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  • FG bans export of crude oil allocated to domestic refineries

    FG bans export of crude oil allocated to domestic refineries

    The Federal Government has banned the export of crude oil meant to meet the needs of domestic refineries in the country, apparently in a bid to boost local refining capacity, reduce the import of refined petroleum products and curb pressure on foreign exchange supply.

    Hitherto, about 500,000 barrels of crude oil per day meant for domestic refining have been finding their way to the international market as producers and traders shortchange the policy for quick foreign exchange proceeds.
    Acting through the upstream sector regulator, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, the government warned that it will henceforth deny export permits for crude oil cargoes intended for domestic refining.

    The commission in a statement in Abuja, insisted that any changes to cargoes designated for domestic refining must receive express approval from its chief executive.

    In a letter dated February 2, 2025, addressed to exploration and production companies and their equity partners, the commission’s Chief Executive Officer, Engr. Gbenga Komolafe said diverting crude oil meant for local refineries is a violation of the extant laws of the country.

    At a meeting last weekend, attended by more than 50 critical industry players, both refiners and producers blamed each other for inconsistencies in the implementation of the Domestic Crude Supply Obligation, DCSO, policy.

    While refiners claimed that producers are not meeting supply terms and preferred to sell crude outside, forcing them to look elsewhere for feedstock, producers countered that refiners hardly meet commercial and

    operational terms, forcing them to explore other markets elsewhere to avoid unnecessary operational bottlenecks.

    They, however, agreed that the regulator has put in place appropriate measures for effective implementation of the law.

    The regulator cautioned against any further breaches from either party, and advised refiners to adhere to international best practices in procurement and operational matters.

    The commission reminded producers not to vary the conditions stated in the DCSO policy without obtaining express permission from the chief executive before selling crude outside the agreed framework.

    Komolafe referenced Section 109 of the Petroleum Industry Act (PIA) 2021, which aims to ensure stable supply of crude to domestic refineries and strengthen the nation’s energy security.

    He said NUPRC would, henceforth, strictly enforce the policy regarding implementation and defaults by oil companies.

    He stated that significant regulatory actions had already been taken by the commission, in line with enabling laws to enforce compliance with the DCSO.

    These actions, according to him, include development and signing of the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023, as well as the creation of the DCSO framework and procedure guide for implementation.

    However, Vanguard gathered that the move is targeted at boosting the Naira-for-Crude programme, which aims at ensuring local refineries receive crude oil in naira and sell refined products to marketers in the local currency.

    Dangote, Port Harcourt, Warri, other refineries need 770,500bpd

    In its recent report, NUPRC disclosed that the Dangote Petroleum Refinery and seven other domestic refineries require 770,500 barrels of crude equivalent per day, Bopd, for processing in the first half (January – June) of 2025.

    The refineries include 10,000 bpd OPAC refinery in Delta State, 5,000 bpd WalterSmith Refinery in Imo State, 2,500 bpd Duport Midstream in Edo State and the 1,500 bpd Edo Refinery in Edo State.

    Others include the 11,000 bpd Aradel Refinery in Rivers State, 60,000 bpd old Port Harcourt refinery in Rivers State, 125,000 bpd Warri Refinery in Delta State and 110,000 bpd Kaduna Refinery in Kaduna State.

    In its first half 2025 crude oil production forecast of producing oil companies and the refining requirement of functional refineries, the Commission, “The move is pursuant to Section 109 of the Petroleum Industry Act (PIA), 2021 and it is aimed at effective capacity utilization of the nation’s domestic refineries by ensuring a consistent supply of crude oil.”

    According to the Commission, the allocation constitutes about 37 per cent of the forecasted first half 2025 average daily production of 2,066,940 bpd.

    It maintained that the target will be met as its Project one million barrels launched in October 2024 has increased the capacity of the nation to produce crude for domestic use and export.

    The commission said the initiative aligns with Nigeria’s commitment to bolstering its domestic refining capacity and ensuring the sustainability of its oil industry.

    It stated: “The forecasted daily crude requirement for Refineries which is Seven Hundred and Seventy Thousand, Five Hundred barrels (770,500 Bopd), is about 37% of the forecasted first half 2025 average daily production of Two Million, Sixty-Six Thousand, Nine Hundred and Forty Barrels (2,066,940 Bopd).

    The crude oil will come from some International Oil Companies, IoCs, and independents, including Shell, Chevron and Seplat Energy.

    The commission, which noted that refineries had different crude forecast requirements, put the requirements of Dangote Petroleum Refinery and OPAC refinery at 550,000 bpd and 5,000 bpd, respectively.

    WalterSmith Refinery, Duport Midstream, Edo Refinery and Aradel Refinery at 4,500 bpd, 2,000 bpd, 1,000 bpd and 7,000 bpd, respectively. Also, Port Harcourt refinery, Warri Refinery and Kaduna Refinery need 60,000 bpd, 75,000 bpd and 66,000 bpd, respectively.

    Nigeria’s oil output rises 7.38% to 1.667 mbpd

    Meanwhile, Nigeria’s daily average oil production rose by 7.38 per cent year-on-year in December 2024 to 1.667 million barrels per day, mbpd, including condensate from 1.552 mbpd recorded over corresponding period in 2023, indicating that the nation’s crude oil supply situation has improved.

