Economy
Stakeholders Bullish on Nigeria’s Energy Investment Prospects
By Adedapo Adesanya
The 2023 edition of the African Energy Week (AEW) conference and exhibition concluded in Cape Town, South Africa, on Thursday and for Nigeria, the conference provided a platform for top industry executives to promote energy investment prospects in Africa’s largest economy.
During the Invest in Nigeria Energies spotlight, moderated by Mr Mansur Mohammed, Head of West Africa Upstream Content, sub-Saharan Africa Oil and Gas, Wood Mackenzie, stakeholders from top companies examined the need to develop, exploit, and monetise Nigeria’s 37 billion barrels of crude and 200 trillion cubic feet of natural gas resources to ensure energy security and socioeconomic development.
Commenting on why Nigeria is an appealing energy investment destination, Mr Anim Osadebe John, Managing Director of Platform Petroleum Limited, said, “Nigeria has a lot of proven natural resources which remain untapped despite the country exploiting these resources for the past six decades. We have a growing population which makes the country a huge market to invest in.”
He added that Nigeria’s access to free markets such as Ghana, the Ivory Coast, and other international markets guarantees investors heavy profits.
Speaking on best practices to maximize existing opportunities while creating new ones, Mr Anthony Ellis, Commercial Director, Century Group said there is a need to develop new infrastructure and modernize existing assets.
Mr Ellis highlighted the importance of collaboration across the entire value chain. He said, “Capacity building needs to be prioritized by both the government and investors coming into the country.”
On her part, Mrs Ama Ikuru, General Manager, Capacity Building Division, Nigerian Content Development and Monitoring Board (NCDMB) noted that by boosting focus on local content development, Nigeria is unlocking avenues for best energy products and services and for new investments to flock in.
For Mr Bayo Adebiyi, Managing Director at Levene Energy Group, for Nigeria to attract new investments, players need to invest in the development of the country’s entire resources including oil, gas, and solar energy mix diversification.
“That is why we are investing in gas, energy decarbonization and across the midstream sector to ensure energy is delivered to consumers and that investors secure return on capital,” he said.
The panel also explored the impact of policies such as the Petroleum Industry Act (PIA) 2021 in creating investment opportunities.
Mr Adebiyi stated that the policy needs to be leveraged to create separate regulators for the downstream and midstream sector when speaking on additional changes that the Nigerian government need to apply to the PIA to enhance the law’s effectiveness in driving energy investments.
Mr Ope Osinubi, Senior Associate at Clifford Chance, said the PIA is a step in the right direction, adding that the policy has “given clarity to aspiring investors and guaranteeing stability for existing players. Great start, but more needs to be done.”
Mr Richard Kennedy, Chairman and Managing Director, Chevron Nigeria Limited, noted that Nigeria has a lot of potential with deepwater resources yet to be exploited.
“For oil and gas investments to grow and Nigeria to achieve market growth aspirations, deepwater discoveries will play a crucial role. There are a lot of discoveries, we just need the fiscal terms to be improved to unlock the potential,” he said.
By Adedapo Adesanya
The Minister of Finance, Mr Wale Edun, says Nigeria’s crude oil production has risen to 1.8 million barrels a day, contrasting with available production data.
Speaking in an interview with Reuters on Wednesday on the sidelines of the International Monetary Fund and World Bank Group spring meetings in Washington D.C., the Minister said the current oil output would generate fiscal breathing space that will allow the government to support vulnerable households as it ploughs ahead with reforms.
Nigeria, which is a member of the Organisation of the Petroleum Exporting Countries (OPEC), is Africa’s largest oil producer.
Mr Edun said rising crude production was positive for Nigeria’s revenue, foreign exchange and the country’s fiscal situation.
“It gives us that extra fiscal space within which to look at … helping the vulnerable households at this time,” he told the publication, noting that support would be targeted, adding “there is no thought of any return or retardation to broad untargeted subsidies.”
Mr Edun also said the Bola Tinubu-led administration was also committed to continuing its reform programme.
“Nigeria is in a position where the resilience that has been built in the economy is actually very obvious for all to see,” he said.
Despite the 1.8 million barrels per day figure claim, Business Post reports that production data for March 2026 from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that Nigeria attained 1.546 million barrels per day, made up of 1.382 million barrels per day of crude, 42,809 barrels per day of blended condensate and 120,442 barrels per day of unblended condensate.
The average crude production represents 92 per cent of the OPEC quota, which is fixed at 1.5 million barrels per day.
By Adedapo Adesanya
The Securities and Exchange Commission Nigeria (SEC) has unveiled a new regulatory framework that would allow companies operating within free trade zones to raise capital from the Nigerian public, subject to strict eligibility and disclosure requirements.
The proposal, titled New Rules for Public Offering of Securities by a Free Trade Zone Entity, is anchored on provisions of the Investments and Securities Act (ISA) 2025 and is designed to integrate free trade zone enterprises into the domestic capital market while strengthening investor protection.
Under the proposed rules, only entities duly licensed by recognised free zone authorities, such as the Nigeria Export Processing Zones Authority and the Oil and Gas Free Zones Authority, will be eligible to issue shares to the public.
The commission clarified that the rules will apply strictly to free trade zone entities (FTZEs), excluding companies operating outside designated zones, even if licensed by zone authorities. It also emphasised that no FTZE will be permitted to offer securities to the public without prior approval from the Commission.
To qualify, an FTZE must demonstrate a minimum of three years’ operating track record immediately preceding its application, with at least two years of independent business activity within a free trade zone. Additionally, such entities are required to have competent senior management and a minimum paid-up share capital of not less than N7.5 billion.
The SEC said FTZEs seeking to access the capital market must subject themselves to Nigeria’s tax laws and comply fully with ongoing disclosure and reporting obligations applicable to publicly listed companies.
The proposed framework also outlines extensive registration requirements. Issuers will be required to submit evidence of licensing by a free zone authority, constitutional documents, and verified details of shareholding structure and board composition.
A “No Objection” letter from the relevant free zone authority will also be mandatory, alongside a commitment to list the offered shares on a registered securities exchange.
The SEC noted that the rules are intended to provide clarity on eligibility criteria and operational conditions for FTZEs seeking to conduct public offerings, thereby deepening the capital market and aligning free zone operations with national financial system standards.
By Aduragbemi Omiyale
Shareholders of Guinness Nigeria Plc will share about N4.38 billion as an interim dividend for the first quarter of 2026, the board has disclosed.
This cash reward amounts to N2.00 per share, as the company has shares outstanding of 2,190,382,819 on the floor of the Nigerian Exchange (NGX) Limited.
The brewer stated that the interim dividend would be paid to investors whose names appear on the register of members as of the close of business on April 20, 2026.
The dividend payout is being proposed following the sustained profitability reflected in the unaudited financial results of the company in the first three months of this year and its “strong performance in FY 2025.”
It would be “paid from distributable profits in accordance with Sections 426–428 of the Companies and Allied Matters Act (CAMA) 2020.”
Analysis of the performance of the brewery giant between January and March 2026 showed that revenue grew by 4 per cent on a year-on-year basis to N122.77 billion from N118.34 billion in the same period of last year, while the gross profit contracted to N43.48 billion from N44.52 billion due to prevailing cost pressures within the operating environment.
The company’s operating profit also shrank to N17.18 billion from N18.00 billion in the first quarter of 2025 due to elevated marketing & distribution costs and administrative expenses.
However, the reduction in net finance costs to N1.43 billion from N7.72 billion in Q1 of 2025 helped the organisation to grow its post-tax profit to N10.39 billion in the period under review versus the N7.03 billion recorded in the corresponding period of last year.
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