Business

Crude earnings fall by N3.18tn amid output surge

Published

3 hours ago

September 15, 2025

Nigeria’s crude oil exports declined by N3.18tn in the first half of 2025 despite an increase in production volumes, the latest foreign trade statistics report from the National Bureau of Statistics has shown.

It was observed that while the Nigerian Upstream Petroleum Regulatory Commission reported a 12.7 per cent rise in crude oil output during the period, export earnings from crude fell by more than 11 per cent year-on-year.

Between January and June 2025, crude oil exports totalled N24.92tn, down from N28.10tn in the same period of 2024. This represents an 11.3 per cent decline in value, or a loss of N3.18tn.

Further analysis of the foreign trade data from the NBS by The PUNCH showed that in the first quarter of 2025, crude exports stood at N12.96tn, compared to N15.49tn in Q1 2024. The difference of N2.53tn amounts to a 16.3 per cent fall. By the second quarter, the decline was less steep: exports dropped from N12.61tn in Q2 2024 to N11.97tn in Q2 2025, a reduction of N642bn or 5.1 per cent.

The contribution of crude oil to total exports also weakened. In Q1 2024, crude accounted for 80.8 per cent of Nigeria’s exports, but by Q1 2025 this had dropped to 62.9 per cent, a decline of nearly 18 percentage points. The downward trend continued in Q2, with crude making up 52.6 per cent of exports, compared to 71.2 per cent in Q2 2024 — a decline of about 18.6 percentage points.

By contrast, non-crude oil exports surged. In H1 2025, they more than doubled to N18.43tn, compared with N8.79tn in H1 2024 — a growth of 109.6 per cent or an additional N9.64tn. Non-oil exports alone rose from N3.74tn to N6.21tn, an increase of N2.47tn or 66 per cent.

Overall trade also expanded. Total exports in H1 2025 reached N43.35tn, up from N36.89tn in H1 2024, reflecting a 17.5 per cent increase. Imports, on the other hand, rose by a slimmer margin of 6.9 per cent, from N28.72tn in H1 2024 to N30.71tn in H1 2025.

This contributed to an improved trade balance, which grew by 54.6 per cent, from N8.17tn in H1 2024 to N12.64tn in H1 2025. The PUNCH further observed that crude oil’s dominance in Nigeria’s export profile is being eroded, with its share sliding from 76.2 per cent in H1 2024 to 57.5 per cent in H1 2025.

The development highlights a paradox in Africa’s largest oil producer where rising output has not translated into stronger export performance, raising questions about domestic absorption, global oil demand, and pricing conditions. The data suggest that while Nigeria is pumping more crude, weaker global prices, rising domestic utilisation, or both, may be weighing on export receipts.

Earlier in March 2025, The PUNCH reported that Nigeria’s 2025 budget could come under pressure as crude oil prices slipped below the government’s benchmark projection of $75 per barrel. The situation, compounded by a dip in average daily crude production, was also expected to impact local refineries, including the Dangote plant and others.

While global factors such as falling oil prices may have contributed to the decline in export earnings, the Nigerian National Petroleum Company Limited has been supplying crude to the Dangote Petroleum Refinery under a naira-for-crude arrangement — a move analysts say could be diverting some volumes away from international markets.

Earlier in June 2025, The PUNCH reported that the Federal Government sold crude oil valued at N219.38bn to the Dangote Petroleum Refinery in the first four months of 2025.

The government also earned $1.59m from crude oil exports in April 2025, during the period it suspended sales of domestic crude allocations to the Dangote refinery and local refiners. These details were contained in internal documents from the NNPCL, submitted at the Federation Account Allocation Committee meetings.

266.9m barrels crude

Nigeria pumped a total of 266.9 million barrels of crude oil between January and June 2025, according to figures obtained from the Nigerian Upstream Petroleum Regulatory Commission by The PUNCH. The data show that the country recorded higher output across all six months compared to the same period in 2024, when production stood at 236.7 million barrels.

In January 2025, crude production rose to 47.7 million barrels, higher than the 44.2 million barrels recorded in January 2024. February output also increased to 41 million barrels, up from 38.3 million barrels in the same month of the previous year.

The upward trend extended into March, where production climbed to 43.4 million barrels, a gain of more than 5 million barrels compared to 38.2 million barrels in March 2024. April saw output reach 44.6 million barrels, rising by nearly 6 million barrels from the 38.7 million barrels recorded in April the previous year.

May’s figures showed a further improvement, with Nigeria producing 45 million barrels compared to 39.1 million barrels in May 2024. The highest year-on-year increase came in June, when production hit 45.2 million barrels, up from 38.1 million barrels a year earlier, a difference of about 7.1 million barrels.

