Business
Manufacturers wail as unsold goods pile up in warehouses
Manufacturers of fast-moving consumer goods, FMCG are in dire agony over the continued rise in unsold goods in their warehouses, a development which would lead to a further significant decline in output level in the sector.
The continued rise in unsold goods is caused by two factors namely the rising cost of living and the declining purchasing power of the citizens.
Financial Vanguardās findings show that due to the downturn in the consumersā disposable income, the stock of unsold goods for manufacturers in the fast-moving consumer good, FMCG, sector of the economy rose Year-on-Year (YoY) by 27 per cent during the financial year ended December 31, 2023. The sector operators also indicated that the situation is worsening in 2024 as they expect to report over a 30 per cent rise in unsold goods in the first quarter of the year, Q1ā24.
Consequently, they hinted that the output levels have been going down steadily since mid-last year, when the Central Bank of Nigeria (CBN), the report showed that capacity utilisation in the food and beverages sector fell to 49 per cent from 61 per cent in the corresponding period in 2022, indicating a 20 percentage point decline.
Nigerians have been battling with inflationary pressures with its curtailing effect on consumersā purchasing power in the last eighteen months.
The headline inflation rate has been on a constant increase, rising to 28.82 percent in December 2023 from 21.34 per cent in December 2022, triggered by various factors including high energy cost, and insecurity, especially in the farming communities in Nigeria, among others.
Within the same period also, food inflation surged to 33.93 percent from 23.75 percent a year ago.
The trend has continued unabated in 2024 with headline and food inflation moving further up to 33.69 per cent and 40.53 percent in April from 29.90 percent and 35.41 percent at the beginning of the year respectively.
A combination of the massive increase in inflation coupled with naira devaluation had resulted in price mark up by manufacturers to cover high input costs.
But this cost coverage measure has also alienated many of their consumers, thereby slowing down sales.
Financial Vanguardās findings from the operations of 15 major FMCGs clearly show a burdensome price index escalating the stock of unsold goods amounting to N104.45 billion despite the huge cut in production quantity.
The companies are BUA Foods Plc, Dangote Sugar Refinery Plc, Nestle Nigeria Plc, Presco Plc, Cadbury Nigeria Plc, Okomu Oil Nigeria Plc, NASCON Allied Industries Plc, May & Baker Nigeria Plc, Fidson Healthcare Plc, and Neimeth Pharmaceuticals Plc.
Others are Guinness Nigeria Plc, Champion Breweries Plc, Flour Mills of Nigeria Plc, Nigerian Breweries Plc and Honeywell Flour Mills Plc.
Companiesā records
The breakdown shows that while a number of the companies recorded a reduction in the level of their stock of unsold goods, palm oil producers ā Okomu Oil Palm Plc and Presco ā took the biggest hit. Industry observers believe the oil palm industry should not be recording such poor performance given how essential the product is to the average Nigerian family.
Presco, the leading palm oil producer, recorded the highest stockpile of unsold goods as the inventory of finished unsold goods rose by 249.4 per cent to N1.45 billion, followed by May & Baker Plc and Okomu Oil Palm, the second largest palm oil producer, with 160.2 per cent and 124 percent increase in their inventory of unsold goods respectively.
Dangote Sugar Refinery Plc, Flour Mills of Nigeria Plc and Cadbury Nigeria Plc also ranked among the worst with record increases of 92.9 percent to N9.76 billion, 74.1 percent to N30.75 billion and 71.5 per cent to N3.55 billion in their stock of unsold goods respectively.
Strangely, all brewers in the report recorded reduction in their unsold goods.
Reacting, Director General of the Nigerian Association of Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA), Sola Obadimu, said the findings are not surprising, adding that until economic indices are stable, the situation may persist.
His words: āAs I always say, weāre in a āstagflationā situation, meaning ā persistent rising inflation and high unemployment rates in a static wage situation. The wages are not just static, theyāre declining in value in real terms as a result of inflation. Consumers (and industries as well) are also vulnerable/defenceless victims of rising energy costs, unstable forex rates and debilitating infrastructure generally, etc. So, itās no surprise that inventories are growing.
