The Nigerian National Petroleum Company Limited has said it is ending the practice of financing the Port Harcourt and Warri refineries with loans backed by crude oil production, opting instead for a performance-driven funding model aimed at making the facilities commercially sustainable.

The NNPC said both refineries must become financially self-sustaining, as the national oil company moves to a new commercial model that requires the plants to raise financing for their operations rather than rely on loans.

The Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, disclosed this on Tuesday while speaking at the Nigeria Oil and Gas Conference in Abuja.

According to him, the company’s long-term strategy is to ensure the refineries operate as commercially viable businesses capable of attracting financing on their own.

He said future financing for the refineries would be tied to their productivity and operational performance rather than crude oil volumes.

“You heard me talking about our refineries. We’re moving away from situations where the refineries are taking loans based on barrels and not linked to the productivity and performance of the refineries. We are changing that.

“Our solution has to be that those refineries are able to work, raise their own, and deliver, not more contractors coming to take value. That’s the strategy. That’s sustainability. And that’s what will live beyond us,” Ojulari said.

The declaration marks a significant shift in NNPC’s approach to refinery financing, amid ongoing efforts to reposition the state-owned refineries under commercially sustainable business models.

The NNPC boss explained that the company had already begun restructuring its investment portfolio by eliminating projects that lacked clear financing and profitability prospects.

“We recognise that our portfolio has put NNPC into a lot of problems in the past years, where a lot of infrastructure development projects do not have a clear line of sight to finance. They do not have a clear line of sight to profitability. We eliminated all of that from our portfolio last year,” he said.

He added that the company had introduced a new financing model for major infrastructure projects, citing the Ajaokuta-Kaduna-Kano gas pipeline as an example.

“For the first time, we put in a new financing for infrastructure that has never been done in Nigeria, ‘Project Nexus’, where we are able to put financing against the AKK pipeline based on its own throughput, not from another barrel from anywhere. That is the way we are going,” Ojulari stated.

He said the same commercial principles would underpin NNPC’s refinery ambitions, which he noted would rely on integrated partnerships across engineering, logistics, technology and marketing.

“Our refinery ambition depends on integrated partnership. You can see that across engineering, logistics, technology, and marketing. Our energy transition journey requires collaboration with innovators and researchers, development institutions and new technology,” he added.

Ojulari’s latest remarks come weeks after NNPC signed a Memorandum of Understanding with Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Company Ltd to explore a technical equity partnership for the Port Harcourt and Warri refineries.

The proposed arrangement, which might be modelled after the NLNG ownership structure, could see the Chinese investors acquire about a 51 per cent stake in the facilities as part of efforts to rehabilitate, expand and commercially reposition them.

Under the proposed partnership, the Chinese firms are expected to participate in completing outstanding engineering works, operations and maintenance, capacity expansion, petrochemical integration and gas-based industrial projects around the refinery complexes.

The arrangement is also designed to replace the traditional contractor model with long-term equity participation and joint governance, subject to technical, commercial, financial and legal due diligence before any binding agreement is signed.

During a recent visit to the Warri refinery, Ojulari described the initiative as a strategic move to transform the refineries into profitable and sustainable businesses rather than simply complete rehabilitation projects. He said NNPC was seeking the right technical and financial partners to ensure the facilities operate efficiently and create long-term value.

His remarks reinforced the fact the national oil company intends to move away from financing refinery operations through loans and instead position the Port Harcourt, Warri and Kaduna plants as commercially viable assets capable of attracting investment and generating their own funding.

There are many who are of the belief that the refineries may never work again, but Ojulari is optimistic, assuring Nigerians that the plants will become commercially viable again.

Investors in the Nigerian equities market are gearing up for a significant liquidity boost this week as the landmark N45.00 per share dividend payout from Dangote Cement Plc hits investors’ bank accounts, injecting billions of naira in raw cash into the financial ecosystem.

Market analysts expect the massive capital injection to trigger a wave of reinvestments, potentially arresting a three-week bearish run on the Nigerian Exchange that has pushed major blue-chip equities down to multi-month technical support baselines.