Overall, the first half of 2025 saw crude production rise by 30.2 million barrels compared with the same period in 2024, representing a growth rate of 12.7 per cent. When condensates are included, total liquid output for the period reached 303.2 million barrels, compared to 275 million barrels recorded in the first half of 2024.

Industry watchers say the steady increase in crude production reflects improved operating conditions in the oil sector, though they caution that challenges such as pipeline vandalism, theft, and underinvestment continue to pose risks.

However, the NUPRC earlier revealed a 50.2 per cent reduction in crude oil losses during the first seven months of 2025. In a recent statement by the Head of Media and Strategic Communications at NUPRC, Eniola Akinkuotu, it was noted that between January and July 2025, the country lost 2.04 million barrels of crude oil, averaging 9,600 barrels per day, which is the lowest level since 2009 when losses were recorded at 8,500 barrels per day.

The current figures represent a 94.57 per cent drop from the losses experienced in 2021. The statement read, “Between January and July 2025, crude oil losses were contained at 2.04 million barrels, averaging 9,600 barrels per day over the seven-month period. This marks a clear departure from the high-loss years that have long plagued the industry.

“By comparison, the entire 2024 calendar year recorded 4.1 million barrels lost at a daily average of 11,300 barrels. Remarkably, in just the first seven months of 2025, losses were cut by 50.2 per cent, with only 2.04 million barrels lost over the period.

“The figures for the period ending July 2025 also represent a dramatic 94.57 per cent drop in crude oil losses compared to the full year of 2021, when Nigeria lost a staggering 37.6 million barrels at a daily average of 102,900 barrels.”

According to the statement, the progress was made possible by a combination of effective regulatory measures and collaboration with security agencies, oil operators, and local communities.

The NUPRC’s metering audit, aimed at ensuring accurate measurements of production and exports, has played a pivotal role in reducing discrepancies. NUPRC’s success is also attributed to the implementation of the Petroleum Industry Act in 2021, which has significantly contributed to the downward trend in oil losses.

Also, the commission has adopted both kinetic and non-kinetic strategies to tackle the issue, continuing to work closely with stakeholders in the oil sector to ensure the country’s resources are better protected.

Earlier in June 2025, the Executive Coordinator of the Independent Petroleum Producers Group, Oyeleke Banmeke, said that crude oil theft in Nigeria has reduced significantly compared to figures recorded about two to three years ago.

Banmeke commended the current administration of President Bola Tinubu for improvements in security along the country’s oil-producing corridors, particularly in the Niger Delta.

Speaking earlier on the likely impact of crude oil prices on government revenue, an Energy Professor at the Lagos State University, Dayo Ayoade, said the drop in crude production prices would affect the budget adversely, though it would bring down fuel prices.

Ayoade also said that the government must do its best to achieve two million barrels per day, or the refineries will have to resort to imports, which may impact the fuel prices.

Similarly, Professor Adeola Adenikinju of the Department of Economics at the University of Ibadan argued that the decline in crude oil prices is like a two-edged sword. He said it would lower the prices of refined products, such as PMS.

“But macroeconomically, it’s going to have implications, especially for government revenue, simply because the two critical assumptions, you know, that would change the budget were the oil price and oil volume. So, if oil prices go down and persist, then that will mean that budget implementation will be very difficult,” he said.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Post Views: 44

Business

Nigeria’s inflation drops for fifth consecutive time – NBS

Published

2 hours ago

September 15, 2025

Newsbreak365_Admin

Nigeria’s headline inflation slowed for the fifth consecutive month in August 2025, providing some respite for consumers grappling with high living costs.

Data released by the National Bureau of Statistics on Monday showed that inflation dropped to 20.12 per cent, down from 21.88 per cent in July.

The figure represents a 1.76 percentage point decline on a month-on-month basis and a sharp fall from the 32.15 per cent recorded in August 2024.

The Consumer Price Index, which tracks the average change in prices of goods and services, inched up to 126.8 points in August from 125.9 points in July.

Month-on-month inflation stood at 0.74 per cent, lower than 1.99 per cent in July, pointing to slower price increases across the country.

The report read, “The Consumer Price Index rose to 126.8 in August 2025, reflecting a 0.9-point increase from the preceding month (125.9).

“In August 2025, the Headline inflation rate eased to 20.12 per cent relative to the July 2025 headline inflation rate of 21.88 per cent.

“Looking at the movement, the August 2025 Headline inflation rate showed a decrease of 1.76 per cent compared to the July 2025 Headline inflation rate.”

