Economy
Oil Jumps 3% as Norway Strike, US Storm Halt Production
By Adedapo Adesanya
Major benchmarks surged by more than three per cent as the latest development in Norway showed that the strike could reduce 25 per cent of the country’s production.
The international benchmark, Brent crude, rose $1.44 or 3.43 per cent to $43.43 per barrel while the United States West Texas Intermediate (WTI) crude gained $1.34 or 3.35 per cent to $41.29 per barrel.
The oil market had latched onto the news because any possible scenario that would close the gap between supply and affected demand was a positive factor.
On Thursday, the country’s petroleum output, Norway’s Oil and Gas Association, warned that if the strike continues beyond 14 October, the loss of daily production would thereby total 966,000 barrels of oil equivalent.
Norway’s petroleum output averages just over four million barrels of oil equivalent per day, broken down 50-50 between crude oil and other liquids and natural gas. Almost a quarter of Norwegian production would thereby disappear because of the strike.
The dispute between Lederne union and the association began when talks collapsed on September 30, prompting production outages from October 5.
The Lederne is pushing for the organisation to match the pay and conditions at onshore remote-control rooms with those of offshore workers.
In the US, oil and gas workers have withdrawn from offshore Gulf production facilities as Hurricane Delta was forecast to intensify into a powerful Category 3 storm. Nearly 1.5 million barrels of daily output was halted.
The market is welcoming supply cuts as the world is currently producing more oil than it can consume.
On the political scene, renewed optimism over some US coronavirus relief aid also supported the market.
After shutting down talks over a larger stimulus deal, President Donald Trump wrote on Twitter that Congress should pass money for airlines, small businesses and stimulus cheques for individuals, fuelling hopes for some relief.
Meanwhile, in a long term projection, the Organisation of the Petroleum Exporting Countries (OPEC) said worldwide oil demand was expected to increase by nearly 10 million barrels per day, rising to 109.3 million barrels per day in 2040, and to 109.1 million barrels per day in 2045. Global oil demand stood at 99.7 million barrels per day in 2019.
It represents a downward revision of over 1 million barrels per day when compared to the 2040 levels projected in the group’s 2019 outlook, published last November.
The cartel said it had downwardly revised its forecast for global oil demand growth over the long term, given the industry faced an existential threat this year caused by the coronavirus pandemic and as climate policies continue to shape the future of energy.
By Aduragbemi Omiyale
Nigeria slightly surpassed its quota set by the Organisation of the Petroleum Exporting Countries (OPEC) in July 2026.
In the month under review, the country produced about 1.57 million barrels of crude oil per day.
It was the third consecutive month Africa’s largest oil-producing nation was meeting its monthly quota, set to stabilise the price of the commodity on the global market by the oil cartel.
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday showed that the 1.5 million barrels per day ceiling for Nigeria was surpassed last month.
The agency disclosed in a statement today that the country produced 1.505mbpd of crude oil and 0.17mbpd of condensate, bringing the combined daily production to 1.67mbpd.
In the month under review, the daily peak production of crude oil and condensate was 1.78mbpd, while the lowest daily production was 1.57mbpd.
Although Nigeria met its OPEC quota in the month of July, the statistics show that on a month-on-month basis, production fell by 4 per cent.
This was attributed to the decline in production due to operational challenges experienced at the Erha and Akpo fields, which impacted crude oil output during the period under review.
These disruptions constrained production volumes and contributed significantly to the overall reduction in national crude oil output.
Despite the challenges, production operations across most other producing assets remained relatively stable, with operators implementing measures aimed at maintaining production efficiency and minimising the impact of operational constraints, NUPRC stated.
By Aduragbemi Omiyale
The over 9 billion shares of Lasaco Assurance Plc issued to shareholders of the company via a rights issue have been listed on the Nigerian Exchange (NGX) Limited.
The equities were brought to Customs Street on Wednesday by the organisation, increasing its total issued and fully paid-up share capital.
Lasaco Assurance, which scaled the recapitalisation hurdle of the National Insurance Commission (NAICOM) in July 2026, raised fresh capital from the capital market to shore up its capital base.
The underwriting firm got about N18.5 billion from the rights issue, which involved the issuance of 9,236,321,546 ordinary shares at a unit price of N2.00.
The exercise was on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
Confirming the listing of the additional stocks of Lasaco Assurance today, the Head of Issuer Regulation Department of NGX RegCo, Mr Godstime Iwenekhai, announced in a circular that, “Trading licence holders are hereby notified that an additional 9,236,321,546 ordinary shares of 50 Kobo each of Lasaco Assurance Plc were today, Wednesday, August 12, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 9,236,321,546 ordinary shares of 50 Kobo each at N2.00 per share on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
“With the listing of the additional 9,236,321,546 ordinary shares, the total issued and fully paid-up share capital of Lasaco Assurance Plc has now increased from 11,083,585,855 to 20,319,907,401 ordinary shares of 50 Kobo each.”
By Adedapo Adesanya
The Nigerian Insurers Association (NIA) has said the successful recapitalisation of the insurance industry will strengthen the sector’s ability to support financial stability and economic growth.
NIA Chairman, Mrs Ebelechukwu Nwachukwu, said a well-capitalised insurance industry would be better positioned to meet its obligations promptly, underwrite complex and large-scale risks and serve as a dependable pillar of the Nigerian economy.
She made the remarks while commending the National Insurance Commission (NAICOM) for its structured implementation of the new minimum capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Mrs Nwachukwu said NAICOM’s clear guidelines, systematic verification process, defined timelines and rigorous supervision had provided operators with a credible framework for navigating the recapitalisation exercise.
She described the outcome as a major milestone for the industry and congratulated the 43 insurance and reinsurance companies that have successfully met the prescribed minimum capital requirements.
According to her, the exercise represents “a major win not just for regulators and operators, but for policyholders, investors and the wider Nigerian economy.”
Mrs Nwachukwu said the association would continue to work with NAICOM and other stakeholders to consolidate the gains of the exercise, with emphasis on sustainable industry growth, stronger market conduct and improved consumer confidence.
The official also expressed solidarity with the eight companies still undergoing final verification and regulatory review, urging them to remain confident as NAICOM completes the process within the 14-day review period.
The NIA chairman assured policyholders and the wider business community that the insurance industry would emerge from the recapitalisation exercise stronger, more resilient and better positioned to contribute to Nigeria’s economic development.
