Average crude oil and condensate production declined marginally to 1.72 million barrels per day in June from 1.73 million barrels per day in May, representing a 0.58 per cent decrease. However, output was 1.18 per cent higher than the 1.70 million barrels per day recorded in June 2025.

According to the report, production was affected by operational disruptions, facility integrity issues and subsurface challenges across several assets.

It stated, “June production performance was impacted by operational disruptions, facility integrity issues, and subsurface challenges across several assets. However, performance was partially mitigated by production ramp-up following the completion of the Assa-Rumuekpe and 28-inch TNP Turnaround Maintenance.”

Gas production also improved, rising to 7,841 million standard cubic feet per day from 7,774 million standard cubic feet per day in May, while gas sales recovered to 4,970 million standard cubic feet per day from 4,921 million standard cubic feet per day.

The report highlighted progress on two major gas infrastructure projects. The Obiafu-Obrikom-Oben Gas Pipeline reached 98 per cent completion, with final tie-in works ongoing.

It stated, “The Obiafu-Obrikom-Oben (OB3) Gas Pipeline progressed to 98% completion, with final tie-in works ongoing towards achieving First Gas in August 2026.”

Construction on the Ajaokuta-Kaduna-Kano Gas Pipeline also advanced to 94 per cent completion. According to the company, “Construction and installation activities on the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline advanced to 94 per cent completion, supporting the target of early gas delivery to Abuja in 2026.”

NNPC said it would continue implementing measures to sustain production growth despite operational challenges.

It stated, “Focus remains on delivering incremental production across the asset portfolio by improving facility reliability and availability, minimizing Unscheduled Downtime, optimising crude export operations, and accelerating the maturation of production opportunities to sustain Upstream production growth.”

Africa must stop exporting raw materials and instead focus on adding value to its natural resources if it is to fully harness the opportunities offered by the African Continental Free Trade Area.

The National Coordinator and Chief Executive Officer of the Nigeria AfCFTA Coordination Office, Patience Okala, said this on Thursday at the Streamsowers & Köhn 20th Anniversary Business Forum, where she stressed that value addition and beneficiation are essential to Africa’s industrialisation and long-term economic growth.

According to a statement issued on Friday by the Nigeria AfCFTA Coordination Office, she said the AfCFTA goes beyond the elimination of tariffs, serving as a framework for industrialisation, value addition and job creation across the continent.

“AfCFTA is not only about tariffs; it is also about value addition. Africa has to stop exporting raw materials. We need to add value and ensure that beneficiation is done on the continent,” she said.

Okala also said Africa’s economic transformation would depend on the effective implementation of the AfCFTA rather than the signing of trade agreements alone.

“We have moved beyond negotiations. The success of AfCFTA will be measured by the extent to which businesses can access new markets, trade seamlessly across borders and benefit from the opportunities created by the agreement,” she said.

She noted that Nigeria had intensified efforts to implement the agreement under the leadership of the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, including the development of simplified AfCFTA guides in six languages to help businesses understand and take advantage of opportunities under the trade pact.

Okala called for stronger collaboration among governments, regulators and the private sector to eliminate barriers to trade and investment and build a truly integrated African market.

“As we move from policy to implementation, our collective responsibility is to ensure that the opportunities created by AfCFTA become practical realities for businesses, particularly MSMEs, women-owned enterprises and young entrepreneurs across the continent,” she said.

The Federal Government has ruled out any immediate increase in electricity tariffs, saying its priority is to improve power supply, achieve universal metering and ensure consumers pay only for the electricity they consume.

The Minister of Power, Joseph Tegbe, disclosed this on Friday during a media roundtable on the resetting of Nigeria’s power sector in Lagos.

He said, contrary to public speculation, the current administration had no policy to raise electricity tariffs beyond the existing levels, stressing that efforts would instead be directed at improving service delivery and protecting electricity consumers.

“First, there is no policy by this administration to increase electricity tariffs beyond its current level. Our priority is not tariff increase in the immediate term. Our priority is service improvement, universal metering and ensuring Nigerians pay only for the electricity they actually consume,” the minister said.

