Economy
Nigeria May Lose 44m Barrels of Crude Oil in 2019
By Adedapo Adesanya
Governor of Edo State, Mr Godwin Obaseki, has disclosed that Nigeria lost about 22 million barrels of its crude oil production to oil theft and vandalism between January and June 2019.
Governor Obaseki was quoted saying this in a statement issued by Mr Ndu Ughamadu, spokesman for the Nigerian National Petroleum corporation (NNPC), in the nation’s capital, Abuja on Thursday.
He said that if nothing was done to stop this, that the country was bound to have a major problem on its hands and that the figure could double by the end of the year.
The Governor, who also serves as Chairman of the Ad-hoc Committee of the National Economic Council on Crude Oil Theft, spoke at a stakeholders meeting held at the NNPC towers.
He further stated the menace of oil theft and pipeline vandalism were beginning to pose a threat to the Nigerian economy.
The Governor then used the opportunity to call on stakeholders to join forces and work towards eradicating the menace of crude oil theft that was currently skyrocketing in the country.
It would be recalled that the NNPC Monthly Financial and Operations Report (MFOR) for June revealed a staggering 77 percent rise in cases of oil pipeline vandalism across its network of pipeline infrastructure.
According to the report, 106 pipeline points were breached, indicating an alarming increase from the 60 points of oil pipeline vandalised in May 2019.
The meeting was graced by the Group Managing Director of NNPC, Malam Mele Kyari, and representatives of Governors of oil producing states including Delta, Bayelsa, Ondo, Cross River, Akwa Ibom and Rivers.
Also in attendance were representatives of the Police, Navy, Army, Civil Defence and the International Oil Companies (IOCs) and some indigenous operators
By Adedapo Adesanya
Brent crude jumped over $100 per barrel on Thursday, rising by $6.62 or 7 per cent to $100.69 per barrel, as Yemen’s Houthis attacked two Saudi oil tankers in the Red Sea, causing further global supply disruptions following a near-halt in trade through the Strait of Hormuz.
The international crude oil benchmark has now climbed roughly 20 per cent in about two weeks as repeated attacks on commercial shipping, renewed fighting involving Iran, and mounting export disruptions have steadily erased expectations of a quick return to normal oil flows.
Also, the US West Texas Intermediate (WTI) crude chalked up $5.36 or 6.2 per cent to settle at $92.19 a barrel.
Houthi claimed that the group struck two Saudi oil tankers in the Bab el-Mandeb Strait after declaring a naval blockade of Saudi exports earlier this week.
Several vessels reportedly altered course or delayed transits through the chokepoint, threatening the export route Saudi Arabia has relied on to bypass disruptions in the Strait of Hormuz.
Market analysts noted that the escalation adds to the near-halt in Hormuz traffic and the sharp reduction in Iranian exports, intensifying concerns over near-term global availability.
Analysts estimate that the Strait of Hormuz and Bab el-Mandeb carry the equivalent of roughly a quarter of the world’s oil supply.
As a result of fewer shipments exiting the strait, loading activity within the Gulf has fallen to 2.5 million barrels per day over the past seven days, compared with 6 million barrels per day over the past 30 days
However, following the attacks, two Chinese supertankers carrying a combined 4 million barrels of Saudi Arabian oil managed to exit the Red Sea via the Bab el-Mandeb Strait on Thursday.
Meanwhile, US President Donald Trump promised “major military punishment” for Iran and its Houthi allies.
Goldman Sachs said Brent might exceed $120 a barrel in the fourth quarter and average $100 next year if the strait remains disrupted through 2027, with further upside if the Bab el-Mandeb Strait and Suez Canal also suffer persistent disruption.
Kazakhstan has begun cutting oil production after drone attacks shut down tanker loadings at the Caspian Pipeline Consortium terminal on the Black Sea.
Amid this development, seven core members of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+), namely Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman, are likely, when they meet on August 2, to increase their output target by about 188,000 barrels per day for September.
By Adedapo Adesanya
The National Insurance Commission (NAICOM) has said the passage of the National Insurance Regulatory Commission Bill by the Senate will unlock greater investment in Nigeria by strengthening regulatory oversight, enhancing investor confidence and creating a more transparent and accountable insurance industry.
Describing the development as a significant milestone in efforts to strengthen the regulatory framework of Nigeria’s insurance industry, the commission particularly praised the leadership of the Senate and the Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Mr Adetokunbo Mukail Abiru, for their roles in securing the successful passage of the Bill in the Red Chamber.
According to NAICOM, the proposed legislation will enhance regulatory oversight, improve transparency and accountability, and boost public confidence in the insurance sector.
The commission said the bill is expected to attract greater investment into the industry, promote sustainable growth, and deliver benefits to policyholders, insurance operators, and the wider economy.
NAICOM also noted that the Senate’s commitment to advancing reforms in the insurance sector would support the modernisation of insurance regulation and strengthen financial inclusion across the country.
It added that the passage of the Bill reflects the legislature’s resolve to protect the interests of citizens while promoting the stability of Nigeria’s financial system.
The Commission reaffirmed its readiness to ensure the effective implementation of the new legal framework once the Bill receives presidential assent, pledging continued collaboration with industry stakeholders to position the insurance sector as a key driver of national economic development.
Earlier this week, the Senate passed the much-anticipated bill to repeal and re-enact the law establishing the National Insurance Commission (NAICOM), paving the way for the regulatory agency to be renamed the Insurance Regulatory Commission (IRC).
The legislation, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was passed after the Senate considered and adopted the report of its committee on banking, insurance and other financial institutions.
According to lawmakers, the outgoing National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the country’s insurance business and projections.
By Aduragbemi Omiyale
About $2.5 billion has been raised by Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) from its private equity placement.
The exercise, Business Post learned, attracted broad participation from international and African institutional investors, sovereign-related investment vehicles, development finance institutions, strategic partners, and individual investors.
Notable participants included the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank), reflecting deep and diversified confidence in DPRP’s long-term prospects.
The transaction is believed to be Africa’s largest publicly disclosed primary equity private placement, marking a significant milestone in the history of the organisation and demonstrating strong investor confidence in the refinery’s long-term growth strategy, including raising its current capacity from 700,000 barrels per day to 1.4 million barrels per day.
The capital raise is the first equity funding round involving external investors beyond the company’s legacy shareholder base, underscoring the growing attractiveness of DPRP as a world-class energy and industrial enterprise. The strong investor response further reinforces confidence in the company’s vision and its ability to deliver sustainable value over the long term.
The proceeds from the placement will be deployed to support the continued expansion of the refinery and petrochemical complex, strengthen the company’s capital structure, and enhance financial flexibility to pursue future growth opportunities.
With the successful completion of the placement, DPRP is well-positioned to accelerate its long-term growth strategy while strengthening Africa’s energy security through world-scale refining and petrochemical capacity.
“This transaction represents a strategic step to deepen and further institutionalise the Enterprise’s shareholder base, while raising capital to complement our internal cash flows and external funding as DPRP advances its expansion agenda.
“It also demonstrates our unwavering commitment to developing Africa’s refining and petrochemical capacity, reducing dependence on imported petroleum products and strengthening the continent’s energy security,” the chief executive of Dangote Industries Limited and Chairman of DPRP, Mr Aliko Dangote, stated.
Also, the chief executive of Dangote Petroleum Refinery, Mr David Bird, said the overwhelming investor response validates the company’s operational performance and growth outlook.
“The exceptional demand we witnessed is a testament to our operational excellence, execution capability and the confidence investors have in DPRP’s leadership and future potential,” he remarked.
