Nigeria Weekly Business Roundup: Bank Rally, Crypto Tax Rules, and a Trillion-Dollar Ambition

Market rally led by banks

Nigerian equities had a strong week, driven almost entirely by the banking sector. FirstHoldCo became the first Nigerian bank to cross the N6 trillion market capitalisation mark, a milestone that coincided with Chairman Femi Otedola adding another 138 million shares — worth roughly N18.1 billion — to raise his stake to 26.1%. Zenith Bank also featured prominently in the rally, with the two lenders drawing investor bets on strong earnings and improved capital positions following recapitalisation.

The broader market's week was volatile but net positive: the NGX opened August with a gain of roughly N289 billion, added N191.77 billion on a strong Thursday, and banking stocks alone lifted the index by N288 billion and later N70.6 billion even as consumer goods stocks sold off. FUGAZ banks (First Bank, UBA, GTCO, Access, Zenith) collectively delivered N237.8 billion in gains in the first week of August. That said, the market wasn't one-directional — on at least one session, Nestlé and First HoldCo dragged the index down by N599 billion, a reminder that consumer goods names remain under pressure from cost inflation even as banks outperform.

Turnover also jumped, with banking stocks helping push NGX trading volume up 32% to N404.7 billion.

Naira slips after a strong start

The naira had a mixed week. It opened August with appreciation against the dollar, but by midweek had begun a multi-day slide, extending depreciation through Thursday, Friday and into the weekend. July itself closed on a weak note, with the naira ending the month at roughly N1,368.22/$ after its fifth straight day of depreciation.

Despite the currency's late-week wobble, the Central Bank of Nigeria struck an upbeat tone on the broader FX picture: CBN Governor Olayemi Cardoso pointed to reserves nearing $52.5 billion and an official-parallel market gap that has narrowed to below 2% as evidence of a stabilising economy — even as reserves shed about $114 million over seven days after peaking near $52.04 billion.

Crypto taxation takes centre stage

Nigeria's new crypto tax regime was one of the week's dominant themes. The Nigeria Revenue Service (NRS) issued formal guidelines for taxing virtual assets, made a Tax Identification Number mandatory for new crypto account activations, and signalled that crypto companies will face a 30% income tax. Exchanges that fail to comply face fines of up to N10 million.

Reaction was mixed. Some analysts framed the rules as a TIN-first approach meant to pull traders "out of the shadows," while a coalition of industry voices warned the changes could hit Nigeria's roughly $92 billion digital-asset market and dampen innovation. Nigerians pushed back specifically against what some called a "tax on movement," calling instead for profit-based taxation, and separate reporting noted the rules now extend to stamp duties on crypto transactions as well.

Corporate earnings: a mixed half-year

H1 2026 earnings season produced a wide spread of results across sectors:

• Energy/oil & gas: NNPC posted a H1 profit of N2.27 trillion (down 35.4% year-on-year) while remitting N6.3 trillion to the federation; Aradel reported a N753 billion pre-tax profit; Oando swung to a N68.5 billion half-year net profit after cutting its pre-tax loss by 77%; Seplat sold a 10% JV stake to NNPC for $281.6 million.
• Banking/financials: VFD Group doubled its half-year profit to roughly N10 billion; eTranzact's profit fell 19% as costs outpaced revenue; LivingTrust Mortgage Bank's profit crashed 76% despite stronger deposits.
• Consumer/industrial: BUA Foods delivered double-digit profit growth on margin discipline; Beta Glass posted N79.7 billion in revenue amid cost pressures; Chellarams returned to profitability with N1.45 billion after an 84% revenue jump; Vitafoam's profit rose 45% on strong cash flow.
• Insurance: Linkage Assurance grew profit 74%; several insurers — Consolidated Hallmark, CHI Life, Regency Alliance, Rex Insurance — cleared NAICOM's recapitalisation hurdle, with NAICOM confirming 43 insurers have now met the new minimum capital requirements.

A recurring undertone across consumer goods names was cost pressure: one analysis found consumer goods giants are now spending N75 of every N100 earned just on costs.

Big-picture economy

Federal officials continued pushing a "trillion-dollar economy" narrative. President Tinubu reaffirmed commitment to listing NNPC on the NGX and credited economic reforms for the H1 profit surge among listed companies, whose revenues were reported at N14.40 trillion. Nigeria's foreign reserves, debt profile (public debt now at N159.35 trillion), and the CBN's tight monetary stance remained talking points, with the Centre for the Promotion of Private Enterprise (CPPE) warning that tightening is worsening a N50 trillion development finance gap for the real sector.

On the ground, cost-of-living pressure persisted: reports highlighted households suspending home and car purchases, edible oil driving food inflation higher, and Nigerians earning N150,000–N250,000 feeling inflation most acutely, even as headline fears eased slightly according to a CBN survey.

Also notable

• Otedola/FirstHoldCo: Beyond the share purchase, Otedola gave his first interview since becoming FirstHoldCo chairman, and the bank signalled it would pay out 60% of annual profit as dividends.
• Cybersecurity: Zenith Bank confirmed a cyber incident that exposed customer contact details and urged account holders to check their deposits.
• Startups/tech: Moove became Africa's most valuable mobility unicorn at a $2.1 billion valuation after raising $250 million, overtaking Egypt's MNT-Halan and Algeria's Yassir; Africa's unicorn club grew to 10 companies, with Nigeria still the continent's dominant hub.
• Energy policy: The Dangote Group cut petrol and diesel prices as crude fell, with more filling stations following suit; separately, Dangote Refinery reportedly turned to Libyan crude as Nigerian supply slowed, and is said to be targeting a $5 billion IPO by October.
• Oil prices: Brent crude dropped below $80 on progress in talks over the Strait of Hormuz, pressuring Nigeria's crude-dependent revenue outlook even as NUPRC reported over $57 billion in oil and gas development plans approved since 2024.