₦airaland Forum

FirstBank, the oldest bank in Nigeria and part of FBN Holdings’ entities has exited close to 100 senior staff members in what our sources describe as a major organizational shakeup.

According to a reliable source with direct knowledge of the matter, some of the bank’s top executives were asked to leave as part of its repositioning plan for 2025.

The exits appear to be part of a concerted effort by the holding company of the board, led by Femi Otedola, to introduce fresh blood into several leadership positions in the bank, the source further explained.

What we know

Our sources indicate that the board of FirstBank approved the exit of about 100 senior executives as part of the bank’s “corporate restructuring and repositioning,” following the confirmation of its new MD/CEO.

• Another source within the bank suggests some of the exits were voluntary, especially for senior executives who intend to explore other career prospects.

• Nairametrics also understands that the exits include a prominent executive director whose tenure was not renewed over mutually agreed circumstances.

• Information from the bank’s website shows it has about 13 members in its executive team, six general managers, 33 deputy general managers, and 37 assistant general managers.

FirstBank has been undergoing significant management and board shakeups since Femi Otedola assumed the role of chairman of the parent company.

Busy Year for Board Changes

The latest management exits at FirstBank follow a series of significant board changes made earlier in the year, as billionaire businessman Femi Otedola took the reins as Chairman of FBN Holdings.

These changes have marked a transformative era for FirstBank and its parent company, FBN Holdings, signaling a clear focus on repositioning the institution for long-term growth and stability.

• In March 2024, FBN Holdings announced the appointment of five elite directors, formally ushering in the Otedola era.

• This strategic move aimed to inject fresh perspectives and expertise into the group’s boardroom, paving the way for the transformational agenda under Otedola’s leadership.

• By May, Tunde Odukale, the Chairman of FirstBank Limited, exited his role, making way for Ebenezer Olufowose. Olufowose’s appointment as Chairman was seen as a critical step toward strengthening governance structures at the bank.

• In June, the bank further reshuffled its executive leadership, confirming the appointment of Olusegun Alebiosu as Managing Director and Ini Ebong as Deputy Managing Director.

• These appointments were part of a deliberate strategy to bolster the bank’s operational capabilities ahead of its ambitious repositioning plans.

• In October, the momentum continued with the appointment of Wale Oyedeji as the new Group Managing Director of FBN Holdings Plc.

These changes culminated in what has been described as one of the most active years for board and management transitions at FBN Holdings and FirstBank.

FirstBank share price is up 18.47% YTD and has been one of the better performers in 2024, compared to the rest of the FUGAZ.

FirstBank closed its N149.5 billion rights issue on December 30, 2024, as it aims to join the rest of the FUGAZ in meeting the recapitalization target set by the apex bank.

Source: https://nairametrics.com/2024/12/30/first-bank-exits-100-senior-staff-in-major-reorganizational-shakeup/

…But oil output woes persist

Nigeria’s refining renaissance and the removal of petrol subsidies delivered key wins in Africa’s biggest oil-producing country this year, though persistent issues like underinvestment and underperforming oil output threatened to undermine the country’s energy sector’s progress.

The 2024 kickoff of the Dangote Refinery and Petrochemicals was almost like a dream in Nigeria’s energy sector as skeptics saw the $20 billion project as fanciful – after waves of state-built refineries had failed to make a dent on Nigeria’s petrol import dependence.

“This is one of the largest refineries that has ever been built, so the pace at which it ramps up is the difference between margins staying good for refiners or deteriorating,” said Dan Evans, head of fuels and refining at S&P Global Commodity Insights.

So far, the plant has shown great promise. In January when it came on stream, it crashed the price of diesel by 38 percent, from N1,600 to N1,000 while petrol price moved from N970 per litre to N899.50 per litre in December as part of measures to provide the much-needed relief for Nigerians ahead of the holiday season.

Growing refining capacity has already tipped Nigeria into becoming a net exporter of jet fuel, naphtha, and fuel oil. Next year, the country could ship almost 50,000 bpd more gasoil from Lagos than it imports, with volumes to almost triple again in 2026, according to Commodity Insights forecasts.

From January to October this year, the refinery has delivered the majority of its supply to the Lome transhipment hub off Togo, while South Korea has emerged as its single-largest export location, drawing 23,000 bpd of naphtha.

Large volumes of gasoil have flowed to Ghana and other West African countries, while for the first time in history, Nigerian-made jet fuel has found its way to airports ranging from Iceland to Tenerife and London’s Heathrow.

