Friday, April 18, 2025

Nigeria cuts electricity subsidies by 35% after tariff hike

Nigeria has achieved a 35% reduction in electricity subsidies following a tariff increase implemented last year for some users, Power Minister Adebayo Adelabu said on Thursday, easing some pressure on public finances in Africa's most populous nation.

Nigeria's power sector is burdened by a failing grid, gas shortages, high debt and vandalism, leading to a reliance on expensive generators for many.

The country was spending nearly 200 billion naira ($125.01 million) monthly on electricity subsidies because existing tariffs were not commercially viable.

The government last year eliminated subsidies for the 15% of customers classified as heavier users, including households and businesses consuming larger amounts of electricity.

Adelabu told a press briefing in Abuja that this targeted tariff adjustment has yielded significant results, with "the market generating an additional 700 billion naira in revenue, reflecting a 70% increase".

This has helped alleviate the substantial financial strain on public finances, improve generation, and reduce the government's tariff shortfall from 3 trillion naira to 1.9 trillion naira.

But the power sector still faces deep-rooted challenges. The country has an installed capacity of 13,000 megawatts, but typically produces only about a third of that, exacerbating the reliance on costly alternatives.

This situation is compounded by state-controlled power tariffs that have historically been too low for distribution companies to cover their costs and pay generating companies, leading to ballooning debts within the sector.

Debt owed to power generating companies has reached 4 trillion naira ($2.50 billion), prompting threats of plant shutdowns.

Adelabu said there were plans underway to help ease the debt burden, with the government intending to pay half of the debt this year through budgetary allocations and promissory notes that companies can discount as needed.

By Isaac Anyaogu, Reuters

Nigerian navy navy shuts down seven illegal refining sites in Delta

In support of ongoing efforts to boost Nigeria’s daily crude oil production, Nigerian Navy personnel attached to Forward Operating Base (FOB) ESCRAVOS have continued to sustain the fight against crude oil theft, pipeline vandalism, and other acts of economic sabotage in the Niger Delta region.

Specifically, on 29 March 2025, personnel of FOB ESCRAVOS discovered and deactivated three illegal refining sites at Obodo Omadino, Warri South West Local Government Area of Delta State.

The sites contained approximately 1,070 litres of stolen crude oil and 960 litres of illegally refined Automotive Gas Oil (AGO), concealed in two ovens, 19 dug-out pits, and 18 polythene sacks.

Subsequently, on 11 April 2025, two additional illegal refining sites were uncovered and dismantled in the same location.

During this operation, about 2,500 litres of stolen crude oil and 1,450 litres of illegally refined AGO were discovered, stored in three ovens, 12 dug-out pits, and 20 polythene sacks.

Continuing this momentum, on 16 April 2025, another two illegal refining sites were located and destroyed at Obodo Omadino.

The sites held approximately 2,410 litres of stolen crude oil and 1,400 litres of illegally refined AGO, contained in three ovens, 19 dug-out pits, and 29 polythene sacks.

Cumulatively, the three operations led to the deactivation of seven illegal refining sites, with the seizure of about 5,980 litres of stolen crude oil and 3,810 litres of illegally refined AGO.

These materials were found across eight ovens, 50 dug-out pits, and 67 polythene sacks.

These successful operations, carried out based on credible intelligence and in support of Operation DELTA SANITY II, underscore the commitment of FOB ESCRAVOS to the strategic directives of the Chief of the Naval Staff, Vice Admiral E.I. Ogalla, Admiralty Medal, aimed at eradicating all forms of illegalities within Nigeria’s maritime environment.

Nigeria signs minerals pact with South Africa in diversification push

Nigeria and South Africa have signed an accord to boost cooperation in mining, Nigeria’s mines minister said on Thursday, highlighting Abuja’s push to diversify its economy away from oil.

Mines Minister Dele Alake said the two countries will partner on mining, including geological mapping using drones, share mineral data, and jointly explore agro and energy minerals in Nigeria.

Besides oil, Nigeria is also rich in gold, limestone, lithium, iron ore and zinc. Nigeria has around 23 mineral deposits in commercial quantities.

Nigeria is seeking to revamp a mining sector that has long been underdeveloped, contributing less than 1% to its gross domestic product.

South Africa’s established mining expertise makes it a key partner in this effort, Alake said.

Wednesday, April 16, 2025

Nigeria cuts petrol imports as local production rises

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the importation of premium motor spirit (PMS), also known as petrol, into Nigeria, reduced by 29.9 million litres in over eight months.Farouk Ahmed, chief executive officer (CEO), NMDPRA, spoke during a press briefing organised by the presidential communications team (PTC) at the State House in Abuja on Tuesday.
According to the NMDPRA CEO, the country’s daily petrol importation decreased from 44.6 million litres in August 2024 to 14.7 million litres as of April 13.
He attributed the drop in imports to increased contributions from local refineries.


Nigeria is making more of its own petrol

Nigeria is bringing in much less petrol from other countries because local refineries are making more. Daily imports dropped from 44.6 million litres last August to just 14.7 million litres by mid-April – that’s a huge decrease of 29.9 million litres.
At the same time, local petrol production has jumped by 670% – meaning Nigeria is now making about 7 times more of its own petrol than before. This big increase happened because the Port Harcourt Refinery started working again in November 2024, and small local refineries across the country are producing more.
Local refineries now make 26.2 million litres of petrol per day. This is a big change from August 2024, when they weren’t producing anything meaningful.

