The tax revenue accruing to the FG from Production Sharing Contracts with international oil companies operating in the country dropped by $45.72 million or ₦16.46 billion in May, according to new data from the Nigerian National Petroleum Corporation. The state oil firm said the tax lifted as oil by the NNPC on behalf of the Federal Inland Revenue Service dropped to 2.56 million barrels valued at $59.34 million in May from 4.38 million barrels or $105.06 million in April. The country’s oil and gas production structure is majorly split between joint ventures onshore and in shallow water with private companies and PSC in deepwater offshore, to which many IOCs have shifted their focus in recent years. Prior to the collapse of oil prices as a result of the COVID-19 pandemic, tax oil from private companies stood at 5.28 million barrels or $238.90 million in February, up from 4.79 million barrels or $221.15 million in January. Tax oil from PSCs stood at 5.28 million barrels or $131.32 million in March. OPEC+ had agreed in April to an output cut to offset a slump in demand and prices caused by the coronavirus crisis. The cartel decided to cut supply by a record 9.7 million bpd for May and June, but the deal was extended in July by one month. Under the April deal, Nigeria was expected to cap its production at 1.41 million bpd in May and June but the country overproduced during the period. The NNPC report said a total of 54.24 million barrels of crude oil and condensate were produced in the country, an average daily production of 1.75 million barrels. This is a decrease of 29.27 percent in the average daily production compared to April 2020 average daily performance. Joint Ventures and Production Sharing Contracts from the May 2020 production contributed about 33.38 per cent and 37.82 per cent respectively. Alternative financing, the Nigerian Petroleum Development Company and independents accounted for 10.19 per cent, 9.39 per cent and 9.22 per cent respectively. 56.13 million barrels of crude oil and condensate was lifted by all parties, of which 19.04 million barrels were lifted by the NNPC. Of this number, 13.53 million barrels lifted on account of the NNPC (domestic and Federation exports) while 2.56 million barrels and 2.96 million barrels were lifted for the Federal Internal Revenue Service and the Department of Petroleum Resources respectively, the report added.

Four Nigerian banks; Zenith Bank, United Bank for Africa, Stanbic IBTC and Guaranty Trust Bank have failed to produce their half-year 2020 report. The banks, however, Monday gave the Nigerian Stock Exchange reasons for the delay in the submission of their half-year audited accounts. GTBank said following the consideration of its audited half-year financial statement by its board on 22 July, steps were taken to finalise the After the Fact Accounting System (AFS) with its external auditors. It said its final results will be released when the AFS review process is completed. Zenith Bank said its financial report would be submitted to the Exchange on or before 30 September 2020 as their delay is to enable the bank to conclude all outstanding regulatory requirements in the course of obtaining approval of the financial statements. UBA said its audited financial statements were still undergoing necessary regulatory approvals. It added that the financial statements would be submitted to the NSE on or before 29 September 2020. Stanbic IBTC on its part said it was “currently seeking the approval of our primary regulator, the Central Bank of Nigeria, for the half-year audited financial statements.” It said it is working diligently to ensure that its 2020 half-year results are published on or before 25 September 2020.

The BUA Group has selected France’s Axens for a multibillion-dollar 200,000 barrel per day (bpd) refinery and petrochemicals plant in Nigeria, the French company said in a statement on Tuesday. Axens, which makes systems to convert oil and biomass to cleaner fuels, said it will provide technology for the greenfield project designed to produce Euro-V fuels and polypropylene targeted at domestic and regional markets. Nigeria, Africa’s top oil exporter, aims to become a net exporter of gasoline and other petroleum products over the next two years as refinery projects in the West African country come on stream, the industry regulator said on Tuesday. “This large complex will help in reducing Nigeria’s dependence on imported fuels and petrochemicals,” said BUA, which also has interests in cement, food and mining. The BUA project will be located in Akwa-Ibom, the statement said.

The Federal Competition and Consumer Protection Commission (FCCPC), says it has began investigation into the conduct of dominant Pay-TV service providers for possible unfair price increases. Babatunde Irukera, CEO of FCCPC, said the move was to address the commission’s concerns and publicly expressed consumer dissatisfaction with Pay TV services. He said that the scope of the investigation would include questions about unfair dealings, unreasonable and unjust contract terms, abuse of market power, pricing practices and other illegal conducts. Irukera disclosed that the commission had over the past 24 months pursued legal action in court, secured an injunction preempting price increase, entered specific orders regarding a TV service provider.