Economy
Oil/Gas Sector Earnings Drop 2.6% in Q1 2020—CBN
By Adedapo Adesanya
Earnings from the oil and gas sector dropped 2.6 per cent in the first quarter of 2020 to N1.5 trillion from N1.6 trillion realised in the fourth quarter of 2019, according to data released by the Central Bank of Nigeria (CBN).
In its latest report titled Economic Report for the First Quarter of 2020, the apex bank disclosed that gross oil earnings accounted for 60.3 per cent of N2.5 trillion total federally-collected revenue (gross) in the period under review.
In comparison, at N1.6 trillion, oil revenue accounted for 58.9 per cent of the total federally-collected revenue of N2.7 trillion recorded in the fourth quarter of 2019.
Giving a breakdown of components of oil earnings in the first quarter of 2020, the CBN noted that crude oil and gas exports stood at N172.6 billion, rising by 47.1 per cent from N117.3 billion recorded in the fourth quarter of 2019; while Petroleum Profit Tax/Royalties declined by 6.5 per cent to N838.2 billion from N896.7 billion recorded in the previous quarter.
Other oil revenue also recorded a decline, dropping by 6.8 per cent to N512.2 billion in the first quarter, compared to N549.6 billion recorded in the fourth quarter of 2019.
The CBN noted that, “At N2.527 trillion, federally-collected revenue, in the first quarter of 2020, was lower than the quarterly budget estimate of N3.948 trillion by 36.0 per cent. Similarly, it fell below the receipt in the preceding quarter by 4.8 per cent.
“The decline in federally-collected revenue (gross), relative to the quarterly budget estimate, was attributed to shortfalls in the receipt from both oil and non-oil revenue components during the review period.
“Gross oil receipt, at N1.523 trillion or 60.3 per cent of the total revenue, was below the quarterly budget estimate and the receipt in the preceding quarter by 31.2 per cent and 2.6 per cent, respectively.
“The decline in oil revenue, relative to the quarterly budget estimate, was due to shortfall in the receipt from PPT and royalties.
“Non-oil revenue (gross), at N1.004 trillion or 39.7 per cent of total revenue, fell below the quarterly budget estimate of N1.733 trillion by 42.1 per cent. It also fell below the level in the preceding quarter by 8.0 per cent.
“The lower non-oil revenue, relative to the quarterly budget estimate, was due to the decline in the receipt from Value Added Tax (VAT) and corporate tax.”
The CBN further stated that Nigeria’s crude oil production, including condensates and natural gas liquids, averaged 1.84 million barrels per day or 167.44 million barrels in the first quarter of 2020, representing a decrease of 1.1 per cent, compared with the 1.85 million barrels per day or 170.20 million barrels produced in the preceding quarter.
It disclosed that Nigeria exported an estimated 1.39 million barrels per day of crude oil, representing a decrease of 0.7 per cent, compared with the 1.40 million per day recorded in the preceding quarter.
According to the CBN, the estimated decrease in production was attributed to the aftermath of the December 2019 meeting by the Organisation of the Petroleum Exporting Countries (OPEC) where members and their allies pledged a further production cut by 500,000 barrels per day beginning from January 2020 to stabilise the global crude market.
The apex bank explained that the average spot price of Nigeria’s reference crude oil, the Bonny Light stood at $52.51 per barrel in the first quarter of 2020, representing a decrease of 20.1 per cent and 18.9 per cent below the $65.71 per barrel and $64.75 per barrel recorded in the fourth quarter of 2019 and the corresponding period of 2019, respectively.
By Aduragbemi Omiyale
Transcorp Power Plc suffered declines in its revenue and profit in the first half of this year; details of the company’s financial statements for the period ended June 30, 2026, have revealed.
The losses were attributed to recurring transmission line vandalism, which materially constrained the organisation’s ability to evacuate available generation capacity.
Business Post reports that earnings contracted in the first six months of this year to N181.97 billion from the N205.81 billion recorded in the same period of last year, while profit before tax moderated to N54.99 billion from N58.73 billion.
However, on a year-to-date basis, total assets went up to N619.02 billion from N563.48 billion in December 2025, as shareholders’ funds grew to N189.34 billion from N183.40 billion in FY 2025, while retained earnings soared to N140.90 billion from N123.41 billion in FY 2025.