Even with fewer imports, Nigeria still has enough petrol. The government says the country needs about 50 million litres per day. The total supply (local production plus imports) has mostly stayed above this level, though it’s been dropping lately. In November 2024, supply reached 56 million litres per day, then 52.3 million litres in February 2025, followed by 51.5 million litres in March, and recently dropped to 40.9 million litres in early April 2025.

Mr. Ahmed called for everyone to help protect Nigeria’s oil and gas facilities. He said security agencies, political leaders, traditional rulers, young people, and oil companies all need to work together to keep these important assets safe.
“It takes all of us — government, traditional institutions, companies, and the youth—to collaborate and resist criminal activities that threaten our infrastructure,” he said.
He also stressed that the NMDPRA is committed to being transparent and accountable in how it regulates the oil industry.

By Oluwatosin Ogunjuyigbe, Business Day

Nigeria confronts new 'drone threat' from ISWAP

The Islamic State West African Province (ISWAP) recently deployed four armed drones carrying locally made grenades in an attack on the Forward Operating Base in the Wajikoro area of Borno, Northeast Nigeria, leaving about five soldiers injured.

Nigeria's military has stepped up efforts to contain ISWAP and Boko Haram insurgents. This week, local media reported that the army had thwarted plans by ISWAP to establish bases in Plateau and Bauchi states.

Using weaponized drones marks a significant shift in the insurgent group's tactics. Residents and critics are worried the new shift could further prolong the conflict in the region. Authorities have since banned the flying of drones, citing security concerns, while acknowledging that non-state actors have used the technology against military targets and Critical National Infrastructure (CNI).

Several African countries have adopted the use of drones, particularly the Medium Altitude, Long Endurance (MALE) unmanned aerial vehicle, in their fight against armed groups. The Sahel region is the epicenter of global terrorism and now accounts for over half of all terrorism-related deaths.
ISWAP's use of drones

ISWAP initially used drones to spread propaganda and surveillance. The group reportedly also operates tech tools like satellite internet and even uses artificial intelligence to edit propaganda materials.

In 2016, the group broke away from Boko Haram over doctrinal differences and subsequently became an affiliate of the so-calledIslamic State(IS), which gave the group access to resources and technical assistance.

Experts say the proliferation of drone warfare by state actors and its adoption by armed groups means they can enhance their offensive capabilities while minimizing risks to their fighters.

"They (ISWAP) have been using drones as observation drones for some time already," Vincent Foucher, a research fellow at the French National Centre for Scientific Research (CNRS), told DW. He explained that the use of armed drones is growing in popularity with the war in Ukraine, adding it has "become a sort of staple of modern conflict."


How ISWAP acquires drones

The insurgents' access to high-tech devices has largely been linked to their control over smuggling routes and arms trafficking networks, including looting and sourcing hardware within the country.

They also modify commercially available drones, specifically the quadcopter.

"ISWAP has proven to be highly adaptive, learning and evolving in response to state military strategies," Samuel Malik, who works with Good Governance Africa, told DW.

"Their shift toward incorporating drone technology mirrors broader global trends in warfare, where both state and non-state actors increasingly rely on unmanned systems for offensive and defensive operations."


Call to adapt a new strategy

Analysts say authorities must embrace a comprehensive new strategy that combines technological innovation, military preparedness, and coordination with neighboring countries.

"There is an urgent need for the deployment of systems capable of detecting, and neutralising hostile drones. Tools such as jamming devices, radar detection systems, and spoofing technologies can play a vital role in protecting military assets and civilian infrastructure from drone attacks," Malik said.

Taiwo Adebayo, who has been monitoring the war against Islamist insurgents for the Institute for Security Studies (ISS), suggested that the Nigerian state must strengthen its non-kinetic approach to counterterrorism and blocking the insurgents' supplies and disrupting their financing.

According to Foucher, ISWAP's latest use of drones to carry out attacks in the region is symbolic. "This new bout of armed drones is part of that [ISIS-ISWAP technological transfer]. I don't think it's a game-changer," Foucher said.

"It's very symbolic," the counterterrorism expert stressed, adding that it is rather proof that ISWAP is still very active.


Impact of Boko Haram insurgency

Since the Boko Haram insurgency erupted in the northeastern town of Maiduguri in July 2009, the terrorists have claimed the lives of tens of thousands of people and displaced over 2.3 million from their homes.

Adebayo noted that although the drones used by the terror group are still the commercially available ones modified for attacks, it still "challenges existing counterterrorism strategies.

"With aerial capabilities, ISWAP—if not quickly stopped—could conduct high-impact assaults while minimising their casualties. The group could turn military outposts and relatively secure civilian locations into potential targets. "For civilians, it would mean decreasing confidence in the state military, thereby inducing gravitation toward the insurgents.

"It's not just the guerilla warfare that we normally experience this time around; they are conducting two forms of attacks. One, looting. Most of the attacks recently are to loot local communities of their goods and properties, and attacking military bases," Ijasini Ijani, a resident, told DW.

By Abiodun Jamiu, DW