Economy
Petrolex Plans $5b Investments in Ogun
By Dipo Olowookere
Chairman of Petrolex Oil and Gas, Mr Segun Adebutu, has revealed plans by his firm to pump about $5 billion into the economy of Ogun State.
Mr Adebutu made this disclosure at the just-concluded two-day Ogun State Investors Forum held in Abeokuta, the state capita.
The Ogun State Investors Forum is a yearly gathering of investors, industry leaders, and policy makers to set the agenda for the next phase of industrialization in the state.
This year, the two-day event was attended by the Vice President, Prof Yemi Osinbajo; the Minister of Finance, Mrs Kemi Adeosun; and the former president of Mexico, Mr Felippe Calderon.
Over 1,000 key players in the industrial, agricultural and technological sectors registered their presence at the event.
Speaking at the forum, the Petrolex boss hailed Ogun State as a front-burner in industrial development, including oil and gas.
He also commended the governor, Mr Ibikunle Amosun, for the robust support provided during the construction of the Petrolex Mega Oil City at Ibefun, beginning in 2011, when he shared the plan.
According to him, the Governor’s background in finance was useful, saying Mr Amosun gave Petrolex advice key to the success of the project.
According to Mr Adebutu, he was elated when the first phase of the mega oil city, a 300 million-litre capacity tank farm was completed.
“Many people thought an oil and gas hub in Ogun State was farfetched and impossible” Mr Adebutu said.
“On December 12, 2017, I declared that Ogun state is now home to the largest tank farm in Sub-Saharan Africa. But that is just Phase 1 of the project,” he added.
He said the next phase of the Petrolex Mega Oil City includes 250,000 barrels per day refinery, a lube plant, gas bottling plant, and a fertilizer plant.
According to him, the project will gulp over $5 billion within the next 5 years and already, over $330 million has been invested.
“This shows that Ogun-state is a front-burner in development, in everything, including oil and gas,” Mr Adebutu submitted.
Also at the event, the Executive Secretary of Nigerian Investment Promotion Council (NIPC), Ms Yewande Sadiku, outlined NIPC’s ambitious plan to attract more investments to states. She praised Ogun State’s drive towards industrialization.
“We should not underestimate what it takes to attract investors, and the fact that Ogun state has been so successful in attracting investors, especially in the area of manufacturing,” she said.
Ms Sadiku pointed out that a total of N5.4 billion investment announcements have been made for Ogun State in petrol chemical, solid minerals, agriculture and manufacturing.
She implored the state government to provide the necessary infrastructure to ensure that the entire investment announcement made by NIPC become a reality.
On his part, Commissioner for Commerce and Industry in Ogun State, Mr Bimbo Ashiru, urged investors to put their money in the state.
According to him, in 2016, Nigeria mined 43.4 million tonnes of solid minerals in which Ogun State alone produced 16.3 million tonnes, representing 37.65 percent among the 36 states of the federation.
He also noted that the state has the largest concentration of steel factories in the country and urged automobile industries to take advantage of this to establish their factories.
“We have 12 industrial solid minerals available in the state. Ogun State is also one of the largest producers of cement in the country,” he said.
By Adedapo Adesanya
Market bellwethers, Central Securities Clearing System (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc, lifted the NASD Over-the-Counter (OTC) Securities Exchange by 2.08 per cent on Monday, August 3.
CSCS Plc, the Nigerian securities depository company, gained N10.00 to close at N112.00 per share compared with the previous session’s N102.00 per share, and FrieslandCampina Wamco Nigeria Plc advanced by N4.71 to quote at N152.64 per unit versus last Friday’s N147.93 per unit.
As a result, the NASD Security Index (NSI) added 92.14 points to finish at 4,523.85 points compared with the preceding session’s 4,431.71 points, and the market capitalisation appreciated by N55.31 billion to N2.715 trillion from N2.659 trillion.
Business Post reports that the price of MRS Oil Plc crashed during the trading day by N12.00 to N120.00 per share from N132.00 per share, and UBN Property Plc dipped by 3 Kobo to N1.90 per unit from N1.93 per unit.
Trading data showed that the volume of securities exchanged rose by 113.1 per cent to 1.5 million units from 690,990 units, and the number of deals climbed by 19.2 per cent to 31 deals from 26 deals, while the value of securities slid by 13.1 per cent to N65.2 million from N75.0 million.
