Economy
Nigeria Earned $21bn from Oil/Gas Sector in 2017 – NEITI
By Adedapo Adesanya
The Nigeria Extractive Industries Transparency Initiatives (NEITI) has disclosed that Nigeria earned the sum of $21 billion from the oil and gas sector in 2017. This disclosure came from NEITI at the 2017 Oil and Gas Industry Report released in the nation’s capital, Abuja on Wednesday.
It said the figure showed a 23 percent increase from the 2016 figures of 17.05 percent and 15 percent lower than $24.79 billion inflow recorded in 2015.
A breakdown of the financial flows by revenue streams showed that crude oil and gas sales topped the table with about $10.19 billion, while other financial flows accounted for about $10.13 billion.
It added that flows to other entities like the Niger Delta Development Commission and Nigeria Content Development Monitoring Board among others were $669.05 million.
The report said: “In a five-year comparison of revenue flows from the oil and gas sector, the report revealed that there was a steady decline in year-on-year revenues from 2013 to 2016, with the sharpest drop of 55 per cent in 2015 compared to the preceding year.
“The year under review experienced a 23 per cent increase in revenues, 23 percent from 17.06 billion dollars in 2016 to 20.99 billion dollars in 2017.”
According to the report, 2017 witnessed a halt in the steady revenue decline the sector has been experiencing since 2013.
The report also showed that inflows from the Nigeria Liquefied Natural Gas (LPG) as dividend, interest and loan repayment were $834 million.
This indicated was a significant increase of 114 percent from the 2016 figures pegged $390 million.
On oil production during the period under review, a marginal increase of 4.75 per cent (690,465 barrels) as against the 659,137 barrels produced in 2016 was recorded.
It noted that the significant increase in revenues when compared to the increase in production volumes was as a result of the increase in oil prices.
The report further pointed out that average crude oil price was higher in 2017 and was sold for an average of $54.44 as against the S43.73 in 2016, and this signified an increase of 24.5 per cent.
“Out of the 690,465 mbbls of crude oil produced in 2017, a total of 688,291 mmbls was lifted, representing an increase from the 668,147 mmbls lifted in 2016,” it added
The NEITI report also showed that the Nigerian National Petroleum Corporation (NNPC) lifted a total of 241 million barrels (mbbls) of crude oil on behalf of the federation.
A breakdown of the liftings show that federation exports accounted for 135 million barrels, while the domestic crude liftings accounted for 106 million barrels.
It further disclosed that the federation exports volume went down by 36 per cent from 211 mbbls in 2016 to 135 mbbls in 2017.
It noted that while liftings by the companies amounted to 447 mbbls, joint venture operations, production sharing contracts and sole risk operators accounted for 130 mbbls, 223 mbbls and 79 million barrels respectively.
It said that the marginal field and service contract operators lifted 15mbbls and 1mbbls during the year under review
On crude allocation for domestic use, the report indicated that in 2017, the NNPC allocated 105.925 mbbls for domestic, while 25 per cent of this quantity was supplied to the refineries, 69 per cent was on the other hand utilised for the Direct Sales and Direct Purchase arrangement.
On production arrangements in terms of volumes, joint ventures and production sharing contracts produced 305 mbbls and 303 mbbls.
It added that others such as service contracts, marginal fields and sole risks accounted for the balance.
The report said: “Sole Risk operations produced the highest percentage increase of 114 per cent, and Marginal Field operations witnessed an increase of 32 per cent in the year under review.
“Overall production from the JV companies increased by 16.199 mbbls, indicating a six per cent increase from 2016 volumes.
“On the contrary, PSC and SC operations suffered volume reductions of six per cent and 31 per cent respectively.”
On Gas production, it said the total gas production was 3,494,774 mmscf from all arrangements, slightly higher than 2016 production of 3,051,249 mmscf by 15 per cent.
It noted that the total volume of gas flared in 2017 increased by 23 per cent, while gas utilisation saw a significant jump of 32 per cent when compared to 2016 volumes.
The report also said $8.474 billion was budgeted for Cash Call obligations, but only 49 per cent or $4.13 billion was paid as at January 2018.
It said out of the $5.125 billion negotiated as outstanding cash call liabilities for 2016, $2.177 billion was paid, therefore, leaving a balance of $2.948 billion.
