Category: Power

The United States has issued a temporary waiver allowing countries to purchase certain Russian oil supplies currently stranded at sea in a move aimed at easing soaring global oil prices.

This was disclosed by U.S. Treasury Secretary Scott Bessent in a statement posted in the early hours of Friday, March 13, 2026, on his X account.

The waiver applies specifically to Russian-origin oil shipments that are already in transit across global waters but unable to reach buyers due to existing sanctions and geopolitical disruptions.

Bessent said the measure was designed to temporarily expand available supply in the global market while limiting any financial gain for Moscow.

• “To increase the global reach of existing supply, U.S. Treasury Department is providing a temporary authorization to permit countries to purchase Russian oil currently stranded at sea,” he said.

According to him, the authorization is narrowly structured and only applies to oil that is already moving through international waters.

• He added that the measure “applies only to oil already in transit” and would not significantly benefit the Russian government, noting that it “will not provide significant financial benefit to the Russian government, which derives the majority of its energy revenue from taxes assessed at the point of extraction.” 

Bessent also said the recent spike in oil prices was temporary and would eventually benefit the U.S. economy in the long run.

• “President Trump’s pro-energy policies have driven U.S. oil and gas production to record levels, contributing to lower fuel prices for hardworking Americans,” he said, adding that the temporary increase in oil prices represents “a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term.” 

Backstory 

In March 2022, less than a month after Russia invaded Ukraine, then U.S. President Joe Biden announced a ban on Russian oil and other energy imports.

• At the time, the United Kingdom also pledged to phase out imports of Russian oil and petroleum products before the end of the year as Western nations moved to isolate Moscow economically.
• However, the latest crisis in the Middle East — triggered by escalating confrontation between Iran and the combined forces of Israel and the United States — has forced global leaders to once again look to Russian supplies to stabilize energy markets.

Earlier, the U.S. issued a 30-day waiver on March 5 specifically for India, allowing New Delhi to purchase Russian oil that had been stranded at sea.

The broader waiver for other countries comes days after Russian President Vladimir Putin held a call with Donald Trump and presented proposals aimed at achieving a quick settlement to the war, according to a Kremlin aide, a development that eased some concerns about global oil supply.

More insights 

The ongoing conflicts have triggered significant volatility in the global energy market, with ripple effects being felt across several economies, including Nigeria, where refiners and fuel distributors have begun adjusting petrol prices.

• Oil surged to more than $119 per barrel on Monday — its highest level since mid-2022 — amid supply cuts by Saudi Arabia and other producers that heightened fears of major disruptions to global supplies.
• Although prices briefly dropped to about $91 per barrel the following day, the market rebounded quickly. As of Friday morning, Brent crude futures were trading at $99.85 per barrel, while West Texas Intermediate crude stood at $95.05 per barrel.

Two days ago, the International Energy Agency also announced plans to release 400 million barrels of oil from strategic reserves to help ease the global supply shortage.

What you should know 

According to the International Energy Agency, Russia’s crude oil exports declined by 410,000 barrels per day in February compared to January, falling to about 4.2 million barrels per day.

• Reuters also reported that Russia’s oil and fuel export revenues dropped by $1.5 billion month-on-month to $9.5 billion — the lowest level recorded since 2022.
• Before the war, Russia was estimated to pump between 7 million and 8 million barrels of crude oil and fuel per day into global markets, representing roughly 7% of total global supply.

However, the new conflict engulfing Gulf nations and parts of the Middle East has disrupted one of the world’s most critical oil shipping routes — the Strait of Hormuz — creating fresh opportunities for Russia to expand its oil sales.

Reports indicate that about 124 million barrels of Russian-origin oil were stranded on water across 30 different locations globally as of Thursday, awaiting buyers or regulatory clearance.

Nigerians will heave a sigh of relief as Dangote Refinery cut its ex-depot petrol price to N699 per litre on December 11.

The latest reduction, down from N828 per litre, represents a 15.58 percent drop and marks the refinery’s 20th price adjustment this year. On the other hand, the move compounds mounting pressure on traditional importers and depot operators who have already seen margins evaporate amid an aggressive pricing war that began in late 2024.

Industry watchers warn that depot owners and business networks built around importation face idle facilities and financial strain as the 650,000-barrel-per-day Lekki facility flexes its pricing power. Several private depots moved swiftly to align with Dangote’s new benchmark, with Sigmund Depot dropping its rate by N4, while TechnoOil implemented a sharper N15 cut.

“The margins are shrinking by the day,” said Tosin Akinbobola, a Lagos-based fuel distributor who requested anonymity. “Dangote has access to better economies of scale and a more efficient refining process. We simply can’t match their prices without incurring significant losses.”

