LAGOS: Officials say Nigeria is suing several major oil companies for $12.7 billion of oil allegedly exported illegally to the United States between 2011 and 2014.
The Federal High Court in Lagos begins hearings next week in cases filed against Nigerian subsidiaries of US multinational Chevron, British-Dutch Shell, Italian ENI's Agip, France's Total and Brasoil of Brazilian Petrobas.
Officials familiar with the cases say the government alleges that the companies did not declare more than 57 million barrels of crude oil shipments. That was deduced from audits of declared exports and what was unloaded in the United States.
Oil companies did not immediately respond to requests for comment.
Meanwhile, the Central Bank of Nigeria held its key interest rate on Tuesday, opting to reassure jittery currency investors rather than cutting rates to help growth.
CBN Gov. Godwin Emefiele told a news conference in the capital Abuja that monetary policy members voted unanimously to keep the repo rate at 14 percent.
"Conscious of the need to allow this and other measures, like foreign exchange reforms, to work through fully we decided to retain all monetary policy means at their current levels," he said.
Nigeria is in recession as a result of plunging global oil prices and production — its main government revenue — following rebel attacks in the southern swamplands since the start of the year.
Economic weakness would favor easier monetary policy, but Nigeria has also been working to lure back investors who balked at a restrictive foreign exchange regime.
In June, the bank finally abandoned a controversial currency peg in favor of the open market after businesses complained of severe dollar shortages.
Emefiele said that after the CBN raised the rate at which it lends to commercial bank at the last meeting that capital flows had improved, with $1 billion coming into the country since July.
He said it was a priority of the bank to "deepen foreign exchange supply", while acknowledging that "major" constraints on growth remain the challenges in the oil sector and vulnerabilities in the financial sector.
"We expect markets to be disappointed with this outcome," Razia Khan, Standard Chartered Bank Africa economist, said in a note to AFP.
"Investors had been hoping for further gradual adjustment in the policy rate as a sign of the authorities' commitment to fuller foreign exchange liberalization," she said.
"That has not necessarily been forthcoming today," she added. "Improved inflows are needed to provide a more concrete safeguard against higher inflation."
Nigeria sues oil firms for $12.7 billion
Nigeria sues oil firms for $12.7 billion
Closing Bell: Saudi main index slips to close at 10,588
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 127.15 points, or 1.19 percent, to close at 10,588.83.
The total trading turnover of the benchmark index was SR2.57 billion ($685 million), as 28 of the stocks advanced and 232 retreated.
Similarly, the Kingdom’s parallel market Nomu lost 108.53 points, or 0.46 percent, to close at 23,719.13. This comes as 22 of the stocks advanced while 47 retreated.
The MSCI Tadawul Index lost 17.17 points, or 1.22 percent, to close at 1,393.34.
The best-performing stock of the day was Sport Clubs Co., whose share price surged 3.69 percent to SR9.00.
Other top performers included Flynas Co., whose share price rose 2.55 percent to SR72.30, as well as National Industrialization Co., whose share price surged 2.13 percent to SR10.09.
Consolidated Grunenfelder Saady Holding Co. recorded the most significant drop, falling 6.61 percent to SR8.90.
Sustained Infrastructure Holding Co. also saw its stock prices fall 5.75 percent to SR30.82.
CHUBB Arabia Cooperative Insurance Co. also saw its stock prices decline 5.72 percent to SR22.40.
On the announcements front, Wataniya Insurance Co. said it has received a notice of award for a one-year contract with Saudi National Bank to provide general insurance as well as protection and savings insurance services, in line with agreed terms and conditions.
According to a Tadawul statement, coverage will begin on Jan. 1, 2026. The contract value exceeds 15 percent of the company’s total revenues, based on its latest audited financial statements for 2024.
Wataniya Insurance Co. ended the session at SR14.35, up 1.92 percent.
Fawaz Abdulaziz Alhokair Co., or Cenomi Retail, has announced executing a SR1.5 billion facility agreement structured as a short-term loan with Emirates NBD – Kingdom of Saudi Arabia. A bourse filing revealed that the financing duration is three years with an option to extend for a total of two years.
Cenomi Retail ended the session at SR20.00, up 0.26 percent.
First Milling Co. has announced the Board of Directors’ recommendation to amend the firm’s bylaws Article “Company Management” to increase the number of board members from seven to eight. This change reflects the firm’s commitment to broadening the range of expertise and skills on its board, in line with its growth and expansion plans for the next phase.
The company reiterated its commitment to fulfilling all necessary procedures and obtaining approvals from the relevant authorities. The recommendation will be submitted to the upcoming General Assembly, with the date to be announced in due course.
First Milling Co. ended the session at SR49.22, down 1.06 percent.
