Economy
NUPRC to Adopt Fresh Approaches for Licences, Leases
By Adedapo Adesanya
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it will adopt a new approach in the administration of licences and leases, especially as it concerns acreage allocation to attain the objectives set by the Petroleum Industry Act (PIA).
The Chief Executive Officer (CEO) of NUPRC, Mr Gbenga Komolafe, said in a statement that the new approach would optimise value in the new acreage management and administration of allocation principles enunciated in the PIA.
“To position the commission on a performance-centred paradigm for acreage management, a new strategy of acreage allocation, management and administration based on a holistic assessment of the prior performance of all licences and leases awarded prior to the PIA is required,” he said.
According to Mr Komolafe, the organisation will seek to identify the areas of regulatory underperformance in acreage management and administration, leading to the failure of licensees and lessees’ inability to carry out licence and lease performance obligations.
The commission would also seek to identify other issues, including the acquisition of data, drilling of wells and maturing of identified leads and prospects within the licence or lease span.
The CEO also listed the aspects of the new strategy to include a review of assignee performance and contributions to licences and lessees and review of compliance performance in reporting milestones by licensees and lessees and the administration of regulatory consequence mechanisms.
Other aspects of the new strategy would include reviewing loss allocation by licensees and lessees under the PIA.
These include production, cost and revenue, as well as performance review of existing multi-client arrangements and streamlining ongoing activities to the PIA.
“The assessment framework will require all existing licences and lessees to undergo a performance assessment audit of the operation of licences and leases based on a framework to be developed by Lease and focussed on OPLs, OMLs, Marginal Fields and Multi-client arrangements.
“Evaluation is expected to cover the following: Compliance with environmental requirements and with work programme commitments, compliance with revenue payment obligations and reporting obligations.
“Others are audit of operation systems and third-party provider activities and assessment of assignee roles and performance obligations.”
“In the new dispensation, there will be a need for a team with representation from relevant departments to achieve performance schematic of existing licences and leases; identify oversight weakness, identify licencee and lessee centred failures in regulatory reporting requirements and other performance indices.
“Also in the new dispensation, there will be improved oversight mechanism in line with the objective of the PIA and aspects of the new strategy as well as develop fresh Standard Operating Procedures (SOP) for acreage management and lease administration in line with the PIA.
“The team, which will be made up of a member each from Exploration and Acreage Management: Development & Production; Health, Safety, Environment and Community; Economic Regulation and Strategic Planning and the Legal Secretary Departments, is expected to submit a final report by Aug. 30.” the statement further quoted Mr Komolafe as saying.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange fell by 0.08 per cent on Monday, April 7, as the global market meltdown takes its toll on the local economy.
During the first trading session of the week, the market capitalisation of the bourse went down by N1.50 billion to N1.909 trillion from the N1.911 trillion quoted at the preceding session.
In the same vein, the NASD Unlisted Security Index (NSI) depreciated by 2.59 points at the close of business to 3,306.87 points from last Friday’s 3,309.46 points.
Business Post reports that there were two price losers at the session led by Nipco Plc, which crumbled by N20.20 to close at N199.80 per share compared with the previous closing value of N220.00 per share, and Geo-Fluids Plc retreated by 24 Kobo to settle at N2.46 per unit, in contrast to the N2.70 per unit it was traded at the last trading day.
However, the price of FrieslandCampina Wamco Nigeria Plc went up by N1.22 yesterday to N38.02 per unit from last Friday’s closing value of N36.80 per unit.
The volume of securities traded by the market participants decreased by 56.8 per cent during the session to 560,253 units from the 1.3 million units transacted in the previous trading day, but the value of trades rose by 232.3 per cent to N16.7 million from N5.02 million, and the number of deals contracted by 10 per cent to 18 deals from 20 deals.
Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 533.9 million units worth N520.9 million, Industrial and General Insurance (IGI) Plc occupied the second spot with 71.2 million units sold for N24.2 million, and the third position was taken by Geo Fluids Plc with 44.4 million units valued at N89.8 million.
Also, FrieslandCampina Wamco Nigeria Plc maintained its position as the most traded stock by value (year-to-date) with 14.2 million units valued at N549.9 million, followed by Impresit Bakolori Plc with 533.9 million units worth N520.9 million, and Afriland Properties Plc with 17.8 million units sold for N364.2 million.
