Dangote Cement Lifts Dividends 50%; Oando And Transcorp Removed From The NGX 30 Index; Meta To Sell Excess AI Capacity; FTSE Russell Faces Backlash Over Delaying Nigeria’s Inclusion
- Dipo Owolabi
- Jul 3
- 4 min read
Nigerian investors are celebrating a record ₦753.8 billion dividend payout from Dangote Cement, while the Nigerian Exchange reshuffles its benchmark NGX-30 Index as Oando and Transcorp make way for NASCON and Unilever Nigeria. Elsewhere, Meta is reportedly looking to monetize its massive AI infrastructure by launching a cloud computing business, and Nigeria's securities dealers are defending the country's T+1 settlement reforms after FTSE Russell delayed its Frontier Market upgrade. All this and more in today’s Read It And Eat! |
Markets as of 2nd of July 2026.. Cells in RED mean that the value is down, cells in Green mean the value is up.
MAJOR HEADLINES
Dangote Cement Raises Dividends 50%; Delivering Over 7 Trillion Naira To Shareholders In 15 Years
Dangote Cement has approved a 50% increase in its annual dividend, with shareholders set to receive a record ₦753.8 billion payout following the company's latest Annual General Meeting, according to The Guardian. The cement giant declared a dividend of ₦45.00 per share, up from ₦30.00 previously, reflecting strong profitability and management's confidence in the company's long-term growth despite challenging macroeconomic conditions. Chairman Aliko Dangote attributed the performance to operational resilience, increased production efficiency, and sustained demand across the company's African markets.
The record distribution reinforces Dangote Cement's position as one of the Nigerian Exchange's largest dividend-paying companies; they have paid over 7 trillion naira in dividends back to their shareholders in the past 15 years and highlights its continued ability to generate strong cash flows. Management also reaffirmed its commitment to expanding production capacity, improving energy efficiency, and strengthening exports under the African Continental Free Trade Area (AfCFTA), while maintaining its leadership across key African cement markets.
The payout is expected to inject significant liquidity into Nigeria's capital market, with institutional and retail investors set to receive one of the largest shareholder distributions in the Exchange's history. Analysts say the higher dividend further strengthens Dangote Cement's appeal as a blue-chip income stock and could support renewed investor interest in dividend-paying equities as companies continue rewarding shareholders despite broader economic uncertainties. Guardian
Oando Plc and Transcorp Plc To Be Removed From The NGX 30 Index.
The Nigerian Exchange has announced changes to its NGX-30 Index, with Oando Plc and Transcorp Plc set to exit the benchmark index while NASCON Allied Industries and Unilever Nigeria are added, according to BusinessDay. The periodic review reflects changes in market capitalization and trading liquidity, ensuring the index continues to represent the Exchange's most actively traded and largest listed companies.
The NGX-30 Index serves as one of the Nigerian market's key benchmarks and is widely tracked by institutional investors and fund managers. While Transcorp delivered a year-to-date return of more than 21% before the latest rebalancing, both it and Oando came under heavy selling pressure during the June market correction, contributing to their removal from the benchmark. The broader NGX All-Share Index has still returned roughly 50% this year, underscoring the strength of the overall market despite recent volatility.
Analysts say the latest rebalancing reflects changing investor preferences and shifts in corporate performance across sectors. While inclusion in the index can boost investor attention and trading activity, companies removed from the benchmark often face reduced passive investment flows until future index reviews. BusinessDay
Meta is developing a commercial cloud computing business, internally known as Meta Compute, that would allow it to rent excess artificial intelligence computing capacity and hosted AI models to external customers, according to a Bloomberg report cited by TechRadar. The initiative is intended to help monetize the company's enormous AI infrastructure investments; which are expected to total $125 billion to $145 billion this year, by generating a new revenue stream beyond advertising, although Meta has not disclosed how much compute capacity it plans to lease or any financial target for the business.
The move reflects growing investor concerns that Meta may have overbuilt its AI infrastructure relative to its current internal needs. Chief Executive Mark Zuckerberg has previously acknowledged that if Meta reaches a point where it has more computing capacity than it can efficiently utilize, selling that excess capacity would be an option. By commercializing idle infrastructure, Meta could improve returns on one of the largest AI capital expenditure programmes in corporate history while competing with Amazon Web Services, Microsoft Azure, Google Cloud, and AI-focused cloud providers.
Analysts note that the pool of customers capable of consuming, and paying for AI compute at Meta's scale remains relatively small. Many large technology companies are already building their own infrastructure, leaving OpenAI and Anthropic among the few frontier AI developers with demand substantial enough to justify leasing hyperscale compute instead of constructing equivalent capacity themselves. Whether Meta can attract enough customers to meaningfully monetize its excess infrastructure will ultimately determine the success of the strategy. Reuters |
FTSE Russell Faces Backlash As Securities Dealers Defend Nigeria's T+1 Settlement Reform
Nigeria's securities dealers have pushed back against FTSE Russell's decision to delay the country's Frontier Market upgrade, arguing that the Nigerian Exchange's transition to a T+1 settlement cycle aligns with global best practices and should not be viewed as a setback, according to Nairametrics.
FTSE Russell delayed Nigeria's Frontier Market upgrade as it continues to assess the implementation of the new T+1 settlement framework and whether the market consistently meets its operational standards. Securities dealers, however, argue that the transition reflects Nigeria's commitment to modernizing its capital market infrastructure and aligning with settlement standards already adopted by several advanced markets.
Analysts say the debate underscores the importance of global index classifications in attracting foreign portfolio investment. While the delayed upgrade may temporarily slow passive capital inflows, market participants believe successful implementation of the T+1 framework will ultimately strengthen investor confidence and enhance the competitiveness of Nigeria's capital market over the long term. Nairametrics
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