Business
Conoil slashes FY’25 dividend nearly 50% as profit drops 75%
By Philippine Duru
philippineobetoduru@gmail.com
08034905774
Conoil Plc, the oil marketing company owned by Nigerian billionaire Mike Adenuga, has announced a sharp reduction in its full-year 2025 dividend after posting a steep decline in profitability, reflecting mounting pressure in the downstream oil sector.
The company revealed that its net profit plunged by about 75 per cent year-on-year, forcing a significant downward revision of shareholder returns as earnings weakened across its core business segments.
As a result of the earnings contraction, Conoil slashed its FY’25 dividend payout by nearly half compared to the previous financial year, marking one of its most substantial dividend reductions in recent years and signalling a more cautious outlook for investors.
The profit downturn was attributed to a combination of rising operating costs, foreign exchange volatility, tighter margins in petroleum product distribution, and competitive pressures in Nigeria’s deregulated downstream oil market. Industry analysts also pointed to broader macroeconomic headwinds, including inflationary pressures and fluctuating global crude oil dynamics, as contributing factors.
Despite the decline, the company maintained that it remains fundamentally resilient, with management emphasizing ongoing efforts to optimize operations, strengthen supply chain efficiency, and protect profitability amid a challenging market environment.
Conoil operates across the downstream oil and gas value chain, including petroleum product marketing, aviation fuel supply, and lubricant production and distribution. The sector has faced increasing volatility since Nigeria fully deregulated petrol pricing, exposing marketers to sharper input cost swings and more competitive pricing structures.
Analysts say the steep drop in earnings reflects the broader struggles of oil marketing firms adjusting to post-subsidy removal realities, where margins are increasingly influenced by global pricing trends and foreign exchange liquidity conditions.
Market observers noted that the dividend cut may weigh on investor sentiment in the short term, particularly among income-focused shareholders who have historically relied on Conoil for stable dividend returns.
However, some analysts argue that the reduction may be a necessary step to preserve balance sheet strength and support reinvestment in operations at a time when the downstream sector is undergoing structural transformation.
“Profitability across oil marketing companies has become more volatile due to deregulation and FX pressures. Firms are now prioritizing liquidity retention and operational efficiency over aggressive dividend payouts,” a Lagos-based energy analyst said.
The company’s performance also reflects broader trends in Nigeria’s oil and gas marketing industry, where firms are grappling with elevated logistics costs, foreign currency exposure, and shifting demand patterns.
Despite the weak earnings, Conoil is expected to continue benefiting from its strong brand presence and extensive retail network, which remain key competitive advantages in the downstream sector.
Investors will now be watching closely for signals on whether the earnings slump represents a cyclical downturn or a more prolonged adjustment phase for the company as Nigeria’s fuel market continues to evolve.
The sharp reduction in dividend payout underscores the increasing pressure on listed energy firms to balance shareholder returns with operational sustainability in an era of heightened market volatility and regulatory transition.
Business
North African Airline incurs Nigeria’s wrath
By Philippine Duru
philippineobetoduru@gmail.com
08034905774
Nigeria has warned EgyptAir to modernise the aircraft deployed on its Nigerian routes, stressing that continued use of ageing planes could affect the airline’s operations in the country.
The Minister of Aviation and Aerospace Development, Festus Keyamo, gave the warning during a bilateral meeting with his Egyptian counterpart, Sameh El-Hefny, on the sidelines of the ongoing El-Alamein International Airshow (EIAS 2026) in Egypt.
According to a statement issued by Keyamo’s media aide, Tunde Moshood, the meeting focused on improving air connectivity between Nigeria and Egypt and strengthening cooperation between the two countries’ civil aviation authorities.
The discussions also covered the expansion of technical and professional capacity, as well as opportunities for greater collaboration among airlines, airports, regulators and other aviation stakeholders.
Keyamo specifically urged EgyptAir to deploy newer-generation aircraft on its Nigerian routes, rather than continuing with what Nigeria considers ageing aircraft.
“The minister also used the engagement to emphasise the need for a stronger and more modern fleet deployment by EgyptAir on its Nigerian routes,” Moshood said.
He said Keyamo urged the airline’s management to move away from the continued deployment of ageing aircraft and prioritise newer-generation aircraft in the Nigerian market.
According to the minister, fleet modernisation was essential to improving passenger experience, operational efficiency and the airline’s competitiveness.
Keyamo further stressed the strategic importance of Nigeria-Egypt aviation relations, noting that both countries occupy important positions within Africa’s aviation ecosystem.