Great Nigeria Insurance (GNI) Plc remained 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 sold for N6.5 billion, and CSCS Plc with 76.8 million units traded for N5.5 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) has introduced a 1.5 per cent stamp duty on eligible virtual asset transactions, with the tax deducted directly from the cryptocurrency purchased before it is credited to the buyer’s wallet.
According to the new guidelines issued on Monday, anyone buying Bitcoin (BTC), USDT or other cryptocurrencies in Nigeria will receive fewer digital assets due to the deduction.
This requires registered crypto exchanges and other Virtual Asset Service Providers (VASPs) to withhold the levy in the digital asset being traded and remit it to the government, marking Nigeria’s most comprehensive move yet to bring cryptocurrency transactions into the country’s tax net.
Unlike traditional taxes deducted from a customer’s bank account, the 1.5 per cent charge will be taken from the cryptocurrency itself, meaning buyers will receive less Bitcoin, USDT or other tokens than they paid for.
The tax body stated that “income tax deducted at source and stamp duty shall be remitted to the service in the originating token of the transaction.”
Besides the new stamp duty, the guidelines also clarify how income tax, Value Added Tax (VAT) and other tax obligations will apply to virtual asset activities such as trading, staking, mining and other crypto-related transactions.
To illustrate the new rule, the tax authority said a buyer who pays N1 million for one Bitcoin will receive only 0.985 BTC after 0.015 BTC is deducted as stamp duty and remitted to the government. When that Bitcoin is later sold, the next buyer will also have 1.5 per cent deducted from the cryptocurrency credited to their wallet.
The NRS said the guidelines are intended to provide clarity for taxpayers, crypto exchanges, peer-to-peer (P2P) marketplace operators, financial institutions, tax consultants and all participants in Nigeria’s virtual asset ecosystem.
According to the guidelines, the 1.5 per cent duty applies to eligible virtual asset transactions facilitated through registered exchanges and other recognised intermediaries. Where a cryptocurrency is used to complete a transaction that already attracts stamp duty under the law, the applicable duty on the underlying instrument will also be payable.
For crypto users, the implication is higher transaction costs, as eligible purchases will attract the 1.5 per cent stamp duty, while VAT on exchange service fees and income tax on taxable gains may also apply, depending on the nature of the transaction.
By Adedapo Adesanya
The Naira opened the week on a positive note, as it appreciated against the US Dollar by N3.39 or 0.25 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, August 3, to N1,364.83/$1 from N1,368.22/$1 last Friday.
However, it suffered a marginal decline against the Pound Sterling in the official market during the session by 10 Kobo to close at N1,837.89/£1 compared with the preceding session’s N1,837.79/£1, and lost 6 Kobo on the Euro to sell at N1,573.93/€1, in contrast to the previous trading day’s N1,573.87/€1.
At the black market segment, the Nigerian currency traded flat against the Dollar yesterday at N1,405/$1, and at the GTBank forex counter, it was unchanged at N1,374/$1.
Interbank FX transactions increased sharply as market makers’ activities raised total Dollar volume exchanged to $137.048 million, more than 132 per cent above $58.990 million in turnover at the previous close. The surge in turnover was driven by increased deals at the NFEM window. The central bank reported that deal count at the interbank FX window rose to 138 from 67 on Friday.
As for the cryptocurrency market, major tokens advanced despite ongoing uncertainty around unresolved Coldcard wallet sweeps that have drained hundreds of Bitcoin (BTC), while traders are watching whether bitcoin can hold above $63,000 through the US session. BTC rose by 1.70 per cent to $63,765.88.
Bitcoin treasury firm Strategy disclosed Monday it sold 1,638 bitcoin for about $105 million between July 27 and Aug. 2, its third sale of 2026, per an SEC filing.
Also, an attacker has moved about 1,816 bitcoins, or roughly $114 million, from more than 5,200 addresses since July 30 in a fourth wave of sweeps targeting BTC in Coldcard-generated addresses.
Cardano (ADA) appreciated by 6.7 per cent to $0.1959, Binance Coin (BNB) gained 1.5 per cent to sell for $590.82, Solana (SOL) jumped by 1.3 per cent to $73.72, TRON (TRX) soared by 0.9 per cent to $0.3286, Dogecoin (DOGE) also grew by 0.9 per cent to $0.0703, Ripple (XRP) advanced by 0.5 per cent to $1.07, and Ethereum (ETH) rose by 0.4 per cent to $1,863.33, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
