The Nigerian equities market extended its rally for a second consecutive week, with the NGX All-Share Index climbing 2.36% to 246,992.44 points. Market capitalization gained approximately N3.72 trillion as investor sentiment improved following FTSE Russell’s recent reclassification of Nigeria to Frontier Market status. Trading volume and value increased significantly, with the Financial Services sector leading activity. Major gains were recorded in Oil & Gas and Consumer Goods, while the Industrial Goods sector saw a slight decline. Simultaneously, the Nigerian Economic Summit Group reported that the business environment saw its strongest expansion in August since February 2026, with the composite Current Business Performance Index rising to 112.7 points.

Nigeria’s leading listed manufacturers recorded improved cost efficiency in H1 2026, as inflationary pressures softened and exchange rate volatility stabilized. An analysis of 12 major firms in the consumer goods, food, beverage, and cement sectors revealed that their aggregate input-cost ratio fell to 47.07 percent, down from 53.62 percent in H1 2025. Dangote Sugar, BUA Foods, and cement giants Dangote Cement and BUA Cement led these gains, successfully converting more revenue into gross profit. While this trend signals a broader margin recovery, manufacturers continue to face high energy, logistics, and borrowing costs. Furthermore, smaller players like Unilever Nigeria and Champion Breweries faced deterioration in their cost ratios, highlighting the competitive advantage of scale in the current economic environment. Aggregate profit after tax for the surveyed group rose to N1.74 trillion from N1.29 trillion in the previous year.

Major Nigerian manufacturers are increasingly bypassing commercial bank loans for capital market instruments like commercial papers and bonds to reduce financing costs. An analysis of 12 top-listed companies revealed that combined loans and borrowings dropped by 48.7 percent to 2.03 trillion naira in the first half of 2026. This shift comes as manufacturers face high lending rates and systemic credit aversion from banks, forcing a reliance on alternative fixed-income funding to manage working capital and liquidity.

Champion Breweries Plc reported a 34.1% decline in profit before tax to N2.28 billion for the first half of 2026, despite a 124% surge in revenue to N35.73 billion. The bottom line was significantly pressured by soaring finance costs, which jumped to N3.90 billion from N403.7 million in the same period last year. While the brewer saw operational improvements, with operating profit climbing to N6.17 billion, the increased interest burden and rising production costs dampened overall profitability. Notably, the company strengthened its balance sheet, with total equity rising to N69.08 billion following share capital adjustments.