He reaffirmed Nigeria’s commitment to expanding strategic international partnerships to improve air connectivity, promote tourism and trade, support airline growth and deliver greater value to passengers and the aviation industry.
The Nigerian delegation also expressed the country’s readiness to work with Egypt’s Ministry of Civil Aviation to identify areas of mutual cooperation, particularly within the framework of the Single African Air Transport Market (SAATM).
Responding, El-Hefny welcomed the engagement and reaffirmed Egypt’s commitment to deepening aviation cooperation with Nigeria.
He called for closer collaboration between the two countries to advance air transport development and strengthen links between their aviation industries.
The Egyptian minister also advocated stronger institutional cooperation between the African Civil Aviation Commission (AFCAC) and the League of Arab Civil Aviation (LACA).
“Enhanced collaboration between the two regional aviation bodies could promote stronger partnerships and facilitate greater cooperation among African and Arab States,” El-Hefny said.
The meeting ended with both ministers reaffirming their commitment to sustained dialogue, stronger institutional cooperation and initiatives aimed at delivering tangible benefits to the aviation sectors of Nigeria and Egypt.
Business
₦10m monthly made from akara and bread business -Umo Eno
Philippine Duru
philippineobetoduru@gmail.com
08034905774
Akwa Ibom State Governor, Umo Eno, has recounted his early experience in entrepreneurship, revealing that he once made not less than ₦10 million in a month from selling akara and bread.
Eno, who spoke while reflecting on his journey before entering public service, said the business experience played an important role in shaping his understanding of enterprise, hard work and wealth creation.
According to the governor, he started from a modest venture involving the sale of akara and bread before gradually expanding his business activities.
“I started selling akara and bread. I made not less than ₦10m in a month,” Eno said.
The governor’s account highlights the entrepreneurial path he pursued before rising through the ranks in business and eventually becoming governor of Akwa Ibom State.
Eno has frequently emphasised the importance of entrepreneurship and economic empowerment, particularly as a means of creating opportunities for young people and reducing dependence on government employment.
His recollection of the akara and bread business also underscored his view that small businesses, when properly managed and supported, can grow into significant sources of income and employment.
The governor’s comments come amid growing conversations around entrepreneurship, youth empowerment and the need to create sustainable livelihoods in Nigeria, where many young people are turning to small and medium-scale enterprises to earn a living.
Eno has continued to advocate policies and initiatives aimed at expanding economic opportunities and encouraging residents to become self-reliant through productive ventures.
His story of moving from selling akara and bread to occupying the highest political office in Akwa Ibom has also been presented as an example of how entrepreneurship, persistence and business experience can shape an individual’s journey to leadership.
Business
All share index gains about 0.81% as NGX rebounds
The Nigerian Exchange Limited (NGX) rebounded last week, with the All-Share Index (ASI) gaining about 0.81 per cent to close at 241,298.47 points, as renewed investor interest in oil and gas and banking stocks lifted market sentiment.
The week’s gain translated into an estimated ₦1.29 trillion increase in market capitalisation, pushing the value of listed equities to about ₦155.83 trillion.
With the latest appreciation, the NGX’s year-to-date return remained strong at approximately 55 per cent, underscoring the market’s substantial gains despite intermittent periods of profit-taking and volatility.
The recovery was largely driven by buying interest in oil and gas and banking stocks, with Seplat Energy among the notable gainers during the week.
Market sentiment also received a boost from developments in Nigeria’s international financial-market standing. FTSE Russell confirmed the country’s reclassification to Frontier Market status, effective September 21, 2026, a move expected to influence international investor positioning toward Nigerian equities.
Further support came from Moody’s decision to revise Nigeria’s outlook to positive, reinforcing expectations that ongoing economic and fiscal reforms could improve the country’s credit profile.
Despite the positive performance, trading activity was relatively subdued, partly reflecting the shortened trading week. Market volume declined as investors adopted a more cautious approach amid prevailing economic uncertainties and profit-taking pressures.
Analysts said the latest rebound highlights continued investor appetite for fundamentally strong sectors, although the sustainability of the market’s upward trajectory will depend on macroeconomic conditions, corporate earnings, foreign investor participation and policy developments.
As investors enter a new trading week, attention is expected to remain on the performance of banking and energy stocks, while the implications of Nigeria’s forthcoming Frontier Market reclassification could further shape sentiment and capital flows into the equities market.
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