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Just in: FBNH, UBA, GTCO, Access Bank, drop out of trillion market cap club

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By Kayode Sanni-Arewa

Nigerian banks experienced a challenging April, as all major banking stocks posted losses month-to-date.

This downturn coincided with the first month-to-date decline in the NGX All Share Index of the year, which lost 6% in April this year.

The most impacted were the FUGAZ banks—First Bank, UBA, GTCO, Access Bank, and Zenith—although Zenith was the only one to maintain its position in the SWOOT (Stocks Worth Over One Trillion Naira) index.

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As of December 2023, Nigeria’s largest banks had a total net asset value of N9.7 trillion but only a combined market capitalization of N4.2 trillion ($ billion), translating to a price-to-book ratio of 0.43, or 43%.

This indicates that investors significantly undervalue banks compared to their book values.

Amid this, challenger banks like Opay and Kuda Bank are valued above $1 billion, despite their smaller operational scales.

According to the Nairametrics SWOOT Index, as of April, FBN Holdings, UBA, GTCO, and Access Bank each fell below the trillion naira market cap, a level they last exceeded in January when they briefly hit this milestone.

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Access Bank: Since January, these banks have seen substantial declines in market capitalization.

For instance, Access Bank, Nigeria’s largest bank by assets, last reached the N1 trillion mark in late January.

By the end of April, its market cap had fallen to about N598.9 billion, despite having over N32 trillion in total assets and N2.5 trillion in net assets.

Similarly, UBA, with total assets and net assets of N20.6 trillion and N2 trillion respectively, saw its market cap drop from over N1 trillion in January to N817.3 billion at April’s end.

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FBN Holdings, Nigeria’s oldest bank, saw its market cap peak just above N1 trillion in early April but fell to N857.8 billion by April 30th, 2024.

GTCO also experienced a dip; valued above N1 trillion as recently as April 26th, it ended the month with a market capitalization of N962.3 billion.

Zenith Bank, however, remained in the SWOOT, though it risks dropping below if the sell-offs continue into May 2024. It has total and net assets of N20.3 trillion and N2.3 trillion, respectively

Why Nigerian banks are undervalued
Several factors contribute to these low valuations relative to net assets, despite consistent dividend payouts.

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Some analysts attribute it to the high liquidity of bank stocks, while others point to a general disinterest in the Nigerian stock market, suggesting that intrinsic stock values are seldom reached.
A more recent factor is the banking recapitalization announcement by the apex bank, which requires banks to raise over N4 trillion in new capital.

This has likely prompted a sell-off, as lower share prices benefit bank shareholders when the capital increase is through a rights issue.

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Osun East constituents begin recall bid against Senator Fadahunsi over alleged incitement

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Youths and concerned residents of Osun East Senatorial District have commenced moves to recall Senator Francis Adenigba Fadahunsi from the National Assembly over an alleged inciting statement linked to the 2026 Osun State governorship election.

The development followed a peaceful protest organised by the Coalition of Osun East Youths and Concerned Citizens in Ilesa, Osun State, on Wednesday.

The protesters, who carried placards with various inscriptions, assembled at the Enuwa Roundabout and marched through Isokun and the Ilesa Market Square before ending the procession at the entrance of the Owa-Obokun Palace.

The group accused Fadahunsi of making an alleged inflammatory statement during the election period and demanded accountability over what they described as conduct capable of heightening political tension in the district.

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Beyond the allegation, the protesters also criticised the senator’s performance in office, claiming that he had failed to adequately represent the interests and aspirations of constituents in Osun East.

However, Fadahunsi has denied making the statement attributed to him in a viral video.

The senator previously alleged that the video, which circulated during a protest by members of the All Progressives Congress over alleged attacks on party supporters, had been manipulated and deliberately circulated to damage his reputation.

Speaking during Wednesday’s protest, one of the organisers, Olorunfemi Olatunji, said the demonstration marked the beginning of efforts to remove Fadahunsi through the constitutional recall process.

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According to him, the group has already submitted a petition and is preparing to take the necessary legal and constitutional steps, including travelling to Abuja to advance the process.

Olatunji said the senator’s alleged poor representation, coupled with his conduct during the 2026 governorship election campaign, had deepened dissatisfaction among constituents.

He said the protesters would continue with the recall process and pursue all required procedures under the law.

The Chairman of the National Youth Council of Nigeria in Osun State, Akinbode Olakolupo, also expressed support for calls for action against the senator.

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Olakolupo urged relevant authorities to investigate allegations surrounding incitement, threats, killings and other acts of political violence reportedly associated with the election period.

He further called on security agencies to intensify efforts to recover illegal firearms allegedly being used by political thugs and criminals across the state.

The recall bid is expected to face the constitutional procedures governing the removal of elected lawmakers, including the collection and verification of signatures from registered voters in the affected senatorial district.