    In its latest oil production data, NUPRC indicated that on a month-on-month basis, daily average oil output in December 2024, declined by 1.35 per cent from 1.690 million barrels per day recorded in November, 2024, to 1.667mbpd.

    Data from the commission also indicated that daily peak oil production in December 2024 was 1.79mbpd while the lowest daily production was 1.57mbpd.

    Cumulatively, oil output in December 2024, was 51.69 million barrels, a marginal increase of 1.9 per cent when compared to 50.71 million barrels produced in November 2024.

    Further analysis of the data showed that the highest oil output in December 2024 was recorded at Forcados Terminal at 8.49 million barrels, followed by Bonny Terminal, 7.78 million barrels and Qua Iboe, 4.15 million

    barrels.

    The data showed without condensate, daily oil production was 1.484 million, indicating that Nigeria, again, failed to meet its oil production quota of 1.5mbpd allotted her by the Organization of Petroleum Exporting Countries, OPEC.

    The December 2024 average daily oil output also means that Nigeria failed to meet the 1.7mbpd benchmark set for the 2024 budget all through the year.

    NUPRC data on daily average production showed that oil production including condensate in January 2024 was 1.64mbpd; February, 1.53mbpd; March, 1.44mbpd; April, 1.45mbpd; May, 1.47mbpd; June, 1.50mbpd; July, 1.53mbpd; August, 1.57mbpd; September, 1.54mbpd, October, 1.54mbpd; November, 1.69mbpd; and December, 1.67mbpd.

    Interventions to enhance domestic refining, reduce importation — NNPCL

    Reacting to the report on insufficient crude oil supply to local refineries, the Chief Corporate Communications Officer, NNPC Limited, Mr. Femi Soneye, said NNPC is now an independent player in the oil and gas industry.

    In a note to Vanguard, Soneye stated: “The Federal Government has implemented policies to ensure that local refineries receive crude oil supplies to enhance domestic refining capacity and reduce dependence on imported petroleum products. Under the Petroleum Industry Act, PIA, of 2021, oil producers are mandated to allocate specific volumes of crude oil to domestic refineries before exporting the remainder.

    “These policies reflect the government’s commitment to strengthening national energy security by promoting local refining and reducing reliance on imported petroleum products. NNPC is a player in the market and we have continually stressed these facts”.

    Bold step, will impact nation’s economy — CPPE, expert

    However, Chief Executive Officer, Centre for the Promotion of Private Enterprise, CPPE, Dr. Muda Yusuf, said in his immediate reaction to the development: “This is, of course, a very good development if only the NUPRC can effectively ensure enforcement or effectively ensure implementation of this directive.

    “Because this requires a very strong political will to implement, but if this can be implemented I think it will be good for the Nigerian economy, it will be good for the refineries and it will be good even for the citizens and businesses because I believe that generally sourcing crude domestically should be more favourable to the economy than importing. It will be more favourable for instance from the point of view of our foreign exchange.

    “I think it will be much better, it will be of much benefit to us from the point of view of energy security because we are able to localise the free stock and localise even the supply chains which will shield us from any possible external shocks or disruptions.

    “I think it will also help in terms of stabilising the price of petroleum products because there are a lot of benefits to domestic sourcing of raw materials or the free stock.

    “So the government I think has done well but what is most important is to ensure that we create the

    environment to produce, you know, to increase the level of our crude oil production.

    “If the crude oil supply is increased, I think the challenges of meeting the domestic crude supply obligation will be much less because both the producers and the refiners will now have, you know, the right to produce.
    “It will be much better also to creating an enabling environment, particularly from a security point of view, to ensure that we ramp up production. That way, I mean, there will be no pressure, there will be no strain, there will be no stress on either party.

    “But I think it’s in the overall interests of the country that these domestic crude supply obligations are there. And as much as possible, we should also ensure that we also don’t discourage investment in crude production itself. So, it’s a delicate balance that needs to be maintained.”

    Interventions, long overdue — Prof Wumi, Dr Zakka

    Prof. Wumi Iledare, a Professor Emeritus in Petroleum Economics and Policy Research, said in his reaction: “It should be challenged in the courts of law if two things did not happen before the ban. It should be noted that domestic obligation is not at a give away price, neither can you invoke a naira pricing at an unstable exchange rate.”

    Similarly, in a telephone interview with Vanguard, yesterday, a Port Harcourt-based energy expert, Dr. Bala Zakka, said: “The NUPRC’s intervention is long overdue. It is a long awaited action that should have been taken.”

    Oil prices leaps to $76.45 per barrel on supply fears

    Meanwhile, oil prices, including Nigeria’s Bonny Light, rose on Monday after U.S. President Donald Trump imposed tariffs on Canada, Mexico and China, raising fears of supply disruption, though gains were capped by concern over what could be an economically damaging trade war.

    Brent crude futures rose 78 cents, or 1.03%, to $76.45 a barrel by 0933 GMT after touching a high of $77.34.
    U.S. West Texas Intermediate crude futures were up $1.36, or 1.88%, at $73.89 after touching their highest since Jan. 24 at $75.18.

