Business

Nigeria’s Oil Production Crashes To 900,000b/d

Published

3 years ago

September 19, 2022

Nigeria’s crude oil revenue has continued to slump as the Organization of the Petroleum Exporting Countries’ newly released Monthly Oil Market Report for September revealed that the country’s crude oil output fell to 900, 000 barrels per day (b/d) last month.

According to the OPEC report, Nigeria’s crude oil production (according to data reported by direct sources) dropped from 1 million b/d recorded in July, to 900, 000b/d in August.

This is as the price of the country’s crude grade, Bonny Light, also dropped by 10 per cent within the space of one month (July-August). Bonny Light, which was sold for $117/b in July, dropped to $106/b in August.

However, the country’s revenue from crude oil rose significantly year-on-year, as Bonny Light price rose by 64 per cent between 2021 and August 2022.

According to the report, the price of Bonny Light as of 2021 was $67 per barrel. However, this increased to $110 per barrel in August 2022.

Bonny Light is a light-sweet crude oil grade produced in Nigeria. It is an important benchmark crude for all West African crude production, and usually $1+ higher than international crude grade, Brent.

Nigeria’s crude oil production has been witnessing significant drops for some years now, as the country last recorded a 1.4mb/d in 2020.

Production gradually crashed further to 1.3mb/d at the beginning of 2021,and further to 1.2mb/d in the first quarter of this year.

As at the second quarter of this year, output dropped to 1.1mb/d, to 1mb/d in July, and 900, 000b/d last month.

Further checks by The PUNCH revealed that the country’s rig count went from 16 recorded in 2019 to 10 in August 2022.

Professor of Economics and Public Policy at the University of Uyo, Akwa Ibom State, Akpan Ekpo, told The PUNCH during an interview that despite crude oil retaining 80 per cent of the total trade, Nigeria needed to diversify as oil revenue was no longer reliable.

“Oil prices are volatile, and we need to think of other ways to boost revenue,” he said.

This is the U.S oil rig count rose by four to 763 in the preceding week to Sept. 16, its highest since August, according to energy services firm Baker Hughes Co said.

Baker Hughes said that put the total rig count up to 251, or 49 per cent over this time last year.

OPEC has said demand for its crude in 2023 remained unchanged from the previous MOMR to stand at 29.8 mb/d, which is around 0.9 mb/d higher than in 2022.

Despite the continuous rise in demand for OPEC crude, Nigeria’s low output puts its earnings at risk, as the country has been unable to benefit fully from the rise in demand.

The Group Chief Executive Officer, the Nigerian National Petroleum Corporation Limited, Mele Kyari, had, in an interview late last month, blamed the country’s low crude oil outputs on theft resulting from pipeline vandalism in the Niger Delta.

According to him, 295 illegal connections had been located around the pipeline, which, according to him, led to the shutdown of production.

On his part, Lawyer advising NNPC Ltd on oil and gas projects and transactions and partner at Bloomfield Law Practice, Ayodele Oni, advised the Federal Government to provide solutions to the oil theft challenges bedeviling the country.

PUNCH

Business

First Bank: Controversy Trails Multi-billion Naira Shares Deal

Published

13 hours ago

July 18, 2025

Editor

There seems to be uncertainty around the share sales and purchase deal between Oba Otudeko, Hassan Odukale on one hand and Femi Otedola on the other in First HoldCo, the parent company of First Bank.

The deal delivered an unprecedented quantum of the financial group’s shares to Otedola, the current Group Chairman of First Holdco, from the shareholdings of Odukale and Otudeko, the two immediate past chairmen of the group.

Also the deal ramped up Otedola’s holdings in the Group to an unprecedented level of 40%, the largest in the history of the bank and also largest single shareholdings amongst the tier-1 banks in Nigeria.

However, when Vanguard contacted the Nigerian Exchange Limited, the Spokesperson, Clifford Akpolo, said: ”I am not aware of these transactions as the NGX Reg has not notified the NGX.”

The NGX trading rules required that a sale or purchase of shares up to 5% must be notified to the NGX Reg. The deal covered about 25% of the bank’s total shareholding.

Similarly, First Bank’ s spokesperson, Mr. Ismail Omamegbe, did not respond to a text message sent to him, nor responded to calls in respect of the deal.

