Economy
Senate Uncovers N10tr Fraud in NNPC
By Modupe Gbadeyanka
An alleged fraud of about N10 trillion in the oil and gas sector has been unearthed by the Joint Senate Committee on Petroleum (Downstream, Upstream) and Gas.
According to the committee, the alleged fraud was perpetrated by officials of the Nigerian National Petroleum Corporation (NNPC) in connivance with some independent marketers and other key players in the petroleum industry between 2006 and 2016.
To get to the root of this mess, the committee said it would carry out a holistic investigation of the fraud with a view to bringing perpetrators to book, having secured the strong support of President Muhammadu Buhari and the leadership of the Senate.
Addressing newsmen at the weekend in Abuja, the committee said available records before it showed that during the period under investigation, NNPC imported fuel that was more than 40 percent of the local consumption besides the perceived gross underutilisation of 445,000 barrels it allegedly received for local refining and local consumption on yearly basis.
At the briefing, Chairman of the Senate Committee on Petroleum (Downstream), Mr Kabiru Marafa, noted that N5.2 trillion of the entire sum was traceable to NNPC which he said was collected by the corporation as subsidy from the Federal Government for the importation of petroleum products, notably between 2006 and 2016.
He said the amount excluded monies realisable from the 445,000 barrels of crude oil allocated to it annually for production in the nation’s refineries for local consumption.
According to him, NNPC, being the custodian of crude oil resources of the nation, responsible for 51 percent of petroleum products’ importation into the country over the years, aside the 445,000 crude allocation it gives itself on a yearly basis for sales for local refining, must account for the N5.2trillion.
“Available records show that it has spent on subsidy on its own, 51 percent of petroleum products importation between 2006 and 2016 aside the N3.8 trillion spent on similar subsidy for independent marketers and about $1.5 billion yet to be accounted for by other key players in the industry,” Mr Marafa said.
The lawmaker stated further that the committee had discovered how oil marketers fraudulently evacuated petroleum products from storage leased by NNPC without any sense of accountability, pointing out that at least 100 million litres of petrol worth N14 billion had been stolen by two different oil companies without any sanction imposed on them by the NNPC.
He, therefore, ordered the NNPC to sanction the affected companies this week or face huge embarrassment following the expose.
“This committee has established the missing of 100 million litres of PMS from such storage arrangement.
“We expected NNPC to have taken action against the two companies that carried out the theft but since it has not, we hereby order it to do so immediately, precisely within this week, failure of which we shall make the whole details known to the public,” he threatened.
Mr Marafa also threatened that all the key players in the sector along with their collaborators who had taken the country for a ride during the period under review must be brought to book, explaining that the fraud was largely perpetrated during the administrations of former Presidents Olusegun Obasanjo, Umaru Musa Yar’Adua, Goodluck Jonathan and partly during the current administration of Buhari.
“President Buhari is highly supportive of this move by the Senate and we shall not fail in carrying out the needed holistic investigation on obvious sharp practices in the sector. Needed documents for the onerous task are already in our possession,” he said.
Against this background, he said a three-day public hearing would soon be conducted by the committee as he listed those expected at the hearing to include: present and past executives of NNPC, independent marketers, heads of Licenced Inspection Agency, Nigeria Ports Authority (NPA), Federal Inland Revenue Service (FIRS), Nigeria Customs Service, and NIMASA, among others.
The lawmaker said that the whistle blower approach being adopted by the executive to unravel fraudulent practices of corrupt public officials would also be used to fish out those involved in the oil sector’s massive fraud.
He said the committee would ensure that strict sanctions were imposed on players in the sector who might attempt to frustrate the investigation by failing to co-operate with the committee during its investigation.
Additional information from ThisDay.
By Adedapo Adesanya
Dangote Petroleum Refinery imported a total of $3.74 billion) worth of crude oil in 2025, to make up for shortfalls that threatened the plant’s 650,000-barrel-a-day operational capacity.
The data disclosed in the Central Bank of Nigeria’s Balance of Payments report noted that “Crude oil imports of $3.74 billion by Dangote Refinery” contributed to movements in the country’s current account position, as Nigeria imported crude oil worth N5.734 trillion between January and December 2025.
