Economy

NPDC Remits over $608m in 2016

Published

9 years ago

12/01/2017

Modupe Gbadeyanka

By Modupe Gbadeyanka

The Nigerian Petroleum Development Company (NPDC), the upstream subsidiary company of the Nigerian National Petroleum Corporation (NNPC), has provided clarification on the reported non-remittance of some crude oil revenue to the Federation Account.

In a presentation to the Senate Ad hoc Committee on the recovery of unremitted revenue, Mr Yusuf Matashi, Managing Director of the firm faulted some of the figures quoted as revenue derived by the company from crude sales.

Providing clarification on the alleged non-remittance of crude proceeds from some divested oil wells (OMLs 61, 62 and 63), Matashi explained that the value of crude oil lifted by NPDC between May 20013 and August 2016 was $3.294 billion as against $3.487 as claimed by the Committee.

The NPDC MD drew the attention of the committee to the fact that on the basis of the Ministerial assignment of the assets to NPDC, cash call funding of the assets by government had ceased and NPDC is funding the cost of production and lifting of crude oil by itself.

He said, “According to our records total crude oil lifted from OMLs 60-63 by NPDC during the period May 2013 TO August 2016 is valued at $3.294 billion against the figure of $3.487 billion.”

On the allegation that NPDC has been lifting crude oil from divested oil well (OMLs 65, 111 and 119) to the tune of $1.847 billion out of which it paid $100 million only, the NPDC MD explained that the OMLs 65, 111 & 119 referred to by the Senate Committee are not part of the divested assets.

He argued that the figures given refer to the Good Valuable Consideration obligation payments in respect of the Shell Petroleum Development Company, SPDC divested asset (OMLs 4, 38 &41 and OMLs 26, 30, 34, 40 &42.

‘’The $1.847 billion referred to by the committee is the total Good and Valuable Consideration (G&VC) determined by DPR for the divested assets. The $100 million referred to as paid is part of the G&VC which has been paid by NPDC,’’ he said.

While recognizing the balance of $1.747 billion for the G&VC, the NPDC noted that the obligation to pay in the future has not been waived and that the balance as payable to the Federation is recognized in NPDC’s books.

On the report that a total of $344.3442 million worth of crude oil has been unremitted between January and August 2016 including non-payment of due royalties and taxes within the period, the NPDC faulted the claim.

“The committee is invited to note that the actual value of crude oil liftings from all assets divested to NPDC is a total of $584.1 million for the period January to August 2016. NPDC has paid a total of $608.4 million as royalty and PPT,” he said.

Mr Matashi, noted that a total of $608, 417, 937 was made by the NPDC as Royalty and Petroleum Profit Tax in 2016.

Also Providing response to the issues raised by the Senate committee on the legal and operational status of the NPDC, Mr Matashi explained that like all other indigenous oil and gas companies operating in Nigeria, the NPDC is self-funded which means that gross revenue are not remitted to the Federation Account .

He said that the company is however required to pay Royalties to the Department of Petroleum Resources, DPR and Petroleum Profit Tax, PPT to the Federal Inland Revenue Service, FIRS.

Mr Matashi however stated that the NPDC is ready to engage all stakeholders to resolve all outstanding payments noting that the Company is already in talks with statutory agencies to arrive at agreed installed payments of historical liabilities.

The co-chairman of the Senate Ad hoc Committee, Mr Kabiru Marafa expressed the readiness of the Senate to work with the Corporation and other stakeholders to ensure proper accountability and probity in the handling of crude oil proceeds.

Economy

Tinubu Okays Extension of Ban on Raw Shea Nut Export by One Year

Published

4 hours ago

26/02/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The ban on the export of raw shea nuts from Nigeria has been extended by one year by President Bola Tinubu.

A statement from the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, on Wednesday disclosed that the ban is now till February 25, 2027.

It was emphasised that this decision underscores the administration’s commitment to advancing industrial development, strengthening domestic value addition, and supporting the objectives of the Renewed Hope Agenda.

The ban aims to deepen processing capacity within Nigeria, enhance livelihoods in shea-producing communities, and promote the growth of Nigerian exports anchored on value-added products, the statement noted.

To further these objectives, President Tinubu has authorised the two Ministers of the Federal Ministry of Industry, Trade and Investment, and the Presidential Food Security Coordination Unit (PFSCU), to coordinate the implementation of a unified, evidence-based national framework that aligns industrialisation, trade, and investment priorities across the shea nut value chain.

He also approved the adoption of an export framework established by the Nigerian Commodity Exchange (NCX) and the withdrawal of all waivers allowing the direct export of raw shea nuts.

The President directed that any excess supply of raw shea nuts should be exported exclusively through the NCX framework, in accordance with the approved guidelines.

Additionally, he directed the Federal Ministry of Finance to provide access to a dedicated NESS Support Window to enable the Federal Ministry of Industry, Trade and Investment to pilot a Livelihood Finance Mechanism to strengthen production and processing capacity.

