Category: News

A group known as Concerned Nigerians has alleged that there is a plot to disrupt crude oil supply to local refineries in Nigeria.

The group’s National Coordinator, Obinna Francis, made this known in a statement on Monday, alleging that they had uncovered a “sinister plot to stop the supply of crude oil to domestic refineries.”

The group acknowledged the contribution of local refineries to Nigeria’s economic growth under President Tinubu, stating that this progress requires vigilance against any “cabal” allegedly working with importers to deny local refineries access to crude oil.

Tinubu’s Oil and Gas Reforms Must Be Guarded Jealously
According to Francis, the success of domestic refineries in Nigeria has led to a reduction in fuel prices, which in turn has lowered the cost of food items.

He expressed shock that certain unnamed individuals were allegedly plotting to undo the gains achieved under President Bola Ahmed Tinubu’s economic reforms.
“Such a sinister plot can only be driven by a desire to return Nigeria to the era of petrol importation and even the reintroduction of subsidies.

“This is because cutting off crude oil supply to domestic refineries would create a shortage of refined products, forcing the country to resume fuel imports,” he stated.

He warned that such actions could undermine Nigeria’s collective economic well-being.
The group called on the President and the Department of State Services (DSS) to ensure that no one, knowingly or unknowingly, disrupts crude oil supply to local refineries, so that the economy is not destabilized.
“We salute Mr. President and pass a vote of confidence in him for his impact in driving Nigeria toward energy sustainability, especially in the oil industry. The sector has revived to a point where Nigerians no longer experience harrowing times at petrol stations,” he added.

He stressed that oil and gas reforms must be protected, ensuring that no group or individuals are allowed to undermine the achievements recorded in the sector.
What You Should Know
Nigeria is gradually becoming a petroleum refining hub in West Africa, thanks to the commissioning of the Dangote Refinery and other private and state-owned refineries.

However, private refineries continue to struggle to secure sufficient feedstock for their operations.
Nairametrics reported that the increasing refining capacity of the Dangote Refinery has helped Nigeria reduce its fuel imports.
Nigeria’s gasoline imports have dropped to their lowest level in almost eight years.
In addition to meeting domestic demand, the Dangote Refinery is also exporting refined petroleum products to other countries, including Ghana, Togo, Cameroon, South Africa, Angola, and several European nations.
The Nigerian National Petroleum Company Limited (NNPCL) recently denied reports that it imported over 200 million litres of Premium Motor Spirit (PMS), also known as petrol, in February 2025.

NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, clarified that while the company has not imported PMS in 2025, it retains the right to do so if necessary.

He emphasized that NNPCL has a responsibility to ensure energy security in the country and would intervene with imports if fuel shortages arise to stabilize the market.

The Transmission Company of Nigeria (TCN) has announced that the country’s power sector achieved a new peak generation of 5,713.6 megawatts (MW) on March 2, 2025, successfully transmitted across the national grid.

According to a statement issued by TCN’s management, this new peak surpasses the previous peak generation of 5,543.20MW recorded on February 14, 2025, by 170MW.

However, it remains 88MW lower than Nigeria’s all-time maximum peak generation of 5,801.60MW, achieved on March 1, 2021.

“This was recorded on Tuesday, March 2, 2025 at 21:30 hours, with the new generation peak of 5,713.6 megawatts (MW), surpassing the previous peak generation of 5,543.20MW achieved on February 14, 2025, by 170MW,” the management said in a statement on Tuesday.

Additionally, Nigeria’s electricity industry recorded its highest-ever daily energy transmission, reaching 125,542.06 megawatt-hours (MWh) on March 2, 2025. This surpasses the previous record of 125,159.48MWh, set on February 14, 2025, by 382.58MWh.

“Furthermore, a new record for the new daily energy ever attained in the history of the electricity industry in Nigeria was also set yesterday, with a total of 125,542.06 megawatts-hours (MWh). This surpasses previous record of 125,159.48 (MWh) achieved on February 14, 2025, by 382.58MWh,” in a statement signed by Management.

