Economy
Crude Oil Prices Soar as Pressure Eases
By Adedapo Adesanya
After back-to-back losses, prices of crude oil benchmarks steadied on Thursday after erasing the impact of a surprise cut to production targets by the Organisation of the Petroleum Exporting Countries (OPEC).
But Brent crude edged up 18 cents or 0.23 per cent to $77.87 a barrel, while the US West Texas Intermediate (WTI) crude rose 12 cents or 0.16 per cent to $74.42 per barrel.
Recession fears had gripped the market, leading to heavy losses that saw the international benchmark, Brent crude, fall below $80 per barrel.
The market held on to comment by Russian Deputy Prime Alexander Novak, who described oil markets on Thursday as balanced and hinted no more output cuts were needed.
He said the OPEC+ group saw no need for further output cuts despite lower-than-expected Chinese demand but that the organisation can always adjust policy if necessary.
He said Russia reached its targeted output this month after announcing cuts of 500,000 barrels per day, or 5 per cent of its oil production, until the year-end.
Mr Novak said OPEC+ did not expect oil shortages on the global market after the production cuts, even though the International Energy Agency (IEA) said they risked exacerbating a supply deficit expected in the second half of the year.
IEA had warned that OPEC should be careful not to cut too much production lest they jack up prices too high.
The IEA’s warning was for the cartel not to cut production too much, lest crude oil prices rise to the point where it stifles economic growth and pressures consumers.
“The global economy is in a very fragile stage,” Mr Fatih Birol, the head of IEA, adding that higher oil prices were “the last thing that we want.”
OPEC did not take the warning lightly, with its Secretary General, Mr Haitham Al Ghais, saying that IEA should be “very careful about further undermining” oil industry investments, which producing countries say are vital for economic growth and depend on robust oil prices.
“The IEA knows very well that there is a confluence of factors that impact markets,” MR Al Ghais said on Thursday, “The knock-on effects of Covid-19, monetary policies, stock movements, algorithm trading, commodity trading advisors and SPR releases (coordinated or uncoordinated), geopolitics, to name a few.”
“If anything will lead to future volatility, it is the IEA’s repeated calls to stop investing in oil, knowing that all data-driven outlooks envisage the need for more of this precious commodity to fuel global economic growth and prosperity in the decades to come, especially in the developing world.”
Pressure came as data on Thursday showed US economic growth slowed by more than expected in the first quarter, although jobless claims fell in the week ending April 22.
US GDP grew by 1.1 per cent for the three months ending in March, which represents a slowdown from 2.6 per cent growth in the fourth quarter of 2022 and 3.2 per cent in the third quarter of last year.
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.
