Economy
NNPC Laughs Off Non-Remittance of Funds Allegation
By Modupe Gbadeyanka
Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr Maikanti Baru, has played down allegations of non-remittance of funds by the agency into the federation account.
In a statement issued by the Group General Manager, Group Public Affairs Division of NNPC, Mr Ndu Ughamadu, the state-owned oil firm chief said the NNPC has been faithfully remitting all revenues accruing to it to the account.
Speaking on Thursday to members of the Senate Committee on Petroleum (Upstream), who were at the corporate headquarters of the corporation in Abuja on an oversight visit, Mr Baru said allegations of non-remittance of funds had become a recurrent decimal over the years, occasioned in part, to the nature of the corporation’s operations which involved credit lines requiring constant audit and reconciliation.
“While the process of audit and reconciliation of accounts is on, a lot of accusations of short payments and non-remittances are usually traded, we endeavour to keep our cool on these allegations because we know that we remit whatever is due to the Federation Account”, he explained.
Further putting the issue in perspective, Dr Baru stated that such allegations usually arose from disagreements over expenses borne by the corporation on behalf of the Federal Government.
On efforts by the NNPC to ensure that Joint Venture (JV) and Production Sharing Contract (PSC) partners do not run excessive bills at the expense of the nation, the GMD explained that apart from the establishment of an Efficiency Unit in the corporation to ensure value for money across all operations, NNPC had also done a lot in renegotiating contracts as well as benchmarking costs in keeping with international best practices, adding that the effort had yielded significant results in terms of reduction in the cost of crude oil production per barrel in the Industry.
Also responding to a question on why the PSC agreements had not been reviewed for a long time despite clauses in the agreements that stipulate periodic review, Dr. Baru disclosed that a Presidential approval had been secured and that a committee would be set up soon to carry out the review.
He, however, disclosed that in the absence of a comprehensive review, NNPC had looked at projects on a project-by-project basis and raised observations which some of the partners had taken permission to present before their managements.
Speaking earlier, Chairman of the Senate Committee on Petroleum (Upstream), Senator Omotayo Alasoadura, who led members of the committee on the oversight visit, said the committee would like to have a month-by-month crude oil production figures for the past two years and crude prices for the period.
He called on NNPC to fully cooperate with the Senate in providing input on the fiscal component of the Petroleum Industry Reform Bill and the other segments of the Bill coming up for public hearing next week at the National Assembly.
Speaking further on the visit, the committee Chairman said: “We have just come to fulfil another part of our mandate, which is to oversee what NNPC is doing. It’s not a mission to harass anybody, it’s for us to understand each other, give advice, as nobody is a sole repository of knowledge. Everybody knows that Dr. Baru is very knowledgeable in the Industry, but he can’t know everything, even people who don’t know anything about the Industry may have useful ideas that can be of help”.
Other members of the committee who were present at the meeting include: Senators Gershom Bassey (Vice Chairman), Sam Egwu, Victor Umeh, Fatimat Raji Rasaki, Clifford Ordia, Osinakachukwu Ideozu, Stella Oduah and Biodun Olujinmi.
By Adedapo Adesanya
United Capital Plc has acquired a 5 per cent equity stake in the Nigerian Exchange (NGX) Group Plc for an undisclosed fee, deepening its involvement in Nigeria’s capital market.
The pan-African investment banking and financial services group announced this in a statement on Monday, noting that the transaction had been successfully completed and describing the investment as a key milestone in its long-term growth strategy.
NGX Plc, which serves as the holding company for Nigeria’s premier securities exchange and related market infrastructure businesses, plays a central role in Nigeria’s capital formation, market development, and economic growth.
United Capital said the acquisition reflects its confidence in the future of Nigeria’s capital markets and positions the Group to contribute more actively to the development of the nation’s financial system.
Commenting on the development, the chief executive of United Capital, Mr Peter Ashade, said the investment aligns with the company’s vision of creating sustainable value while supporting institutions critical to economic development.
“This acquisition reflects our confidence in Nigeria’s capital markets and our responsibility to contribute to their growth actively,” Mr Ashade said.
“We have always said that United Capital is not just a participant in Nigeria’s capital markets; we are also builders. This strategic investment in NGX Plc is exactly that: we are building for impact. It is our vote of confidence in the leadership and strategic direction of the NGX and where the capital market is headed,” he added.
According to him, the acquisition underscores the firm’s commitment to supporting the continued evolution of Nigeria’s capital market infrastructure while delivering long-term value to shareholders.
United Capital, which operates across 12 countries in West, East and Central Africa, provides a range of services spanning investment banking, asset management, securities trading and wealth management.
The company said the stake in NGX Plc would enable it to leverage its regional footprint and market expertise to support the Exchange’s next phase of growth and transformation.
The acquisition comes amid a series of strategic milestones for the financial services group, including the successful recapitalisation of all its subsidiaries ahead of regulatory deadlines and the recent acquisition of operational licences in Ethiopia and Rwanda.
