Economy

Crude Oil Trades at Nigeria’s 2020 Budget Benchmark, $57/Barrel

Published

6 years ago

19/02/2020

By Adedapo Adesanya

The Brent crude futures continued to trade around the $57 mark on Tuesday, giving Nigeria a hope of being able to get something from oil revenue to fund its 2020 budget as envisaged.

The price of the commodity had been facing south lately, no thanks to the deadly coronavirus, nicknamed CONVID-19 by the World Health Organisation (WHO), which originated from China, causing low demand for oil.

The bearish performance of the Brent Crude this year had seen it drop by more than $10. However, since last week, the commodity started a recovery that has brought it up to its present level.

On Tuesday night, the international crude benchmark, on which Nigeria’s oil is priced, rose by 0.06 percent equivalent to 3 cents to trade at $57.65 per barrel, while the US West Texas Intermediate (WTI) crude also moved up marginally by 0.03 percent or 2 cents to trade at $52.02 per barrel.

When the federal government prepared the 2020 budget last year, it was estimated that oil prices would average in the year at $57 per barrel on the hopes that the US-China trade deal agreement would push demand higher, causing rise in the price. Though at the beginning of this year, oil was rising, mainly due to an escalation of the US/Iran enmity. However, the coronavirus brought pains to oil.

The outbreak put pressure on Nigeria’s plan to raise N2.64 trillion in revenue from crude oil sales from output of two million barrels a day.

But the 2 million production estimate may be under threat as the Organisation of the Petroleum Exporting Countries (OPEC), which Nigeria belongs to, is planning to further ask its members to reduce what they produce so as to support prices.

Last year, Nigeria, which has previously been exempted from output cut due to unrest in the Niger Delta that affected its supply, agreed to a 57,000 barrels per day cut in order to support prices.

In January 2020, Nigeria pumped 1.776 million barrels of oil per day (bpd), according to OPEC’s secondary sources in its monthly report, and with already unsteady revenue, a further cut will mean less production.

There has been delay in implementing the latest proposal, which may have Nigeria further cut its production by another 57,000 barrels per day or less. Russia, a member of OPEC+, is yet to agree to the further 600,000 bpd being recommended by the group.

Oil ministers of OPEC and non-OPEC countries, known as OPEC+, will next meet in Vienna on March 6 as initially planned, it was revealed on Tuesday.

Mr Pavel Sorokin, Russian deputy energy minister, said the country’s energy ministry still expected the meeting to take place on March 6, as announced by OPEC in December.

He also stated that the country will make its stance on the cut know in a few days and market investors will be waiting because any possible positive outcome will help prices up, by extension – a good news for Nigeria.

Economy

NGX RegCo Delists ASO Savings from Stock Exchange

Published

3 hours ago

16/01/2026

Dipo Olowookere

By Dipo Olowookere

ASO Savings and Loans Plc has been delisted from the daily official list of the Nigerian Exchange (NGX) Limited.

This action followed the revocation of the operating licence of the company by the Central Bank of Nigeria (CBN) in December 2025.

In a circular on behalf of the NGX Regulation (NGX RegCo) by Ugochi Eke, it was disclosed that the effective date of the delisting is today, Friday, January 16, 2026.

Already, the company has been notified of this development, according to the notice obtained by Business Post.

Before ASO Savings lost its operating licence, it had failed to meet some post-listing requirements, a part of the disclosure from the NGX RegCo stated.

“The board of NGX Regulation Limited via its decision dated January 1, 2026, approved that the step below should be taken pursuant to the process for regulatory delisting of issuers.

“The board has approved the delisting of ASO Savings and Loans Plc from the Nigerian Exchange Limited’s daily official list effective January 16, 2026.

“ASO Savings is hereby notified of this enforcement action and is advised to direct any communication in respect of the foregoing to [email protected].

“NGX RegCo was engaging the listed entity, concerning its outstanding post-listing obligations. However, due to the revocation of the operating license of ASO Savings by its primary regulator, the Central Bank of Nigeria (CBN) effective December 16, 2025; NGX RegCo will delist the entity from the daily official list effective January 16, 2026.