Implications for Nigeria’s Power Sector
The new milestone signals an improvement in power generation and transmission capabilities, reinforcing efforts to stabilize Nigeria’s electricity supply.

Analysts urge the government and stakeholders to implement policies that address these bottlenecks to ensure that increased generation translates to improved electricity access for homes and businesses.

More insights
Previously, reported last month that TCN announced a new peak generation of 5,543.20 megawatts (MW).

The General Manager of TCN, Ndidi Mbah noted that this new record surpasses the previous peak of 5,478.73MW.
Mbah further explained that the new Maximum Daily Energy of 125,159.48 megawatt-hours (MWH) is the highest ever recorded in the nation’s electricity industry, exceeding the previous record of 121,674.88MWH on February 7, 2025, by 3,484.60MWH.
She confirmed that TCN has successfully transmitted the new peak generation and maximum daily energy to the distribution companies’ load centers nationwide for onward distribution to customers.
On January 8, 2021, the Transmission Company of Nigeria (TCN) announced that it achieved a peak transmission of 5,552.80 MegaWatts (MW) as reported by Nairametrics.

Mbah noted that this achievement reflects growth in Nigeria’s electricity distribution, noting that TCN has a transmission potential of 8,100 MW.

TCN enhanced peak transmission at a frequency of 50.08Hz where Mbah confirms that the peak transmission surpasses the record set on 30 October 2020, which was 5,520.40MW.

Nigeria’s power prices need to rise by about two thirds for many customers to reflect the cost of supplying it and an increase can be expected within months, President Bola Tinubu’s special adviser on energy said.

Higher electricity tariffs, which need to be balanced by subsidies for less-affluent consumers, are required to fund the maintenance needed to improve reliability and to attract private investors into power generation and transmission, said the adviser, Olu Verheijen.

“One of the key challenges we’re looking to resolve over the next few months is transitioning to a cost-efficient but cost-reflective tariff,” Verheijen said in an interview in Dar es Salaam, Tanzania, this week. This is needed “so the sector generates revenue required to attract private capital, while also protecting the poor and vulnerable,” she said.

Tinubu has already taken a number of steps to ease the burden on state finances and encourage private investment since taking office in May 2023, including removing subsidies on motor fuel. Power prices were already tripled for some customers last year.

While Nigeria, a nation of about 237 million people, has an electricity access rate of around 62%, an erratic grid supply limits productivity and disrupts daily life.
The move to raise tariffs comes amid mounting pressure from Nigeria’s debt-burdened electricity distribution companies for tariffs to be cost-reflective so they can improve their finances.

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The country privatized generation and distribution in 2013, yet prices set by the government’s Nigeria Electricity Regulatory Commission don’t cover the suppliers’ costs. Government subsidies cover some of the difference, but profitability is hard to achieve.

Verheijen was in Tanzania attending a World Bank-backed conference where Nigeria presented a $32 billion plan to boost electricity connections by 2030. Private investors are expected to contribute $15.5 billion and the rest will come from public sources, including the World Bank and African Development Bank.

Nigeria’s power industry needs significant investment to achieve its development aims, Verheijen said. Of the country’s 14 gigawatts of installed power, only 8 gigawatts can be transmitted around the country and just four or five gigawatts can be directly delived to homes and businesses, she said.

Ahmed Usman Ododo, Kogi State governor, has said that the establishment of five Mini Liquefied Natural Gas (LNG) plants in Ajaokuta by the Federal Government through the Nigerian National Petroleum Company (NNPC) Limited and its private sector partners would strategically position Kogi as an energy hub in Nigeria.

Ododo expressed the optimism during the groundbreaking ceremony of the LNG plants in Ajaokuta where he emphasised that the project would play a pivotal role in enhancing Nigeria’s energy landscape, fostering economic growth, improving energy access, and reinforcing Kogi State’s significance in the country’s industrial development.

The governor equally described the LNG plants as a transformative investment that would not only position Kogi as an energy hub but also stimulate economic activities in the state.