The influx of dividend cash comes at a critical juncture for the local bourse. Over the last 21 days, a heavy institutional shakeout has dominated trading, culminating in a third consecutive weekly loss that dragged the NGX All-Share Index down to 229,240.34 points, while market capitalisation closed at N147.11tn.

Despite the downward pressure on prices, activity velocity has spiked remarkably. Trading volume in the preceding week surged by over 1.5 billion shares to hit 3.821 billion shares traded, up from 2.324 billion shares the week prior

Market observers note that savvy buyers have actively been absorbing panic selling, viewing the current prices as an attractive wholesale entry point.

The market’s recent pullback was heavily driven by corrections across major sectors. The Industrial Goods index led the decline, dropping 4.93 per cent, closely followed by the Consumer Goods index which shed 4.56 per cent. The Oil & Gas and Banking sectors also dipped  4.34 per cent and 3.72 per cent, respectively.

However, with valuations currently sitting at fresh three-week lows, investment desks are reporting that bargain hunting is intensifying.

Traders are adjusting their portfolios to position in strength, keeping a close eye on volume trends within the financial and consumer goods spaces.

Adding to the week’s momentum is the official countdown to the early Q2 and half-year (H1) corporate earnings season. The combination of newly available dividend liquidity and anticipation of robust corporate performance is expected to drive tactical positioning.

Wealth managers are currently advising investors to treat the three-week market pullback as an open wholesale window, recommending a disciplined tranche strategy to gradually deploy capital into heavily discounted, high-value banking and industrial stocks as the third quarter takes off.

Shareholders of Dangote Cement Plc earlier approved a final dividend of N45 per ordinary share for the financial year ended 31 December 2025, bringing the total payout to an unprecedented N753.8bn.

The approval came as the company reaffirmed its long-term strategy of expanding across Africa through aggressive investments in production capacity, cleaner energy, and operational efficiency.

The dividend was approved at the company’s 17th Annual General Meeting in Lagos, where the Chairman of Dangote Cement Plc, Emmanuel Ikazoboh, said the firm was positioning Africa for self-sustaining industrial growth by leveraging local resources and strategic investments.

The National President of the Association for the Advancement of the Rights of Nigerian Shareholders, Dr Faruk Umar, lauded the group’s overarching focus on continental independence.

Umar said, “The key thing for this year’s AGM is transforming Africa. You will notice that our founder is trying to ensure he positions Africa to be the source of our own wealth, using our own wealth to take care of our own business and activities, rather than depending on investors from other parts of the world coming to help us build our continent.

“This 50 per cent dividend increase may look like a rumble, but there is a lot of strategy that has gone behind it. Some of the most important strategies have focused on exports. We have grown in areas where we previously weren’t able to reach out because of past challenges. More things are in the pipeline, which are progressively getting implemented. We expect that we can continue the momentum that we have built over the last year into the forthcoming years as well.”

A shareholder and financial analyst, Mr Nornah Awoh, commended the board for its financial discipline, citing the deployment of 3,000 CNG trucks and a 50 per cent reduction in bank borrowings as key drivers of profitability.

Awoh said, “First of all, you have to commend the company because we now have 3,000 CNG trucks being used rather than hiring them, which is improving our revenue. Secondly, the company has drastically reduced its loans; only half of the loan is left to be collected and paid to banks, reducing borrowings by 50 per cent. Another thing is that the first quarter is 101 per cent higher than last year, so you can see what we are expecting.

“They have paid us a N45 dividend. If this trend continues to the fourth quarter, we expect nothing less than an N60-to-N70 dividend. Additionally, you can see the synergy. With the new refinery, we are going to be getting diesel and gas directly from the Dangote Refinery. This is going to boost us and help significantly with profitability.

The combined finance costs of 12 leading fast-moving consumer goods companies listed on the Nigerian Exchange declined by 23.02 per cent to N67.66bn in the first quarter of 2026, from N87.90bn in the corresponding period of 2025, signalling stronger profitability, lower debt burdens and increased reliance on equity financing.

