Economy
Governors Waste 13% Oil Derivation Fund—Enang
By Adedapo Adesanya
The Senior Special Assistant to President Muhammadu Buhari, Mr Ita Enang, has said it was time to revisit the allocation of 13 per cent oil derivation fund to state governments on claims that they are misapplying it.
He made this disclosure when members of the Host Communities of Nigeria, Producing Oil and Gas (HOSCON) visited his office to present a paper on the 13 per cent derivation fund and other issues bordering on the development of oil-bearing communities.
In Nigeria, there are nine oil-producing states including Delta, Akwa-Ibom, Bayelsa, Rivers, Edo, Ondo, Imo, Abia and Lagos.
Mr Enang accused state governors of mismanaging the fund to the detriment of oil and gas producing communities and the development of the Niger Delta, stating that the allocation to the governors of these states is fuelling under-development and destabilizing peace in the region.
The SSA stated that as a result of the long years of neglect of the Niger Delta, it was time the allocation be revisited to ensure the restoration of lasting peace and development of these oil-producing communities.
He noted that even the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) had considered, examined and concluded that the 13 per cent derivation fund is exclusively for the host communities and that there are a misapplication and misdirection of the fund.
He said: “From the content of Section 162 of the 1999 constitution, it can be seen the natural resources are located in the different communities that host the resources, not in the state capitals or government houses of the respective states.
“Therefore, it would be inappropriate for the state governors to take the 13 per cent derivation money and apply it only for either building new governors’ lodge, buying private aircraft; increasing the number of vehicles in their convoys or doing any other things which are sometimes obscene, making the oil-producing communities angry and forcing them to disrupt crude oil and gas production.”
Mr Enang stated that it was necessary that concrete steps be taken at the federal level to redeem the oil-bearing communities from the challenges that they are faced with, noting that over the years, governors of the Niger Delta region had treated derivation funds the way they treated local government allocation.
In his words, “What ought to be done now is that the money is not given to the respective states. The governors should take the same allocation as other states of the Federation, which is the statutory allocation, taxes and Value Added Taxes, VAT; but the derivation should go for the development of the oil-producing communities; through special purpose, vehicles to be created.
“Since we have seen the way and manner the governors had utilized the 13 per cent Derivation Fund, I think it is time we go back and obey the provisions of the Constitution and cause that these monies be used for the development of oil and gas producing communities directly for their development so that this affliction would be arrested.
“If we do that, the monies we are spending on Operation Delta safe, spending on guarding oil and gas assets; spending on quelling unrest and ensuring security would be saved.”
In his remark, the Chairman of HOSCON, Mr Mike Emuh, lamented that oil and gas bearing communities had been consistently denied their rights in the area of the 13 per cent derivation fund, stating that payment of the money to the states was against the law.
He bemoaned the fact that over the last 15 years, about N20 trillion had been allocated to oil and gas producing states without any form of accountability from the governors and concrete development in the Niger Delta region.
He appealed to Mr Ita Enang to help escalate the demands of HOSCON in the area of the derivation fund, as well as in the area of ensuring the setting of a trust fund for the management of the gas flare penalty money and the award of pipeline surveillance and protection contracts to host communities.
By Adedapo Adesanya
Central Securities Clearing System (CSCS) Plc kept the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.04 per cent on Friday, July 16.
The securities depository company added N2.50 to its share price to settle at N95.14 per unit from the preceding session’s N92.64 per unit.
However, FrieslandCampina Wamco Nigeria Plc slid during the session by N5.85 to N141.81 per share from N147.66 per share.
But when the bourse closed for the day, the market capitalisation increased by N1.08 billion to N2.593 trillion from N2.592 trillion, while the NASD Security Index (NSI) appreciated by 1.80 points to 4,320.67 points from 4,318.87 points.
During the session, the value of securities slid by 38.9 per cent to N63.5 million from N104.1 million, the volume of securities went down by 34.5 per cent to 1.2 million units from 4.8 million units, and the number of deals declined by 15.4 per cent to 33 deals from 39 deals.
Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 75.4 million units traded for N5.3 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
