Economy
NEITI Calls for Review of Oil Producing Agreements
By Modupe Gbadeyanka
The need to urgently review the Deep Offshore and Inland Basin Production Sharing Agreement between Nigeria and oil companies has been stressed by the Nigeria Extractive Industries Transparency Initiative (NEITI).
In a statement signed by its Director in charge of Communications and Advocacy, Dr Orji Ogbonnaya Orji, the agency explained that the urgency to review the obsolete legislation without further delay was in view of the revenue losses to the federation by the use of the old agreement in computation of revenues to be shared between the government and oil companies.
NEITI recalled that the Deep Offshore and Inland Basin Production Sharing Contracts Act of 1993 provides for: “ a review of the terms when prices of oil crosses $20 in real term; and a review of the terms 15 years after operation of the agreement and five years subsequently.”
However, NEITI said it observes with concern that Nigeria was yet to adhere to this important provision even now that the price of oil was revolving around $70 per barrel.
In an Occasional Paper released by NEITI which reviewed three years of NNPC’s financial and operations reports, NEITI has noted that crude oil production under the Production Sharing Contracts (PSCs) has since overtaken production under the Joint Venture arrangements.
A careful look shows that the Production Sharing Contracts (PSCs) accounted for 44.8 percent of total oil production while the Joint Ventures (JVs) contributed 31.35 percent.
A historical analysis of this development by NEITI shows that JV Companies accounted for over 97 percent of Production in 1998 while PSCs contributed only 0.50 percent.
This trend continued until 2012 when PSCs accounted for 37.58 percent while JVs contributed 36.91 percent.
From the publication in 2013, PSCs contributed 39.22 percent while JVs contributed 36.65 percent, 2014: PSCs; 40.10 percent and JVs 32.10 percent; 2015: PSCs 41.45 percent and JVs 31.99 percent while in 2017 the contributions stood at PSCs 44.32 percent and 30.85 percent respectively.
The NEITI Occasional Paper further explained that: “Other companies, comprising Nigerian Petroleum Development Company (NPDC), Alternative Financing (AF), and Independent/ Marginal Fields contributed 2.39 percent to total production in 1998 and by 2017 this had risen to 24.83 percent.
“This figure clearly shows the changing structure of oil production in Nigeria, where PSCs (which contributed a mere 0.5 percent to total production 20 years ago) have dramatically overtaken JVs (which contributed 97 percent to total production 20 years ago)”.
Between 2015 and 2017 covered by NEITI’s Occasional Paper review of NNPC Report, Nigeria produced 2.126 billion barrels of crude oil and condensate.
A Further review of the NNPC Report shows that: “Production was highest in 2015 with 775.6 million barrels produced. Production was lowest in 2016 with 661.1 million barrels produced, while production in 2017 was 690 million barrels.
“The year 2016 was a difficult year for oil production because production was shut in a number of oil terminals”.
NEITI said its major concern is that now that the PSCs account for about 50 percent of total oil production and major source of revenues, the delay or failure to review and renew the agreement means that payment of royalty on oil production under PSCs would not be made while computation of taxes would be based on the old rates.
On lifting of crude oil, the NNPC Monthly Financial and Operations Report disclosed “international oil companies (IOCs) lifted more crude oil than the government.
“Total lifting of crude oil and condensates was 2.135 billion barrels. Of this sum, IOCs and Independents lifted a total of 1.367 billion barrels, while government’s lifting by NNPC was 721.16 million barrels.
“This means that the operators lifted 64.01 percent of total crude lifting’s, while government through NNPC lifted 33.76 percent. When expressed in monetary terms, total government lifting of oil amounted to $35.893 billion while the figure for IOCs and Independents was $68.591 billion”
The NNPC Report further disclosed that refineries received 15.15 percent of total domestic crude lifting out of which 41.32 percent was utilized under the Direct Sale Direct Purchase (DSDP) program of NNPC.
On Refineries and domestic crude utilization, the report disclosed that for the 3 years under review, Nigeria’s refineries recorded an average capacity utilization of 12.26 percent.
A further breakdown shows that Kaduna refinery had the lowest capacity utilization of 9 percent while Warri and Port Harcourt recorded 9.73 percent and 15.4 percent respectively.
One striking feature of the NNPC financial operations report is the disclosure that the corporation lost the sum of N547 billion in its operation between 2015 and 2017.
