Economy
Nigeria Losing $700m Monthly to Oil Theft—NNPC
By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited has said that Nigeria is currently losing 470,000 barrels per day of crude oil amounting to $700 million monthly due to oil theft.
A statement by the NNPC said that Mr Bala Wunti, the Group General Manager, National Petroleum Investment Management Services (NAPMS), made this disclosure while speaking during a tour of the facilities of the NNPCL.
Mr Wunti said the pipelines particularly those around Bonny terminal cannot function due to the activities of criminals.
He also argued that the number of barrels stolen daily is very huge, adding that about 270 barrels per day that were supposed to be loaded in Bonny are no longer going to be loaded because of theft.
“If you’re producing 30,000 barrels a day, every month, you get 1,940 barrels. So what it means is that you can take it to 270 every four days, calculate it in a month; you will have seven cargos on a million barrels, that’s seven million barrels,” he said.
“When you multiply seven million barrels by $100 that is $700 million lost per month and about 150,000 barrels expected are differed; we are not producing due to security challenges,” he added.
The official noted that “the Shell Petroleum Company (SPDC) trunk line, TNP transnational pipeline cannot be operated and this has been like this since March the 3rd that we put in this. Just take your calculator, 150,000, it means if you want to arrive at 1 million barrels per day, it means every week as a minimum, basically for one week alone, it’s four cargo and four cargo is four million barrels. Four million barrels formula bar or $100 is $400 million.
“So, you can do your calculations by yourself, take whatever price you want, take this to multiply by the number of days that have been shortened since March 3rd.”
The NNPC official said Forcados is not completely secure due to some challenges, but assured that they were addressing it, and in two weeks it may be fixed.
“But we also have Brass about 100,000 barrels, which is operated by Agip and is also facing insecurity and vandalism,” he said.
He said the impact of vandal activities caused low crude oil production, interrupted gas supply, countrywide interruption of distribution of petroleum products, refineries’ downtimes, and increasing instability in the oil and gas market.
“I will tell you the major thing that affects us. Nigeria will suffer for it; the revenues are impacted, so we can only appeal to them to rein in themselves, the oil theft situation is regrettable. It’s not going on across the whole of the Niger Delta, there are trunk lines that are more impacted on, I think the Bonny trunk line ranks highest.
“Our major challenge as a country is our capability to respond and that is as a result of several factors, the terrain as well as some incapacity that we have.”
Continuous oil theft and infrastructural deficit have seen Nigeria lose its status as Africa’s top oil producer, sitting behind Angola.
By Dipo Olowookere
The decision of investors to cherry-pick stocks with sound fundamentals across categories further lifted the Nigerian Exchange (NGX) Limited by 1.28 per cent on Wednesday.
This selective buying of equities was inspired by the earnings season, as companies that have already released their 2025 financial statements have impressed market participants.
However, the insurance sector experienced profit-taking yesterday, causing its index to go down by 0.84 per cent at the close of business.
But this loss was offset by the 2.33 per cent growth achieved by the banking index, with the other remaining sectors also closing in green. The energy industry appreciated by 1.52 per cent, the industrial goods landscape expanded by 1.20 per cent, and the consumer goods counter improved by 1.09 per cent.
As a result, the All-Share Index (ASI) went up by 2,128.61 points to 168,030.18 points from 165,901.57 points and the market capitalization rose by N1.366 trillion to N107.861 trillion from the previous day’s N106.495 trillion.
Yesterday, 53 equities ended on the advancers’ chart and 26 equities finished on the laggards’ table, indicating a positive market breadth index and strong investor sentiment.
DAAR Communications led the gainers’ group after it surged by 10.00 per cent to sell for N1.87, Berger Paints appreciated by 10.00 per cent to N66.00, Fortis Global Insurance advanced by 10.00 per cent to 22 Kobo, RT Briscoe also jumped by 10.00 per cent to N10.45, and First Holdco improved by 9.92 per cent to N48.75.
Conversely, Red Star Express led the losers’ gang after it went down by 9.97 per cent to N17.15, Deap Capital also fell by 9.97 per cent to N6.86, Union Homes REIT slipped by 9.95 per cent to N69.25, McNichols dipped by 9.93 per cent to N6.53, and eTranzact lost 9.89 per cent to trade at N16.85.
At the midweek’s session, traders transacted 694.8 million shares worth N20.6 billion in 42,095 deals compared with the 736.4 million shares valued at N24.7 billion traded in 46,026 deals a day earlier, showing a shortfall in the trading volume, value, and number of deals by 5.65 per cent, 16.60 per cent, and 8.54 per cent, respectively.
Chams ended the day as the busiest stock after trading 57.4 million units worth N256.3 million, Universal Insurance transacted 56.2 million units valued at N88.8 million, First Holdco exchanged 35.3 million units for N1.7 billion, Deap Capital traded 26.8 million units valued at N187.0 million, and Wema Bank sold 26.7 million units worth N674.6 million.
