Seplat Energy is expected to complete the sale of a 10 per cent working interest in its joint venture with the Nigerian National Petroleum Company Limited by December, with the transaction expected to reshape the energy firm’s production profile and reserves.

The company disclosed this in an update obtained by The PUNCH on the proposed disposal of Seplat’s interest in the NNPCL/SEPNU Joint Venture for a headline transaction value of approximately $281.6m.

Seplat said its subsidiaries, Seplat Energy Offshore Limited and Seplat Energy Producing Nigeria Unlimited, had signed a legally binding Heads of Agreement with NNPC Limited for the transaction.

The deal is subject to applicable regulatory approvals and other customary conditions, with completion expected in the second half of 2026, meaning the completion is expected between October and December.

Following completion, SEPNU’s working interest in the joint venture assets will fall from 40 per cent to 30 per cent, while NNPC Limited’s interest will increase from 60 per cent to 70 per cent.

Despite the reduction in its stake, Seplat said it would continue to own 100 per cent of SEPNU, which will remain the operator of the joint venture.

“Following completion of the transaction, SEPNU will retain a 30 per cent working interest in the joint venture assets and will continue as Operator. NNPC Limited’s working interest in the JV will increase from 60 per cent to 70 per cent. Seplat Energy will continue to own 100 per cent of the share capital of SEPNU,” Seplat said.

Seplat disclosed that the commercial terms of the $281.6m transaction represent approximately 25 per cent of the gross transaction consideration it paid, together with any contingent consideration payable by SEOL, for its acquisition of SEPNU.

In simple terms, the company is saying that the $281.6m it expects to receive from selling the 10 per cent JV interest is equivalent to about one-quarter of the total consideration it paid to acquire SEPNU, including any additional payment that could become due under the acquisition agreement.

It was shown that the transaction would have a direct impact on Seplat’s attributable production.

The company explained that SEPNU currently represents approximately 80,000 barrels of oil equivalent per day at the midpoint of its 2026 group production guidance of between 135,000 barrels of oil equivalent per day and 155,000 boepd.

With the transaction effective from 1 April 2026, that contribution will fall to approximately 65,000 boepd.

Seplat stated that its production guidance would be updated upon completion of the transaction.

The company’s 2030 production target will also be affected, falling from 200,000 boepd to 170,000 boepd on a net working-interest basis.

However, Seplat said the proceeds from the transaction and the lower capital expenditure associated with the divested interest would largely offset the net cash flow impact of the reduced working interest in the JV assets through 2030.

The transaction will also affect the company’s reserves position, as the disposal would result in group 2P reserves being adjusted down by approximately 13 per cent to 872.9 million barrels of oil equivalent.

It said an updated group 2P reserves figure would be provided following completion of the transaction.

Beyond the immediate impact on production and reserves, Seplat said the disposal would provide funds to support its capital allocation plans.

The company intends to use approximately 50 per cent of the proceeds to reduce debt and the remaining 50 per cent to enhance shareholder returns.

Subject to completion, approximately $140m, equivalent to 23.3 US cents per share, will be paid to shareholders as a cash dividend.

The payment will be made in addition to the underlying business performance dividend.

The company said $200m of its Advanced Payment Facility had already been repaid in the second quarter of 2026, while the remaining $100m would be paid after completion of the transaction.

It was added that the transaction would not change the NNPC/SEPNU JV production targets, which remain supported by production performance year-to-date.

Commenting on the transaction, Seplat Energy’s Chief Executive Officer, Roger Brown, said the joint venture remained strategically important to the company and Nigeria.

“The NNPC/SEPNU JV is one of the pre-eminent licence areas in Nigeria and of strategic importance to the country. Our relations with our partner, NNPC, are strong and we are fully aligned on the agreed work programmes. Together, we are focused on delivering significant value from the JV which has responded very well to increased development activity since we became operator and has clear potential to deliver strong production growth well into the next decade.”

The Nigeria Deposit Insurance Corporation has commenced the payment of insured deposits to customers of 46 failed microfinance banks whose operating licences were revoked by the Central Bank of Nigeria, while intensifying loan recoveries and asset sales to reimburse depositors with balances above the insured limit.

Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, disclosed this on Wednesday in Lagos during a retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters.

Speaking on the sidelines of the event, Sunday said the corporation moved swiftly to begin liquidation after the CBN revoked the licences of the affected MFBs and appointed the NDIC as provisional liquidator.

“We’ve started paying depositors of those banks, and gradually, we intend to cover all the insured depositors,” he said.

According to him, the NDIC is also pursuing debtors of the failed institutions and disposing of their assets to generate funds for the payment of uninsured deposits.

“Our function as liquidator involves paying the guaranteed sums. Thereafter, we go after those owing the institutions and ensure that available assets are sold to realise funds for settling the uninsured portions of deposits,” Sunday said.