Apart from refining, one of the most impactful changes has been the full removal of fuel subsidies, a policy shift that began in 2023 and is now firmly entrenched.

This decision has freed up billions of dollars for the federal government, alleviating a decade-long fiscal burden.

The subsidy removal has also created a more competitive energy market. Fuel prices now reflect global market trends, attracting private sector investments in the downstream sector.

“We’re finally seeing the market work as it should,” said an analyst with a Lagos-based energy consultancy. “The reforms are paving the way for efficiency and growth.”

Kaduna and Warri refineries have also come back on stream, improving the nation’s refining outlook.

Green lights for divestments

Final Investment Decisions on strategic projects, such as the Bonga North, a deep-water project off the coast of Nigeria and Ubeta oilfield (OML 58) development, are set to boost crude oil output and gas production.

Nigeria also recently approved a $1.3 billion deal that would see a group of local companies purchase Shell’s onshore assets in the country, Nigeria – Africa’s largest crude producer.

This asset sale to one of Africa’s foremost energy companies, Renaissance, exemplifies Nigeria’s wholehearted confidence in its homegrown companies.

Renaissance is a consortium that includes ND Wester Ltd.; Aradel Holdings Plc; Petrolin Group; FIRS Exploration and Petroleum Development Co.; and Waltersmith Group, all leading companies that efficiently operate a diverse mix of oil and gas assets with a focus on socioeconomic impact in Nigeria.

“The African Energy Chamber is supportive of the Nigerian government’s commitment to supporting local companies operating in the oil and gas sector. Nigeria is continuing its focus on becoming a leading force in the global energy market, and this approval is poised to steadily improve the positive impact the industry will have on domestic companies operating in the country,” N J Ayuk, executive chairman of African Energy Chamber, said.

Recall that in October, the government had announced four divestment requests from Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited divestment, Equinor Nigeria Energy Company Limited to Project Odinmin Investments Limited, TotalEnergies EP Nigeria Limited to Telema Energies Nigeria Limited, and the Nigerian Agip Oil Company Limited to Oando Petroleum and Natural Gas Company Limited divestment.

Struggling oil production

According to the latest S&P Global Commodity Insights estimates, Africa’s largest oil producer has pumped at an average of 1.5 million bpd so far this year, having seen crude output fall below its estimated 2.2 million bpd capacity due to theft, underinvestment and technical issues at ageing fields.

Nigeria has consistently struggled to produce up to its maximum capacity in recent years and in January saw its Organisation of Petroleum Exporting Countries (OPEC) quota lowered by some 200,000 bpd after months of underproduction — a symbol of declining African influence within the bloc.

President Bola Tinubu, who campaigned on a promise to reform the country’s oil sector, declared a state of emergency in the industry in June, directing security agencies to go after thieves and vandals in the Niger Delta.

“These measures have directly improved the uptime of the Trans Niger Pipeline in the eastern Niger Delta, and today, all operating companies along the TNP can produce into this major trunkline,” Olu Verheijen, presidential adviser on Energy said November 14 at an industry event.

The oil sector reforms included an improved fiscal framework for producers, she added, including in the deepwater, and were set to attract new investments that would unlock around 1.3 billion barrels of oil equivalent in oil and gas resources.

Data sourced from the National Liquid Hydrocarbon Production reports by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed the country’s oil output increased to 1.485 million barrels per day (bpd).

According to the NUPRC data, output rose by 152,334 bpd in November — a 11.43 percent increase compared to 1,333,322 bpd produced in October.

With the addition of condensate, Nigeria’s oil production increased to 1.69 million bpd in November from 1.53 million barrels in October.

Natural gas

With 209.5 trillion cubic feet of proven gas reserves, Nigeria ranks 9th among gas-rich countries in the world. However, this abundant natural resource remains largely untapped for both domestic use and export.

Since he came into power on May 29, 2023, President Tinubu has shown eagerness to change Nigeria’s energy story using the potential of the country’s gas deposits.

Last May, Tinubu inaugurated three milestone projects, which are the expanded AHL Gas Processing Plant; the ANOH Gas Processing Plant, and the 23.3km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline.

“When these projects become fully operational, approximately 500MMscf of gas in aggregate will be supplied to the domestic market from these two gas processing plants, which represents over 25 percent incremental growth in gas supply,” Tinubu said at the commissioning.

Source: https://businessday.ng/energy/article/local-refining-investment-decisions-top-nigerias-2024-energy-gains/?utm_source=auto-read-also&utm_medium=web

As the world prepares to welcome the New Year in 2025, there’s an interesting question on the minds of many: which African countries will be the first to embrace the celebrations, and which will be the last to bid farewell to the departing year?

