Economy
Nigeria Cuts Crude Oil Theft to 5,000 Barrels Per Day
By Adedapo Adesanya
Nigeria has adequately reduced the amount of crude oil lost to theft by 95 per cent to as low as 5,000 barrels per day at the end of 2024, from a high of up to 108,000 barrels per day in first quarter of 2022.
This was disclosed by the chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe, while speaking in Abuja over the weekend.
According to Mr Komolafe, the reduction is a major boost for the 2025 budget as Nigeria aims to produce 2.06 million barrels per day this year, at an international crude oil price of $75 per barrel.
The country also aims to reduce deficit financing for the over N54 trillion budget this year.
Mr Komolafe stated that due to the renewed onslaught on oil theft, crude production in Nigeria now averages 1.75 million barrels per day, with gas production now hitting 7 billion standard cubic feet per day (scfd).
“Oil theft averaged 108,000 bpd in Q1, 2022 resulting in the shutdown of trunklines (TNP, TFP, NCTL etc).
He noted that production dropped to as low as one million barrels per day in September 2022 (loss of around 600, 000 barrels per day) due to the shutdown of the trunk lines.
“Oil theft has significantly reduced due to the ongoing kinetic and non-kinetic intervention by the government. The oil theft which averaged about 12,000 barrels per day in the last 24 months further reduced to 5,000 barrels per day in the last quarter.
“Whereas the production fluctuated around 1.5 million barrels per day, the sustained fight against oil theft has resulted in steady increase in production. We were able to restore and sustain the production to 1.7 barrels per day. Efforts are ongoing to increase the production by l million bpd by December 2026,” Mr Komolafe stated.
He emphasised the need for a paradigm shift to position Nigeria as a leader in energy security and economic growth, highlighting several reforms and achievements in Nigeria’s oil and gas sector.
On Nigeria’s oil and gas potential and global positioning, he noted that Africa accounts for five of the world’s top oil-producing countries, and that the country stands as the continent’s second-largest oil reserve holder.
In the same vein, he stated that Nigeria has the largest gas reserves standing at 209 Trillion Cubic Feet (TCF), with oil reserves estimated at 37.5 billion barrels.
The NUPRC boss stated that since the enactment of the Petroleum Industry Act (PIA) in 2021, the commission had driven several initiatives to enhance regulatory effectiveness and attract investments.
The commission, he said, unveiled its 10-year regulatory and corporate strategic plan (2023–2033) in May 2023, followed by a regulatory action plan for 2024, detailing key industry reforms.
These reforms, according to him, focus on increasing oil and gas reserves and production, enhancing hydrocarbon accounting transparency and achieving cost efficiency and decarbonisation in upstream operations.
On the 2024 licensing round and investment drive, Komolafe highlighted that NUPRC launched its 2024 round, offering 24 oil and gas assets to investors, explaining that to attract global participation, the commission held roadshows in Houston, Miami, London and Paris, showcasing Nigeria’s energy potential.
He said the government aims to increase production by 1 million barrels per day by December 2026 under the Project 1 MMBOPD Initiative, leveraging collaboration among operators, service providers, financiers and host communities.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited suffered a 0.11 per cent loss on Thursday after the bears made a comeback after being chased away by the bulls a day earlier.
The local bourse was under attack despite a positive market breadth index and strong investor sentiment after it ended with 29 appreciating stocks and 23 depreciating stocks.
Business Post observed that profit-taking in some mid-equities plunged Customs Street during the trading session, with Fidson shedding 9.60 per cent to trade at N17.90.
Ecobank Nigeria depreciated by 9.51 per cent to sell for N31.40, Guinea Insurance lost 8.33 per cent to quote at 66 Kobo, Prestige Assurance slipped by 7.50 per cent to N1.11, and Sunu Assurances crashed by 6.44 per cent to N5.52.
On the flip side, PZ Cussons gained 10.00 per cent to settle at N32.45, Oando improved by 10.00 per cent to N52.80, Honeywell Flour appreciated by 9.96 per cent to N13.03, Caverton jumped by 9.80 per cent to N2.69, and Livestock Feeds rose by 9.35 per cent to N6.90.
Yesterday, the energy counter appreciated by 0.88 per cent and was the only gainer among the key sectors of the market.
The insurance sector went down by 0.92 per cent, the banking index depreciated by 0.75 per cent, the industrial goods space crumbled by 0.43 per cent, and the consumer goods sector lost 0.17 per cent, while the commodity counter closed flat.
Consequently, the All-Share Index (ASI) decreased by 123.53 points to 107,675.46 points from 107,798.99 points and the market capitalisation retreated by N77 billion to N67.102 trillion from N67.179 trillion.