It was observed that the increase in receivables and borrowings largely drove the expansion in the balance sheet during the period.
Also, the firm’s gross margin expanded to 38.4 per cent from 34.7 per cent in H1 2025, operating margin increased to 30.6 per cent from 28.5 per cent, and PBT margin rose to 30.2 per cent from 28.5 per cent, reflecting cost optimisation efforts and disciplined financial management, positioning the company to continue delivering sustainable value for shareholders.
“Our H1 2026 performance is a reflection of the resilience of our business operations despite significant sector-wide existential challenges.
“Regrettably, recurring transmission line vandalisation materially constrained our ability to evacuate available generation capacity.
“Nonetheless, we continued to deliver strong profitability, maintain operational efficiency, and strengthen our balance sheet,” the chief executive of Transcorp Power, Mr Peter Ikenga, stated.
“We remain committed to working with relevant stakeholders to put an end to transmission line vandalisation and to further improving operational performance, power generation supply reliability, and creating sustainable value for our shareholders. We remain highly confident that we will recover lost ground in H1 2026 and finish FY 2026 stronger than FY 2025,” he added.
By Dipo Olowookere
A total of 2.819 billion stocks worth N182.499 billion exchanged hands in 226,729 deals on the floor of the Nigerian Exchange (NGX) Limited last week, in contrast to the 3.648 billion stocks valued at N220.568 billion transacted in 251,861 deals a week earlier.
From this, financial shares accounted for 2.006 billion units sold for N99.697 billion in 96,171 deals, contributing 71.17 per cent and 54.63 per cent to the total trading volume and value, respectively.
Consumer goods equities traded 178.863 million units worth N7.872 billion in 26,637 deals, and energy stocks recorded a turnover of 151.237 million units valued at N38.309 billion in 16,879 deals.
First Holdco, FCMB, and Access Holdings accounted for 939.402 million units worth N57.673 billion in 19,051 deals, contributing 33.33 per cent and 31.60 per cent to the total trading volume and value, respectively.
Business Post reports that the performance indicators were mixed in the five-day trading week, as the All-Share Index (ASI) depreciated by 0.14 per cent to 243,462.13 points, while the market capitalisation appreciated by 0.39 per cent to N157.057 trillion.
All other indices finished higher except the main board, consumer goods, energy, Lotus II, industrial goods, growth, and sovereign bond indices, which fell by 1.54 per cent, 0.15 per cent, 0.11 per cent, 0.40 per cent, 6.26 per cent, 0.09 per cent, and 0.33 per cent, respectively, while the commodity index closed flat.
Forty-four shares gained weight in the week versus 60 shares of the preceding week, 35 equities depreciated versus 28 equities in the previous week, and 67 stocks closed flat versus 58 stocks of the earlier week.
The best-performing stock was First Holdco, which gained 38.66 per cent to trade at N95.95. Thomas Wyatt expanded by 27.16 per cent to N3.09, Fidelity Bank grew by 15.00 per cent to N21.85, Learn Africa grew by 14.44 per cent to N10.30, and UBA chalked up 10.98 per cent to close at N45.50.
The worst-performing stock was BUA Cement after giving up 18.99 per cent to quote at N275.60, Red Star Express shed 18.53 per cent to end at N20.00, International Energy Insurance declined by 15.27 per cent to N4.66, C&I Leasing dropped 13.28 per cent to N5.55, and PZ Cussons crashed by 10.06 per cent to N80.95.
By Adedapo Adesanya
Central Securities Clearing System (CSCS) Plc kept the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.04 per cent on Friday, July 16.
The securities depository company added N2.50 to its share price to settle at N95.14 per unit from the preceding session’s N92.64 per unit.
However, FrieslandCampina Wamco Nigeria Plc slid during the session by N5.85 to N141.81 per share from N147.66 per share.
But when the bourse closed for the day, the market capitalisation increased by N1.08 billion to N2.593 trillion from N2.592 trillion, while the NASD Security Index (NSI) appreciated by 1.80 points to 4,320.67 points from 4,318.87 points.
During the session, the value of securities slid by 38.9 per cent to N63.5 million from N104.1 million, the volume of securities went down by 34.5 per cent to 1.2 million units from 4.8 million units, and the number of deals declined by 15.4 per cent to 33 deals from 39 deals.
Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 75.4 million units traded for N5.3 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