āWeāre all aware of the fact that some major multinationals declared losses for 2023 as a result of the unfavourable economic climate and some chose to leave while others are contemplating. Itās easier for local industries and businesses whose owners can quickly take decisions in the face of constantly changing critical economic indices. These multinationals sometimes have to seek aporovals for some major situations from their global Head Offices which may take a while to come due to lack of adequate understanding of the local environment.
āSo, unless we get some sort of stability in critical economic indices and consumer purchasing power increases in value terms, the story may not agreeably be too different in 2024.ā
Consumers preference has shifted ā Muda Yusuf
Muda Yusuf, Director General, Center for the Promotion of Public Enterprise (CCPE), who blamed the mounting inventory of unsold goods on depreciation in the value of the naira, and high energy cost among others, said that consumers are now reviewing their preferences and are shifting to cheaper substitutes where available.
He said thereās a need to bring down the exchange rate and energy cost to effect a reduction in companiesā cost of production.
He said: āThe high level of inventory of finished goods, particularly the unsold inventory, are the consequences of high production cost and the high operating cost that the manufacturers in the FMCG sector have been grappling with over the last one to two years.
āThere have been challenges of escalation of cost arising from exchange rate depreciation, high energy cost, high cost of logistics and challenges around the high cost of funds.
āThese are the key issues and, naturally, when the production and operating costs increase, the natural thing is for the increase in cost to be passed on to the consumers in the form of high prices.
āSo, what we are seeing is that the prices of some of these products have gone up significantly and some by as high as 50% and in some cases, even 100% in the last year.
āAnd in an environment where the purchasing power is also weak, where the level of poverty is also high, naturally, these inventories will be very slow in terms of outflow from the warehouses because of the weak purchasing power of the consumers.
āThereās also an element of consumer resistance due to this high cost of production. There is also an element of substitution. For some of those products that have substitutes, consumers may decide to go for cheaper substitutes because of the high prices.
āSo, basically, these are the factors that are responsible for the high level of inventory of finished goods that we have seen in recent times.ā
Speaking on the way out, Yusuf said thereās a need to put strategies in place to ensure a reduction in operating cost, a reduction in logistics costs and a strengthening of the purchasing power of the citizens.
Need to stabilize FX market
He expressed the need to stabilize and boost supply in the foreign exchange (FX) market in order to moderate the depreciation of the currency.
According to him, this will result in a reduction in operating and production cost.
āOnce the currency strengthens, the cost of production will, naturally, be less; the cost of logistics, if the energy crisis goes down, will also begin to decelerate.
āThen, of course, thereās also the element of the cost of clearance of cargo.
āThese cargoes could be raw materials, it could be intermediate products, and it could be machinery that is used by any of these manufacturers.
āThe current methodology of determining the exchange rate for the computation of import duty has made the cost of cargo clearance very prohibitive.
āSo, if the government through the fiscal and monetary authorities could do an adjustment to this by fixing the exchange rate for the computation of import duty to between N800 ā N1,000/$ and this is fixed for may be three months, that will also help to bring down some of this cost and make the products a lot more affordable because the key issue here is the affordability of these products.
The more affordable they are, the lesser the level of unsold goods,ā Yusuf added.
According to him, āThe danger in the level of this unsold inventory is that some of these products have expiry dates, which is another risk to these businesses.
It is a good thing that the government is talking about minimum wage. If the workers are empowered, we are likely to see an improvement in demand for some of these products.
āSo, thereās a supply side issue to bring down the costs of production, operation and logistics and cost of funds.
āThereās also the demand side issue of empowering the consumer to have the purchasing power to buy these products.ā
Rise in unsold goods weakens profitability ā FSL Securities
Commenting also, Victor Chiazor, Head, Research at FSL Securities, said: āThe 27% rise in inventory for players in the fast-moving consumer goods sector could be attributed to two factors.
āThe first could be that the rise is a result of the companyās inability to drive sales due to the rising cost of goods which may have slowed down the volume of goods sold during the period, leading to a rise in inventory.
