Economy
Brace up for Change in Oil & Gas Sector—Baru
**Urges Investors to Set up Refinery in A/Ibom
By Dipo Olowookere
Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mr Maikanti Kacalla Baru, has engaged investors on the need to establish a refinery in Akwa Ibom State.
Speaking at a two-day PENGASSAN Triennial Retreat/Synergy workshop held in Uyo, Akwa-Ibom State, Mr Baru said the state was well-positioned geographically to have a refinery.
According to him, “Investors have been coming to us and I have seen one that is quite promising. It is in this light that I encouraged these investors to come and see the state government and discuss.”
He explained that although the preferred location of the investors was not Akwa Ibom State, but he had convinced them to consider establishing the refinery there, to leverage, especially on the state’s deep coastline.
The GMD called on the Akwa Ibom State government to explore partnership opportunities provided by investors towards establishing the refinery in the state.
Speaking further at the opening of the two-day event in Uyo, Mr Baru called on industry players to brace up for change in the sector.
He stressed that the current state of the international energy market, the urgent need to rehabilitate the nation’s refineries as well as the Petroleum Industry (Governance) Bill currently being considered by the National Assembly, were dire challenges, necessitating that the industry charts a new course
Mr Baru emphasized that navigating these challenges successfully required strong, purposeful and focused leadership from stakeholders in an industry where changing regulatory and macroeconomic realities are imminent.
He used the opportunity of the event to commend the Petroleum & Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigerian Union of Petroleum & Natural Gas Workers (NUPENG) for their role in ensuring harmony in the nation’s Oil and Gas Industry, saying this has helped stabilize petroleum products supply across the country.
“I would like to appreciate the support given to us by the two unions, PENGASSAN and NUPENG. You have over the years exhibited high level of maturity and partnership.
“This is evident in your pragmatic approach to issues, your support during difficult times as well as strategic engagement with industry stakeholders which has not only guaranteed industrial peace and harmony, but has also ensured the stable supply of petroleum products across the country,” Mr Baru stated.
He assured that NNPC management would continue to accord priority to staff welfare and ensure that staff are trained to face the current realities of the industry.
The GMD, who congratulated PENGASSAN for a successful delegates’ conference, also urged them to chart a new course for the Union and the Oil and Gas Industry that is hinged on greater collaboration for improved productivity and innovative ideas towards growth and development.
Akwa Ibom State Governor, Mr Udom Emmanuel, said the state government had been working hard towards attracting private investors to build a refinery in the state.
Mr Emmanuel, who was represented at the occasion by one of his top special advisers, Pastor Umoh Bassey, urged oil companies in the country to deploy more resources to sustainable Corporate Social Responsibility (CSR) projects in their host communities, as he further extolled the strategic role of PENGASSAN in moving the nation’s economy forward.
Mr Emmanuel challenged the industry unions to partner with their employers in the area of capacity building for the betterment of the industry.
In his welcome address, the National President of PENGASSAN, Comrade Francis Johnson, pledged the oil workers’ union commitment to remain “true partners of progress in the nation’s Oil & Gas Industry.”
The two-day retreat, which has as its theme “Leadership and Team Building for Change in Trade Union Administration“, attracted PENGASSAN members from various NNPC locations nationwide.
It is expected to provide a platform for forging relationships and strategies for effective collaboration between the unions and other partners towards repositioning the industry for brighter future.
By Adedapo Adesanya
Crude production under the collective Organisation of the Petroleum Exporting Countries (OPEC ) fell in May to its lowest level in at least 37 years as the blockade of Iran by the United States and disruptions in the Persian Gulf, continued to limit output.
According to a Bloomberg survey released on Friday, output from the organisation’s 11 current members, including Nigeria, dropped by 1.22 million barrels per day to 16.33 million barrels per day last month.
Iran accounted for more than half of the decline. The data excludes the United Arab Emirates (UAE), which departed the cartel last month after six decades of membership.
War between a US-Israeli alliance and Iran has reduced oil supplies from the Middle East, largely closing the Strait of Hormuz waterway. Saudi Arabia, Iraq, the UAE and Kuwait have been forced to cut crude production. Iranian shipments face additional pressure following a US blockade of its ports imposed in mid-April.
