Economy

We Don’t Sell Crude Oil from Hotel Rooms—NNPC

Published

8 years ago

28/08/2017

By Modupe Gbadeyanka

Few days after raising a red flag on the fraudulent activities of crude oil scammers, the Nigerian National Petroleum Corporation (NNPC) has provided further insights into the modus operandi of the conmen who dupe unsuspecting would-be crude oil buyers.

Speaking on the unwholesome activities of the scammers, NNPC’s Group General Manager, Crude Oil Marketing Division (COMD), Mr Mele Kyari, said the corporation “doesn’t sell crude oil from hotel rooms as done by scammers”.

Shedding more light on the scammers’ modus operandi, Mr Kyari said they usually lured their unsuspecting victims with higher discount offers on cargoes, offers of non-OPEC crude specification, crude allocation, presentation of crude oil sale letters as well as conducting business from hotels.

“Some of them even go to the extent of luring their victims to hotels to transact these fraudulent crude oil contracts. The entire public should know that NNPC doesn’t do business of crude oil marketing from hotel rooms,” Mr Kyari stated.

He reiterated that there was only one way of buying crude oil from the NNPC which was through advertisement for the selection of customers who were screened for compliance with the corporation’s expectations and standards.

“There are very high standards we have set and if you don’t meet them, you cannot be our customer. And once you become our customer, we sign a single annual contract with you”, Mr Kyari added.

He observed that the crude contracts were typically 30,000 to 32,000 bpd which accumulated into a standard cargo size of 950,000bpd monthly and not 2 to 3 million bpd contracts as peddled by the scammers.

Mr Kyari observed that for the crude oil sale processes to be completed, the customer had to show that he had the capability to sell the cargo to the market and that the Corporation could get its money back.

According to him, today, the entire process of crude oil marketing had become seamless and real-time with electronic platforms such as Platts and Argus acting as reporting agencies for global crude trading programmes.

“The beauty of selling crude oil is that the moment we sell the crude oil cargo to you, the entire world knows that cargo X is with Mr. Y. So you see, you don’t have to scavenge for who buys your crude.” he said.

He informed would-be buyers not to be gullible as the scammers always cashed in on would-be buyers gullibility to swindle them, adding that those who fall for the scammers were either not in the business or were themselves fraudulent.

While explaining that the good thing in all these unwholesome development was the fact that NNPC documents had not leaked, Kyari stressed that nearly 98% of all the documents involved were fake documents produced by the scammers.

He said in line with FG’s anti-corruption crusade and NNPC Management’s commitment towards promoting transparency and accountability, COMD of NNPC had been collaborating with relevant security agencies such as the Nigerian Police Force (NPF), the Department of State Services (DSS) and the Economic & Financial Crimes Commission (EFCC) to checkmate these fraudsters.

“Already, this massive collaboration with security agencies is paying up. Some arrests have been made while on our part, we assist the security agencies by providing evidence in the course of their prosecution,” he noted.

He called on the general public to always alert the Corporation on suspected crude oil scammers by reporting them via the e-mail: [email protected].

He later reiterated the success of the Corporation’s flagship crude oil for product exchange scheme also known as Direct Sale Direct Purchase Programme (DSDP) which not only ensured transparency, but has also led to the stability of products supply across the country.

Economy

Naira Suffers First Loss in 2026 at Official Market, Trades N1,419/$1

Published

6 minutes ago

09/01/2026

Adedapo Adesanya

By Adedapo Adesanya

After recent gains, the Naira recorded its first loss against the US Dollar in 2026 on Thursday, January 8, in the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Yesterday, at the official market, the Nigerian currency tumbled against the greenback by N1.46 or 0.11 per cent to sell for N1,419.72/$1, in contrast to Tuesday’s closing price of N1,418.26/$1.

However, the local currency further appreciated against the Pound Sterling in the same market segment by N5.28 to close at N1,908.38/£1 versus the preceding session’s N1,913.66/£1, but lost 14 Kobo against the Euro to finish at N1,657.66/€1 compared with the midweek session’s closing price of N1,657.52/€1.

In the same vein, the Naira weakened against its American counterpart in the parallel market by N15 during the session to quote at N1,485/$1 compared with the previous day’s N1,470/$1 and declined by N3 at the GTBank forex desk to trade at N1,428/$1 versus the previous value of N1,425/$1.

The domestic currency has remained relatively stable in the spot market in tandem with projections by analysts, including PwC, which expects the Naira to remain broadly stable through 2026, underpinned by ongoing reforms by the Central Bank of Nigeria (CBN) and improved portfolio inflows

However, policymakers have been told to wary of weak oil prices or production disruptions reducing FX inflows, deepening FX liquidity crisis, and forced currency devaluation, which could return prices to weaker levels.

According to CardinalStone, pre-election worries, an unanticipated slump in exports, especially non-oil, and the ongoing global trend of tightening border controls may reduce Nigerian exports, and have a ripple effect on the Naira’s strength.

As for the cryptocurrency market, it was bullish as traders await the US Supreme Court ruling on President Donald Trump’s tariffs.

The market is pricing in to see if the US Supreme Court explicitly upholds Trump’s use of emergency powers under the International Emergency Economic Powers Act to impose tariffs. Depending on the outcome, this could potentially push long-term US yields higher and tighten global liquidity, a mix that has historically pressured crypto, which is sensitive to quick changes in both.