By Adedapo Adesanya
Oil prices surged about 3 per cent on Wednesday after it was reported that planned talks between the United States and Iran on Friday could collapse.
Brent futures grew by $2.13 or 3.16 per cent to $69.46 a barrel, while the US West Texas Intermediate (WTI) futures gained $1.93 or 3.05 per cent to trade at $65.14 per barrel.
The US and Iran had agreed to meet on Friday in Istanbul, with other Middle Eastern countries participating as observers.
However, the Iranians said on Tuesday that they wanted to move the talks to Oman and hold them in a bilateral format, to ensure that they focused only on nuclear issues and not other matters like missiles that are priorities for the US and countries in the region.
US officials were at first open to the request to change the location but then rejected it.
Later, the talks scheduled for Friday were back on, after several Middle Eastern leaders urgently lobbied the Trump administration on Wednesday afternoon not to follow through on threats to walk away.
The talks will be held in Muscat, the capital of Oman, on Friday.
The tensions between the US and Iran and heightened fears of potential disruption to oil flows through the Strait of Hormuz, where 20 per cent of the world’s oil supply passes through.
Members of the Organisation of the Petroleum Exporting Countries (OPEC) such as Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq export most of their crude via the strait.
Recall that the US military on Tuesday shot down an Iranian drone that aggressively approached a US aircraft carrier in the Arabian Sea. Separately, a group of Iranian gunboats approached a US-flagged tanker north of Oman.
The US Energy Information Administration (EIA) said on Wednesday that US crude stocks fell last week as a winter storm gripped large swaths of the country.
US crude oil inventories fell by 3.5 million barrels to 420.3 million barrels last week, as oil output slid to the lowest level since November 2024, the EIA said.
The EIA’s data release follows figures by the American Petroleum Institute (API) that were released a day earlier, which suggested that crude oil inventories fell by a colossal 11.1 million barrels.
By Modupe Gbadeyanka
Dangote Petroleum Refinery and Petrochemicals has described reports making the rounds that it was importing finished petroleum products like premium motor spirit (PMS), otherwise known as petrol, diesel, and others into Nigeria as false and misleading.
In a chat with newsmen on Wednesday, the company clarified that what it brought into the country were merely intermediate or semi‑processed materials, which it emphasized is a standard practice within the global refining industry.
Intermediate materials—such as naphtha, straight‑run gas oil, vacuum gas oil (VGO), reformate, alkylate and isomerate—serve as feedstock for additional refining into finished fuels like petrol and diesel, as well as petrochemicals.
The chief executive of the facility, Mr David Bird, told journalists in Lagos that as a state‑of‑the‑art and large‑scale merchant refinery, DPRP refines crude oil and processes intermediate feedstocks into premium petroleum products and petrochemicals that meet the highest international standards, noting that this practice does not amount to importing finished petroleum products.
Mr Bird highlighted that Dangote Refinery operates using a European and Asian merchant refinery model, which integrates advanced refining, blending and trading systems designed to meet modern quality and environmental benchmarks.
“DPRP produces high‑quality fuels aligned with international environmental and health standards. Our gasoline is lead‑free and MMT‑free with 50 parts per million sulphur, while our diesel meets ultra‑low sulphur specifications. These standards help reduce emissions, protect engines, and safeguard public health,” the chief executive stated.
Mr Bird reaffirmed that the Dangote Refinery supplies only fully refined, market‑ready products, adding that semi‑finished fuels are unsuitable for vehicles and are therefore not released into the Nigerian market. Samples of both intermediate feedstocks and fully refined products were displayed to journalists during the briefing.
He further noted that the refinery was established to end years of exposure to substandard fuel in Nigeria by providing products that meet stringent global standards, adding that DPRP’s products are now exported to international markets, highlighting their quality and competitiveness.
The refinery chief stressed the company’s commitment to transparency in its operations and engagements with regulators, urging the media to help properly educate the public on the clear distinction between intermediate products and finished fuel.
“It is unfortunate that some individuals are deliberately spreading misleading narratives about a refinery that has transformed Nigeria and the West African region from a dumping ground for substandard fuels into a hub for high‑quality products,” he said, adding that the refinery’s flexible design allows it to process a diverse mix of crude oils and intermediate feedstocks into premium finished fuels.
Mr Bird assured Nigerians of sustained product availability, noting that the refinery has contributed significantly to easing fuel scarcity, stabilising the naira, and reducing pressure on foreign exchange.
On his part, the Chief Brand and Communications Officer of Dangote Industries Limited, Mr Anthony Chiejina, urged journalists to be precise in their choice of terminology, warning that inaccurate reporting could misinform the public and create unnecessary panic.
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