Economy
NCDMB, IOCs laud Yulong Steel Pipe Mill
By Modupe Gbadeyanka
The Nigerian Content Development and Monitoring Board (NCDMB), major operating companies and other stakeholders of the industry have commended Yulong Steel Pipe Mill for the speed and quality of their investment, describing the factory as comparable to similar facilities in China and India.
The Executive Secretary of the Board, Mr Simbi Kesiye Wabote recently led top executives of the oil and gas industry on a pre-commissioning visit to Yulong facility located at Lekki Free Trade Zone in Lagos.
He stated that the Board will work with the oil companies under the aegis of the Oil Producers Trade Section and Yulong to invite international certifying bodies to certify the new pipe mill.
Mr Wabote pledged the Board’s commitment to support companies that invest in the Nigerian economy so as to create employment for Nigerians and challenged multinationals and indigenous service companies to emulate Yulong by investing in manufacturing facilities in Nigeria.
He indicated that the Board had clear guidelines for implementing Nigerian Content requirements in Free Zones through collaborations with the Oil and Gas Free Zones Authority (OGFZA) and the Nigerian Export Processing Zones Authority (NEPZA).
The Executive Secretary stressed that Yulong and other Oil and Gas companies operating in the Free Trade Zones were bound by the provisions of the Nigerian Content Act especially as it pertains to Expatriate Quota Utilization and employment of Nigerians. According to him, “this facility provides a good opportunity for Yulong to gradually build the skills of Nigerians to eventually operate the facility. The Board is interested in seeing the laid out plans by Yulong to ensure that Nigerians are gradually trained to take over those responsibilities especially in the skilled areas.”
Speaking after inspecting the factory, the Nigerian Content chieftain recalled that “the case for the establishment of pipe mill was reinforced following a gap analysis conducted in 2011 which established an annual demand of about 83,000mt per annum compared to the capacity at the time of 100,000 metric tonne per annum in SCC pipe mill.”
He further said that, “ramp-up local capacity policy inventions were introduced to stimulate investment in the establishment of at least four pipe mills. The interventions include direct investment in Polaku Pipe Mill by NCDMB along with investors with an exit plan and support to third party investors by granting first consideration in procurement of line pipes for oil and gas projects.”
The Executive Secretary disclosed that the interventions were working as SCC had since expanded its capacity to 207,000mt per annum Helical Submerged Arc Welding (HSAW) line pipes. This capacity growth is about 30 per cent of industry demand with Yulong about to add 400,000mt of HSAW pipes and is targeting industry needs in Nigeria and other West African countries.
He reiterated that the Board will rely on the provisions of the Act that give first consideration to services provided within Nigeria and to goods manufactured in Nigeria to ensure that operators in the industry patronise the facility and other laudable investments.
The Executive Secretary commended the speed with which the factory was built, noting, “from what I am told, the factory actually started construction work in February 2016 and nine months later manufacturing has actually started. This is commendable.”
He also tasked the company to consider introducing another production line that will be dedicated to other types of line pipes required in the industry. He noted that there was excess capacity of HSAW pipes in Nigeria with a huge demand gap for Longitudinal Submerged Arc Welding (LSAW) pipes, High Frequency Welded (HFW) pipes and Seamless pipes. He added that investment in these mills will help address the remaining 70 per cent of industry demand that is still sourced abroad and ensure huge impact in spend retention, job creation and technology acquisition.
Earlier in his presentation, the Chief Marketing Officer of Yulong Steel Pipe Company Limited, Mr A. Abbas stated that the intention of the company was to build the steel pipe complex in three phases. He noted that the first is to produce Spiral Submerged Arc Welding (SSAW) pipes, the second will be for Longitudinal Submerged Arc Welding (LSAW) pipes and the third will be the ER Welding pipes.
“What you see today is only the first phase of the Spiral Submerged Arc Welding Pipe. The production capacity will be 250,000mt per annum as well as a coating facility which can cover all types of coating reaching almost 3 million square metres per year,” Mr Abbas affirmed.
