Economy
OPEC+ Quota Increase Keeps Oil Market in Deficit—Analysts
By Adedapo Adesanya
The move by the Organisation of the Petroleum Exporting Countries and allies (OPEC+) to raise production limits by 400,000 barrels per day monthly from this month will leave the oil market in deficit at the end of 2021, research analysts at Merrill Lynch have said.
The analysts, Karen Kostanian and Ekaterina Smyk, noted that the move by the 23-member alliance was positive for oil in both the short and medium-term as a change in baseline production levels does not mean an immediate 1.6 million barrels per day hike from April 2022 and will mostly redistribute quotas within OPEC+.
“Production quotas may be adjusted on the way, while baseline production changes signal a general commitment from the key member.
“Production quotas may be adjusted on the way, while baseline production changes signal a general commitment from the key members,” they said.
Business Post had reported that last month, after a brief stalemate between Saudi Arabia and the United Arab Emirates (UAE), the members agreed to raise the output limit imposed on five countries, by phasing out 5.8 million barrels per day of oil production cuts by September 2022.
The analysts allayed concerns that oil prices would run into some turbulence post the latest OPEC+ agreement as the market feared upcoming supply hikes and importantly the select members potentially flooding the market in 2022 with cumulative 1.6 million barrels per day additions to baseline production levels.
Last week, oil settled lower with the Brent crude recording more than 7 per cent drop and the United States West Texas Intermediate (WTI) falling more than 5 per cent amid fears that the faster-spreading Delta variant would slow fuel demand in China and the rest of Asia.
Most oil market experts also believe that the OPEC deal last month, marking the end of a gridlock, will help cool prices which have climbed to 2-1/2year highs as the global economy recovers from the coronavirus pandemic.
As part of the latest agreement, Russia should be able to add 100,000 barrels per day each month starting from August (its 25 per cent share of OPEC+ quota) and its baseline production level will be increased from April 2022 by 500,000 barrels per day to 11.5 million barrels per day for crude only.
“First, the reversal of 500,000 barrels per day by the end of 2021 means oil production (crude + condensate) could reach almost 11 million barrels per day, just 3.0 per cent below pre-Covid levels.
“Should OPEC+ continue to add 400,000 barrels per day per month in Q1, Russia essentially would be allowed to fully restore production by the end of Q1 2022.
“Second, the baseline crude production of 11.5 million per day practically means that Russia would have to produce roughly 1 million barrels per day above its historical maximum,” Merrill Lynch analysts said.
“We hence believe that Russia is highly unlikely to reach its baseline levels on a 1 – 2 year horizon considering flat CAPEX levels over the past couple of years. The next big growth project is not expected to come online before the mid-2020s,” they said.
Bloomberg survey for OPEC production shows that the group increased crude production by 400,000 barrels per day month on month in July as part of the OPEC agreement to reverse 1.15 million barrels per day of the cuts through May-July.
Saudi Arabia led an increase adding close to 500 barrels per day which were offset by small declines in production across other producers while Iranian production was almost flat in July as it added 30,000 barrels per day.
By Aduragbemi Omiyale
Barring any last-minute changes, the 50th Annual General Meeting (AGM) of Champion Breweries Plc will take place on Thursday, May 21, 2026, at the Oriental Hotel, Victoria Island, Lagos, at 11:00 am.
At the yearly shareholders’ gathering, some of the key statutory and governance matters to be considered will include the Audited Financial Statements for the year ended December 31, 2025, alongside the Reports of the Directors, Auditors, and the Audit Committee.
Other agenda items are the declaration of dividends, election and re-election of Directors, authorisation for Directors to determine the remuneration of the Auditors, and election/re-election of shareholders’ representatives to the Audit Committee.
In line with its commitment to transparency, accountability, and shareholder engagement, the AGM will be held physically while also being accessible to stakeholders via the company’s official website: www.championbreweries.com.