He said: “We are witnessing a historic moment that will redefine Kogi’s place in Nigeria’s energy sector.

“This project is not just about gas production; it is about economic transformation, job creation, and ensuring that our state plays a central role in Nigeria’s energy future.”

He underscored the economic impact of the initiative, highlighting its potential for job creation, increased investment, and industrial growth, stressing that his administration’s commitment to developing a skilled workforce will find through expression in opportunities being created by new investment in the emerging energy sector , as he commends President Bola Tinubu for his dedication to Nigeria’s energy transition and for mobilizing NNPC Limited and its private sector partners including Prime LNG, NGML/GASNEXUS LNG, LNG Arete, Highland LNG, and BUA LNG to establish the LNG plants in Ajaokuta.

Read also: NNPCL unveils five LNG mini-plants to boost gas supply in Nigeria

He expressed the optimism that the LNG plants would become a crucial part of Kogi’s energy infrastructure, significantly reducing carbon emissions while advancing sustainable energy solutions in Kogi state and Nigeria.

He said: “With an initial combined production capacity of over 80 million cubic feet per day, these plants will serve as a key resource for both national and international energy markets.”

Ododo equally assured that his government remains committed to providing an enabling environment, sustaining peace and security, and attracting more investments to the state.

Earlier, Mele Kyari, Group chief executive officer of NNPC Limited, emphasised that the LNG plants were part of the Federal Government’s strategy to revolutionise the gas sector, positioning it as a key driver of economic prosperity, noting that the initiative was not just a symbolic event but a concrete step towards energy transformation, stressing that all necessary equipment are ready for immediate deployment with assurance that the project would be completed on schedule in partnership with relevant stakeholders.

Kyari equally commended Governor Ododo for mobilising support from host communities, recognising them as the first beneficiaries of the initiative.

The project, spearheaded by the Nigerian National Petroleum Company (NNPC) Limited in collaboration with private sector partners, aims to enhance domestic gas supply, drive industrialisation, and create employment opportunities.

The Minister of State for Petroleum Resources (Gas), Ekperikpo Ekpo credited President Tinubu’s executive order for fast-tracking the development of the LNG plants.

He emphasized that the project was a direct response to the federal government’s push to maximise Nigeria’s gas potential and support industrialisation efforts.

Shuaibu Abubakar Audu, minister for Steel Development, noted that the LNG initiative aligns with Tinubu’s Renewed Hope Agenda, which aims to create a $1 trillion economy by 2030.

Aliko Dangote, group chairman and founder of Dangote Group has disclosed that the newly built Dangote refinery located in Lagos, Nigeria would not have been possible without the African Export-Import Bank (Afreximbank), the International Finance Corporation (IFC), and Access Bank.

He also disclosed that he has paid interest and principal of about $2.4 billion out of the $5.5 billion borrowed to establish the refinery in Nigeria.

Dangote said this on Tuesday during a fireside chat with CNN on ‘Using Industrial Transformation to Build Bridges: The Global Africa Vision and Experience of the Dangote Group’, at the ongoing 2024 Afreximbank annual meetings, incorporating Africaribbean trade and investment forum, in Nassau, The Bahamas.

“We borrowed the money based on our balance sheet, we borrowed a total of $5.5 billion but we have paid a lot of interest as we go along because the project was delayed because of lack of land, also the sand filling. It took a long time, almost six years or so. We didn’t do anything for five years.

“It was actually in 2018 that we started. We borrowed that much, we have actually of course paid interest and some principal, of about $2.4 billion. So, we’ve done very well. We now have only about $2.7 billion left to be paid. So we’ve done very well for a project of that magnitude,” he said.

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“I think the luck that we had by getting the refinery done is because people believed that we were crazy, it will never happen. So I think the people who were sabotaging us were less concerned because they knew that these guys had entered into something that they were going to finish. They thought that we were going to fail. And I must thank a lot of our bankers for not panicking.