āAlso the second reason for the increase in inventory could be deliberate and the company may decide to increase its inventory position to enable it to plan around the significant volatility in the cost of goods which has remained unpredictable in recent times.
āThis helps the company manage the risk around a possible increase in production cost.
āHowever, whatever the case may be, it has a terrible effect on the course of operation for the business as a slowdown in sales will weaken profitability and a deliberate strategy to increase inventory also ties down capital which could have been raised via borrowing at a high-interest rate given the interest rate environment.
āThe government will have to deal with issues around FX volatility, rising energy cost, rising cost of borrowing, bad infrastructure amongst other issues, all of which increase input cost for the manufacturer.ā
Source: Vanguard
The sharp increase in cooking gas prices in Nigeria is significantly jeopardizing the nation’s clean energy transition efforts.
As prices soar beyond what many households can afford, experts caution that millions of Nigerians are turning back to firewood and charcoal.
This trend not only threatens environmental sustainability but also poses serious risks to public health.
Field interviews by Nairametrics across Abujaās Karu, Mararaba, Nyanya, and Gwarimpa areas reveal that Liquefied Petroleum Gas (LPG), popularly known as cooking gas, has recorded a steep price increase in recent weeks.
As of late October, a 12.5kg cylinder that sold for between N9,000 and N10,000 in early September now costs between N15,000 and N16,500, depending on the area. At A.A Rano filling station along the KeffiāAbuja Expressway, LPG retailed at N1,200 per kilogram, while outlets like Onas Gas in Nyanya charged as high as N1,600/kg.
In Lagos, price fluctuations have also been pronounced. Earlier in October, residents paid between N2,500 and N3,000 per kilogram.
However, recent checks show a partial decline, with rates in Apapa, Ketu, Fadeyi, Somolu, Bariga, and Surulere averaging between N1,300 and N1,500 per kilogram.
Filling stations along Ikorodu Road, Palmgrove, Anthony, and Apapa now sell between N1,100 and N1,300/kg. Consequently, the cost of refilling a 12.5kg cylinder dropped from about N27,500 to around N20,500 as of October 27.
Small businesses and food vendors bear the brunt
The rising prices have hit food vendors and small restaurant owners particularly hard. Mrs. Blessing Ogar, a food vendor in Mararaba, lamented that cooking gas, once considered the cheapest and cleanest option, has now become a luxury.
āI tried to return to using charcoal, but even that is becoming expensive,ā she said.
Similarly, Ms. Esther, another vendor in Gwarimpa, said she recently paid N18,125 to refill her 12.5kg cylinder, a sharp increase from N15,000 previously.
āCustomers will leave if I raise my prices too much. At this point, profit margins are disappearing,ā she added.
For civil servants and low-income earners, the impact has been equally distressing. Mr. Musa Abdul, a resident of Nyanya, said,
āI used to fill my cylinder with N8,500 last year. Now itās N15,000. How are ordinary people supposed to survive this?ā
Retailers defend price hike
Meanwhile, gas retailers insist they are not responsible for the surge, attributing the increases to higher depot and transportation costs.
āIf I get gas from the depot at N1,000, I canāt sell it at that same price. We sell what we buy,ā explained Mr. John Okafor, a retailer in Nyanya.
He noted that the cost of refilling a truckload of gas has risen dramatically, threatening the survival of small operators.
āTransportation and depot charges are killing small businesses. Without government support, many of us will close shop,ā he warned.
Some other gas retailers also shared similar sentiments in Mararaba axis.
Experts call for FGās urgent intervention
Energy and environmental experts have warned that the persistent rise in Liquefied Petroleum Gas (LPG) prices could jeopardize Nigeriaās clean cooking and energy transition goals, which aim to ensure that at least 30 million households adopt cleaner cooking fuels by 2030.
Dr. Bala Zakka, an energy analyst, said the situation reflects a deeper structural failure in Nigeriaās gas policy.
āIt is tragic that a country with over 200 trillion cubic feet of proven natural gas reserves is still struggling to make LPG affordable for its citizens,ā he said.
