Connect with us

Business

Savannah Energy Posts Strong Four-Month Performance

Published

on

Ahead of its Annual General Meeting (AGM) billed for June 1, 2026, Savannah Energy, has provided a trading update on its Nigerian operations and other markets in Africa for the four months to April 30, 2026, reflecting continued operational progress and a strong focus on cash discipline.

It reports that following the completion of the SIPEC Acquisition in March 2025, the production expansion programme underway at its Stubb Creek has delivered an 8% increase in average gross daily production to 3.1 Kbopd for the period, compared to 2.8 Kbopd during the same period in 2025.

Its group average gross daily production for the four-month period stood at 15.7 Kboepd (FY 2025: 18.8 Kboepd) with gas production volumes constrained as a result of the ongoing drilling and operational activity, and customer gas demand.

The update shows that its Revenues increased by 17% year-on-year to US$104.1 million, compared to US$89.1 million in the same period last year. It also shows that its trade receivables balance declined by 22% to US$395.2 million from US$507.2 million at year-end 2025.

It also reported cash balances of US$64.7 million during the four-month period, compared to the 31 December 2025 figure of US$42.8 million, with its net debt standing at US$641.7 million compared to the 31 December 2025 figure of US$658.6 million.

According to the update, Savannah’s cash collections for the four months ended April 30 amounted to US$183.5 million, a 48% increase from the US$89.1 million it received during the same period in 2025.

Savannah also reported that it has entered into a new £32 million unsecured loan facility with NIPCO plc, its largest shareholder. The facility is structured in two tranches: £20 million available immediately and £12 million available from July 1. The loan carries a 4.5% annual interest rate and has a 36-month term.

The facility includes a conversion option that allows Savannah to repay the loan through the issuance of new shares at 8 pence per share. NIPCO cannot require conversion, and Savannah is under no obligation to issue shares. The transaction constitutes a related party transaction under AIM rules.

ALSO READ: NNPC Ltd Posts N481bn Profit

The report highlighted the operational progress being made across key African assets, including Uquo and Stubb Creek, as well as continued advancement of its wind, solar and hydropower projects. It reports that drilling and completion activities at the Uquo NE well location have now been concluded, with rig-down operations currently underway ahead of mobilisation to the next well.

It also reports that the flowline installation is in its final stages, with tie-in activities ongoing at the Uquo CPF, while tie-in works at the well pad are expected to commence shortly, with first gas targeted for early July 2026, supporting the higher forecast gas production expected in H2 2026. Site construction activities at the Uquo South exploration well location, it said, are progressing well, with the site expected to be ready by early June 2026, just as conductor piling operations are also ongoing in preparation for the rig move from the Uquo NE location.

In Niger, Savannah reports that its Parc Eolien de la Tarka project has made significant progress to date, with the Minister of Energy confirming that the project is on the Government’s list of priority projects. It expects the timing and sequencing of further development activities in relation to the project to be linked to the timing and outcome of the Company’s ongoing discussions with the Government of Niger regarding the R1234 PSC and the potential recommencement of oil activities.

In Cameroon, negotiations with the Government are at an advanced stage regarding a Joint Development Agreement for the up to 95 MW Bini, a Warak hybrid hydroelectric and solar project. This is expected to replace the Memorandum of Agreement signed in April 2023 and secure the terms under which Savannah will collaborate with the Government of Cameroon to further develop the project.

Andrew Knott, CEO of Savannah Energy, said: “Savannah continues to deliver against the nine core focus areas we set out for the business at the start of 2025. In Nigeria, we have seen a significant improvement in cash collections, with a 48% year-on-year increase in the first four months of the year, alongside a 17% year-on-year increase in Revenues and a 22% reduction in our trade receivables balance since year-end 2025. This reflects our ongoing focus on disciplined cash collections and receivables management, which remains a key priority for the business this year.

“Operationally, we are advancing a number of important projects, including the drilling of two new gas wells at the Uquo field, and the production expansion programme at Stubb Creek which has already delivered an 8% increase in average daily production (compared to the first four months of 2025). In our power division, we continue to progress our greenfield wind, solar and hydro portfolio.

“Alongside this, we continue to pursue further value-accretive acquisitions across both hydrocarbons and power, with several opportunities under active discussion. We are also pleased to have secured a new £32 million loan facility from NIPCO plc (“NIPCO”), our largest shareholder, strengthening our financial flexibility and further underpinning our confidence in delivering continued operational, financial and strategic progress through 2026 and 2027.”

Business

World Bank Report: ‘Nigeria Needs 10% Growth for 20 Years to Reduce Poverty’ — Ekpo

Published

on

World Bank deploys $114.9 to finance global crises in 2022

Emeritus Professor of Economics, Akpan Ekpo, has said Nigeria needs to achieve and sustain double-digit economic growth for between 15 and 20 years to make a significant impact on poverty.

