Economy

NPDC Remits over $608m in 2016

Published

9 years ago

12/01/2017

Modupe Gbadeyanka

By Modupe Gbadeyanka

The Nigerian Petroleum Development Company (NPDC), the upstream subsidiary company of the Nigerian National Petroleum Corporation (NNPC), has provided clarification on the reported non-remittance of some crude oil revenue to the Federation Account.

In a presentation to the Senate Ad hoc Committee on the recovery of unremitted revenue, Mr Yusuf Matashi, Managing Director of the firm faulted some of the figures quoted as revenue derived by the company from crude sales.

Providing clarification on the alleged non-remittance of crude proceeds from some divested oil wells (OMLs 61, 62 and 63), Matashi explained that the value of crude oil lifted by NPDC between May 20013 and August 2016 was $3.294 billion as against $3.487 as claimed by the Committee.

The NPDC MD drew the attention of the committee to the fact that on the basis of the Ministerial assignment of the assets to NPDC, cash call funding of the assets by government had ceased and NPDC is funding the cost of production and lifting of crude oil by itself.

He said, “According to our records total crude oil lifted from OMLs 60-63 by NPDC during the period May 2013 TO August 2016 is valued at $3.294 billion against the figure of $3.487 billion.”

On the allegation that NPDC has been lifting crude oil from divested oil well (OMLs 65, 111 and 119) to the tune of $1.847 billion out of which it paid $100 million only, the NPDC MD explained that the OMLs 65, 111 & 119 referred to by the Senate Committee are not part of the divested assets.

He argued that the figures given refer to the Good Valuable Consideration obligation payments in respect of the Shell Petroleum Development Company, SPDC divested asset (OMLs 4, 38 &41 and OMLs 26, 30, 34, 40 &42.

‘’The $1.847 billion referred to by the committee is the total Good and Valuable Consideration (G&VC) determined by DPR for the divested assets. The $100 million referred to as paid is part of the G&VC which has been paid by NPDC,’’ he said.

While recognizing the balance of $1.747 billion for the G&VC, the NPDC noted that the obligation to pay in the future has not been waived and that the balance as payable to the Federation is recognized in NPDC’s books.

On the report that a total of $344.3442 million worth of crude oil has been unremitted between January and August 2016 including non-payment of due royalties and taxes within the period, the NPDC faulted the claim.

“The committee is invited to note that the actual value of crude oil liftings from all assets divested to NPDC is a total of $584.1 million for the period January to August 2016. NPDC has paid a total of $608.4 million as royalty and PPT,” he said.

Mr Matashi, noted that a total of $608, 417, 937 was made by the NPDC as Royalty and Petroleum Profit Tax in 2016.

Also Providing response to the issues raised by the Senate committee on the legal and operational status of the NPDC, Mr Matashi explained that like all other indigenous oil and gas companies operating in Nigeria, the NPDC is self-funded which means that gross revenue are not remitted to the Federation Account .

He said that the company is however required to pay Royalties to the Department of Petroleum Resources, DPR and Petroleum Profit Tax, PPT to the Federal Inland Revenue Service, FIRS.

Mr Matashi however stated that the NPDC is ready to engage all stakeholders to resolve all outstanding payments noting that the Company is already in talks with statutory agencies to arrive at agreed installed payments of historical liabilities.

The co-chairman of the Senate Ad hoc Committee, Mr Kabiru Marafa expressed the readiness of the Senate to work with the Corporation and other stakeholders to ensure proper accountability and probity in the handling of crude oil proceeds.

Economy

Four Securities Erase N51.17bn from NASD Exchange

Published

1 day ago

27/06/2026

Adedapo Adesanya

By Adedapo Adesanya

Four securities weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.95 per cent on Friday, erasing N41.17 billion from the bourse, which had its market capitalisation at N2.567 trillion compared with the previous session’s N2.618 trillion.

In the same vein, the NASD Unlisted Security Index (NSI) decreased at the close of business by 85.28 points to 4,277.07 points from 4,362.32 points.

The price decliners were led by 11 Plc, which gave up N20.50 to sell at N200.50 per share compared with the preceding day’s N221.00 per share, FrieslandCampina Wamco Nigeria Plc dropped N16.94 to close at N155.20 per unit versus Thursday’s closing price of N172.14 per unit, Central Securities Clearing System (CSCS) Plc went down by N2.11 to N84.68 per share from N86.79 per share, and Afriland Properties Plc lost 11 Kobo to end at N16.74 per unit, in contrast to the N16.85 per unit it closed a day earlier.