He acknowledged the plant is integrated with a pipe coating facility which during peak construction will employ about 600 Nigerians for the project. Abbas also hinted that Yulong Lekki investment owns 51 per cent stake in Jiangsu Yulong Steel Company of China while in future, 49% equity of Yulong Lekki will be dedicated to Nigerian investors operating inside the Lekki Free Zone.
He also asserted that with the ground breaking ceremony in December 2015, the first pipe was produced in Nigeria in November 2016.
In his good will messages, the Managing Director of the Lekki Free Zone Development Company, Mr Yonghua Ding stated that Yulong successfully passed the factory test-run at the FTZ and declared the mill fit and ready for production.
While commending Yulong Steel, Mr Ding extolled the company for keeping to its commitment with the Nigerian government with an investment of good quality and fast speed.
The Managing Director of the Zone also said that the company made a great decision to comply with the policy of Nigerian government on Local Content and local industrialization as part of their contribution to the Nigerian society, economy, youth employment and for technical transfer.
Also delivering a message of good will on behalf of the Coordinators of the Zone, the Assistant General Manager (Zone Technical Services), NEPZA, Mrs Pwash Eldon opined that the agency was impressed with the state of work done within the short period. She further commended Yulong for their commitment to ensuring that they deliver as they promised.
The NEPZA official informed that the agency’s management is a strong advocate of the NOGICD Act which is a rallying point for both the Board and NEPZA to collaborate for the overall good of the Nigerian economy and for the investor confidence.
By Adedapo Adesanya
The Senate Committee on Banking, Insurance and Other Financial Institutions has called for stronger collaboration among financial sector regulators and other stakeholders to strengthen Nigeria’s financial system and support sustainable economic growth.
The committee made the call during an expanded stakeholders’ engagement in Lagos, attended by the leadership of the Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC), Asset Management Corporation of Nigeria (AMCON), National Insurance Commission (NAICOM) and Nigeria Export-Import Bank (NEXIM), among other industry stakeholders and financial experts.
Chairman of the committee, Mr Adetokunbo Abiru (Lagos East), who was represented by Mr Osita Izunaso (Imo West), said stronger legislative reforms and regulatory collaboration were necessary to reposition Nigeria’s financial architecture for long-term economic prosperity.
Mr Abiru said the financial sector remained critical to investment, job creation, business expansion and macroeconomic stability, stressing that its ability to mobilise savings, channel credit to productive sectors, facilitate investment and manage risks was fundamental to sustainable economic growth.
He said the current economic realities required closer collaboration between the legislature and financial regulators, noting that challenges confronting the sector were interconnected and could not be effectively addressed through isolated interventions.
The lawmaker identified inflationary pressures, global economic uncertainties, cybersecurity threats, low insurance penetration and the need to diversify Nigeria’s export base as some of the challenges requiring coordinated policy responses.
He said the engagement was aimed at generating practical solutions to strengthen the country’s financial architecture and support sustainable economic growth.
According to him, monetary policy, financial safety nets, banking institutions, the insurance industry and export finance were interdependent components of a stable financial system and must therefore be strengthened collectively.
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr Olusegun Ayo Omosehin, said the Nigeria Insurance Industry Reform Act (NIIRA) 2025 had contributed significantly to stabilising and repositioning the insurance sector.
Mr Omosehin disclosed that 43 insurance companies had successfully recapitalised, describing the development as a major milestone for the industry.
He commended Abiru and members of the committee for their role in advancing insurance sector reforms and urged the House of Representatives to expedite action on the relevant insurance reform bill to enable it to receive presidential assent and become operational.
Representatives of the CBN Governor and the Managing Directors of AMCON, NEXIM and NDIC also commended the Senate committee for its oversight and legislative support, saying its interventions had strengthened the agencies’ capacity to discharge their statutory mandates.
The engagement, held under the theme, Strengthening Financial System Architecture for Sustainable Economic Growth and Stability in Nigeria, also featured presentations by Professor Uche Uwaleke, President of Capital Market Academics of Nigeria (CMAN); Professor Biodun Adedipe, Chief Consultant, B. Adedipe Associates Limited; and Dr Tilewa Adebajo, Chief Executive Officer of CFG Advisory.