Data from Nigeria’s central bank shows the country spent $1.26 billion on petroleum imports in the first quarter of 2025, even as Dangote’s output increased. Yet marketers imported 2.28 billion litres between January and March, underscoring the complex dynamics as traditional players fight to maintain relevance.

The price reduction follows a recent meeting between refinery chairman Aliko Dangote and President Bola Tinubu on December 6, during which the billionaire industrialist reaffirmed his commitment to maintaining competitive domestic fuel prices despite global market volatility and persistent cross-border smuggling.

The latest adjustment has triggered immediate market responses across Nigeria’s downstream petroleum sector. Several private depot operators, including A.A. Rano, NIPCO, and Aiteo, have begun aligning their rates with Dangote’s new pricing template, according to industry sources. The Nigerian National Petroleum Company Limited has also reduced pump prices twice in recent weeks, with retail rates in Abuja now ranging between N915 and N937 per litre.

Industry analysts suggest the frequent price adjustments reflect a fundamental shift in Nigeria’s fuel distribution landscape. The traditional marketers’ consortium model appears to be declining as individual operators negotiate directly with the refinery, enabling faster price adjustments and broader market penetration.

The $19 billion Dangote refinery, which commenced operations in 2023, has a processing capacity of 650,000 barrels per day, exceeding Nigeria’s entire domestic fuel demand. Company officials indicated the latest price cut aims to ease transportation costs for road transport operators and make the festive season more affordable for ordinary Nigerians.

Dangote noted that smuggling has declined, though not entirely stopped, as the refinery’s competitive pricing reduces arbitrage opportunities along Nigeria’s porous borders. The industrialist emphasised that the company is pursuing long-term market stabilisation rather than immediate investment recovery.

Transport sector stakeholders are expected to benefit significantly from the reduction, potentially translating to lower fares for passengers during the peak holiday travel period. The price cut also pressures fuel importers and NNPC Limited to further adjust their rates to remain competitive in Nigeria’s evolving petroleum market.

With retail prices potentially dropping to around N600 per litre at some filling stations for the first time in years, Nigerian consumers are witnessing tangible relief from fuel costs that have remained stubbornly elevated throughout 2025.

The refinery’s aggressive pricing strategy could reshape Nigeria’s downstream petroleum sector, ending decades of supply instability and fuel queues that have plagued Africa’s largest economy since the 1970s.

The federal government is setting the stage for a significant economic boost, anticipating an injection of $2 billion in investments through the Nigerian gas flare commercialisation program.

This optimism comes as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Friday, issued to access flare gas site to 28 successful bidders.

Speaking at the event held in Abuja, Gbenga Komolafe, Commission Chief Executive, NUPRC said that by  allocating flare sites to competent third-party developers, the government has activated the commercially viable model, in which waste flare gas becomes value and environmental challenges give way to investment opportunities.

The program, he said is aligned with Nigeria’s Energy Transition Plan, which outlines the national pathways towards a cleaner, more resilient energy system.

Komolafe explained that the NGFCP is not merely a policy initiative, but a pillar in the nation’s quest to eliminate routine flaring, reduce emissions, and enhance Nigeria’s global credibility in energy transition commitments.

He said, “The NGFCP provides tangible value to producers, including elimination of flare payment obligations, reduction of environmental and operational liabilities, improved ESG performance, strengthening attractiveness to investors and global financiers, and alignment with the federal government’s decarbonization agenda.

“After the disruptions of COVID-19 and following the enactment of the PIA, it was necessary to restructure the NGFCP to reflect the prevailing realities. This effort enhanced commercial viability and regulatory consistency. From 300 initial expressions of interest, 139 applicants qualified for the RFP stage.

“Following a competitive and transparent evaluation process, 42 successful bidders were awarded 49 flare sites, an achievement widely recognized for its integrity. Today, we are pleased to announce that 28 awardees have fully executed the required set of commercial agreements. It is indeed a milestone, which includes the commercial agreements, the milestone development agreements, and gas sales agreements.

“And now, they are qualified to receive the permit to access flare dust. These entities represent a strong blend of operational capability, financial readiness, and technological competence. To all our flare site awardees, soon to become permit holders, I offer warm congratulations to you all.

While commending the awardees, Komolafe urged that engineering construction financing commissioning must begin in earnest. He assured that the commission remains fully committed to providing the needed regulatory support to the awardees to meet their timelines and obligations.

He emphasized that capturing gas flare will support power generation, petrochemicals, fertilizers, LPG penetration, and feedstock supply to local industries. He added that beyond commercial gains, this project will also strengthen close community relations, improve operators’ social license to operate, build local content capacity, and stimulate job creation.

“In addition, investors stand to benefit from diversified revenue streams, carbon credit earnings, and long-term gas monetization opportunities, while simultaneously enhancing their sustainability credentials.

