A three-day national strike prompted by layoffs at the Dangote refinery has led to production losses of 600,000 barrels, the chief executive of the Nigerian National Petroleum Company has said.
"I think it was unfortunate that the Dangote and PENGASSAN issue led to strike and whenever there is strike and critical staff manning critical facilities are not available and optimum production is almost impossible. In this particular case, we actually lost significant production of over 200,000 bpd that was deferred," Bayo Ojulari told media.
The main Nigerian oil union launched a nationwide strike last month after the Dangote refinery fired as many as 800 workers. The strike lasted for three days, threatening to reduce fuel supply in the country relying on the new processing facility and in several neighboring countries, which import fuels from Dangote.
The Nigerian oil workers' union, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said that the Dangote refinery, owned by Africa's richest man Aliko Dangote, has fired the workers for unionizing. The Dangote management, for its part, said that the dismissals were part of staff restructuring and those dismissed engaged in "acts of sabotage".
The strike came at a time when Nigeria's oil industry is staging a recovery, with oil production on the rise and investments climbing. Production as of September-before the strike-averaged between 1.7 million barrels daily and 1.83 million barrels daily, with active rigs rising from 31 at the start of the year to 50 by July, according to a report from the oil ministry.
According to NNPC's Ojulari, the September average was 1.68 million barrels, which was an increase from August. In natural gas, Nigeria produced 7 billion cubic feet daily last month, the top executive also told media, adding that by the end of the year, oil production should rebound to 1.8 million barrels daily.
By Irina Slav, Oilprice.com
Showing posts with label oil. Show all posts
Showing posts with label oil. Show all posts
Tuesday, October 7, 2025
Wednesday, October 1, 2025
Nigeria avoids energy disruption as Dangote resolves dispute with a major oil union
The Nigerian labor ministry, which was an instrumental figure in the mediation between both parties, recently announced that the oil union has decided to call off its protest against the refinery.
PENGASSAN’s grievance was brought on by allegations that the Dangote Refinery fired hundreds of workers tied to the union.
This ultimately led to a strike, which threatened the security of energy distribution in Africa’s most populous market.
However, the Nigerian labor ministry, via a statement issued on Wednesday, disclosed that PENGASSAN has decided to call off its strike.
“The Honourable Minister of Labour informed the meeting that unionisation is a right of workers in accordance with the laws of Nigeria, and this right should be respected,” the statement revealed.
“After examining the procedure used in the disengagement of workers, the meeting agreed that the management of Dangote Group shall immediately begin the process of redeploying the disengaged staff to other companies within the Dangote Group, with no loss of pay.
No worker will be victimised arising from their role in the impasse between Dangote and PENGASSAN.
PENGASSAN agreed to start the process of calling off the strike. Both parties agreed to this understanding in good faith,” the statement added, as seen on the Punch.
The meeting between both parties, which has yielded results, remained in a stalemate on the first day of negotiations.
Mohammed Dingyadi, the Minister of Labor and Employment, and Nkiruka Onyejeocha, the Minister of State for Labor and Employment, participated in a nine-hour-long dialogue that lasted until early Tuesday morning.
However, the second phase of the meeting, which included the National Security Adviser, Mallam Nuhu Ribadu; Minister of Labour and Employment, Dr. Dingyadi; Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and Economic Planning, Senator Atiku Bagudu; Minister of State for Labour and Employment, Barr. Nkeiruka Onyejeocha, Director-General of the DSS, Adeola Ajayi, and the Director-General of the NIA, Ambassador Mohammed Mohammed, have led to an agreement.
PENGASSAN’s grievance was brought on by allegations that the Dangote Refinery fired hundreds of workers tied to the union.
This ultimately led to a strike, which threatened the security of energy distribution in Africa’s most populous market.
However, the Nigerian labor ministry, via a statement issued on Wednesday, disclosed that PENGASSAN has decided to call off its strike.
“The Honourable Minister of Labour informed the meeting that unionisation is a right of workers in accordance with the laws of Nigeria, and this right should be respected,” the statement revealed.
“After examining the procedure used in the disengagement of workers, the meeting agreed that the management of Dangote Group shall immediately begin the process of redeploying the disengaged staff to other companies within the Dangote Group, with no loss of pay.
No worker will be victimised arising from their role in the impasse between Dangote and PENGASSAN.
PENGASSAN agreed to start the process of calling off the strike. Both parties agreed to this understanding in good faith,” the statement added, as seen on the Punch.
The meeting between both parties, which has yielded results, remained in a stalemate on the first day of negotiations.
Mohammed Dingyadi, the Minister of Labor and Employment, and Nkiruka Onyejeocha, the Minister of State for Labor and Employment, participated in a nine-hour-long dialogue that lasted until early Tuesday morning.
However, the second phase of the meeting, which included the National Security Adviser, Mallam Nuhu Ribadu; Minister of Labour and Employment, Dr. Dingyadi; Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and Economic Planning, Senator Atiku Bagudu; Minister of State for Labour and Employment, Barr. Nkeiruka Onyejeocha, Director-General of the DSS, Adeola Ajayi, and the Director-General of the NIA, Ambassador Mohammed Mohammed, have led to an agreement.
Origins of Dangote’s dispute with PENGASSAN
Following the dismissal of hundreds of employees, the Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) became embroiled in a major dispute.
The union alleged that Dangote violated labor rights and discriminated against local employees by firing over 800 Nigerians who joined PENGASSAN, replacing them with foreign workers.
Nigeria's downstream oil industry was severely disrupted when the union retaliated by asking that the delivery of gas and crude oil to the $20 billion refinery be suspended.
They then launched a nationwide strike, which has garnered support from other downstream union groups.
Following the dismissal of hundreds of employees, the Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) became embroiled in a major dispute.
The union alleged that Dangote violated labor rights and discriminated against local employees by firing over 800 Nigerians who joined PENGASSAN, replacing them with foreign workers.
Nigeria's downstream oil industry was severely disrupted when the union retaliated by asking that the delivery of gas and crude oil to the $20 billion refinery be suspended.
They then launched a nationwide strike, which has garnered support from other downstream union groups.
By Chinedu Okafor, Business Insider Africa
Tuesday, September 30, 2025
Dangote’s meeting with the oil union in Nigeria on day one hits a brick wall
A delegation from the union held a meeting with the Dangote Refinery; however, the negotiation, which was put together by the government around 4. PM on Monday was reportedly unfruitful.
Mohammed Dingyadi, the Minister of Labor and Employment, and Nkiruka Onyejeocha, the Minister of State for Labor and Employment, were part of the nine-hour-long dialogue, which lasted until early Tuesday morning.
Despite the lengthy negotiations, the Dangote Refinery and PENGASSAN were unable to reach a mutual agreement, as seen in the Punch.
After the meeting, the labor minister revealed that the delegations from both parties would meet again at 2:00 PM on Tuesday to break the stalemate.
Following reports of widespread dissatisfaction, the Federal Government called both sides to the bargaining table, concerned about the dispute's possible effects on the country's economy and energy security.
Mohammed Dingyadi, the Minister of Labor and Employment, and Nkiruka Onyejeocha, the Minister of State for Labor and Employment, were part of the nine-hour-long dialogue, which lasted until early Tuesday morning.
Despite the lengthy negotiations, the Dangote Refinery and PENGASSAN were unable to reach a mutual agreement, as seen in the Punch.
