Economy
NLNG Not For Sale—FG
By Modupe Gbadeyanka
Minister of State for Petroleum Resource, Mr Ibe Kachikwu, has disclosed that federal government has no intention to put the Nigerian Liquefied Natural Gas Limited (NLNG) up for sale as being speculated.
Mr Kachikwu made this known on Monday while appearing before an investigative hearing established by the House of Representatives to look into the sale of national assets.
The probe panel is led by Mr Fred Agbedi, a lawmaker from Bayelsa State, who is the Chairman of the House Committee on Gas Resources and Allied Matters.
The Minister, who was represented by the Director in charge of Gas Resources in the Ministry, Mrs Esther Ifejika, disclosed that NLNG would not be sold to investors for whatever reason.
“We are not aware of any plans to sell NLNG by the federal government,” Mr Kachikwu emphatically told the lawmakers.
Also at the hearing, Mrs Ifejika, who said the presentation of the Ministry and that of the Nigerian National Petroleum Corporation (NNPC) were harmonized could not proceed further with the presentation as the committee discovered glaring discrepancies in the documents of the Ministry and that of the NNPC as presented by Bello Rabiu, Chief Operating Officer, (Upstream), who represented the Group Managing Director, Maikanti Baru.
Having rejected both documents for lack of authenticity and signature as observed by members, the panel further queried the NNPC and the Ministry over what it called some staggering increases in the upgrade contract of OML 58 and the execution of the Northern Option Pipeline.
TOTAL E&P who handled the Joint Venture contract said the initial contract sum was $3.451 billion, but was eventually increased to $4.6 billion after consideration of a number of factors.
Given the revelation, members of the panel expressed displeasure over the huge variation in the contracts amounting over $1.15 billion.
Members were however told that the NNPC entered into a JV with Total Exploration and Production Nigeria Limited (TEPNG) and there was a Modified Carry Agreement and award to TEPNG to execute the OML 58 Upgrade 1 in 2008, Obite-Ubeta-Rumuji (OUR) pipeline in 2010, and the Northern Option Pipeline in 2011 respectively.
Explaining the process which he said followed laid down procurement processes, Rabiu of the NNPC, informed the panel that no money had been paid on the variations.
He said following the variations raised by the contractor, the board of the corporation suspended the procurement with a view to subjecting same to the Federal Executive Council (FEC), approval, adding that same is being waited.
According to Patrick Olinma, who represented Total’s managing director at the hearing, contract for the upgrade of OML 58 upgrade 1 and the execution of the Northern Option Pipeline were awarded to Saipim/Ponipcelli/Desicon (SPD) and Sapim/Desicon (SD) Consortiums as the major contractors at an initial contract cost ceiling of $1.665 billion and $472million with a completion date of 2012 and 2013.
“However, during execution, these projects encountered some challenges which led to delays and an increased cost of over $3.8 billion and $921m respectively as at December, 2015 and an additional $79m and about $921m incurred upon full completion resulting in the expenditure of about $175m and $170m respectively,” he said.
Similarly, the contract for the execution of the Obite-Ubeta-Rumuji (OUR) pipeline project in 2010 was awarded to Zahem/Baywood Consortium as the major contractor at the carrying cost of $269million, $293 million and $469million.
Members however, posited that the reason for the variations was because the contractor engaged by Total was incompetent resulting in the extra cost.
But the Total representative said that they had a duty to comply with the local content act and that they were told there were 14 communities which in reality were 74 communities.
The Chairman of the Committee said though the parliament made the law, it did not say that the contractor should be employed as a learning curve, adding that the cost is too staggering to be ignored.
At this point, the panel demanded that both NNPC and Total produce the board’s resolution on the contracts before it was awarded to ensure they comply with procurement laws.
Other requirements include, love of adherence to section 21 of the procurement Act which provides for the constitution of a Procurement Planning Committee, with staff from both sides of the divide deciding the mode of procurement.
Also demanded are the market survey, financial bid evaluation with emphasis on inflation and variation variables, as well as financial and technical bid analysis.
Panel also asked for financial updates on payment, status reports on the projects, saying that the motion’s primary concern dwells on the procurement process.
Additional information from The Nation.
By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries (OPEC) has warned that Nigeria’s economic recovery could come under renewed pressure from persistently high borrowing costs and inflation despite stronger crude oil production and ongoing economic reforms.
In its July Monthly Oil Market Report, OPEC said Nigeria’s near-term economic outlook remains positive, supported by higher oil production, improving macroeconomic stability, stronger business activity and continued reform efforts, but cautioned that inflationary pressures and expensive credit continue to pose significant risks to sustained growth.
According to the report, Nigeria’s economy expanded by 3.9 per cent year-on-year in the first quarter of 2026, marginally below the 4.0 per cent recorded in the final quarter of 2025, indicating that growth has remained close to recent highs.
“Overall, Nigeria’s near-term outlook remains positive, supported by oil production, reform progress, infrastructure investment and stronger business activity, but high inflation, elevated borrowing costs and the need to preserve exchange-rate stability remain important challenges,” OPEC stated.
The organisation noted that the non-oil sector remained the principal driver of economic expansion, with agriculture, manufacturing, construction, trade, finance and insurance contributing significantly to growth.
It added that improved crude oil production had strengthened government revenues, boosted foreign exchange inflows and reinforced the country’s external reserves.
