Economy
FG May Scrap Investment Tax Credit in PSC
By Modupe Gbadeyanka
Federal Government may remove investment tax credit in Production Sharing Contract (PSC) if the proposed key amendments to the Deep Offshore and Inland Basin Production Sharing Contract (PSC) Act are accepted.
On Thursday, the Nigerian National Petroleum Corporation (NNPC) noted that this would enable the Federal Government optimize the collection of royalties and other revenue in deep water oil production activities.
In a presentation to the Joint House of Representatives Committees on the amendment of the PSC Act and an Act to establish the National Oil and Gas Museum and Research Centre in Oloibiri, Mr Bello Rabiu, NNPC Chief Operating Officer, Upstream, noted that it was imperative to effect increment in royalties across all categories to increase government take.
“It is our opinion that the proposal to increase the royalty rate for terrains beyond 1000 metres, from zero per cent to three per cent, is commendable but it is necessary to also make corresponding adjustments in other categories,’’ he said.
Under the proposed PSC royalty regime, the calculation of what is due to government shall be based on production and price to guarantee fairness and balance between PSC contractors and Government.
For Royalty based on production within a tranche of 50,000 barrels of crude per day, the NNPC is proposing a royalty tranche rate of 8.0 percent.
Under a production tranche of 50,000 to 100,000 bpd, the royalty tranche rate would increase to 15.5 per cent and would escalate to 28.0 per cent once the production surpasses the 100,000 bpd mark.
To calculate royalty based on price, NNPC proposed that under a $50 per barrel price regime, the tranche incremental royalty rate shall be zero percent but the rate would increase to 0.30 percent if the price hovers between the $50 to $100 mark.
In the same vain, a price regime of $100-$130 would attract royalty of 0.20 percent while an increase of price between $130-$170 translate to royalty rate of 0.10 percent. A price regime of $170 and above would attract zero percent royalty payment.
The NNPC argued that in the alternative, the graduated royalty scale as provided in the Act should be removed while the Minister of Petroleum Resources should be empowered to intermittently set royalties payable for acreages located in deep offshore and inland basin production sharing contracts through regulations based on established economic parameters.
On the provision of investment tax credit, investment tax allowance and associated cost uplift and capital allowances to PSC contractors, the NNPC proposed an outright scrapping of the incentives.
“It is our opinion that these incentives have outlived their usefulness and are now impediments to the Federal Government’s revenue collection efforts. The use of such incentives can be terminated by an amendment of section 4 of the Act,” the agency said.
It called on the National Assembly to seek relevant input from the Federal Inland Revenue Service (FIRS) to resolve the divergent opinions regarding the methodology for the computation of the taxes which would arise as a result of the proposed royalty regime.
On the Act to establish the National Oil and Gas Museum and Research Centre in Oloibiri, the corporation recommended the establishment of the Museum alone with clear budgetary allocation from the Federal Government under the control and management of the National Commission for Museum and Monuments.
“It is better to refine and upgrade the capacity of the Petroleum Training Institute, in Warri and the National College of Petroleum Studies, Kaduna, in order to avoid duplication of functions and more importantly ensure optimal utilization of funds,” NNPC stated.
By Aduragbemi Omiyale
Nigeria’s integrated agro-industrial company, Ellah Lakes Plc, significantly improved its revenue in the first quarter of 2026 to N359.49 million from N19.61 million in the same period of 2025.
The revenue growth was driven by initial harvests and sales of Crude Palm Oil (CPO), reflecting stronger commercial activity and improved pace of revenue generation as operations continue to scale.
The improved sales activity was supported by growing commercial output from its operating platform and continued focus on disciplined execution.
It was observed that while the gross profit rose to N285.35 million from N19.61 million, the operating loss moderated to N273.42 million from the N514.12 million recorded in the first quarter of last year.
“The first quarter represents another important step in Ellah Lakes’ transition into commercial execution. The stronger revenue momentum recorded during the period was supported by improved production stability, better operational uptime and more disciplined sales execution.
“Importantly, we also narrowed our operating loss year-on-year, reflecting the benefit of higher gross profit and continued cost discipline. These results provide an encouraging early indication that the business is gaining operating momentum,” the chief executive of Ellah Lakes, Mr Chuka Mordi, said.
