The multi-national integrated oil and gas company, TotalEnergies Nigeria, and four firms in the sector paid a combined sum of N711.3 million as rents on office buildings in the first half of this year.
This followed the rise in rental costs in the real estate sector since the onset of the COVID-19 pandemic in the country.
The four other firms are – Seplat, Conoil, MRS Oil Nigeria, and Ardova [whose books are public as a quoted firm].
The high cost paid on rents had impacted several companies in various sectors of the Nigerian economy since the country’s recorded its index COVID-19 case in February last year.
However, Ripples Nigeria analysis of spending by companies in the oil and gas sector revealed that the N711.3million spent by the five firms was 28.2 percent or N279.94 million lower than the N991.31 million spent on rent in H1 2020.
Total reported the highest drop in real estate expenses dropping by 75.08 percent from N163.39 million in H1 2020 to N40.71 million this year.
Ardova followed after its rental expenditures slipped from N312.73 million reported in H1 2020 to N116.64 million this year.
Conoil spent N330 million in H1 2021 compared to N360 million for 2020.
While the three companies reported a drop in rental cost, MRS Oil expenses increased by 53.4 percent from N65.18 million in 2020 to N100.01 million this year.
Seplat’s spending also increased from N90 million last year to N124 million this year.
In a statement on spending, Conoil said: “As a result of the COVID-19 pandemic, rent concessions have been granted to leases. Such concessions might take a variety of forms, including paid holidays and deferral of lease payments.”
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