“The issue is that I must say, not because Benedict Oramah is here, but I can tell you, this refinery wouldn’t have been possible without Afreximbank. I think he’s one person who has so much belief in the refinery himself and then the other gentleman who is late now, Herbert Wigwe of Access Bank.

“Oramah is actually more convinced than some of my staff. Yes, he’s more convinced because when we took him there, both him and some of his board members, they became so much sort of convinced that this is the right way to go. And I must honestly tell you that, which I told you in the interview, even though I didn’t see that path. I said without the likes of Afreximbank, African Finance Corporation (IFC), it will be very difficult for us to industrialise,” Dangote said.

Narrating his experience in the refinery journey, he said, “I feel great but we really went through tough times, also including covid-19 time. So, during the setting up of the refinery, when we thought about building the refinery, we first of all did not have a clue of how huge this refinery is going to turn out to be. That is the reason we went into building the refinery. If we knew what we were really going to get into, we would not have started at all.”

The Nigerian National Petroleum Company Limited (NNPC) and its partner, TotalEnergies, have agreed to invest $550 million for the development of a gas processing facility in southern Rivers State to boost exports and domestic supplies of gas.

An official at NNPC who is privy to the agreement disclosed this to Reuters yesterday, saying the investment would include a gas processing plant and a pipeline.

TotalEnergies declined to comment while the NNPC source said an announcement would be made this week, according to the international news agency.

The gas processing facility would be built on the Ubeta onshore gas field, jointly owned by TotalEnergies and NNPC and would supply gas to the Nigeria Liquefied Natural Gas (NLNG) plant, the report stated.

The NLNG is a consortium between NNPC, Shell, TotalEnergies and Italy’s Eni (ENI).

When completed, the plant would generate 350 million standard cubic feet per day of gas (mmscf/d) and 10,000 barrels per day of associated liquids, the source stated.

Nigeria, which holds Africa’s largest natural gas reserves of over 209 trillion cubic feet (tcf) flares – or burns off gas from its oil fields because it lacks processing infrastructure and faces capital constraints.

The latest investment could mean President Bola Tinubu’s bid to attract investment into Nigeria’s energy sector is beginning to succeed, analysts said.

“The government will hope this offers confidence not only in the quality of the Nigerian resource base, but also in the government’s pledge to improve ease of doing business,” Reuters quoted the Director, sub-Saharan Africa at Political Risk Consultancy Horizon Engage, Clementine Wallop, to have said.

Energy analysts hold the view that Nigeria has failed to increase its exports to the European Union after the bloc sought alternative supplies to make up for lost Russian imports because of the Ukraine War.

Locally, Nigeria is struggling to feed its gas power plants that generate most of its grid electricity, the report added.

The Federal Government has re-engineered Nigeria’s oil bidding process with emphasis on production bonuses, targeted at enabling investors to channel their scarce resources into immediate development and early production.

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In the past, emphasis was placed on the high signature bonus, a development that discouraged local and foreign investors from investing while also scuttling early development and commencement of oil and gas production as well as the unlocking of many multiplier effects.

But under the new arrangement, the industry regulator, Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has removed entry barriers, including the slashing of the signature bonus – a single, non-recoverable lump sum payment made upfront by oil companies to the government for the rights to develop an oil block commercially after successfully winning in the license bid round – to only $10 million for deepwater assets and $7 million for shallow water and onshore assets.

The strategy aims at growing oil and gas production, enhancing Nigerian Content Development, attracting Foreign Direct Investment, contributing to long-term global energy sufficiency, expanding opportunities for gas utilization, and creating employment opportunities while adding value to government and investors.

According to experts, the development illustrates the sensitivity of the Commission to developments around the world, especially the sustainable rise in Capital Expenditure, CAPEX, going into funding renewables in the spirit of the global energy transition.

They said it further showed its accurate comprehension of trends in other oil and gas climes; where the governments have drastically reduced signature bonus to attract investors and financiers into their industries.