The timing of these celebrations varies across Africa, measured against London’s time zone. The United Kingdom follows Greenwich Mean Time (GMT), also known as Western European Time, during the winter months of December to February. From the last Sunday in March to the last Sunday in October, the UK observes British Summer Time (BST), which is UTC+1.

This temporal distinction highlights the diversity in New Year celebrations across African countries, each marking the moment at its unique hour.

Tuesday 20:00 – Mauritius and Seychelles; two countries in East Africa.

Tuesday 21:00 – Ethiopia, Somalia, Kenya, Tanzania, Madagascar, Uganda, Eritrea, Djibouti, Comoros and Some regions of South Africa

Tuesday 22:00 – Some other parts of South Africa, Egypt, Botswana, Zimbabwe, Zambia, Libya, Much of democratic Republic of Congo, Sudan, Burundi, Namibia, Malawi, Rwanda, South Sudan, Mozambique, Lesotho, Eswatini

Tuesday 23:00 – Nigeria, Tunisia, Algeria, Angola, Chad, Central Africa Republic, Gabon, Benin Republic, Cameroon, Equatorial Guinea, Niger Republic, Regions of DR Congo, Congo, Western Sahara

Wednesday 00:00 – Ivory Coast, Burkina-Faso, Senegal, Sierra Leone, Ghana, Togo, Liberia, Mali, Guinea, Mauritania, Gambia, Guinea-Bissau, Sao Tome and Principe

Wednesday 01:00 – Cape Verde

The tradition of celebrating the New Year traces its origins to January 1, 153 BCE, in ancient Rome. Initially, Romans welcomed the New Year on March 1, but this shifted when Julius Caesar introduced a solar-based calendar in 46 BCE, establishing January 1 as the official start of the year. This practice spread throughout the Roman Empire and was later cemented globally with the adoption of the Gregorian calendar in 1582.

As the world prepares to bid farewell to 2024 and embrace the dawn of 2025, the sequential festivities across time zones highlight humanity’s profound interconnectedness. These celebrations are steep in cultures and traditions, embodying a shared sense of hope and anticipation for the opportunities the New Year promises.

Source: https://newscentral.africa/which-african-countries-cross-into-2025-first/

…New listings, naira assets’ appeal drive Nigeria’s 147% ROI

…NGX CEO says FG’s reforms have been transformative

Investors who took a long position in eight major African stock markets made more money in Egypt, Nigeria and Ghana than any other, with each surpassing 100 percent cumulative returns since 2014, BusinessDay trend watch shows.

The eight major markets tracked are: Côte d’Ivoire (BRVM-CI), Nigeria (NGX-ASI), Egypt (EGX-30), South Africa (JSE-ASI), Morocco (MASI), Kenya (NSE-ASI), Ghana (GSE-CI), and Botswana (BSE-DCI).

In the past 10 years, Egypt’s market has yielded the highest cumulative return of 351 percent, followed by Nigeria’s 147 percent, and Ghana’s 121 percent.

Others major Africa stock markets and their performances from 2014 to 2023 are: South Africa (+85 percent), Morocco (+62 percent), Côte d’Ivoire (+19 percent), Botswana (+11percent), and Kenya, which recorded negative cumulative return of 12 percent in the reviewed 10-year period.

Temi Popoola, CEO, Nigerian Exchange Group, told BusinessDay that, “Nigeria’s capital market has consistently stood out as a hub of resilience and innovation, offering compelling opportunities for investors. Over the past decade, the consistent outperformance of our blue-chip companies has been a critical driver of market returns. These companies, which anchor the market index, have exhibited remarkable growth and resilience even during challenging economic cycles.”

Speaking further, he said, “High inflation has also shaped investment strategies, with equities becoming a preferred hedge. As a result, share prices have often adjusted in line with inflationary trends, preserving investor value. Additionally, strengthened regulatory frameworks, especially following the 2008 financial crisis, have bolstered market integrity and investor confidence.”

Popoola said another key factor is the number of strategic new listings, which have catalysed secondary market activity.

“When paired with macroeconomic reforms, these listings have heightened the appeal of naira-denominated assets to international investors. Finally, the post-COVID era has seen reduced yields in fixed-income markets, driving greater interest in equities and fueling robust market performance over the years,” the NGX CEO noted.

He said the NGX Group is encouraged by the positive trajectory of the market, which reflects the impact of targeted macroeconomic and sectoral reforms, stressing that the rebound of companies that successfully adapted to currency devaluation challenges, reigniting investor interest and fostering renewed confidence were key market drivers in 2024.

