Economy
Nigerian Economy on Solid Path to Recovery with 5.01% Growth—FG
By Modupe Gbadeyanka
The federal government has expressed satisfaction with the 5.01 per cent growth in the gross domestic product (GDP) for the second quarter of 2021.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said this shows that the Nigerian economy was on the solid path to recovery.
Mrs Ahmed, while speaking at an Executive Intelligence Management Course 14 of the National Institute for Security Studies (NISS), Bwari, Abuja, said the administration of Mr Muhammadu Buhari has shown a strong commitment to sustainable development, governance and security despite the nation’s limited revenues.
At the event themed Governance, Security and Sustainable Development in Africa: Nexus, Challenges and Prospects, the Minister said, “The most recent GDP data which reports real growth of 5.01 per cent in the second quarter of 2021 is very encouraging news as it indicates the Nigerian economy is on a solid path to recovery.
“It is important to note that much of the growth was driven by the expansion of the non-oil sector of the economy where most Nigerians are employed.”
She further said due to its importance to every sector, especially the economy, the central government has made funds available to security.
“As an example, about 86 per cent of the 2021 Supplementary Budget was dedicated to the capital and recurrent expenditure needs of the security agencies to supplement the allocations in the 2021 amended budget,” she said.
While speaking on some key governance and security initiatives spearheaded by the Ministry and its agencies, Mrs Ahmed said that through Project Lighthouse, the federal government has been able to aggregate N5.2 trillion worth of debts owed to the government by third parties, of which N49.7 billion of this amount has been recovered.
She also said another initiative is the Treasury Single Account (TSA), a unified structure of government bank accounts that enables consolidation and optimum utilisation of government cash resources.
In addition, she said her ministry came up with the Government Integrated Financial Management Information System (GIFMIS), an IT-based system for budget management and accounting to improve public financial management processes and enhance accountability and transparency across all ministries, departments and agencies (MDAs) of government.
Mrs Ahmed also said in order to modernise tax administration in Nigeria, the Federal Inland Revenue Service (FIRS) introduced TaxPro Max, while the Nigeria Customs Service (NCS) designed the e-Customs Project meant to fully automate administrative processes by introducing innovative measures that eliminate paper-based functions.
The Minister, in addition, said another policy is the Road Infrastructure Tax Credit Scheme (RITCS) launched by President Buhari through Executive Order Number 7 signed on January 25, 2019.
“It is designed to leverage private sector capital, efficiency and expertise to construct, repair and maintain critical road infrastructure in key economic corridors and industrial clusters in Nigeria. The scheme relieves the government of the burden of funding significant outlays for road projects through the annual budget.
“Essentially, the RITCS utilises tax expenditures, by way of tax credits, to finance the construction of critical road and bridge infrastructure through an innovative public-private partnership (PPP) mechanism that incentivises private sector participation. Since inception, Mr President has approved a total of 33 road projects, totalling 1,564.95 km being undertaken in 19 States across the six geo-political zones of the country,” she said.
She also highlighted the Open Government Partnership (OGP), an international multi-stakeholder initiative focused on improving transparency, accountability, citizen participation and government responsiveness to citizens through technology and innovation.
“Since joining the partnership in July 2016, Nigeria has made progress in deepening transparency, accountability and openness in the management of public resources, especially in terms of the budget process,” she said.
Mrs Ahmed further stated that the Office of the Accountant General of the Federation (OAGF) in December 2019 launched the Open Treasury Portal, a platform aimed to enhance the accountability of government by detailing and tracking federal government spending data through the publishing of monthly fiscal accounts, as well as daily treasury and payment reports amongst others by MDAs.
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.