Last year, as the Nigerian National Petroleum Company (NNPC), which is the refinery’s main trade partner and minority stakeholder, faced its challenges, the company had to forge alternative supply links. This led to the importation of crude from Brazil, Equatorial Guinea, Angola, Algeria, and the US, among others.
For instance, in March 2025, the company said it now counts Brazil and Equatorial Guinea among its global oil suppliers, receiving up to 1 million barrels of the medium-sweet grade Tupi crude at the refinery on March 26 from Brazil’s Petrobras.
Meanwhile, crude oil exports dropped from $36.85 billion in 2024 to $31.54 billion in 2025, representing a 14.41 per cent decline, further shaping the external balance.
The report added that the refinery’s operations also reduced Nigeria’s reliance on imported fuel, noting that “availability of refined petroleum products from Dangote Refinery also led to a substantial decline in fuel imports.”
Specifically, refined petroleum product imports fell sharply to $10.00 billion in 2025 from $14.06 billion in 2024, representing a 28.9 per cent decline, while total oil-related imports also eased.
However, this was offset by a rise in non-oil imports, which increased from $25.74 billion to $29.24 billion, up 13.6 per cent year-on-year, reflecting sustained demand for foreign goods.
At the same time, the goods account remained in surplus at $14.51 billion in 2025, rising from $13.17 billion in 2024, supported largely by activities linked to the Dangote refinery and improved export performance in other segments.
The CBN stated that the stronger goods balance was driven by “significant export of refined petroleum products worth $5.85bn by Dangote Refinery,” alongside increased gas exports to other economies.
Nigeria posted a current account surplus of $14.04 billion in 2025, lower than the $19.03 billion recorded in 2024 but significantly higher than $6.42 billion in 2023. The decline from 2024 was driven partly by structural changes in oil trade flows, including crude imports for domestic refining, according to the report.
Pressure on the current account came from higher external payments. Net outflows for services rose from $13.36 billion in 2024 to $14.58 billion in 2025, driven by increased spending on transport, travel, insurance, and other services.
Similarly, net outflows in the primary income account surged by 60.88 per cent to $9.09 billion, largely due to higher dividend and interest payments to foreign investors.
In contrast, secondary income inflows declined slightly from $24.88 billion in 2024 to $23.20 billion in 2025, as official development assistance and personal transfers weakened, although remittances remained a key source of inflow, as domestic refineries grappled with persistent feedstock shortages, exposing a deepening supply paradox in the country’s oil sector.
This comes despite the Federal Government’s much-publicised naira-for-crude policy designed to prioritise local supply.
By Aduragbemi Omiyale
An application has been submitted by Sovereign Trust Insurance Plc for its proposed N5.0 billion rights issue.
The application was sent to the Nigerian Exchange (NGX) Limited, and it is for approval to list shares from the exercise when issued to qualifying shareholders.
A notice signed by the Head of Issuer Regulation Department of the exchange, Mr Godstime Iwenekhai, disclosed that the request was filed on behalf of the underwriting firm by its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities.
The company intends to raise about N5.022 billion from the rights issue to boost its capital base, as demanded by the National Insurance Commission (NAICOM) for insurers in the country.
Sovereign Trust Insurance plans to issue 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026.
“Trading license holders are hereby notified that Sovereign Trust Insurance has through its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities, submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026,” the notification read.
By Adedapo Adesanya
Food Concepts Plc, the parent company of fast food brands like Chicken Republic and PieXpress, has disclosed plans to pay 10 Kobo in interim dividend to new and existing shareholders for the 2026 financial year.
This was disclosed by the company in a notice to the NASD Over-the-Counter (OTC) Securities Exchange, where it trades its securities.
The notice indicated that the proposed interim dividend, which comes with no bonus, will be paid to those who hold the stocks of the company as of the qualification date for the dividend, which was Tuesday, March 24.
This means only those who hold the company’s shares as of the closing session will be eligible to receive the stipulated dividend payment.
The shareholders of the company will be credited with the 10 Kobo dividend on Tuesday, March 31.
The notice noted that the closure of the company’s register will be on Wednesday, March 25, through Friday, March 27, 2026, both days inclusive.
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