Economy
Nigeria to Become Urea Exporter in 2028—NMDPRA Chief
By Adedapo Adesanya
The chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr Saidu Aliyu Mohammed, has declared that Nigeria would become a urea-exporting nations within the next 24 months.
Mr Mohammed made the assertion during an operational visit to key midstream and downstream facilities in Port Harcourt, including the Indorama Eleme Petrochemicals Complex, as part of an executive regulatory activity mandated by the Petroleum Industry Act (PIA), 2021.
According to him, the expansion of facilities at Indorama and other major investments, such as the Dangote Fertiliser Plant, signal a turning point for Nigeria’s oil and gas value chain.
“We have no business importing any of those things,” the NMDPRA chief said. “With the expansion of what is going on today at Indorama and many other places, including Dangote Fertilisers, I am sure that in the next 24 months Nigeria will join the league of urea-exporting countries, and that is where we should be.”
He described the midstream segment of the oil and gas industry as a critical but capital-intensive area that requires between $30 billion and $50 billion in investments to position Nigeria as a regional hub, not only for oil and gas, but also for secondary derivatives and value-added products. These, he said, include fertilisers, urea, and other products derived from hydrocarbon resources.
“What we have seen in Indorama is really a manifestation of what Nigeria needs to have. We need a lot of these in the midstream—fertiliser plants and every value-addition opportunity from our hydrocarbon sources. That is what the nation needs to propel growth.”
He acknowledged that while such ambitions had existed for years, progress had been slow due to various challenges; however, he noted that effective partnerships with the private sector were now yielding tangible results.
“Today, we have found the right footsteps in partnership with the private sector. Indorama has really shown us that growth is growth, and we can continue to grow in that same direction,” he said.
The NMDPRA boss explained that the visit to facilities in Rivers State was aimed at assessing the operational status and availability of critical midstream and downstream infrastructure, reviewing alignment between the regulator and its licensees, and engaging investors to ensure optimal regulatory support. Other objectives include improving regulatory operational excellence, promoting health and safety standards, and presenting the Nigerian public with an accurate assessment of sector operations.
He noted that Rivers State remains a strategic hub for the industry, with diverse facilities spanning gas processing, manufacturing, and refining. “There is no sample that we cannot take here,” he said.
“If we want to see gas processing, manufacturing, or refining, we can. We selected just a few facilities to have an overview of what is going on, but we cannot do that in only three days. I will be coming back because there are many industries within Rivers State that we still need to cover,” he added.
Mr Mohammed stressed that the role of the Authority is to facilitate investments by creating an enabling environment that allows operators to expand while attracting new investors.
He added that the executive regulatory exercise, which has commenced in the South-South region, will be replicated across the country under his leadership.
The CEO of Indorama, Mr Munish Jindal, described the visit by the NMDPRA leadership as timely and highly significant. He said regulatory visits help authorities gain a firsthand understanding of operations and the progress made on the ground.
“These visits are always very important,” Jindal said. “It is important for the regulator to come and see with their own eyes what is happening and understand the changes that have been brought. We are highly appreciative that since assuming office, Engr. Saidu Aliyu Mohammed has visited with his full team to see and visualise what has been delivered here in the last 20 years.”
Mr Jindal recalled that the NMDPRA chief had been involved in the sector since the early days of the Eleme Petrochemicals Company Limited (EPCL), when plans for Phase 2 and Phase 3 expansions were conceived. “Those dreams have been delivered today by Indorama,” he noted.
He also commended regulatory authorities for their improved understanding of the midstream industry over the years, describing it as critical to the sector’s growth. While expressing support for the new regulatory leadership, Jindal disclosed that Indorama had raised concerns over certain regulatory requirements which, in the company’s view, are no longer relevant to manufacturing-focused midstream operators.
“We have made a keen request to the Authority to kindly look into some issues that may not be relevant to the manufacturing industry and consider granting exemptions where necessary,” he said.
The NMDPRA said it remains committed to ensuring that the objectives of the Federal Government and the Nigerian people are fully reflected in the business outlooks of key industry stakeholders, as the country pursues its ambition of becoming both an energy hub and a centre for oil and gas derivatives in Africa.
By Adedapo Adesanya
The duo of 11 Plc and Central Securities Clearing System (CSCS) Plc helped flip the NASD Over-the-Counter (OTC) Securities Exchange from a three-day losing streak to a 0.27 per cent gain on Thursday, August 13.
11 Plc, which used to be known as Mobil Nigeria, garnered N22.28 to close at N245.03 per unit compared with the preceding day’s N222.75 per unit, and CSCS Plc appreciated by N3.76 to N109.76 per share from N106.00 per share.
The gains offset the N10.00 loss recorded by FrieslandCampina Wamco Nigeria Plc, closing at N160.00 per unit compared with N170.00 per unit it finished at midweek.
When the bourse closed for the day, the market capitalisation increased by N7.31 billion to N2.727 trillion from N2.720 trillion, and the NASD Security Index (NSI) went up by 12.17 points to 4,544.20 points from 4,532.03 points.
