Economy
Fitch Upgrades Nigeria’s Seven Energy to ‘CC’
By Dipo Olowookere
Fitch Ratings has upgraded Nigeria-based Seven Energy International Limited’s Long-Term Issuer Default Rating to ‘CC’ from ‘RD’ (Restricted Default) following completion of the consent solicitation for the company’s 10.25% USD300 million senior secured notes due 2021.
Simultaneously, Fitch has affirmed wholly owned subsidiary Seven Energy Finance Limited’s $300 million senior secured notes at ‘C’ with a ‘RR6’ Recovery Rating.
Following the completion of Distressed Debt Exchange (DDE) in December 2016, Seven Energy may choose to pay interest on the notes in kind for up to four coupon payments between 11 October 2016 and 11 April 2018, subject to certain conditions.
However, its short-term liquidity remains extremely weak due to accumulated accounts receivables for sold natural gas, a limited ability to convert naira into dollars, and the ongoing Forcados export pipeline closure since February 2016.
Management has taken steps to improve the company’s liquidity, but we believe the current debt structure may be unsustainable and a default of some kind is probable.
All Seven Energy’s oil liftings from OMLs 4, 38 and 41 under the strategic alliance agreement (SAA) with the state-owned NPDC have stopped since February 2016, as the Forcados oil pipeline and terminal remain shut due to the threat of militant attacks. Management has given no estimate on when Forcados will be restarted.
As an alternative option, the company is considering barging oil via the inland Warri refinery. This option has not yet been tested by Seven Energy and we believe projected barging volumes would not compensate for the loss of the Forcados pipeline volumes.
On February 7, 2017, Seven Energy announced that Nigerian Petroleum Development Company Limited (NPDC) may terminate the SAA after 17 March 2017 unless the company meets outstanding cash calls.
Fitch said it understands from Seven Energy that it plans to challenge this potential action to preserve its contractual rights under the SAA. This may further worsen the company’s liquidity position and affect its operational profile; however, these risks are captured in the ‘CC’ rating.
Developing Natural Gas Business: The natural gas business in Nigeria’s southeast is an important growth driver for the company. It is now on track to ramp up gas sales to 150MMcfpd and more. The construction of the power grid to allow local power stations to run at full capacity has been completed and the Calabar power station (NIPP), one of the major off-takers, is able to generate additional electricity.
Uncertain Cash Flows from Gas: Near-term cash flows from the gas business are uncertain as sale volumes remain volatile and the company’s major gas off-takers, state-owned power stations, delay payments for consumed gas.
In November 2016, Seven Energy agreed a $112 million partial payment guarantee with Nigeria’s federal government for gas supply to the Calabar power plant and other customers; however, the guarantee is still unavailable pending finalisation of ancillary documentation.
Seven Energy’s midstream gas infrastructure assets are fully ring-fenced and serve as security for the company’s Accugas IV loan. There is a risk that the Accugas IV lenders may decide to enforce the security, stripping the company of its main cash-generating asset and effectively forcing it into liquidation.
Naira Convertibility Issues: Seven Energy’s natural gas revenues are US-dollar pegged but are received in naira. Nigerian companies are facing difficulties exchanging naira into US dollars, which Seven Energy needs to service its US-dollar debt, at the official exchange rate. To alleviate the problem, the company is working to convert the Accugas IV facility into naira. The foreign currency conversion issue negatively affects the company’s liquidity as long as Forcados remains shut, as the company receives little US dollar revenues from other operations.
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.
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).
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.
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