Economy
Senate Stops Probe of $122.2m Excess Crude Account Fraud
By Dipo Olowookere
The Nigerian Senate has moved to stop an attempt by some of its members to influence the setting up of an ad-hoc committee to investigate the $122.2 million that had accrued from the Excess Crude Account (ECA) between May 2015 and August 2017, but not paid into the account.
This is just as the upper legislative chamber approved immediate abolition of ECA, an account being used to save oil revenues above a base amount derived from a defined benchmark price.
According to the upper legislative chamber of the National Assembly, the account is alien to the 1999 constitution as amended or any known law in the country.
The Senate resolution followed the adoption of a motion, ‘The Excess Crude Account: an Illegality and a Drain Pipe’, by Senator Rose Oko and co-sponsored by 43 other senators cutting across party and ethnic differences.
One of the prayers on the motion was that the senate should “mandate an ad-hoc committee to investigate the revenue that accrued from the amount above the oil benchmark from 2004 to date and its utilization, identifying any infractions committed and report back within two months.”
Surprisingly, majority of the senators, including former Governors who were parts of management of the account in their various states when it was introduced shouted ‘nayes’ while the Senate President, Mr Bukola Saraki, also a former Governor quickly ruled in favour of opposition to the probe.
The upper legislative chamber, however, urged the government to pay the amount above the oil benchmark into the Federation Account and appropriate some into the Nigerian Sovereign Investment Authority (NSIA) and other sectors in compliance with the constitution.
Senator Oko, while leading debate on the motion, said the Senate had observed that between May, 2015 and August, 2017, about $122.2 million had accrued and ought to have been paid to the ECA.
She enjoined the upper house to place the $122.2 million in the Sovereign Wealth Fund (SWF) upon the amendment of section 162 of the Constitution and other sectors as deemed appropriate.
The lawmaker particularly advised the government to act in conformity with sections 80 (1-4) and 162 (1-3) of the 1999 Constitution as amended in its revenue receipt and expenditure, saying that the present administration had in May 2017, announced a resumption of arbitrary payment into the ECA of $87 million ostensibly since May, 2015.
According to her, the Senate was “deeply saddened by the continued impunity of the ECA and its discretionary operation in contravention of the 1999 Constitution, creating room for imprudence, recklessness and arbitrariness.”
She added that the upper legislative chamber was “very concerned that this is one veritable source of huge revenue leakage in the country.”
The lawmaker informed that ECA was set up in 2004, ostensibly to provide savings for the country and stabilization for the economy during periods of shortfalls in oil revenue, adding that the accruals to the account were expected to be the amount above the benchmark of crude oil sales.
Senator Oko said the Upper House was “further alarmed that a report by the National Resource Governance Institute rates Nigeria’s Excess Crude Account as one of the most poorly managed around the world, where its operation is discretionary and at the whims of the Executive.”
She noted for instance that the ECA increased from $5.16 billion in 2005 to over $20 billion in 2008, and decreased to less than $4 billion by 2010 with no known tracking of its operations.
The lawmaker alleged that “at various times and from several quarters in 2013, it was purported that $5 billion was missing from the ECA, and that $2 billion was withdrawn without authorization.”
According to her, Nigeria cannot continue to operate an appreciable quantum of revenue arbitrarily, outside the law with no checks and balances while expecting amendment of section 162 of the constitution to cure the problem of savings for the nation.
In his contributions, Senator Adamu Aliero supported the abolition of the ECA which he recalled was introduced during former President Olusegun Obasanjo administration to protect planned budgets against shortfalls due to volatile crude oil prices.
He said if the account, out of which the independent power project, IPP among others were sponsored, is stopped, it would ensure transparency and accountability in revenue generation and payment into the Federation Account.
Senator Mao Ohuabunwa also argued that the ECA should be abolished despite the fact that the country needs to save for the rainy day due to the alleged impunity and arbitrariness in the account’s operation.
He called for the setting up an ad-hoc committee to investigate the revenue that accrued from the country’s oil benchmark from 2004.
Speaking in the same vein, Senator Atai Ali Aidoko described the present operations of ECA as the “biggest flush fund” in the country, saying one-third of the spending were done with illegality.
But Senator Suleiman Hunkuyi advised that National Assembly should look into how to regulate the ECA for surplus funding rather than its complete abrogation.
According to him, the exigency of the time called for the introduction of the account, but agreed that the way it was poorly managed should be urgently addressed.
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