Out of this amount, the NNPC Corporate Headquarters recorded the highest revenue loss to the tune of N336.268 billion.
On the contrary, the report revealed that the Nigeria Gas company made a huge profit of N141.324 billion.
NEITI said while it applauds the monthly voluntary disclosures by the NNPC, it was important to note that NEITI through its auditors under the EITI framework has not independently verified the information and data from the NNPC reports.
“NEITI has not, except for the year 2015, independently validated the data from NNPC. This will be done in ongoing and future reconciliation reports. What has been done here is a preliminary analysis of the data that NNPC has made available for the three-year period. The figures examined here do not represent the sum total of all revenues from the sector, as other payment streams like royalties and taxes from JVs, signature bonuses, transportation rental fees, NESS fees, penalties and others are not covered by the NNPC financial and operational reports” the NEITI Report concluded.
NEITI however commended the NNPC for the reconciliation of the crude swap under-delivery transaction executed during the crude- for- product- swap.
NEITI also urged the corporation to sustain the new spirit of openness while encouraging the citizens to use the information and data from the NNPC’s disclosures to promote public debate required in implementing the on-going reforms in the extractive sector.
The NEITI Occasional Paper series which reviewed the 3 years of NNPC operations and financial reports is the third in the series. In the pursuit of EITI global Open Data Policy, NEITI has data set for the three years (2015 -2017) in excel format readily available on its website in support of public interest, analysis and debate.
By Adedapo Adesanya
Nigeria’s pension fund assets surged by 22 per cent or N4.94 trillion to N27.45 trillion in 2025 from N22.51 trillion in 2024, according to the latest data from the National Pension Commission (PenCom).
The year-on-year growth underscores the resilience of the Contributory Pension Scheme (CPS), supported by steady employer and employee contributions, improved compliance and stronger investment returns across fixed income and equities.
The achievement capped a year of uninterrupted monthly expansion, reinforcing the sector’s role as one of Nigeria’s most stable pools of long-term domestic capital, despite a challenging macroeconomic environment, an industry analyst said.
Pension assets rose progressively from N22.86 trillion in January 2025 to N23.26 trillion in February and N23.38 trillion in March. By mid-year, assets had climbed to N24.62 trillion, before accelerating in the second half to N25.89 trillion in August, N26.66 trillion in October, N27.05 trillion in November and ultimately N27.45 trillion in December.
On a year-on-year basis, the industry expanded significantly. Total pension assets stood at N22.51 trillion in December 2024. The increase of N4.94 trillion over 12 months translates to approximately 22 per cent growth, reflecting both fresh contributions and investment returns.
The 12-month growth and broader annual expansion are driven by three primary factors: sustained pension contributions, investment income across asset classes, and the expansion of RSA funds.
Mandatory employer and employee contributions under the CPS continued to provide steady inflows, supported by improved compliance among corporate employers, and the expansion of coverage contributed to the accumulation of assets throughout the year.
PFAs benefited from improved yields in fixed income markets and positive performance in domestic equities during parts of the year. Both realised and unrealised gains contributed to the increase in assets under management, while the bulk of the growth came from Retirement Savings Account (RSA) Funds, particularly Funds II and III, which account for the largest share of contributors.
RSA Fund II, the default fund for active contributors below 50 years, grew from N9.24 trillion in December 2024 to N11.52 trillion in December 2025, an increase of N2.28 trillion.
RSA Fund III rose by about N1.10 trillion to N7.02 trillion, while RSA Fund IV, designed for retirees, also recorded significant growth, adding roughly N630 billion during the year.
These three funds collectively represent the core of pension savings within the system and were instrumental in driving the overall asset expansion.
A review of portfolio composition shows that federal government securities remained the dominant investment class, accounting for the largest share of pension assets. Holdings in FGN bonds and treasury bills continued to provide stability and predictable returns.
Corporate debt securities and money market instruments also contributed meaningfully, offering attractive yields amid tight monetary conditions. Meanwhile, domestic equities supported asset growth during market rallies, helping diversify returns.
The balanced allocation across fixed income, equities and other instruments helped cushion portfolios against volatility while sustaining steady growth in total assets.
With assets at N27.45 trillion, the sector continues to deepen its role in long-term domestic capital formation.
