Lenders appoint receiver for major Nigerian power firms, notice shows
KEPCO owns 70% of Egbin Power, Nigeria's biggest electricity generator. The news comes as the sector faces a cash crisis estimated at 2-trillion naira (R23.20bn).
The receiver/manager Kunle Ogunba, a lawyer, was appointed by a trustee to KEPCO's lenders on June 19, the notice said.
The power companies denied the notice and said the matter was in court. The companies have asked a court to halt the appointment, according to court papers seen by Reuters.
Power firms in Nigeria have been struggling after the sector was privatised more than a decade ago. This raises concerns about the future of private investment, especially for upgrading the country's power grid and adding renewable energy.
Many of the companies were bought using loans after the 2013 privatisation. Now banks are focusing on recovering debts instead of lending more money.
The move has sparked fresh debate about the viability of Nigeria's electricity market, the role of government support, and whether private companies can succeed in the sector.
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TimesLIVE
2 days ago
- TimesLIVE
Lenders appoint receiver for major Nigerian power firms, notice shows
A Nigerian receiver has been appointed by lenders to KEPCO Energy Resources and its subsidiary, Egbin Power, two major players in the power sector, adding to worries about the industry's financial health, a notice in local media said. KEPCO owns 70% of Egbin Power, Nigeria's biggest electricity generator. The news comes as the sector faces a cash crisis estimated at 2-trillion naira (R23.20bn). The receiver/manager Kunle Ogunba, a lawyer, was appointed by a trustee to KEPCO's lenders on June 19, the notice said. The power companies denied the notice and said the matter was in court. The companies have asked a court to halt the appointment, according to court papers seen by Reuters. Power firms in Nigeria have been struggling after the sector was privatised more than a decade ago. This raises concerns about the future of private investment, especially for upgrading the country's power grid and adding renewable energy. Many of the companies were bought using loans after the 2013 privatisation. Now banks are focusing on recovering debts instead of lending more money. The move has sparked fresh debate about the viability of Nigeria's electricity market, the role of government support, and whether private companies can succeed in the sector.
IOL News
3 days ago
- IOL News
The JSE delivers a fifth consecutive positive monthly return in July
South African equity markets delivered a fifth consecutive positive monthly return. Image: Supplied South African equity markets delivered a fifth consecutive positive monthly return with the FTSE/JSE Capped SWIX Index up 2.2% month on month (m/m), leaving the local bourse 18.7% higher year to date (YTD). In a familiar theme for the year, it was the precious metal miners that were driving returns, with platinum miners up 10% m/m and gold miners up 4% m/m delivering more than half of the July index returns between them. Platinum group metals (PGMs), rhodium ( up 32% m/m), and palladium (up 8% m/m) led the PGM miners' share prices higher. Telcos, another JSE sector that has outperformed in 2025 up 64% YTD, were also amongst the local bourse's winners in July. Telkom, which rose16% m/m, reported strong 2025 results and a resumption of dividend payments after a four-year suspension, while MTN, which rose 9% m/m, was buoyed by the strong operational performance reported by its Nigerian unit. Investment conglomerates Naspers and Prosus, which rose 3% m/m and up 36% YTD in aggregate also lifted the JSE's performance in July. JSE-listed stocks with predominantly global earnings, Anheuser Busch InBev (ABI) and Richemont (-10% m/m), were two of the JSE's biggest losers in July. ABI reported second quarter 2025 earnings growth of 6.5% year on year (y/y) and reiterated medium-term expectations for 4%-8% per annum profit growth, but investors were spooked by volume declines in Brazil (-9% y/y) and China (-7.4% y/y), with the share price falling sharply to leave the counter down 12% m/m. Richemont delivered a solid 1Q26 trading update, with its key jewellery division growing by 7.1% y/y. Still, the share price struggled falling 10% m/m as sentiment towards luxury goods companies soured with poor results reported by peer LVMH and concerns around continued weakness in demand for luxury goods from Chinese consumers and the potential impact of tariffs. The SA Reserve Bank delivered an anticipated 0.25% cut to the central bank rate at its July meeting, lowering the country's prime lending rate to 10.5% per annum and bringing some much-needed relief to South Africfan borrowers. The rate cut helped lower the South African government's 10-year borrowing rate, which ended July at 9.7% per annum., falling 0.25% during July despite global 10-year borrowing rates ending the month generally higher. The local currency weakened 2.8% m/m against a strong US dollar, though the rand remains 3.4% stronger against the US dollar YTD. Video Player is loading. 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Next Stay Close ✕ Global equities Developed market equities had a solid start to the second half of the year with the MSCI World Index up 1.3% m/m, nudging global equity market returns into the double-digits YTD (+11.2%). Mega-cap tech stocks were leading from the front again with the Bloomberg Magnificent 7 Index up 5.8% m/m, with chipmaker, Nvidia up 12.6% m/m the star performer amongst that cohort, aided by US President Donald Trump's announcement that he would lift a ban on supplying AI chips to China and its Magnificent Seven peers saying that they would be accelerating their AI capex spend. Alphabet, Meta and Microsoft (8.7%, 4.8% and 7.3% m/m, respectively) all saw their share prices rally after delivering positive earnings surprises. 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The Citizen
4 days ago
- The Citizen
Shoprite walks away from Malawi after 25 years: What went wrong?
