Economy
NLNG Not For Sale—FG
By Modupe Gbadeyanka
Minister of State for Petroleum Resource, Mr Ibe Kachikwu, has disclosed that federal government has no intention to put the Nigerian Liquefied Natural Gas Limited (NLNG) up for sale as being speculated.
Mr Kachikwu made this known on Monday while appearing before an investigative hearing established by the House of Representatives to look into the sale of national assets.
The probe panel is led by Mr Fred Agbedi, a lawmaker from Bayelsa State, who is the Chairman of the House Committee on Gas Resources and Allied Matters.
The Minister, who was represented by the Director in charge of Gas Resources in the Ministry, Mrs Esther Ifejika, disclosed that NLNG would not be sold to investors for whatever reason.
“We are not aware of any plans to sell NLNG by the federal government,” Mr Kachikwu emphatically told the lawmakers.
Also at the hearing, Mrs Ifejika, who said the presentation of the Ministry and that of the Nigerian National Petroleum Corporation (NNPC) were harmonized could not proceed further with the presentation as the committee discovered glaring discrepancies in the documents of the Ministry and that of the NNPC as presented by Bello Rabiu, Chief Operating Officer, (Upstream), who represented the Group Managing Director, Maikanti Baru.
Having rejected both documents for lack of authenticity and signature as observed by members, the panel further queried the NNPC and the Ministry over what it called some staggering increases in the upgrade contract of OML 58 and the execution of the Northern Option Pipeline.
TOTAL E&P who handled the Joint Venture contract said the initial contract sum was $3.451 billion, but was eventually increased to $4.6 billion after consideration of a number of factors.
Given the revelation, members of the panel expressed displeasure over the huge variation in the contracts amounting over $1.15 billion.
Members were however told that the NNPC entered into a JV with Total Exploration and Production Nigeria Limited (TEPNG) and there was a Modified Carry Agreement and award to TEPNG to execute the OML 58 Upgrade 1 in 2008, Obite-Ubeta-Rumuji (OUR) pipeline in 2010, and the Northern Option Pipeline in 2011 respectively.
Explaining the process which he said followed laid down procurement processes, Rabiu of the NNPC, informed the panel that no money had been paid on the variations.
He said following the variations raised by the contractor, the board of the corporation suspended the procurement with a view to subjecting same to the Federal Executive Council (FEC), approval, adding that same is being waited.
According to Patrick Olinma, who represented Total’s managing director at the hearing, contract for the upgrade of OML 58 upgrade 1 and the execution of the Northern Option Pipeline were awarded to Saipim/Ponipcelli/Desicon (SPD) and Sapim/Desicon (SD) Consortiums as the major contractors at an initial contract cost ceiling of $1.665 billion and $472million with a completion date of 2012 and 2013.
“However, during execution, these projects encountered some challenges which led to delays and an increased cost of over $3.8 billion and $921m respectively as at December, 2015 and an additional $79m and about $921m incurred upon full completion resulting in the expenditure of about $175m and $170m respectively,” he said.
Similarly, the contract for the execution of the Obite-Ubeta-Rumuji (OUR) pipeline project in 2010 was awarded to Zahem/Baywood Consortium as the major contractor at the carrying cost of $269million, $293 million and $469million.
Members however, posited that the reason for the variations was because the contractor engaged by Total was incompetent resulting in the extra cost.
But the Total representative said that they had a duty to comply with the local content act and that they were told there were 14 communities which in reality were 74 communities.
The Chairman of the Committee said though the parliament made the law, it did not say that the contractor should be employed as a learning curve, adding that the cost is too staggering to be ignored.
At this point, the panel demanded that both NNPC and Total produce the board’s resolution on the contracts before it was awarded to ensure they comply with procurement laws.
Other requirements include, love of adherence to section 21 of the procurement Act which provides for the constitution of a Procurement Planning Committee, with staff from both sides of the divide deciding the mode of procurement.
Also demanded are the market survey, financial bid evaluation with emphasis on inflation and variation variables, as well as financial and technical bid analysis.
Panel also asked for financial updates on payment, status reports on the projects, saying that the motion’s primary concern dwells on the procurement process.
Additional information from The Nation.
By Aduragbemi Omiyale
The presidential candidate of the Labour Party in the 2023 general elections, Mr Peter Obi, has expressed worry over plans by the administration of President Bola Tinubu to spend about $11.6 billion on debt servicing.
In a post on his social media platform on Monday, the opposition politician criticised this move, saying it is not good for the country.
He also said this action “should concern anyone interested in the country’s economic future and long-term development.”
The former Governor of Anambra State kicked against the penchant of the government to borrow from various sources without anything to show for it.
“There is nothing inherently wrong with borrowing when it is guided by prudence and directed toward productive investment, he noted, stressing that countries such as Japan, the United Kingdom, the United States, the United Arab Emirates, Singapore, and Indonesia are all heavily indebted, yet their borrowings are largely channelled into education, healthcare, infrastructure, and innovation – sectors that generate long-term economic returns and sustain repayment capacity.”
According to him, “despite high debt levels, their obligations remain more manageable because they are tied to measurable productivity.”
He said, “Nigeria’s situation, however, is markedly different. A huge proportion of past borrowing has been directed toward consumption, with limited visible or sustainable developmental outcomes to justify the scale of indebtedness.”
“It is also important to note that a huge portion of the debt currently being serviced was accumulated under the Tinubu administration itself, while borrowing has continued at a significant pace. The administration’s recent external borrowing alone includes about $6 billion (from First Abu Dhabi Bank in the UAE—$5 billion, and UK Export Finance via Citibank London—$1 billion), a further $1.25 billion under consideration from the World Bank, and an additional $516 million arranged through Deutsche Bank, bringing the latest known external loan commitments to roughly $7.8 billion. In addition, domestic borrowing through monthly bond issuances continues to add to the overall debt stock,” the businessman also stated.
