Economy
2018 Budget Contains No Suspicious Items—FG
By Dipo Olowookere
Federal Government has rubbished claims by some commentators in the country that the 2018 appropriation bill contains suspicious items embedded in it.
According to the Ministry of Budget and National Planning, items in the budget were well conceived and provided for by the respective MDAs.
It was alleged that some line items and projects in the budget are suspicious, but a statement issued by Mr Akpandem James, Special Adviser on Media to the Minister of Budget and National Planning, Mr Udoma Udo Udoma, said such claims are not true.
He pointed to some of the items like N10 billion for settlement of liabilities to contractors; N22.6 billion for Research and Development; N308.42 billion for procurement of riot control equipment for police formations; N2.21 billion for Social Media Mining Suite by the Department of State Security Services and N338 million for computer software acquisition in the Federal Ministry of Finance, which were termed as suspicious by BudgIT, a civil society organization (CSO) active in the budget space, and said they are genuine provisions which have been explained by the relevant MDAs.
The statement said for instance, it is a common knowledge that the Federal Government owes many contractors for certified works dating back as far as 10 years. Thus, provisions are made in the annual budgets to offset some of these contractor liabilities.
A good portion of these debts, the Minister said, is domiciled in the Federal Ministry of Power, Works and Housing, and so the Ministry made a provision of N10 billion in the 2018 Budget Proposal for settlement of liabilities.
The statement said in the Government Integrated Finance & Management Information System (GIFMIS), Research and Development is a programme description that encapsulates various projects. In this case, a check of the budget of the Federal Ministry of Industry, Trade & Investment will show that this includes the N19.3 billion for the Export Expansion Grant (EEG).
For several years the EEG scheme was suspended on account of its dubious outcomes. However in its bid to incentivise non-oil exports, the FG reformed and reinstated the scheme with effect from 2017, the statement explained.
It noted that the budgetary provision for this scheme will therefore be recurrent, year after year. Indeed, as the non-oil sector picks up, the amount of provision is expected to increase.
On the issue of N308 million for procurement of riot control equipment for police formations and the Force Head Quarters, the Ministry explained that there are 37 State Police Commands (FCT inclusive) and the Force Headquarters. This amount is less than N10 million per state police HQ.
“Nigeria is yet to attain the UN ratio requirement of one police officer to 400 citizens of a country, thus this sort of provision is to help the already stretched force to keep up with the expectation of keeping law and order during protests or matches which are the basic tenets of the freedoms allowed in a democracy.
“It is acknowledged the world over that matters of national security are treated with some degree of confidentiality.
“The project code-name, ‘Cleaning and fumigation services’ was adopted by the office of the National Security Adviser based on the available drop-down menu on the Budget Preparation Subsystem of the GIFMIS.
“However, the office of the National Security Adviser during the budget bilateral discussion provided information on the specific items of expenditure covered by the code name,” it said.
On the N2.21 billion for Social Media Mining suite by the Department of State Security Services (DSS), the Ministry explained that the agency plans to implement some security protocols to curtail spread of information capable of threatening national security.
This is it said by no means to hinder freedom of speech or expression as these will not be tampered with in as much as it is within the ambit of the law.
It explained that the N338 million in the budget for computer software acquisition in the Federal Ministry of Finance is basically to fund some ICT solutions/initiatives for improving financial management within the Federal Ministry of Finance.
For the N4.9 billion for annual maintenance of mechanical/electrical equipment in the Villa, the Minister said it must be noted that the Villa is quite an expansive complex comprising several offices, residences and other relevant support facilities.
“This provision is made to ensure that the equipment is maintained in top form at all times, and for several of these there are standard maintenance contracts,” he said.
The Ministry therefore explained that there is nothing suspicious about any of the provisions in the 2018 budget.
“It is however not unusual for some items in the Budget to require further clarifications or explanations.
That is why the Ministry made provision for a Citizens’ Portal on the website of the Budget Office for interaction and feedback purposes.
“Commentators are therefore advised to make use of the facility for clarifications on budget matters,” the statement said.
By Aduragbemi Omiyale
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) for the Nigerian private sector in July 2026 contracted to 52.5 points from 53.4 points in June 2026, a statement made available to Business Post has shown.
This occurred despite the business environment sustaining its growth last month, with an increase in new orders experienced, as inflationary pressures softened, and output and employment modestly rising.
The Head of Equity Research West Africa at Stanbic IBTC Bank, Mr Muyiwa Oni, said the PMI indicated that the private sector recorded its slowest since March 2026, as businesses also increased their input purchasing activity to keep up with current demand requirements and prepare for future workloads.
“Nigerian businesses reported improved customer demand in July while better pricing and new product launches also helped them to capture new orders arising from the increase in demand. These factors helped to keep the private sector activity in an expansionary territory, although this moderated when compared to June,” he was quoted as saying.
