Business
Naira Extends Largest Monthly Drop Since Feb
The naira weakened against the dollar, extending its worst monthly performance since February, amid speculation foreign investors sold Nigeria’s debt and as oil prices declined.
The currency dropped for a second day as emerging-market stocks fell, heading for the biggest monthly loss in a year. Yields on the 16.39 per cent domestic bonds due January 2022 rose to a one-month high on Thursday, according to data compiled by Bloomberg.
Emerging-markets strategist at Standard Bank Group Limited in London, Mr. Samir Gadio, said, “It looks as if the global risk-off environment is feeding into Nigerian assets, broadly in line with what other emerging markets are experiencing.
“As local market players witness the shift in the offshore positioning, they are also likely to push dollar-naira higher.”
The naira weakened 0.1 per cent to N158.63 per dollar in Lagos, the commercial capital, taking its monthly decline to 0.4 per cent.
The yield on the 2022 securities rose 23 basis points, or 0.23 percentage point, to 11.86 per cent on Thursday, the highest since April 29, according to the data compiled by Bloomberg.
Bonny Light crude, one of Nigeria’s main export grades, fell for a third day, dropping 0.6 per cent to $103.41 per barrel. Nigeria depends on oil shipments for 80 per cent of government revenue and 95 per cent of its export income.
Continue Reading
The Nigerian Shippers’ Council (NSC), in collaboration with the Economic Community of West African States (ECOWAS) Commission, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Nigeria Customs Service (NCS) on Wednesday carried out a sensitization exercise for traders and farmers around the Seme border axis on the need to make use of its Border Information Centre (BIC) located at the border.
The BIC according to the agency was established in 2014 to encourage cross border trade. It is to solve challenges faced by traders at the borders who are not aware of what is required of them in getting goods across the border.
Speaking at the event theme: “Trade Now: Empowering Cross-Border Traders through the Trade Information Desk (TID),” the Executive Secretary of NSC, Dr. Akutah Pius expressed satisfaction at the recent surge in the use of the BIC
“We are encouraging you all to start using the BIC, we are happy that the use of the facility has increased” he said
Akutah thanked the GIZ and ECOWAS Commission for their strategic roles in organising the event, even as he also appreciated their efforts at the Seme Border to simplify cross-border business.
Earlier, the Director of Consumer Affairs Department of the ShippersCouncil, Mrs. Ify Okolue, said the mandate of the Council goes beyond seaport, and covers the border posts.
She noted that the BIC initiative aligns with the Council’s mandate as Port Economic Regulator and complements other interventions, including Inland Dry Ports, Vehicle Transit Areas, and dispute resolution platforms.
According to her, the Council’s Border Information Centre (BIC) at Seme Border provides traders with accurate information on tariffs, documentation, standards, and dispute resolution, reducing delays and trade costs.
Noting that BICs are already operational at Seme-Krake, Jibia-Maradi, Illela-Birnin Koni, and Mfum-Nkot borders, she observed that Idiroko BIC will become operational before the end of the second quarter of 2026.
She urged traders, especially women and youth, to utilise the centres to enhance transparency, compliance, and regional trade efficiency.
“The BIC serves as a structured platform for transparency, guidance, and dispute resolution. It provides traders with accurate information on tariffs, documentation requirements, import and export procedures, standards, sanitary and phytosanitary measures, and other regulatory obligations. By reducing information gaps, the Centre directly addresses one of the key barriers to trade formalisation and competitiveness” she said
Meanwhile, the Director of Trade, ECOWAS Commission, Mr. Kolawole Sofola, stressed the need for regular sensitisation and awareness campaigns on the best approaches, documentation and dispute resolution at the Seme Border area.
Sofola, who was represented by Sarah Okporufe, also observed that the role of e-Commerce, gender-inclusive trade and sustainable practices should be prioritised in the sensitisation campaigns.
The ECOWAS team observed that a lot of traders at the Seme border corridor aren’t exploring the ECOWAS Trade Liberalization Scheme (ETLS) to enjoy the export or import of goods that are devoid of Customs tariffs, especially goods that originate from the subregion.
“Another right that traders have is that as soon as they have a valid passport, they can move to any ECOWAS country to reside or transact businesses.
There is a process to have a biometric ECOWAS identity card that we expect will be adopted by Nigeria to allow traders and residents enjoy better access for businesses and other purposes,” the ECOWAS Commission representative said.
Speaking on behalf of the Comptroller-General of Nigeria Customs Service (NCS), Dr. Bashir Adewale Adeniyi, the Customs Area Controller, Seme Border Command, Comptroller Wale Adenuga, assured a maximum of 40 hours for the processing of legitimate imports and exports via the Seme Border.
According to him, farmers are particularly given consideration because of their perishable items.
While observing that trade facilitation is the core philosophy of the NCS under Adeniyi’s leadership, Comptroller Adenuga pledged the NCS’s continuous support at the Seme Border towards facilitating legitimate trade.
He encouraged traders to visit Seme Customs and the BICs to seek information about their trade in order to be informed about the requisite documentation, duties and goods that are prohibited.
“At Seme Customs, we will give you adequate information and adequate support.
By: Nkpemenyie mcdominic, Lagos
The Natural Gas Senior Staff Association of Nigeria (PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).
President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.
Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.
The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.
In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.
He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.
Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.
He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.
Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.
“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.
He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.
“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..
According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.
“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.
Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.
“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.
Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.
“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.
According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”
Nigeria directs all oil, gas revenues to federation account in sweeping reform
Nigerian President Bola Tinubu has signed an order directing that all oil and gas revenues owed to the government be paid directly into the federation account, in sweeping reforms aimed at boosting public finances, the presidency said on Wednesday.
Under the law, the Nigerian National Petroleum Corporation keeps 30% of oil and gas profits for frontier exploration in inland basins. The presidency said those funds will now be paid into the federation account and appropriated by the government.
The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
NNPC also retains 30% of oil and gas sales as operational costs and receives 30% of proceeds from Production Sharing Contracts. Under the new directive, all revenues under these arrangements will flow directly to the federation account, while the company will instead receive appropriated management fees.
Royalty payments, petroleum profit taxes and other statutory revenues previously collected and retained by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will also be paid directly into the Federation Account. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will likewise remit its revenues in full, with its cost of collection to be funded through appropriation.
Tinubu’s office said deductions enabled by the law had sharply reduced net oil inflows and contributed to fiscal strain across federal, state and local governments. The president also ordered a review of the law and established an implementation committee to enforce the changes.
-
Maritime4 days ago
Nigeria To Pilot Regional Fishing Vessels Register In Gulf Of Guinea —Oyetola
-
Sports4 days agoGombe-Gara Rejects Chelle $130,000 monthly salary
-
Maritime4 days ago
Customs Declares War Against Narcotics Baron At Idiroko Border
-
Sports4 days agoTEAM RIVERS SET TO WIN 4×400 ” MORROW” …Wins Triple jump Silver
-
Maritime4 days ago
NIMASA,NAF Boost Unmanned Aerial Surveillance For Maritime Security
-
Sports4 days agoNPFL Drops To 91st In Global League Rankings
-
Sports4 days agoNIGER DELTA GAMES PANACEA TO YOUTH DEV”
-
Sports4 days agoNPFL Impose Fines On Kwara United Over Fans Misconduct