The statistics office noted that inflationary pressures remain uneven. Urban inflation eased to 19.75 per cent year-on-year in August from 34.58 per cent a year earlier, while rural inflation was slightly higher at 20.28 per cent compared with 29.95 per cent in August 2024.

On a monthly basis, inflation in urban areas slowed to 0.49 per cent from 1.86 per cent in July, while rural inflation came in at 1.38 per cent, down from 2.30 per cent.

The figures underline the sharper impact of inflation in rural communities, where transportation, distribution, and supply chain challenges continue to drive higher price growth than in urban centres.

Food inflation, which remains the strongest driver of Nigeria’s inflation basket, also moderated in August but stayed elevated.

The index declined to 21.87 per cent year-on-year from 37.52 per cent in August 2024. On a month-on-month basis, food inflation slowed to 1.65 per cent, compared with 3.12 per cent in July.

The moderation was linked to falling prices of staples including rice, guinea corn flour, maize flour, millet, semolina, and soya milk.

The twelve-month average for food inflation stood at 25.75 per cent, lower than the 36.99 per cent recorded a year earlier.

Despite the improvement, food prices remain high, especially in the northern states where insecurity and logistics bottlenecks have continued to disrupt supply chains.

Core inflation, which excludes volatile agricultural products and energy, was recorded at 20.33 per cent year-on-year in August, down from 27.58 per cent in August 2024.

However, the index rose on a monthly basis to 1.43 per cent from 0.97 per cent in July, reflecting pressures from categories such as housing, water, electricity, gas, transportation, education, and healthcare.

The movement suggests that while headline inflation is easing, non-food inflationary pressures remain persistent, raising concerns for policymakers and monetary authorities who monitor core inflation closely as an indicator of structural pressures.

Across the states, inflation trends remained mixed. Ekiti posted the highest year-on-year headline inflation at 28.17 per cent, followed by Kano at 27.27 per cent and Oyo at 26.58 per cent, while Zamfara at 11.82 per cent, Anambra at 14.16 per cent, and Enugu at 14.20 per cent recorded the lowest.

Food inflation was highest in Borno at 36.67 per cent, Kano at 30.44 per cent, and Akwa Ibom at 29.85 per cent, while Zamfara at 3.30 per cent, Yobe at 3.60 per cent, and Sokoto at 6.34 per cent recorded the lowest.

On a monthly basis, inflation rose fastest in Yobe at 9.20 per cent, Katsina at 8.59 per cent, and Sokoto at 6.57 per cent, while Enugu at –5.32 per cent, Taraba at –3.64 per cent, and Nasarawa at –3.56 per cent saw declines.

The announcement of the inflation slowdown comes just days before the Central Bank of Nigeria’s Monetary Policy Committee meeting scheduled for September 22 and 23, 2025.

The committee is expected to deliberate on whether to maintain or adjust the current 27.5 per cent benchmark interest rate.

While five straight months of disinflation could give the bank some policy flexibility, the persistence of food and core inflation suggests that the MPC may remain cautious in its decisions.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Post Views: 24

Business

The Bank of British West Africa: Pioneering Modern Banking in Nigeria

Published

1 day ago

September 14, 2025

Oluwagbenga Olaoye

The Bank of British West Africa (BBWA)—whose early headquarters stood prominently on the Lagos Marina, often photographed in the early 20th century—marked the dawn of modern banking in Nigeria and across the wider British West African territories. Founded in the late nineteenth century, the BBWA became the financial backbone of Britain’s colonial economy in West Africa and laid the foundation for Nigeria’s contemporary banking sector.

Founding and Early Operations

The BBWA was established in 1894 by Sir Alfred Lewis Jones, a prominent Liverpool shipping magnate. Recognising the growing need for structured financial services in Britain’s West African colonies, Jones founded the bank to facilitate trade and provide reliable banking for merchants and colonial administrators. While its registered head office was in Liverpool, its first African branch opened that same year in Lagos, Nigeria, quickly making the city a key financial hub of the British colonial economy.
(First Bank of Nigeria, “Our History”; E.O. Ogunsola, A History of Banking in Nigeria, 1982)

Role in the Colonial Economy

From its base on the Lagos Marina, the BBWA introduced modern banking services to a region where cash-based trade and informal credit systems had long prevailed. It provided credit and safe deposit facilities to traders, financed import-export businesses, and offered secure monetary transactions—services that were previously unavailable.

However, in its early decades, the BBWA primarily served European merchants, expatriate firms, and colonial officials, offering very limited access to indigenous Nigerian entrepreneurs. This reflected the racial and economic hierarchies of the colonial period, even as the bank’s presence helped integrate Nigeria’s economy into global trade networks.