    Oil output has improved —Lokpobiri

    Recently, the Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri noted that the nation’s crude output has improved, due to the removal of regulatory bottlenecks and collaboration amongst stakeholders.

    He stated: “With the Presidential directive to ramp up oil production to a sustainable level, the journey of transformation in our oil sector began. This visionary directive by President Bola Ahmed Tinubu, as broad as it was, became the cornerstone of my commitment and that of my team.

    “We embraced it wholeheartedly, engaging stakeholders both domestically and internationally to build synergy and foster partnerships. Through these efforts, we successfully attracted significant investments and strengthened institutional frameworks, driving the remarkable transformation we see today in the sector.

    “From the production level of 1mbpd when we began, we have boosted output to 1.8mbpd, inclusive of condensates, and continue to aspire for even greater heights. Our achievements include attracting foreign investment decisions, winning the bid to host the Africa Energy Bank, sustaining peace across Host

    “From the production level of 1mbpd when we began, we have boosted output to 1.8mbpd, inclusive of condensates, and continue to aspire for even greater heights. Our achievements include attracting foreign investment decisions, winning the bid to host the Africa Energy Bank, sustaining peace across Host Communities through robust community engagements, and fully deregulating the downstream sector, ensuring constant availability of petroleum products.”

  • Subsidy Removal: Oil marketers escalate borrowing, transfer burden to motorists

    Subsidy Removal: Oil marketers escalate borrowing, transfer burden to motorists

    Against the backdrop of sharp rises in cost of procuring products and interest rates in banks petroleum marketers have recorded massive jump in bank borrowing and cost of doing business.

    Financial Vanguard findings from the financial records of key operators in the sector show they borrowed over N3.0 trillion in the nine months ended September 2024, 9M’24, up by 76.5 % from N1.7 trillion in the corresponding period 2023, 9M’23.

    The Central Bank of Nigeria, CBN, Monetary Policy Rate (MPR) which is the benchmark lending rate for banks, went up from 18.75% in 2023 to 27.50% in 2024, a rate considered too high and disincentive to businesses.

    However, the sharp and sudden rises in petroleum product prices forced the oil marketing companies to resort to bank borrowings to meet up with product procurements.

    Consequently, the companies recorded high growth in finance cost, rising to N156.9billion in 9M’24, representing 78.9% increase from N116.083 billion in 9M’23.

    But the companies still recorded significant profit margins on the back of huge rise in turnover driven by higher pump prices of petrol across the country, indicating that they effectively transferred the high cost of borrowings to the consumers.

    The combined firms’ profit before tax, PBT grew by 44.5% to N420.805 billion in 9M’24 from N280.805 billion in 9M’23, while turnover grew by 57.9% to N5.296 trillion from N3.355 trillion in 9M’23, surpassing inflation at 34.8%.

    The companies covered by Financial Vanguard findings includes Oando, Conoil, Eterna Plc, MRS Oil,Total Energies and Aradel Plc.

    Explaining the market situation, industry and financial analysts said the elasticity of demand for petroleum products is quite high hence they were able to transfer their costs to consumers.

    They also said petroleum product procurement cost rose sharply since removal of subsidy in 2023 and further escalated in 2024 and this entails very huge working capital outlay which many operators could not afford. Hence they resorted to bank credit.

    According to them, the increase in the price of products also means they will require more capital to maintain and grow their volumes which is the cause of the increase in borrowing seen in their figures.

    The experts noted that the final removal of Nigeria’s longstanding fuel subsidy marked the beginning of a new economic reality, significantly altering the country’s oil sector and leading to sharp rises in fuel prices which spurred inflation to 34.8 per cent in December 2024, the highest in 30 years.

    They noted that the government was able to follow through with the deregulation of the downstream oil sector, but added that it had been very costly to businesses and the citizens.

    On the outlook, they said expectation of impressive performance and increased dividend from the petroleum sector is high amongst investors. This, according to them, “is because of the encouraging trend since beginning of last year. Since 3rd quarter of 2024, distribution of petroleum products has nearly normalized meaning improving income for operators. Consequently, 2025 is even expected to be a better year for the industry in terms of return.”

    Companies’ performance

    Financial Vanguard’s analysis from the data gathered from the NGX showed that in terms of borrowing, Oando Plc led the chart as its borrowing grew by 238% to N2.773 trillion in 9M’24 from N818.3 billion in 9M’23. It was followed by Aradel Plc , which soared by 55.6% to N96.399 billion from N61.971 billion. Total Energies recorded N100.505 billion, showing an increase by 18.9% from N84.500 billion, while Eterna Plc borrowing grew marginally by 0.01% to N42.691 billion from N42.686 billion. Conoil reduced its borrowing by 61.7% to N12.272 billion from N32.005 billion. MRS did not borrow during the period under review after taking a loan of N1.411 billion in the 9M’23.

    Finance cost

    Eterna Plc led in the finance cost chart rising by 477.7% to N5.084 billion in 9M’24 from N887 million in 9M’23. It was followed by Conoil whose finance cost grew by 105.5% to N2.476 billion from N1.303 billion.
    Oando’s finance cost went up by 70.1% to N131.129 billion from N77.072 billion. Aradel finance surged by 38.3% to N7.072 billion from N5.114 billion, while Total Energies net finance cost grew by 23.6% to N11.041 billion from N3.340 billion while MRS Oil recorded the least finance cost of about N100 million rising by 5.3% from N95.0 million.

