NewStats: 3,264,780 , 8,184,691 topics. Date: Thursday, 12 June 2025 at 11:09 AM 4u1q1h

Fair points, but I feel like they counterintuitively my concerns. If you think about it, Oando appears to be succeeding in getting asset-backed loans. But that doesn't mean the company itself is considered a reliable debtor. Lenders believe in the oil wells, not the company's vault. Does that make sense?

mikeapollo:

...
The bigget debt that Oando owes now are Reserve Based Loans (RBL) and Customer Financed Facility i.e. they have to sell crude oil to their creditor customer to finance and offset the facility.
...It was reported this week that they just got another USD375m RBL from Afreximbank, the same bank that financed the acquisition of ENI/AGIP assets.
A huge bank like Afreximbank would not just give out loans to a company if they do not see it as a viable business.

Great update, thanks. The one bank that has me scratching my head: GTCO.

fashionnisir:


Some Nigerian banks that have completed or are making progress in the recapitalization exercise include
Banks that have met the new capital threshold:
Zenith Bank: Successfully met the new capital requirements.
Access Holdings: Completed recapitalization requirements.
Ecobank Nigeria: Met the new capital threshold.
Lotus Bank: Successfully met the new capital requirements.
Banks raising capital:
Fidelity Bank: Raised N127 billion as part of the recapitalization exercise, being the first to enter the market.
Wema Bank :Planning to raise N200 billion in fresh capital through a Rights Issue and Special Placement Exercise.
Other banks:
Stanbic IBTC: Still in the process of recapitalization.

The Central Bank of Nigeria (CBN) has set a deadline of March 31, 2026, for banks to meet the new capital requirements, which range from N50 billion to N500 billion depending on the type of license held by the bank. The recapitalization exercise aims to boost capital adequacy, increase market liquidity, and drive economic growth .

HesInMe:
Fair points, but I feel like they counterintuitively my concerns. If you think about it, Oando appears to be succeeding in getting asset-backed loans. But that doesn't mean the company itself is considered a reliable debtor. Lenders believe in the oil wells, not the company's vault. Does that make sense?

It is all part of the assessment of credit worthiness.
It is the assets you have and what you can produce that will fill the vaults. The oil wells in Nigeria and Angola are more than enough to produce and fill the vaults but it will take some time.
If Oando should be liquidated today and the assets are sold to settle all debts, the net worth of it's assets cannot be less than N500 per share. So it's intrinsic value is way above the current price.

What changed your mind?
I honestly never saw ann issue. Yes it will be much lower EPS and with no FX booster too, earnings will be lower across board but most of these banks will raise their payout ratios, so dividend will be maintained or even increased and the efficient banks with high ROE’s like GT will make good use of the funds.

HesInMe:
Tell them. I don't understand the reflexive hyper-antagonism to, and the need to counter every single word of, contrarian views. I love when people disagree with me with sound, practical analysis. Helps me check my blind spots well well.

I, too, own Oando, and no fair reading of their balance sheet and auditor's reports could see this company emerging from its mountain of debt anytime soon.

And I've started buying banks o, despite my early skepticism. But only those that have completed recapitalization and have a long runway.

Streetinvestor2:
AAlhaji no come play us game like we had in the cement. If you are coming to list make sure we see like 20% not you will come and drop 5% .Then everyone will be chasing it

On another news ASi to hit 120k go dey easier with this listing. We should be expecting fpi to nxg be dat.It will bring mad bull
Then look out for companies that will benefit from this moves direct/ndirectly too.

Usually when a company lists by introduction, price from first shoots up then falls.. will same scenario play out with dangote oil refinery and fertilizer?

Raider76:
What do you think Alhaji's surprise may be?



https://www.youtube.com/watch?v=80clmhWHDhA?si=AeBt4UvHArYxPPDl

Legend. This is the man whose first name should be "government"

Mpeace:
From the video, he intends listing the fertiliser first.
He said the surprise will come next week and it will result in an overhaul of the downstream sector. And that the refinery will come on nse after the fertiliser. Hmmmm.
Make we just dey look sha

The surprise next week obviously isn't listing.. let's wait and see what he's talking about. Perhaps he's going into petroleum products marketing (stations)?

