Connect with us

Business

Five-month crude oil exports fetch Nigeria N20tn

Published

on

Nigeria exported an estimated 148.9 million barrels of crude oil valued at about N20.22tn in the first five months of 2026, showcasing the scale of the country’s oil trade despite persistent concerns over production levels.

The crude barrels were exported by both international and indigenous oil companies, including the Nigerian National Petroleum Company Limited.

While the export of crude oil may lead to a lack of sufficient domestic feedstock for Dangote Petroleum Refinery and other local refineries, it boosts the country’s foreign exchange earnings.

An analysis of crude oil production and export data for January to May 2026 showed that the country’s crude exports were worth approximately $14.66bn, equivalent to N20.22tn at an exchange rate of N1,380 to the dollar.

In comparison, Nigeria exported 154 million barrels of crude worth about $11.32bn during the same period of 2025. Although export volume in 2026 fell by 5.1 million barrels, representing a 3.3 per cent decline, the export value jumped by about $3.33bn, or 29.5 per cent, driven by significantly higher crude oil prices this year.

The figures obtained from the Central Bank of Nigeria indicate that the total volume of crude oil produced by the country during the five-month review period in 2026 was 216.85 million barrels, with a gross market value of approximately $21.28bn, or about N29.36tn, using the same exchange rate.

The calculations were derived from the average daily crude oil production and export volumes for each month, multiplied by the number of days in the respective months, and valued using the corresponding average monthly Bonny Light crude oil prices.

A breakdown of the CBN figures showed that Nigeria produced about 45.26 million barrels in January, 36.68 million barrels in February, 42.78 million barrels in March, 44.70 million barrels in April, and 47.43 million barrels in May.

Crude exports followed a similar trend, with 31.31 million barrels exported in January, 24.08 million barrels in February, 28.83 million barrels in March, 31.20 million barrels in April, and 33.48 million barrels in May.

See also  Thank God for Dangote refinery, Ojulari tells Nigerians

Using the prevailing average crude prices for each month, January’s exports were valued at about $2.13bn, February $1.74bn, March $3.06bn, April $3.95bn, and May $3.77bn, bringing the cumulative export value to $14.66bn.

On the production side, crude output was valued at approximately $3.08bn in January, $2.65bn in February, $4.54bn in March, $5.67bn in April, and $5.34bn in May, resulting in a cumulative value of $21.28bn.

The data further showed that average daily crude oil production improved over the review period. Output increased from 1.46 million barrels per day in January to 1.53 million barrels per day in May after dropping to 1.31 million barrels per day in February.

Average daily crude exports also rose from 1.01 million barrels per day in January to 1.08 million barrels per day in May, despite recording 0.86 million barrels per day in February.

Overall, Nigeria exported about 68.7 per cent of the crude oil it produced during the five months, leaving roughly 67.95 million barrels available for domestic refining, storage, operational use, and inventory adjustments.

The effect of the US-Iran war was also felt in the monthly average prices of crude from March to May. In January and February, before the war started, average crude prices were $68.05 and $72.33 a barrel. But the prices jumped to $106.09 in March, $126.71 in April, and $112.63 in May, reflecting the sharp rise in crude prices due to the closure of the Strait of Hormuz.

The estimated values represent the gross market value of the crude oil based on average monthly international crude prices and do not reflect actual government revenue, which is affected by production-sharing contracts, royalties, taxes, operational costs, domestic crude supply obligations, and other commercial arrangements.

Year-on-year comparison

Meanwhile, Nigeria’s crude oil export earnings rose by almost 30 per cent in the first five months of 2026 despite a decline in export volumes, as higher international oil prices more than offset the lower shipments.

While the country exported an estimated 148.9 million barrels of crude oil during the period, approximately 154.0 million barrels were exported in the corresponding period of 2025.

See also  FG cancels $717m World Bank power loan amid blackouts; read details

The figures indicate that crude export volumes declined by about 5.1 million barrels, representing a 3.3 per cent year-on-year decrease. Average daily crude exports also dropped from 1.02 million barrels per day in the first five months of 2025 to 0.984 million barrels per day during the same period in 2026, a decline of 3.5 per cent.

Despite the lower export volumes, the estimated value of Nigeria’s crude oil exports surged to about $14.66bn between January and May 2026 from approximately $11.32bn recorded during the corresponding period of 2025.

This represents an increase of about $3.34bn, or 29.5 per cent, within one year. This highlighted the effect of the US-Iran conflict on crude prices this year.

At an exchange rate of N1,380 to the United States dollar, the estimated value of crude exports for the first five months of 2026 translates to approximately N20.22tn, compared with about N15.62tn in the same period of 2025.