Shea nuts, the oil-rich fruits from the shea tree common in the Savanna belt of Nigeria, are the raw material for shea butter, renowned for its moisturising, anti-inflammatory, and antioxidant properties. The extracted butter is a principal ingredient in cosmetics for skin and hair, as well as in edible cooking oil. The Federal Government encourages processing shea nuts into butter locally, as butter fetches between 10 and 20 times the price of the raw nuts.

The federal government said it remains committed to policies that promote inclusive growth, local manufacturing and position Nigeria as a competitive participant in global agricultural value chains.

Economy

NASD Bourse Rebounds as Unlisted Security Index Rises 1.27%

Published

4 hours ago

26/02/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange expanded for the first session this week by 1.27 per cent on Wednesday, February 25.

This lifted the NASD Unlisted Security Index (NSI) above 4,000 points, with a 50.45-point addition to close at 4,025.25 points compared with the previous day’s 3,974.80 points, as the market capitalisation added N30.19 billion to close at N2.408 trillion versus Tuesday’s N2.378 trillion.

At the trading session, FrieslandCampina Wamco Nigeria Plc grew by N5.00 to trade at N100.00 per share compared with the previous day’s N95.00 per share, Central Securities Clearing System (CSCS) Plc improved by N4.18 to sell at N70.00 per unit versus N65.82 per unit, and First Trust Mortgage Bank Plc increased by 14 Kobo to trade at N1.59 per share compared with the previous day’s N1.45 per share.

However, the share price of Geo-Fluids Plc depreciated by 27 Kobo at midweek to close at N3.27 per unit, in contrast to the N3.30 per unit it was transacted a day earlier.

At the midweek session, the volume of securities went down by 25.3 per cent to 8.7 million units from 11.6 million units, the value of securities decreased by 92.5 per cent to N80.7 million from N1.2 billion, and the number of deals slipped by 33.3 per cent to 32 deals from the preceding session’s 48 deals.

At the close of business, CSCS Plc remained the most traded stock by value on a year-to-date basis with 34.1 million units exchanged for N2.0 billion, trailed by Okitipupa Plc with 6.3 million units traded for N1.1 billion, and Geo-Fluids Plc with 122.0 million units valued at N478.0 million.

Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.05 billion units valued at N408.7 million, followed by Geo-Fluids Plc with 122.0 million units sold for N478.0 million, and CSCS Plc with 34.1 million units worth N2.0 billion.

Economy

Investors Lose N73bn as Bears Tighten Grip on Stock Exchange

Published

5 hours ago

26/02/2026

Dipo Olowookere

By Dipo Olowookere

The bears consolidated their dominance on the Nigerian Exchange (NGX) Limited on Wednesday, inflicting an additional 0.09 per cent cut on the market.

At midweek, the market capitalisation of the domestic stock exchange went down by N73 billion to N124.754 trillion from the preceding day’s N124.827 trillion, and the All-Share Index (ASI) slipped by 114.32 points to 194,370.20 points from 194,484.52 points.

A look at the sectoral performance showed that only the consumer goods index closed in green, gaining 1.19 per cent due to buying pressure.

However, sustained profit-taking weakened the insurance space by 3.79 per cent, the banking index slumped by 2.07 per cent, the energy counter went down by 0.24 per cent, and the industrial goods sector shrank by 0.22 per cent.

Business Post reports that 25 equities ended on the gainers’ chart, and 54 equities finished on the losers’ table, representing a negative market breadth index and weak investor sentiment.

RT Briscoe lost 10.00 per cent to sell for N10.35, ABC Transport crashed by 10.00 per cent to N6.75, SAHCO depreciated by 9.98 per cent to N139.35, Haldane McCall gave up 9.93 per cent to trade at N3.99, and Vitafoam Nigeria decreased by 9.93 per cent to N112.50.

Conversely, Jaiz Bank gained 9.95 per cent to settle at N14.03, Okomu Oil appreciated by 9.93 per cent to N1,765.00, Trans-nationwide Express chalked up 9.77 per cent to close at N2.36, Fortis Global Insurance moved up by 9.72 per cent to 79 Kobo, and Champion Breweries rose by 5.39 per cent to N17.60.

Yesterday, 1.4 billion shares worth N46.2 billion were transacted in 70,222 deals compared with the 1.1 billion shares valued at N53.4 billion traded in 72,218 deals a day earlier, implying a rise in the trading volume by 27.27 per cent, and a decline in the trading value and number of deals by 13.48 per cent and 2.76 per cent, respectively.

Fortis Global Insurance ended the session as the busiest stock after trading 193.7 million units for N152.7 million, Zenith Bank transacted 120.7 million units worth N11.1 billion, Japaul exchanged 114.8 million units valued at N407.0 million, Ellah Lakes sold 98.4 million units worth N999.2 million, and Access Holdings traded 63.1 million units valued at N1.7 billion.