Ekpo made the submission while reacting to the latest World Bank assessment of Nigeria’s economic outlook, which raised the country’s 2026 growth forecast to 4.3 per cent.

ALSO READ: Obi Asks World Bank, Banks to Verify Anambra Debt Claims

Recall that the World Bank, in its October 2026 Africa Economic Update, projected that Nigeria’s economy would grow by 4.3 per cent in 2026, up from an estimated 4.0 per cent in 2025, before rising to 4.4 per cent annually in 2027 and 2028.

The lender attributed the improved outlook to improving macroeconomic stability, stronger investor confidence and a gradual recovery in private investment.

However, Ekpo cautioned against celebrating single-digit growth, arguing that economic growth alone does not amount to development.

“I don’t think we should celebrate the 4.1% growth. The World Bank itself knows that growth is not development,” Ekpo said.

According to the economist, Nigeria needs to grow at least 10 per cent annually and sustain such expansion for about 15 to 20 years to make a meaningful dent in poverty.

“You have to grow at least double-digit, sustained for about 15–20 years to have a dent on poverty,” he said.

‘4% Growth Is Too Weak’

Ekpo said even the World Bank’s assessment indicates that the current pace of growth remains insufficient to create the jobs and opportunities Nigeria needs.

He noted that the World Bank had identified electricity, reliable internet access, infrastructure and human capital development among the areas requiring attention.

“But the problem is that the 4.1% growth cannot achieve those things,” he said.

The World Bank has similarly stressed that stronger growth must translate into better living standards, productive jobs and poverty reduction, with investment in infrastructure, human capital and productivity needed to sustain the gains.

Ekpo said Nigeria therefore needs to move beyond celebrating modest improvements in GDP and focus on achieving structural economic transformation.

Ekpo Faults Manufacturing Contribution

The economist also criticised the structure of Nigeria’s economy, particularly the limited contribution of manufacturing.

According to him, Nigeria’s economic transformation should involve movement from agriculture and mining into industry and manufacturing before services become dominant.

“They left out the issue of manufacturing, that is where the crux of the matter is,” he said.

Ekpo argued that manufacturing should contribute at least 40 per cent of Nigeria’s GDP for the economy to undergo meaningful structural transformation.

“An economy has—the structure has to be transformed where that sector called manufacturing contributes at least 40% to GDP,” he said.

He claimed that manufacturing had contributed less than 12 per cent to Nigeria’s GDP over the past 60 years.

The economist also pointed to Nigeria’s trade structure, saying manufactured exports account for about two per cent of total exports, while manufactured imports account for about 48 per cent.

“So you cannot say with that that the economy has been transformed,” he said.

Ekpo Questions Macroeconomic Stability

Ekpo also questioned the description of Nigeria’s economy as enjoying broad macroeconomic stability.

He acknowledged improvements on the monetary side but said significant challenges remained on the fiscal side.

“On the monetary side, yes, the CBN has restored some integrity in that sub-sector. But on the fiscal side, we still have challenges,” he said.

He argued that economic stability should also be assessed from the perspective of households and businesses, which collectively form the broader economy.

“You can’t have stability on only one side of the economy, that is relative stability, and say the economy is stable,” Ekpo said.
‘It Is a Warning Signal’

While describing the World Bank report as balanced, Ekpo said it should be treated as a warning to policymakers rather than a reason for celebration.

“The report, in my view, is balanced. I’m not a World Bank fan, but it’s balanced because they raised fundamental issues that those who manage the economy, we have to do for us to make progress,” he said.

He maintained that although growth is necessary for development, growth alone does not guarantee development.

“Yes, you need to grow to develop, but you can grow and not be developed. And that growth must be double-digit, 10% and above, and sustained for about 15 or 20 years,” Ekpo said.

He called for deliberate government action to fix electricity, tackle insecurity and reduce poverty, while also warning that persistent double-digit inflation remains a challenge.

“I don’t think the report is what we should celebrate, but it’s a warning signal that we should do more,” he said.

“Inflation is still double-digit, so the report has to be treated cautiously.”

Continue Reading

Business

IPO: ADF Opens Wealth Creation Pathway for 2m Vulnerable Nigerian Women

Published

on

The Aliko Dangote Foundation (ADF) has unveiled the Women’s Share Subscription Grant Initiative (WSSGI), a pioneering financial inclusion programme aimed at increasing women’s participation in Nigeria’s capital market through the ongoing Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE (DPRP).