SonofElElyonRet:

The surprise next week obviously isn't listing.. let's wait and see what he's talking about. Perhaps he's going into petroleum products marketing (stations)?

I guess so since he said it’s going to change the downstream sector.
Or perhaps a new deal with NNPC to be their sole supplier again?

SonofElElyonRet:

The surprise next week obviously isn't listing.. let's wait and see what he's talking about. Perhaps he's going into petroleum products marketing (stations)?

Make he come buy eternal oil. Or is it totalenergies?

I think it might have something to do with NSE cos he talked about SEC

Mankind2024:
Chuka Mordi's Arise TV interview is on YouTube. He attributed revenue to Fresh Fruit Bunches.


https://www.youtube.com/watch?v=nlJZtZbK8IE?si=H16dcfrv-8CzFYWF

What's the rumour of possible acquisition all about....abi PRESCO or OKOMUOIL wants to aquire them?

Mpeace:
Make he come buy eternal oil. Or is it totalenergies?

I think it might have something to do with NSE cos he talked about SEC

or OANDO

Princkez:
or OANDO

Lol. Oando no dey downstream again

DANGOTE REFINERY and OANDO collaboration.....I'm just thinking ooo

GeneralDae:

I guess so since he said it’s going to change the downstream sector.
Or perhaps a new deal with NNPC to be their sole supplier again?

Or acquisition of NNPC

GeneralDae:

I guess so since he said it’s going to change the downstream sector.
Or perhaps a new deal with NNPC to be their sole supplier again?

Exactly!

EDUECO:

Even if they are sustainable; I tend to play the equity market business in the safest way possible,and so I only buy shares of companies with consistent good or excellent dividend payment.

Can a company fake the payment of good dividends consistently for like 10 years? The answer is no!

Well, it's too early to berate MTNN for not paying dividend.

Good day everyone please i need some form of advice from the gurus, i have 2m and i want to plan towards my moms retirement! I want to buy 2m worth of nidf stock for her cause of the quarterly dividend yield and its low volatility, please is this sound enough and if yes, whats the best price to get it at, as it last traded 111.70 l

SonofElElyonRet:

Usually when a company lists by introduction, price from first shoots up then falls.. will same scenario play out with dangote oil refinery and fertilizer?

Dangote has applied to list the Dangote petrochemicals.

“Speaking on the impact of Dangote Petrochemicals’ listing, Kwairanga highlighted NGX’s commitment to facilitating growth and investment in Nigeria’s financial markets”.

“Dangote Refinery has already applied for their petrochemical listing, and we are working to ensure their inclusion before the end of the second quarter,” Kwairanga stated.

https://nairametrics.com/2025/06/07/dangote-petrochemicals-listing-on-ngx-to-strengthen-nigerias-stock-market-chairman-kwairanga/

GeneralDae:

Dangote has applied to list the Dangote petrochemicals.

“Speaking on the impact of Dangote Petrochemicals’ listing, Kwairanga highlighted NGX’s commitment to facilitating growth and investment in Nigeria’s financial markets”.

“Dangote Refinery has already applied for their petrochemical listing, and we are working to ensure their inclusion before the end of the second quarter,” Kwairanga stated.

https://nairametrics.com/2025/06/07/dangote-petrochemicals-listing-on-ngx-to-strengthen-nigerias-stock-market-chairman-kwairanga/

Nice

Agbalowomeri:


Or acquisition of NNPC

on petrochemicals..
for your reading pleasure
https://chandra-asri.com/en/blog/what-is-petrochemical

GeneralDae:

Dangote has applied to list the Dangote petrochemicals.

“Speaking on the impact of Dangote Petrochemicals’ listing, Kwairanga highlighted NGX’s commitment to facilitating growth and investment in Nigeria’s financial markets”.