After the meeting, the labor minister revealed that the delegations from both parties would meet again at 2:00 PM on Tuesday to break the stalemate.
Following reports of widespread dissatisfaction, the Federal Government called both sides to the bargaining table, concerned about the dispute's possible effects on the country's economy and energy security.
Dangote’s dispute with PENGASSAN
The Dangote Refinery is currently locked in a major dispute with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over the firing of hundreds of workers.
The union claims that more than 800 Nigerians were fired after joining PENGASSAN and replaced with expats, accusing management of violating labor rights and discriminating against local employees.
In retaliation, the union requested a suspension in crude oil and gas delivery to the $20 billion refinery, causing severe disruptions in Nigeria’s downstream oil sector.
They followed up with a nationwide strike that has drawn the solidarity of other union groups in the downstream sector.
Currently, major oil institutions in Nigeria, including the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), have been shut down owing to PENGASSAN’s strike.
Dangote Group denies the allegations, maintaining that the dismissals were part of a reorganization to combat sabotage in particular refinery facilities, and condemning the supply disruption as "economic sabotage."
By Chinedu Okafor, Business Insider Africa
The Dangote Refinery is currently locked in a major dispute with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over the firing of hundreds of workers.
The union claims that more than 800 Nigerians were fired after joining PENGASSAN and replaced with expats, accusing management of violating labor rights and discriminating against local employees.
In retaliation, the union requested a suspension in crude oil and gas delivery to the $20 billion refinery, causing severe disruptions in Nigeria’s downstream oil sector.
They followed up with a nationwide strike that has drawn the solidarity of other union groups in the downstream sector.
Currently, major oil institutions in Nigeria, including the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), have been shut down owing to PENGASSAN’s strike.
Dangote Group denies the allegations, maintaining that the dismissals were part of a reorganization to combat sabotage in particular refinery facilities, and condemning the supply disruption as "economic sabotage."
By Chinedu Okafor, Business Insider Africa
Friday, September 19, 2025
Nigeria considers giving oil contract control to regulator
Nigeria is considering appointing the state regulator to take control of the country's existing oil contracts, rather than the state oil company, according to a draft legislative amendment seen by Reuters.
WHY IT'S IMPORTANT This could reshape how Africa’s top oil producer governs its petroleum sector, making the regulator both an umpire and a player, blurring the lines between regulation and participation and raising concern over potential conflicts of interest.
It also raises corporate governance concerns because it removes the power of state company NNPC's board to approve its budget and formulate strategy.
CONTEXT The law that would be amended is the 2021 Petroleum Industry Act (PIA), which empowered NNPC to represent Nigeria's interests in a variety of commercial oil contracts. The amendment would transfer that role to the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).
A letter from the Attorney General to the minister in charge of gas, seen by Reuters, said the amendment was necessary because "some provisions of the PIA have created structural and legal channels through which substantial revenues of the Federation are being diverted away from the Federation account".
"The observed decline in net oil revenue inflows is largely attributable to statutory leakages and opaque deductions under the current PIA architecture," said Lateef Fagbemi, Nigeria's attorney general and minister of justice.
By Isaac Anyaogu, Reuters
WHY IT'S IMPORTANT This could reshape how Africa’s top oil producer governs its petroleum sector, making the regulator both an umpire and a player, blurring the lines between regulation and participation and raising concern over potential conflicts of interest.
It also raises corporate governance concerns because it removes the power of state company NNPC's board to approve its budget and formulate strategy.
CONTEXT The law that would be amended is the 2021 Petroleum Industry Act (PIA), which empowered NNPC to represent Nigeria's interests in a variety of commercial oil contracts. The amendment would transfer that role to the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).
A letter from the Attorney General to the minister in charge of gas, seen by Reuters, said the amendment was necessary because "some provisions of the PIA have created structural and legal channels through which substantial revenues of the Federation are being diverted away from the Federation account".
KEY QUOTE
"The observed decline in net oil revenue inflows is largely attributable to statutory leakages and opaque deductions under the current PIA architecture," said Lateef Fagbemi, Nigeria's attorney general and minister of justice.
Tuesday, August 5, 2025
Video - Revived railway in Nigeria’s Plateau State eases commuter costs
In Nigeria’s north-central Plateau State, a refurbished intra-city rail line is providing relief to residents grappling with soaring fuel prices following the 2023 petrol subsidy removal. Launched by local authorities, the revitalized rail system offers affordable commuting options, boosting mobility and supporting the local economy.
Nigeria's oil production tops 1.8 million barrels per day in July
Nigeria's oil production surpassed 1.8 million barrels per day (bpd) last month, with current average output at 1.78 million bpd, Gbenga Komolafe, chief executive of the Nigerian Upstream Petroleum Regulatory Commission, said at a conference on Monday.
The West African country, one of Africa's largest oil producers, relies on crude oil for nearly two-thirds of government revenue and over 80% of foreign currency earnings, making production gains critical for stabilising its economy.
However, oil theft has curtailed output and strained public finances in recent years.
The West African country, one of Africa's largest oil producers, relies on crude oil for nearly two-thirds of government revenue and over 80% of foreign currency earnings, making production gains critical for stabilising its economy.
However, oil theft has curtailed output and strained public finances in recent years.
Wednesday, July 30, 2025
Video - Nigeria’s oil sector faces crisis amid underperformance
The Nigerian Economic Summit Group warns that aging infrastructure, oil theft, and pipeline vandalism are crippling Nigeria’s oil and gas sector, threatening vital government revenues.
Importers undercut Africa’s richest man as fuel prices in Nigeria get more competitive
This time, it is not the refinery that is driving the market, but rather the marketers who are lowering prices.
According to recent investigations by The Punch, numerous filling stations are now selling fuel for less than N860 per litre, which is lower than prices charged by Dangote-linked marketers such as MRS, Heyden, and others in Lagos and Ogun States, which range from N865 to N875.
SGR, a filling station in Ogun State, reportedly reduced its pump price to N847 per litre on Tuesday.
The true game changer, however, is in the ex-depot market.
Importers like Aiteo and Menj have reduced their depot rates to N815 per litre, which is lower than the N820 presently offered by the Dangote refinery.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, stated that the importers continue to evaluate lower prices.
“Depot owners are dropping their petrol prices. Some of them are selling N815, some are selling N817, while Dangote is selling N820. NNPC is still selling at N825; it has not dropped its prices yet,” he stated.
He also touched on the subject of fuel importation, suggesting that President Bola Tinubu should not to adhere to demands to outlaw the import of petroleum, calling this the beauty of market liberalization.
“This is the beauty of the liberalization of the market. That is why we opined that the President should not ban anybody from importing petroleum products,” he stated.
Nobody should be stopped from bringing in petroleum products. That is the beauty of opening up the market. Implementation and local refining will checkmate unfair pricing. As an indigenous country, you must refine to ensure that you have the best price,” he added.
The decision to cut fuel prices came just a few days after Dangote urged the country’s current administration to ban the importation of fuel.
Speaking at the Global Commodity Insights Conference in Abuja, presented by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in collaboration with S&P Global Insights, Dangote said unequivocally that petroleum products should be listed on the list of prohibited imports.
“The Nigeria First policy announced by His Excellency, President Bola Tinubu, should apply to the petroleum product sector and all other sectors,” the Nigerian billionaire stated.