Available data indicate that in the Middle East and North Africa, signature bonus currently stands at about $10 million while Thailand and Indonesia have about $3 million (minimum) and N1.5 million, respectively, meaning that Nigeria’s oil and gas landscape is now in alignment with the rest of the world.

Besides, the current bidding also opens a window for investors to bid for the 2022 blocks based on the current incentivized terms instead of paying the previous $50 million.

It was gathered that Nigeria will be able to complete many projects, leading to the creation of many multiplier effects, including production capacity, employment, contracts, community development, local content and gas-to-power, thus providing more energy to households and businesses nationwide.

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Also, it was further gathered that Nigeria will be able to generate substantial revenue in the form of production bonus when investors begin their oil and gas production.

Commenting on the development, the Executive Chairman, African Energy Chamber, NJ Ayuk, said: “Nigeria has established a robust framework that is set to attract foreign exploration companies with modernised fiscals that are competitive for deepwater exploration. We the AEC believe the most lucrative balancing point between creating a welcoming environment for international companies and achieving Nigeria’s own national goals is important.

“Key to this bidding round will be the role of independents and indigenous players when it comes to exploration. The bidding round also paves the way for gas monetisation that will bring amazing benefits to Nigeria and also international markets.”

Similarly, the Executive Director, Emmanuel Egbogah Foundation for Petroleum, Prof. Wumi Iledare, said: “A high signature bonus is regressive. It does make a petroleum province with a high signature bonus less attractive.”

On his part, the National President, Oil and Gas Service Providers Association of Nigeria, OGSPAN, Mazi Colman Obasi, said: “Investors need a conducive environment to put their money. Once the right environment exists, foreign capital will begin to flow in.”

However, speaking at the recent pre-bidding conference in Lagos, the Commission Executive, NUPRC, Engr. Gbenga Komolafe, said: “A review of Welligence Energy Analytics reports on Licensing rounds across the globe including Brazil, Guyana, Angola, Middle East, North Africa, SouthEast Asia, etc, revealed that the era of huge front-loaded signature bonuses is over.

“Accordingly, Nigeria under President Bola Ahmed Tinubu, as the Minster of Petroleum Resources has proactively and intuitively vacated barrier to entry for investment in exploration blocks being offered, in both the 2022 deep offshore bid round and the 2024 licensing round, in line with international best practices.”

He said: “President Bola Ahmed Tinubu and Minister of Petroleum Resources, Nigeria have embarked on a transformative agenda that aligns with the most stringent global standards and commitments. The recent Presidential Executive Orders issued in March this year, aimed at improving the efficiency and attractiveness of Nigeria’s oil and gas sector, were generously targeted to incentivize oil and gas development, introduced measures to balance the implementation of Nigerian Oil and Gas Industry Content Development Act, 2010 to ensure that oil and gas development is not hindered by local content bottlenecks. The Executive Orders also include directives on the reduction of contracting costs and timelines to enhance the global competitiveness of our oil and gas industry and achieve a higher rate of return on oil and gas investments.

“Nigeria is endowed with abundance of Crude Oil and Condensate Reserves and of Natural Gas Reserves representing above 30% and 33% respectively of the entire Oil and Gas reserves in Africa aside abundant mix of other renewable energy resources. In a bid to exploit and optimize these abundant Hydrocarbon resources, Section 7(t) of the Petroleum Industry Act (PIA) empowers the NUPRC, the Industry Regulator to conduct bid rounds for the award of PPLs and PMLs under the Act and applicable Regulations.

“It is on this premise that the Federal Government of Nigeria through the NUPRC recently announced the commencement of the 2024 Licensing Round both in-country and outside the shores of the nation. It would be recalled that we commenced the announcement at the maiden edition of the NEITI Dialogue Session, 2024, where the bid processes were thoroughly interrogated by civil society and the media.

“This was subsequently followed by the announcement of the commencement of the bid round at the 2024 OTC in Houston, the roadshow in Miami organized by Zeste Advisory, African Energies Summit in London organized by Frontier Network and Invest in Africa Energy Summit in Paris organized by Energy Capital Power. The Commission aims to project and attract robust local and foreign investors who will be participating in the bid exercise.”