āWithout strong government intervention, Nigeriaās energy transition targets will become unrealistic.ā
Dr. Nnimmo Brimah, an environmental analyst at Nasarawa State University, noted that Nigeriaās over-reliance on imported LPG and poor investment in local gas processing are major contributors to the crisis.
āDespite having one of the largest natural gas reserves in Africa, Nigeria continues to depend on imports for domestic consumption. This is both unsustainable and economically reckless,ā Bassey said.
He urged the Federal Government to accelerate investment in domestic gas infrastructure, promote modular LPG plants, and support local distributors through tax reliefs and incentives.
Another expert, Mrs. Adaobi Okonkwo, an energy policy analyst, emphasized that the situation calls for an urgent review of fiscal policies affecting gas production and distribution.
āThe high cost of foreign exchange and the removal of energy subsidies have worsened LPG affordability. The government must work with private stakeholders to stabilize prices and ensure access for low-income households,ā she explained.
Environmentalist and director of SafeEarth, Dr. Umo Bassey, noted that the governmentās failure to prioritize domestic gas supply is crippling its own environmental commitments.
āWe are supposed to be transitioning to cleaner energy sources, but current realities show that affordability is a huge barrier. Without access, the transition plan is just a slogan,ā he warned.
FG to intensify clampdown on hoarders
Earlier this month, Nairametrics reported that Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has ordered a clampdown on marketers hoarding or exploiting consumers following the recent surge in the price of cooking gas.
According to him, the sharp increase in price was caused by two main factors: the industrial action by PENGASSAN at the Dangote refinery and the ongoing maintenance activities at the Nigeria LNG Train 4 facility.
The minister explained that the strike by PENGASSAN at the Dangote refinery temporarily halted LPG loading, while the maintenance work at NLNG reduced the volume of gas available in the domestic market.
Nigeriaās energy transition plan under threat
Nigeriaās Energy Transition Plan, launched in 2021 and updated in 2022, seeks to achieve net-zero carbon emissions by 2060, with gas serving as the nationās bridge fuel. The plan also targets the adoption of clean cooking energy by 30 million households by 2030.
However, with prices spiraling and households reverting to firewood and charcoal, experts fear that Nigeriaās energy transition goals are slipping out of reach.
āIf clean energy becomes a privilege for the rich, Nigeriaās sustainability efforts will collapse,ā warned Dr. Brimah. āThe government must treat the cooking gas crisis as an emergency ā not just an economic issue, but a public health and environmental one.ā
Until decisive action is taken to stabilize the market and expand local gas production, millions of Nigerian households may continue to suffocate under the weight of rising energy costs, and the countryās clean energy dream may remain just a dream.
Zenith Bank Plc has released its Group financial results for the nine months ended 30 September 2025, according to Nairametrics.
According to the unaudited report, the Group recorded a pre-tax profit of N917.4 billion in 9M 2025.
For Q3 alone, the Group posted a pre-tax profit of N291.78 billion, which represents a 6% growth from the N275.8 billion recorded in Q3 2024.
On the revenue front, Zenith Bank reported a significant 16.29% growth in gross earnings, which totaled N3.37 trillion in 9M 2025, up from N2.89 trillion in the same period of 2024.
Key Highlights (9M 2025 vs. 9M 2024)
- Gross Earnings: N3.37 trillion (+16.29% YoY)
- Net Interest Income: N1.93 trillion (+50.4% YoY)
- Non-Interest Revenue: N539.7 billion (+18.4% YoY)
- Operating Profit (Pre-Impairment): N1.31 trillion (+15.2% YoY)
- Profit Before Income Tax: N917.4 billion (-8.5% YoY)
- Profit After Tax: N764.2 billion (-7.6% YoY)
- Total Assets: N31.18 trillion (+2.6% YoY)
- Customer Deposits: N23.69 trillion (+9.8% YoY)
- Loans and Advances to Customers: N9.37 trillion (-1.1% YoY)
Commenting on the results, Group Managing Director/CEO, Dame Dr. Adaora Umeoji, OON, said:
āZenith delivered a solid nine-month performance despite a demanding backdrop. We stayed disciplined on risk, deepened customer relationships across retail and corporate segments, and deployed our balance sheet where we saw quality opportunities.ā
On the Outlook of the Bank
āAs we enter the final quarter, our priorities are clear: service excellence, prudent growth, and sustained value creation for our shareholders,ā the CEO further noted.