    Cost of sales

    The combined firms’ cost of sales grew by 58.26% to N5.153 trillion from N3.256 trillion in 9M’23. Aradel led the chart rising by 231% to N261.213 billion from N78.81 billion, followed by MRS whose cost of sales increased by 155.6% to N229.863 billion from N89.946 billion in 9M’23. Total Energies recorded 91.1% growth to N700.205 billion from N366.456 billion in 9M’23. Conoil’s cost of sales rose by 85.3 % to N223.587 billion from N120.650 billion. Eterna’s cost of sales went up by 85.2% to N203.625 billion from N109.925, while Oando recorded N2.995 trillion at a growth rate of 32.7% from N2.257 trillion in 9M’23.

    Profits

    Aradel led the PBT chart as it grew by 186% to N321.6 billion from N112.163 billion. It was followed by Total Energies growing by 151.8% to N41.850 billion. MRS Oil’s PBT surged by 88.9% to N9.374 billion from N4.958 billion. Conoil recorded 37.9% growth in PBT to N15.242 billion from N11.053 billion in 9M’23,

    followed by Oando whose PBT grew by 13.4% to N31.135 billion. However, Eterna’s PBT dropped by 51.% to N1.679 billion from N3.428 billion.

    Turnover

    Aradel led the turnover chart growing by 162.7% to N581 billion from 221.1 billion. It was followed by MRS Oil whose turnover increased by 144.1% to N248.7 billion from 101.877 billion. Eterna occupied third position posting N203.625 billion, representing 89.6% growth from N109.9 billion in 9M’23. Total Energies grew its PBT by 88% to N793.9 billion from N422.576 billion, while Conoil recorded 80.7% growth in turnover to N249.139 billion from N137.888 billion. Oando grew its turnover by 35.8% to N3.189 trillion in 9M’24 from N2.349 trillion in 9M’23.

    Analysts/Economy experts comment

    Commenting on the industry development, Analyst and Executive Vice Chairman at Highcap Securities Limited, David Adonri, said: “The growth in the profit made by petroleum companies are fallouts from the deregulation of the Oil/Gas sector and consequent colossal increase in price of petroleum products. Their cost also increased astronomically because of higher cost of sales, high finance cost and impact of the general rise in inflation.

    “The elasticity of demand for petroleum products is quite high hence they were able to transfer their costs to consumers. Secondly, through several turnovers of their capital employed, they were able to massively outperform inflation”.

    On the huge borrowing in the sector, he said: “Petroleum business requires very huge working capital outlay which many operators cannot afford hence the resort to bank credit. With escalation in cost of sales and operational costs, borrowing and attendant finance cost increased. Their healthy returns after deduction of finance cost means that their short term debt servicing capacity is strong.”

    While commenting on the outlook in 2025, Adonri said: “Expectation of impressive performance and increased dividends from the petroleum sector is high amongst investors. This is because of the encouraging trend since beginning of last year. Since 3rd quarter of 2024, distribution of petroleum products has nearly normalized meaning improving income for operators. Consequently, 2025 is even expected to be a better year for the industry in terms of return.”

    The Chief Operating Officer of InvestData Consulting Limited, Mr Ambrose Omordion, attributed the increase in revenue of these companies to higher-margin oil products, stressing that the ease of movement also contributed to revenue and profit.

    According to him, “These companies reported an increase in revenue due to higher margin in products they sold this year. The reforms in the oil & gas sector have impacted on revenue that translates into profit. Also, last year witnessed a significant petrol price hike, which put a strain on the economy. The price hike was initially followed by petrol scarcity, further exacerbating the economic hardship faced by Nigerians. Despite these challenges, the country’s oil sector recorded appreciable profit and revenue”.

    Responding to the remarkable performance of the oil & gas / petroleum marketing sector, former President of the Chartered Institute of Stockbrokers, CIS and Managing Director/ Chief Executive Officer of Arthur Stevens Asset Management Limited, Olatunde Amolegbe, said: “It’s clear that the decision to deregulate the

    downstream energy sector has had a profound impact on the performance of companies operating in that sector.

    Firstly, since prices are no longer regulated players can now set their own pump price relative to their cost, operating expenses, margins and other parameters. It therefore means that they are able to squeeze more profitability from their businesses.

    Secondly the increase in the price of products also means they will require more capital to maintain and grow their volumes which is the cause of the increase borrowing seen in their figures

    Thirdly they also benefit from sourcing products locally with the coming on stream of Dangote Refineries which reduces their FX exposure/ risks and also improves product availability

    I think the profit spike they’ve seen this year has to do with this fundamental changes in the functioning of the sector. Its likely that margins will stabilize as the industry settles into its new reality and intense competition sets in.”

    In his own comment, Dr Muda Yusuf, former Director General, Lagos Chamber of Commerce & Industry,LCCI and Managing Director, Centre for the Promotion of Private Enterprise, CPPE, said: “For the oil marketing companies, one of the things that they have craved for over the years is this complete deregulation of the downstream sector, there have been several attempts by various administrations, which had not worked because the political will to follow it through was not there.