The experts presented policy recommendations on key issues affecting Nigeria’s financial system, with emphasis on financial stability, investment and sustainable economic growth.
Mr Abiru said the Senate would continue to engage financial regulators and other stakeholders to deepen financial inclusion, strengthen public confidence in financial institutions and improve regulatory effectiveness.
He said the broader objective was to position Nigeria’s financial system to compete more effectively in the global economy while remaining resilient and responsive to the country’s economic transformation agenda.
By Aduragbemi Omiyale
The first six months of 2026 were not too good for Caverton Offshore Support Group Plc, as it suffered an N8.7 billion loss compared with the N2.1 billion net profit it recorded in the same period of 2025.
This occurred as the company posted a 10.91 per cent decline in earnings between January and June 2026, according to its financial statements for the period ended June 30, 2026.
Analysis of the results showed that the revenue generated in the period under review stood at N14.7 billion versus the N16.5 billion printed in the corresponding period of last year.
Business Post observed that the revenue was negatively impacted by a decline in earnings from helicopter charter and helicopter/airplane contract.
Further analysis of the financial results indicated that operating profit went down by 22.34 per cent to N7.3 billion from N9.4 billion, with administrative expenses jumping to N7.9 billion from N4.7 billion.
But Caverton believes things will get better, noting that the clearest driver of the recovery is Caverton Marine.
Through its relationship with Stena Bulk, one of the world’s leading tanker operators, the organisation now participates in three Suezmax tankers trading a rare source of foreign-currency revenue for a Nigerian-listed company.
It noted that the relationship is being deepened through Unity Shipping Worldwide, a joint venture with the Nigerian National Petroleum Company (NNPC) Limited and Stena Bulk that pairs the state-owned oil firm’s national position and Stena Bulk’s fleet with Caverton’s indigenous operating platform
Closer to home, the firm’s OMIBUS platform, developed with Shanghai-based electric-propulsion OEM Explomar, is bringing battery-electric passenger ferries to Lagos waterways. A prototype is already in service, and Caverton holds a firm order from Lagos State for ten vessels, an early-mover position in clean inland-water transport that the group believes can be replicated across other states as the fleet enters service and ferry operations mature into steady, recurring revenue.
In aviation, the institution said the recovery is anchored on its partnership with NHV, a Belgium-based international helicopter operator, with the restructuring of charter operations targeted for the second half of 2026.
“The first half of the year tested us, but the direction of travel is now visible in the numbers.
“Quarter on quarter, we are working to build up our revenue to narrow losses. Our marine business units, from international tankers to electric ferries, are scaling.
“Meanwhile, our aviation relaunch is on track for the second half, and our cost base is tighter than it has been in years. There is distance still to travel, but Caverton is moving from stabilisation to recovery, and we intend to finish 2026 with that momentum intact,” the chief executive of Caverton, Mr Olabode Makanjuola, stated.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB) have issued new guidelines clarifying the taxation of virtual assets in Nigeria.
The guidelines provide an administrative framework for the taxation of virtual assets and specify the tax obligations of individuals and businesses operating in the sector.
According to a public notice issued by the two agencies, the framework covers registration, reporting and record-keeping requirements, valuation principles and the tax treatment of virtual asset transactions.
It applies to taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer (P2P) marketplace operators, tax practitioners and other persons engaged in virtual asset-related activities.
The NRS and JRB said the guidelines were developed in line with the provisions of the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025.
The two bodies said the release was aimed at providing clarity, certainty and consistency in the administration of Nigeria’s tax laws as the country’s virtual asset ecosystem continues to evolve.
The agencies added that the framework would promote voluntary compliance, enhance transparency and support the development of a fair and efficient tax system for digital asset transactions.
They urged all affected taxpayers and stakeholders to familiarise themselves with the guidelines and ensure compliance with the applicable tax obligations.
The guidelines are available on the official websites of the two agencies.