An analysis of the companies’ unaudited financial statements showed that finance costs decreased by N20.23bn year-on-year as many firms returned to profitability and accelerated debt repayment after weathering the impact of foreign exchange volatility and elevated borrowing costs in 2025.

Finance cost is the total cost a company incurs for borrowing money or financing its operations. It is reported in the income statement and reduces a company’s profit.

The PUNCH spoke to industry analysts who attributed the improvement to stronger earnings, deleveraging, and increased access to equity financing following the rally in the Nigerian capital market, which reduced dependence on expensive bank borrowings.

The biggest contributor to the deline came from Dangote Sugar Refinery, although it still recorded the highest finance cost in the sector at N28.45bn, down 4.73 per cent from N29.86bn. Nestlé Nigeria followed, with finance costs falling 27.88 per cent to N16.92bn from N23.47bn, while Nigerian Breweries posted one of the sharpest reductions, cutting finance costs by 46.09 per cent to N8.28bn from N15.36bn.

Other notable declines included Guinness Nigeria, whose finance costs plunged 81.42 per cent to N1.43bn from N7.72bn; BUA Foods, down 72.30 per cent to N1.04bn from N3.77bn; Cadbury Nigeria, which reduced finance costs by 67.81 per cent to N392.7m from N1.22bn; and NASCON Allied Industries, where finance costs declined 59.27 per cent to N86.5m from N212.4m.

However, a few companies recorded higher finance costs. Champion Breweries saw finance costs surge 936.37 per cent to N3.05bn from N293.93m; International Breweries posted an 82.80 per cent increase to N3.58bn from N1.96bn; and Northern Nigeria Flour Mills recorded a 2,110.18 per cent jump to N306.16m from N13.85m. In comparison, PZ Cussons Nigeria reported an 84.61 per cent increase to N217.1m from N117.6m. Honeywell Flour Mills’ finance cost remained unchanged at N3.90bn.

Among the companies, Guinness Nigeria recorded the strongest recovery, slashing finance costs by 81.42 per cent, or N6.28bn. BUA Foods followed with a 72.30 per cent reduction amounting to N2.72bn, while Cadbury Nigeria reduced finance costs by 67.81 per cent, or N827.3m.

NASCON Allied Industries posted a 59.27 per cent decline equivalent to N125.9m, while Nigerian Breweries cut finance costs by 46.09 per cent, or N7.08bn.

Cadbury also reported a large unrealised foreign exchange gain that pushed its reported finance line into a net income position, although its underlying finance cost still declined sharply. Nigerian Breweries similarly benefited from a near-elimination of foreign exchange losses, while Nestlé’s finance income surged significantly, reducing its net finance burden.

Despite the broad improvement, Dangote Sugar recorded only a 4.73 per cent reduction in finance costs, equivalent to N1.41bn, leaving it with the sector’s largest financing burden.

Honeywell Flour Mills recorded no improvement as finance costs remained flat at N3.90bn.

Among firms whose costs worsened, PZ Cussons Nigeria reported an 84.61 per cent increase, or N99.5m; International Breweries posted an 82.80 per cent rise amounting to N1.62bn, while Champion Breweries and Northern Nigeria Flour Mills recorded the steepest increases.

Dangote Sugar remained the largest spender on finance costs at N28.45bn, followed by Nestlé Nigeria at N16.92bn, Nigerian Breweries at N8.28bn, Honeywell Flour Mills at N3.90bn and International Breweries at N3.58bn.

Champion Breweries spent N3.05bn, Guinness Nigeria N1.43bn, BUA Foods N1.04bn, Cadbury Nigeria N392.7m, Northern Nigeria Flour Mills N306.16m, PZ Cussons Nigeria N217.1m, and NASCON Allied Industries N86.5m.

Meanwhile, based on finance cost moderation and net finance performance, NASCON Allied Industries ranked the strongest after recording finance costs of just N86.5m alongside net finance income of N2.44bn.

Honeywell Flour Mills maintained a positive net finance income position while keeping annual finance costs unchanged.

Nestlé Nigeria dramatically reduced its net finance cost after finance income surged to N15.26bn, while Nigerian Breweries benefited from the sharp decline in foreign exchange losses.

