Business
Mixed Fortunes In Petroleum Sector … As Companies Roll Out Results
There were mixed fortunes in the petroleum sub-sector of the Nigerian Stock Exchange (NSE) as three major players, Oando, African Petroleum and Chevron Plc released their results recently.
These results have taken their toll on trading as investors’ reaction had begun to reflect on stocks prices in the sector on the floor of the Exchange.
Oando and AP results were impressive while Chevron was a disappointment to investors.
Oando Plc posted an impressive result for the year ended with a turnover of N339.4 billion as against N185.9 billion in 2007, representing an increase of 82.59 per cent in its revenue. The company’s profit after tax, which recorded an impressive 31.5 per cent rise, stood at N8.34 billion compared with N6.34 billion in 2007. the directors of the company thus recommended a dividend of N8.00 per share to their shareholders. Investors approval immediately reflected in an upward movement of its share price. AP declared its audited result for the year ended December 31, 2008, with a turnover of N162.6 billion in contrast with N102.5 billion in 2007, representing an increase of 58.63 per cent in its revenue.
Profit after tax stood at N5.73 compared with N5.10 recorded in the previous year. The company’s board of directors proposed to pay N5.20 dividend per share to its shareholders with the closure date being July 7, 2009 and payment will be on July 27, 2009.Investors were, however disappointed with chevron Plc’s audited result for the year ended December 31, 2008. The result showed a turnover of N48.67 billion in 2007, indicating 32.96 per cent decrease. The company declared a loss after tax of 225.43 million as against profit after tax of N1.959 billion in 2007, indicating 111.51 per cent drop.
According to the Managing Director of Dakar Services Limited, Mr. Gerald Ibe, chevron’s result compared with its peers is a disappointment. “The other companies may not have paid much in dividend but their profit didn’t decline” He pointed out that Chevron had an internal crisis and urged the management to work on taking the company back to profitability. Analysts cited the intractable youth restiveness in the Niger Delta, relative stability in fuel pump price and the deregulation of the downstream sector of the industry as being responsible for this downturn in the fortune of the oil companies.
“The impact of activities of these youths obviously informed the instability of the oil sector listed on the floor of NSE as the prices fluctuate”, the Managing Director of Laksworth Investment & Securities Limited, Mr. Kayode Awotile said.
He attributed the decline in the PAT by some of the companies to the crisis in the Niger Delta and current global economic situation.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.