It further observed that 2017 witnessed a huge drop in crude oil theft, sabotage and deferred production.
It said: “Nigeria lost about 36.5 mbbls of crude oil to theft and sabotage and there was 69mbbls lost due to decrease in production volumes resulting from routine maintenance or unplanned repairs of the production facilities.
“This is regarded as a remarkable improvement particularly, when compared to the 2016 figures of 101 mbbls and 144 mbbls lost to theft and deferred production respectively.”
NEITI also noted that there was reduction in pipeline breaks in 2017 (924 breaks) when compared to the figures of the previous years (2013-3,571; 2014-3,732; 2015-2,832 and 2016-2,589 breaks).
This decline, it said, suggested a positive return on the actions taken to mitigate vandalism.
The report further added that the oil and gas sector contributed 8.68 percent to Nigeria’s Gross Domestic Product (GDP)
The 2017 NEITI oil and gas report covered 63 entities and these include seven government agencies, 12 joint venture companies, 13 production sharing contract companies and 16 marginal field operators.
By Aduragbemi Omiyale
One of the leading local energy firms, Oando Plc, delivered an impressive financial performance in the first six months of 2026, according to details of its results filed to the Nigerian Exchange (NGX) Limited.
Between January and June 2026, revenue surged by 20 per cent to N2.1 trillion from N1.7 trillion in the same period of 2025, driven by growth in the Exploration & Production and Trading segments of the business.
Also, the net profit grew by 8 per cent year-on-year to N68.6 billion from N63.3 billion, supported by improved operating profits and tax credits.
It was observed that the organisation deepened its domestic gas monetisation portfolio with the commencement of long-term gas supply of 11.2 MMscfd to the newly commissioned 60 MW Bayelsa Independent Power Plant.
“The first half of 2026 marks an important inflexion point in Oando’s journey. Over the past two years, our priority has been to successfully integrate one of the most significant upstream acquisitions in Africa and unlock the full value of our expanded portfolio. The progress achieved during the period demonstrates that we are now delivering the operational and financial outcomes expected from that transformation,” the chief executive of Oando, Mr Adewale Tinubu, stated.
Commenting further on the results, Mr Tinubu said, “Operational efficiency underpinned our performance during the period as we strengthened asset integrity, improved facility reliability and reinforced security across our operating areas, resulting in average facility uptime of 92 per cent while reducing production operating costs by 18 per cent to $16.83 per boe.”
“Our development programme also gathered significant momentum during the period as we successfully drilled and completed two land development wells, with an additional land well currently being drilled, while mobilising a second drilling rig to accelerate activity across our operated portfolio.
“In parallel, we continued an extensive programme of rig-less well interventions designed to restore production, sustain plateau output and mitigate natural field decline. Together, these activities increased average production to 42,789 boepd, representing 16 per cent year-on-year growth.
“This translated into a stronger financial performance, with revenue increasing by 20 per cent to N2.1 trillion, while the business generated N179.5 billion in operating cash, improving liquidity. Profit after tax also increased by 8 per cent to N68.6 billion, reflecting the overall improvement in operating performance during the period,” he pointed out.
The Oando chief also said, “Looking ahead in 2026, our priorities remain firmly centred on completing our seven-well drilling programme and portfolio-wide well intervention campaign while delivering production of circa 50,000 boepd.
“Beyond 2026, our identified inventory of 62 development wells, supported by 55 planned well interventions, provides a clear pathway towards our medium-term production ambition of approximately 100,000 boepd.
“Furthermore, we shall execute an intensive fundraising and balance sheet restructuring programme to optimise our capital structure, strengthen our financial position, improve working capital, enhance financial flexibility and ensure the business is appropriately funded to accelerate growth and maximise long-term shareholder value.
“We have built a resilient operating platform and established a clear roadmap for growth. Our focus is now on translating our significant opportunities into higher production, a stronger balance sheet and superior long-term returns for our shareholders.”
By Adedapo Adesanya
Africa-focused fintech company PalmPay has joined the ranks of unicorn startups after attaining a valuation of more than $1 billion, as the digital payment platform prepares for a potential initial public offering (IPO) in Hong Kong.