“A total of 49 flare sites have been auctioned. 42 bidders have been awarded the sites. Between 250 and 300 million scores of currently flared gas will be captured and commercialized, eliminating approximately 6 million tons of CO2 emissions annually.

“The program is expected to attract up to $2 billion in investment, more than 100,000 direct and indirect jobs are projected to be created. About 170,000 metric tons of LPG are estimated to be produced annually, enabling clean energy access for approximately 1.4 million households.

“And nearly 3 gigawatts of power generation potentially will be unlocked. An NGFCBE forum and college of awardees has been established to support project implementation and knowledge exchange. We have also deepened engagement with international financiers and technology partners,” Komolafe said.

In his remarks, Kelechi Onyekachi Ofoegbu, Executive Commissioner, Corporate Services & Administration, NUPRCz said that program’s architecture and design integrates market-aligned incentives with robust environmental requirements, thereby ensuring that rare gas is converted into economically valuable streams such as power, LPG, petrochemicals, and industrial feedstock.

He also noted that the NGFCP is designed to attract competent entities capable of utilising flare gas for real economic impact. He added that the program seek to eliminate routine flaring while expanding domestic gas utilisation, enhancing Nigeria’s energy security, and supporting the development of gas-based industries.

“This moment reflects both national progress and industry evolution, and is a clear demonstration of what collective progress, disciplined regulation, and strong leadership can achieve.

“The 2022 relaunch of the NGFCP established a clear commercially structured and technologically driven pathway for capturing and monetising rare gas. It also reflects a deliberate shift from legacy practices towards a modern regulation framework that strengthens investor confidence and promotes industry accountability,” he said.

Speaking further, Ofoegbu urged the awardees to remain focused on in implementing the program, stating that the success of the programme relies on their collective ability to deploy infrastructure, capture flare gas efficiently, and convert it into valuable products, deliver environmental benefits, and ensure sustainable socio-economic impact across host communities
“The programme aligns with the National Energy Transition Plan by promoting clean fuels and reducing emissions from upstream operations. It also improves operational efficiency, enhances ESG performance, and opens new investment opportunities for both local and international stakeholders,” he added.

It began with a number and a charge sharp enough to jolt Nigeria’s oil industry.

Ahmed Farouk is the pioneer and serving chief executive officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA, the powerful institution charged with regulating Nigeria’s midstream and downstream petroleum operations under the Petroleum Industry Act 2021.

An engineer by training, Farouk is a career oil and gas professional with nearly four decades of experience across Nigeria’s petroleum industry and international energy markets. He holds a degree in engineering technology from Southern Illinois University Carbondale in the United States and has attended several executive, management and leadership programmes across Europe and North America during a career spanning more than 35 years.

Farouk began his professional journey far from Nigeria’s oil fields, working as a logic board verification engineer at Apple Computer Inc. in Dallas, Texas. He later returned to Nigeria, where he rose through the ranks of the Nigerian National Petroleum Company system, occupying some of its most senior commercial and operational positions.

Farouk is a fellow of the Nigerian Society of Engineers, a member of the Institute of Electrical and Electronics Engineers in the United States, and a registered engineer with the Council for the Regulation of Engineering in Nigeria. Supporters describe him as a technocrat shaped by years of exposure to crude trading, product marketing and regulatory administration.

This depth of experience positioned him for the task of implementing the Petroleum Industry Act, which dismantled old regulatory structures and created the NMDPRA as a central authority for Nigeria’s midstream and downstream petroleum governance.

In December 2023, Farouk’s leadership was projected on a global stage when the NMDPRA told delegates at the United Nations Climate Change Conference COP28 that Nigeria could attract up to $575 billion in energy and infrastructure investments through regulatory reform, sustainability initiatives and private sector collaboration.

That reputation for technocratic authority would later collide with one of the most high-profile corporate figures in Africa, pushing Farouk from regulatory boardrooms into the heart of a national controversy.

A history of controversy

The most intense controversy of Farouk’s tenure erupted in 2025, when Aliko Dangote publicly accused him of conduct that went far beyond regulatory disagreement.

On Monday, Dangote alleged that Farouk spent about $5 million on the secondary education of his four children in Switzerland, an expenditure he described as economic sabotage and corruption. According to Dangote, the children Faisal Farouk, Farouk Jr, Ashraf Farouk and Farhana Farouk attended Montreux School, Aiglon College, Institut Le Rosey and La Garenne International School over a six-year period.

Dangote said his estimates covered tuition, living expenses, air travel and general upkeep, placing the annual cost per child at about $200,000. Multiplied across four children and several years, he argued, the figure rose to roughly $5 million. He also detailed what he described as tertiary education expenses, claiming that university-level tuition, upkeep and travel averaged $125,000 per year over four years per child, amounting to about $2 million for all four. He further alleged that Faisal Farouk completed an MBA at Harvard in 2025 for roughly $220,000

“Nigerians deserve to know the source of this money,” Dangote said, contrasting the figures with conditions in Sokoto State, where many parents, he noted, struggle to pay as little as ten thousand naira in school fees.