He added that the Federal Government would continue to examine additional mechanisms to protect vulnerable consumers while improving the financial sustainability of the Nigerian Electricity Supply Industry.

“Indeed, the Federal Government will continue to examine additional mechanisms for protecting vulnerable consumers whilst simultaneously improving the financial sustainability of the market,” he stated.

Tegbe said the government’s position formed part of a broader strategy to reset the power sector through reforms designed to improve electricity supply, strengthen the national grid, restore investor confidence and make the electricity market financially sustainable.

According to him, the reforms build on the implementation of the Electricity Act, which has created opportunities for states to establish electricity markets suited to their economic realities, while the Federal Government is also advancing a Power Sector Bond initiative to settle legacy obligations owed to generation companies, gas suppliers and other market participants.

The minister said the Presidential Metering Initiative remained central to the reforms, noting that the government was moving decisively towards universal metering to eliminate estimated billing and ensure transparency in electricity billing.

He also announced the inauguration of the Power Force initiative, which would engage 5,000 Nigerian youths in meter installation nationwide while developing technical skills through the National Power Training Institute of Nigeria.

Tegbe disclosed that Nigeria had consistently generated 5,000 megawatts of electricity over the past two weeks, attributing the improvement to enhanced operational coordination, better plant availability and stronger collaboration across the electricity value chain.

“Although much work remains, enhanced operational coordination, improved plant availability and better engagement across the value chain are beginning to produce measurable improvements,” he said.

The minister, however, maintained that increased electricity generation alone would not solve Nigeria’s power challenges, saying the sector required coordinated improvements in generation, transmission, distribution and market payments.

As part of the government’s sector transformation agenda, the minister announced plans for a comprehensive technical audit of the national transmission network, harmonisation of federal and state electricity regulation, strategic investments in the Lagos, Enugu–Port Harcourt and Abuja–Kaduna–Kano transmission corridors, and the implementation of what it called a ‘Super Grid Programme’ to strengthen the national transmission backbone.

Tegbe expressed confidence that Nigerians would begin to see visible improvements in electricity availability within the next few months, while a stronger grid, lower technical losses, improved market discipline, expanded electricity access and greater operational capacity would be achieved over the next two to three years.

Seplat Energy Plc has announced an agreement to sell a 10 per cent interest in the NNPCL-SEPNU Joint Venture to the Nigerian National Petroleum Company Limited for $281.6m, saying the transaction is expected to enhance shareholder returns and strengthen its balance sheet.

The company disclosed this on Thursday in its unaudited financial results for the six months ended June 30, 2026, noting that the deal is due to be completed in the second half of the year.

According to Seplat, the headline transaction value of $281.6m represents about 25 per cent of its acquisition costs to date. It added that, upon completion, the proceeds would be split approximately equally between a special dividend for shareholders and debt repayment.

“The agreement reached with NNPC Limited to sell a 10 per cent interest in the NNPCL-SEPNU Joint Venture is expected to further enhance shareholder returns, bringing the total expected dividend for 2026 to USD 68.3 cents/share ($410m),” the company stated.

Providing further details, Seplat said, “Agreement reached to sell a 10% interest in NNPCL-SEPNU JV to NNPC Ltd. The headline transaction value of $281.6m represents 25 per cent of Seplat’s acquisition costs to date. Completion is expected in 2H 2026. Upon completion, proceeds will be split ~50:50 between a transaction dividend and debt repayment.”

The company said its 2026 production guidance remains unchanged at between 135,000 and 155,000 barrels of oil equivalent per day, adding that production is tracking towards the midpoint of the range.

It also retained its capital expenditure guidance of between $360m and $440m for the year, although spending is expected to be weighted towards the second half of 2026.

Seplat, however, revised its unit operating cost guidance upward to between $14.5 and $15.5 per barrel of oil equivalent, saying the increase was driven by higher Yoho restoration costs.

The transaction announcement came as the company reported strong financial performance for the first half of 2026. Revenue rose by 30 per cent year-on-year to $1.82bn from $1.398bn, while profit after tax surged by 498 per cent to $164m. Adjusted EBITDA increased by 28 per cent to $939m, while cash generated from operations climbed 29 per cent to $985.9m.