He said the corporation had overhauled its reimbursement process through a partnership with the Nigeria Inter-Bank Settlement System, enabling automatic payments to depositors through their Bank Verification Number.

Under the arrangement, depositors with linked BVNs receive payments directly into their accounts in other banks without filing claims, thereby reducing delays in accessing insured funds.

Sunday said the same approach had accelerated payments to depositors of Heritage Bank, where about 700,000 customers have already received their insured deposits since the lender’s licence was revoked.

He, however, noted that some Heritage Bank depositors were yet to be traced because the bank inherited customer accounts from legacy institutions, including Enterprise Bank, Spring Bank and Guardian Express Bank, many of which predated the BVN system.

“There are depositors that we have not been able to trace, and this is an opportunity for them to come forward. Once they do, we will pay them,” he said.

He added that proceeds from loan recoveries and the sale of assets belonging to failed banks would be used to settle depositors whose balances exceeded the insured limit.

Sunday also said the recent banking sector recapitalisation had strengthened lenders’ ability to support economic growth but stressed that stronger capital must be complemented by effective supervision, sound corporate governance and robust risk management to safeguard financial stability.

Rising pump prices forced Nigerian consumers to cut petrol, diesel and cooking gas consumption during the first half of 2026 as higher energy costs squeezed household incomes and raised transportation and production costs.

An analysis of the H1 2026 Downstream Industry Analysis Report by the Major Energy Marketers Association of Nigeria, obtained by The PUNCH, showed a clear relationship between rising fuel prices and weakening demand for the country’s three major petroleum products.

According to the report, the average retail price of Premium Motor Spirit (petrol) rose from N1,035 per litre in January to N1,051 in February, before climbing to N1,289 in March. It increased further to N1,533 in April and peaked at N1,596 in May before easing to N1,300 in June.

The price increases coincided with declining consumption. Average daily petrol consumption fell from about 60–61 million litres in January to around 58 million litres in February, dropped sharply to about 48 million litres in March, recovered slightly to roughly 51 million litres in April, declined to 46–47 million litres in May, and improved marginally to about 48 million litres in June after pump prices eased.

Diesel consumption also weakened as prices rose. Automotive Gas Oil sold for an average of N1,362 per litre in January, N1,420 in February and N1,648 in March. Prices surged to N2,475 in April, reached N3,277 in May and moderated to N2,900 in June.

Average diesel consumption stood at about 19.5 million litres per day in January, rose slightly to around 20 million litres in February, then declined to about 15.5–16 million litres in March. It recovered modestly to approximately 17.5 million litres in April before settling at about 16 million litres daily in May and June.

Liquefied Petroleum Gas also recorded weaker demand. Average LPG prices increased from N1,086 per kilogramme in January to N1,360 in February, N1,572 in March, N1,791 in April and N1,800 in May before easing to N1,661 in June.

Consumption moved in the opposite direction, falling from about 4.9–5.0 kilotonnes daily in January to roughly 4.3–4.4 kilotonnes in February. Demand briefly recovered to about 5.1–5.2 kilotonnes in March before declining steadily to around 4.2 kilotonnes in June.

MEMAN attributed the higher fuel prices to rising global crude oil prices driven by geopolitical tensions in the Middle East and disruptions to shipping through the Strait of Hormuz. Although crude prices eased in June, they remained above levels recorded at the beginning of the year.

The association said the figures showed that Nigerian consumers had become increasingly price-sensitive, with higher pump prices translating into lower consumption of petrol, diesel and cooking gas.

Meanwhile, MEMAN cautioned against relying solely on domestic refining for Nigeria’s fuel supply, warning that complementary imports would remain critical to guaranteeing energy security, promoting competition and preventing excessive market concentration.

The report stated, “The Nigerian downstream petroleum sector enters the second half of 2026 at a defining moment. The structural transition from an import-dependent market to one supported by significantly expanded domestic refining capacity has largely been achieved.

“The focus now shifts from increasing refining output to building a competitive, transparent, and resilient downstream market capable of sustaining long-term growth and energy security.”

MEMAN said imports should continue to complement local refining despite improved domestic capacity. It said, “Although domestic refining has significantly reduced Nigeria’s reliance on imported petroleum products, imports will continue to play a complementary role in ensuring supply diversity and sustaining competitive market conditions.

“While Dangote Refinery maintains that imports should be banned where sufficient domestic supply exists, the Federal Government has consistently maintained that preserving its authority to issue import licences is essential to managing the country’s strategic and security stocks, preventing supply shortages, safeguarding competition, and mitigating excessive market concentration.”

The association also warned that Nigeria’s long-term fuel supply should not depend on a single refinery and called for the establishment of a National Strategic Stock to cushion refinery outages, logistics disruptions and geopolitical shocks. It added that the second half of 2026 would be a period of market consolidation, with priorities centred on stronger regulation, balanced supply arrangements and enhanced energy security.