Business
Bayelsa Wades Into SPDC, Communities’ Face-Off
The Bayelsa government has waded into the crisis between four communities and the Shell Petroleum Development Company (SPDC) which led to the closure of the Kolo Creek field logistics base for two weeks.
Some youths from four communities in Kolo Creek, including Imiringi, Elebele, Otuasega and Oruma had on July 14 protested at SPDC JV’s Kolo Creek field logistics base over the oil company’s failure to supply them electricity from its facilities.
The state government had to intervene in the crisis when the protest was almost becoming violent and threatening the peace of the area, more so with the debilitating effect on gas supply to the Imringi Gas Turbine, which supplies electricity to the state capital and its environs.
When newsmen visited Elebele community last Tuesday, some of the youths were seen protesting SPDC’s alleged non-compliance with the Global Memorandum of Understanding (GMoU) it signed with the communities, particularly in respect of electricity supply to the areas.
A credible source said that Kolo Creek field logistics base had been supplying electricity to Elebele, Imiringi and Otuasega communities in line with the agreement signed by all the parties in 1999.
The quick intervention of Governor Timipre Sylva, who promised to convene a tripartite meeting with the communities and the SPDC, led to the opening of the Anglo-Dutch oil giant’s facility.
Already, a preliminary meeting had been held between the traditional leaders of the communities, led by King Lawson Obereke, and the governor’s Chief of Staff, Samuel Ogbuku, at the Opolo residence of a former Commissioner for Energy, Maxwell Oko, to fashion out modalities for the tripartite meeting with the governor.
Spokesman for SPDC, Precious Okolobo, confirmed that the company was having challenges in meeting the increased level of electricity supply to the communities, because they had increased in population and landscape, thereby outstripping the installed capacity.
Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.
Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.
The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.
The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.
Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.
The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.
The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.
The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.
