Economy
NUPRC Woos Investors to Explore Nigeria’s Oil, Gas Reserves
By Adedapo Adesanya
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that the country’s gas reserves currently stand at 208.83 trillion cubic feet, offering potential investors a huge potential.
According to the Chief Executive of NUPRC, Mr Gbenga Komolafe, following the declaration of the year 2020-2030 as Nigeria’s decade of gas, the country became ripe for more investment.
He said Nigeria has a proven reserve of 36.966 billion barrels of oil and condensate, opening a large opportunity for investments in the upstream oil and gas sector.
Mr Komolafe spoke at the ongoing Nigerian Oil and Gas Opportunity Fair (NOGOF 2023) organized by the Nigerian Content Development and Monitoring Board (NCDMB) in Yenagoa, the Bayelsa State capital, with the theme, Oil and Gas Industry: Catalyst for Fuel for the Industrialisation of Nigeria.
“Nigeria’s role as a major player in the global oil and gas industry is certainly not in doubt, as we are currently the highest oil producer in Africa and the second highest in terms of proven oil reserves with a huge potential for growth.
“As of January 1, 2023, Nigeria boasts 36.966 billion barrels of oil and condensate reserves and 208.83 trillion cubic feet of natural gas reserves, opening a large opportunity for investments in the upstream oil and gas sector.
“You will agree with me that despite the global clamour for decarbonization and energy transition, oil and gas remain relevant in the global energy mix to guarantee energy security for our teaming population.
“In order to deliver on her commitments towards reduction of carbon footprints, Nigeria has adopted gas as a transition fuel and expects to significantly increase gas consumption during the Decade of Gas declared by the President, Muhammadu Buhari.
“This adoption of natural gas as a transition fuel is a boost for Nigeria; our gas reserves can be harnessed to help the country’s transition to Net Zero by 2060 while driving economic growth and development, thereby simultaneously tackling energy poverty and meeting the commission has intensified efforts climate ambition.”
Represented by the Executive Commissioner, Economic Regulation and Strategic Planning, Mr Kelechi Ofoegbu, the NUPRC boss assured of the Commission’s commitment to growing gas reserves, boosting production and eliminating routine gas flares in all upstream operations across the value chain while also dealing with methane capture and other fugitive gas emissions.
“The significance of this is that more gas would be available for domestic utilization as Liquefied Petroleum Gas (LPG), feedstock for power generation plants, fertilizer plants and petrochemicals, among others.
“Each of these areas shows that gas would truly be the catalyst and fuel for industrialisation as well as provide unique entry points for willing investors and constitute opportunities to build capacity locally.
“The commission, as the upstream petroleum industry regulator, has embarked on the development of a regulatory framework for carbon-make businesses pay for their emissions and pricing system to incentivize emission reductions through carbon credits.
“Accordingly, a new department called Energy Transition and Carbon Monetisation has been created in the Commission to coordinate the drive towards energy transition in the Nigeria oil and gas sector. The new department will drive the focused implementation of the robust regulatory framework for the decarbonisation of upstream operations.
“It will introduce clean mechanisms in field development, mitigate the impact of energy transition and ensure sustained investments in upstream operations whilst improving the environmental credentials of oil and gas. It is our hope that in months to come; we should be able to share the vital lessons from the Nigerian transition success story with the global community.”
Also speaking, the Managing Director of Chevron Nigeria Limited, Mr Richard Kennedy, announced that the company had spent over $1 billion on Nigerian suppliers and service providers in the last few years.
Mr Kennedy, in his goodwill message, said CNL had made significant investments in Nigeria in the last 60 years, assuring that the company remains committed to the NOGICD Act and will continue to build local capacity.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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