Economy

Analysts Warn of Increased Security Threat to Nigerian Oil Industry

Published

4 years ago

01/09/2021

By Adedapo Adesanya

Rising security threats are posing a major risk to Nigeria, a key supplier of light sweet crude grades to Europe, industry officials and analysts have warned.

S&P Global Platts Analytics expects Nigeria to be one of the largest risks for the Organisation of the Petroleum Exporting Countries and allies (OPEC+) production growth in end-2021 and has warned supply threats by militants could resurface as violence is rising in the southeast of the country.

Last month, gunmen attacked a convoy of workers involved in Shell’s Assa North gas development project in Imo State, causing fatalities. Shell shut down the gas plant and other facilities in the vicinity following the incident.

According to a Platts report, Nigeria has the capacity to produce around 2.2 million-2.3 million barrels per day of crude and condensate, but production has averaged only around 1.62 million barrels per day for the first seven months of 2021.

Key crudes such as Bonny Light, Escravos, Forcados, and Qua Iboe have all faced production issues due to operational and technical issues.

According to the report, the latest rise in security threats would impact the Nigerian oil industry, especially in the area of production costs, something the country is trying to reduce to $10 per barrel, as companies will need to spend more on protection for workers and facilities.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has said the increasing attacks by bandits and other criminal activities, including kidnapping for ransoms in the oil hubs of Port Harcourt and Warri, have also stifled foreign direct investment into the Nigerian economy.

“We are finding it increasingly difficult to put our members in check as their restiveness regarding the growth and rise of insecurity across the country is getting out of control and the accompanying consequences are unimaginable,” the oil union said in a statement on August 27.

In addition, some of Nigeria’s main oil infrastructure has also faced persistent sabotage in the past few months including pipeline vandalism.

Nigeria has a long history of security issues impacting its oil industry. Militants operating in the Niger Delta ramped up attacks on oil fields and terminals in 2016, pushing production to a low of 1.4 million barrels per day.

In response, President Muhammadu Buhari retained a presidential amnesty program for militants to maintain peace in the Niger Delta which was first instituted in 2009.

The initial introduction of the program back in 2009 helped rein in activities that had caused extensive damage but there is now a concern that some groups may opt-out of the amnesty leading to more attacks on oil infrastructure.

Economy

Worries Intensify as Attacks in Nigeria Spread Southwards

Published

4 hours ago

16/02/2026

Adedapo Adesanya

By Adedapo Adesanya

Nigeria’s security crisis is spreading southwards as jihadists and armed gangs step up attacks in parts of the country largely untouched by decades of violence.

Over the last few months, there had been an alarming increase in violence, especially in relatively low-conflict areas. The Nigerian government has long been fighting an array of jihadist groups, including Boko Haram and IS-linked factions, but largely in the North-East. However, some new groups are gaining footholds, spreading south.

Earlier this month, 162 people were killed in an attack in Kwara State. The gruesome murder in the central part of the country last week highlighted the fundamental shift in the nature and geography of the insecurity crisis facing Africa’s most populous nation.

The increased attacks come even as President Bola Tinubu declared a security emergency and the United States deployed troops to the nation, as part of cooperation efforts to tackle insecurity.

This weekend, at least 32 people were killed after gunmen launched simultaneous attacks on three separate communities in Niger State, which has the Federal Capital Territory (FCT) to the southeast and Kwara State to its southwest. The communities of Tunga-Makeri, Konkoso, and Pissa, all located in the Borgu area of Niger state, were targeted in early raids on Saturday, February 14.

According to Niger State police spokesman, Mr Wasiu Abiodun, six people died in the assault on Tunga-Makeri, adding that it was not clear how many people had been abducted.

Mr Abiodun said that Konkoso was also attacked, but gave no other details other than that security teams have been sent to the scene and a rescue operation for those who were abducted was under way.

A resident, Mr Abdullahi Adamu, from Konkoso, reportedly said 26 people were killed in the attack there, describing how the attackers were “operating freely without the presence of any security”.

The attack on Tungan Makeri reportedly began on Friday, when over 200 armed men stormed the village, shooting sporadically and setting several houses on fire.

There were also reports that an Air Force aircraft was sighted around Tungan Makeri after the initial attack, a development some residents believe forced the bandits to withdraw from the village.

Economy

Stock Market Gains N2.367trn as All-Share Index Rises 2.06%

Published

2 days ago

14/02/2026

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited appreciated by 2.06 per cent on Friday, amid a rush for local equities due to encouraging earnings of companies for 2025.