Ellah Lakes continued to focus on scaling output, improving efficiency, and converting its agricultural asset base into stronger commercial performance.
The quarter’s results show early evidence of this transition, with revenue increasing significantly year-on-year and operating loss narrowing compared with the prior-year quarter.
“Our CPO mill is now operational, piggery operations continue to scale, and we are advancing the next stage of our processing roadmap through the planned installation of a 40 tonnes-per-day Palm Kernel Oil (PKO) mill in Q2 2026.
“In parallel, we are strengthening our operating systems and exploring technical partnerships to improve asset utilisation and execution as the business scales.
“Our focus remains on disciplined execution, prudent capital stewardship and long-term value creation for shareholders,” Mr Mordi stated.
By Adedapo Adesanya
Businesses operating in Nigeria can now register easily as the Corporate Affairs Commission (CAC) introduces a direct payment option on its portal.
A statement posted on the commission’s handle on X (formerly Twitter) on Wednesday noted that the move is aimed at streamlining registration services as well as optimising the portal for efficiency.
“The Corporate Affairs Commission (CAC) wishes to notify its esteemed customers that payments for the following filings can now be conveniently made directly on our portal via ReVOps on the Intelligent Company Registration Portal (iCRP),” it announced.
The Revenue Optimisation and Assurance Project (REV-OP) was launched last year to strengthen public financial management.
The initiative focuses on blocking revenue leakages and improving transparency across government agencies.
It is built on three pillars: transparency, efficiency, and digital transformation.
The new payment systems allow users to pay for services through ReVOps on its Intelligent Company Registration Portal (iCRP).
Before now, the previous payment structure relied on the Remita gateway, which supported debit cards, bank transfers, and branch payments.
According to the Commission, the initiative is part of efforts to improve service delivery and streamline its processes for users.
The CAC listed services now eligible for direct payment include Annual Returns Filing, Change of Business Address, Cessation of Business, Change of Name, and Change of Objects.
It added that other services, such as Change of Proprietor or Partner details, are Certified True.
The move aligns with the federal government’s broader push to digitise public finance and improve revenue collection through technology.
REV-OP enables real-time monitoring and data-driven decision-making, marking a shift toward a more technology-driven approach to government revenue systems.
By Adedapo Adesanya
Nigerians paid more to buy staple foods, including eggs, beans, and garri, in March 2026 compared with what they paid in the preceding month, according to the National Bureau of Statistics (NBS).
The agency, in its Selected Food Prices Watch report for March 2026, released on Wednesday, said that the average price of eggs (a crate of 30 pieces) on a month-on-month basis went up by 2.00 per cent from N6,007.35 in February 2026.
However, the price of the proteinous meal decreased by 20.12 per cent on a year-on-year basis from N7,670.56 recorded in March 2025 to N6,127.63 in March 2026.
Similarly, the report said that the average price of 1kg of brown beans decreased by 49.39 per cent on a year-on-year basis from N2,616.26 in March 2025 to N1,325.85 in March 2026, but on a month-on-month basis, the price increased by 1.41 per cent from the N1,307.44 recorded in February 2026. It also showed the average price of 1kg of white garri decreased by 41.19 per cent on a year-on-year basis from N1,362.96 in March 2025 to N801.4 in March 2026, and on a month-on-month basis, it rose by 1.38 per cent from the N790.62 recorded in February 2026.
The report said that the average price of 1kg of onion decreased by 19.63 per cent from N1,434.85 recorded in March 2025 to N1,153.14 in March 2026. On a month-on-month basis, 1kg of onions increased by 1,59 per cent in March from the N1,135.12 recorded in February 2026.
The report said the average price of 1kg of fresh ginger increased by 20.46 per cent from the N4,600.23 recorded in March 2025 to N5,541.25 in March 2026. On a month-on-month basis, 1kg of ginger increased by 0.61 per cent in March from the N5,507.43 recorded in February 2026.
However, it said the average price of one litre of palm oil decreased by 4.71 per cent on a year-on-year basis from N2,511.77 recorded in March 2025 to N2,393.38 in March 2026.
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