Economy
Nigeria Losing $700m Monthly to Oil Theft—NNPC
By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited has said that Nigeria is currently losing 470,000 barrels per day of crude oil amounting to $700 million monthly due to oil theft.
A statement by the NNPC said that Mr Bala Wunti, the Group General Manager, National Petroleum Investment Management Services (NAPMS), made this disclosure while speaking during a tour of the facilities of the NNPCL.
Mr Wunti said the pipelines particularly those around Bonny terminal cannot function due to the activities of criminals.
He also argued that the number of barrels stolen daily is very huge, adding that about 270 barrels per day that were supposed to be loaded in Bonny are no longer going to be loaded because of theft.
“If you’re producing 30,000 barrels a day, every month, you get 1,940 barrels. So what it means is that you can take it to 270 every four days, calculate it in a month; you will have seven cargos on a million barrels, that’s seven million barrels,” he said.
“When you multiply seven million barrels by $100 that is $700 million lost per month and about 150,000 barrels expected are differed; we are not producing due to security challenges,” he added.
The official noted that “the Shell Petroleum Company (SPDC) trunk line, TNP transnational pipeline cannot be operated and this has been like this since March the 3rd that we put in this. Just take your calculator, 150,000, it means if you want to arrive at 1 million barrels per day, it means every week as a minimum, basically for one week alone, it’s four cargo and four cargo is four million barrels. Four million barrels formula bar or $100 is $400 million.
“So, you can do your calculations by yourself, take whatever price you want, take this to multiply by the number of days that have been shortened since March 3rd.”
The NNPC official said Forcados is not completely secure due to some challenges, but assured that they were addressing it, and in two weeks it may be fixed.
“But we also have Brass about 100,000 barrels, which is operated by Agip and is also facing insecurity and vandalism,” he said.
He said the impact of vandal activities caused low crude oil production, interrupted gas supply, countrywide interruption of distribution of petroleum products, refineries’ downtimes, and increasing instability in the oil and gas market.
“I will tell you the major thing that affects us. Nigeria will suffer for it; the revenues are impacted, so we can only appeal to them to rein in themselves, the oil theft situation is regrettable. It’s not going on across the whole of the Niger Delta, there are trunk lines that are more impacted on, I think the Bonny trunk line ranks highest.
“Our major challenge as a country is our capability to respond and that is as a result of several factors, the terrain as well as some incapacity that we have.”
Continuous oil theft and infrastructural deficit have seen Nigeria lose its status as Africa’s top oil producer, sitting behind Angola.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.17 per cent on Friday, March 28, spurred by a boost in the price of Nipco Plc and Geo-Fluids Plc.
Yesterday, the market capitalisation added N3.27 billion to close for the session at N1.915 trillion compared with the previous day’s N1.912 trillion, and the NASD Unlisted Security Index (NSI) increased by 5.66 points to 3,316.17 points from Thursday’s 3,310.51 points.
Nipco Plc gained N19.50 to finish at N220.00 per share compared with the previous day’s N200.50 per share, and Geo-Fluids Plc grew by 20 Kobo to sell at N2.70 per unit, in contrast to the previous session’s N2.50 per unit, while UBN Property Plc lost 20 Kobo to close the day at N1.98 per share versus the N2.20 per share it was sold a day earlier.
Trading data showed an increase of 76.8 per cent in the volume of securities transacted to 1.3 million units from the 712,439 units traded in the previous trading day, the value of transactions slid by 71.2 per cent to N8.8 million from the N30.5 million recorded in the preceding day, and the number of deals went down by 76.1 per cent to 11 deals from the 46 deals recorded a day earlier.
When the bourse ended for the session, Impresit Bakolori Plc remained the most active stock by volume on a year-to-date basis with a turnover of 533.9 million units valued at N520.9 million, followed by Industrial and General Insurance (IGI) Plc with the sale of 70.0 million units worth N23.8 million, and Geo Fluids Plc with 44.1 million units sold for N89.0 million.
The most traded stock by value on a year-to-date basis was FrieslandCampina Wamco Nigeria Plc with the sale of 13.7 million units valued at N528.6 million, trailed by Impresit Bakolori Plc with a turnover of 533.9 million units worth N520.9 million, and Afriland Properties Plc with 17.8 million units sold for N364.2 million.
By Adedapo Adesanya
Oil prices fell on Friday due to worries that the US tariff war could spark a global recession, as America put pressure on the Organisation of the Petroleum Exporting Countries (OPEC) as well as Venezuela and Iran.
During the session, Brent crude futures went down by 40 cents or 0.5 per cent to $73.63 a barrel and the US West Texas Intermediate crude futures (WTI) dropped 56 cents or 0.8 per cent to close at $69.36 a barrel.
The US President, Mr Donald Trump, plans to announce reciprocal tariffs targeting a wide range of imports, effective April 2.
For instance, JPMorgan analysts said in a note to its clientele that the trade war has investors worried about a potential recession.
“Concerns about a trade war, coupled with elevated U.S. policy uncertainty, are weighing heavily on sentiment,” the bank said.
It added that although the risk of recession was elevated, high-frequency oil demand indicators have held up relatively well for now.
Regardless, the possibility sent jitters to traders.
Meanwhile, traders continued to look at escalating US sanctions on Venezuela and Iran.
The Trump administration’s decision to impose a 25 per cent tariff on countries importing Venezuelan crude sent ripples through the physical market.
India’s Reliance Industries, the operator of the world’s largest refining complex, halted Venezuelan imports in response, reinforcing fears of a looming supply squeeze.
Also, the US renewed enforcement of Iranian oil sanctions—targeting refiners and shipping linked to China—further tightened available barrels.
The US has issued four rounds of sanctions targeting Iran’s oil sales since Mr Trump’s return to the White House.
The combined impact from both measures threatens to cut off hundreds of thousands of barrels per day from the global market, with Chevron’s potential 200,000 barrels per day production loss in Venezuela adding to the pressure.
The Trump administration extended the deadline to May 27 for US producer Chevron to wind down operations in Venezuela.
In addition, the Organisation of the Petroleum Exporting Countries and allies (OPEC+) will likely stick to its plan to raise oil output for a second consecutive month in May.
By Adedapo Adesanya
The federal government is looking to remedy discrepancies in fiscal data across government institutions, which have affected Nigeria’s credit ratings and borrowing capacity.
This came as the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has spearheaded a high-level Fiscal Data Harmonisation Meeting (FDHM).
The meeting was part of a bold move to revolutionize Nigeria’s economic landscape, marking a significant milestone in the country’s quest for economic stability and transparency.
The meeting which was held in his office in Abuja, brought together key stakeholders, including the Honourable Minister of State for Finance, Mrs Doris Uzoka-Anite; the Accountant General of the Federation, Mr Shamsedeen Babatunde Ogunjimi; and the Director General of the Budget Office, Mr Tanimu Yakubu.
Mr Edun emphasised the need for synergy between agencies such as the Budget Office, the Accountant General’s Office, and the Debt Management Office (DMO).
“Delivering accurate and comprehensive fiscal data is critical to economic stability and investor confidence,” he stated.
According to a statement, attendees agreed on the establishment of a Fiscal Data Coordination Framework, which includes a main committee, a subcommittee, and technical teams dedicated to standardising fiscal reporting methodologies and economic assumptions.
Mr Edun reaffirmed that Nigeria must take ownership of its fiscal data credibility, reducing dependence on external institutions.
The meeting concluded with a firm commitment to implementing the framework, reinforcing transparency, strengthening investor confidence, and enhancing Nigeria’s economic outlook.
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