    “So for this administration, I think that is one credit we need to give them. They were able to follow through with the deregulation of the downstream oil sector, although it had been very costly to businesses, to

    citizens, and even politically costly even to the government.

    “So that is the reform that the downstream sector operators in the oil and gas have been clamoring for, and this includes in the marketing. So the policy environment is now much better than what they used to have. So that is one major thing that I think has contributed to this growth, you know, there’s a lot more confidence now to invest in that sector, and then we are likely to even see more growth in the sector, particularly, even among the majors and even other players.

    The petroleum firms are one of the major beneficiaries of this reform. So that is what is playing out”.
    Commenting on the future outlook, Yusuf said: “I think we should also not be carried away by nominal figures, you know, the cost of a tanker of Premium

    Motor Spirit, PMS, today is almost three times what it used to be. So these big numbers, by the time you look at the volume of business it can do. It’s not as if it is as big as you look it, because we need to discount these figures for inflation, for the high cost of procurement of products and all of that, and even also high cost of finance and those things. So we should also be careful not to fall into the risk of some kind of monetary illusion. Because, you know, N1 million today is just about may be N100,000 a year ago, you know, so you have to take that into account. If we discount for inflation, you see that the growth is not really as phenomenal, as its been projected by the numbers.

    “So we need to watch out for that. But generally, I think the reform process has actually benefited the sector, this segment of the petroleum industry, significantly”.

    Commenting as well, Tajudeen Olayinka, Investment Banker & Stockbroker said: “I think the best way to look at performance of companies in the oil & gas/petroleum marketing sector is to consider how recent

    adjustment policies of government continue to shape consumption and production in the sector. There is no doubt that removal of petroleum subsidy impacted negatively on consumption of product, given that purchasing power has not improved significantly to sustain old consumption level and habit. It is therefore out of place to refer to 66.1% jump in revenue or 44.5% jump in profit before tax as anything superficial. In a period of high inflation, businesses tend to adjust prices to accommodate rising cost of inputs to be able to stay afloat in the short-run. That is what those figures, especially, profit before tax has demonstrated.

    “It is just a jump in nominal value, given high inflationary pressure that we have. The actual sales volume could have been much lower than the performance in 2023.

    “ That is the tradition in that sector. Working capital is largely funded with debt, and because they trade in necessary goods, they are able to recover cost significantly, to the extent competition could permit.

    “ I think performance in 2025 will be driven largely by moderation in inflation rate. Given that government is targeting moderation in inflation, it is very likely that performance in 2025 will surpass what we have seen in 2024”.

  • Oando rakes in N4.1trn revenue in 45% growth

    Oando rakes in N4.1trn revenue in 45% growth

    Oando  Plc  Africa’s leading integrated energy company listed on both the Nigerian Exchange Group (NGX) and Johannesburg Stock Exchange (JSE), has announced a strong financial performance for the Full Year (FY) 2024 with a 45% growth in revenue to N4.1 trillion compared to N2.9 trillion in FY 2023 results.

    The company’s 2024 performance showcases a consistent upward trajectory following its announcement of N65.5 billion in profit after tax.

    Speaking on the results, Group Chief Executive, Oando PLC, Wale Tinubu CON, commented, “2024 was a year of transformation for Oando, the key highlight being our successful acquisition and subsequent integration of NAOC Ltd, which significantly enhanced our production capacity, attaining peak operated production of 103,206boepd and net entitlements of 45,000 boepd.

    Despite a challenging operating environment, we achieved a 45% increase in revenue to N4.1 trillion, reflecting the strength of our business model, and a 9% rise in profit after tax to N65.5 billion, notwithstanding the costs associated with the onboarding of NAOC.”

    Oando’s production for the twelve months ended December 31, 2024, averaged 23,911 barrels of oil equivalent per day (boe/d), an increase from the 23,258 boe/d achieved in 2023. This growth was primarily driven by the acquisition of an additional 20% stake in the NAOC JV in Q4, partially offset by production disruptions due to shut-in wells resulting from sabotage activities.

    Looking ahead to 2025, Tinubu stated, “In 2025, our priority shall be to drive cost optimization, operational efficiency, streamline processes, enhance procurement, and leverage technology to improve productivity across our operations. In parallel, we will intensify efforts to boost production through the dual approach of

    rig-less and workover initiatives while executing an aggressive drilling program across three rig lines.

    Simultaneously, in collaboration with other stakeholders, we are proactively tackling above-ground security challenges by implementing a revamped security framework that integrates advanced surveillance technology and intelligence-driven initiatives to curb the perennial, unnecessary, and unjustifiable theft of oil to ensure the long-term integrity of our vast network. As we look ahead to an exciting and successful 2025, we recognize that achieving our goals requires the unwavering support of our host communities and partners. Through extensive engagement, we will foster a collaborative ecosystem that not only secures our operations but also drives shared prosperity and sustainable development for all.”

  • Dangote Petroleum Refinery slashes ex-depot price of petrol to N890 per litre

    Dangote Petroleum Refinery slashes ex-depot price of petrol to N890 per litre

    Dangote Petroleum Refinery has reduced the ex-depot (gantry) price of Premium Motor Spirit (PMS), also known as petrol to N890 per litre, from N950 per litre, effective from Saturday, February 1, 2025.

