Economy
NCDMB, NEXIM Disburse $42m to Oil, Gas SMEs
By Adedapo Adesanya
The Nigerian Content Development and Monitoring Board (NCDMB) and Nigerian Export Import Bank (NEXIM) have disbursed about $42 million to Small and Medium Enterprises (SMEs) to boost their participation in the oil and gas sector.
This was disclosed by the Head of Specialised Business at NEXIM, Mr Muhammed Awami, at the NCDMB stakeholders’ sensitisation and engagement forum in Port Harcourt, Rivers State, on Thursday.
He noted that although the working capital of the capacity fund is $30 million, they have exceeded the amount in order to attract more Nigerian players in the energy industry.
Mr Awami appealed to the duly registered Nigerian oil service providers with a viable contract with International Oil Companies (IOCs) and National Oil Companies (NOCs) to take advantage of the NCDMB working capital and capacity fund, managed by NEXIM bank.
He said the fund offers flexible financing and tailoring solutions to meet their business needs, and catalyse business growth, help to access markets, expand global footprint and unlock new opportunities.
“Once you meet pre-disbursement conditions, we disburse the funds to you, and after disbursement, we also sometimes monitor jointly with NCDMB. Sometimes, we just do spot check assessment of utilisation of the funds, to make sure the funds are being used for the purpose it was disbursed.
“When it’s time to repay, we expect that repayments are made by the beneficiaries so that we can also lend again to other people. The fund working capital and capacity fund is $30 million. But, so far, we have disbursed about $42 million.”“So, I’m sure a lot of challenges could be around collateral in terms of how the funds operate. So, what we have done is to water down the requirements without compromising the bank or the board.
“We use things like the assignments of receivables; we use things like insurance and other forms of collateral which make it easy for the beneficiaries to access the funds, though we are transactional about it. So, we look at the transaction itself and build the finance structures around the transaction in such a way that the loan becomes self liquidity without the need for physical collateral.”
On his part, the Executive Secretary of NCDMB, Mr Felix Ogbe, said the forum offers the board an opportunity to deliberate with the stakeholders in the oil and gas industry.
Represented by Mr Osa Uchendu, the NCDMB chief said the conversation would boost more participation of Nigerian players in the oil and gas industry and encourage their business growth.
Also speaking, the Group Head, Oil and Gas, Bank of Industry (BoI), Mr Gabriel Yemidale, said the Nigerian Content Intervention Fund (NCIFund) which started in 2017, with N200 million had grown to N300 million in 2023.
“Most times, I see a lot of people come to the bank to apply for loans. Some of them are not veritable for this loan; they are not contributing the one percent. I want to really emphasize on this, that you have to be a contributor to this fund, you have to pay that one percent NCD which they take from your contract, that you have with the IOCs.
“We have five funds, the community financing which is now being done with the PFIs, and one of the PFIs, we have given it to FCMB, and why I’m starting with that is because this is the baby of the current Executive Secretary of NCDMB, and he wants to touch the lives of the grassroots, he wants to grow that market, that segment and make them start playing where the foreign players are, which is the life enterprise space.
“So, we started that funds with FCMB, and the single obligor is N100 million for starters, we will continue to review it as time goes on, and moratorium on that is 3 to 6 months, and it’s depending on your needs, it’s about two years, all you need to do, go to NCDMB with your ISPO, go with your contract and the loan will be issue to you.”
Mr Yemidale explained that there is no bank guarantee for community finance, “it is just the ISPO, from the IOCs issuing you those PO, this fund is readily available for community people to utilize.
By Aduragbemi Omiyale
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) for the Nigerian private sector in July 2026 contracted to 52.5 points from 53.4 points in June 2026, a statement made available to Business Post has shown.
This occurred despite the business environment sustaining its growth last month, with an increase in new orders experienced, as inflationary pressures softened, and output and employment modestly rising.
The Head of Equity Research West Africa at Stanbic IBTC Bank, Mr Muyiwa Oni, said the PMI indicated that the private sector recorded its slowest since March 2026, as businesses also increased their input purchasing activity to keep up with current demand requirements and prepare for future workloads.
“Nigerian businesses reported improved customer demand in July while better pricing and new product launches also helped them to capture new orders arising from the increase in demand. These factors helped to keep the private sector activity in an expansionary territory, although this moderated when compared to June,” he was quoted as saying.
It was stated that while input costs increased at their slowest pace in five months, panellists reported higher costs for fuel and raw materials. Selling prices also softened in line with the picture for input costs in July.
Headline inflation eased slightly to 15.91 per cent y/y in June from 15.93 per cent y/y in May, snapping three consecutive months of price increases.