According to recent investigations by The Punch, numerous filling stations are now selling fuel for less than N860 per litre, which is lower than prices charged by Dangote-linked marketers such as MRS, Heyden, and others in Lagos and Ogun States, which range from N865 to N875.
SGR, a filling station in Ogun State, reportedly reduced its pump price to N847 per litre on Tuesday.
The true game changer, however, is in the ex-depot market.
Importers like Aiteo and Menj have reduced their depot rates to N815 per litre, which is lower than the N820 presently offered by the Dangote refinery.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, stated that the importers continue to evaluate lower prices.
“Depot owners are dropping their petrol prices. Some of them are selling N815, some are selling N817, while Dangote is selling N820. NNPC is still selling at N825; it has not dropped its prices yet,” he stated.
He also touched on the subject of fuel importation, suggesting that President Bola Tinubu should not to adhere to demands to outlaw the import of petroleum, calling this the beauty of market liberalization.
“This is the beauty of the liberalization of the market. That is why we opined that the President should not ban anybody from importing petroleum products,” he stated.
Nobody should be stopped from bringing in petroleum products. That is the beauty of opening up the market. Implementation and local refining will checkmate unfair pricing. As an indigenous country, you must refine to ensure that you have the best price,” he added.
The decision to cut fuel prices came just a few days after Dangote urged the country’s current administration to ban the importation of fuel.
Speaking at the Global Commodity Insights Conference in Abuja, presented by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in collaboration with S&P Global Insights, Dangote said unequivocally that petroleum products should be listed on the list of prohibited imports.
“The Nigeria First policy announced by His Excellency, President Bola Tinubu, should apply to the petroleum product sector and all other sectors,” the Nigerian billionaire stated.
Fuel price wars in Nigeria after the Israel-Iran conflict
Earlier this month, the Dangote Petroleum Refinery initiated the price competition by trimming its gantry price of Premium Motor Spirit (PMS) from N880 to N840 per litre, a 4.5% reduction aimed at providing relief to Nigerians grappling with high fuel costs.
Not long after, the refinery again slashed pricing, this time to N820.
These measures were considered noteworthy, especially given the refinery’s past price rises, which were partially motivated by geopolitical concerns in the Middle East, notably the war between Israel and Iran.
At the time, Dangote, along with NNPC and other marketers, retaliated by hiking petroleum prices. However, the refinery quickly flipped, lowering pricing to match the reality of the global oil supply chain.
This is hardly the first price war initiated in the sector.
Late last year and earlier this year, the Dangote Refinery and the NNPC engaged in a fierce battle for the larger shares of the fuel market.
At the height of the price cuts, fuel prices had gone from as high as N1200 per liter to N860, forcing the entire market to react, with some players highlighting the losses they had to endure.
Earlier this month, the Dangote Petroleum Refinery initiated the price competition by trimming its gantry price of Premium Motor Spirit (PMS) from N880 to N840 per litre, a 4.5% reduction aimed at providing relief to Nigerians grappling with high fuel costs.
Not long after, the refinery again slashed pricing, this time to N820.
These measures were considered noteworthy, especially given the refinery’s past price rises, which were partially motivated by geopolitical concerns in the Middle East, notably the war between Israel and Iran.
At the time, Dangote, along with NNPC and other marketers, retaliated by hiking petroleum prices. However, the refinery quickly flipped, lowering pricing to match the reality of the global oil supply chain.
This is hardly the first price war initiated in the sector.
Late last year and earlier this year, the Dangote Refinery and the NNPC engaged in a fierce battle for the larger shares of the fuel market.
At the height of the price cuts, fuel prices had gone from as high as N1200 per liter to N860, forcing the entire market to react, with some players highlighting the losses they had to endure.
By Chinedu Okafor, Business Insider Africa
Monday, July 28, 2025
Dangote Demands Fuel Import Ban to Protect Nigeria’s Refining Future
The owner of the biggest refinery in Africa, Aliko Dangote, has urged the government to ban the import of fuels in line with its “Nigeria First” policy.
“The Nigeria First policy announced by His Excellency, President Bola Tinubu, should apply to the petroleum product sector and all other sectors,” Dangote said, as quoted by local media at an industry event, referring to the initiative launched earlier this year that bans government agencies from buying foreign goods if the same goods are available locally.Dangote went on to say that a lot of the imported fuel in Nigeria was of subpar quality that would not be allowed in other fuel markets.
“We are now facing increased dumping of cheap, often toxic petroleum products, some of which are blended to substandard levels that would never be allowed in Europe or North America,” Nigeria’s richest man said. Dangote also said that some of the fuels that enter Nigeria are produced with discounted Russian oil, which makes them cheaper than local fuels, which is unfair to local refiners.
The Dangote refinery, with a total capacity of 650,000 barrels daily and a price tag of $20 billion, was built to reduce Nigeria’s 100% reliance on imported fuels. The refinery began operation in 2024 and has been ramping up since then. In an interesting twist, this ramp-up has seen a temporary rise in U.S. crude oil exports to Nigeria in the first quarter of this year as domestic demand declined on refinery maintenance, making the oil more affordable for Nigerian buyers.
Any imports, however, are a threat to the Dangote facility, whose owner has an ambition to one day supply all of the fuels consumed domestically. There might even be some left to export, per the plans. Indeed, according to Dangote, Nigeria is currently a net exporter of fuels, with 1.35 billion litres of gasoline exported over the last 50 days.
By Irina Slav, Oilprice
Friday, July 25, 2025
Video - Nigeria eyes regional role as refined fuel hub
Nigeria’s oil minister, Heineken Lokpobiri, reaffirmed the country’s ambition to become a regional hub for refined petroleum products. Despite being a major crude producer, Nigeria still imports over 70 percent of its fuel, but officials say scaling up local refining and regional collaboration could help stabilize pump prices across West Africa.
Monday, July 21, 2025
Video - Dangote refinery to provide free fuel distribution to Nigeria’s independent retailers
The refinery will deliver fuel directly to consumers and independent retailers nationwide at no logistics cost, aiming to slash prices and challenge established fuel marketers.
Friday, July 11, 2025
Billions wasted on broken refineries - Africa's richest man tells his side of the story
He did this at his own oil refinery, where he gave members of the Global CEO Africa from the Lagos Business School a tour of the facility while highlighting the ludicrous amount already spent on reviving the state-owned refineries.
Dangote specified that his refinery, which he initiated after the country's 16th head of state, the late President Umar Yar'adua's cancelled his plans to acquire government refineries, now produces more than 50% of its output in the form of Premium Motor Spirit (petrol), while even government refineries only devote 22% of their output to this product.
“The refineries that we bought before, which were owned by Nigeria, were doing about 22 per cent of PMS. We bought the refineries in January 2007. Then we had to return them to the government because there was a change of government,” he stated.
“And the managing director at that time convinced Yar’adua that the refineries would work. They said they just gave them to us as a parting gift or so.
And as of today, they have spent about $18bn on those refineries, and they are still not working. And I don’t think, and I doubt very much if they will work,” he added.
The Nigerian billionaire emphasized that the refineries' turnaround maintenance was similar to attempting to update a car that was manufactured forty years ago, even though technology had since evolved, as reported by the Punch.
“(The turnaround maintenance) is like you trying to modernize a car that was built 40 years ago, when technology and everything have changed.
Even if you change the engine, the body will not be able to take the shock of that new technology engine,” he elaborated.