Cursory analysis of the key drivers
Zenith Bankās profit growth was mainly driven by a sharp increase in interest income, which grew by 40.7% to N2.74 trillion, compared to N1.95 trillion in the same period in 2024. This increase was largely attributed to:
Interest income on loans and advances: N1.36 trillion
Interest income from investment securities (including treasury bills): N740.5 billion (from treasury bills) and N400.3 billion (from investment securities)
On the expense side, interest expenses rose by 22.2% to N814.2 billion for the period. This increase was primarily due to higher costs associated with customer deposits, which surged by 9.8% YoY to N23.69 trillion.
Despite the increase in interest expenses, Zenith Bank maintained a strong net interest income:
The net interest income for the nine months ended September 30, 2025, stood at N1.93 trillion, reflecting a solid 50.4% YoY growth.
After accounting for impairment charges of N781.5 billion, net interest income after impairment reached N1.15 trillion, an increase of 42.2% from the previous yearās N802.9 billion.
Notably, though impairment charges increased for the nine-month period, in Q3, impairment dropped to N20.71 billion compared to N62.5 billion in Q3 2024, suggesting easing in impairment.
This illustrates how net interest income after impairment was bolstered by both the growth in interest income and the reduction in impairment charges, despite the rise in interest expenses.
Non-interest income
Zenith Bank recorded N539.7 billion in non-interest income, a decline of 38%. The drop was driven by a 60% decline in trading income, especially the decline in gain on other trading books to N261 billion from N755 billion in 9M 2024. In fact, in Q3, the bank recorded a loss of N222.4 billion in the other trading books.
However, fees and commission income, which is part of non-interest income, grew by 10.45% to N299 billion in 9M 2025, driven by:
Account maintenance fees (N64 billion)
Fees on electronic products (N59 billion)
Balance sheet
Zenith Bankās total assets rose by 2.6% to N31.18 trillion, driven by:
Growth in cash and bank balances increased to N6.85 trillion from N5.38 trillion in the previous year.
An increase in loans and advances, which amounted to N9.37 trillion.
Investment securities (up 2% to N4.86 trillion) and treasury bills (up 46% to N4.2 trillion), reflecting a continued push for liquidity management.
Liabilities saw an increase, with customer deposits driving the balance sheet and growing by 9.8% to N23.69 trillion.
Market performance
Zenith Bankās share price surged by 38.5% YTD, closing at N63 as of the last session, up from the beginning of the year when the share price stood at N45.50.
Source: Nairametrics
Bokku Mart, the Nigerian grocery store, has come under heavy criticism on social media after posting what users described as a ātribalisticā advertisement video.
The video, which has since been deleted, featured influencer Defolah comparing the storeās prices to those in local markets.
In the clip, she made a remark implying that Igbo traders cheat their customers.
āSo you mean I can get beans and garri Ijebu at Bokku without any Omo Igbo cheating me?ā the content creator said.
āItās so relaxing to shop without someone pulling you from the left and right, shouting my colour.ā
The comment triggered widespread outrage online, with several users accusing Bokku of promoting ethnic bias and disrespecting the Igbo community.
Following the backlash, Defolah issued a public apology, saying her statement was not intended to promote tribalism.
āI sincerely apologize. It was never my intention to promote any form of tribal bias or disrespect to the Igbo people,ā she said.
Despite her apology, Bokku has continued to attract criticism on social media, with many users vowing to boycott its stores.
One user wrote: āBokku Mart posted an advert insulting Igbos with slurs. Any Igbo who still patronizes them is an enemy of their tribeā.
āDo you know how brazen the Igbophobia is for a brand to endorse such? Itās like ShopRite doing an Ad in Nigeria and letting their influencer call Nigerians thieves,ā another user added.