    The price of crude oil, including Nigeria’s Bonny Light, a major feedstock, dropped to $75.67 per barrel, from over $80 per barrel in the international market.

    However, Dangote Petroleum Refinery said the price reduction was based on developments in the global oil market, adding that it remains committed to transparency and fairness to all stakeholders.

    In a statement, the company, stated: “This strategic adjustment is a direct response to the positive outlook within the global energy and gas markets, as well as the recent reduction in international crude oil prices.

    As part of Dangote Refinery’s unwavering commitment to transparency and fairness, this price revision reflects the ongoing fluctuations in global crude oil markets, as highlighted in the refinery’s statement on 19th January, when a modest increase was implemented due to the previously rising international crude oil prices.

    “Dangote Petroleum Refinery firmly believes that this reduction from N950 to N890 will result in a meaningful decrease in the cost of petrol nationwide, thereby driving down the prices of goods and services, as well as the overall cost of living, with a positive ripple effect on various sectors of the economy.”

  • Mark Zuckerberg’s Meta considers incorporation shift to Texas — Report

    Mark Zuckerberg’s Meta considers incorporation shift to Texas — Report

    Meta is considering whether to move its incorporation to Texas, a US state seen as amenable to companies run by big shareholders like Mark Zuckerberg, the Wall Street Journal reported Friday.

    The social media giant has been incorporated in Delaware since 2004, when the company was known as Facebook.

    A shift to Texas by Meta would follow in the footsteps of Elon Musk, who switched incorporation of Tesla and some other companies he runs to the state after a Delaware judge voided his huge compensation package.

    In a ruling, Delaware Chancery Court Judge Kathaleen McCormick sided with a shareholder who claimed the Tesla CEO was overpaid, approving the annulment of Musk’s 2018 compensation agreement worth as much as $55.8 billion.

    Suits filed by shareholders are typically heard in courts where companies are incorporated, and Texas portrays itself as a friendly venue for companies run by shareholders with controlling interests.

    Meta spokesperson Andy Stone told AFP he could not confirm the Journal report and that the company had no plans to move its headquarters from California’s Silicon Valley.

    Texas has a history of supporting conservative political candidates, Trump among them.

    Trump has recently courted tech titans including Zuckerberg and X owner Musk, both of whom attended the president’s inauguration in Washington.

    Meta has pulled back on fact checking and diversity initiatives as Zuckerberg embraces Trump.

    Zuckerberg has tweaked Meta’s policies to lift restrictions on some content within the company’s apps, which include Facebook, Instagram, Threads and WhatsApp.

    Meta would be “restoring free expression on our platforms,” Zuckerberg, who reportedly dined with Trump at his Florida estate in November, said in announcing a recent rollback of fact-checking operations.

    Meta this week said it agreed to pay Trump $25 million to settle a 2021 lawsuit he filed claiming he was wrongfully censored by Facebook and Instagram after the US Capitol riot.

  • FG targets $23.2bn investment for power sector

    FG targets $23.2bn investment for power sector

    The Manufacturers Association of Nigeria (MAN) has called for clear guidelines to be established for manufacturers, importers, and exporters ahead of the National Single Window Project’s (NSW) implementation in Nigeria.

    Speaking with Vanguard on the sideline of the recently concluded National Single Window Stakeholders Conference at the Marriott Hotel in Ikeja, Lagos, Mrs. Adebukola Akanmu, Regulatory Affairs and Compliance Manager at FrieslandCampina Nigeria PLC, makers of Peak and Three Crowns milk, and a member of MAN’s Foods Sectoral Group, emphasized the importance of having a solid guidelines in place, warning that without clear regulations, chaos could ensue.

    Akanmu stressed the need for well-defined processes that would guide all players in the international trade value chain. “While the government has expectations of manufacturers, importers, and exporters, businesses also have their own expectations from the government,” she explained. She further noted that the trade portal for the Single Window Project should ensure transparency in submitting trade documents, which is crucial for its success.  Her words: “We need to engage in a transparent manner to enhance the ease of doing business. Clear guidelines are essential, outlining the expectations of all parties involved.

    “The goal of the Single Window Project is to ensure that business is conducted transparently and properly, and that everyone understands the guidelines before moving into more specific processes.”

    Reacting to the concerns, Mr. Tola Fakolade, Director of the National Single Window Project and Head of Secretariat, assured that comprehensive guidelines would be introduced for all stakeholders. He added that before the guidelines are rolled out, extensive training would be conducted for everyone involved in the international trade process.

  • FX Code: NECA lauds CBN, seeks effective implementation

    FX Code: NECA lauds CBN, seeks effective implementation

    The Nigeria Employers’ Consultative Association, NECA, has commended the Central Bank of Nigeria, CBN, for the launch of the Nigerian Foreign Exchange, FX, Code, describing it as a strategic policy initiative aimed at enhancing transparency, aethical conduct, and governance in Nigeria’s FX market.