Dangote's statement corroborated the claims of Yar’adua predecessor, former president Olusegun Obasanjo last year on the refineries, two of which were closed when Mele Kyari, the former NNPC Group Managing Director, declared them open.
The NNPC understood it was unable to handle the refineries, according to Obasanjo, who further stated that when he asked foreign oil corporations like Shell to run the facilities, they refused.
Aliko Dangote and other Nigerians had invested $750 million to gain control of the refineries, but his successor Yar'adua annulled the agreement, according to Obasanjo.
What Obasanjo had said
“So, why do we do this kind of thing to ourselves? NNPC knew that they could not do it, but they knew they could eat and carry on with the corruption that was going on in NNPC. When people were there to do it, they put pressure. In a civilized society, those people should be in jail,”
Obasanjo had stated. Again, in January, Obasanjo said, “I was told not too long ago that since that time, more than $2bn have been squandered on the refineries and they still will not work.
“If a company like Shell tells me what they told me, I will believe them. If anybody tells you now that it (the refinery) is working, why are they now with Aliko (Dangote)? And Aliko will make his refinery work; not only make it work, he will make it deliver.”
“So, why do we do this kind of thing to ourselves? NNPC knew that they could not do it, but they knew they could eat and carry on with the corruption that was going on in NNPC. When people were there to do it, they put pressure. In a civilized society, those people should be in jail,”
Obasanjo had stated. Again, in January, Obasanjo said, “I was told not too long ago that since that time, more than $2bn have been squandered on the refineries and they still will not work.
“If a company like Shell tells me what they told me, I will believe them. If anybody tells you now that it (the refinery) is working, why are they now with Aliko (Dangote)? And Aliko will make his refinery work; not only make it work, he will make it deliver.”
By Chinedu Okafor, Business Insider Africa
Thursday, July 10, 2025
We’ve uncovered massive fraud in Nigeria’s oil and gas industry – EFCC
The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, said the agency conducted a preliminary probe into Nigeria’s oil and gas sector and discovered ‘mind-boggling’ corruption cases.
Mr Olukoyede disclosed this on Wednesday during the third day of the National Conference on Public Accounts and Fiscal Governance, organised by the Public Accounts Committees of the Senate and House of Representatives in Abuja.
“In the last three weeks, we launched a commission-wide investigation into the extractive industry, particularly the oil and gas sector. What we have discovered is mind-boggling. And we have only just opened the books. If this is what we’re seeing at the surface, imagine what lies beneath,” he said.
The EFCC chairman argued that the corruption in Nigeria’s oil and gas sector directly contributes to rising insecurity across the country.
“There is a very strong connection between the mismanagement of our resources and insecurity. When you look at banditry, kidnapping, terrorism, trace it back, and you will find a pattern of corrupt practices and diversion of funds meant to improve people’s lives,” he stated.
PREMIUM TIMES reports that this is not the first time corruption in Nigeria’s oil and gas sector has been uncovered. The Nigerian National Petroleum Company Limited (NNPC Ltd), the key player in the country’s oil industry, is currently facing scrutiny from the National Assembly.
In June, the Senate Committee on Public Accounts queried the company over N210 trillion allegedly unaccounted for in its audited financial statements between 2017 and 2023.
During a hearing, the committee demanded detailed explanations from the NNPC’s Chief Financial Officer, Adedapo Segun, and other top officials, directing them to provide a detailed explanation regarding the whereabouts of the funds within seven days.
However, the agency failed to meet the initial seven-day deadline because its top officials were attending a retreat at the time and requested an additional 20 days to review relevant documents. The committee rejected the request and issued another 10-working-day ultimatum, which will expire tomorrow. As of now, it remains unclear whether the NNPC will comply.
Culture of impunity and poor oversight
The EFCC boss condemned the culture of impunity in the country, noting that individuals under investigation for financial crimes are often celebrated in public spaces.
“We see people who have stolen our money. We have shown you evidence. We’ve traced where the money went. We are already in court. Yet, they’re being celebrated all over the place. Does that show we’re serious?” he asked.
He also questioned the National Assembly’s ability to effectively oversee more than 700 federal Ministries, Departments, and Agencies (MDAs), many of which operate without adequate internal controls.
“How many books can you check? How many files will you read? We need to build strong internal compliance systems that can proactively checkmate corruption.
“That money could have built hospitals, schools, and supported millions of Nigerian students from primary to tertiary level,” he said. “Nigeria has no business borrowing to survive, given the natural and mineral wealth it possesses.”
He urged political leaders to put aside ethnic and party divisions and unite against the scourge of corruption.
“If we execute even 60 per cent of our capital budget efficiently between 2025 and 2026, we will empower small and medium-scale industries. We’ll build infrastructure. We’ll be fine,” he said.
“What we need is transparency in revenue generation and accountability in public expenditure.”
By Abdulqudus Ogundapo, Premium Times
Mr Olukoyede disclosed this on Wednesday during the third day of the National Conference on Public Accounts and Fiscal Governance, organised by the Public Accounts Committees of the Senate and House of Representatives in Abuja.
“In the last three weeks, we launched a commission-wide investigation into the extractive industry, particularly the oil and gas sector. What we have discovered is mind-boggling. And we have only just opened the books. If this is what we’re seeing at the surface, imagine what lies beneath,” he said.
The EFCC chairman argued that the corruption in Nigeria’s oil and gas sector directly contributes to rising insecurity across the country.
“There is a very strong connection between the mismanagement of our resources and insecurity. When you look at banditry, kidnapping, terrorism, trace it back, and you will find a pattern of corrupt practices and diversion of funds meant to improve people’s lives,” he stated.
PREMIUM TIMES reports that this is not the first time corruption in Nigeria’s oil and gas sector has been uncovered. The Nigerian National Petroleum Company Limited (NNPC Ltd), the key player in the country’s oil industry, is currently facing scrutiny from the National Assembly.
In June, the Senate Committee on Public Accounts queried the company over N210 trillion allegedly unaccounted for in its audited financial statements between 2017 and 2023.
During a hearing, the committee demanded detailed explanations from the NNPC’s Chief Financial Officer, Adedapo Segun, and other top officials, directing them to provide a detailed explanation regarding the whereabouts of the funds within seven days.
However, the agency failed to meet the initial seven-day deadline because its top officials were attending a retreat at the time and requested an additional 20 days to review relevant documents. The committee rejected the request and issued another 10-working-day ultimatum, which will expire tomorrow. As of now, it remains unclear whether the NNPC will comply.
Bill to criminalise unexplained wealth
The EFCC chairman called on members of the National Assembly to pass a bill that would criminalise unexplained wealth as part of the strategy to reduce fraudulent financial practices by Nigeria’s public officers,
“Help me pass the Unexplained Wealth Bill. I’ve been begging for the past year. This same bill was thrown out in the last Assembly. If we don’t make individuals accountable for what they own, we’ll never get it right,” he added.
Mr Olukoyede mentioned a scenario involving a civil servant who had accumulated five properties in Maitama and Asokoro, areas which are considered as part of the most expensive neighbourhoods in Abuja.
“Someone has worked in a ministry for 20 years. We calculate their entire salary and allowances. Then we find five properties—two in Maitama, three in Asokoro. Yet we’re told to go and prove a predicate offence before we can act. That is absurd.”