During the trading day, the value of transactions jumped by 172.1 per cent to N29.9 million from the preceding session’s N10.9 million, and the volume of trades soared by 136.5 per cent to 955,096 units from the previous 403,901 units, while the number of deals went down by 11.4 per cent to 31 deals from 35 deals.

Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 68.6 million units sold for N4.7 billion.

GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.

Economy

Cautious Trading, Profit-taking Weaken Nigeria’s Stock Exchange by 0.66%

Published

1 day ago

27/06/2026

Dipo Olowookere

By Dipo Olowookere

The last trading session of this week on the floor of the Nigerian Exchange (NGX) Limited ended on a negative note, with a 0.66 per cent loss on Friday.

This was influenced by sustained selling pressure and cautious trading, which forced investors into profit-taking.

Data obtained by Business Post showed that the energy sector fell by 4.66 per cent, the insurance counter dipped by 2.23 per cent, the consumer goods index depreciated by 0.96 per cent, and the banking segment shed 0.28 per cent, while the industrial goods space remained unchanged.

At the close of business, the All-Share Index (ASI) of Nigeria’s stock exchange went down by 1,531.81 points to 232,049.02 points from 233,580.83 points, and the market capitalisation dropped N983 billion to settle at N148.905 trillion compared with Thursday’s N149.888 trillion.

Aradel was the worst-performing equity after it lost 10.00 per cent to close at N1,417.50. International Energy Insurance slipped by 9.95 per cent to N5.79, Trans-Nationwide Express depreciated by 9.89 per cent to N3.28, eTranzact crashed by 9.79 per cent to N14.75, and UPDC slumped by 9.72 per cent to N28.12.

The best-performing equity for the day was Universal Insurance, which gained 6.32 per cent to close at N1.01, McNichols grew by 5.52 per cent to N8.60, Linkage Assurance expanded by 4.67 per cent to N1.57, NGX Group appreciated by 4.35 per cent to N120.00, and Transcorp increased by 3.62 per cent to N41.50.

As look at the activity level indicated that investors traded 388.7 million stocks worth N18.4 billion in 44,631 deals compared with the 393.7 million stocks valued at N19.2 billion executed in 45,813 deals a day earlier, representing a decline in the trading volume, value, and number of deals by 1.27 per cent, 4.17 per cent, and 2.58 per cent, respectively.

Economy

Official FX Market Sees Naira Dip to N1,380.93/$1

Published

1 day ago

27/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira recorded a loss of 82 Kobo or 0.06 per cent against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 26, exchanging at N1,380.93/$1, in contrast to the previous day’s rate of N1,380.11/$1.

Equally, the domestic currency further weakened against the Pound Sterling in the official FX market yesterday by N6.06 to settle at N1,824.90/£1 versus the preceding session’s N1,818.84/£1, and lost N10.74 on the Euro to sell at N1,577 .58/€1 versus N1,566.84/€1.

At the GTBank forex counter, the Naira depreciated against the greenback during the session by N4 to close at N1,387/$1, in contrast to Thursday’s value of N1,383/$1, and at the parallel market, it was unchanged at N1,395/$1.

Interbank FX activity among financial institutions has fluctuated amid a sharp slowdown in forex market interventions by the Central Bank of Nigeria (CBN), as it allows demand and supply to move the market.

Also, a stronger greenback has generally put significant pressure on emerging-market currencies.

Nigeria has accessed the first tranche of a proposed $5 billion derivatives financing arrangement with First Abu Dhabi Bank PJSC, the largest lender in the United Arab Emirates (UAE).

The $5 billion facility, approved by the National Assembly earlier this year, is part of the federal government’s plan to diversify external financing sources and reduce borrowing costs. Structured as a Total Return Swap with First Abu Dhabi Bank, proceeds are earmarked for refinancing debt and supporting infrastructure financing.

If the proceeds are brought into the country through the official FX market, the transaction will increase the currency reserves or Dollar liquidity.

At the cryptocurrency market, Solana (SOL) grew by 2.2 per cent to $71.92, Cardano (ADA) gained 1.1 per cent to trade at $0.1474, Ripple (XRP) also appreciated by 1.1 per cent to $1.05, Dogecoin (DOGE) expanded by 0.9 per cent to $0.0755, and Ethereum (ETH) improved by 0.4 per cent to $1,578.84.

On the flip side, TRON (TRX) slid 0.6 per cent to $0.3203, Binance Coin (BNB) slumped by 0.3 per cent to $564.33, and Bitcoin fell by 0.2 per cent to $60,219.37, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.