Economy
Renaissance Shuts Down Okordia–Rumuekpe Pipeline After Oil Leak
By Aduragbemi Omiyale and Adedapo Adesanya
Crude oil feed into the Okordia–Rumuekpe pipeline in Rivers State has been suspended by Renaissance Africa Energy Company Limited.
This action was taken by the energy firm after a leak in the 14-inch pipeline in Ikata under the Ahoada East Local Government Area of Rivers State.
Before now, the oil facility was operated by Shell Petroleum Development Company (SPDC), but Renaissance recently acquired all the oil assets of Shell in a deal finally approved by the federal government.
Business Post reports that Renaissance took over onshore oil and gas assets of Shell in Nigeria for about $2.4 billion.
The recent oil leak was the first major incident the facility was experiencing since the transaction was concluded a few months ago.
Confirming the shutdown in a statement on Tuesday, a spokesperson for Renaissance Africa Energy, Mr Michael Akande, explained that the action was taken to protect the environment.
“We have taken immediate steps to isolate and discontinue production into the pipeline to minimise any potential environmental impact,” Mr Adande stated.
He noted that the relevant regulatory authorities have been informed of the oil leak, assuring that the company will cooperate with the regulators to determine the cause and extent of the spill.
“Government regulators have been informed, and we are actively coordinating the statutory joint investigation visit, which will include their representatives and those from the local community,” he added.
As anticipation builds for the outcome of the JIV, environmental advocates and local leaders have called for transparency and immediate remediation.
Nigeria’s oil production have been affected over the years by a series of challenges. While efforts to curb them have yielded some results, the country is still far from hitting its 2.06 million barrels per day target to fund its 2025 budget.
Nigeria’s oil production peaked at 2.5 million barrels decades ago and despite ambitious 3-4 million barrels promises by subsequent governments, the highest actualisation in recent times have been 1.8 million barrels per day.
By Adedapo Adesanya
A former Commissioner for Insurance of the National Insurance Commission (NAICOM), Mr Mohamed Kari, has warned the federal government to reduce its intervention in the sector’s post-recapitalisation process.
He charged the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, to ignore calls for regulatory concessions in the just-concluded insurance industry recapitalisation exercise in the country.
The call, he said, was critical, especially when the companies clamouring for such concessions were chronic defaulters whose failure or strict regulatory discipline poses absolutely zero systemic risk to the Nigerian financial system or the broader economy.
Recall that NAICOM had requested insurance companies, as part of the recapitalisation process, to transfer their entire recapitalisation funds into an escrow account with the Central Bank of Nigeria (CBN). However, NICON Insurance and Nigeria Re, in a recent petition, had petitioned NAICOM over what they described as unlawful fees and regulatory demands arising from the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Mr Kari, who was also a former chief executive of NICON Insurance and Nigeria Re, said it was globally accepted that a government may occasionally intervene to rescue or support a consequential player in the financial sector, strictly where its distress poses a genuine ‘too big to fail’ systemic risk whose collapse would trigger a wider economic catastrophe.
“However, one must examine the reality of the two institutions in question today. These are no longer the market giants they once were decades ago,” he said.
He warned that having suffered years of steep decline, loss of market share, and severe operational shrinkage, their current market footprint is virtually insignificant.
“Their failure or strict regulatory discipline poses absolutely zero systemic risk to the Nigerian financial system or the broader economy. Why then should government intervene to shield operators whose distress carries no systemic consequence whatsoever?
“Rescuing or granting regulatory concessions to insignificant, chronic defaulters cannot be justified under any sound macroeconomic policy,” he added.
“When political intervention steps in to shield such non-systemic entities from standard regulatory checks, the equilibrium of the market breaks down as it creates unfair advantage.
“Operators that meet compliance targets carry the full cost of regulatory fidelity, while non-compliant firms that secure political exemptions operate with an artificial cost advantage.
“It disincentivises real capacity building: When political lobbying becomes an alternative to recapitalisation, companies are discouraged from making the hard structural choices necessary to refine their balance sheets and operations.”
He noted that if such a concession is granted to both insurance industry players in the defunct, it “distorts investor confidence: Both domestic and international investors look for predictable, transparent environments. A playing field where rules can be bent for select players frightens away patient capital. It weakens policyholder protection.”
By Adedapo Adesanya
Aradel Holdings Plc is set to commence production of Premium Motor Spirit (PMS) at its modular refinery in 2027, following the removal of fuel subsidies and the deregulation of the downstream petroleum market.
According to Aradel’s general manager of refinery, Mr Temitayo Ogunbanjo, the removal of government control over fuel prices had created an opportunity for the company to begin manufacturing petrol.
Speaking on the sidelines of a conference in Abuja, Mr Ogunbanjo told Bloomberg that the company’s 11,000 barrels-per-day modular refinery currently already produces kerosene, diesel, gas oil and naphtha.
He noted that the deregulation of the downstream petroleum market has now created a pathway for Aradel to commence gasoline production at its refinery.
He added that Aradel is also considering an expansion of the refinery, with the company assessing potential crude supply sources and export logistics as part of its plans.
The company’s integrated operations across crude oil production, refining and distribution have benefited from recent volatility in global oil markets triggered by the US-Iran war, he told the publication.
Mr Ogunbanjo also disclosed that Aradel is considering investments in aviation fuel production, as the product has emerged as an important export to the European market.
The planned petrol production is expected to further expand Aradel’s refining operations as Nigeria’s downstream petroleum sector adjusts to the post-subsidy regime and increased private-sector participation.
It could also mean competition for other dominant refiners and importers, particularly the 700,000 barrels per day Dangote Refinery. Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that Dangote supplied 87.55 per cent of Nigeria’s petrol demand in May 2026.
By Adedapo Adesanya
The decline in the share price of Central Securities Clearing System (CSCS) Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.02 per cent on Wednesday, August 12.
The securities depository company suffered a N10.88 loss to close at N106.00 per unit compared with the previous day’s N116.88 per unit.
As a result, the market capitalisation, for the third time this week, closed lower, losing N28.04 billion to finish at N2.720 trillion compared with the N2.748 trillion it ended a day earlier. The NASD Security Index (NSI) dropped 46.71 points to end at 4,532.03 points versus Tuesday’s 4,578.74 points.
Yesterday, there was a price gainer, which was FrieslandCampina Wamco Nigeria Plc. Its price increased by N13.50 to N170.00 per share from N156.50 per share.
The level of activity for the session waned on Wednesday, with the volume of securities down by 89.8 per cent to 150,340 units from the previous session’s 1.5 million units. The value of securities slumped by 55.9 per cent to N18.7 million from N42.3 million, and the number of deals depreciated by 37.3 per cent to 32 deals from Tuesday’s 51 deals.
At the close of business, Great Nigeria Insurance (GNI) Plc was the most traded 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 transacted for N6.5 billion, and CSCS Plc with 77.2 million units traded for N5.5 billion.
GNI Plc was also the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
