Economy
NNPC Laughs Off Non-Remittance of Funds Allegation
By Modupe Gbadeyanka
Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr Maikanti Baru, has played down allegations of non-remittance of funds by the agency into the federation account.
In a statement issued by the Group General Manager, Group Public Affairs Division of NNPC, Mr Ndu Ughamadu, the state-owned oil firm chief said the NNPC has been faithfully remitting all revenues accruing to it to the account.
Speaking on Thursday to members of the Senate Committee on Petroleum (Upstream), who were at the corporate headquarters of the corporation in Abuja on an oversight visit, Mr Baru said allegations of non-remittance of funds had become a recurrent decimal over the years, occasioned in part, to the nature of the corporation’s operations which involved credit lines requiring constant audit and reconciliation.
“While the process of audit and reconciliation of accounts is on, a lot of accusations of short payments and non-remittances are usually traded, we endeavour to keep our cool on these allegations because we know that we remit whatever is due to the Federation Account”, he explained.
Further putting the issue in perspective, Dr Baru stated that such allegations usually arose from disagreements over expenses borne by the corporation on behalf of the Federal Government.
On efforts by the NNPC to ensure that Joint Venture (JV) and Production Sharing Contract (PSC) partners do not run excessive bills at the expense of the nation, the GMD explained that apart from the establishment of an Efficiency Unit in the corporation to ensure value for money across all operations, NNPC had also done a lot in renegotiating contracts as well as benchmarking costs in keeping with international best practices, adding that the effort had yielded significant results in terms of reduction in the cost of crude oil production per barrel in the Industry.
Also responding to a question on why the PSC agreements had not been reviewed for a long time despite clauses in the agreements that stipulate periodic review, Dr. Baru disclosed that a Presidential approval had been secured and that a committee would be set up soon to carry out the review.
He, however, disclosed that in the absence of a comprehensive review, NNPC had looked at projects on a project-by-project basis and raised observations which some of the partners had taken permission to present before their managements.
Speaking earlier, Chairman of the Senate Committee on Petroleum (Upstream), Senator Omotayo Alasoadura, who led members of the committee on the oversight visit, said the committee would like to have a month-by-month crude oil production figures for the past two years and crude prices for the period.
He called on NNPC to fully cooperate with the Senate in providing input on the fiscal component of the Petroleum Industry Reform Bill and the other segments of the Bill coming up for public hearing next week at the National Assembly.
Speaking further on the visit, the committee Chairman said: “We have just come to fulfil another part of our mandate, which is to oversee what NNPC is doing. It’s not a mission to harass anybody, it’s for us to understand each other, give advice, as nobody is a sole repository of knowledge. Everybody knows that Dr. Baru is very knowledgeable in the Industry, but he can’t know everything, even people who don’t know anything about the Industry may have useful ideas that can be of help”.
Other members of the committee who were present at the meeting include: Senators Gershom Bassey (Vice Chairman), Sam Egwu, Victor Umeh, Fatimat Raji Rasaki, Clifford Ordia, Osinakachukwu Ideozu, Stella Oduah and Biodun Olujinmi.
By Adedapo Adesanya
Nigeria’s crude oil production increased in May and June, according to data published by the Organisation of the Petroleum Exporting Countries (OPEC).
The country’s output increased by 42,000 barrels per day to 1,530 million barrels in May, from 1,489 million barrels in April.
According to Reuters, Nigeria, whose shipments were not affected by the Iran war, also pumped more in June, based on flow data from financial group LSEG, information from other companies that track flows, such as Kpler, and data provided by sources at oil companies, OPEC, and consultants.
Output from the OPEC rose by 2.34 million barrels a day to 18.75 million a day, with the gains driven by Kuwait, Saudi Arabia and Iran, the survey showed. The rebound still leaves production considerably below prewar levels.
Kuwait posted the biggest increase among OPEC’s 11 members last month, boosting output by 870,000 barrels a day to 1.36 million a day followed by Saudi Arabia, which raised output by 550,000 barrels a day to an average of 7.2 million a day. That was followed by Iran, which hiked by 510,000 a day to pump 2.85 million a day, and has accumulated a hoard of supply on tankers at sea as it struggles to find buyers.
In the wider alliance, Russia has bolstered crude exports to record levels following Ukrainian strikes on its refineries, potentially diverting volumes that can’t be processed at home.
Even before the peace deal, Persian Gulf producers had found ways to sneak cargoes out through the strait, which was largely shuttered in the early stages of the conflict.
The uptick in supply is creating a surplus in parts of the market, erasing crude’s wartime rally and raising the question of whether OPEC nations will need to compete for customers.
The group’s June production was still 7.3 million barrels a day, or 28 per cent, below February levels, when adjusted for exit by the United Arab Emirates (UAE).