According to a report by Bloomberg on Tuesday, citing people familiar with the matter, the Hong Kong-headquartered company is in advanced discussions to raise about $200 million in a new funding round that would cement its unicorn status and support its next phase of expansion.
The planned fundraising comes as PalmPay accelerates its growth strategy across Africa and Asia, while positioning itself for a public listing that could become one of the most significant fintech IPOs involving an Africa-focused company in recent years.
PalmPay’s move follows a period of rapid growth in Nigeria, where it has become one of the country’s largest digital financial services providers. Alongside OPay and Moniepoint, the company forms the trio that dominates Nigeria’s retail digital payments and agency banking market, a segment driven by millions of point-of-sale (POS) transactions processed daily.
With PalmPay’s latest valuation milestone, all three leading Nigerian fintechs have now achieved unicorn status. While OPay has previously disclosed plans to pursue a listing in the United States, Moniepoint has remained focused on expanding its banking and business services without publicly indicating IPO ambitions.
Founded in 2019 after securing a Mobile Money Operator (MMO) licence from the Central Bank of Nigeria (CBN), PalmPay has built one of the country’s fastest-growing fintech ecosystems. The company says it now serves more than 35 million registered users and over 600,000 merchants, supported by an extensive network of more than 500,000 mobile money agents nationwide.
The platform offers a broad suite of financial services, including peer-to-peer transfers, bill payments, airtime purchases, savings, credit products, merchant payment solutions and agency banking services. PalmPay says it processes as many as 15 million transactions daily, reflecting the increasing adoption of digital payments across Nigeria.
Beyond its home market, the fintech has expanded into Tanzania, Ghana, and Bangladesh, underscoring its ambition to become a leading emerging-market digital bank. Industry analysts view the expansion as part of a broader strategy to diversify revenue streams while replicating its Nigerian success in other underbanked markets.
PalmPay has attracted backing from prominent global investors, including Taiwanese semiconductor manufacturer MediaTek and smartphone maker Transsion Holdings, whose Tecno, Infinix and itel brands command significant market share across Africa. Their support has helped PalmPay leverage smartphone penetration to drive financial inclusion through mobile-first banking services.
As part of efforts to strengthen its leadership ahead of its next growth phase, PalmPay recently appointed Mr Samuel Oluyemi as Chief Operating Officer (COO) for its Nigerian business. Mr Oluyemi joined the company after more than two decades at the Nigeria Inter-Bank Settlement System (NIBSS), where he played key roles in developing the country’s digital payments infrastructure.
If completed, the fundraising and eventual Hong Kong listing would further underscore growing international investor confidence in African fintech companies despite a more cautious global venture capital environment. The proceeds are expected to support PalmPay’s geographical expansion, deepen its product offerings, invest in technology infrastructure and strengthen its competitive position in Africa’s rapidly evolving digital financial services industry.
By Adedapo Adesanya
Market bellwethers, Central Securities Clearing System (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc, lifted the NASD Over-the-Counter (OTC) Securities Exchange by 2.08 per cent on Monday, August 3.
CSCS Plc, the Nigerian securities depository company, gained N10.00 to close at N112.00 per share compared with the previous session’s N102.00 per share, and FrieslandCampina Wamco Nigeria Plc advanced by N4.71 to quote at N152.64 per unit versus last Friday’s N147.93 per unit.
As a result, the NASD Security Index (NSI) added 92.14 points to finish at 4,523.85 points compared with the preceding session’s 4,431.71 points, and the market capitalisation appreciated by N55.31 billion to N2.715 trillion from N2.659 trillion.
Business Post reports that the price of MRS Oil Plc crashed during the trading day by N12.00 to N120.00 per share from N132.00 per share, and UBN Property Plc dipped by 3 Kobo to N1.90 per unit from N1.93 per unit.
Trading data showed that the volume of securities exchanged rose by 113.1 per cent to 1.5 million units from 690,990 units, and the number of deals climbed by 19.2 per cent to 31 deals from 26 deals, while the value of securities slid by 13.1 per cent to N65.2 million from N75.0 million.
Great Nigeria Insurance (GNI) Plc remained 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 sold for N6.5 billion, and CSCS Plc with 76.8 million units traded for N5.5 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