By Adedapo Adesanya
Nigerians have kicked against suggestions by the International Monetary Fund (IMF) to the federal government to consider increasing the Value Added Tax (VAT) rate and introducing excise duties on telecommunications services as part of efforts to boost revenue generation and create fiscal space for development spending.
IMF, in its 2026 Article IV Consultation Report on Nigeria, warned that despite recent tax reforms, additional revenue measures would likely be required over the medium term to support critical social and infrastructure spending.
According to the IMF, Nigeria’s revenue mobilisation efforts must go beyond administrative improvements to address the country’s persistently low revenue-to-GDP ratio and rising expenditure pressures.
The Fund stated that, “Further tax policy changes will likely be needed, such as increasing the VAT rate, extending VAT to fuel products, rationalising tax expenditures in particular VAT exemptions on extractive industries and some customs duties, and introducing telecom excises, to complement administrative gains.”
It noted that while the recently enacted tax reforms are expected to improve revenue collection over time, some of the measures are revenue-reducing in the short term and may take time to yield significant gains.
On X (formerly Twitter), user @RealCeecee wrote – “You want to impose more suffering on people living on empty pockets. Where exactly does all this revenue go to? IMF would never give this kind of advice to any country that has good leaders, when the masses are already going through extreme suffering.”
“To be honest Nigerian need to stand its feet against the IMF, no be anything them go detect for us. The revenue they are talking about has anyone seen where it goes, let alone imposing another way to generate that will actually cause discomfort for Nigerians,” another handle, @KingMasy, wrote.
The IMF had stressed that continued revenue mobilisation is essential if the government is to sustain higher capital spending and expand social intervention programmes aimed at cushioning the impact of economic reforms on vulnerable Nigerians.
“Over the medium term, continued revenue mobilisation is essential to creating fiscal space for development and social spending,” the Fund said, adding that there was limited room to maintain the projected increase in capital expenditure without additional revenue sources.
The Bretton Woods institution, however, cautioned that the timing of any new tax measures should take into account the worsening poverty and food insecurity situation in the country.
It emphasised that any tax increases should be accompanied by a fully funded and effective cash transfer programme to shield vulnerable households from additional economic hardship.
“The timing of reforms must consider the poverty and food insecurity situation and ensure that the cash transfer system is in place and funded,” the report stated.
The IMF’s recommendation comes as Nigeria continues to grapple with weak revenue generation despite recent reforms, including the removal of fuel subsidies and efforts to improve tax administration.
The Fund projected that poverty and food insecurity could worsen amid higher global fuel and food prices, noting that poverty had already reached 63 per cent of the population while about 27 million Nigerians faced food insecurity in 2025.
It also reiterated its call for a neutral fiscal stance in 2026, warning that spending pressures linked to poverty, food insecurity and preparations for the 2027 general elections could widen fiscal deficits and increase financing needs if not carefully managed.
By Adedapo Adesanya
The National Bureau of Statistics (NBS) has revealed that Nigeria’s headline inflation rate in May 2026 rose to 15.93 per cent from 15.69 per cent in April, as the pressure from the Iran war continued to affect the global economy.
In the report on Monday, the statistical office showed that the headline inflation rate for May on a month-on-month basis was 1.75 per cent. 0.39 per cent lower than the 2.13 per cent recorded in April 2026.
On an annualised basis, the print was down from 26.06 per cent in the same month of the preceding year (May 2025). This was due to the rebasing of the calculation year from 2009 to 2024.
The rise in prices, which stemmed from the continued conflict in the Middle East, continued to stoke food prices and energy costs, which account for a huge chunk of average spending.
According to the NBS, “this can be attributed to the rate of change in the average prices of the following products: Millet whole grain, yam flour, ginger (Fresh), beef, garri, tam tuber, pepper (Fresh), cray fish, cassava tuber, Beans, Irish Potatoes, tomatoes (fresh), wheat grain (Sold loose), soya beans, guinea corn, plantain, carrots (Fresh) etc.”
The Food inflation rate in May 2026 on a month-on-month basis was 2.98 per cent, down by 0.65 percentage points from April 2026 (3.63 per cent), while on a year-on-year basis, it was 16.96 per cent and stood at 24.55 per cent in the same month of the preceding year (May 2025).
In its recent assessment of Nigeria, the International Monetary Fund (IMF) acknowledged the country’s ongoing macroeconomic reform efforts while warning that rising inflation, deepening poverty, and external shocks linked to geopolitical tensions could undermine recent gains.
The IMF projected a reversal in the disinflation trend, with headline inflation rising from 15.1 per cent in February 2026 to 15.4 per cent in March, driven largely by food price increases. It projected year-end inflation of 17.0 per cent, citing global commodity shocks and domestic pass-through effects.
The lender also recommended that the Central Bank of Nigeria maintain a cautious, data-dependent monetary policy stance following its recent steadying of interest rates at 26.5 per cent.
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