Solana (SOL) appreciated by 4.2 per cent to $140.49, Binance Coin (BNB) gained 1.8 per cent to sell for $895.46, Cardano (ADA) increased by 1.8 per cent to $0.3989, and Ripple (XRP) soared by 1.6 per cent to $2.14.

Further, Bitcoin (BTC) and Litecoin (LTC) appreciated by 1.3 per cent each to $91,017.24 and $81.73 apiece, Ethereum (ETH) grew by 0.4 per cent to $3,119.22, and Dogecoin (DOGE) expanded by 0.2 per cent to $0.1429, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) finished flat at $1.00 each.

Economy

NGX Manages 0.13% Surge Amid Sell-Offs in Financial Services, Energy Stocks

Published

25 minutes ago

09/01/2026

Dipo Olowookere

By Dipo Olowookere

It was another trading session for the Nigerian Exchange (NGX) Limited in the green territory as it further improved by 0.13 per cent at the close of business.

The bourse managed to stay up despite profit-taking in the financial services and the energy sectors yesterday.

According to data, the insurance counter depreciated by 3.07 per cent, the banking industry went down by 0.40 per cent, and the energy space shrank by 0.11 per cent.

However, the commodity index increased by 0.65 per cent, the consumer goods landscape went up by 0.55 per cent, and the industrial goods sector closed higher by 0.11 per cent.

Consequently, the All-Share Index (ASI) soared by 214.80 points to 160,806.56 points from 160,591.76 points and the market capitalisation advanced by N137 billion to N102.822 trillion from N102.685 trillion.

Investor sentiment was weak on Thursday as Customs Street ended with 32 price gainers and 41 price losers, indicating a negative market breadth index.

Neimeth chalked up 10.00 per cent to trade at N7.70, May and Baker increased by 9.85 per cent to N26.20, eTranzact gained 9.64 per cent to finish at N13.65, Multiverse jumped by 9.51 per cent to N21.30, and Mecure Industries grew by 9.42 per cent to N74.95.

On the flip side, International Energy Insurance decreased by 9.90 per cent to N2.73, ABC Transport tumbled by 9.88 per cent to N4.47, Austin Laz crashed by 9.84 per cent to N4.58, Conoil stumbled by 9.72 per cent to N169.00, and Veritas Kapital dropped 9.69 per cent to N1.77.

The busiest stock was Chams with 60.5 million units worth N236.8 million, Linkage Assurance traded 54.1 million units valued at N97.6 million, Tantalizers transacted 45.0 million units for N129.7 million, Access Holdings sold 35.5 million units worth N815.4 million, and Champion Breweries exchanged 31.2 million units valued at N519.1 million.

When the closing gong was struck, market participants traded 645.1 million units for N16.5 billion in 44,410 deals compared with the 1.4 billion units valued at N20.7 billion transacted in 49,286 deals a day earlier, showing a fall in the trading volume, value, and number of deals by 53.92 per cent, 20.29 per cent, and 9.89 per cent apiece.

Economy

Crude Oil Soars 3% on Geopolitical Developments in Key Markets

Published

1 hour ago

09/01/2026

Adedapo Adesanya

By Adedapo Adesanya

Crude oil went up by over 3 per cent on Thursday as investors assessed developments in Venezuela and worried about supplies from Russia, Iraq and Iran.

Brent futures rose by $2.03 or 3.4 per cent to $61.99 per barrel, and the United States West Texas Intermediate (WTI) futures gained $1.77 or 3.2 per cent to trade at $57.76 per barrel.

The market is bracing for outcome of visits to Venezuela next week that will include representatives of the US and European oil companies, following the announcement of a $2 billion oil deal and the supply of goods to the South American country by the United States.

America seized two Venezuela-linked oil tankers in the Atlantic Ocean on Wednesday, with one sailing under Russia’s flag, as part of President Donald Trump’s aggressive push to dictate oil flows in the Americas.

After capturing Venezuelan President Nicolas Maduro in a military raid a few days ago, the US has been escalating its blockade of vessels that are under sanctions and traveling to and from the South American country, a member of the Organization of the Petroleum Exporting Countries (OPEC).

Meanwhile, the risk of a major supply shock related to Iran, another OPEC member, is climbing as protests swept the country, leading to a nationwide internet blackout.

President Trump’s earlier threat to come to the rescue of any peaceful protesters killed by the Iranian regime adds to concerns in oil markets that these protests could result in direct action by the US in Iran.

Iran’s President Masoud Pezeshkian warned domestic suppliers against hoarding or overpricing goods, as the country rolled out high-stakes subsidy reforms during nationwide protests against economic hardship.

Developments in Iraq, a member of OPEC, added to the broader geopolitical support for crude, as the cabinet approved plans to nationalize operations at the giant West Qurna 2 oilfield to avert potential disruptions linked to U.S. sanctions on Russian stakeholder Lukoil.

Iraq and Iran are among the biggest oil producers in OPEC behind Saudi Arabia.

A Russia-bound oil tanker was attacked by a drone in the Black Sea, prompting a request for Turkish Coast Guard assistance and a course diversion. While no party has claimed responsibility for the attack, it does highlight further instability in the region and a broader threat to oil flows.

Ukrainian President Volodymyr Zelenskiy said on Thursday the text of a bilateral security guarantee between Ukraine and the US was ready to be finalised with Mr Trump.