Yesterday, the volume of securities exchanged by investors skyrocketed by 1,173.8 per cent to 1.9 million units from 150,340 units, the value of securities jumped by 1,029.5 per cent to N210.8 million from N18.7 million, and the number of deals soared by 6.3 per cent to 34 deals from 32 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 79.1 million units exchanged for N5.7 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.
By Adedapo Adesanya
The Naira-US Dollar exchange rate remained unchanged in the black market segment of the foreign exchange (FX) market on Thursday, August 13, at N1,395/$1.
But at the GTBank forex desk, the Nigerian currency gained N3 against the greenback during the session to settle at N1,367/$1, in contrast to Wednesday’s rate of N1,370/$1.
Similarly, the local currency further appreciated against the Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) yesterday by N2.93 or 0.22 per cent to trade at N1,357.65/$1 compared with the previous day’s N1,360.58/$1.
Equally, the Nigerian Naira improved its value against the Pound Sterling at the official market by N6.94 to quote at N1,834.05, in contrast to the preceding session’s N1,840.99/£1, and against the Euro, it firmed up by N5.01 to close at N1,567.00/€1 versus Wednesday’s N1,572.01/€1.
Data from the Central Bank of Nigeria (CBN) revealed that interbank FX transactions plunged by 53 per cent to $79.097 million from $168.758 million, as banks recorded a sharp cutback in customers’ US dollar demand, with the number of deals down to 98 from 190.
The apex bank announced the removal of restrictions preventing financial institutions that accessed its Standing Lending Facility (SLF) from participating in primary government securities transactions and FX.
Under a revised framework, institutions that accessed the CBN’s discount window will no longer lose access to the facility because of their participation in the NAFEM or primary auctions of government securities.
As for the cryptocurrency market, prices fell as the expected US inflation report failed to push the asset beyond its established trading range.
The US Bureau of Labour Statistics reported that headline inflation rose 0.1 per cent month over month in July and slowed to 3.4 per cent annually from 3.5 per cent in June. Core CPI, which excludes food and energy, increased 0.2 per cent during the month and 2.5 per cent from a year earlier.
Cardano (ADA) lost 1.3 per cent to close at $0.1821, TRON (TRX) also shrank by 1.3 per cent to $0.3335, Solana (SOL) fell by 1.0 per cent to $75.60, Dogecoin (DOGE) also declined by 1.0 per cent to $0.06981, Bitcoin (BTC) dropped 0.9 per cent to sell at $63,152.59, Ethereum (ETH) dipped by 0.8 per cent to $1,877.07, Binance Coin (BNB) slumped by 0.7 per cent to $608.42, and Ripple (XRP) depreciated by 0.5 per cent to $1.00, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Dipo Olowookere
Weak investor sentiment further crumbled Nigeria’s stock exchange by 0.39 per cent on Thursday, as sell-offs persisted.
Data showed that all the major sectors of the Nigerian Exchange (NGX) Limited ended in the red, with the consumer goods index down by 1.22 per cent. The industrial goods space retreated by 0.75 per cent, the insurance segment depreciated by 0.55 per cent, the banking sector tumbled by 0.27 per cent, and the energy counter receded by 0.07 per cent.
At the close of business, the All-Share Index (ASI) went down by 949.71 points to 243,017.38 points from 243,967.09 points, and the market capitalisation dipped by N613 billion to N156.881 trillion from N157.494 trillion.
Unilever Nigeria led the losers’ chart after it depleted by 9.97 per cent to N118.30, Chellarams dropped 9.66 per cent to close at N10.75, NDIF slumped by 9.55 per cent to N147.70, DAAR Communications crashed by 9.25 per cent to N1.57, and Cornerstone Insurance slipped by 9.09 per cent to N5.00.
On the flip side, International Energy Insurance topped the gainers’ log after it grew by 10.00 per cent to N4.84, John Holt expanded by 9.89 per cent to N10.00, Trans-Nationwide Express rose by 9.75 per cent to N2.59, SUNU Assurances gained 8.48 per cent to settle at N3.58, and NEM Insurance appreciated by 6.25 per cent to N34.00.
Business Post reports that there were 16 appreciating stocks and 41 depreciating stocks, representing a negative market breadth index.
Yesterday, 4.2 billion equities worth N50.7 billion were transacted in 41,454 deals versus the 1.5 billion equities valued at N20.9 billion that exchanged hands in 39,085 deals at midweek.
This indicated that the trading volume, value, and number of deals surged by 180.00 per cent, 142.58 per cent, and 6.06 per cent, respectively.
Cornerstone Insurance was the busiest equity on Thursday, with a turnover of 3.6 billion units valued at N18.4 billion, VFD Group exchanged 151.8 million units worth N1.9 billion, Chams sold 33.8 million units for N153.7 million, First Holdco transacted 28.3 million units worth N3.9 billion, and CMFC traded 24.6 million units valued at N78.2 million.