Although Cadbury Nigeria reported net finance income due to unrealised foreign exchange gains, its underlying finance cost also improved substantially.

In a phone interview with The PUNCH, the Chief Executive Officer of Economic Associates, Dr Ayo Teriba, said the decline reflected a shift in corporate financing from debt to equity as the Nigerian stock market strengthened.

He said, “This means that Nigerian companies are likely to have relied more on equity if you compare the first quarter of 2026 with the first quarter of 2025. They would have relied more on debt in 2025, but the growth that we’ve seen in the stock market has become more favourable to those who want to raise money in the equity market. If they are getting more financing from equity and less from debt, financing costs will decline.”

Teriba added that stronger equity markets benefited both companies and investors. He said, “The companies themselves are enjoying cheaper financing. If your performance is good enough for you to attract significant funding through the equity market, it lowers your financing costs. Those holding the equity are happier because they are compensated through capital gains.”

An Investment Associate at CardinalStone, Kayode Eseyin, attributed the moderation in finance costs to improved earnings and aggressive debt repayment. He said, “Most FMCGs returned to full profitability in 2025 and are basically on a deleveraging spree. They are paying down their loans significantly from their improved earnings and cash positions. When you pay down debts, finance costs naturally moderate.”

Eseyin added that capital raised by some companies also contributed to the lower financial burden. He said, “Some of them also raised capital last year, which is part of the reason why we saw moderation in finance costs. The outlook is positive as we expect improved macroeconomic conditions, stronger earnings, and moderating finance costs to support sustainable earnings growth.”

Similarly, a research analyst, Mobifoluwa Adesina, assessed that the easing in finance costs was driven by two factors: sector-wide deleveraging and a more stable interest rate environment.

He said, “Following the steep rise in borrowing costs during the 2022–2024 tightening cycle, many FMCG companies aggressively repaired their balance sheets through debt reduction, refinancing and equity raises, resulting in materially lower debt burdens by 2025.”

He added that the pause in monetary tightening and modest moderation in rates reduced funding pressure. “Consequently, consumer goods companies entered 2026 with less interest-bearing debt and lower financing obligations, leading to the 23 per cent decline in finance costs you are seeing across the sector,” the analyst concluded.

United Bank for Africa(UBA) Plc says that Group Chairman of the bank, Mr. Tony Elumelu will retire from the Board of Directors of UBA on August 21, 2026.

Elumelu’s retirement is coming on the heels of the completion of the 12-year tenure limit prescribed for Non-Executive Directors of Banks by the Central Bank of Nigeria(CBN)

At its meeting held on July 6, 2026, the Board accepted Elumelu’s retirement and elected Mr. Emmanuel Nnorom, a Non-Executive Director of the Bank, as his successor, with effect from August 21, 2026.

The Board places on record its profound appreciation to Elumelu for his visionary leadership and exceptional contribution to the strategic vision and institutional strength of the UBA Group.

Elumelu’s tenure has been a defining chapter in the Group’s history. Under his stewardship, UBA was transformed into a Pan African institution, operating in 20 African countries and 4 global financial centres and serving over 50 million customers.

Nnorom is a chartered accountant with over ,40 years’ experience in banking, finance and audit.

He brings to the role extensive leadership experience and deep institutional knowledge of UBA.

Speaking on his retirement, Elumelu, said, “Serving United Bank for Africa has been one of the great privileges of my career. UBA has established a unique competitive position, across Africa and globally, and I leave the Board with great confidence in UBA’s future. Emmanuel Nnorom is a leader of integrity, experience and sound judgement, and I am confident that the Bank will continue to thrive under his leadership.”

Nnorom, on his appointment, said,
“I am honoured by the trust the Board has placed in me and deeply conscious of the legacy I inherit. I look forward to working with my colleagues on the Board, Management and our staff across all our markets to sustain UBA’s momentum and continue delivering long-term value to our shareholders, customers and stakeholders.”

United Bank for Africa Plc is Africa’s Global Bank.

It operates across 20 African countries and in the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.

UBA is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 50 million customers globally.

