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 Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