By Adedapo Adesanya
There was a 0.92 per cent correction at the NASD Over-the-Counter (OTC) Securities Exchange on Tuesday, February 17, pushed by declines in the share prices of 11 Plc and Central Securities Clearing System (CSCS) Plc.
11 Plc lost N28.80 during the session to trade at N263.00 per share compared with the previous day’s N291.80 per share, and CSCS Plc weakened by N4.84 to N75.25 per unit from N80.09 per unit.
Consequently, the NASD Unlisted Security Index (NSI) slid by 36.87 points to 3,964.55 points from 4,001.42 points, and the market capitalisation lost N22.06 billion to end N2.372 trillion compared with Monday’s value of N2.394 trillion.
Business Post reports that there were five price gainers yesterday, which could not lift the market.
They were led by FrieslandCampina Wamco Nigeria Plc, which appreciated by N5.89 to N77.24 per share from N71.35 per share, First Trust Mortgage Bank Plc grew by 8 Kobo to 90 Kobo per unit from 82 Kobo per unit, Geo-Fluids Plc increased by 8 Kobo to N3.58 per share from N3.50 per share, Lagos Building Investment Company (LBIC) Plc gained 7 Kobo to close at N3.48 per unit versus N3.41 per unit, and Acorn Petroleum Plc added 2 Kobo to sell at N1.33 per share compared with the previous day’s N1.31 per share.
During the session, the volume of transactions slid 91.0 per cent to 4.2 million units from 46.2 million units, the value of trades declined 88.4 per cent to N61.9 million from N532.8 million, and the number of deals shrank 2.3 per cent to 43 deals from 44 deals.
CSCS Plc remained the most active stock by value (year-to-date) with 31.9 million units exchanged for N1.9 billion, trailed by Resourcery Plc with 1.05 billion units worth N408.6 million, and Geo-Fluids Plc with 71.8 million units valued at N299.1 million.
The most traded stock by volume (year-to-date) remained Resourcery Plc with 1.05 billion units sold for N408.6 million, followed by Geo-Fluids Plc with 71.8 million transacted for N299.1 million, and CSCS Plc with 31.9 million units traded for N1.9 billion.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited suffered a 0.47 per cent decline on Tuesday a day after hitting all-time highs in its key performance barometers.
This was influenced by profit-taking in Nigerian stocks, as investors cashed out from the gains recorded in the past trading sessions.
According to data, the All-Share Index (ASI) was down by 899.50 points during the session to 189,362.94 points from the preceding session’s 190,262.44 points, and the market capitalisation decreased by N577 billion to N121.553 trillion from the N122.130 trillion achieved a day earlier.
Business Post reports that the sell-offs were intense yesterday as four of the sectors tracked ended in the red.
The consumer goods space improved by 2.54 per cent, but this was not enough to save Customs Street from crumbling when market activity ended at 2:30 pm.
The banking index was down by 3.69 per cent, the insurance space tumbled by 0.57 per cent, the industrial goods counter depleted by 0.50 per cent, and the energy sector dipped 0.06 per cent.
Despite the loss, the market breadth index remained positive after the bourse closed with 44 price gainers and 40 price losers, implying strong investor sentiment.
The trio of Mecure, SAHCO, and Zenith Bank gave up 10.00 per cent each to trade at N93.60, N117.00, and N80.55 apiece, while RT Briscoe depreciated by 9.95 per cent to N14.12, and Tripple G crashed by 9.77 per cent to N6.00.
Conversely, ABC Transport zoomed off by 9.94 per cent to N9.07, Zichis jumped 9.93 per cent to N13.06, Red Star Express appreciated by 9.87 per cent to N29.50, Meyer grew by 9.81 per cent to N22.95, and Japaul increased by 9.78 per cent to N3.03.
As for the activity chart, investors traded 1.2 billion stocks worth N60.2 billion in 86,607 deals compared with the 1.1 billion stocks valued at N64.0 billion transacted in 64,821 deals on Monday, representing a fall in the trading value by 5.94 per cent, and a surge in the trading volume and number of deals by 9.09 per cent and 33.61 per cent apiece.
Access Holdings ended the session as the busiest equity after the sale of 103.5 million units for N2.7 billion, Zenith Bank traded 93.1 million units valued at N8.0 billion, Japaul transacted 73.8 million units for N223.6 million, First Holdco exchanged 54.3 million units worth N2.6 billion, and Secure Electronic Technology sold 45.9 million units valued at N83.3 million.
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