“Notably, reforms in critical sectors like oil and gas have been transformative. The removal of subsidies and exchange rate liberalisation have not only enhanced operational efficiency but also boosted the overall performance of listed companies in this sector. These policy changes have significantly influenced market dynamics, creating a ripple effect of growth and opportunity.

“As we look toward 2025, we anticipate that a stable macroeconomic environment and the continuation of these strategic reforms will sustain this momentum. Our outlook remains positive, with expectations for increased liquidity, strengthened investor confidence, and sustainable growth across the market. These elements will be pivotal in maintaining the upward trajectory and delivering value for all market participants,” Popoola noted.

Year-to-date (YtD), Nigeria’s stock market has risen by 35.25 percent, according to December 20 trading data seen by BusinessDay. Market data also show that year-to-date, the stock market of Côte d’Ivoire, a Francophone country, has risen by 28.11 percent. Egypt’s market has risen this year by 22.63 percent, while South Africa’s market is up by 9.85 percent.

Other markets and their return YtD are: Morocco (+21.76 percent), Kenya (+31.73 percent), Ghana (+53.65 percent), and Botswana (+12.54 percent).

The Nigerian equities market has sustained its positive momentum lately, supported by strong buy-interest across insurance, consumer goods, and banking counters.

The impressive performance at the Nigerian bourse further reflects the continued investor confidence in the market, analysts say.

This activity pushed the NGX All-Share Index (NGX-ASI) to beyond the 100,000-point milestone to 101,129.09 points as at Friday December 20.

Also, market capitalisation has risen to N61.30 trillion driven by new listings, banks recapitalisation exercise and improved bargains, amid impressive yields in the fixed income space.

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) recently raised the benchmark interest rate, also known as the Monetary Policy Rate (MPR), to 27.50 percent from 27.25 percent.

Analysts had expected some bearish undertone in Nigeria’s equities market as fixed income-biased investors took advantage of the high yields in the fixed income space.

Rather, the bulls have remained incentivised to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market. The impressive performance seen at the Nigerian bourse further reflects the continued investor confidence in the market.

“The bullish markets closely align with strong economic data from the previous weeks, including an eight consecutive trade surplus at N5.81trillion in Q3 2024, improved capital importation, and increased foreign reserve accretion,” Futureview analysts said in their December 20 note.

“Analysts say the markets will sustain their rally with a stable FX market, elevated yields in the fixed income, and buying interests in the banking, insurance, and oil and gas sectors ahead of the Santa Claus rally,” Futureview analysts noted.

They further said that Nigeria’s inflation rate rose to 34.60 percent in November 2024 from 33.88 percent in October 2024, marking the third consecutive monthly increase and reaching a near 30-year high, attributable to the sustained low food productivity, devaluation of the naira and multiple petrol price hikes, which have exacerbated the cost-of-living crisis.

The analysts said the three-month increase followed two consecutive moderations observed in July and August 2024.

“Despite these inflationary pressures, the Nigerian bourse sustained a positive rally, and the foreign exchange (FX) market showed relative stability, bolstered by sustained market sentiments and reforms aimed at enhancing transparency and investor confidence.

“The Central Bank of Nigeria’s efforts, including implementing an electronic foreign exchange matching system and increased diaspora remittances, have contributed to this stability,” the analysts further said.

Source: https://businessday.ng/big-read/article/nigeria-egypt-top-stock-markets-with-best-10-year-returns/#google_vignette

Barack Obama has released his yearly list of favourite songs and two Nigerians made the list this year, 2024.

Obama is known for curating an annual playlist of his most-loved tracks.

On Saturday, Dec. 21, he shared his favourite music list for 2024.

Among the songs that caught his attention were Rema’s “Yayo” and Asake’s “Active,” which features American rapper Travis Scott.

South African artiste Tyla's track “Jump,” featuring Gunna and Skillibeng, also made the list.

Nigerian-American artists Shaboozey and Jordan Adetunji were recognized for their songs “A Bar Song” and “Kehlani,” respectively.

The list also included international music stars like Kendrick Lamar, Beyoncé, and Karol G.

Sharing the playlist, Obama wrote: “Here are my favorite songs from this year! Check them out if you’re looking to shake up your playlist – and let me know if there’s a song or artiste I should make sure to listen to.”

Source: https://m.lindaikejisblog.com/2024/12/asake-and-rema-make-list-of-obamas-favourite-songs-for-2024-2.html#google_vignette