Economy

Nigerian Oil and Gas Firms Pay N71.6bn as Flaring Penalties

Published

2 years ago

13/06/2023

By Adedapo Adesanya

Data from the Central Bank of Nigeria (CBN) has revealed that oil and gas firms operating in the country paid N71.6 billion to the federation account in 2022 as penalties for gas flaring.

The CBN, in its economic report for 2022, disclosed that gas flare penalties accounted for 1.54 per cent of the federation’s gross oil earnings, irrespective of the fact that the country recorded zero revenue from gas sales in 2022.

Giving a breakdown of the revenue from the gas flaring penalties, the CBN stated that in January, February, March, April, May and June 2022, revenue from gas flaring penalties stood at N6.457 billion, N6.565 billion, N6.304 billion, N5.725 billion, N7.778 billion and N4.917 billion, respectively.

Meanwhile, N7.732 billion, N5.24 billion, N3.738 billion, N4.133 billion, N5.972 billion and N7.055 billion were received from the same source in July, August, September, October, November and December 2022, respectively.

In comparison, the CBN reported that the revenue earned from gas flare penalties in 2022 was 25.84 per cent lower than the N96.544 billion recorded in 2021, where in January, February, March, April, May and June 2021, N5.795 billion, N7.254 billion, N5.53 billion, N13.353 billion, N6.501 billion and N6.283 billion, respectively.

In addition, in July, August, September, October, November and December 2021, the financial sector regulator stated that revenue from gas flared penalties stood at N6.167 billion, N12.336 billion, N7.929 billion, N6.379 billion, N8.404 billion and N10.611 billion, respectively.

Furthermore, the central bank stated that banks’ credit to the Nigeria oil and gas industry appreciated by 30.2 per cent from N1.466 trillion as at the end of 2021 to N1.908 trillion at the end of 2022.

The CBN noted that credit to the oil and gas sector accounted for 6.48 per cent of the banks’ total credit to the private sector, valued at N29.446 trillion.

Also, the bank disclosed that banks’ credit to the power and energy sector in 2022 stood at N297.408 billion, dropping by 12.26 per cent compared with N338.945 billion recorded at the end of 2021.

According to the CBN data, credit to the power sector in 2022 accounted for 1.01 per cent of banks’ total credit to the private sector.

As of December 31, 2021, the total credit facilities advanced by the banks to the private sector stood at N24.378 billion, 20.79 per cent lower compared with the N29.446 trillion advanced to the private sector in 2022.

Economy

Geo-Fluids, Afriland Properties Lift NASD Bourse by 0.13%

Published

7 hours ago

11/01/2025

Adedapo Adesanya

By Adedapo Adesanya

The duo of Geo-Fluids Plc and Afriland Properties Plc propelled the NASD Over-the-Counter (OTC) Securities Exchange up 0.13 per cent on Friday, January 10.

Investors gained N1.4 billion during the trading session after the market capitalisation of the bourse ended at N1.053 trillion compared with the previous day’s N1.052 trillion, and the NASD Unlisted Security Index (NSI) increased at the close of business by 4.07 points to wrap the session at 3,073.93 points compared with 3,069.86 points recorded at the previous session.

Geo-Fluids added 25 Kobo to its value to close at N4.85 per unit compared with the previous session’s N4.60 per unit, and Afriland Properties Plc gained 24 Kobo to close at N16.25 per share versus Thursday’s closing price of N16.01 per share.

There was a 35.4 per cent fall in the volume of securities traded in the session as investors exchanged 4.3 million units compared to 6.6 million units traded in the preceding session, the value of shares traded yesterday went down by 37.4 per cent to N17.2 million from the N27.5 million recorded a day earlier, and the number of deals decreased by 47.2 per cent to 19 deals from the 36 deals recorded in the preceding day.

FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 1.9 million units worth N74.2 million, followed by 11 Plc with 12,963 units valued at N3.2 million, and Industrial and General Insurance (IGI )Plc with 10.7 million units sold for N2.1 million.

IGI Plc closed the day as the most active stock by volume (year-to-date) with 10.6 million units sold for N2.1 million, trailed by FrieslandCampina Wamco Nigeria Plc with 1.9 million units valued at N74.2 million, and Acorn Petroleum Plc with 1.2 million units worth N1.9 million.

Economy

Naira Depreciates to N1,543/$1 at Official Market

Published

8 hours ago

11/01/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira witnessed a depreciation on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, January 10.