“Against this backdrop, Nigeria’s 2026 budget shows that health is N2.46 trillion, education is N2.56 trillion, and poverty alleviation is N865 billion, giving a combined total of about N5.885 trillion for these three critical sectors.
“By comparison, debt servicing at about $11.6 billion (approximately N17–N18 trillion, depending on exchange rate assumptions) is almost three times higher than the total allocation to health, education, and social protection combined. This imbalance highlights a troubling fiscal reality in which debt obligations increasingly crowd out investment in human capital and poverty reduction.
“Moreover, even within the limited allocations to these sectors, funds may not be fully released, and a significant portion of what is eventually released could be misappropriated,” he further stated.
Mr Obi said, “The central issue is not borrowing itself, but whether borrowed funds are being converted into measurable productivity, inclusive growth, and improved living standards. Without this, debt servicing shifts from being a temporary fiscal obligation to a long-term structural burden that constrains development and deepens economic vulnerability.”
By Adedapo Adesanya
Pathway Advisors Limited, an issuing house and financial advisory firm, has announced the successful completion of the Series 2 Commercial Paper issuance for Veritasi Homes & Properties Plc.
The Series 2 offer, issued under Veritasi Homes’ newly registered N20.00 billion Commercial Paper Programme, raised N16.76 billion, significantly above its initial N12.00 billion target on the back of strong institutional demand.
This issuance builds on the company’s track record in the Nigerian debt capital market and follows the recently concluded N10 billion 3-year 20 per cent Series 1 Fixed Rate Bond Issuance, further reinforcing investor confidence in Veritasi Homes’ strong credit profile.
The 364-day tenor instrument attracted robust participation from a diverse pool of institutional investors, underscoring sustained confidence in the Company’s financial strength, operating model, and governance standards.
Commenting on the deal, the Founder/CEO of Pathway Advisors Limited, Mr Adekunle Alade (MBA, FCA, M.CIod), noted that the outcome further validates investor appetite for well-structured transactions in the Nigerian capital market.
“The strong oversubscription speaks to the market’s confidence in Veritasi Homes’ performance, governance, and repayment track record. We are pleased to continue supporting issuers with strong fundamentals in accessing efficient funding.’’
He further highlighted that Veritasi Homes’ consistent market activities since 2022, including successful issuances and full redemption of matured obligations, continue to strengthen its reputation among institutional investors.
“Pathway Advisors Limited remains committed to maintaining its leadership position within Nigeria’s capital markets through the origination and execution of transformative, value-driven, and commercially viable transactions by deploying innovative financial solutions and facilitating strategic capital formation across critical sectors.
“We are committed to supporting credible corporates in accessing efficient short-term and long-term financing solutions within the Nigerian capital market,” he said in a statement on Monday.
Speaking on the transaction, the Managing Director/CEO of Veritasi Homes & Properties Plc, Mr Nola Adetola, described the outcome as a strong endorsement of the company’s fundamentals.
“This result reflects the resilience of our business model, our growing market reputation, and the continued trust of the investment community. We are grateful to all institutional investors for their confidence in Veritasi Homes.”
He added that the proceeds from the issuance will be deployed to support the company’s working capital requirements, enhance liquidity, and complete the ongoing development activities across its real estate portfolio.
Mr Adetola also commended Pathway Advisors Limited for its advisory and arranging role in the successful execution of the transaction.
By Aduragbemi Omiyale
The Securities and Exchange Commission (SEC) has approved the transition to the T+1 settlement cycle for capital market transactions from June 1, 2026.
This is coming some months after Nigeria moved from the T+3 settlement cycle to the T+2 settlement cycle.
The T+ settlement cycle is the number of working days required to complete a capital market transaction, such as the trading of securities, shares, and others, from the first day the trade was executed by an investor.
In a notice on Monday, the SEC, which is the apex capital market regulator in Nigeria, said it was authorising the new system to “promote an efficient, fair, and transparent capital market.”
Under the new arrangement, equities and commodities traded by investors at the market would be cleared and settled by the Central Securities Clearing System (CSCS) within one day.
The agency noted that the migration to a T+1 settlement cycle forms part of its ongoing market modernisation initiatives aimed at enhancing market efficiency and strengthening risk management. reducing counterparty exposure, improving liquidity, and aligning the Nigerian capital market with international standards and global best practices.
“Accordingly, all eligible trades executed in the Nigerian capital market shall settle one business day after the trade date (T+1),” a part of the statement noted.
It was stressed that “Friday, May 29, 2026, shall be the final trading day under the existing T+2 settlement cycle. Trades executed on Friday, May 29, 2026, and Monday, June 1, 2026, shall both settle on Tuesday, June 2, 2026. All trades executed from Monday, June 1, 2026, onward shall be subject to the T+1 settlement cycle.”
SEC tasked all capital market operators, securities exchanges, clearing and settlement infrastructure providers, custodians, registrars, issuers, and other relevant stakeholders to take all necessary measures to ensure full operational readiness and compliance with the new settlement framework.
“Market participants are expected to review and align their systems, processes, controls, and operational workflows ahead of the implementation date,” it further stated, promising to continue to engage stakeholders and monitor the implementation process to ensure an orderly and seamless transition.
The regulator said it remains committed to strengthening market integrity, enhancing investor confidence, and fostering the development of a modern. resilient and globally competitive Nigerian capital market.
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