Economy
NNPC Couldn’t Justify Some Costs at FAAC Meeting—Adeosun
By Modupe Gbadeyanka
Yesterday, Minister of Finance, Mrs Kemi Adeosun, explained that the monthly meeting of the Federation Account and Allocation Committee (FAAC) ended in deadlock on Wednesday as a result of inability of the Nigerian National Petroleum Corporation (NNPC) to properly reconcile its accounts.
Addressing newsmen shortly after the National Economic Council (NEC) meeting held on Thursday in Abuja, the Minister said this was what led to the walkout staged by Commissioners for Finance of the 36 states of the federation.
“Based on oil price and oil quantity, you can calculate what you are expecting to see in the Federation Account and if the figure is less, then the right question that any stakeholder must ask is why.
“So, we have been going back and forth with the NNPC to try and understand these figures before we can accept them.
“Remember that the FAAC figures have to be formally accepted by the federation account committee and we were simply not comfortable with the quantum of some of the deductions made and, therefore, we could not approve those figures,” the Minister said.
According to her, the NNPC is run like a business and it was proper for the state-owned oil agency to give proper account of its expenditure.
She said President Muhammadu Buhari and Vice President Yemi Osinbajo have been briefed of outcome of the inconclusive meeting, expressing confidence that another meeting should be conveyed very soon.
“In my capacity as the chairman of FAAC, I briefed governors on the deadlock that we have got currently in the Federation Account and explained what happened. There was quite an extensive debate on what to do.
“For the purpose of this briefing, we operate the NNPC as a business. We have invested public capital in that business; and we have expectations of return. And when that return falls lower than our expectations, then the owners of this business, which in this case are the Federal Government and states, need to act.
“So, that was what caused the deadlock yesterday (Wednesday) and we really felt the figures the NNPC was proposing for FAAC were unacceptable. We felt that some of the costs couldn’t be justified, and so we have decided that rather than approve the accounts, we will go back and do further work,” Mrs Adeosun said.
She told newsmen further that, “Further negotiations and interactions are going on with the NNPC as we speak. However, we did brief both Mr President and Mr Vice President on the deadlock and asked for their support and their forbearance in this, because the consequence of this is that salaries might well be delayed in many states as a result of this.
“But we feel that in order to get to the accurate figures that we need, we have asked for forbearance and the governors and the Federal Government are all in agreement that we need to get to the bottom of those figures.”
“So, even as we speak, there is an interface going on among the Commissioners of Finance Forum, Ministry of Finance, Office of the Accountant-General, the CBN and the NNPC. We hope to be able to convene FAAC within the next few days,” she noted.
By Adedapo Adesanya
The Chairman of BUA Group, Mr Abdul Samad Rabiu, has pledged to further crash the prices of rice and other food items to alleviate high food costs in Nigeria.
Speaking to State House Correspondents after meeting with President Bola Tinubu on Thursday, Mr Rabiu said BUA Foods keyed into that policy and was able to import quite a lot of wheat, maize and rice.
The billionaire commended President Tinubu for granting waiver on imported food items, saying that his “foresight” helped crash food prices in the country.
Recall that in July 2024, Mr Tinubu’s administration announced the suspension of customs duties on imported food items to stem food inflation.
“At the time food prices were really very high last year. For example, the price of rice was about N100,000 or thereabout per 50 kilo bag. The flour was about N80,000 per bag and maize was about N60,000 per 50 kilo bag, and pasta above N20,000 per Carton. So, what we did was, we keyed into that policy and BUA was able to import quite a lot of wheat, maize and rice.
“The moment the shipment started coming, we started processing, we crushed the prices of some of these commodities. And today I’m happy to inform you that the price of rice is about N60,000 from what it was last year at N110,000. Flour is today N55,000 Naira per 50 kilo bag.
“Maize is about N30,000. And this happened because of Mr President’s foresight and vision by introducing that one-off duty waiver for a period of six months, and with that, we’ve been able to bring down the prices of these commodities,” Mr Rabiu said.
He also said that the Rice Millers Association has come together to address the issue of hoarding by some companies, adding that the association will not allow any of its members to hoard rice.