@firstladyship argued the storeās marketing strategy was ālazy and divisiveā.
āBy engaging in stereotyping by calling another tribe ācheaters,ā you reduced your business to another ethnocentric brand in existence to service just a section of the country,ā she wrote.
Another user said: If youāre an Igbo person and you give your money to Bokku so they can use it and run ads to call us cheats, then you have yourself to blame.ā
See more reactions below:
āDo you know how brazen the Igbophobia is for a brand to endorse such? Itās like ShopRite doing an Ad in Nigeria and letting their influencer call Nigerians thieves,ā another user added.
Iām not going to let this Bokku thing go because Iāve been so tired of being gas lit. Do you know how brazen the Igbophobia is for a brand to endorse such? Itās like ShopRite doing an Ad in Nigeria and letting their influencer call Nigerians thieves.
Itās not just to delete theā¦
— CHIKAMMA (@AlexVivyNnabue) October 28, 2025
@firstladyship argued the storeās marketing strategy was ālazy and divisiveā.
āBy engaging in stereotyping by calling another tribe ācheaters,ā you reduced your business to another ethnocentric brand in existence to service just a section of the country,ā she wrote.
Another user said: If youāre an Igbo person and you give your money to Bokku so they can use it and run ads to call us cheats, then you have yourself to blame.ā
You all asking, this is the now deleted ad @bokkumart posted.
Deleting it without any apologies is a no!Same time people are claiming Igbo importers are the reason for the expensive products in the market Bokku mart subtly saying Igbo traders cheat.
Make it make sense? pic.twitter.com/8gVtjzdFpw— Ugegbe āØ (@MarinatedTurks) October 28, 2025
The Bureau De Change (BDC) operators have lamented that they are close to going out of operations as most of its members are struggling to stay afloat and meet up with overhead expenses.
These licensed currency traders have attributed this mainly to the suspension of dollar allocation by the Central Bank of Nigeria (CBN) to the BDCs, as they struggle to have access to foreign exchange from the official window.
The operators lamented that with the huge drop in income level, paying staff salaries, office rent, licenses and other compliance expenses has become a major challenge.
This is further compounded by the uncertainty in the retail sub-sector of the forex market, with many of the BDC operators still battling to meet up with the recapitalization and license processes.
The BDC operators had always advocated for increased participation and involvement in the foreign exchange market to help sustain the success of the various policies being implemented by the CBN and help provide more liquidity.
This push by the BDCs followed the June 2023 unification of all segments of Nigeriaās foreign exchange market, consolidating all windows into one. This action by the apex bank was part of a series of immediate changes aimed at improving liquidity and stability in the Nigerian Foreign Exchange (FX) Market.
The currency traders had advised the CBN to always leverage the BDCs and allow them access to banksā autonomous window and agencies of international money transfer operators.
The CBN had in July 2021 stopped the sale of forex to BDC operators across the country, accusing them of becoming conduit for illegal financial flows, working with corrupt people to conduct money laundering in Nigeria.
In February 2024, the apex bank announced the resumption of forex sales to the BDCs following the revocation of operational licenses of over 4,173 of these licensed currency traders over their failure to comply with some regulatory guidelines. This was to help enhance liquidity in the retail segment of the forex market.
However, the CBN has since stopped the sales of forex to the licensed currency traders with little or no intervention till date. The BDC operators, who said that the CBN could not sustain the exercise, however, noted that they are `engaged in positive discussion with the apex bank for the return of their active participation in the BDCs in the retail end of the forex market.
Customers now prefer to use IMTOs
In an exclusive chat with Nairametrics, a BDC operator, Abubakar Ardo, said that most of them are barely managing to stay in business, as the non-sale of forex directly to the BDCs has affected their operations badly.
Apart from the challenge of getting forex from the official window, Ardo explained that the demand for forex has dropped sharply as most customers now prefer to do transfers or use online platforms or International Money Transfer Operator (IMTOs) instead of physical cash exchanges.