The EFCC chairman called on members of the National Assembly to pass a bill that would criminalise unexplained wealth as part of the strategy to reduce fraudulent financial practices by Nigeria’s public officers,
“Help me pass the Unexplained Wealth Bill. I’ve been begging for the past year. This same bill was thrown out in the last Assembly. If we don’t make individuals accountable for what they own, we’ll never get it right,” he added.
Mr Olukoyede mentioned a scenario involving a civil servant who had accumulated five properties in Maitama and Asokoro, areas which are considered as part of the most expensive neighbourhoods in Abuja.
“Someone has worked in a ministry for 20 years. We calculate their entire salary and allowances. Then we find five properties—two in Maitama, three in Asokoro. Yet we’re told to go and prove a predicate offence before we can act. That is absurd.”
EFCC tracks illicit assets abroad
Mr Olukoyede also announced that the commission is expanding its asset recovery drive to other countries, noting that several assets acquired through illicit means by Nigerians have been traced overseas.
“Last month alone, I visited four or five countries chasing Nigeria’s stolen assets. An ambassador even told me they discovered an estate in Iceland owned by a Nigerian. Iceland of all places!” he exclaimed.
Despite these efforts, he acknowledged the limits of what the EFCC can achieve in recovering stolen funds.
“There is no amount of capacity I can build, no level of effort I can put in, that will enable me to recover even half of what has been stolen from Nigeria, because the custodians of those assets in foreign countries don’t want to let go. Under international law, the custodian of stolen assets is just as guilty as the original thief,” he said.
Mr Olukoyede also announced that the commission is expanding its asset recovery drive to other countries, noting that several assets acquired through illicit means by Nigerians have been traced overseas.
“Last month alone, I visited four or five countries chasing Nigeria’s stolen assets. An ambassador even told me they discovered an estate in Iceland owned by a Nigerian. Iceland of all places!” he exclaimed.
Despite these efforts, he acknowledged the limits of what the EFCC can achieve in recovering stolen funds.
“There is no amount of capacity I can build, no level of effort I can put in, that will enable me to recover even half of what has been stolen from Nigeria, because the custodians of those assets in foreign countries don’t want to let go. Under international law, the custodian of stolen assets is just as guilty as the original thief,” he said.
Culture of impunity and poor oversight
The EFCC boss condemned the culture of impunity in the country, noting that individuals under investigation for financial crimes are often celebrated in public spaces.
“We see people who have stolen our money. We have shown you evidence. We’ve traced where the money went. We are already in court. Yet, they’re being celebrated all over the place. Does that show we’re serious?” he asked.
He also questioned the National Assembly’s ability to effectively oversee more than 700 federal Ministries, Departments, and Agencies (MDAs), many of which operate without adequate internal controls.
“How many books can you check? How many files will you read? We need to build strong internal compliance systems that can proactively checkmate corruption.
“That money could have built hospitals, schools, and supported millions of Nigerian students from primary to tertiary level,” he said. “Nigeria has no business borrowing to survive, given the natural and mineral wealth it possesses.”
He urged political leaders to put aside ethnic and party divisions and unite against the scourge of corruption.
“If we execute even 60 per cent of our capital budget efficiently between 2025 and 2026, we will empower small and medium-scale industries. We’ll build infrastructure. We’ll be fine,” he said.
“What we need is transparency in revenue generation and accountability in public expenditure.”
Tuesday, June 17, 2025
Fears of a Dangote monopoly spurs backlash against his fuel distribution plan
With free logistics provided as a sweetener to improve distribution, the company declared that it would start supplying Premium Motor Spirit (PMS) and diesel to a broad spectrum of customers, including fuel marketers, gasoline dealers, manufacturers, telecom companies, aviation companies, and other large users.
However, the industry's biggest players have swiftly criticized and opposed what was seen as a game-changer.The Products Retail Outlets Owners Association (PETROAN), which represents the interests of retail fuel businesses across the country, has publicly opposed the proposal, as reported by the Punch.
The organization claims that Dangote's desire to function as both a producer and a distributor of petroleum products is an overreach that might destabilize the sector and result in significant job losses.
What PETROAN said
“The company may leverage its market power to fix prices, limit competition, and exploit consumers, much like it has done in other sectors,” the group disclosed via a statement.
“This could lead to a massive shutdown of filling stations across Nigeria, resulting in widespread job losses. The introduction of 4,000 brand-new Compressed Natural Gas-powered tankers by the Dangote refinery poses a significant threat to the livelihoods of thousands of truck drivers and owners,” the statement added.
This is not the first time that concerns have been voiced about the refinery's expanding impact. PETROAN cited similar tendencies in other industries where Dangote Group has a significant presence, accusing the conglomerate of abusing its enormous market clout to dominate and suppress competition.
There have been claims that allowing Dangote to dominate both refining and retailing risks distorting pricing processes and reducing transparency in Nigeria's petroleum industry, which is already plagued by inefficiency, opacity, and regional inequities.
PETROAN is now urging the Nigerian government to intervene and regulate the refinery's role in fuel distribution to prevent market exploitation and maintain a level playing field.
“It is obvious that Dangote plans to gain full monopoly of the downstream sector, which would enable the company to exploit Nigeria’s petroleum consumers. This could lead to higher prices, reduced competition, and decreased economic efficiency.
“The National President of PETROAN, Dr Billy Gillis-Harry, calls on the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Minister of State for Petroleum Resources to put in place price control mechanisms to prevent any form of monopoly,” the statement read further.
“The company may leverage its market power to fix prices, limit competition, and exploit consumers, much like it has done in other sectors,” the group disclosed via a statement.
“This could lead to a massive shutdown of filling stations across Nigeria, resulting in widespread job losses. The introduction of 4,000 brand-new Compressed Natural Gas-powered tankers by the Dangote refinery poses a significant threat to the livelihoods of thousands of truck drivers and owners,” the statement added.
This is not the first time that concerns have been voiced about the refinery's expanding impact. PETROAN cited similar tendencies in other industries where Dangote Group has a significant presence, accusing the conglomerate of abusing its enormous market clout to dominate and suppress competition.
There have been claims that allowing Dangote to dominate both refining and retailing risks distorting pricing processes and reducing transparency in Nigeria's petroleum industry, which is already plagued by inefficiency, opacity, and regional inequities.
PETROAN is now urging the Nigerian government to intervene and regulate the refinery's role in fuel distribution to prevent market exploitation and maintain a level playing field.
“It is obvious that Dangote plans to gain full monopoly of the downstream sector, which would enable the company to exploit Nigeria’s petroleum consumers. This could lead to higher prices, reduced competition, and decreased economic efficiency.
“The National President of PETROAN, Dr Billy Gillis-Harry, calls on the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Minister of State for Petroleum Resources to put in place price control mechanisms to prevent any form of monopoly,” the statement read further.
By Chinedu Okafor, Business Insider Africa
Tuesday, June 10, 2025
Dangote hints at major shake-up in Nigeria’s oil sector after Tinubu’s refinery visit
Speaking to journalists after President Bola Tinubu’s recent visit to the $20 billion refinery complex in Lekki, Lagos, Dangote described the coming change as a “major shakedown” that would impact the entire country.
While he did not provide full details, Dangote made it clear that this upcoming move would go beyond mere reductions in fuel prices.
Instead, he said it would involve a “total overhaul of the downstream sector,” indicating deep structural changes in how refined petroleum products are produced, distributed, and sold across Nigeria.