He also said: “The NUPRC on behalf of the Federal Republic of Nigeria is committed to conducting the licensing round in a fair, competitive and transparent manner and ensuring a level playing field for both indigenous and international investors. Our approach is underpinned by the robust legal framework of the Petroleum Industry Act 2021(PIA), which ensures compliance with best practices to boost investors’ confidence.

President Bola Tinubu is set to inaugurate three vital gas infrastructure projects carried out by the Nigerian National Petroleum Company Limited (NNPCL) and its partners.

This is contained in a statement by the President’s spokesperson, Ajuri Ngelale, on Friday in Abuja.

According to the statement, the projects will enhance the federal government’s initiative to increase the value derived from the nation’s gas assets and eliminate gas flaring.

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Ngelale pointed out that the delivery of the projects was expedited from the start of the administration, aligning with the overarching goal of enhancing domestic gas supply as a vital catalyst for economic prosperity.

“In line with his commitment to significantly leverage gas to grow the economy, President Bola Tinubu will commission three critical gas infrastructure projects being undertaken by the Nigerian National Petroleum Company Limited (NNPCL) and partners.
“The projects support the federal government’s effort to grow value from the nation’s gas assets while eliminating gas flaring.
“The delivery of the projects was accelerated from the inception of the administration in keeping with the overall objective of deepening domestic gas supply as a critical enabler for economic prosperity,” Ngelale noted.
The Projects to be Commissioned by the President
The projects lined up for commissioning include:

1. AHL Gas Processing Plant 2 (GPP – 2) – 200mmscf/dd:
This project is an expansion to the Kwale Gas Processing Plant (GPP – 1), which currently supplies about 130MMscf/d of gas to the domestic market. The processing plant is designed to process 200MMscf/d of rich gas and deliver lean gas through the OB3 Gas Pipeline.
This additional gas supply will support further rapid industrialization of Nigeria. The plant will also produce about 160,000 MTPA of Propane and 100,000 MTPA of Butane, which will reduce the dependency on LPG Imports.
The AHL Gas Plant is being developed by AHL Limited, an incorporated Joint Venture owned by NNPC Limited and SEEPCO.

2. ANOH Gas Processing Plant (AGPC) – 300MMscf/d:
The ANOH gas plant is an integrated 300MMscf/d capacity gas processing plant designed to process non-associated gas from the Assa North-Ohaji South field in Imo State.
The plant will produce dry gas, condensate, and LPG. The gas from ANOH gas plant will significantly increase the domestic gas supply, leading to increased power generation and accelerated industrialization.
The ANOH Gas Plant is being developed by ANOH Gas Processing Company, an incorporated Joint Venture owned by NNPC Limited and Seplat Energy Plc on a 50-50 basis.

3. ANOH-OB3 CTMS Gas Pipeline Project:
The project involves the engineering, procurement, and construction of 36”x23.3km ANOH-OB3 Project.
The Transmission Gas Pipeline will evacuate dry gas from the Assa North-Ohaji South (ANOH) primary treatment facility (PTF) to OB3 Custody Transfer Metering Station (CTMS) for delivery into the OB3 pipeline system.
About 600MMscf/d is estimated to be available from two separate 2 x 300MMscf/d capacity gas processing production trains from AGPC & SPDC JV.

Furthermore, Ngelale further stated that the projects will boost gas supply to the domestic market by about 500 million standard cubic feet per day, fostering a more favorable investment environment and cumulatively promoting balanced economic growth following their commissioning.

What you should know
Earlier in February, President Bola Tinubu signed new executive orders aimed at enhancing the investment environment and establishing Nigeria as the top choice for investments in the oil and gas industry across Africa.

The president issued this policy directive in Abuja’s extensive engagements with major stakeholders in the sector.
The directives entail the provision of financial incentives for the development of non-associated gas, midstream operations, and deepwater projects.
In addition, the initiative focused on optimizing the contracting process to decrease the cycle time to six months.