Dangote Plans Construction of Nigeria’s Largest Seaport

Sunday 20th July 2025

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Aliko Dangote is moving forward with a proposal to build a seaport in Ogun State to facilitate exports, including liquefied natural gas.

Bloomberg's report on Monday anticipates the move will accelerate the expansion of Mr Dangote's conglomerate, citing an interview with Africa's richest man.

According to the outlet, an application to the authorities last month sought "to build the biggest, deepest port in Nigeria" in Olokola.

The original intention for the free trade zone was to house Mr Dangote's massive oil refinery and petrochemical plant, which is now on the outskirts of Lagos. Unfortunately, a deadlock with the government derailed the plan.

The port intends to connect the Dangote Group's logistics and export operations in Lagos, including the Lekki Deep Sea Port, where it currently ships petroleum products and fertilisers overseas.

“It’s not that we want to do everything by ourselves, but I think doing this will encourage other entrepreneurs to come into it,”

Bloomberg quoted Mr Dangote as saying.

First HoldCo denies Otedola and FG involvement in the N323.4 billion share sale.

First HoldCo Plc has officially denied reports linking its chairman, Femi Otedola, to the recent N323.4 billion block sale of its shares, clarifying the parties involved in the deal.

In a statement signed by First HoldCo's Company Secretary, Adewale Arogundade, on Friday, the company addressed rumours circulating in print and digital media about the ownership of shares exchanged in the recent off-market transaction.

"We wish to state that the Chairman of FirstHoldCo, Mr. Femi Otedola, did not purchase any of the shares in question, nor did the Federal Government of Nigeria, nor any of its Agencies, acquire the shares in Trust," a portion of the statement states.

The company stated that Otedola did not buy any of the shares involved in the transaction.

The statement continued:

"The sellers were Barbican Capital Limited & affiliates and Leadway Group & affiliates, and the buyer was RC Investment Management Limited."

This clarification follows market speculation and widespread rumours about a potential shift in First HoldCo Plc's shareholding structure, which occurred after a bi block transaction on the Nigerian Exchange Limited in mid-July.

Fitch Ratings Downgrades Afreximbank’s Rating

Fitch Ratings recently downgraded Afreximbank's Long-Term Issuer Default Rating (IDR) from 'BBB' to 'BBB-', with a negative outlook.

The decision reflects Fitch's reassessment of Afreximbank's credit risk profile due to concerns about its exposure to African sovereign borrowers and the management of loan performance.

Notably, Fitch estimated Afreximbank's non-performing loan (NPL) ratio at 7.1% in 2024, which is significantly higher than the bank's reported 2.3%.

This disparity stems from different loan classification methodologies, highlighting loans to Ghana, South Sudan, and Zambia as problematic due to their restructuring or default status.

Experts Predict a Hold on MPR Amid Moderate Inflation and Naira Stability

Ahead of the Central Bank of Nigeria's Monetary Policy Committee (MPC) meeting on July 22, 2025, analysts predict a hold on the Monetary Policy Rate (MPR), which is currently at 27.5%.

The consensus expresses cautious optimism about moderate inflation and exchange rate stability, which balances ongoing risks to growth and price pressures in key sectors.

Most analysts expect the committee to keep all key monetary parameters unchanged—the MPR at 27.5%, the Cash Reserve Ratio (CRR) at 50%, and the Liquidity Ratio (LR) at 30%—citing the need to build on previous hikes while maintaining investor confidence.

However, some expect a slight rate cut to 27.25%, along with an adjustment to the asymmetric corridor, to signal a fine-tuning strategy as macroeconomic conditions change.

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Thank you for reading! Stay tuned next week to be updated with the latest major events from the Nigerian commercial sector.