Independent petroleum marketers on Monday pushed for the restoration of importation rights and projected that the pump price of Premium Motor Spirit, popularly called petrol, could fall below N800 per litre as the Federal Government intensified efforts to force down the cost of petrol.

The development came as the Federal Government met with major operators in the downstream petroleum sector, including representatives of the Dangote Petroleum Refinery, over what it described as the disconnect between falling global crude oil prices and the relatively high pump prices of petrol in the domestic market.

The stakeholders’ meeting on cost-reflective pricing of PMS, held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja, brought together the Federal Competition and Consumer Protection Commission, the Independent Petroleum Marketers Association of Nigeria, the Major Energy Marketers Association of Nigeria, the Depot and Petroleum Products Retailers Association of Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria, the Nigerian Association of Road Transport Owners, and other major operators in the sector.

Also in attendance were chief executives and representatives of TotalEnergies, Eterna Plc, Matrix Energy Group, officials of the NMDPRA, and delegates from the Dangote refinery.

The PUNCH reports that petrol prices have remained a major source of hardship for households and businesses in Nigeria, with pump prices surging following the spike in global crude oil prices triggered by tensions in the Middle East, particularly between Iran and the United States.

Although crude prices have moderated after diplomatic efforts eased the tensions, the reduction has yet to be fully reflected in domestic petrol prices, prompting the Federal Government to convene a stakeholders’ meeting aimed at driving a fair reduction in pump prices.

The National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, urged the government to permit independent marketers to import petroleum products directly, saying greater competition would ultimately reduce prices.

Maigandi also called for support for local refineries, particularly the Dangote Petroleum Refinery, while stressing the need to allow marketers to import products whenever necessary.

“Our major concern is that if products are to be distributed, let IPMAN buy products directly from the Dangote refinery and then, if we request importation, let IPMAN import by themselves. What we are trying to encourage is our local refinery. Let the government allow the local refinery to function properly and assist those who intend to refine products too,” he said.

The IPMAN president assured Nigerians that independent marketers were prepared to slash petrol prices significantly and projected that pump prices could fall below N800 per litre under the right market conditions.

“The price of the product is coming down bit by bit. Even when the price was increased, it was not increased at the same time. Likewise, now, as the price is coming down, we too are bringing the price down. If you check prices all over the country, you will see that independent petroleum marketers are reducing their prices gradually. Presently, we have reduced by N125 per litre nationwide,” he stated.

Miagandi added, “At any time when there is a reduction in price, we are ready to reduce the price to even below N800 per litre, not even N900. It depends on the way we buy the product from the private depot owners and the Dangote refinery.

“I thank God that the Dangote refinery has accepted independent petroleum marketers to start purchasing products directly. It is a plus, and very soon the populace will see the change in terms of price.”

The renewed push for importation comes amid an intense pricing battle in the downstream sector following the commencement of large-scale production at the Dangote refinery and the deregulation of the petrol market

Speaking to journalists after a closed-door session with the stakeholders, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government remained concerned that current petrol prices were not reflective of prevailing crude oil prices in the international market.

According to him, the government had engaged marketers in frank discussions aimed at ensuring that the reduction in global crude prices translates into lower pump prices for Nigerians.

Lokpobiri said, “The engagements are ongoing. We had very fruitful and frank discussions with the marketers and the leaders of the downstream sector of the petroleum industry with a view to driving down the price of PMS.

“My own opinion is that the petrol prices are not cost-reflective; they are not reflective of the cost of crude oil. But the marketers are also saying that crude oil prices are still high.

“In fact, somebody told us right there that the crude oil price for a month is still over $90 per barrel. But we are saying that when Brent crude was over $118 per barrel, the price was rapidly going up. Now that the price has come down drastically, why has petrol not come down correspondingly? That is a worry.”

The minister said the government had communicated the concerns of consumers to operators and directed them to return with practical measures that would lead to lower petrol prices.

“We have said that these are the issues of concern to the government. They have also said they will go back and think about what they can put together with a view to addressing the issue of the high cost of PMS that is not reflective of the price of crude in the market.

