Economy
Nigeria May Lose $10b from Oil & Gas Lease Renewal—Senate
By Modupe Gbadeyanka
The Senate on Wednesday raised an alarm of the possibility of losing about $10 billion from the ongoing lease renewals in the oil and gas sector.
In order not to make the nation loss such a huge amount from the exercise, especially at this time the country was borrowing to fund its budgets, the Senate has summoned the Minister of State for Petroleum Resources, Mr Ibe Kachiwku.
At the plenary yesterday, the upper legislative arm of government directed its Committee on Petroleum Resources (Upstream) to investigate issues lease renewals.
In a motion titled ‘Irregularities in Ongoing Oil and Gas Lease Renewal and Massive Loss of Government Revenue’ by Mr Omotayo Alasoadura and three other senators, it was alleged that, “The Minister and the Department of Petroleum Resources were proceeding to renew leases of companies that had brazenly and illegally refused to pay royalties from oil and gas lifted by the companies in contravention of extant laws.”
According to Mr Alasoadura, the Committee on Petroleum Resources had since December, 2017 been inundated with petitions and complaints over alleged multiplicity of irregularities surrounding the renewal of oil and gas leases.
“The action of the Minister of State is capable of short-changing the country and denying the Federation the appropriate revenue accruable from the renewal of the leases,” he warned.
The lawmaker said, “Under the provision of extant laws, failure to pay royalties is a ground for revocation of leases and a legal barrier to renewal of applicable leases.”
“There is a subsisting legal framework and due process mandated by extant law for the renewal of leases that are due,” he added.
According to him, the alleged irregularities are capable of denying government revenue in excess of $10 billion as a result of illegal discounts and rebates in the process of lease renewal.
The lawmaker said that efforts by the senate committee to engage DPR on the matter failed.
According to him, the Department of Petroleum Resources wilfully and deliberately refused to provide the committee with relevant information and data related to the lease renewal.
“There is need to thoroughly investigate the lease renewal in view of the potentially alarming impact this will have on government in terms of loss of revenue accruable to the federation.”
In his contribution, Mr Shehu Sani said that the motion was an indication of the rot in the oil and gas industry, adding that $10 billion was huge revenue that the country could not afford to lose.
“From the substance of this motion, it is very clear that the Minister of State has in every possible way been engaged in acts that contravene the law.
“Over a year ago, he wrote an open letter raising issues about transparency and impunity in the oil sector.
“The issue of lease is something that has been on the front burner of national discourse in the last few weeks.
“What this parliament can do is to once and for all bring the minister to make clarification on the actions he has taken as 10 billion dollars is no small amount of money.
“I am of the belief that if we can get to the root of this matter, it will also open other cans of worm,” he said.
On his part, Mr Rafiu Ibrahim stressed the need to expand the investigation.
“The President is the Minister of Petroleum Resources, maybe that is why this motion is not mentioning the Minister of Petroleum Resources.
“We are aware that the Minister of State ordinarily does not have the final approval for this type of case.
“There is a Board of NNPC and the Ministry and it is out there, though yet to be substantiated that the Chief of Staff to the President is a member of the board and is literally in charge of the board and the ministry.
“I will just want the prayer to expand those to be called in the investigation.”
In his remarks, Deputy President of the Senate, Mr Ike Ekweremadu, who presided at plenary, charged the committee to carry out thorough investigation on the issue.
He stressed the need for proper oversight by the committee, adding that “what matters most in cases like this is transparency in our oversight functions”.
By Adedapo Adesanya
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.
By Adedapo Adesanya
The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.
It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.
The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.
At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.
As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.
A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.
The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.
The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.
The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.
Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
By Aduragbemi Omiyale
The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.
In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.
However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.
In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.
Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.
Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.
“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.
“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.
His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.
“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.
“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”
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