Economy
Oil Prices Rise 1% as China Reopens Borders
By Adedapo Adesanya
Oil prices rose over 1 per cent on Monday after China, the world’s second-largest economy, reopened its borders for the first time since 2020.
The world’s largest oil importer reopened its doors to international visitors for the first time since it imposed travel restrictions in March 2020.
Incoming travellers will no longer need to quarantine – marking a significant change in the country’s COVID-19 policy as it battles a surge in cases.
However, they will still require proof of a negative PCR test taken within 48 hours of travelling.
The move has been welcomed by the market as it boosted the outlook for fuel demand and overshadowed global recession concerns.
It caused the Brent crude futures to jump by $1.08 or 1.4 per cent to $79.65 a barrel and lifted the US West Texas Intermediate crude (WTI) by 86 cents or 1.2 per cent to $74.63 a barrel.
Monday’s rally followed a drop last week of more than 8 per cent for both oil benchmarks, their biggest weekly declines at the start of a year since 2016.
Domestically, about 2 billion trips are expected during the Lunar New Year season, nearly double last year’s and 70 per cent of 2019 levels, the country’s authorities said.
Despite Monday’s oil rebound, there is still concern that the massive flow of Chinese travellers could cause another surge in COVID infections while broader economic concerns also linger.
Over the past three years, China had one of the world’s strictest COVID-19 health policies that saw numerous lockdowns and frequent testing requirements and had a significant impact on the nation’s economy.
Less hawkish sentiments coming from the US Federal Reserve, combined with a softening US Dollar, also gave oil prices a push as the US Dollar Index dropped 0.82 per cent on Monday.
The US Federal Reserve raised interest rates by 50 basis points last month after delivering four consecutive 75 basis-point hikes last year but said it was likely to keep interest rates higher for longer to tame inflation.
Also, the US Department of Energy (DoE) is attempting to entice producers to sell oil at a favourable rate, around $70/barrel, to enable it to refill the Strategic Petroleum Reserve (SPR).
Last Friday, reports emerged that the DoE had rejected the first bids as unfavourable to taxpayers. If oil prices continue to climb, it will be increasingly difficult to refill the SPR, which has reached its lowest level since 1984.
By Adedapo Adesanya
The Federation Account Allocation Committee (FAAC) has shared a total of N2.300 trillion among the federal government, state governments, and Local Government Councils from the revenue generated in May 2026.
The amount is slightly higher than the N2.257 trillion distributed last month, according to a statement issued by the Head of Information at the Federal Ministry of Finance, Mrs Efe Ovuakporie.
The FAAC allocation was confirmed at its June 2026 meeting following consideration of revenue receipts for the month of May.
The total distributable revenue of N2.300 trillion comprised N1.611 trillion from statutory revenue and N688.785 billion from Value Added Tax (VAT).
From the distributable amount, the federal government received N818.680 billion, while state governments got N759.141 billion. Local Government Councils were given N534.277 billion, and oil-producing states received N188.132 billion as 13 per cent derivation revenue.
The gross statutory revenue for the month stood at N2.652 trillion, representing an increase of N273.623 billion compared to the N2.378 trillion recorded in April 2026.
FAAC reported significant increases in collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and oil royalties during the period under review.
However, collections from Import Duty, Value Added Tax (VAT), Excise Duty, and Common External Tariff (CET) levies recorded declines compared to the previous month.
Gross VAT revenue for May 2026 stood at N743.668 billion, lower than the N806.617 billion collected in April 2026.
The committee noted that despite the decline in VAT collections, overall revenue performance for the month was strengthened by improved receipts from petroleum-related taxes and Companies Income Tax.
By Aduragbemi Omiyale
Trading in the equities of Fortis Global Insurance Plc on the floor of the Nigerian Exchange (NGX) Limited has been suspended.
The action was taken on Wednesday, June 17, 2026, by the regulatory subsidiary of the NGX Group Plc, NGX Regulation (NGX RegCo) Limited.
It was to prevent investors from buying and selling the company’s securities on the stock market ahead of its share reconstruction.
According to a circular signed by the Head of Issuer Regulation Department of NGX RegCo, Mr Godstime Iwenekhai, the suspension is also to determine the shareholders who are entitled to receive the reconstructed shares.
“Trading license holders and the investing public are hereby notified that trading in the shares of Fortis Global Insurance Plc was suspended on Wednesday, June 17, 2026.
“The suspension is necessary to prevent trading in the shares of Fortis Global Insurance Plc to enable the Company’s Registrars and the Central Securities Clearing System Plc (CSCS) to reconcile their books for the listing of the reconstructed shares on Nigerian Exchange Limited (NGX).
“The suspension is also required for the purpose of determining the shareholders who are entitled to receive the reconstructed shares,” the notice stated.
By Modupe Gbadeyanka
Efforts are being made to deepen collaboration to promote transparency and accountability in the collection of oil and gas revenue in Nigeria.
Two key organisations involved in this, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigeria Revenue Service (NRS), recently held a strategic meeting to further work on ways to achieve this goal.
The chief executive of NUPRC, Mrs Oritsemeyiwa Eyesan, was at the headquarters of the tax-collecting agency in Abuja on Wednesday.
In discussions with the chairman of NRS, Mr Zacch Adedeji, she praised him for driving reforms that culminated in the enactment of the NRS Act.
Speaking on the transfer of revenue collection responsibilities, Mrs Eyesan said the process had been seamless, highlighting her organisation’s efforts to create an enabling environment for operators in the oil and gas industry.
She further revealed that Nigeria had the potential to produce 1.9 million barrels per day, having hit a peak production of 1.86 million barrels per day in May.
In his response, the NRS chairman praised NUPRC for its dynamism, professionalism and transparency, promising continued collaboration with the commission, particularly on matters relating to the transfer of revenue collection functions under the new Act.
“I collect revenue. I don’t generate revenue. Wherever revenue is, I work on it and keep an account for you. So, I’m helping you to collect your royalties,” Mr Adedeji said.
He pledged that the NRS would continue to support the commission to achieve its shared objective of increasing government revenues in a fair, transparent and sustainable manner.
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