The Competition and Fair Trading Commission invites written comments on the Shoprite–Karson Investment Trust transaction. Shoprite, South Africa's largest grocery retailer, has announced it will be exiting the Malawi market as it will be selling all its stores in the country. The retailer entered the Malawi market in 2000, but it is now in talks with the Karson Investment Trust to sell all five of its operating stores in the country for an undisclosed amount. In 2022, Shoprite shut down rumours that it would be closing its Malawi operations when it sold one of its stores due to financial losses. Shoprite is not shy of exiting markets where it is not achieving sales, as this is not the first country where the retailer has closed its doors. It has pulled out of the Nigerian market, Uganda, Kenya, Madagascar, and the Democratic Republic of Congo. Even back at home, the retailer sold its furniture business, OK Furniture and House and Home brands to Pepkor, citing structural changes to the business. However, the retailer still operates the brands in Angola and Mozambique. Malawi market Shoprite confirmed the news in its trading statement for the 52 weeks ended 29 June 2025. 'Shoprite Malawi signed a sale of assets agreement on 6 June 2025 to dispose of the assets used in relation to its operations, which consists of five trading stores. 'The agreement is pending the fulfilment of conditions precedent to be met during October 2025, including approval from the Competition and Fair-Trading Commission as well as the Reserve Bank of Malawi,' read the statement. Should the Competition and Fair Trading Commission approve the sale, Karson Investment Trust will run the five stores as Shopwise Trading Limited, selling groceries and other merchandise at a retail price. ALSO READ: Shoprite Checkers to buy 'liquor' from Pick n Pay, Spar Shoprite leaves Ghana The retailer's trading statement states Shoprite has also accepted an offer to sell its operations in Ghana. 'The group received a binding offer during June 2025 to dispose of the assets and liabilities in relation to the operations in Ghana, which consists of seven trading stores and one warehouse. The sale is deemed highly probable, and the operations have therefore been classified as discontinued' Shoprite replied: 'The group is currently in a closed period and unfortunately unable to assist with your request' to The Citizen's enquiry about why the retailer is exiting the Malawi and Ghana businesses. Shoprite is South Africa's largest retailer by market capitalisation, sales, profit, employee count, and customer base. The Competition and Fair Trading Commission, in a notice, stated that it is welcoming written comments from interested stakeholders about the transaction between Shoprite and the Karson Investment Trust. The Competition and Fair Trading Commission is a statutory body established in Malawi to regulate, monitor, control, and prevent actions that negatively affect competition and fair trading. 'The submissions should include comments on the developments and growth of the retail trading of groceries and other merchandise and the holding and leasing of property industry, any expected benefits arising out of the proposed transaction, and the impact of the transaction on competition, consumer welfare and the economy as general.' Store closure in 2022 According to Malawi Journal news, the Malawian government came under fire in 2022 after rumours that Shoprite would be closing operations in the country. Malawi's minister of labour, Vera Kamtukule, told parliament that Shoprite management reassured her that it is not exiting the country, but only selling one of their stores as it has been registering losses for three years before the closure. The closure of the store led to 25 employees losing their jobs, and left Shoprite with five stores in the country. NOW READ: How Shoprite made R20 million profit per day
