Economy

BPE Denies Knowledge of Agip/Oando Plans to Takeover Port Harcourt Refinery

Published

9 years ago

24/05/2017

By Chineme Okafor

Some days ago, Oando Plc claimed it was planning to rehabilitate and operate the 210,000 barrels per day (bpd) Port Harcourt Refinery, but the issue has generated controversies.

A report by ThisDay claimed the Bureau of Public Enterprises (BPE) was ignorant of the proposed rehabilitation and operation under a concession arrangement of the 210,000 barrels per day (bpd) Port Harcourt Refinery by oil firms – Nigeria Agip Oil Company (NAOC) and Oando Plc.

It learnt in Abuja that despite the BPE’s listing of the refinery along with Warri and Kaduna refineries on its privatisation schedule, it has however not been involved in plans by the federal government to concession the Port Harcourt refinery to Agip and Oando on a repair, operate and maintain basis, a transaction oil and gas business experts have faulted.

One of the top sources within the privatisation agency confirmed to THISDAY that the Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation (NNPC) have carried on the refinery concession plan without its involvement. He explained that the agency was in the dark on the concession arrangement, thus claiming that negotiations with the firms have been without it.

The sources stated that even though the National Council on Privatisation (NCP) which is statutorily responsible for signing off on the privatisation and concession of such national assets has not been constituted by the government, the BPE should have been involved in the refinery concession which the Minister of State for Petroleum Resources, Mr Ibe Kachikwu, disclosed would be concluded in September.

Mr Kachikwu had earlier in May stated in Houston that the government had got bids from investors to revamp the three refineries, and would make known the preferred offers by September, however, the Chief Executive Officer (CEO) of Oando, Mr Wale Tinubu, subsequently disclosed that his firm had been selected to takeover Port Harcourt refinery, thus raising questions about the transparency of the selection process and the overall transaction.

Similarly, experts who spoke to THISDAY on this stated that the process could be considered unlawful without the approval of the NCP. They also asked the ministry of petroleum resources and NNPC to show evidence of a transparent and competitive selection process from which Agip and Oando emerged as the best candidates to take over and repair the refinery.

One of the experts, Mr Dan Kunle, specifically queried the choice of Agip for Port Harcourt refinery, stating that Agip built the 125,000bpd Warri refinery and should have opted for it instead of Port Harcourt.

Mr Kunle said: “In 2015, I remember vividly the visit of the then GMD of NNPC which happens to be the minister of state now, Emmanuel Kachikwu, to Port Harcourt refinery, and he stated that they had spent $10 million to rebuild it and it was going to come on stream. What has happened, we need to know the truth.”

He alleged that: “The interest of ENI/Agip in Port Harcourt refinery is a manifestation of the long vested interest of Oando in the refinery because they put in bids in the past for it but failed.

“Agip has no technical record in Port Harcourt refinery, they built the Warri refinery and the propane plant in Warri refinery was built by Technimont. I would have expected the minister to look at that history and tell Agip/Eni, that even though they have rights to bid for Port Harcourt, they should look at Warri where they already have a technical record.”

Speaking on the need for the approval of the NCP in such cases of assets’ concession, Kunle stated: “NCP is a life act, and I am surprised that they have not constituted it because they have the mandate to privatise the assets.

“The NCP has to become conscious and wrestle the country from the politics of the petroleum ministry over the refineries. The ministry cannot sell or concession the refineries without the NCP represented by the BPE, and Infrastructure Concession Regulatory Commission (ICRC). Besides, those companies are already scheduled in the privatisation timeline.”

“If you are doing selective bidding, what makes Eni/Agip to qualify because it is Warri that they should be qualified for? What is the basis, how did they come about the people, where is the advert and prequalification criteria? They must be subjected to ethical corporate governance. This transaction has to be open and clear, otherwise nobody can take it over,” he added.

Economy

NASD Exchange Rises 1.22% on Sustained Bargain-Hunting

Published

13 hours ago

28/02/2026

Adedapo Adesanya

By Adedapo Adesanya

Strong appetite for unlisted stocks further raised the NASD Over-the-Counter (OTC) Securities Exchange by 1.22 per cent on Friday, February 27.

Data revealed that the NASD Unlisted Security Index (NSI) was up by 49.41 points to 4,083.87 points from 4,034.46 points, and lifted the market capitalisation by N19.56 billion to N2.433 trillion from N2.413 trillion.

The volume of securities bought and sold by investors increased by 243.0 per cent to 4.5 million units from 1.3 million units, and the number of deals grew by 15.8 per cent to 44 deals from 38 deals, while the value of securities went down by 19.7 per cent to N82.5 million from N102.8 million.

Central Securities Clearing System (CSCS) Plc ended the session as the most active stock by value on a year-to-date basis with 35.0 million units valued at N2.1 billion, followed by Okitipupa Plc with 6.3 million units worth N1.1 billion, and Geo-Fluids Plc with 122.8 million units transacted for N480.4 million.

Resourcery Plc ended the day as the most traded stock by volume on a year-to-date basis with 1.05 billion units sold for N408.7 million, followed by Geo-Fluids Plc with 122.8 million units valued at N480.4 million, and CSCS Plc with 35.0 million units traded for N2.1 billion.

