The Nigerian equities market closed lower on Monday, July 27, as the All-Share Index declined by 0.05% to 247,238.74 points. This shift erased approximately N76.56 billion in market capitalisation, bringing it to N159.51 trillion. The downturn was primarily driven by profit-taking across insurance, consumer goods, and industrial sectors, while banking stocks bucked the trend to close as the day’s sole sectoral gainer. Despite the decline, market activity intensified, with a 73.6% surge in total value traded to N57.20 billion. Aradel Holdings led value contributions, accounting for 48.2% of the total turnover. Market breadth was negative, with 32 stocks declining against 28 advancers.

Transcorp Power has announced an interim dividend of N1.50 per share, totaling N11.2 billion, despite a 12.6 percent decline in its H1 2026 net profit to N38.50 billion. The company cited recurring transmission line vandalism as a major constraint on its operational capacity, which contributed to a decrease in revenue to N181.97 billion from N205.81 billion in the previous year.

Financial data reveals a strained cash position, with net cash from operating activities shifting from a surplus of N49.38 billion in the prior period to a deficit of N4.22 billion. The company significantly increased its debt profile, drawing N63.63 billion in new borrowings during the half to fund dividend payments and cover operational shortfalls. Shares of Transcorp Power have depreciated by over 20 percent year-to-date, currently trading at N245.50.

Transcorp Power Plc (NGX: TRANSPOWER) has reported its unaudited financial results for the six months ended June 30, 2026, navigating significant operational hurdles caused by recurring transmission infrastructure vandalism.

The company posted a revenue of ₦181.97 billion, down from ₦205.81 billion in H1 2025, with Profit Before Tax reaching ₦54.99 billion compared to ₦58.73 billion in the previous year. Despite these declines, Transcorp Power demonstrated balance sheet strength, with total assets growing by 9.9% to ₦619.02 billion and shareholders’ funds rising to ₦189.34 billion.

Management highlighted improved efficiency, noting an expansion in gross margin to 38.4% from 34.7% in H1 2025, driven by cost optimization and disciplined financial management. The leadership remains optimistic about recovering lost ground in the second half of the year.

Transcorp Power Plc reported a 6.37% decline in pre-tax profit to N54.99 billion for the first half of 2026, compared to N58.73 billion in the same period last year. Revenue faced pressure across core streams, largely due to transmission line vandalism impacting generation capacity. Despite the earnings dip, the company declared an interim dividend of N1.50 per share, payable on July 23, 2026. While profit after tax dropped to N38.50 billion, management cited successful cost optimization and improved efficiency margins as key factors in maintaining operational stability amidst market challenges.

Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has stated that the regulator will maintain heightened supervision of the banking sector despite the successful conclusion of the recent recapitalisation exercise.

Speaking at the BusinessDay 14th Annual CEO Forum, Cardoso noted that while the industry raised between N4 trillion and N5 trillion in fresh capital to build resilience against economic shocks, continuous oversight remains essential. He emphasized that the stronger capital base is intended to support eventual increased lending to the private sector once inflation and interest rates moderate. Cardoso also warned banks against indiscriminate lending, urging them to prioritize sophisticated risk management and proper analysis, especially when navigating complex sectors like oil and gas. The CBN plans to collaborate with financial institutions to enhance their internal risk assessment capabilities.