Iranian output fell by 710,000 barrels per day to a five-year low of 2.34 million barrels per day in May, the survey showed. Central Command reported that US forces have redirected 127 commercial vessels to enforce the blockade of all maritime traffic entering and exiting Iranian ports.
Kuwait recorded the second-largest decline last month, with production falling by 310,000 barrels per day to 490,000 barrels per day, less than one-fifth of pre-war levels. Saudi Arabia, the group’s leader, saw output decrease by 240,000 barrels per day to 6.57 million barrels per day.
The production reductions have not prevented OPEC and its allies from raising quotas over recent months, continuing a year-long process of restoring output halted several years ago.
This comes ahead of a meeting scheduled to be held on Sunday, June 7, where a sub-group of seven members is expected to increase targets by 188,000 barrels again in July. The session is one of four online meetings OPEC and its partners plan to hold that day.
Delegates indicated the alliance has plans for two additional monthly quota increases in August and September. UAE output rose by 300,000 barrels per day to 2.44 million barrels per day in May, according to the survey.
By Aduragbemi Omiyale
The 2025 third quarter Budget Implementation Report from the Budget Office of the Federation has shown that the federal government exceeded the funds allocation for repayment of debts for the first nine months of the fiscal year by about 18 per cent.
In a report by Punch, the sum of N10.74 trillion was budgeted for debt servicing between January and September 2025, but the government used N12.63 trillion for the purpose, N1.90 trillion or 17.65 per cent more than the allocation for the year.
The funds were spent on domestic debts, foreign debts and sinking fund by the central government in nine months.
Business Post reports that for the whole year, the amount approved by the National Assembly and signed by President Bola Tinubu for debt repayments was N14.31 trillion.
Looking at the nine-month figures, domestic debt service gulped N6.23 trillion, exceeding its N5.39 trillion provision, while foreign debt service was N6.30 trillion versus the budget provision of N5.06 trillion.
According to the report, the figures indicated that 67.2 per cent of the federal government’s retained revenue of N18.63 trillion was spent on debt service in the first nine months of 2025. When the sinking fund is included, debt-related payments consumed about 67.8 per cent of revenue.
It was also observed that aggregate federal government revenue underperformed the budget by N12.03 trillion or 39.24 per cent, as actual revenue of N18.63 trillion fell short of the N30.67 trillion projected for the first three quarters.
In the third quarter alone, the government generated N7.70 trillion versus the quarterly target of N10.22 trillion as a result of persistent oil revenue shortfalls, despite stronger non-oil collections.
The debt burden also crowded out capital spending, as total capital expenditure was N3.10 trillion in the first nine months compared with the N17.58 trillion budgeted for the period, indicating that actual debt-related payments were more than four times capital expenditure.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a loss of 1.13 per cent on Thursday, June 4, shrinking the market capitalisation by N30.03 billion to N2.630 trillion from N2.660 trillion on Wednesday.
Similarly, this brought down the NASD Unlisted Security Index (NSI) by 50.19 points to 4,396.08 points from the 4,446.27 points recorded a day earlier.
The loss was influenced by the overpowering of the bulls by the bears, after the bourse closed with two price gainers and three price losers, led by FrieslandCampina Wamco Nigeria Plc, which slumped by N20.03 to sell at N190.38 per unit compared with midweek’s N210.41 per unit. Food Concepts Plc declined by 25 Kobo to trade at N2.50 per share versus the previous day’s N3.00 per share, and Acorn Petroleum Plc crumbled by 2 Kobo to end at N1.32 per unit, in contrast to the preceding session’s N1.34 per unit.
For the gainers, Central Securities Clearing System (CSCS) Plc added N2.93 to close at N78.34 per share compared with the previous price of N75.41 per share, and Afriland Properties Plc gained 80 Kobo to settle at N16.80 per unit versus N16.00 per unit.
There was a slip in the volume of transactions yesterday by 46.8 per cent to 280,714 units from 527,221 units, as the value of trades dropped 66.5 per cent to N21.8 million from the preceding session’s N64.2 million, and the number of deals fell by 8.7 per cent to 42 deals from 46 deals.
Great Nigeria Insurance (GNI) Plc ended the session as the most traded stock by value on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 64.7 million units traded for N4.4 billion.
GNI Plc also finished the day as the most traded stock by volume on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
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