A total of 423.4 million equities worth N9.6 billion were traded in 11,112 deals on Thursday compared with the 245.5 million equities valued at N8.4 billion transacted in 10,098 deals on Wednesday, representing a rise in the trading volume, value, and number of deals by 72.46 per cent, 14.29 per cent and 10.04 per cent, apiece.
The activity chart was topped by FCMB with 102.3 million stocks valued at N1.1 billion, Zenith Bank transacted 33.3 million equities worth N1.6 billion, Access Holdings exchanged 31.2 million shares for N801.9 million, Jaiz Bank traded 24.4 million equities worth N82.0 million, and Caverton sold 20.9 million stocks valued at N54.6 million.
By Adedapo Adesanya
The federal government, the 36 states, and the 774 local government areas of the federation have shared a total of N1.703 trillion in revenue generated in January 2025.
This amount represents an increase of 19.6 per cent or N279 billion from the N1.424 trillion generated in December 2024.
This is according to a press release by the Director (Press and Public Relations) at the Office of the Accountant General of the Federation, Mr Bawa Mokwa, on Thursday,
The N1.703 trillion total distributable revenue comprises N749.727 billion in statutory revenue, N718.781 billion in Value Added Tax revenue, N20.548 billion from the Electronic Money Transfer Levy, and N214 billion in augmentation.
The statement was based on a communique issued by the Federation Account Allocation Committee (FAAC) after its monthly meeting for February 2025.
It noted that the total gross revenue amounted to N2.641 trillion, which was slightly higher than the N2.310 trillion recorded in the previous month.
The total deduction for cost of collection was N107.786 billion while total transfers, interventions, refunds and savings was N830.663 billion.
It was disclosed that the federal government received N552.591 billion, state governments were allocated N590.614 billion, and the Local Government Councils received N434.567 billion, while an additional N125.284 billion was shared with benefiting states as derivation revenue as 13 per cent of mineral revenue.
The statement further noted that the gross statutory revenue for the month under review stood at N1.848 trillion, an increase of N622.125 billion from the N1.226 trillion recorded a month earlier.
Gross VAT revenue for the month was N771.886 billion, rising by N122.325 billion from N649.561 billion in December.
From the N749.727 billion statutory revenue, the federal government got N343.612bn, the state governments were given N174.285 billion, and the councils received N134.366 billion, while N97.464 billion was also allocated to states benefiting from derivation revenue.
Further, from the N718.781 billion VAT revenue, the federal government received N107.817 billion, state governments were got N359.391 billion, and Local Government Councils shared N251.573 billion.
For the N20.548 billion Electronic Money Transfer Levy (EMTL), the federal government received N3.082 billion, state governments received N7.192 billion, and Local Government Councils received N10.274 billion.
The N214 billion augmentation was shared with the federal government receiving N98.080 billion, state governments receiving N49.747 billion, and Local Government Councils receiving N38.353 billion, while N27.820 billion was shared among the benefiting states as derivation revenue.
The communique also highlighted increases in collections from VAT, Petroleum Profit Tax, Companies Income Tax, Excise Duty, Import Duty, and CET Levies, while there was a significant decrease in EMTL and Oil and Gas Royalty receipts.
By Adedapo Adesanya
Oil prices rose more than 2 per cent on Thursday amid supply concerns after the US President, Mr Donald Trump, revoked a licence granted to US oil major, Chevron, to operate in Venezuela.
The news led Brent crude oil futures to spike by $1.53 or 2.1 per cent to $74.06 a barrel while the US West Texas Intermediate (WTI) crude oil futures increased by $1.64 or 2.4 per cent to $70.26.
The Chevron licence revocation means the company will no longer be able to export Venezuelan crude.
However, if Venezuelan state oil company, PDVSA, exports oil previously exported by Chevron, US refineries will be unable to buy it because of U.S. sanctions.
President Trump said this was due to the lack of electoral reform in the South American country alongside with insufficient action on migration.
Chevron has been exporting around 240,000 barrels of Venezuelan crude to the US daily after former US President Joe Biden granted them a waiver.
The amount constitutes around 25 per cent of the country’s total oil production and generates substantial revenues that stay in the Venezuelan economy.
Meanwhile, market analysts noted that the move could also lead to the negotiation of a fresh agreement between the Chevron and PDVSA to export crude to destinations other than the US.
This development could also impact the Organisation of the Petroleum Exporting Countries and its allies, OPEC+, to which Venezuela is a member.
Chevron’s exit could reduce Venezuela oil’s production, giving OPEC+ capacity to increase output.
However, investors were still keeping an eye on signs of a potential peace deal in Ukraine, which could result in higher Russian oil flows.
President Trump said Ukrainian President Volodymyr Zelenskiy will visit the US on Friday to sign an agreement on rare earth minerals.
However, the Ukrainian leader said the success of talks would hinge on continued US aid.
The market was pressured by news that US economic growth slowed in the fourth quarter amid cold weather and concerns that tariffs will hurt spending through higher prices.
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