Economy
Crude Oil Rebounds 4% Amid Supply Fears
By Adedapo Adesanya
Crude oil prices rebounded by more than 4 per cent on Friday on concerns that it could take weeks to dislodge a giant container ship blocking the Suez Canal, possibly squeezing supplies of crude and refined products.
At the market yesterday, the price of the international benchmark, the Brent crude futures, gained $2.56 or 4.13 per cent to trade at $64.51 per barrel, while the US benchmark, the West Texas Intermediate (WTI) crude futures, went up by 4.12 per cent or $2.41 to sell at $60.97 per barrel.
The premise has risen when a ship blocked the tankers passageway in the Suez Canal in Egypt. The pathway is frequently used by tankers transporting crude from the world’s top exporters in the Middle East to customers across Europe and the United States, and also by ships moving cargoes from the North Sea to Asia.
Of the 39.2 million barrels per day of total seaborne trade in crude in 2020, a total of 1.74 million barrels per day went through the Suez Canal. Also, 1.54 million barrels per day of refined oil products such as petroleum and diesel fuel flow through the canal, about 9 per cent of global seaborne product trade and with this further disruption, prices shut up again.
New tensions in the Middle East also provoked prices as Yemen’s Houthi rebels say they have launched drone and ballistic missile attacks on Saudi Arabia, targeting oil facilities owned by the state-run Saudi Aramco company and military sites.
The attack coincides with the sixth anniversary of the kingdom’s military intervention into the neighbouring country.
The Iran-aligned group on Friday said targeted Aramco facilities in Ras Tanura, Rabigh, Yanbu and Jizan.
Saudi Arabia has faced an increasing number of such assaults and this has not slowed since it offered a ceasefire deal to the Houthis on Monday.
A Saudi-led military coalition has been carrying out bombings in Yemen since March 26, 2015, in support of the internationally recognised government that was toppled by the Houthis.
Also, expectations that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will likely maintain their lower production also supported prices.
The producer group is scheduled to meet on April 1 to decide on May supplies, and analysts expect the producer group to broadly stick to current lower levels, as the outlook for demand has deteriorated due to new lockdowns in Europe.
Countries in Europe are renewing restrictions to curb the spread of COVID-19, which will likely reduce fuel demand from the region.
Germany, Europe’s largest economy, has seen its biggest increase in coronavirus cases since January. Others like France, Poland, Ukraine among others have also recorded surges and more lockdown measures will be instituted.
In parts of western India, authorities ordered people indoors as new infections hit the highest level in five months.
By Adedapo Adesanya
The federal government will soon issue a fresh N729 billion bond to settle verified legacy debts owed to electricity generation companies (GenCos), marking another major step in its plan to restore liquidity and financial stability across Nigeria’s power sector.
The bond forms the second tranche of the first phase of the N4 trillion Presidential Power Sector Debt Reduction Programme and follows the successful issuance of about N501 billion in January 2026. Combined, both issuances make up the N1.23 trillion Series 1 and Series 2 components of the Capital Market Multi-Instrument Issuance Programme.
The initiative is part of the federal government’s broader strategy to clear longstanding payment obligations in the Nigerian Electricity Supply Industry (NESI), strengthen investor confidence and improve the financial health of the electricity value chain.
The chief executive of the Nigerian Bulk Electricity Trading Plc (NBET), Mr Johnson Akinnawo, said the forthcoming bond issuance represents the first phase of the wider N4 trillion programme approved by President Bola Tinubu to address verified legacy liabilities in the power sector.
“The second issuance demonstrates the Federal Government’s commitment to resolving verified legacy obligations through a transparent, structured and market-based mechanism,” Mr Akinnawo said.
He explained that the January 2026 bond issuance reflected the government’s fiscally responsible approach to settling outstanding obligations owed to GenCos while improving liquidity within the electricity market and strengthening the long-term sustainability of the sector.
According to him, the new bond will further reinforce confidence among investors and provide much-needed financial relief to market participants whose operations have been constrained by accumulated debts.
“By improving liquidity across the electricity value chain, the programme will help strengthen the financial position of market participants, support new investment and promote sustainable electricity generation for the benefit of Nigerians,” he stated.
Mr Akinnawo recalled that the Federal Executive Council (FEC) approved the establishment of the N4 trillion Presidential Power Sector Debt Reduction Programme in 2025, with NBET designated as the sponsoring institution responsible for coordinating the settlement of verified legacy obligations across the electricity industry.
