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Meristem Tips Oil, Banking Stocks to Gain From Rising Crude Prices

Meristem Securities projects Nigerian oil and banking stocks to benefit from global crude surge, citing gains for Seplat, Aradel and commercial banks.

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Meristem Securities projects Nigerian oil and banking stocks to benefit from global crude surge, citing gains for Seplat, Aradel and commercial banks

*Nigerian oil and banking stocks are expected to emerge as top gainers from the ongoing global surge in crude oil prices, according to Meristem Securities Limited.

Also read: NNPC uncovers sabotage plot against leadership, vows reforms will continue

In its latest macroeconomic and capital market report, the investment firm noted that escalating geopolitical tensions in the Middle East have pushed oil prices higher, presenting short to medium-term opportunities for Nigerian upstream oil producers and commercial banks.

Meristem identified firms such as Seplat Energy Plc, Geregu Power Plc, and Aradel Holdings Plc as potential beneficiaries, with expectations of stronger earnings due to their exposure to higher crude prices and increased production incentives.

“Given the sustained rally in global crude oil prices, upstream oil companies are well positioned to deliver improved earnings,” the report stated.

It also highlighted that Nigerian banks could profit from the high interest rate environment, which boosts net interest margins and drives earnings. This trend is likely to maintain investor confidence in the banking sector despite inflationary challenges faced by real sector firms.

“Elevated inflation and interest rates are expected to weigh on real sector performance by pressuring margins and limiting access to credit,” Meristem noted.

“Conversely, banks are likely to benefit through improved net interest income, sustaining their positive earnings trajectory and attracting continued market attention.”

In addition to capital market impacts, the firm said that Nigeria’s foreign exchange earnings and government revenue could benefit from the crude price rally. A rise in dollar inflows from oil exports may help stabilise the naira and improve fiscal buffers.

“Crude oil remains the dominant source of Nigeria’s foreign exchange earnings,” the report observed. “A sustained rise in global oil prices could translate into higher FX inflows for the country, boosting liquidity in the official FX market and enhancing exchange rate stability.”

However, the report warned that Nigeria’s gains may be limited if crude oil production continues to fall below budget expectations. It also flagged inflationary risks, especially under the country’s deregulated fuel pricing system.

“A sharp rise in international crude prices would directly reflect in domestic PMS prices. This increase would feed into the transportation segment of the CPI and could spill over into food inflation,” the firm explained.

Meristem added that fixed income investors may also benefit from attractive yields, driven by persistent global rate hikes and local inflation concerns, particularly as US monetary tightening continues to influence sentiment.

Also read: NUPRC dismisses oil block licensing irregularity claims, assures transparency

Despite the mixed outlook, the firm concluded that investor interest will likely favour oil and banking equities, while sectors exposed to rising production costs and tighter credit conditions may struggle to maintain momentum.

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Jubril Adewale Tinubu: The Global Ascent of An Energy Titan

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Wale TinubuUnarguably, Jubril Adewale Tinubu, Group Chief Executive Officer, GCEO, Oando Plc, is one of the few who command a great deal of reverence in Nigeria’s vast and ever-evolving energy landscape.

To keen watchers of developments in the nation’s energy sector, Tinubu’s pedigree transcends more than being the  head honcho of Oando; he is the rare alchemy of audacity and foresight.

Today, his name has become synonymous with resilience and brilliance; he is also a figure whose influence transcends sectors, borders, and generations.

Interestingly, his reputation built on entrepreneurial flair and ingenuity has always earned him  worthy mention among an elite class of business leaders whose legacies are not just written, but engraved.

However, unlike some others who view Africa’s economic horizon through a haze of uncertainty, Tinubu sees opportunity beckoning to him always.

With this perspective, one easily understands Oando’s rise from a modest downstream operator to one of Africa’s most formidable integrated energy companies.

Oando, under the exemplary leadership and management style of Tinubu, has expanded across exploration, production, power, and renewables.

At every given opportunity, Tinubu hammers on the need for Africa to harness its own vast resources to define its destiny.

Given his trademark philosophy to act, tarry or strike with precision, he has been able to navigate Oando through global market shifts, regulatory waves, and economic downturns without so much noise.

Perhaps,this is the secret to his dazzling recognition and honour since the break of the outgoing year 2025. In January, he bagged the Investor / Transaction of the Year 2024 at the New Telegraph Awards in  Lagos.

The recognition followed Oando’s landmark $783 million acquisition of Agip Oil Company, a transaction completed in August 2024 and hailed as one of the year’s most significant moves in Nigeria’s economy.

But that was only a precursor to several other accolades for Tinubu, as he was again honoured with the prestigious Lifetime Awards at the Africa Energy Week, AEW, 2025.

Like the compass with which Oando navigates the nation’s unpredictable energy terrain, Tinubu is perpetually in quest of the opportunity to position the company as both a continental powerhouse and a symbol of African ingenuity.

Again, evidence that Tinubu’s influence has become global came to the fore when Oando emerged as the preferred bidder for the Trinidad refinery.

Despite a dip in revenue, Oando posted a $145 million profit in the first nine months of its 2025 fiscal year—a testament to disciplined strategy and Tinubu’s steady hand at the helm.

Meanwhile, the most significant signal of Oando’s next chapter came recently with an announcement that underscores Tinubu’s instinct for the future: Oando is diversifying into mining, with a sharp focus on lithium and other minerals critical to the clean-energy transition.

The company has already assembled a strong team of seasoned geologists and launched exploration activities across Nigeria, including a major program in Kebbi State. By the end of 2025, Oando aims to complete its field evaluations and identify a prime location for pilot lithium production.

With the global demand for rechargeable batteries—driven by tech and electric vehicles—skyrocketing, Tinubu is positioning Oando at the heart of the next energy revolution.

It is not for fun that his admirers fondly describe him as the man who sees tomorrow. He is a strategist sculpted by foresight, a leader driven by conviction, and a relentless believer in Africa’s potential.

In an age craving visionaries, Tinubu stands out- he is clear -eyed, bold, and prepared for the future he already sees taking shape.

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Energia launches graduate trainee programme to develop young professionals

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 Energia Limited launches a graduate trainee programme to accelerate career growth of young Nigerian professionals in the energy sector.

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Nigeria launches $10bn petroleum licensing round to boost production

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Nigeria launches 2025 petroleum licensing round to attract $10bn investment and unlock up to two billion barrels of oil.

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