“Now that the President has visited and he has given us additional energy, we will inform you. You will hear from us soon, and that will be one of the major shakedowns in the entire country. It is not the reduction of price; it will be the total overhaul of the downstream,” Dangote said as quoted by The Punch
The comments come as the refinery, Africa’s largest, begins ramping up production to meet local fuel demands and reduce Nigeria’s historic dependence on imported petroleum products.
While he did not provide full details, Dangote made it clear that this upcoming move would go beyond mere reductions in fuel prices.
Instead, he said it would involve a “total overhaul of the downstream sector,” indicating deep structural changes in how refined petroleum products are produced, distributed, and sold across Nigeria.
“Now that the President has visited and he has given us additional energy, we will inform you. You will hear from us soon, and that will be one of the major shakedowns in the entire country. It is not the reduction of price; it will be the total overhaul of the downstream,” Dangote said as quoted by The Punch
The comments come as the refinery, Africa’s largest, begins ramping up production to meet local fuel demands and reduce Nigeria’s historic dependence on imported petroleum products.
Dangote's impact on Nigeria's downstream sector
Nigeria’s downstream petroleum sector, responsible for refining, distributing, and retailing petroleum products, continues to face significant challenges that have hindered its growth, efficiency, and contribution to the broader economy.
Key issues such as limited refining capacity, persistent fuel subsidies, price volatility in an increasingly deregulated market, infrastructure deficits, rampant oil theft and smuggling, and ongoing foreign exchange constraints have collectively placed the sector in a precarious position
Analysts suggest that a full-scale shake-up of the downstream sector which has long been plagued by inefficiency, subsidy distortions, and opaque pricing mechanisms could redefine energy economics in Africa’s largest oil producer.
The Dangote Petroleum Refinery, a $20 billion mega-project located in Lekki, Lagos, is already reshaping Nigeria’s downstream oil sector even before reaching full operational capacity.
Traditionally dependent on fuel imports despite being a major crude oil producer, Nigeria’s downstream sector has long suffered from inefficiencies, under-capacity, and a crippling subsidy regime.
For years, efforts to revive state-owned refineries under the Nigerian National Petroleum Company (NNPC) yielded little success.
The Dangote Refinery is now positioned as a transformative force within this space, both economically and strategically.
President Tinubu’s visit to the refinery is widely seen as a sign of federal support for Dangote’s ambitious energy agenda, especially as the administration pushes for reforms under its post-subsidy policy era.
Industry stakeholders are now watching closely for what could be one of the most consequential shifts in Nigeria’s petroleum sector in decades.
Nigeria’s downstream petroleum sector, responsible for refining, distributing, and retailing petroleum products, continues to face significant challenges that have hindered its growth, efficiency, and contribution to the broader economy.
Key issues such as limited refining capacity, persistent fuel subsidies, price volatility in an increasingly deregulated market, infrastructure deficits, rampant oil theft and smuggling, and ongoing foreign exchange constraints have collectively placed the sector in a precarious position
Analysts suggest that a full-scale shake-up of the downstream sector which has long been plagued by inefficiency, subsidy distortions, and opaque pricing mechanisms could redefine energy economics in Africa’s largest oil producer.
The Dangote Petroleum Refinery, a $20 billion mega-project located in Lekki, Lagos, is already reshaping Nigeria’s downstream oil sector even before reaching full operational capacity.
Traditionally dependent on fuel imports despite being a major crude oil producer, Nigeria’s downstream sector has long suffered from inefficiencies, under-capacity, and a crippling subsidy regime.
For years, efforts to revive state-owned refineries under the Nigerian National Petroleum Company (NNPC) yielded little success.
The Dangote Refinery is now positioned as a transformative force within this space, both economically and strategically.
President Tinubu’s visit to the refinery is widely seen as a sign of federal support for Dangote’s ambitious energy agenda, especially as the administration pushes for reforms under its post-subsidy policy era.
Industry stakeholders are now watching closely for what could be one of the most consequential shifts in Nigeria’s petroleum sector in decades.
By Solomon Ekanem, Business Insider Africa
Friday, May 30, 2025
Nigeria offers oil tax relief for cost-cutting measures
Nigerian President Bola Tinubu has signed an executive order introducing a performance-driven framework for oil sector operators, designed to link tax incentives directly to verifiable cost savings. Under the new Upstream Petroleum Operations Cost Efficiency Incentives Order 2025, operators who successfully implement industry-standard cost reductions in onshore, shallow water, and deep offshore fields will qualify for defined tax relief. These tax credits will be capped at 20% of an operator's annual tax liability.
"This Order is a signal to the world: we are building an oil and gas sector that is efficient, competitive, and works for all Nigerians," Tinubu said in a statement. "It is about securing our future, creating jobs, and making every barrel count."
Analysts say success will largely be dependent on implementation. "President Tinubu referred in the announcement to the importance of alignment between government agencies. Succeed there and this could be highly significant towards improving Nigeria's investment appeal," said Clementine Wallop, director for sub-Saharan Africa at Horizon Engage.
This order is a key component of the government's ongoing reforms aimed at boosting competitiveness within the sector.
Last year, Nigeria offered a 25% gas utilisation investment allowance for equipment and plant for new and ongoing projects, and began streamlining contracting processes as part of commercial enablers to make offshore drilling more attractive.
These incentives, while they haven't yielded investments in a new field, have spurred a few producers to return to existing fields.
By Isaac Anyaogu, Reuters
"This Order is a signal to the world: we are building an oil and gas sector that is efficient, competitive, and works for all Nigerians," Tinubu said in a statement. "It is about securing our future, creating jobs, and making every barrel count."
Analysts say success will largely be dependent on implementation. "President Tinubu referred in the announcement to the importance of alignment between government agencies. Succeed there and this could be highly significant towards improving Nigeria's investment appeal," said Clementine Wallop, director for sub-Saharan Africa at Horizon Engage.
This order is a key component of the government's ongoing reforms aimed at boosting competitiveness within the sector.
Last year, Nigeria offered a 25% gas utilisation investment allowance for equipment and plant for new and ongoing projects, and began streamlining contracting processes as part of commercial enablers to make offshore drilling more attractive.
These incentives, while they haven't yielded investments in a new field, have spurred a few producers to return to existing fields.
Thursday, May 22, 2025
Dangote could have made $120b from big tech, but he chose to build for Nigeria
Speaking at the opening of the Taraba International Investment Summit 2025 in Jalingo, Vice President Kashim Shettima, who represented President Tinubu, stressed that business mogul Aliko Dangote could have chosen to channel his resources into lucrative international companies like Microsoft, Amazon, or Google.
“I want to celebrate the greatest black man in the last 300 years, who single-handedly established the largest single train refinery in the world..."
“He started this project in 2007/2008. If he had invested the $19 billion that it took him to set up the Dangote Refinery in Microsoft, in Amazon, in Google, he is going to be worth $120 billion now,"
“But he decided to invest in his own country. Alhaji Aliko Dangote, we are mightily proud of you,” he said.
He emphasised that Nigeria’s economic transformation must start at the grassroots level and be powered by locally sourced resources.
Dangote Refinery
The Dangote Refinery, the largest single-train oil refinery globally and the biggest in Africa, marks Aliko Dangote’s most ambitious project yet. Dangote’s net worth doubled to $28 billion last year following the launch of the Refinery. This milestone not only boosted his wealth from about $13 billion but also solidified his position as Africa’s richest man.