    Director-General of NECA, Mr. Adewale-Smatt Oyerinde, in a statement yesterday, said, “The introduction of the FX Code is a commendable step towards enhancing transparency, integrity, and professionalism in Nigeria’s foreign exchange market. This aligns with NECA’s advocacy for policies that foster a conducive business environment and economic stability.

    “We believe that the FX Code will not only promote ethical conduct among market participants but also bolster investor confidence, which is crucial for economic growth. NECA encourages all stakeholders to familiarize themselves with the provisions of the FX Code and ensure full compliance to achieve its objectives.”

    While NECA commends the CBN for this progressive move, Mr. Oyerinde stressed that “the success of the FX Code will depend on effective implementation, enforcement, and stakeholder buy-in.

    It is critical that the CBN ensures full compliance with the FX Code across all market participants, including banks, Bureau De Change operators, and corporate entities. There must also be periodic reviews and stakeholder engagements to fine-tune the policy where necessary.”

  • EU launches grant for Eurocham to manage secretariat activities

    EU launches grant for Eurocham to manage secretariat activities

    The European Union (EU), yesterday in Lagos, launched  Eurocham Nigeria Institutional Development Support to strengthen Eurocham’s secretariat, expand advocacy, and enhance external engagement for its members.

    Eurocham represents the aggregate chambers of commerce for members of the EU and their partners in Nigeria.

    The €300,000 three-year grant is part of the EU’s effort to support Eurocham to effectively fulfil its mandate and expand its membership base in Nigeria.

    By reinforcing Eurocham’s role in advocacy and policy dialogue, the grant seeks to create a conducive business environment through strategic engagement with local governments, policymakers, and stakeholders.

    Furthermore, through the grant, Eurocham will be able to promote trade and investment opportunities, benefitting both European and Nigerian economies, while aligning with the overall objective of reinforcing the EU’s role as Nigeria’s strategic partner.

    Speaking at the Eurocham’s 25th Annual Stakeholders Conference in Lagos yesterday, the EU Ambassador to Nigeria and ECOWAS, Gautier Mignot, noted that the launch of the grant is a significant step in deepening EU-Nigeria trade relations.

    He stated: “A highlight of 2024 that I would like to underscore is the approval of a three-year grant to the tune of €300,000 which we awarded to Eurocham last year.

    “This financial support will allow the Chamber to strengthen its Secretariat’s administrative capacity and allow for further expansion of external activities and advocacy work on behalf of its members”.

    Highlighting the readiness of the EU to deepen collaboration with Eurocham Nigeria, Mignot explained that strong governance, effective coordination with EU Member States, and collaboration with bilateral chambers are the hallmarks that he believes will enable Eurocham to continue to succeed.

    He said, “By building on what has been achieved so far, we pave the way for even greater opportunities in key areas like trade, investment, and infrastructure development.”

  • Nigeria’s instant payment transactions hit N1.07 quadrillion in 2024 – NIBSS

    Nigeria’s instant payment transactions hit N1.07 quadrillion in 2024 – NIBSS

    The Nigeria Inter-Bank Settlement System (NIBSS) has reported a significant surge in instant payment transactions, with the total value reaching N1.07 quadrillion in 2024—an increase of 78% from N600.36 trillion recorded in 2023.

    According to NIBSS data, December 2024 saw the highest transaction value at N115 trillion, a sharp rise from N71.9 trillion in December 2023. Instant payment transaction volumes also peaked at 1.02 billion in May but declined slightly to 962.2 million by December.

    Key highlights from NIBSS data show Nigerians used point-of-sale (PoS) channels 1.38 billion times, transacting a total of N18.32 trillion in 2024; operators like Opay, Palmpay, Moniepoint and Kuda recorded N79.5 trillion in transactions—up 70.6% from N46.6 trillion in 2023; MMO Transaction Volume increased from 3.04 billion in 2023 to 3.91 billion in 2024, reflecting a 28% growth.

    The sharp rise in digital payments underscores the growing adoption of electronic transactions in Nigeria’s financial sector, driven by mobile money platforms and real-time payment systems.

  • FG launches framework to attract direct investment

    FG launches framework to attract direct investment

    IN a determined effort to attract foreign direct investment (FDI) to the Nigeria, the Federal Government on Wednesday announced the introduction of the Regulatory Impact Analysis (RIA) Framework to create a more favourable and business-friendly environment.

    At the Second Existing Foreign Direct Investors Roundtable and Regulators’ Forum and the launch of Nigeria’s regulatory impact analysis framework, the State Action Plans for Enabling Business Reforms Programme to improve state-level business environments for the initiative with $750 million World Bank support was unveiled.

    Speaking at the event, the Director-General of the Presidential Enabling Business Environment Council (PEBEC), Zahrah Audu, stressed the significance of a Nigeria that is both competitive and investment-friendly.

    She explained that the government was striving to finance incentives that would carry out reforms aimed at helping Small and Medium Enterprises, SMEs, to generate employment, and draw in investments.

    Audu noted that PEBEC was founded so as to remove long-standing barriers to doing business in Nigeria, adding that the Council had carried out more than 200 daring changes in a variety of industries over the years, concentrating on six strategic work streams to maintain progress.

    She said: “Today’s launch of the Regulatory Impact Analysis Framework is a major milestone in our regulatory reforms.