The nationwide initiative is designed to support up to two million Nigerian women, with a special focus on low- and middle-income earners, as well as vulnerable women. Through the programme, ADF seeks to expand access to equity ownership, promote a culture of savings and long-term investing, and empower women with greater opportunities for wealth creation through responsible participation in the capital market.

The initiative is open to several categories of beneficiaries, including independent applicants earning ₦100,000 or less per month, verified participants in designated ADF programmes such as CRoWN, ADFIN, and Mu Shuka Iri, eligible non-commissioned servicewomen and service spouses, as well as verified service widows.

To accommodate different categories of participants, the initiative provides two pathways for entry: Matching Grant Track: Eligible independent applicants who subscribe to a minimum of 10 shares will receive an ADF-funded application for an additional 10 shares in their name.

Unconditional Grant Track
The ADF will fund an application for 20 shares on behalf of eligible beneficiaries who satisfy programme eligibility, investor identification, and Know Your Customer (KYC) requirements.

This category covers verified beneficiaries from designated ADF programmes and verified service widows.

Under both tracks, grant funds will be applied directly through the designated issuing house. No cash payments will be made to beneficiaries, government agencies, or sponsors. Any shares successfully allotted will be credited solely to the beneficiary and held in her name.

Eligibility Requirements
Applicants must be Nigerian women aged 18 years and above; resident in Nigeria; meet the eligibility requirements of their respective participation category; successfully complete all required identity verification and KYC processes; and receive no more than one ADF share grant across all Foundation share grant schemes.

The ADF is implementing the initiative in partnership with Vetiva Capital Management and the Nigerian Exchange Group (NGX) through the Securities and Exchange Commission (SEC)-approved IPO subscription infrastructure.

The Foundation will not receive, collect, or hold applicants’ or sponsors’ subscription funds. All applications, payments, allotments, and refunds will be handled in accordance with the IPO Prospectus, applicable regulatory requirements, and the approved basis of allotment.

Participation in the programme is entirely voluntary. Prospective investors should note that share prices may fluctuate, dividends are only payable when declared, and neither allotment nor investment returns are guaranteed.

To facilitate broad participation, applicants are not required to have an existing Central Securities Clearing System (CSCS) account. Where necessary, accounts will be created through Vetiva upon successful completion of the IPO’s KYC requirements.

Eligible independent applicants may submit their applications exclusively through the official ADF portal at ipo.alikodangotefoundation.org.

READ ALSO: 40 Oil Blocks up for Grabs as NUPRC Opens 2026 Bid Round

Beneficiaries affiliated with the ADF programmes and verified service widows will receive application guidance through approved Foundation channels.

The offer closes on 13 October 2026.

The ADF urges prospective participants to remain vigilant against fraud. Applicants should not make payments to agents, individuals, or personal bank accounts in exchange for grants or promises of guaranteed allotment. Passwords, PINs, and one-time passwords (OTPs) should never be shared, and any unexpected payment request or online link should be verified through official channels before action is taken.

Through this initiative, the ADF is reinforcing its commitment to inclusive economic empowerment, broadening access to investment opportunities, and enabling more Nigerian women to participate meaningfully in the nation’s wealth creation journey.

Continue Reading

Business

NUPRC Outlines Major Offshore Investment Pipelines

Published

on

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled a pipeline of major offshore projects with the potential to attract significant new investment into Nigeria’s upstream petroleum sector.

This is as the commission has intensified efforts to convert the country’s substantial hydrocarbon resources into producing assets and sustainable economic value, the NUPRC said in a statement.

According to the statement, Nigeria’s upstream investment outlook was presented at the Nigeria Investment Forum 2026 in New York by the Commission Chief Executive (CCE), Oritsemeyiwa Eyesan.

Eyesan, who was represented by the Executive Commissioner, Corporate Services and Administration, Dr. Kelechi Ofoegbu, highlighted the emerging investment opportunities across Nigeria’s offshore, gas and brownfield assets, noting that the combination of regulatory reforms, improved project economics and a growing pipeline of development-ready assets is creating new opportunities for investors and industry partners.

READ ALSO: NCDMB, Zeconia Global Train 50 on Digital Oilfield Operations

A key feature of the presentation, it said, was the identification of 22 major offshore projects, comprising 12 deepwater and 10 shallow-water developments, as part of the pipeline capable of driving substantial new capital into the sector.

According to the commission, the projects include major developments such as Bonga Southwest, Aparo, Zaba Zaba, Owowo, Bosi and Egina South.

The NUPRC also highlighted recent capital commitments across projects including Bonga North, Obeta Gas Development, HIN Associated Gas Development and Iseni Gas Development, demonstrating the movement of investment interest towards actual project development.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

0
Would love your thoughts, please comment.x
()
x