By Adedapo Adesanya
The Naira experienced a significant decline against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, April 7, amid a wider roil caused by tariffs from the United States, which has severely affected markets, while efforts to cushion this has so far not yielded a direct resolve.
At the official market yesterday, the Nigerian currency lost N55.66 or 3.5 per cent against the American currency to settle at N1,628.89/$1, in contrast to the preceding session’s rate of N1,573.23/$1, according to data from the Central Bank of Nigeria (CBN).
Equally, the Naira depreciated against the Pound Sterling at NAFEM during the session by N25.39 to close at N2,056.41/£1 versus last Friday’s value of N2,031.02/£1 and shed N36.24 against the Euro to sell for N1,761.53/€1 compared with the preceding trading day’s N1,725.29/€1.
In the parallel market, the value of the domestic currency declined against the US Dollar on Monday, by N15 to sell for N1,580/$1 versus the preceding session’s N1,565/$1.
Over the weekend, the CBN revealed that it boosted the market with $197.71 million through sales to authorised dealers.
According to the apex bank, the move is in line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, adding that the measured step aligns with its broader objective of fostering a stable, transparent, and efficient FX market.
It raised worry about declining oil prices – which accounts for over 70 per cent of Nigeria’s FX earnings – which has dropped below $65 per barrel and could hit the country’s FX reserves.
Meanwhile, the cryptocurrency market turned bullish yesterday as the US President, Mr Donald Trump, while adamant of not reversing the tariffs on countries around the world, said some countries are ready to come to the table, helping to ease some of the panic with the European Union also confirming that it was planning to negotiate with the US.
Solana (SOL) gained 8.0 per cent to trade at $109.50, Cardano (ADA) rose by 7.7 per cent to $0.5876, Dogecoin (DOGE) appreciated by 7.2 per cent to $0.1495, and Litecoin (LTC) grew by 6.9 per cent to $71.51.
Further, Ripple (XRP) jumped by 6.8 per cent to $1.87, Bitcoin (BTC) expanded by 4.2 per cent to $79,397.68, Binance Coin (BNB) went up by 3.4 per cent to $560.40, and Ethereum (ETH) added 3.3 per cent to close at $1,575.33, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited further depreciated by 1.23 per cent on Monday following persistent selling pressure amid global financial markets crisis.
All the major key sectors of Customs Street were in red on the first trading session of the week, with the insurance index down by 7.56 per cent.
Further, the banking sector went down by 5.48 per cent, the consumer goods space shrank by 0.79 per cent, the energy index shrank by 0.65 per cent, the commodity counter declined by 0.10 per cent, and the industrial goods industry tumbled by 0.01 per cent.
Consequently, the All-Share Index (ASI) crashed by 1,295.02 points to 104,216.87 points from 105,511.89 points and the market capitalisation depreciated by 1.00 per cent or N658 billion to N65.489 trillion from last Friday’s N66.147 trillion.
Business Post reports that the bourse was under heavy profit-taking yesterday, resulting in nine stocks finishing on the gainers’ chart, with 51 stocks on the losers’ table. This showed a negative market breadth index and weak investor sentiment.
The quartet of Oando, Secure Electronic Technology, Cornerstone Insurance, and RT Briscoe lost 10.00 per cent each to trade at N37.80, 45 Kobo, N2.97, and N2.16, respectively, and Honeywell Flour crumbled by 9.98 per cent to N10.19.
On the flip side, VFD Group gained 10.00 per cent to quote at N62.70, TotalEnergies expanded by 9.61 per cent to N745.00, Guinea Insurance grew by 9.52 per cent to 69 Kobo, International Energy Insurance improved by 9.33 per cent to N1.64, and Abbey Mortgage Bank surged by 8.88 per cent to N5.15.
Banking shares dominated the activity chart during the trading day, with FCMB selling 65.5 million units worth N589.0 million, Fidelity Bank traded 42.5 million units for N818.4 million, GTCO exchanged 34.5 million units valued at N2.3 billion, Access Holdings transacted 31.8 million units worth N687.2 million, and Zenith Bank traded 31.7 million units valued at N1.5 billion.
At the close of transactions, investors bought and sold 444.1 million equities for N11.2 billion in 15,690 deals versus the 348.3 million equities valued at N8.1 billion traded in 11,444 deals in the preceding session, representing a surge in the trading volume, value, and number of deals by 27.51 per cent, 38.27 per cent, and 37.10 per cent apiece.
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