Designed to process 650,000 barrels of crude oil per day, the refinery is expected to significantly reduce Nigeria’s dependence on imported refined petroleum products, a long-standing issue in Africa’s biggest oil-producing nation.
Although delayed for several years, the Dangote Refinery, Africa’s largest, built by the continent’s richest man, Aliko Dangote, officially began production of diesel, naphtha, and jet fuel in January last year, followed by petrol production in September.
The massive facility surpasses the capacity of Europe’s 10 largest refineries. According to the Organisation of the Petroleum Exporting Countries (OPEC), Dangote's oil push in Nigeria is already starting to disrupt the European oil market.
Economists suggest that the Dangote refinery could potentially end the long-standing gasoline trade from Europe to Africa, which is valued at $17 billion annually.
The Dangote Refinery, the largest single-train oil refinery globally and the biggest in Africa, marks Aliko Dangote’s most ambitious project yet. Dangote’s net worth doubled to $28 billion last year following the launch of the Refinery. This milestone not only boosted his wealth from about $13 billion but also solidified his position as Africa’s richest man.
Designed to process 650,000 barrels of crude oil per day, the refinery is expected to significantly reduce Nigeria’s dependence on imported refined petroleum products, a long-standing issue in Africa’s biggest oil-producing nation.
Although delayed for several years, the Dangote Refinery, Africa’s largest, built by the continent’s richest man, Aliko Dangote, officially began production of diesel, naphtha, and jet fuel in January last year, followed by petrol production in September.
The massive facility surpasses the capacity of Europe’s 10 largest refineries. According to the Organisation of the Petroleum Exporting Countries (OPEC), Dangote's oil push in Nigeria is already starting to disrupt the European oil market.
Economists suggest that the Dangote refinery could potentially end the long-standing gasoline trade from Europe to Africa, which is valued at $17 billion annually.
By Adekunle Agbetiloye, Business Insider Africa
Wednesday, May 21, 2025
U.S. court dismisses $58 million Nigeria lawsuit in victory for Shell
Law firm Haynes Boone defended The Shell Petroleum Development Company of Nigeria Limited (SPDC), now known as Renaissance Africa Energy Company (RAEC), against a $58 million lawsuit, securing a complete dismissal in the U.S. District Court for the Southern District of New York.
Nigerian contractor Forstech Technical Nigeria Limited sued SPDC under the Alien Tort Claims Act (Case: 1:24-cv-07629), claiming SPDC owed over $58 million in processing fees related to a contract between Forstech and the Bayelsa State government.
The court dismissed the suit for lack of personal jurisdiction. The court found that the claims, which focused entirely on conduct in Nigeria, lacked a sufficient connection to New York to establish jurisdiction.
Haynes Boone Associate Rebecca Schwarz led the litigation team and crafted the successful motion to dismiss. Litigation Partner Michael Mazzone and Appellate Partner Mark Trachtenberg provided additional support.
“We’re proud to have secured a clean dismissal for our client,” Schwarz said. “The court's analysis reinforces important jurisdictional boundaries that prevent U.S. courts from becoming a forum for every international business dispute.”
Nigerian contractor Forstech Technical Nigeria Limited sued SPDC under the Alien Tort Claims Act (Case: 1:24-cv-07629), claiming SPDC owed over $58 million in processing fees related to a contract between Forstech and the Bayelsa State government.
The court dismissed the suit for lack of personal jurisdiction. The court found that the claims, which focused entirely on conduct in Nigeria, lacked a sufficient connection to New York to establish jurisdiction.
Haynes Boone Associate Rebecca Schwarz led the litigation team and crafted the successful motion to dismiss. Litigation Partner Michael Mazzone and Appellate Partner Mark Trachtenberg provided additional support.
“We’re proud to have secured a clean dismissal for our client,” Schwarz said. “The court's analysis reinforces important jurisdictional boundaries that prevent U.S. courts from becoming a forum for every international business dispute.”
Tuesday, May 20, 2025
Nigeria seeks to boost cocoa exports as oil falters
Thirty-nine years later, the government is preparing for the launch of a new regulatory body. On 5 May agriculture minister Abubakar Kyari announced that President Bola Tinubu’s cabinet has approved a draft bill to create a National Cocoa Management Board that will have responsibility for regulating the industry, but without the power to fix prices.
“With this new framework, we will be competing directly with top global producers like Ghana and Côte d’Ivoire,” said Kyari.
For President Bola Tinubu’s government, this is a chance to boost the potential of an industry that has broken several price records in recent years, with prices rising 400% in three years to reach $12,000 per ton at point. The value of cocoa exports from Nigeria jumped more than sevenfold between 2023 and 2024 to 2.7 trillion naira ($1.7bn), driven by higher demand and naira depreciation. Cocoa thus offers Nigeria a viable opportunity to diversify away from faltering oil exports.
The Tinubu administration based its 2025 budget of 54.9 trillion naira on a daily oil output of 2.06m barrels of crude sold at $75 per barrel. While the year started with a January production of 1.53m barrels per day, it has remained below that number in the subsequent months, with prices closer to $60 a barrel. Thoughts are therefore turning to cocoa as a potential driver of export earnings.
Demands for better traceability
Though Nigerian cocoa farmers and the industry in general have enjoyed the freedom to set prices, Nigerian-origin cocoa has sometimes been sold at a discount due to quality inconsistency, an indicator of variable industry standards. But recent global developments demanding sustainable and ethical practices, particularly the introduction of the European Union Deforestation Regulation, made regulated standards a necessity.
The Regulation, passed by the European Parliament in 2023, requires all exporters of agricultural commodities to the EU to provide evidence that the crop is grown sustainably and is not causing deforestation. It requires that agricultural exports be traceable to where they are grown – and this requirement has made a regulator essential, according to Adeola Adegoke, president of the Cocoa Farmers Association of Nigeria. “The Nigerian cocoa industry cannot continue to be on autopilot,” said Adegoke. “There must be a deliberate plan to reposition it in order to regain the lost glory of the cocoa economy.” Nigeria slipped from its leadership in cocoa production as oil became the mainstay of the economy from the 1970s, and agricultural exports were sidelined by successive governments.
Though Nigerian cocoa farmers and the industry in general have enjoyed the freedom to set prices, Nigerian-origin cocoa has sometimes been sold at a discount due to quality inconsistency, an indicator of variable industry standards. But recent global developments demanding sustainable and ethical practices, particularly the introduction of the European Union Deforestation Regulation, made regulated standards a necessity.
The Regulation, passed by the European Parliament in 2023, requires all exporters of agricultural commodities to the EU to provide evidence that the crop is grown sustainably and is not causing deforestation. It requires that agricultural exports be traceable to where they are grown – and this requirement has made a regulator essential, according to Adeola Adegoke, president of the Cocoa Farmers Association of Nigeria. “The Nigerian cocoa industry cannot continue to be on autopilot,” said Adegoke. “There must be a deliberate plan to reposition it in order to regain the lost glory of the cocoa economy.” Nigeria slipped from its leadership in cocoa production as oil became the mainstay of the economy from the 1970s, and agricultural exports were sidelined by successive governments.
More support needed for farmers
In recent years, the trade has suffered from an absence of incentives and government support, especially in the years in which farmers were threatened by price volatility, said Adegoke. The major assignment of the board will be to fill that gap, he said.
