Business
AMCON to sell off shares as stock market recovers N8.5 trn in 5 yrs
THE Asset Management Corporation of Nigeria, AMCON may have begun to offload some of the shares it acquired from the non-performing loans of banks and other companies as the value of shares listed on the Nigerian stock market have rebounded to the level of 160.2 per cent or N8.5 trillion in five years
Specifically, the market capitalization of the Nigerian Stock Exchange, NSE which represents the total value of shares listed on the exchange rose from N5.3 trillion in 2009 to close last week Thursday at N13.8 trillion. This shows that many companies whose share prices crashed to the lowest in 2009 have climbed up tremendously. In the same vein, another stock market gauge, the All Shares Index , which reflects the price movement of shares rose by 84.9 per cent or 19,178 points from 22, 589 points in 2009 to close last week Thursday at 41,767points.
AMCON spokesperson, Mr. Kayode Lambo, confirmed the upsurge in the share prices of listed stocks on the NSE to Vanguard, saying “Yes, we know that the stock market has started bouncing back, so the shares that AMCON acquired by way of buying non-performing loans are being sold or will be sold. AMCON is holding shares in a lot of quoted companies. The shares were used as collateral for the non performing loans that AMCON was mandated to purchase and resolve. The shares came to AMCON’s position as a result of settlements /resolutions. “
When asked the volume of shares with AMCON “Lambo said “We cannot get you the right figure now but remember that AMCON did not acquire all of them, some were given to AMCON in settlement of debt.”
Continuing, he said “AMCON acquired non-performing loans, backed by shares of listed companies. The end process is that the corporation takes delivery of the non-performing loans, and the banks, instead of being stuck with illiquid, non-performing assets, have bonds that they will cash as they make new loans, and use the proceeds to fund the new loans. They can create new portfolio of loans in line with CBN‘s prudential guidelines. And as they make loans, they will be able to fund them.”
On the issue of sinking fund, the spokesperson for AMCON, had reassured banks under its debt recovery administration that contributions to the sinking fund would not go beyond the repayment period of their loans.
Some shareholders have repeatedly claimed that commercial banks’ contributions to the sinking fund had eroded their dividend. The sinking fund was set up to assist AMCON meet its goals and also ensure that government will not bear the cost of financial crisis.
Under the sinking fund arrangement, each bank contributes 0.5 per cent of its total asset and another 0.5 per cent of 33 per cent of their off balance sheet items to the sinking fund.
Mr. Lambo said that banks would not contribute to the sinking fund beyond the 10 years when AMCON assignment would have been completed. He said that the loan (bond) was used to rescue the banks during the financial crisis that affected the financial industry in 2008. “Contributing to the sinking fund stops immediately the loans are paid back. “The plan is that in 10 years, we believe that everything would have been resolved,” said Lambo He said that AMCON had already retired N1trillion in 2013 out of the N3.8trillion it owed, while it expected to redeem N800 billion in 2014
On the divestment from the bridge banks, Lambo said that the corporation decided to start with Enterprise Bank and Mainstreet Bank, stressing that Keystone would be sold last.
Shareholders reactions:
Reacting on the sale of some shares of AMCON, the Chairman, Progressive Shareholders Association of Nigeria, PSAN, Mr. Boniface Okezie, who spoke the minds of his shareholders group said “There is need for the corporation to be transparent in its dealings. This is because the corporation is being run by tax payer money. It is the Nigerians’ money that was used to set it up. In the first place if it is true that it has commenced the sale of those shares without the knowledge of the entire investing public it is wrong. There should be public notice if any share is to be offloaded by AMCON so that people who are interested to buy them will do so in a transparent manner.”
Continuing, he said “I keep saying it, there should be accountability in whatever AMCON does especially with regards to acquisition and sale of shares, so that the entire public knows what they spend and realise in their operations.
Most time, it is the banks shareholders that bear the brunt of some of their activities such as the sinking fund and what have you. The shareholders are suffering from all those acquisitions they made in the past. It is illegality, are the banks, so called bridge banks not making now.
On the issue of the upsurge in the stock market, Okezie said “ Yes, the market is doing well, the issue is that the retail local investors are not taking opportunity because of the past when the market crashed. The upsurge in those shares is an indication that many of the companies quoted on the NSE are doing well. So my advice to my fellow shareholders is to forget the past and invest more in the market so that we don’t allow the foreign investors to take all the gains and dictate the direction of the market for us. The market is not bad, even in the past.
The crash that we experienced was as a result of bad management of some companies. But, I still hope that the recent upsurge would be sustained if regulators and operators play the game very well to ensure that mal practices are checked.”
Reacting as well, the National Coordinator, Proactive Shareholders Association of Nigeria, PROSAN, Mr. Oderinde Taiwo said “First, AMCON operations and conducts is anti-investment since inception. Minority shareholders through various shareholders associations have in various forum criticized the activities of AMCON officials.