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2023 Poll: “I Knew We Would Lose” — Okowa Reveals What He Told Christian Leaders Before Election

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Former Delta State Governor and 2023 Peoples Democratic Party (PDP) vice-presidential candidate, Ifeanyi Okowa, has revealed that he knew before the presidential election that the party was unlikely to emerge victorious.

Okowa made the disclosure in a video circulating online, while reflecting on the 2023 presidential contest and the performances of the PDP, Labour Party (LP) and All Progressives Congress (APC).

Despite serving as the running mate to former Vice President Atiku Abubakar, the former governor said he had already reached the conclusion that the PDP would not win the election.

“Although I was the vice-presidential candidate, I knew that we would not win the election,” Okowa said.

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He also reflected on the unexpected rise of the Labour Party and its presidential candidate, Peter Obi, during the 2023 campaign.

Obi, who had left the PDP and secured the Labour Party presidential ticket, attracted significant support, particularly among younger voters and in parts of southern Nigeria.

According to Okowa, there was a point during the election build-up when political observers and some Christian leaders believed the Labour Party had a realistic chance of winning the presidency.

He recalled telling Christian leaders about the emerging political calculations and the expected distribution of votes.

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“And in one way, even when I met the Christian leaders, I told them, this is where the P6 came in. And the votes came in, so the P6 came and we thought that the Labour Party would win,” he said.

Parts of Okowa’s remarks in the circulating video were unclear, making it difficult to establish the full context of some of his comments about the conduct of the election in certain parts of the country.

How PDP Lost the 2023 Presidency

The 2023 presidential election was won by APC candidate Bola Ahmed Tinubu, according to results announced by the Independent National Electoral Commission (INEC).

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Tinubu secured 8,794,726 votes, while Atiku Abubakar polled 6,984,520 votes and Peter Obi received 6,101,533 votes.

The outcome was fiercely contested, with both Atiku and Obi challenging Tinubu’s victory at the Presidential Election Petition Court.

Their legal challenges were unsuccessful, with the courts ultimately upholding Tinubu’s victory.

The election nevertheless triggered widespread debate over electoral transparency, vote transmission, voter turnout and the performance of political parties.

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2027: Atiku Moves to ADC

Okowa’s comments come as Nigeria’s opposition landscape undergoes another major realignment ahead of the 2027 general election.

Atiku has since left the PDP and joined the African Democratic Congress (ADC), where he has emerged as the party’s presidential candidate.

Former Rivers State Governor Rotimi Amaechi has also been announced as his running mate, setting the stage for another major presidential contest.

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With Tinubu seeking another term and opposition politicians working to build a stronger coalition, the lessons and controversies surrounding the 2023 election are expected to remain central to the political debate ahead of 2027.

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‘Vote for My Husband in 2027’ — Remi Tinubu Appeals to South-East Voters

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Nigeria’s First Lady, Senator Oluremi Tinubu, has appealed to voters in the South-East to support President Bola Ahmed Tinubu’s bid for re-election in the 2027 presidential election.

The First Lady made the appeal in Owerri, Imo State, during an official visit to distribute empowerment items to women as part of the Federal Government’s efforts to promote women’s economic participation.

Addressing beneficiaries and residents, Oluremi Tinubu urged the people of the South-East to support her husband’s administration, promising that the government would continue working to improve the lives of Nigerians.

«“Make una vote for Mr President, we go work for una and Nigeria go better. I want to enjoy Nigeria at old age, so I will work for Nigeria, for my old age,” she said.»

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The empowerment programme is being implemented through the Office of the Senior Special Assistant to the President on Sustainable Development Goals and is expected to reach 18,500 women across Nigeria.

Under the initiative, 500 women in each of the five South-East states are expected to receive business-support equipment, including generators, industrial grinding machines, gas cylinders and ovens.

In Imo State, Governor Hope Uzodimma expanded the programme by providing additional empowerment items for 2,000 women, bringing the total number of beneficiaries in the state to 2,500.

Following the governor’s intervention, the First Lady announced an additional ₦100,000 cash support for each beneficiary.

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She said the initiative was consistent with President Tinubu’s economic development agenda, particularly efforts aimed at empowering women and promoting sustainable livelihoods.

“Recognising the typical role women play in nation building, this is in line with the agenda of Mr President, Bola Ahmed Tinubu, which prioritises economic growth and sustainable development for all Nigerians, particularly women,” she said.

Oluremi Tinubu urged the beneficiaries to invest the equipment and financial support wisely, stressing that the intervention was intended to help women expand their businesses, improve household income and build more secure futures for their families.

“Let it serve as a foundation for creating a better life for you and your family,” she added.

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The appeal comes as political parties and major political figures begin positioning themselves ahead of the 2027 general elections, with the South-East expected to remain an important battleground in the presidential contest.

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