But sources in the bank indicated that the deal was executed off-trading floor and in connection with the long-drawn battle between the current board of the bank group and the two former board chairs who opted to surrender their shares for the bank to drop legal proceedings against them.

The deal, executed through 17 negotiated trades at ?31 per share, involved the transfer of 10.43 billion units of FBN Holdings shares and is estimated to be worth over ?324 billion.

The acquisition, confirmed by trading data and capital market sources, marks a turning point in the ownership structure of one of Nigeria’s oldest and most prominent financial institutions.

The buyer in all 17 deals was First Securities Ltd, while the sellers included CardinalStone Securities, Meristem Stockbrokers, Renaissance Capital, Regency Asset Management, Stanbic IBTC Stockbrokers, United Capital Securities, and First Securities Ltd (acting as both buyer and seller in select trades).
(VANGUARD)

Business

South-South Contributed Over 21% Nigeria’s GDP In 2024 – Banker’s institute

Published

1 day ago

July 17, 2025

Editor

The President of the Chartered Institute of Bankers of Nigeria, Prof. Pius Olanrewaju, has stated that the South-South region contributed N34 trillion to the country’s economy in 2024.

He made the remark at the South-South Zonal Banking and Finance Conference in Calabar on Thursday.

He spoke on the theme, ‘Building An Inclusive South-South: Economic Diversification as a Catalyst For Development.’

Olanrewaju, who quoted the data from the Cable Data Index, said the feat was more than 21 per cent of Nigeria’s real Gross Domestic Product.

The president described the growth as “impressive,” saying that it was not driven by oil alone but significant expansions in trade, services, and the creative industries.

According to him, to fully harness this potential, coordinated financial, technological, and policy support is essential.

“As we work to reposition the South-South for broad-based prosperity, the financial system must play a central role, not merely as a source of capital, but as a catalyst for innovation, ideas incubation, and inclusive economic growth.

“This conference, therefore, provides a strategic opportunity for stakeholders to reimagine the South-South economy, not merely as a resource belt, but as a region of diverse capabilities and resilient enterprises,” he said.

Olanrewaju added that Nigeria must move beyond old models and chart a new course for the development of the South-South region, where financial institutions and stakeholders collaborate to diversify the economy for shared prosperity.

He, however, commended Governor Bassey Otu for his pledge of land for CIBN Secretariat in Cross River and being the first sitting governor to willingly undergo and complete the Chartered Bankers Programme.

On his part, Otu said that the conference discussion on the economic diversification in the South-South region was timely against the backdrop of global trade and economic volatility that was affecting the nation’s economy.

Represented by his deputy, Mr Peter Odey, Otu said the South-South region must now act with urgency to diversify its economy while leveraging its shared natural endowment in agriculture and extractive resources.

“This conference must help develop tailored financial solutions that reflect the unique strengths and realities of states like Cross River in the south-south.

“Diversification should be evidence-based and must be backed not just by financial advice but project-focused financing and real investment support,” he stated.

He said that Cross River had taken the bold step to invest in its agricultural sector by launching an agro-processing hub.

Otu further said that the state had invested in aviation by acquiring more aircraft for Cally Air, constructing the Bakassi Deep Seaport and injecting N18 billion in its tourism sector.

Similarly, the Cross River Branch Controller of the Central Bank of Nigeria, Mr Tolefe Jibunoh, said that the region was blessed with natural resources, cultural diversity and immense human potential.

Jibunoh, who was represented by Head, Currency Control Office, CBN, Calabar, Mr Segun Shittu, noted that strategic diversification could unlock unprecedented opportunities for growth in the region.

He added that the CBN remained steadfast in maintaining monetary possibilities and promoting a sound financial system as a catalyst for sustainable economic development for the benefit of all.

NAN

Business

Naira Rises In Parallel Market

Published

3 days ago

July 15, 2025

Editor

The naira today appreciated to N1,545 per dollar in the parallel market from N1,550 per dollar last weekend.
Likewise, the Naira appreciated to N1,528.65 per dollar in the Nigerian Foreign Exchange Market (NFEM).

Data published by the Central Bank of Nigeria, CBN, showed that the exchange rate for the naira fell to N1,528.65 per dollar from N1,532 per dollar last week Friday, indicating N3.35 appreciation for the naira.

Consequently, the margin between the parallel market and NFEM rate narrowed to N16.35 per dollar from N18 per dollar last weekend.