The move toward a new board started with the establishment of the National Cocoa Management Committee in August 2022. Made up of industry stakeholders and officials of the agriculture ministry, its primary task was to devise measures for the revitalisation of cocoa as a major export commodity.
The committee identified significant challenges, such as difficulties in dealing with cocoa pests and diseases, a growing preponderance of ageing plantations and farmers, lack of finance and the absence of national regulation.
In the draft bill, the National Cocoa Management Committee will be converted into the National Cocoa Management Board to tackle the identified problems facing the industry.
In recent years, the trade has suffered from an absence of incentives and government support, especially in the years in which farmers were threatened by price volatility, said Adegoke. The major assignment of the board will be to fill that gap, he said.
The move toward a new board started with the establishment of the National Cocoa Management Committee in August 2022. Made up of industry stakeholders and officials of the agriculture ministry, its primary task was to devise measures for the revitalisation of cocoa as a major export commodity.
The committee identified significant challenges, such as difficulties in dealing with cocoa pests and diseases, a growing preponderance of ageing plantations and farmers, lack of finance and the absence of national regulation.
In the draft bill, the National Cocoa Management Committee will be converted into the National Cocoa Management Board to tackle the identified problems facing the industry.
High prices bring opportunities
The more than threefold increase in cocoa prices between 2023 and 2024 seems to have been a wake-up call for the government. Nigeria has ranked fifth in recent years among global cocoa producers, behind Côte d’Ivoire, Ghana, Ecuador and Cameroon. While the two top producers, Côte d’Ivoire and Ghana, suffered significant output shortfalls due to unfavourable weather, Nigeria, which had a better crop, lacked the output scale to make the most of the opportunity.
Still, the country produced more than 300,000 tons of the crop in the 2023-24 season. Some expect an even better harvest in the current season due to improved weather. The government is keen to capitalise on this.
Prices for cocoa futures have started retreating from their record levels, and were ranging between $7,844 and $8,415 per ton in March, according to a market assessment published on 11 April by the International Cocoa Organization (ICCO).
Weighing on the market were weakening demand and an expectation that most of the West African producers, who account for 70% of global production, will have a better season than the 2023-24 season. The current season is the first in three years in which the ICCO is expecting a production surplus. But it is unlikely to result in a wholesale reset of prices, given the vagaries of the supply chain.
Indeed, with hedge funds betting on cocoa futures and driving the record prices of recent years, younger people in Nigeria are beginning to see a future in cocoa farms. Some are establishing new farms and planting early-maturing varieties that yield pods within three years, according to officials at the Cocoa Association of Nigeria (CAN).
Yet, even while the government has been applauded for initiating the return of an industry board, some stakeholders have their misgivings.
The more than threefold increase in cocoa prices between 2023 and 2024 seems to have been a wake-up call for the government. Nigeria has ranked fifth in recent years among global cocoa producers, behind Côte d’Ivoire, Ghana, Ecuador and Cameroon. While the two top producers, Côte d’Ivoire and Ghana, suffered significant output shortfalls due to unfavourable weather, Nigeria, which had a better crop, lacked the output scale to make the most of the opportunity.
Still, the country produced more than 300,000 tons of the crop in the 2023-24 season. Some expect an even better harvest in the current season due to improved weather. The government is keen to capitalise on this.
Prices for cocoa futures have started retreating from their record levels, and were ranging between $7,844 and $8,415 per ton in March, according to a market assessment published on 11 April by the International Cocoa Organization (ICCO).
Weighing on the market were weakening demand and an expectation that most of the West African producers, who account for 70% of global production, will have a better season than the 2023-24 season. The current season is the first in three years in which the ICCO is expecting a production surplus. But it is unlikely to result in a wholesale reset of prices, given the vagaries of the supply chain.
Indeed, with hedge funds betting on cocoa futures and driving the record prices of recent years, younger people in Nigeria are beginning to see a future in cocoa farms. Some are establishing new farms and planting early-maturing varieties that yield pods within three years, according to officials at the Cocoa Association of Nigeria (CAN).
Yet, even while the government has been applauded for initiating the return of an industry board, some stakeholders have their misgivings.
Sayanna Riman, a cocoa farmer and a former president of the CAN, which groups farmers, buyers and processors, says that a board could lead to creeping government interference that ultimately may not be in the interest of farmers. What the industry needs, rather than an interfering body, Riman says, is more sensitivity to the challenges that farmers face and targeted support to help them make the most of the era of high prices. “What the cocoa industry needs is investments and more standardisation,” Riman concludes.
By Dulue Mbachu, African Business
Friday, May 16, 2025
Shell paid more taxes to Nigeria than anywhere else in 2024
Shell paid $5.34 billion to Nigeria in 2024, the highest amount it paid to any country that year. The payments, which include taxes and other charges, rose compared to the previous year, according to figures released Thursday as part of a UK legal disclosure.
The increase comes as Shell prepares to exit its onshore oil operations in Nigeria after decades marked by controversy.
While the company will continue its offshore production in Nigeria, it is withdrawing from the Niger Delta, a region known for high emissions and persistent environmental pollution concerns.
Since 2021, the company has been seeking to sell its Nigerian oil and gas assets, which have faced ongoing challenges such as oil spills and theft.
Shell says the move aligns with its broader strategy to streamline its portfolio and reach net-zero emissions by 2050, Bloomberg reported.
The increase comes as Shell prepares to exit its onshore oil operations in Nigeria after decades marked by controversy.
While the company will continue its offshore production in Nigeria, it is withdrawing from the Niger Delta, a region known for high emissions and persistent environmental pollution concerns.
Since 2021, the company has been seeking to sell its Nigerian oil and gas assets, which have faced ongoing challenges such as oil spills and theft.
Shell says the move aligns with its broader strategy to streamline its portfolio and reach net-zero emissions by 2050, Bloomberg reported.
Global tax contributions
Shell paid approximately $28.1 billion to governments worldwide in 2024 for taxes and other charges linked to its extractive operations, a nearly 5% drop from the previous year.
Nigeria remained the top recipient, followed by Oman, Brazil, and Norway, which collectively received around $11.7 billion.
In the UK, Shell received a $32 million refund from the government for decommissioning costs tied to the Brent field and other North Sea assets, a decrease from the $43 million refunded in 2023.
However, this figure only reflects charges related to extractive activities and does not capture Shell’s total UK tax bill. The company’s last disclosed payment to the UK government was approximately $6 billion in 2023, as reported at the end of 2024.
Despite the decline in payments, Shell reported full-year adjusted earnings of $23.7 billion in 2024, down roughly 17% from the previous year.
Shell paid approximately $28.1 billion to governments worldwide in 2024 for taxes and other charges linked to its extractive operations, a nearly 5% drop from the previous year.
Nigeria remained the top recipient, followed by Oman, Brazil, and Norway, which collectively received around $11.7 billion.
In the UK, Shell received a $32 million refund from the government for decommissioning costs tied to the Brent field and other North Sea assets, a decrease from the $43 million refunded in 2023.
However, this figure only reflects charges related to extractive activities and does not capture Shell’s total UK tax bill. The company’s last disclosed payment to the UK government was approximately $6 billion in 2023, as reported at the end of 2024.
Despite the decline in payments, Shell reported full-year adjusted earnings of $23.7 billion in 2024, down roughly 17% from the previous year.
By Adekunle Agbetiloye, Business Insider Africa
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