It was stated that while input costs increased at their slowest pace in five months, panellists reported higher costs for fuel and raw materials. Selling prices also softened in line with the picture for input costs in July.
Headline inflation eased slightly to 15.91 per cent y/y in June from 15.93 per cent y/y in May, snapping three consecutive months of price increases.
Although July inflation is likely to be higher m/m, it is expected to print lower, likely at 15.72 per cent y/y, primarily driven by favourable base effects from the corresponding period of last year, because there are no expectations of the magnitude of m/m inflation witnessed in July 2025 (1.99 per cent) to materialise this year.
“We retain our 2026 growth forecasts at 4.1 per cent as we see the oil sector growing by 3.45 per cent y/y in 2026, from 8.50 per cent y/y in 2025, while the non-oil sector is likely to grow by 4.11 per cent y/y, from 3.71 per cent y/y in 2025.
“The risks to our outlook include country-wide insecurity which may constrain food production, exchange rate pressures resurfacing, extreme-weather related conditions and higher fertiliser prices impacting crop yield, and a volatile global environment which may affect sentiment and constrain capital flows,” Mr Oni noted.
By Adedapo Adesanya
Sahara Upstream, a Nigeria-focused crude producer, has deployed a new 380,000-barrel tanker to boost exports from the OML 18 block as part of a wider push by domestic operators to invest in infrastructure and lift output and exports for Africa’s biggest oil producer.
The MT D Adesanya, which can hold more than 62,000 cubic metres of crude, will operate alongside the MT D Bayero, receiving crude from shuttle vessels at Bonny Anchorage, one of Nigeria’s main crude export hubs, before transferring it to the FSO Cawthorne storage facility.
Sahara said the tanker would help cut turnaround times, currently about 30 to 48 hours, and support a planned 50 per cent increase in exports from the block’s current level of about 950,000 barrels per month.
The block currently produces about 36,000 barrels per day, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), with Sahara targeting output of 60,000 barrels per day.
OML 18 is one of the Niger Delta’s oldest producing assets. It began production in 1970 and contains an estimated 1.5 billion barrels of oil equivalent in reserves.
Shell, Total and Eni sold their combined interests to Eroton in 2015 as part of a broader shift toward domestic ownership in Nigeria’s upstream sector.
This development comes as Sahara Upstream is deepening its exploration and production footprint through Asharami Energy Limited (AEL), its upstream E&P business, which says it is targeting 350,000 barrels of oil per day by 2030 through its subsidiary, Enageed Resources Limited (ERL).
The growth target comes as AEL also marks a major safety milestone, achieving 6 million Lost Time Injury (LTI)-free man-hours in its OML-148 operations — reinforcing the company’s commitment to operational excellence and safety leadership.
According to Asharami Energy, the milestone reflects its ability to execute complex operations safely, in line with Sahara’s Beyond XXX vision, which builds on the group’s 30-year legacy of responsible enterprise while marking its next chapter of impact, innovation, and sustainable growth.
The developments position Sahara Upstream and its subsidiaries among the domestic operators driving increased investment in Nigeria’s oil and gas infrastructure, as the group works to scale up production and exports for Africa’s biggest oil producer.
By Aduragbemi Omiyale
One of the leading energy firms in Nigeria, Aradel Holdings Plc, has expressed its desire to optimise its enlarged portfolio and improve operational efficiency in the second half of 2026.
The company is planning to build on the success it recorded in the first half of the year, where it grew its revenue by 577 per cent to N2.5 trillion from N368.1 billion in H1 2025.
The significant rise in earnings was driven by higher production volumes together with stronger realised crude oil and gas prices, with the average at $90.4/bbl and $2.08/mmscf, respectively.
In the period under review, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 688 per cent to N1.4 trillion from N176.4 billion in the corresponding period of last year, while the operating profit surged by 789 per cent to N1.1 trillion from N118.6 billion due to higher revenue and crude handling income at N149.8 billion, partly offset by underlift cost and general and administrative costs.
The net cash generated from operations was N975.6 billion between January and June 2026 versus N140.8 billion in the same period of 2025, reflecting the cash generation of the enlarged organisation.
The net debt contracted by 70 per cent on a year-to-date basis to N46.5 billion from N475.1 billion as of December 31, 2025.
Aradel, in the period under consideration, improved its post-tax profit by 30 per cent to N191.0 billion from N146.4 billion, a development that impressed its chief executive, Mr Adegbite Falade, who said, “A firmer price environment supported performance, generating net cash from operating activities of N975.6 billion and a closing cash balance of N1.7 trillion.”
“Our enlarged portfolio provides more opportunities to generate stronger cash flow and returns for shareholders and unlocking that potential is our main focus.
“We reaffirm our full year production guidance of 110 – 140 kboepd and remain committed to operating responsibly in a changing energy landscape and to delivering lasting value for our stakeholders,” he stated.