“Dangote Refinery has already applied for their petrochemical listing, and we are working to ensure their inclusion before the end of the second quarter,” Kwairanga stated.

https://nairametrics.com/2025/06/07/dangote-petrochemicals-listing-on-ngx-to-strengthen-nigerias-stock-market-chairman-kwairanga/

We are watching closely

Chuksido:
Good day everyone please i need some form of advice from the gurus, i have 2m and i want to plan towards my moms retirement! I want to buy 2m worth of nidf stock for her cause of the quarterly dividend yield and its low volatility, please is this sound enough and if yes, whats the best price to get it at, as it last traded 111.70 l

Invest in FBNQuest Money Market Funds and leave stock alone.

Select quarterly payout.

GeneralDae:

Dangote has applied to list the Dangote petrochemicals.

“Speaking on the impact of Dangote Petrochemicals’ listing, Kwairanga highlighted NGX’s commitment to facilitating growth and investment in Nigeria’s financial markets”.

“Dangote Refinery has already applied for their petrochemical listing, and we are working to ensure their inclusion before the end of the second quarter,” Kwairanga stated.

https://nairametrics.com/2025/06/07/dangote-petrochemicals-listing-on-ngx-to-strengthen-nigerias-stock-market-chairman-kwairanga/

That's June ending latest.. dangote said fertilizer will be listed first. Meaning we might have both fertilizer and refinery listed this month

SonofElElyonRet:

That's June ending latest.. dangote said fertilizer will be listed first. Meaning we might have both fertilizer and refinery listed this month

Hmm he also said before the end of the year (a tone that doesn’t show indication of urgency). Fingers crossed though. We dey here.

SonofElElyonRet:

The surprise next week obviously isn't listing.. let's wait and see what he's talking about. Perhaps he's going into petroleum products marketing (stations)?

I suspect it could be buying up MRS and some downstream businesses. That way, he controls his own distribution.

But downstream is a thin margin business. Borrowing commercial papers at 20+% to enter downstream guarantees his output distribution but mehn…I hate that business.
Also, I’d have thought he will want to focus more on upstream to ensure sweet crude supply (he applied for some licenses in Angola and started producing 15k barrels daily in Nigeria)

Youngzedd:


Invest in FBNQuest Money Market Funds and leave stock alone.

Select quarterly payout.

Will you get more than 20% returns annually?

Olaide1295:

I suspect it could be buying up MRS and some downstream businesses. That way, he controls his own distribution.

But downstream is a thin margin business. Borrowing commercial papers at 20+% to enter downstream guarantees his output distribution but mehn…I hate that business.
Also, I’d have thought he will want to focus more on upstream to ensure sweet crude supply (he applied for some licenses in Angola and started producing 15k barrels daily in Nigeria)

He just likes being self dependent

I think Alhaji wants to control the entire value chain of the Downstream sector. And you can be sure that he will indeed bring a revolution to the sector.
He has the refinery. Now he needs to ensure adequate and steady supply so a lot of bottlenecks that makes the sector a 'thin margin' business will be eliminated.

This could be another way to actually beat the importers at their game aside creating a seamless supply chain

I only hope he succeeds... 🤞🏾

Olaide1295:

I suspect it could be buying up MRS and some downstream businesses. That way, he controls his own distribution.

But downstream is a thin margin business. Borrowing commercial papers at 20+% to enter downstream guarantees his output distribution but mehn…I hate that business.
Also, I’d have thought he will want to focus more on upstream to ensure sweet crude supply (he applied for some licenses in Angola and started producing 15k barrels daily in Nigeria)

moneymanager:


Will you get more than 20% returns annually?

This is not guaranteed. The fact that today's rate is above 20% doesn't imply it will stay so for the 365 days in a year. The rates change on daily basis. Money market rate changes with MPR interest rate. If inflation goes down this rates will go down and vice versa.
We have seen money market rates around 10% not so longer than 3 years ago.

If anyone wants a guaranteed return, it's only the FGN bonds that will be the choice.