    “This framework ensures that all new regulations undergo thorough assessments to evaluate their economic, social, and environmental impact, reducing unnecessary business hurdles while safeguarding public

    interests.”

    Audu said that FDI is crucial for Nigeria’s economic diversification, job creation, and technological advancement.

    According to her, “To attract and retain FDI, we must streamline our regulatory processes.

    “The RIA Framework will foster a predictable, transparent, and business-friendly regulatory environment. By collaborating with local and international institutions, we can bridge infrastructure gaps, boost productivity, and lower the cost of doing business.”

    She reaffirmed President Bola Tinubu’s administration’s commitment to supporting both new and existing investors, ensuring that policies align with investor expectations.

    She reiterated the need for continued public-private dialogue to ensure effective implementation of reforms.

    “We are committed to making Nigeria the preferred investment destination in Africa. Together, let’s create an environment where businesses thrive, investments flourish, and millions of Nigerians benefit from economic growth,” she said.

    “With the RIA Framework in place, Nigeria moves closer to its goal of attracting sustainable foreign investment and fostering long-term economic development.”

    Also speaking, the Benue State governor, Rev. Fr. Hyacinth Alia identified the state as a premier destination for investment, underscoring its the strategic location, abundant natural resources, and commitment to fostering a business-friendly environment.

    He said: “Benue is strategically located in the heart of Nigeria, making it an ideal hub for businesses looking to expand their reach across the nation.”

    He highlighted the state’s rich agricultural potential, declaring that its fertile soil and favourable climate are key assets for investors in the agricultural sector.

    While inviting partnerships that could leverage these advantages, the governor said: “We are particularly focused on crops such as soya beans, grains, and livestock farming.”

    In addition to agriculture, Alia emphasised the opportunities in manufacturing and tourism, saying : “We are seeking investors to establish processing and manufacturing plants in Benue State.

    “Our abundant natural resources and strategic location provide a solid foundation for industrial growth.”

    The governor also pointed out Benue’s untapped solid minerals and tourist attractions, such as the Benue National Park and the Katsina Allah River, urging investors to help develop the state’s tourism infrastructure.

    To further entice investors, Alia announced that his administration is committed to providing personalized support throughout the investment process.

    “We will offer necessary assistance and facilitation to ensure a seamless and successful investment experience,” he assured attendees.

    He also mentioned the possibility of waivers and incentives to help investors overcome challenges and a friendly business environment.

    Alia stated, “Our administration is dedicated to ensuring that your investments are safe and secure,”  expressing confidence in the state’s potential to become a major economic hub in Nigeria.

    He said: “I invite you to join us on this journey. Together, we can unlock the vast potentials of our state and drive economic growth for our people.”

    On his part, Governor Peter Mbah of Enugu State, outlined an ambitious seven fold economic growth projection over the next six years, targeting a 27 per cent compounded annual growth rate.

    Governor Mbah stressed that private sector investment is central to achieving this vision, expressing his administration’s ambitious vision to transform the state’s economy.

    He also expressed his excitement about the potential investments in attendance, stating, “The amount of money in this room is palpable, and I hope to take some of it back to Enugu.”

    The Enough State Governor announced a bold target to grow Enugu’s gross domestic product (GDP) from $4.4 billion to $30 billion within eight years, representing a seven-fold increase.

    “Our vision is to create a thriving economic environment that attracts private sector investment, which we view as the lifeblood of our growth,” he emphasized.

    The governor highlighted the importance of such fora in facilitating discussions that could lead to actionable investments.

    He praised the collaborative efforts of the Enugu State Investment Development Authority and federal regulatory agencies, stating, “We are committed to creating an enabling environment that de-risks investment flows.”

    Mbah assured investors that his government has executed numerous bankable projects across various sectors, significantly reducing the time and resources needed for feasibility studies.

    Reflecting on Enugu’s historical significance as an economic hub, Mbah remarked, “We are on a journey to restore Enugu’s status as a premier destination for business and tourism.”

    He pointed out that strategic investments in infrastructure and regulatory frameworks are essential for achieving this vision.

    He also addressed the need for transparency in government dealings with investors, saying : “You can take our commitment to transparency for granted; it’s in our DNA.”

    He outlined plans for a one-stop shop through the Enugu State Investment Development Authority, which will streamline business registration and licensing processes.

    In addition to economic growth, Mbah stressed the importance of education and human capital development.

    “We are investing heavily in education because nothing transforms lives like quality education,” he said.

    The governor announced plans to equip 40,000 youths annually with digital skills and practical training, aiming to align educational outcomes with industry needs.

    The governor invited investors to explore opportunities in Enugu, assuring, “we will work with you every step of the way.”

    The Minister of Industry, Trade, and Investment, Jumoke Oduwole, highlighted that over 70 per cent of American businesses view the government’s recent reforms positively, indicating growing investor confidence.

    Oduwole emphasised the importance of trade facilitation and collaboration with various chambers of commerce to optimize the African Continental Free Trade Area (AfCFTA) agreement.

    She acknowledged the challenges posed by inflation and infrastructure deficits but expressed optimism about Nigeria’s economic trajectory, citing a trade surplus of $8 billion in 2024.