The UAE quit OPEC in May, giving it the freedom to pump at will once the strait fully stabilises. Iraq also briefly threatened it could exit unless eventually given a higher output quota by the organisation.
On Sunday, a subgroup of seven OPEC+ nations announced a 188,000 barrels a day boost in August continuing the series of small and symbolic production hikes during the war to continue a process of restoring output halted a few years ago.
By Adedapo Adesanya
Shareholders of Dangote Cement Plc have approved plans that could pave the way for the company’s secondary listing on the London Stock Exchange (LSE) while also endorsing a final dividend of N45.00 per ordinary share for the 2025 financial year.
The resolutions were passed at the company’s 17th Annual General Meeting (AGM) held on Thursday at Eko Hotels & Suites in Lagos, where shareholders also approved the audited financial statements for the year ended December 31, 2025.
The approval for an international secondary listing marks a significant step in Dangote Cement’s plans to broaden its access to global capital markets and enhance its international investor base.
In May, the company’s founder Mr Aliko Dangote said the cement subsidiary was planning a London listing to sell 10 per cent stake, sixteen years after debuting on the Nigerian Exchange (NGX) Limited. This would provide the company with the much-needed boost to compete in the United Kingdom market.
Shareholders also ratified the payment of a final dividend of N45.00 per ordinary share from the company’s retained earnings as of December 31, 2025. The dividend was paid on Thursday, July 2, 2026.
At the meeting, shareholders approved the appointment of Ms Mariya Aliko-Dangote to the company’s board of directors. In recent months, the eldest daughter of the billionaire as well as her sisters Halima and Fatima, have been strategically positioned across their father’s empire in what has been touted as succession plans.
They also re-elected four directors retiring by rotation: Mr Emmanuel Ikazoboh, an Independent Non-Executive Director; Mr Olakunle Alake, a Non-Executive Director; Ms Berlina Moroole, a Non-Executive Director; and Mr Alvaro Poncioni Merian, an Independent Non-Executive Director.
In addition, shareholders authorised the board to determine the remuneration of the company’s external auditors for the 2026 financial year.
The AGM also noted the disclosure of managers’ remuneration in compliance with the provisions of the Companies and Allied Matters Act (CAMA) 2020.
Shareholders further approved the election of Mr Robert Ade-Odiachi, Mr Sheriff Yussuf Mojirola and Mr Nicholas Nyamali as shareholders’ representatives on the Statutory Audit Committee. They will serve alongside the company’s representatives, Mr Ernest Ebi and Mr Olakunle Alake, until the next AGM.
They also approved annual remuneration of N20 million for the chairman and N15 million each for the non-executive directors for the financial year ending December 31, 2026.
By Dipo Olowookere
The activity level on the Nigerian Exchange (NGX) Limited improved last week after market participants traded 3.821 billion stocks worth N154.393 billion in 258,567 deals compared with the 2.324 billion stocks valued at N134.486 billion transacted in 249,328 deals in the preceding week.
Analysis showed that financial equities dominated with 2.330 billion units sold for N54.606 billion in 108,978 deals, accounting for 60.99 per cent and 35.37 per cent of the total trading volume and value, respectively.
Services stocks recorded a turnover of 509.473 million units worth N16.353 billion in 16,527 deals, and consumer goods shares recorded 216.344 million units valued at N8.057 billion in 25,963 deals.
Sterling Holdings, Access Holdings, and Ikeja Hotel were the busiest stocks, accounting for 1.405 billion units worth N28.370 billion in 12,898 deals, contributing 36.78 per cent and 18.37 per cent to the total trading volume and value, respectively.
The best-performing equity for the week was Airtel Africa, which gained 21.00 per cent to sell for N5,274.00. Regency Assurance grew by 20.25 per cent to 95 Kobo, UPDC expanded by 12.31 per cent to N3.65, DAAR Communications rose by 7.84 per cent to N1.65, and SUNU Assurances increased by 7.50 per cent to N3.87.
The worst-performing equity was International Energy Insurance, which fell by 18.83 per cent to N4.70, McNichols slumped by 18.60 per cent to N7.00, University Press crashed by 17.54 per cent to N4.70, RT Briscoe dipped by 13.98 per cent to N10.15, and UPDC REIT moderated by 13.00 per cent to N8.70.
Business Post reports that 22 shares appreciated during the week, the same as the previous week, and 57 equities depreciated, the same as a week earlier, while 67 stocks remained unchanged, the same as the preceding week.
The All-Share Index (ASI) and the market capitalisation closed lower by 1.21 per cent in the five-day trading week to 229,240.34 points and N147.103 trillion, respectively.
Similarly, all other indices finished lower apart from the main board, which chalked up 2.27 per cent.
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