“The non-oil economy continues to provide the main support, with activity driven by agriculture, manufacturing, construction, trade, and finance and insurance, while higher oil output has improved fiscal revenues, foreign-exchange inflows and external buffers. Survey indicators also point to continued near-term momentum,” the report added.
OPEC also pointed to private sector data showing continued expansion in business activity. It said the Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) moderated slightly to 53.4 in June from 54.1 in May but remained above the 50-point threshold, indicating sustained growth in economic activity.
According to the report, stronger output, increased new orders and resilient consumer demand continued to support business expansion, although manufacturing activity softened slightly during the review period.
The oil producers’ group further noted that increased domestic refining capacity, particularly the improved fuel supply from the Dangote Refinery, is expected to strengthen energy availability and ease pressure on imports.
“Higher domestic refining capacity, including improved fuel supply from the Dangote refinery, should continue to support energy availability and reduce some import-related pressures,” OPEC said.
Despite the positive outlook, the organisation expressed concern over rising consumer prices, noting that Nigeria’s inflation rate increased to 15.9 per cent in May from 15.7 per cent in April as food prices continued to weaken household purchasing power.
“Inflation rose further to 15.9 per cent year-on-year in May, up from 15.7 per cent in April, with food prices still putting pressure on household purchasing power. This means that monetary policy is likely to remain cautious, despite improved exchange-rate stability and stronger oil-related inflows,” the report stated.
OPEC said the persistence of inflation is likely to keep monetary policy tight, meaning borrowing costs may remain elevated even as improved oil earnings continue to strengthen Nigeria’s fiscal position and external reserves, adding that balancing price stability with economic growth will remain a key challenge for policymakers in the months ahead.
By Adedapo Adesanya
Central Securities Clearing System (CSCS) Plc bested three price decliners to lift the NASD Over-the-Counter (OTC) Securities Exchange by 0.05 per cent on Thursday, July 16.
The securities depository company gained N2.29 during the trading day to close at N92.64 per share compared with the previous day’s price of N90.35 per share.
As a result, the market capitalisation of the bourse grew by N1.42 billion to N2.592 trillion from N2.590 trillion, while the NASD Security Index (NSI) improved by 2.36 points to 4,318.87 points from 4,316.51 points.
The three price losers yesterday were led by 11 Plc, which shed N10.00 to end at N240.00 per unit versus Wednesday’s closing value of N250.00 per unit, FrieslandCampina Wamco Nigeria Plc lost N2.34 to finish at N147.66 per share compared with the N150.00 per share it closed at midweek, and Food Concepts Plc depleted by 7 Kobo to settle at N2.42 per unit, in contrast to the preceding day’s N2.49 per unit.
A look at the activity chart showed that during the session, the value of transactions soared by 43.3 per cent to N104.1 million from the preceding session’s N65.2 million, and the number of deals jumped by 39.3 per cent to 39 deals from the 28 deals completed a day earlier, while the volume of trades contracted by 75.7 per cent to 1.2 million units from 4.8 million units.
When trading activities ended for the day, Great Nigeria Insurance (GNI) Plc led the activity chart as the most active stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 74.9 million units exchanged for N5.3 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Adedapo Adesanya
The Naira further appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, July 16, by 65 Kobo or 0.04 per cent to sell for N1,381.53/$1, in contrast to Wednesday’s closing value of N1,382.18/$1.
This was buoyed by improved FX liquidity to absorb the high demand for Dollars during the trading session.
However, the local currency depreciated against the Pound Sterling in the official market yesterday by N9.48 to close at N1,866.17/£1 versus the preceding day’s N1,856.69/£1, and lost N2.99 against the Euro to quote at N1,582.68/€1 compared with the midweek rate of N1,576.69/€1.
At the parallel market, the Nigerian currency maintained stability against its United States counterpart at N1,405/$1, and at the GTBank FX desk, it remained unchanged at N1,389/$1.
On Thursday, data from the Central Bank of Nigeria (CBN) showed a surge in interbank FX turnover and deal count. Interbank FX activities at the NFEM window increased sharply by 69 per cent to $205.366 million from $121.727 million reported the previous day.
Nigeria’s gross external reserves continue to rise, supported by steady foreign exchange inflows from hydrocarbon receipts, remittances and foreign portfolio investments, boosting market confidence. It settled at $51.893 billion from $51.867 billion the previous day.
The apex bank has also launched a new digital platform that will track every foreign exchange transaction involving Bureau De Change (BDC) operators, marking a major step in its efforts to improve transparency and strengthen oversight of Nigeria’s retail forex market.
In an operational guidance issued on July 15 to authorised dealer banks and licensed BDCs, the CBN introduced the FX BDC Purchase Tracker (FXBT), a centralised electronic portal that will monitor foreign exchange purchases by BDCs from the point of request through approval, settlement and eventual sale.
As for the crypto market, prices were down as the markets weighed fresh US airstrikes on Iran that boosted risk sentiment, with Ethereum (ETH) down by 4.7 per cent to $1,829.37.
Solana (SOL) decreased by 3.6 per cent to $77.49, Dogecoin (DOGE) depreciated by 3.1 per cent to $0.0718, Cardano (ADA) also crashed by 3.1 per cent to $0.1588, Bitcoin (BTC) slumped by 2.9 per cent to $62,820.21, Ripple (XRP) dipped by 2.6 per cent to $1.08, Binance Coin (BNB) fell by 2.3 per cent to $569.02, and TRON (TRX) shrank by 0.8 per cent to $0.3219, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