To me, the sale of shares of some of these companies without public awareness is wrong. Even the issue of the nationalized banks is still not settled as cases still in court are unresolved. So if AMMON is selling some of those shares acquired as a result of bad debts then it should be disclosed that certain volume of shares would be sold on the NSE.
Meanwhile, it will be difficult for AMMON to get foreign Investors because of lack of respect for the rule of law. Also, the federal government should call AMMON to order.
On the assessment of the stock market he said “My assessment of the recent upsurge to over N13 trillion capitalisation is good for our market. I think it will be difficult to sustain this trend since we are approaching election period. However, aggressive education and regulation from the regulators are needed.
Also, stakeholders’ positive contribution is also needed. Lastly, another, hindering factor is the fact that 2015 is our election year and the \ experience has shown that politicians do mop fund from all the sectors of the economy including the capital market l market.
The twin market indicators dipped marginally by 0.05% (5 basis points) to both close on Wednesday last week at 41,789.56 and N13.80trillion, respectively. Also, investment activity and levels plunged by 36.70 per cent and 49.58 per cent, respectively. Insurance and consumers goods stocks were not spared as the NSE Insurance Index and NSE Consumer Good Index dipped by 0.17 per cent and 0.21 per cent, respectively.
Analyst’s opinion:
Meanwhile , further analysis of the market shows that the market experienced significant sell-offs in most high cap stocks on Wednesday that last week, led by Seplat Petroleum, Nestle and Nigerian Breweries Plc which shed 2.16%, 0.36% and 0.28%, respectively. Also, the market breadth tilted in favour of 26 losers to 18 gainers. “Barring significant gains by the blue chip stocks, we expect the prevailing market posture to continue due to investors’ current apathy to the market, analysts opined.
According to them “ Whilst we await inflows in form of Federal Account Allocation funds (FAA), rates are expected to take a cue from the marginal rates. The bond market was bullish across most of the traded maturities. The biggest loser in yield terms was the June 2019 series, shedding about 20 points on the day. We expect demand to persist as both local and offshore interests keep bond prices elevated for the rest of the week.
Foreign stock markets:
The global stocks rallied amidst diplomatic efforts to ease tension in Ukraine and investors optimism of receding tensions in Russia. Consequently, the Dow Jones Industrial Average jumped 1.06%, to close at 16.838.74. The S&P 500 rose 0.85% to close at 1,971.74, while the NASDAQ Composite added 0.97%, to close at 4,508.31. The FTSE 100 gained 0.60% to close at 6,779.30, while Japan’s Nikkei and Hong Kong’s Hang Seng both gained 0.80% and 0.70%, respectively.
According to analysts “ We expect the Federal Reserve stance to gradually raise interest rate to trigger revival across the global markets. However, we are mindful of the slowdown in manufacturing growth in China and the Euro Area.”
National Bureau of Statistics has said that Nigeria’s Company Income Tax rose sharply in the second quarter of 2025, hitting N2.78 trillion.
The figure represents a significant 40.27 per cent increase compared to the N1.98 trillion recorded in the first quarter of the year, reflecting both improved tax compliance and stronger corporate performance across key economic sectors.
The NBS report said that domestic company income tax payments accounted for the bulk of the revenue, contributing N2.31 trillion, while offshore collections stood at N469.36 billion during the period under review.
According to the NBS, the financial and insurance sector recorded the highest quarter-on-quarter growth, rising by an astonishing 772.29 per cent, driven by improved profitability among banks, fintechs, and insurance firms following robust half-year earnings.
This, according to NBS, was followed by wholesale and retail trade, as well as motor vehicle repair activities, which grew by 538.38%.
Activities of households as employers also surged by 526.79%, although their overall contribution to total company income tax remained negligible.
On the flip side, some sectors experienced sharp declines in company income tax remittances.
Activities of extraterritorial organizations and bodies dropped by –45.01%, while education, public administration, defence, and compulsory social security recorded declines of –26.61% and –18.17% respectively.
The contraction in these sectors, particularly education and public administration, highlights persistent structural and fiscal challenges confronting government-funded institutions.
In terms of contribution to total tax revenue, financial and insurance activities led with a dominant 44.13%, reflecting the sector’s continuing expansion and strong capital flows.
Manufacturing followed with 15.57%, bolstered by increased production output and improved supply chain activity.
Mining and quarrying ranked third, contributing 9.18%, supported by higher commodity prices and renewed interest in solid mineral development.
At the bottom of the contribution chart were activities of households as employers, which accounted for just 0.01%, as well as activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management, and remediation services, each contributing 0.04%. Despite economic headwinds, year-on-year company income tax collection still rose by 12.66% when compared to Q2 2024, underscoring moderate but steady improvement in government revenue mobilisation.
Company income tax collection in the same period of 2024 rose by 150.83 per cent N2.47 trillion. In the first three months of the year, company income tax collection stood at N984.61 billion. According to the report, local payments in the period under review amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion. On a quarter-on-quarter basis, the agriculture, forestry, and fishing sectors exhibited the highest growth rate at 474.50%, followed by financial and insurance activities at 429.76%, and manufacturing at 414.15%.