There were six price gainers yesterday led by FrieslandCampina Wamco Nigeria Plc, which added N9.02 to close at N111.46 per unui compared with the previous day’s N102.44 per unit, Nipco Plc appreciated by N6.00 to N284.00 per share from N278.00 per share, CSCS Plc recouped N1.87 to sell at N70.12 per unit versus Thursday’s value of N68.25 per unit, Geo-Fluids Plc improved by 17 Kobo to close at N3.18 per share versus N3.01 per share, Industrial and General Insurance (IGI) Plc advanced by 5 Kobo to sell at N50 Kobo per unit versus the preceding day’s 45 Kobo per unit, and Acorn Petroleum Plc chalked up 2 Kobo to settle at N1.34 per share, in contrast to the previous day’s N1.32 per share.

Economy

FX Liquidity Crunch Sinks Naira to N1,363/$1 at NAFEX, N1,370/$1 at Black Market

Published

13 hours ago

28/02/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira performed poorly against the United States Dollar in the different segments of the foreign exchange (FX) market on February 27, closing the week without a gain.

In the black market, the domestic currency weakened against the Dollar yesterday by N5 to close at N1,370/$1 compared with Thursday’s closing price of N1,365/$1, and at the GT Bank forex desk, it lost N2 to sell N1,369/$1 versus the N1,367/$1 it was sold a day earlier.

Yesterday, the Nigerian Naira lost N3.75 or 0.26 per cent against the greenback at the Nigerian Autonomous Foreign Exchange Market (NAFEX) to trade at N1,363.39/$1 compared with the previous day’s N1,359.82/$1.

Also, the Naira depreciated against the Euro at the official market during the session by N2.33 to quote at N1,609.22/€1 versus N1,606.89/€1, and appreciated against the Pound Sterling by N6.74 to settle at N1,836.49/£1 compared with the preceding session’s N1,843.23/£1.

The Naira’s latest depreciation occurred as FX demand continued to outpace available supply, intensifying pressure in the market.

In response to the negative momentum, the Central Bank of Nigeria (CBN) intervened by selling Dollars to banks and other authorised dealers in an effort to stabilise the local currency. The move came barely a week after the apex bank had purchased about $190 million from the foreign exchange market to temper the Naira’s rally.

Specifically, the CBN injected $200 million into the official market between Tuesday and Wednesday through an intervention call. However, the liquidity support proved insufficient to reverse the currency’s downward trend.

Meanwhile, the cryptocurrency market declined on Friday, with Solana (SOL) down by 10.4 per cent to $78.60, as Dogecoin (DOGE) decreased by 9.5 per cent to $0.0982.

Further, Cardano (ADA) slumped 8.9 per cent to $0.2647, Ethereum (ETH) slipped by 8.6 per cent to $1,859.10, Ripple (XRP) shrank by 8.2 per cent to $1.30, Litecoin (LTC) lost 1.4 per cent to close at $52.39, Bitcoin (BTC) slid 5.9 per cent to $63,686.39, and Binance Coin (BNB) went down by 4.9 per cent to $596.64, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.

Economy

Oil Prices Climb on Geopolitical Anxiety

Published

14 hours ago

28/02/2026

Adedapo Adesanya

By Adedapo Adesanya

Oil prices rose about 2 per cent on Friday, with traders bracing for supply disruptions as nuclear talks between the United States and Iran were without an agreement.

Brent crude futures settled at $72.48 a barrel after chalking up $1.73 or 2.45 per cent, while US West Texas Intermediate crude futures finished at $67.02 a barrel, up $1.81 or 2.78 per cent.

The two sides agreed to extend indirect negotiations into next week, but traders grew sceptical that an agreement between US President Donald Trump’s administration and Iran was possible.

The US and Iran held indirect talks in Geneva on Thursday after Mr Trump ordered a military buildup in the region.

Oil prices gained during the talks, on media reports indicating that discussions had stalled over U.S. insistence on zero enrichment of uranium by Iran. However, prices eased after the mediator from Oman said the two sides had made progress.

They plan to resume negotiations with technical-level discussions scheduled next week in Vienna, Omani Foreign Minister Sayyid Badr Albusaidi said on X.

Market analysts noted that geopolitical risk premiums of $8 to $10 a barrel have been built into oil prices on fears that a conflict will disrupt Middle East supply through the Strait of Hormuz, where about 20 per cent of global oil supply passes.

To cushion the impact from a possible strike, one of the world’s largest oil producers, the United Arab Emirates (UAE), is set to export more of its flagship Murban crude in April, while Saudi Arabia said it would also increase oil production.

Additionally, Saudi Arabia may raise its April crude price to Asia for the first time in five months due to higher demand from India to replace Russian supplies, potentially raising it by about $1 a barrel.

Meanwhile, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) is likely to consider raising oil output by 137,000 barrels per day for April at its March 1 meeting, after suspending production increases in the first quarter.

The resumption of output increases after a three-month pause would allow Saudi Arabia and the UAE to regain market share at a time when other OPEC+ members, such as Russia and Iran, contend with Western sanctions while Kazakhstan recovers from a series of oil production setbacks.

Eight OPEC+ producers – Saudi Arabia, Russia, the United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria and Oman will meet at the meeting on Sunday.