“In view of the foregoing, NGX RegCo has proceeded with publishing the name of the Company in the national dailies.

“The company has been duly notified of this enforcement action, and this publication serves as notification to the investing public, particularly shareholders of the company and investors in the Nigerian capital market,” the statement read.

Economy

Lokpobiri Warns Oil License Bidders Against Hoarding

Published

4 hours ago

16/01/2026

Adedapo Adesanya

By Adedapo Adesanya

The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has issued a stern warning to oil and gas investors that petroleum licences in Nigeria are strictly for active development, not asset hoarding or speculative holding, declaring that operators must drill or risk losing their rights.

He made this admonition while delivering his message at the 2025 Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Licensing Bid Round Conference in Lagos, where he outlined the government’s hardline stance on asset utilisation and investor accountability.

“The oil assets in portfolio are not mere symbols or souvenirs,” Mr Lokpobiri said, adding that, “Holders of licences are obligated to drill, drill and drill for a shared benefit for the Government, Nigerians and the operators.”

He stressed that the administration is determined to ensure petroleum assets are translated into tangible economic value, noting that licences are time-bound rights granted solely for productive use.

“These assets belong to the Federal Government, and licences are granted strictly for a defined period for productive use, not passive ownership,” the minister said. “Our licensing framework is designed to eliminate speculation and ensure that only serious, capable investors participate.”

Mr Lokpobiri also issued a strong caution to bidders seeking to participate in the 2025 licensing round, urging them to fully understand the process and obligations before submitting bids.

“As prospects take part in this bid round, a clear understanding of the modus operandi guiding the process is essential,” he said, recalling previous bid rounds where some winners attempted to reverse their commitments.

“Past experiences have shown instances where some winning bidders sought refunds based on unmet expectations or perceived asset limitations,” Lokpobiri stated. “Such actions are untenable, as there is no provision in law for the refund of a bid already won.”

According to him, the conference was convened to remove ambiguity and protect the integrity of the licensing system, stressing that the government would strictly enforce all contractual obligations arising from the process.

“This conference serves to provide clarity upfront,” he said. “Participants must be fully informed, deliberate and committed, as the Government will uphold the sanctity of the process and enforce all obligations.”

The minister’s remarks reinforce the Federal Government’s broader push to accelerate upstream development, boost production and attract only technically and financially capable investors into Nigeria’s oil and gas sector, amid renewed licensing activity under the Petroleum Industry Act (PIA).

Economy

NGX Removes Embargo on Trading in Premier Paints Stocks After Four Years

Published

4 hours ago

16/01/2026

Dipo Olowookere

By Dipo Olowookere

The suspension earlier placed on Premier Paints Plc, preventing investors from buying and selling its stocks on the Nigerian Exchange (NGX) Limited, has now been lifted.

The embargo was removed on Wednesday, a notice from the stock exchange, seen by Business Post, disclosed.

Almost four years ago, Premier Paints was suspended from the bourse due to the inability of its board to file the company’s financial results.

The NGX had on July 1, 2022, informed the investing community it had prohibited the trading of the organisation’s securities “in line with the provisions of Rule 3.1: Rules for Filing of Accounts and Treatment of Default Filing (Default Filing Rules).

The part of the rules provides that: “If an Issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will; a) send to the issuer a second filing deficiency notification within two business days after the end of the cure period, b) suspend trading in the issuer’s securities, and c) notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.”

In the latest disclosure dated Wednesday, January 14, 2026, and signed by the Head of Issuer Regulation Department of the NGX, Mr Godstime Iwenekhai, it was revealed that Premier Paints has now done the needful.

“The company has now filed all outstanding financial statements to Nigerian Exchange Limited.

“In view of the company’s submission of its outstanding financial statements, and pursuant to Rule 3.3 of the Default Filing Rules, which states that; The suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided The exchange is satisfied that the accounts comply with all applicable rules of the exchange. The exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension, that the suspension has been lifted, trading license holders and the investing public are hereby notified that the suspension placed on trading on the shares of Premier Paints Plc was lifted (on) Wednesday, January 14, 2026,” the circular stated.