The company also reduced its net debt by 45 per cent to $370.7m at the end of June from $673.3m at the end of 2025 after repaying and cancelling $200m under its Advanced Payment Facility.

Commenting on the results, Seplat’s Chief Executive Officer, Roger Brown, said the company’s offshore assets had strengthened its confidence in the portfolio and positioned it for the next phase of growth.

“Our first-half performance benefited from a supportive commodity price environment, translating into strong cash generation. Given the limited visibility on how long these elevated prices may persist, we prioritised balance sheet strength during the quarter, repaying $200m of our outstanding APF debt, equivalent to 20 per cent of gross debt. At the same time, robust cash flows enabled us to continue enhancing shareholder returns.

“Our declared quarterly dividend of USD 12.0 cents per share represents a new quarterly high-water mark, up 33 per cent on 1Q 2026 and 161 per cent higher than 2Q 2025. With continued strong business performance and the announced sale of a 10 per cent interest in our offshore JV to NNPC Limited, it means that total dividends paid for the current financial year are expected to represent nearly 50 per cent of all previous dividends paid to shareholders,” Brown stated.

Brown, who will hand over as chief executive on August 1, said the company’s offshore business had reinforced confidence in the quality and scale of its assets.

BUA Foods Plc posted a 12 per cent increase in profit after tax for the first half of 2026, demonstrating resilience in a challenging operating environment as improved cost efficiency, stronger margins and disciplined execution offset a decline in revenue.

 

The food manufacturing giant reported a profit after tax of ₦292.27 billion for the six months ended June 30, 2026, up from ₦260.1 billion recorded in the corresponding period of 2025. Profit before tax rose by 14 per cent to ₦314.9 billion, while operating profit climbed 13 per cent to ₦320.5 billion.
Revenue, however, declined by 16 per cent to ₦765.12 billion, compared with ₦912.51 billion in the first half of last year, reflecting moderated pricing across key product categories amid inflationary pressures and changing market conditions.

 

Despite the lower turnover, the company improved profitability through tighter cost controls, enhanced supply chain efficiency and lower finance costs, resulting in significant expansion in operating margins.

 

Managing Director of BUA Foods, Ayodele Abioye, said the company’s performance underscored the strength of its operating model and its ability to navigate economic headwinds.

 

He noted that disciplined cost management, continuous improvements in supply chain execution and a more efficient product portfolio enabled the company to expand margins while delivering double-digit growth in key profitability indicators.

 

According to him, the focus in the second half of the year will be to translate operational gains into stronger sales volumes, sustain profitability improvements and increase market share while delivering long-term value to shareholders.

 

The company’s operational performance remained robust, with gross profit rising seven per cent to ₦363.23 billion. Gross profit margin improved significantly to 47.5 per cent, compared with 37.2 per cent in the corresponding period of 2025, while operating profit margin increased to 42 per cent from 31 per cent, reflecting stronger operational efficiency.

 

BUA Foods also strengthened its balance sheet during the period, with total assets increasing by 20 per cent to ₦1.67 trillion, while shareholders’ equity rose by 41 per cent to ₦1.01 trillion, providing additional capacity to finance future expansion.
The strong financial performance comes as the company accelerates one of the largest investment programmes in its history.

 

 

Ongoing projects include the expansion of wheat milling capacity, completion of its edible oils business, entry into the noodles segment and further investments in integrated manufacturing operations.

 

The company said the expansion is expected to boost domestic food production, reduce dependence on imports and support Nigeria’s long-term food security objectives.
Looking ahead, BUA Foods said it would continue to pursue growth through increased production capacity, innovation, operational excellence and market expansion, while maintaining a disciplined approach to profitability and shareholder value creation.

Seplat Energy Plc has delivered a strong first-half performance for 2026, with profit after tax soaring by 498 per cent to $164 million, driven by higher oil prices, improved production and stronger operational efficiency, as the company declared a 12.0 US cents dividend per share for shareholders.