Business Post reports that the buying pressure was across the key sectors of Customs Street yesterday, with the banking index growing by 2.49 per cent. The energy industry appreciated by 2.05 per cent, the consumer goods counter grew by 0.78 per cent, the insurance space improved by 0.64 per cent, and the industrial goods sector expanded by 0.44 per cent.

At the close of trades, the market capitalisation went up by N2.367 trillion to N117.027 trillion from N114.660 trillion, and the All-Share Index (ASI) gained 3,687.45 points to close at 182,313.08 points compared with the previous day’s 178,625.63 points.

Cornerstone Insurance, Infinity Trust, and Nestle Nigeria appreciated by 10.00 per cent each to sell at N6.38, N9.90 and N2,662.00, respectively, while Okomu Oil rose by 9.99 per cent to N1,327.00, with RT Briscoe up by 9.97 per cent to N17.42.

Conversely, SAHCO depleted by 10.00 per cent to M135.00, Guinness Nigeria lost 9.97 per cent to trade at N103.00, Omatek shrank by 9.39 per cent to N2.99, NPF Microfinance Bank decreased by 6.51 per cent to N5.60, and eTranzact slipped by 6.33 per cent to N10.80.

A total of 53 stocks ended in the green side and 33 stocks finished in the red side, representing a positive market breadth index and strong investor sentiment.

Data showed that 936.4 million shares valued at N52.7 billion were transacted in 50,068 deals on Friday versus the 698.3 million shares worth N28.438 billion traded in 50,886 deals on Thursday, indicating a rise in the trading volume and value by 34.10 per cent, and 85.56 per cent apiece, and a slip in the number of deals by 1.61 per cent.

First Holdco closed the session as the most active equity with 106.3 million units worth N5.1 billion, Zenith Bank transacted 72.6 million units valued at N5.7 billion, United Capital traded 45.4 million units for N963.2 million, GTCO sold 45.0 million units worth N4.9 billion, and Fidelity Bank exchanged 31.4 million units valued at N639.0 million.

Economy

OTC Securities Exchange Extends Positive Run by 0.86%

Published

2 days ago

14/02/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange rose further by 0.86 per cent on Friday, February 13, with the market capitalisation growing by N20.27 billion to N2.378 trillion from the previous session’s N2.357 trillion, and the NASD Unlisted Security Index (NSI) rising by 33.87 points to 3,974.77 points from the 3,940.90 points it ended a day earlier.

The improvement recorded by the bourse yesterday was influenced by six price gainers led by Okitipupa Plc, which went up by N18.00 to sell at N260.00 per share compared with the previous day’s N242.00 per share.

Further, Central Securities Clearing System (CSCS) Plc added N3.39 to quote at N80.47 per unit versus N77.08 per unit, IPWA Plc chalked by 31 Kobo to finish at N3.44 per share versus N3.13 per share, Lagos Building Investment Company (LBIC) Plc gained 31 Kobo to settle at N3.41 per unit versus N3.10 per unit, Afriland Properties Plc appreciated by 31 Kobo to N16.51 per share from N16.20 per share, and Food Concepts Plc increased by 8 Kobo to N3.28 per unit from N3.20 per unit.

There were three price losers, led by MRS Oil Plc, which weakened by N10.00 to close at N170.00 per share compared with Thursday’s price of N200.00 per share, FrieslandCampina Wamco Nigeria Plc lost N2.59 to sell for N65.52 per unit compared with the preceding session’s N68.10 per unit, and Geo-Fluids Plc depreciated by 33 Kobo to N3.30 per share from N3.63 per share.

During the session, the volume of securities transacted by the market participants went up by 9.5 per cent to 9.4 million units from 8.6 million units, the value increased by 1,206.5 per cent to N703.6 million from N53.9 million, and the number of deals grew by 7.1 per cent to 45 deals from 42 deals.

CSCS Plc remained the most traded stock by value (year-to-date) with 27.1 million units exchanged for N1.5 billion, followed by Resourcery Plc with 1.05 billion units traded at N408.6 million, and Geo-Fluids Plc with 29.9 million units valued at N152.6 million.

Resourcery Plc ended the day as the most traded stock by volume (year-to-date) with 1.05 billion units sold for N408.6 million, followed by Geo-Fluids Plc with 29.9 million worth N152.6 million, and CSCS Plc with 27.1 million units sold for N1.5 billion.