The analysis showed that the increase in export earnings was driven largely by stronger international crude oil prices rather than higher export volumes.

Although Nigeria exported fewer barrels in 2026, the significantly higher crude oil prices, particularly in March, April, and May, boosted the overall market value of the country’s crude exports.

Domestic crude supply to Nigeria’s refineries declined to 15.84 million barrels in May 2026, even as the facilities achieved a combined intake of 17.92 million barrels for the month, according to the latest midstream and downstream statistics released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

Across the first five months of the year, domestic supply to refineries had shown a generally upward trend, rising from 8.83 million barrels in January and 8.86 million barrels in February to 11.49 million barrels in March, before peaking in April and moderating in May.

See also  Transcorp Hotels posts N97bn revenue in 2025, declares N1.30 final dividend

As oil producers make money from high oil export volumes, local refiners said this was against the domestic crude supply obligation of the Petroleum Industry Act.

The Dangote refinery has recently accused the Federal Government and its agencies of alleged deliberate sabotage, undermining its operations and frustrating its investment in Nigeria’s downstream petroleum sector, an allegation the Federal Government denied.

In a recent affidavit filed before the Federal High Court in Lagos seeking an interim injunction to stop the issuance and renewal of petroleum import licences, the company said its operations are anchored on crude oil supply arrangements with the Nigerian National Petroleum Company Limited, which it described as central to its refining business.

The refinery said its business operations include purchasing crude oil from the Federal Government through the NNPC and refining products for sale to Nigerians to ease pressure on the government to make petroleum products available for local consumption.

The refinery, however, alleged that the government had failed in its obligation to ensure adequate crude supply to local refineries, claiming the development was deliberate and harmful to its investment.

Speaking with our correspondent, the publicity secretary of the Crude Oil Refinery Owners Association of Nigeria, Eche Idoko, said modular refineries did not receive crude from the Federal Government but from private oil producers.

“None of the modular refineries I know have gotten crude under the Federal Government arrangement. But I know that through private arrangements, the Edo refinery is getting it from Ingenti. Aradel is getting crude from EOP and a couple of other fields, too. Opac is getting from Pillar,” he said in a chat on Sunday.

Idoko appealed to the Federal Government to effectively implement the DSCO and make enough crude available to local refineries.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Whatsapp to begin charging businesses per message from October 1

Published

on

Meta, the parent company of WhatsApp, will begin charging businesses for certain messages sent through the WhatsApp Business Platform from October 1, 2026.

This was disclosed in a WhatsApp Business Platform pricing update in July 2026.

The new charges will be applied to companies using the official WhatsApp Business Platform, formerly known as the WhatsApp Business API, to manage customer conversations at scale.

Banks, fintechs, e-commerce companies, telecoms operators, logistics firms and large retailers that rely on the platform for customer service and transactional communication are among those that could be affected.

However, the development will not affect ordinary WhatsApp users or most small businesses using the standard WhatsApp Business app on their phones.

Under the current system, when a customer sends a message to a business, a 24-hour customer service window opens. During that period, businesses can respond with free-form service messages and certain utility messages without paying Meta.

However, from October 1, Meta will begin charging businesses on a per-message basis for service messages sent during the customer service window.

Meta, in its developer documentation, said, “Effective October 1, 2026, Meta will charge on a per-message basis for all service messages, consistent with how Meta charges for template messages. These messages have not been charged since November 1, 2024.”

The company added, “Effective October 1, 2026, Meta will charge on a per-message basis for utility messages sent in response to users (within an open 24-hour customer service window). These messages have not been charged since July 1, 2025.”

Utility messages include communications such as payment confirmations, order updates and delivery notifications.

See also  Thank God for Dangote refinery, Ojulari tells Nigerians

Meta also warned businesses and Solution Providers about the need to add a payment method ahead of the new charges.

It said, “For any Solution Provider or directly-integrated businesses that does not have a payment method on file by September 30, 2026, Meta will stop delivering service messages as of when they become charged on October 1, 2026.”

For Nigerian businesses, a chargeable utility or service message is expected to cost about $0.0101 per message, equivalent to roughly ₦14 based on an exchange rate of about ₦1,340 to the dollar.

Marketing messages are considerably more expensive, at about $0.062 per message, or approximately ₦84 at the same exchange rate.

The charges are Meta’s fees and do not necessarily represent the total amount a business will pay. Companies using Business Solution Providers or third-party platforms to access the WhatsApp Business Platform may incur additional provider charges.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

FG reaffirms partnership with Taraba to unlock economic potential

Published

on

The Federal Government has reaffirmed its commitment to working with the Taraba State Government to unlock the state’s vast potential in agriculture, energy, tourism, infrastructure and mineral resources.