 

The dual-listed energy company, quoted on the Nigerian Exchange Limited (NGX) and the London Stock Exchange (LSE), reported revenue of $1.82 billion for the six months ended June 30, 2026, representing a 30 per cent increase from $1.40 billion recorded in the corresponding period of 2025.

 

Gross profit climbed 68 per cent to $815.9 million, while adjusted EBITDA rose 28 per cent to $939 million. Cash generated from operations also increased by 29 per cent to $985.9 million, underscoring the company’s strong cash-generating capacity.

 

Seplat’s production averaged 139,509 barrels of oil equivalent per day (boepd) during the period, up four per cent year-on-year and within its full-year production guidance of 135,000–155,000 boepd. Second-quarter production rose to 149,070 boepd, reflecting stronger contributions from its onshore operations.

 

The company attributed the improved operational performance to sustained output from its West, East and Elcrest assets, continued success of its idle well restoration programme and robust growth in natural gas liquids production.

 

Despite higher operating costs linked mainly to the Yoho restoration project, Seplat strengthened its balance sheet by repaying $200 million under its Advanced Payment Facility ahead of schedule, reducing outstanding obligations to $100 million. Consequently, net debt declined by 45 per cent to $370.7 million, while cash at bank increased to $433.8 million at the end of June.

 

In line with its improved earnings, the board declared a second-quarter dividend of 12.0 US cents per share, comprising a core dividend of 5.0 cents and a special dividend of 7.0 cents, amounting to a total shareholder distribution of approximately $72 million.

 

The company also announced plans to pay a total dividend of 45.0 US cents per share for the 2026 financial year, representing an 80 per cent increase over the previous year.

 

Subject to the completion of the sale of a 10 per cent interest in the NNPCL-SEPNU Joint Venture to NNPC Limited, Seplat expects to pay an additional 23.3 US cents per share as a transaction dividend, bringing the total projected 2026 dividend to 68.3 US cents per share, valued at about $410 million.

 

The proposed transaction, valued at $281.6 million, is expected to close in the second half of the year, with proceeds to be shared between a special dividend for shareholders and further debt reduction.

 

Commenting on the results, Chief Executive Officer, Roger Brown, said the company’s first-half performance reflected the strength of its diversified asset base and disciplined financial management.

 

According to him, stronger commodity prices, improved production and prudent capital allocation enabled Seplat to reduce debt significantly while enhancing shareholder returns.
Brown, who will hand over as Chief Executive Officer on August 1 to Effiong Okon, expressed confidence in the company’s future, noting that Seplat remains on course to achieve its production targets and unlock further value from its offshore assets.

 

 

The company also announced board changes, with Tony O. Elumelu set to succeed Senator Udoma Udo Udoma as Chairman from January 2027, while Independent Non-Executive Director Dr. Emma FitzGerald will retire at the end of the year.

Sterling Financial Holdings Company Plc increased its profit after tax by 20.4 per cent to N50.30bn in the first half of 2026, despite a sharp rise in loan loss provisions as the lender expanded its credit portfolio.

The financial holding company reported profit after tax of N50.30bn for the six months ended 30 June 2026, up from N41.78bn in the corresponding period of 2025. Profit before tax also rose 21.9 per cent to N55.53bn, while gross earnings climbed 31.5 per cent to N279.6bn.

However, the group’s credit impairment charges surged to N23.85bn from N5.21bn a year earlier, representing an increase of about 358 per cent. The higher provisioning reflected the cost of supporting an expanding loan book, even as the non-performing loan ratio remained unchanged at 4.7 per cent.

Interest income rose 33.8 per cent to N223.58bn, driven by growth in loans and investment securities, while net interest income increased 41 per cent to N137.39bn, despite a 23.6 per cent increase in interest expenses.

Customer deposits grew 21.1 per cent to N3.62tn, while loans and advances increased 13.7 per cent to N1.61tn. Total assets expanded 19.3 per cent to N4.67tn, and shareholders’ funds rose by nearly 28 per cent, supported by the successful completion of the group’s rights issue.