict.

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As of yesterday (Sunday), crude prices have rallied above $77 per barrel, slipping from $79 over the weekend. There are fears of further increases following US President Donald Trump’s decision to strike three nuclear facilities in Iran, even as Iran has vowed retaliation.

Fear of further spike as Iran vows retaliation

Analysts say retaliation from Iran may increase crude prices further.

As the third-largest oil producer in the world, Iran accounts for over 24 percent of the oil in the Middle East and over 10 percent of the global oil.

In a worst case scenario, JP Morgan said it sees oil averaging $60 in 2026, but flagged $120–$130 per barrel as a potential range in the event of worst-case outcomes—namely, military conflict and a closure of the Strait of Hormuz, through which one-fifth of global oil flows.

JP Morgan noted that while such escalations could lead to meaningful supply disruption, particularly if Iran’s 2.1 million bpd of exports are cut off, its base case still assumes diplomacy holds.

While increasing prices of crude means more foreign exchange inflows for Nigeria, its flip side is the rise in the price of PMS at the domestic market, with analysts and marketers warning that Nigerians should brace up for more.

Speaking on the rising oil prices, Chief Executive Officer, Centre for the Promotion of Private Enterprises (CPPE), Dr. Muda Yusuf explained that while the surge in crude oil price would impact on foreign exchange earnings, oil being the biggest forex earner for the country, “Economies around the world [Nigeria inclusive] would witness a surge in the price of petrol, diesel, jet fuel, gas and related products in the near term. This would have far reaching implications for many economies and businesses.”

He said, “This would even be more impactful if output performance improves. Crude oil price has surged to $75 per barrel, which is about 15% higher than before the outbreak of the Israeli–Iran conflict.

“This development would also positively impact the country’s foreign reserves, ensure better forex liquidity and ultimately the stability of the naira exchange rate.”

Iran-Israel war: Petrol nears N1,000/L, further hike imminent

Daily Trust

Business

Bank of Agriculture gets FG’s N1.5trn

Published

9 hours ago

June 23, 2025

Trends Admin

Bank of Agriculture gets FG’s N1.5trn

The Federal Government has recapitalized the Bank of Agriculture with N1.5 trillion as part of a broader strategy to enhance food security and support farmers across the country.

Additionally, more than N200 billion has been deployed toward agricultural initiatives, including the distribution of 2.15 million bags of fertilizer and the creation of a comprehensive farmer registry aimed at reaching over 42 million households.

This development was disclosed in a statement signed by Kamorudeen Yusuf, Personal Assistant on Special Duties to the President, on Sunday.

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The statement revealed that the Minister of Agriculture and Food Security, Senator Abubakar Kyari, made the announcement during a high-level meeting with officials from The Gambia’s Ministry of Agriculture in Abuja.

The minister reiterated Nigeria’s dedication to “sustainable mechanization, youth inclusion, and regional collaboration within ECOWAS.”

In response, The Gambia commended Nigeria’s strides in rice production and sought technical assistance to emulate the country’s success in that sector.

Also speaking, Nigeria’s Minister of State for Agriculture, Senator Aliyu Abdullahi, noted that the nation’s advancements in agriculture could serve as a blueprint for the continent. He stated, “Nigeria’s agricultural progress can serve as a guide for Africa in achieving food sovereignty.”

Bank of Agriculture gets FG’s N1.5trn

Business

Dangote refinery raises petrol ex-depot price to N880/litre

Published

2 days ago

June 21, 2025

Trends Admin

Dangote refinery raises petrol ex-depot price to N880/litre

Nigerians may soon pay more for Premium Motor Spirit (PMS) following a fresh hike in ex-depot prices by the Dangote Petroleum Refinery.

The refinery on Friday raised the rate to N880 per litre, up from N825, according to information obtained by Chronicle NG.

This N55 increase is expected to reverberate across the fuel supply chain, potentially pushing pump prices above N900/litre in some areas, particularly those distant from major depots.

The hike comes amid a global decline in crude oil prices. On Friday, Brent crude dropped by 3.02% to $76.47, WTI declined to $74.93, and Murban fell to $76.97. However, this price relief on the international market offers little benefit locally due to ongoing concerns about supply disruptions and exchange rate instability.

Dangote Group President Aliko Dangote attributed the price adjustment to operational costs and an increased reliance on imported crude oil. He disclosed that the refinery is now “increasingly” sourcing crude from the United States due to local shortages.

Reports show that the refinery is projected to import 17.65 million barrels of crude oil between April and July 2025, with 3.65 million barrels already received in the past two months. This development is taking place under the Federal Government’s naira-for-crude policy.

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Addressing the Technical Committee of the One-Stop Shop for the crude and refined products initiative, Dangote explained that the refinery continues to battle crude shortages, necessitating U.S. imports.

On Monday, Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), criticised fuel marketers for inflating prices despite global crude oil price drops.

“If you go online and check the PLAT cost per cubic metre of PMS, convert that to litres and then to our Naira, you will see that with crude at around $60 per barrel, petrol should be retailing between N700 and N750 per litre,”
he said.

Osifo argued that Nigerians should benefit from lower fuel prices when crude prices fall.

“If Nigerians bear the brunt of higher fuel costs, they should be allowed to enjoy the benefit of low pricing.”

The increase now appears to affirm Osifo’s warning, with many depot owners and distributors bracing for new pricing benchmarks. Sources indicate that fuel marketers have been on hold since Tuesday when Dangote paused sales and withheld new PFIs, triggering speculative pricing hikes.

As supply resumes at the new rate, downstream players anticipate widespread adjustments to retail pump prices, raising renewed concern over affordability and inflationary pressure.