(Akin Mabogunje, Urbanization in Nigeria, 1968)

Growth and Regional Influence

The success of the Lagos branch spurred rapid expansion across British West Africa, with new branches opening in Sierra Leone (1896), the Gold Coast (now Ghana, 1896) and The Gambia (1898). By the early 20th century, the BBWA had become the dominant financial institution in the region, shaping the flow of capital and enabling large-scale colonial commerce.

(First Bank of Nigeria, “Our History”)

Transition to First Bank of Nigeria

As Nigeria moved toward independence, the BBWA gradually localized its identity. In 1957, it changed its name to the Bank of West Africa (BWA) to reflect a less overtly colonial image. In 1969, following Nigeria’s banking reforms and indigenisation policies, the institution formally became First Bank of Nigeria Limited.

Today’s First Bank of Nigeria, still headquartered in Lagos, is the direct successor of the BBWA and remains one of the country’s largest and most enduring financial institutions—widely regarded as Nigeria’s oldest bank.

(First Bank of Nigeria, “Our History”; Central Bank of Nigeria, Fifty Years of Central Banking in Nigeria, 2009)

Legacy

The original BBWA building on the Lagos Marina—captured in photographs from the early 1900s—remains a striking symbol of the intersection between colonial trade and the rise of modern finance in West Africa. More than a century later, the institution it founded continues to shape Nigeria’s financial landscape. The BBWA’s story is therefore not only a chapter in colonial history but also the starting point of Nigeria’s modern banking tradition.

Sources
First Bank of Nigeria. “Our History.” FirstBankNigeria.com

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Post Views: 144

Business

Macleans Toothpaste: From 1919 British Innovation to a Nigerian Household Name

Published

2 days ago

September 13, 2025

Oluwagbenga Olaoye

Macleans toothpaste stands as one of the early global brands that helped transform oral hygiene from a luxury to an everyday practice. First introduced in Britain in 1919 by Macleans Ltd., the brand quickly became a pioneer of modern toothpaste marketing and packaging—well before oral care became a staple of households worldwide.

Origins and Early Development in Britain

The early 20th century was a turning point in personal hygiene, as toothpaste shifted from a powdered luxury to a convenient daily necessity. Macleans Ltd. capitalized on this trend by offering toothpaste in collapsible metal tubes, a modern packaging innovation that kept the product hygienic and easy to use.

Unlike traditional tooth powders, Macleans marketed its paste as a symbol of freshness, health, and modern living, themes that resonated in post–First World War Britain when consumer culture and middle-class aspirations were expanding. While company archives confirm the brand name derived from its founders, the detailed biography of the original “Maclean” behind the firm is not well documented.

Integration into Beecham and Global Expansion

Macleans’ early success attracted the attention of Beecham, one of the United Kingdom’s major pharmaceutical and consumer goods firms. By the mid-20th century, Beecham had acquired the brand, scaling up production and enabling distribution throughout the British Commonwealth, including Africa, the Caribbean, and Asia.

Corporate mergers later carried the brand through several major pharmaceutical giants:

1989: Beecham merged with SmithKline Beckman to form SmithKline Beecham.

2000: SmithKline Beecham merged with Glaxo Wellcome to form GlaxoSmithKline (GSK).

2022: GSK demerged its consumer healthcare division into Haleon Plc, which today manages the

Macleans brand. Arrival and Popularity in Nigeria

By the early 1970s, Macleans toothpaste had become a household name in Nigeria, coinciding with the country’s post-independence economic boom and rising urban middle class. Print and outdoor advertising promoted not only oral health but also aspiration and modern success.

A striking example is an April 1973 outdoor advertisement in Kano, which boldly declared:
> “Be Successful Be Important Use Macleans Toothpaste.”

This slogan captured the era’s consumer culture, when imported brands symbolized sophistication and social mobility. Macleans’ strategy of linking dental care with upward status resonated strongly in Nigeria’s expanding cities.

Competition and Market Dynamics

Macleans maintained dominance for decades even as rivals entered the market. In the 1970s, Close-Up (Unilever) launched as a gel toothpaste with youth-oriented marketing, while Aquafresh (another GSK brand) later offered a triple-strip formula. Yet Macleans retained its reputation for reliability and quality, becoming a staple of Nigerian households and a trusted name across generations.

Enduring Legacy

More than a century after its British debut, Macleans remains a key player in Nigeria’s oral care industry and across the world. Its journey—from an innovative 1919 British toothpaste to a multinational brand under Haleon—illustrates the evolution of modern consumer goods and the power of early 20th-century marketing to create products that become daily essentials.

Sources
Nigerian newspaper archives, Daily Times and New Nigerian, April 1973 (advertising features)

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Post Views: 204