“We told them the concern of the Nigerian consumer, and they have also said they will go back and think of what concrete steps can be taken with a view to ensuring that the price drops,” he stated.

On when Nigerians should expect a reduction in petrol prices, Lokpobiri said discussions were still ongoing and declined to give a deadline. “As we called you today, we will call you as soon as possible. But the important thing is that discussions are ongoing,” he added.

Before the closed-door meeting, Lokpobiri warned petroleum marketers against using profits from previously acquired expensive fuel inventories as justification for maintaining high petrol prices, insisting that the benefits of lower replacement costs must be passed on to consumers.

The government said the continued disconnect between falling international crude oil prices and domestic petrol prices had become a source of concern, warning petroleum marketers against sustaining high pump prices of Premium Motor Spirit despite declining global crude prices and insisting that Nigerians should enjoy the benefits of lower replacement costs in a deregulated market.

He insisted that temporary gains realised from inventories purchased when crude oil prices were higher should not become the basis for sustaining elevated pump prices after global oil prices had declined.

“I am aware that PMS pricing is influenced by several factors beyond crude oil prices, but it is equally important to distinguish between genuine replacement cost and windfall gains arising from inventory management.

“Temporary gains realised from inventories acquired at higher prices should not become the basis for sustaining elevated pump prices after replacement costs have declined. As inventories are replenished at lower costs, the benefits of those lower costs should be transmitted to consumers in a timely and transparent manner. That is the essence of a competitive and efficiently functioning market,” he stated.

FCMB Asset Management Limited has received an upgrade to its national long-term and short-term issuer ratings from GCR Ratings, reflecting the firm’s financial performance, liquidity position and the stronger credit profile of its parent company, FCMB Group Plc.

According to a statement on Sunday, GCR upgraded the company’s national scale long-term and short-term issuer ratings to A(NG) and A1(NG) from A-(NG) and A2(NG), respectively, while maintaining a stable outlook.

The rating agency said the upgrade was supported by FCMB Asset Management’s competitive position, financial discipline, and the strengthened credit profile of FCMB Group Plc.

GCR noted that the firm’s decade-long operating track record, brand recognition, diversified product offerings and distribution network contributed to its standalone credit strength, alongside consistent earnings growth and an unleveraged balance sheet.

According to the agency, FCMB Asset Management’s competitive position is supported by “its relatively long track record, strong brand franchise, established product and geographical distribution network, and cross-selling opportunities.”

GCR added that the company ranked among the top five asset managers in Nigeria, with an estimated five per cent share of the fragmented market as of December 31, 2025.

The statement said the company’s revenue increased by 30 per cent, while operating cash flow rose by 13 per cent, allowing the business to fund its operations without debt.

It added that liquidity sources relative to uses improved to 5.0 times in December 2025 from 3.6 times a year earlier, while its EBITDA margin exceeded 58 per cent.

Commenting on the rating action, the Chief Executive Officer of FCMB Asset Management Limited, James Ilori, said, “This upgrade is an important external validation of a strategy we have pursued with discipline over many years: building an investment franchise that performs reliably, governs itself rigorously, and earns trust in every market cycle.

“It speaks to the strength of our membership of FCMB Group Plc and to a culture that holds itself to local and global standards of risk management and capital stewardship.

“As Nigeria’s asset management industry enters a new era of higher capital thresholds and rising investor expectations, we intend to lead from the front — ahead of regulatory timelines, ahead in digital transformation, and ahead in the outcomes we deliver for the clients who trust us to assist them in achieving their investment objectives.”

FCMB Asset Management manages a range of collective investment schemes, including the FCMBAM Money Market Fund, FCMBAM Debt Fund, FCMBAM Equity Fund, FCMBAM USD Bond Fund, and the FCMB-TLG Private Debt Fund. The company also provides discretionary and non-discretionary portfolio management services for high-net-worth and institutional clients.

Established in 1997, FCMB Asset Management Limited is regulated by the Securities and Exchange Commission and provides portfolio management and investment advisory services to individual and institutional investors. It is a subsidiary of FCMB Group Plc