Although July inflation is likely to be higher m/m, it is expected to print lower, likely at 15.72 per cent y/y, primarily driven by favourable base effects from the corresponding period of last year, because there are no expectations of the magnitude of m/m inflation witnessed in July 2025 (1.99 per cent) to materialise this year.
“We retain our 2026 growth forecasts at 4.1 per cent as we see the oil sector growing by 3.45 per cent y/y in 2026, from 8.50 per cent y/y in 2025, while the non-oil sector is likely to grow by 4.11 per cent y/y, from 3.71 per cent y/y in 2025.
“The risks to our outlook include country-wide insecurity which may constrain food production, exchange rate pressures resurfacing, extreme-weather related conditions and higher fertiliser prices impacting crop yield, and a volatile global environment which may affect sentiment and constrain capital flows,” Mr Oni noted.
By Adedapo Adesanya
Sahara Upstream, a Nigeria-focused crude producer, has deployed a new 380,000-barrel tanker to boost exports from the OML 18 block as part of a wider push by domestic operators to invest in infrastructure and lift output and exports for Africa’s biggest oil producer.
The MT D Adesanya, which can hold more than 62,000 cubic metres of crude, will operate alongside the MT D Bayero, receiving crude from shuttle vessels at Bonny Anchorage, one of Nigeria’s main crude export hubs, before transferring it to the FSO Cawthorne storage facility.
Sahara said the tanker would help cut turnaround times, currently about 30 to 48 hours, and support a planned 50 per cent increase in exports from the block’s current level of about 950,000 barrels per month.
The block currently produces about 36,000 barrels per day, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), with Sahara targeting output of 60,000 barrels per day.
OML 18 is one of the Niger Delta’s oldest producing assets. It began production in 1970 and contains an estimated 1.5 billion barrels of oil equivalent in reserves.
Shell, Total and Eni sold their combined interests to Eroton in 2015 as part of a broader shift toward domestic ownership in Nigeria’s upstream sector.
This development comes as Sahara Upstream is deepening its exploration and production footprint through Asharami Energy Limited (AEL), its upstream E&P business, which says it is targeting 350,000 barrels of oil per day by 2030 through its subsidiary, Enageed Resources Limited (ERL).
The growth target comes as AEL also marks a major safety milestone, achieving 6 million Lost Time Injury (LTI)-free man-hours in its OML-148 operations — reinforcing the company’s commitment to operational excellence and safety leadership.
According to Asharami Energy, the milestone reflects its ability to execute complex operations safely, in line with Sahara’s Beyond XXX vision, which builds on the group’s 30-year legacy of responsible enterprise while marking its next chapter of impact, innovation, and sustainable growth.
The developments position Sahara Upstream and its subsidiaries among the domestic operators driving increased investment in Nigeria’s oil and gas infrastructure, as the group works to scale up production and exports for Africa’s biggest oil producer.
By Aduragbemi Omiyale
One of the leading energy firms in Nigeria, Aradel Holdings Plc, has expressed its desire to optimise its enlarged portfolio and improve operational efficiency in the second half of 2026.
The company is planning to build on the success it recorded in the first half of the year, where it grew its revenue by 577 per cent to N2.5 trillion from N368.1 billion in H1 2025.
The significant rise in earnings was driven by higher production volumes together with stronger realised crude oil and gas prices, with the average at $90.4/bbl and $2.08/mmscf, respectively.
In the period under review, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 688 per cent to N1.4 trillion from N176.4 billion in the corresponding period of last year, while the operating profit surged by 789 per cent to N1.1 trillion from N118.6 billion due to higher revenue and crude handling income at N149.8 billion, partly offset by underlift cost and general and administrative costs.
The net cash generated from operations was N975.6 billion between January and June 2026 versus N140.8 billion in the same period of 2025, reflecting the cash generation of the enlarged organisation.
The net debt contracted by 70 per cent on a year-to-date basis to N46.5 billion from N475.1 billion as of December 31, 2025.
Aradel, in the period under consideration, improved its post-tax profit by 30 per cent to N191.0 billion from N146.4 billion, a development that impressed its chief executive, Mr Adegbite Falade, who said, “A firmer price environment supported performance, generating net cash from operating activities of N975.6 billion and a closing cash balance of N1.7 trillion.”
“Our enlarged portfolio provides more opportunities to generate stronger cash flow and returns for shareholders and unlocking that potential is our main focus.
“We reaffirm our full year production guidance of 110 – 140 kboepd and remain committed to operating responsibly in a changing energy landscape and to delivering lasting value for our stakeholders,” he stated.