“What we are doing as rice Millers is that we want to ensure that rice Millers are not buying and hoarding paddy, although at the end of the day, it’s quite difficult to stop that. But what is happening is that once they know that there is rice availability imported, because BUA has imported enough rice to last us until the end of the year…”
He also noted that BUA foods will continue to support the efforts of the government in ensuring that food prices are down.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange returned to the green territory on Thursday with a 0.36 per cent growth, which increased the market capitalisation of the bourse by N6.58 billion to N1.846 trillion from the previous day’s N1.840 trillion.
In the same vein, the NASD Unlisted Security Index (NSI) went up by 11.23 points during the trading session to 3,153.87 points from the previous session’s 3,142.64 points.
Data showed that four securities were responsible for the jump recorded by the unlisted securities market yesterday, overpowering the decline suffered by a stock.
FrieslandCampina Wamco Nigeria Plc topped the gainers’ group after its value increased by N3.24 to close at N40.98 per unit versus the previous closing value of N37.74 per unit, Geo-Fluids Plc added 21 Kobo to settle at N2.31 per share compared with midweek’s price of N2.10 per share, UBN Property Plc gained 20 Kobo to end at N2.16 per unit versus N1.96 per unit, and Food Concepts Plc grew by 12 Kobo to finish at N1.41 per share, in contrast to Wednesday’s value of N1.29 per share.
On the flip side, the share price of Central Securities Clearing System (CSCS) went down by 99 Kobo to trade at N25.99 per unit versus N26.98 per unit.
The volume of trades during the trading day was down by 82.2 per cent to 304,374 units from 1.7 million units, the value of transactions fell by 91.6 per cent to N5.2 million from N61.7 million, and the number of deals decreased by 52.5 per cent to 29 deals from 61 deals.
At the close of business, Impresit Bakolori Plc was the most active stock by volume (year-to-date) with 536.9 million units worth N524.7 million, followed by Geo-Fluids Plc with 266.4 million units valued at N470.6 million, and Okitipupa Plc with 153.6 million units sold for N4.9 billion.
Okitipupa Plc retained its position as the most active stock by value (year-to-date) with 153.6 million units valued at N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 21.7 million units sold for N833.4 million, and Impresit Bakolori Plc with 536.9 million units worth N524.7 million.
By Adedapo Adesanya
Despite the National Bureau of Statistics (NBS) revealing on Thursday that inflation rate in April 2025 in Nigeria cooled to 23.71 per cent, according to the latest Consumer Price Index (CPI) report, the Nigerian Naira performed woefully in the various segments of the foreign exchange (FX) market against the United States Dollar yesterday.
The statistics office said the headline inflation figure for last month represents a 0.52 per cent decline from the 24.23 per cent recorded in March 2025.
On a month-on-month basis, inflation growth slowed considerably, printing at 1.86 per cent in April compared to 3.90 per cent recorded in March.
Amid this encouraging inflation data, the domestic currency lost 0.21 per cent or N3.40 against the greenback in the Nigerian Autonomous Foreign Exchange Market (NAFEX) during the session to close at N1,600.15/$1, in contrast to the N1,596.75/$1 it was traded on Wednesday.
Similarly, it tumbled against the Pound Sterling in the official market during the session by N1.10 to settle at N2,126.47/£1 versus midweek’s rate of N2,125.37/£1 and slumped against the Euro by 87 Kobo to finish at N1,791.25/€1 compared with the N1,790.38/€1 it traded a day earlier.
Also, the value of the Naira declined against the Dollar in the parallel market on Thursday by N5 to end at N1,625/$1 versus the preceding day’s rate of N1,620/$1.
As for cryptocurrency market, it was mixed as the US Federal Reserve Chair, Mr Jerome Powell, said at a conference on Thursday that longer term interest rates are likely to be higher.
This news was calmed by investors banking on recent tariff developments as the US negotiates agreements with other countries. It has reached deals with the United Kingdom and China and could reach one with India soon.
Bitcoin (BTC) gained 1.5 per cent to sell at $103,941.43, Litecoin (LTC) appreciated by 1.5 per cent to $100.34, Binance Coin (BNB) rose by 1.3 per cent to $657.44, and Ethereum (ETH) improved by 0.6 per cent to $2,588.88.
But, Ripple (XRP) crumbled by 3.2 per cent to $2.41, Dogecoin (DOGE) slumped by 0.9 per cent to $0.2263, Solana (SOL) went down by 0.6 per cent to $172.63, and Cardano (ADA) slipped by 0.3 per cent to $0.7830, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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