The Minister of Information and National Orientation, Mohammed Idris, stated this on Thursday in Jalingo at the Gala night to mark the Taraba State’s 35th anniversary and the official unveiling of the Taraba Regional Development Master Plan.

He described the newly unveiled Taraba Regional Development Master Plan as an important blueprint for sustainable growth.

Idris, who conveyed the greetings of President Bola Tinubu and the Federal Executive Council to the government and people of Taraba State, said the state’s 35th anniversary offered an opportunity not only to celebrate its progress since creation in 1991, but also to define a clear pathway for its future.

He commended Governor Agbu Kefas of Taraba for adopting a long-term development framework, saying the success of the Master Plan would ultimately depend on sustained implementation and its impact on the lives of citizens.

“The success of this Master Plan will not be measured by the ceremony at which it is unveiled, but by the roads built, businesses created, jobs generated, communities connected and lives improved,” the minister said.

Idris described Taraba as one of Nigeria’s most promising economic frontiers, with enormous opportunities in agriculture and agro-processing, livestock, hydropower, tourism, manufacturing and mineral development.

He praised the Kefas Administration for its investments in education, healthcare, infrastructure, security and economic development, particularly its policy of free and compulsory primary and secondary education.

He said the evidence was in the provision of more than N1.8 billion in 2026 to cover NECO, BECE and NABTEB examination registration for public-school students.

See also  Reps member faces petition over alleged N19m travel debt

The minister also highlighted the approximately 268 million dollars financing agreements signed between Taraba State and the ECOWAS Bank for Investment and Development for an integrated industrial park, 10,000 hectares of irrigated rice production and processing, and a 50-megawatt solar power plant in Jalingo.

He said the investments represented the kind of initiatives required to convert the state’s natural advantages into production, value addition, employment and sustainable economic growth.

Idris said Tinubu’s administration was complementing the state’s development drive through major federal infrastructure projects.

“These include the Gembu–Mbamnga–Yang (Lip) Road, the Bali–Serti–Gashaka–Gembu Road, interventions on the Jalingo–Mutum Biyu–Tella–Wukari corridor, as well as further work on the Mayo Selbe–Gembu, Mutum Biyu–Garba Chede and Jalingo–Numan roads.

“These are more than roads. They are investments in connectivity, trade, tourism, agriculture, security and the movement of people and goods,” he said.

The minister also reaffirmed the federal government’s commitment to harnessing Taraba’s agricultural, energy and mineral potential, including the strategic Mambilla Hydroelectric Power Project.

On security, Idris said the federal government was advancing reforms toward the establishment of State Police to bring policing closer to communities while ensuring professionalism, accountability and safeguards against abuse.

He said such a framework could be particularly beneficial to Taraba because of its vast terrain and dispersed border communities, where local knowledge, intelligence gathering and rapid response were critical to effective policing.

The minister also cited the establishment of the Nigerian Army’s 10 Division, headquartered in Jalingo, with operational responsibility for Taraba and Adamawa States, as evidence of the federal government’s commitment to strengthening security in the region.

“Security and development must go together. People cannot invest, farmers cannot move their produce, tourists cannot visit and businesses cannot grow where communities feel unsafe,” Idris said.

See also  Tinubu credits multi-agency collaboration for Nigeria’s grey list exit

He said the federal government’s economic reforms were designed to create a stronger fiscal foundation for development, noting that the removal of petrol subsidy had mobilised N15.8 trillion in additional resources for the Federation between June 2023 and December 2025.

According to him, approximately N5.4 trillion accrued to the federal government while about N10.4 trillion went to states and local governments, providing additional resources for infrastructure, education, healthcare, security and human capital development.

Idris said the federal government remained opposed to a return to the previous subsidy regime, stressing that the priority was to consolidate the gains of reform, protect vulnerable Nigerians and ensure that additional public resources translated into tangible improvements in citizens’ lives.

He emphasised that development must ultimately be people-centred, creating opportunities for young people, expanding women’s economic participation, supporting farmers and small businesses, and connecting communities to markets and public services.

The minister also pledged stronger collaboration between the Federal Ministry of Information and National Orientation and the Taraba State Ministry of Information and Re-Orientation to ensure citizens understand and embrace the objectives of the Master Plan.

“The vision contained in this Master Plan must go beyond government offices. It must reach the farmer, the entrepreneur, the student, the trader and communities across Taraba.

“This is because a plan for Taraba must ultimately be a plan owned by the people of Taraba,” he said.

Idris congratulated Kefas, the government, and the people of Taraba State on the state’s 35th anniversary, describing the occasion as both a celebration of Taraba’s history and a renewed commitment to its future.