He said, āāHonestly, things have been extremely tough for us lately. Most operators are just managing to stay afloat. Since the CBN stopped selling forex directly to us, our operations have been badly affected. We used to depend largely on the official window to get foreign exchange at regulated rates, but that avenue has been shut for a long time.
āāRight now, survival depends mostly on what we can get from walk-in customers ā people coming in to sell small amounts of dollars, pounds, or euros. But thatās not structured or steady. Sometimes, you can go days without a single serious transaction. The market is very dislocated, and demand has dropped sharply because most people now prefer to do transfers or use online platforms or IMTOs instead of physical cash exchanges.
āāThis may be good for the Naira, but sincerely, many of us are suffering. Thatās why weāre proposing we get fully integrated.
āāMeeting up with overhead costs has become a major challenge. Office rent, staff salaries, licenses, and other compliance expenses are still there, but the income isnāt coming in as before. As I talk with you, many operators have either closed shop temporarily or reduced their workforce just to cut costs.āā
He insisted that they are basically operating in survival mode ā trying to keep their licenses active and hoping that the CBN will eventually re-integrate BDCs into the official market.
Going extinct
Making his own contribution, the President of the Association of Bureau Dec Change Operators of Nigeria (ABCON), Aminu Gwadebe, pointed out that the majority of its members are struggling to meet up with their overhead expenses, with their operations almost going extinct.
He said, āāThe market is stable. As patriotic citizens, we align with policies that strengthen our sovereignty, which is the naira and commend both the regulatory and fiscal authorities on the naira stability and elimination of the exchange rate spikes.
āāOur operations are currently near extinction, with the majority of our members struggling to meet up with overhead expenses. There is an ongoing positive collaboration between the CBN and the operators on the return of active participation of the BDCs in the retail end of the FX market.
āāThe BDCs, over time, remained the most potent tool of the CBNās foreign exchange policy transmission mechanism. The majority of us are comatose as survival is largely dependent on the official foreign exchange market, which is not accessible to the BDCs, with only very few grappling with dislocated and unstructured walk-in customers.āā
Gwadebe noted that the CBN discontinued the sales of forex to BDCs a long time ago, with little or no intervention to date.
The Federal Government has successfully obtained N700 billion to install 1.1 million meters by December 2025, paving the way for a transformative upgrade in our power infrastructure.
The Minister of Power, Adebayo Adelabu, announced this on Tuesday in Lagos at the 2025 Nigerian Energy Forum (NEF), themed āPowering Nigeria through Investment, Innovation, and Partnershipā, according to the News Agency of Nigeria (NAN).
According to the minister, the initiative is part of the Presidential Metering Initiative (PMI), a comprehensive plan to close Nigeriaās metering gap, strengthen revenue assurance, and promote transparency in the electricity supply chain.
He said the PMI complements the 3.2 million meters being procured through the World Bankās Distribution Sector Recovery Programme (DISREP), positioning the country to bridge the metering gap within five years.
FG leveraging on bilateral funding to attract investment
The minister added that the government was leveraging bilateral funding and development finance to attract private investment and expand electricity access in underserved communities, schools, hospitals, and public institutions.
āIn the past two years, more than $2 billion has been mobilised through key programmes, including the World Bankās DARES, NSIAās RIPLE, and the JICA fund.
āThese interventions are accelerating renewable energy deployment and access to reliable power,ā he said.
Adelabu also revealed that agreements signed at the 2025 Nigerian Renewable Energy Innovation Forum would add nearly four gigawatts of solar manufacturing capacity annually, about 80 per cent of Nigeriaās current generation capacity.
āWith this level of renewable energy production, Nigeria is on track to meet its domestic transition targets and serve regional power markets,ā he said.
Adelabu said the Electricity Act 2023 had transformed the sector by empowering states to establish subnational electricity markets.
āFifteen states have received regulatory autonomy, with one fully operational.
āWeāre ensuring alignment between wholesale and retail markets,ā Adebayo noted.