Lagos State government has reaffirmed its unwavering commitment to supporting micro, small, and medium enterprises (MSMEs) across the state through visibility, capacity building, and market access. Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Ambrose-Medebem, made the pledge on Sunday at the closing ceremony of the 2025 Lagos International Trade Fair (LITF). The 38th edition of the event, organised by the Lagos Chamber of Commerce and Industry (LCCI), had its theme as “Connecting Business, Creating Value.”
Ms Ambrose-Medebem said every entrepreneur, regardless of scale, deserves an enabling environment to thrive and contribute meaningfully to the state’s economic prosperity. She said the state, through strategic investments in infrastructure, institutional reforms, and continuous engagement with the private sector, was building a Lagos that worked for business. The commissioner added that the state would continue to foster innovation, competitiveness, and sustainability.
“As a government, we remain steadfast in our commitment to making Lagos the preferred destination for commerce and enterprise. This fair has once again demonstrated the power of connection: connection between producers and consumers, investors and innovators, the government and the private sector, and local entrepreneurs and global brands. Every handshake, every conversation, every business card exchanged here is a building block toward the future we are creating, a future of prosperity that leaves no one behind,” she said.
The commissioner urged businesses to continue to connect, collaborate, and create value, saying, “In Lagos, we do not just trade goods; we trade ideas, build futures, and transform lives. “Together, let us continue to make Lagos not just a place of commerce, but a symbol of progress, innovation, and endless opportunity.” Gabriel Idahosa, president of LCCI, urged governments at all levels to continue addressing the issues of creating an enabling environment in the country.Mr Idahosa said focus should be on infrastructure, security, and implementing the right policies to address the key drivers of high inflation.
This, he said, was needed to fully harness the vast enterprising resources of domestic and foreign investors for the diversification of our economy and the welfare of our people. He pledged the commitment of the organised private sector to stand solidly behind the state in its quest to actualise its innovative initiatives on all fronts. NAN
Jumia Technologies AG posts a $17.7 million loss before income tax in the third quarter of 2025, down 1% year-on-year from $17.8 million in the third quarter of 2024. The road to profitability has remained long as ecommerce continues to face uncertainties, including widening competition with rivals in the same industry. The e-commerce company revenue came in at $45.6 million compared to $36.4 million in the third quarter of 2024, representing a 25% year-over-year surge in the period. The company reported gross merchandise value of $197.2 million compared to $162.9 million in the third quarter of 2024, up 21% year-over-year. Excluding South Africa and Tunisia, physical goods GMV grew 26% year-over-year, Jumia revealed in the unaudited financials.
Jumia said in its report that the GMV growth was driven by supply and strong marketing execution, partially offset by lower corporate sales in Egypt. Excluding corporate sales, GMV in reported currency grew 37% year-over-year. Nigeria’s momentum accelerated, with order growth up 30% and GMV up 43% year-over-year, Jumia said. The e-commerce giant’s operating loss reduced by 13% year-over-year to $17.4 million compared to $20.1 million in the third quarter of 2024. The company’s adjusted earnings before interest tax depreciation and amortisation loss dropped by 17% to $14.0 million compared to $17.0 million in the third quarter of 2024.
Jumia reported a loss before income tax of $17.7 million, a slight reduction of 1% compared to $17.8 million in the third quarter of 2024. Liquidity printed at $82.5 million, a decrease of $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included the net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.
Its net cash flow used in operating activities settled at $12.4 million compared to net cash flow used in operating activities of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million.
Jumia reported that customers’ orders grew 34% year-over-year, driven by strong execution, enhanced product assortment, and healthy consumer demand across key categories. It said quarterly active customers ordering physical goods grew by 23% year-over-year, highlighting continued engagement and customer loyalty. As of September 30, 2025, the Company’s liquidity position was $82.5 million, comprised of $81.5 million in cash and cash equivalents and $1.0 million in term deposits and other financial assets, it said in the report Jumia’s liquidity position decreased by $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.
Net cash used in operating activities was $12.4 million in the third quarter of 2025, compared to a net cash used of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million in the third quarter of 2025, compared to a negative working capital contribution of $9.1 million in the third quarter of 2024, primarily reflecting improvements in operating performance.
In addition, the Company reported $1.4 million in capital expenditures in the third quarter of 2025, compared to $0.9 million in the third quarter of 2024, primarily reflecting investments in infrastructure and facility enhancements to support business growth. “This quarter marks a significant acceleration in customer demand and order growth, driven by strong execution across our markets and growing consumer trust in the Jumia brand. We believe Jumia has reached an inflection point as our compelling value proposition, and improved operational discipline position us for sustainable, profitable growth.
“We continue to strengthen our cost structure and sharpen operational discipline, reinforcing our path toward profitability. Our focus remains on execution and customer engagement as we build a more efficient business.
“We believe that we are on track to reach breakeven on a Loss before Income tax basis in Q4 2026 and achieve full-year profitability in 2027, positioning Jumia for long-term growth and value creation.”
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