See also  Petrol imports surged by 207% in June — NMDPRA report

“35 years of history. A new blueprint for the future. And a renewed commitment to building the Taraba we want and the Nigeria we deserve,” the minister said.

In his remarks, Kefas also called for continuity in governance, acknowledging the contributions of former military administrators and elected governors to Taraba State’s development.

He said his administration was committed to building on previous achievements, correcting what needed to be corrected, completing worthy projects and opening new frontiers for future generations.

He stressed that the development of Taraba must remain bigger than any government, political party, ethnic group or individual, urging former leaders to continue contributing their experience and institutional knowledge to the peace, unity and prosperity of the state.

“Government must be a continuum. Development must be cumulative. Taraba is bigger than any government, any administration, any political party, any ethnic group, or any individual,” Kefas said.

He added that the ultimate credit for development belongs to the people of Taraba State.

Present at the event were the former Governor of Taraba State, Rev. Jolly Nyame; Secretary to the Government of Taraba State, Chief G.T. Kataps; Director-General of the Nigerian Television Authority, Salihu Dembos; and  Director-General of the Federal Radio Corporation of Nigeria, Dr Mohammed Bulama.

Others were the Managing Director of the Nigerian Ports Authority, Dr Abubakar Dantsoho; as well as other distinguished government officials, traditional leaders, members of the diplomatic and business communities, and other dignitaries.

NAN

Source: punchng.com

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

CBN cuts T-bill rate amid N3.63tn demand

Published

on

Investors are increasingly positioning for longer-term returns in Nigeria’s fixed-income market, with the latest treasury bills auction showing an overwhelming preference for the one-year government security.

At the Central Bank of Nigeria’s (CBN) primary market auction on Wednesday, investors submitted N3.63tn for the 364-day T-bill, representing 95.9 per cent of the N3.79tn total bids received across the three maturities.

The demand came despite the CBN lowering the stop rate on the one-year instrument by 44 basis points to 17.15 per cent, from 17.59 per cent at the previous auction.

The auction results point to a significant shift in investor appetite towards longer-dated government securities, even as demand for shorter-tenor instruments remained subdued.

The CBN had offered N700bn across the three maturities, comprising N100bn each for the 91-day and 182-day bills and N500bn for the 364-day bill.

However, total subscriptions reached approximately N3.79tn, more than five times the amount offered.

The PUNCH that the 364-day instrument was the clear outlier at the auction, receiving bids equivalent to 7.26 times the amount offered.

The CBN ultimately allotted N638.19bn, exceeding the N500bn offer by N138.19bn. Despite the additional allotment, only about 17.6 per cent of total bids submitted for the instrument were accepted.

Investors quoted yields between 16.00 per cent and 19.05 per cent, but the CBN settled at 17.15 per cent, suggesting that the level of demand allowed the regulator to reject more expensive bids.

The development is significant because the CBN achieved a lower borrowing rate even after receiving exceptionally strong demand for the security.

See also  FG cancels $717m World Bank power loan amid blackouts; read details

The contrast was stark at the shorter end of the curve. The 91-day bill attracted N103.32bn in subscriptions against N100bn offered. The CBN allotted N89.10bn at an unchanged stop rate of 16.30 per cent.

The 182-day bill performed even more weakly, attracting only N52.93bn against N100bn on offer. The CBN allotted N35.59bn, while the stop rate remained at 16.50 per cent.

Secondary-market yields for the three instruments stood above their respective auction stop rates, at 17.45 per cent for the 91-day bill, 17.05 per cent for the 182-day bill and 17.24 per cent for the 364-day bill.

According to a financial sector analyst, Jimbe Asalor, the concentration of bids in the one-year instrument suggests investors may be placing greater value on locking in relatively attractive yields over a longer period rather than repeatedly rolling over shorter-term securities.

He noted that the latest auction also demonstrates “the CBN’s ability to borrow more cheaply when demand is concentrated around a particular maturity.”

He added that by accepting N638.19bn on the 364-day bill at 17.15 per cent, the CBN borrowed above its initial offer while simultaneously cutting the rate by 44 basis points.

“The nine-basis-point difference between the auction stop rate and the 17.24 per cent secondary-market yield also indicates that the one-year segment is now trading relatively close to market expectations.”

A Lagos-based consultant economist, Chukwunonso Iheoma, said if the preference for longer-dated treasury bills persists, the development could provide further support for a gradual decline in government borrowing costs while strengthening expectations of eventual interest-rate cuts.

See also  NNPC subsidiaries’ debt balloons 70% to N30tn

Source: punchng.com

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Trending