He explained that the debt reduction programme is being implemented through multiple issuances of debt instruments by NBET Finance Company Plc, a Special Purpose Vehicle (SPV) established specifically to execute the programme.
According to him, the debt instruments are backed by the full faith and credit of the federal government and supported by comprehensive risk mitigation measures designed to ensure successful implementation and attract investor participation.
“The programme has the full backing of the federal government and incorporates a robust suite of instruments designed to mitigate transaction risks and support successful execution,” the NBET boss said.
He noted that the issuance of the approximately N729 billion bond would represent another decisive milestone in resolving longstanding financial obligations that have weighed on the electricity market for years.
Mr Akinnawo added that clearing the outstanding debts would strengthen the financial position of electricity generation companies, improve liquidity throughout the power value chain and create a more stable, bankable and investment-friendly electricity market capable of supporting Nigeria’s economic growth and expanding reliable electricity supply.
By Modupe Gbadeyanka
The Nigeria Revenue Service (NRS) has announced the commencement of compliance monitoring activities for large taxpayers under the National e-Invoicing and Electronic Fiscal System (EFS) regime.
A statement issued on Monday and signed by the agency’s chairman, Mr Zacch Adedeji, advised corporate organisations that have yet to adopt this system to do so on or before July 31, 2026.
Recall that on February 17, 2026, NRS issued an implementation timeline for the mandatory adoption of the EFS, also known as the Merchant Buyer Solution (MBS), by large taxpayers.
They were asked to complete the process of onboarding, integration, testing, and commence invoice transmission to the NRS e-invoicing platform in accordance with the prescribed implementation framework.
The compliances include the completion of onboarding on the NRS MBS; the successful integration of taxpayer systems through approved Access Point Providers (APPs) and/or Systems Integrators (SIS); the completion of all required validation and testing activities; the active transmission of invoices to the NRS e-invoicing platform in line with approved standards and guidelines; and the receipt of only compliant e-invoices with a valid Invoice Reference Number (IRN) from suppliers.
Ahead of the deadline, the NRS has commenced compliance monitoring activities to assess the level of adherence to the e-invoicing mandate across the large taxpayer segment.
Those that have not completed the process have been asked to conclude all outstanding onboarding and integration activities and commence invoice transmission before the compliance deadline.
The organisation warned that failure to comply would trigger regulatory and enforcement actions in accordance with the provisions of the relevant tax laws and regulations.
By Aduragbemi Omiyale
Transcorp Power Plc suffered declines in its revenue and profit in the first half of this year; details of the company’s financial statements for the period ended June 30, 2026, have revealed.
The losses were attributed to recurring transmission line vandalism, which materially constrained the organisation’s ability to evacuate available generation capacity.
Business Post reports that earnings contracted in the first six months of this year to N181.97 billion from the N205.81 billion recorded in the same period of last year, while profit before tax moderated to N54.99 billion from N58.73 billion.
However, on a year-to-date basis, total assets went up to N619.02 billion from N563.48 billion in December 2025, as shareholders’ funds grew to N189.34 billion from N183.40 billion in FY 2025, while retained earnings soared to N140.90 billion from N123.41 billion in FY 2025.
It was observed that the increase in receivables and borrowings largely drove the expansion in the balance sheet during the period.
Also, the firm’s gross margin expanded to 38.4 per cent from 34.7 per cent in H1 2025, operating margin increased to 30.6 per cent from 28.5 per cent, and PBT margin rose to 30.2 per cent from 28.5 per cent, reflecting cost optimisation efforts and disciplined financial management, positioning the company to continue delivering sustainable value for shareholders.
“Our H1 2026 performance is a reflection of the resilience of our business operations despite significant sector-wide existential challenges.
“Regrettably, recurring transmission line vandalisation materially constrained our ability to evacuate available generation capacity.
“Nonetheless, we continued to deliver strong profitability, maintain operational efficiency, and strengthen our balance sheet,” the chief executive of Transcorp Power, Mr Peter Ikenga, stated.
“We remain committed to working with relevant stakeholders to put an end to transmission line vandalisation and to further improving operational performance, power generation supply reliability, and creating sustainable value for our shareholders. We remain highly confident that we will recover lost ground in H1 2026 and finish FY 2026 stronger than FY 2025,” he added.