According to data from the FMDQ Exchange, the local currency weakened against the greenback yesterday by 0.12 per cent or N1.80 to sell for N1,543.03/$1 compared with the preceding day’s N1,541.23/$1.

The pressure on the domestic currency came as the access granted to the Bureaux de Change (BDC) operators by the Central Bank of Nigeria (CBN) to purchase FX from the official market through the Electronic Foreign Exchange Matching System (EFEMS) platform prepares to end next week, precisely on January 19.

The CBN had given a 42-day window to the operators to access the platform to help stabilise the Naira in December, and this expires next week.

On Friday, the Nigerian currency tumbled against the Pound Sterling in the official market by N30.78 to sell for N1,889.29/£1 compared with the previous day’s N1,858.51/£1, but gained N5.48 against the Euro to finish at N1,583.81/€1, in contrast to Thursday’s rate of N1,589.29/€1.

As for the parallel market, the Nigerian Naira remained stable against the US Dollar during the trading session at N1,650/$1, according to data obtained by Business Post.

In the cryptocurrency market, it was bearish as the US economy added 256,000 jobs last month, the Bureau of Labor Statistics reported on Friday, topping forecasts for 160,000 and up from 212,000 in November (revised from an originally reported 227,000).

However, the readings came after a number of recent economic reports triggered a broad-market pullback across asset classes such as crypto as investors quickly scaled back the idea of a continued series of Federal Reserve rate cuts in 2025.

Cardano (ADA) fell by 3.6 per cent to trade at $0.921, Solana (SOL) slumped by 2.8 per cent to $185.93, Ethereum (ETH) depreciated by 1.4 per cent to $3,233.27, Litecoin (LTC) lost 1.3 per cent to finish at $103.62, Dogecoin (DOGE) shed 0.5 per cent to sell at $0.3315, Bitcoin (BTC), waned by 0.2 per cent to $94,154.43, and Binance Coin (BNB) went south by 0.1 per cent to $693.30.

On the flip side, Ripple (XRP) jumped by 1.5 per cent to settle at $2.34, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 each.

Economy

Customs Street Crumbles by 0.08% as Profit-Takers Take Charge

Published

8 hours ago

11/01/2025

Dipo Olowookere

By Dipo Olowookere

Profit-takers took control of Customs Street on Friday, plunging it by 0.08 per cent at the close of trading activities.

The sell-offs were across all the key sectors of the Nigerian Exchange (NGX) Limited on last trading session of the week.

The insurance space went down by 1.53 per cent, the banking index depreciated by 0.41 per cent, the consumer goods sector weakened by 0.16 per cent, and the energy counter slumped by 0.08 per cent, while the industrial goods sector closed flat.

At the close of business, the All-Share Index (ASI) tumbled by 79.68 points to 105,451.06 points from 105,530.74 points and the market capitalisation retreated by N48 billion to N64.303 trillion from N64.351 trillion.

Yesterday, investors traded 1.5 billion shares worth N19.4 billion in 12,877 deals compared with the 489.5 million shares worth N13.1 billion transacted in 13,010 deals in the preceding day, indicating a decline in the number of deals by 1.02 deals and a rise in the trading volume and value by 203.14 per cent and 48.09 per cent, respectively.

Wema Bank was the busiest stock with 976.2 million units valued at N9.8 billion, Tantalizers traded 53.0 million units worth 129.6 million, Universal Insurance sold 34.8 million units for N26.8 million, Access Holdings exchanged 33.9 million units valued at N843.8 million, and Nigerian Breweries traded 27.3 million units worth N873.3 million.

The heaviest loss was suffered by Sunu Assurances with a decline of 9.99 per cent to trade at N7.30, Eunisell shed 9.96 per cent to N17.35, SAHCO crumbled by 9.87 per cent to N30.15, DAAR Communications plunged by 9.28 per cent to 88 Kobo, and Sovereign Trust Insurance went down by 7.04 per cent to N1.32.

On the flip side, C&I Leasing gained 10.00 per cent to close at N4.51, Honeywell Flour appreciated by 9.99 per cent to N10.02, Trans Nationwide Express jumped by 9.89 per cent to N2.00, RT Briscoe rose by 9.83 per cent to N2.57, and Secure Electronic Technology grew by 9.46 per cent to 81 Kobo.

Business Post reports that the bourse ended with 33 price gainers and 25 price losers, indicating a positive market breadth index and strong investor sentiment.