He maintained that tariff reforms had improved supply reliability, reduced industrial energy costs, and boosted sector revenue from N1 trillion in 2023 to N1.7 trillion in 2024, with projections to exceed N2 trillion by 2025.
The minister added that President Bola Tinubu had approved a N4 trillion bond to settle verified debts owed to generation companies and gas suppliers, alongside a targeted subsidy plan to protect vulnerable consumers.
Adelabu reaffirmed the governmentās commitment to partnering with the private sector to unlock stranded generation capacity and build a sustainable power future.
āThrough sustained investment, innovation, and strong partnerships, we can power Nigeriaās journey toward a brighter, more resilient energy future,ā he said.
In mid-October, the Nigerian Electricity Regulatory Commission (NERC) approved the disbursement of N28 billion to electricity distribution companies (DisCos) for the procurement and installation of prepaid meters under the Meter Acquisition Fund (MAF) Tranche B scheme.
According to Order No: NERC/2025/107 published on the commissionās website, the MAF provides a financial mechanism for accelerating meter rollout to unmetered customers at no cost, while ensuring a credible revenue stream that supports long-term financing for DisCos.
NERC also reported that DisCos installed a total of 225,631 meters in the second quarter of 2025, marking a 20.55% increase compared to the 187,161 meters installed in the first quarter of the year.
According to NERCās Second Quarter 2025 Report, of the total meters installed, 147,823 units (65.52%) were deployed under the Meter Asset Provider (MAP) framework, 65,315 meters under the Meter Acquisition Fund (MAF) scheme, 12,259 meters through the Vendor Financed framework, and 234 meters were installed under the DisCo Financed scheme.
Despite this progress, NERC noted that as of June 2025, only 6,422,933 out of the 11,821,194 active registered customers in the Nigerian Electricity Supply Industry (NESI) had been metered. This translates to a national metering rate of 54.33%, leaving nearly half of electricity consumers still unmetered and subject to estimated billing.
Nairametrics
Armed officers of the Nigeria Police Force (NPF) on Tuesday sealed the headquarters of Nestoil Limited in Victoria Island, Lagos.
The action followed a Federal High Court order that froze the companyās assets, bank accounts, and shares over an alleged debt of $1.01 billion and N430 billion owed to FBNQuest Merchant Bank Limited and First Trustees Limited, both subsidiaries of First Bank of Nigeria Limited, according to a report by Premium Times.
Videos seen by Nairametrics showed police personnel surrounding the companyās premises, with a marking on the wall reading āPossession taken by court.ā
The enforcement followed a Mareva injunction granted by Justice D. I. Dipeolu of the Federal High Court, Lagos Division, on October 22, 2025, authorising the takeover of assets belonging to Nestoil Limited, its affiliate Neconde Energy Limited, and their promoters, Ernest and Nnenna Azudialu-Obiejesi, across more than 20 financial institutions in Nigeria.
Breakdown of the debt and court order
Court filings showed that the defendantsā total indebtedness stood at $1,012,608,386.91 and N430,014,064,380.77 as of September 30, 2025. The credit facilities were extended to Nestoil Limited, Neconde Energy Limited, and their related entities under the Obijackson Group, secured by assets, shares, and oil field interests.
Justice Dipeolu appointed Abubakar Sulu-Gambari (SAN) as receiver-manager, authorising him to take over Nestoilās offices at 41/42 Akin Adesola Street, Victoria Island, and any other identified assets within Nigeria.
The order also directed security agencies, including the Nigeria Police Force, Nigerian Navy, and State Security Service (SSS), to assist in enforcing the takeover and securing the companyās premises.
Further enforcement and next hearing
The injunction empowered the receiver to assume control of Neconde Energyās stake in Oil Mining Lease (OML) 42, jointly operated with the Nigerian National Petroleum Company Limited (NNPCL) and its subsidiaries. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NNPCL were instructed to grant the receiver access to manage production and revenue flows from the oil block.
The court also directed all affected financial institutions to disclose, under oath, details of funds or investments belonging to Nestoil and its affiliates within seven days of being served the order.
The case was adjourned to November 7, 2025, for the hearing of the substantive motion on notice.
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