This year’s AGM comes at a defining moment in the organisation’s corporate journey, following a transformative year marked by strategic expansion initiatives, including the acquisition of Bullet Energy Drink and its successful engagement with the capital market to raise growth capital.
These developments reinforce Champion Breweries Plc’s commitment to strengthening its competitive positioning, expanding its portfolio, and delivering long-term shareholder value.
The brewer has strengthened its transition into a group structure with the acquisition of an 80 per cent stake in enJOYbev B.V., a strategic move already delivering early earnings contribution and validating its international expansion drive.
The subsidiary’s results are now being consolidated into the Group accounts for the first time, with enJOYbev B.V. already contributing positively to earnings through operating profitability within the reporting period, an early validation of the group’s expansion strategy.
“This AGM reflects a defining chapter in our journey as a Company. The acquisition of Bullet, our successful capital market engagement, and the integration of enJOYbev B.V. into our group structure all signal a deliberate strategy for sustainable growth and diversification.
“These milestones position Champion Breweries Plc for stronger performance, broader market reach, and enhanced shareholder value. We remain committed to disciplined execution, operational excellence, and the highest standards of corporate governance,” the chairman of Champion Breweries, Mr Imo Abasi Jacob, said.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) has unveiled a unified Taxpayer Identification (Tax ID) system for all taxable persons across the country as part of efforts to strengthen tax administration and improve transparency.
The agency announced the development in a public notice issued jointly with the Joint Revenue Board (JRB) on Monday.
According to the notice, the initiative is backed by Sections 6, 7, and 8 of the Nigeria Tax Administration Act, 2025, which mandate every taxable person in Nigeria to obtain a Tax ID, in a wider move to expand the country’s tax base.
The NRS said the new framework is designed to create a centralised and harmonised taxpayer database that would enhance interactions between taxpayers and revenue authorities at both federal and sub-national levels.
“The Tax ID will serve as a single, unified identity for all taxpayers, enabling seamless interaction with tax authorities at both federal and sub-national levels. It is designed to consolidate taxpayer records, eliminate duplication, and ensure more efficient management of tax-related information,” the agency stated.
The revenue agency explained that the new system would simplify tax compliance procedures, including taxpayer registration, filing of returns, and payment processes.
According to the NRS, the framework is also expected to improve accountability and reduce leakages in tax collection by creating better visibility and tracking of taxpayer information nationwide.
“The initiative will simplify tax compliance processes, including registration, tax filing, and payment procedures. The system will improve transparency by enabling better visibility and tracking of taxpayer records while reducing leakages and improving accountability in tax collection. The framework will also harmonise taxpayer information across all levels of government,” the notice added.
The agency further disclosed that the new Tax ID system would replace the existing Tax Identification Number (TIN) Validation API currently used by Ministries, Departments and Agencies (MDAs), financial institutions, and other organisations for taxpayer verification.
By Adedapo Adesanya
Three bellwether stocks weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.31 per cent on Monday, May 18.
This brought the NASD Unlisted Security Index (NSI) by 54.71 points to 4,133.70 points from 4,188.41 points, and shrank the market capitalisation by N32.73 billion to N2.473 trillion from N2.506 trillion.
Yesterday, FrieslandCampina Wamco Plc contracted by N12.45 to sell at N146.55 per share compared with last Friday’s closing price of N159.00 per share, Central Securities and Clearing System (CSCS) Plc declined by N2.34 to N70.00 per unit from N72.34 per unit, and NASD Plc lost 50 Kobo to trade at N34.50 per share versus N35.00 per share.
The trio overpowered the N5.56 gained Newrest Asl Plc. This stock ended the trading session at N61.15 per unit, in contrast to the previous session’s N55.59 per unit.
During the trading day, the volume of securities traded by investors slid by 56.1 per cent to 514,142 units from 1.2 million units, and the value of securities dropped 29.8 per cent to close at N17.4 million versus N29.8 million, while the number of deals jumped 12.5 per cent to 27 deals from 24 deals.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 60.8 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.9 million units traded for N1.9 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 worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units transacted for N1.2 billion.
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