The allegations were accompanied by broader claims about regulatory conduct. Speaking at a press conference at the Dangote Petroleum Refinery in Ibeju Lekki, Lagos State, Dangote accused the leadership of the NMDPRA of colluding with international traders and oil importers to frustrate domestic refining. He claimed that import licences covering about 7.5 billion litres of petrol had been issued for the first quarter of 2026 despite the availability of significant local refining capacity.

“I am not calling for his removal, but for a proper investigation,” Dangote said. “If he denies it, I will publish what was paid and take legal steps to compel the schools to disclose the payments.”

From that moment, Farouk moved from being a powerful but largely technocratic regulator to the centre of a public storm, as regulatory disagreements over fuel imports and market control merged with public questions about personal wealth and accountability

The Dangote allegations were built on earlier tensions between the regulator and Nigeria’s largest private refinery. In 2024, disputes between the NMDPRA and Dangote Refinery had already spilled into the public arena after Farouk criticised local refineries, including Dangote’s, suggesting that some produced inferior products compared with imports. He also warned against what he described as the risk of monopoly if oil marketers were compelled to rely exclusively on one domestic refinery.

Dangote strongly rejected those claims, and the disagreement reached the National Assembly, where the House of Representatives adopted a motion urging Farouk’s suspension over what lawmakers described as unguarded and unprofessional comments. The call was later overtaken by procedural and legal arguments around tenure protection under the Petroleum Industry Act.

Political criticism has also followed him. In 2023, Haruna Garus Gololo, an All Progressives Congress chieftain in Bauchi State, publicly questioned Farouk’s appointment, arguing that his long NNPC career linked him to the failures of Nigeria’s state refineries.

“Ahmed Farouk was in the NNPC. He was part and parcel of why the refineries are not working,” Gololo said

 

By 2025, pressure intensified outside parliament. Coalitions of lawyers, civil society groups and religious leaders staged protests in Abuja, accusing Farouk of corruption, abuse of office and regulatory compromise. Some allegations echoed Dangote’s claims, including the diversion of millions of dollars to fund foreign education for his children and the alleged recruitment of his son into Oando, a company under NMDPRA regulation.

Protesters carried their demands to foreign missions, submitting petitions to the United States and Swiss embassies and calling for international scrutiny. “The allegations are serious and warrant a thorough investigation,” said Dan Okwa of the Concerned Young Professionals Network. “The Nigerian public deserves transparency and accountability.”

Defence and pushback

The NMDPRA has consistently rejected the accusations. In July 2025, the authority dismissed what it called a smear campaign against its chief executive, describing the allegations as baseless and politically motivated. It pointed to multiple layers of oversight, including audits, National Assembly scrutiny and the Office of the Auditor General.

Since assuming office, the agency said, Farouk has focused on implementing the Petroleum Industry Act and driving reforms that have helped attract nearly $20 billion in investment into the sector.

“These calls for resignation are filled with baseless declarations and no specific accusations. This alone shows their frivolity,” the Authority stated.

Institutional backing followed. The House of Representatives downstream committee later dismissed calls for Farouk’s removal, warning that ignoring the tenure protections in the Petroleum Industry Act would undermine investor confidence and legal certainty.

“The committee is not saying that investigating agency should not diligently carry out its function or prosecute any person found to have breached the law but the committee is completely against any idea that the PIA provisions can be dus-tbined and its provision ignored and that a regulatory body leader can be removed without due process and that once that culture is back, then it will send a wrong signal to the international committee of investors in the petroleum sectors to now feel that it is risky investing in a country where respect to the law can’t be guaranteed”

“So on that ground the Committee is dismissing those calls as not being in line with relevant provisions of the PIA which has physically made provisions for tenure duration and also the allegations about the budget of the agency are ridiculous because some of those allegations were way above the entire capitals provision in the budget, So if an amount that is alleged to have been misappropriated is above the budget capital provision, how could you have said someone stole what was not even exiting?”

The National Association of Nigerian Students, which had earlier accused Farouk of mismanagement and abuse of office, issued a public apology, admitting that its claims were based on unverified information.

“The allegations were based on unverified information. As the mouthpiece of over 40.2 million Nigerian students, both at home and in the diaspora, NANS is committed to upholding the values of truth, fairness, and constructive engagement.

“I sincerely apologise for any inconvenience or harm caused by the earlier statement and urge all stakeholders to remain focused on constructive dialogue and the shared goal of building a better Nigeria,” they wrote.

 

A profile still unfolding

For now, Farouk remains in office, presiding over one of Nigeria’s most sensitive regulatory institutions at a time of profound change in the energy sector. The allegations levelled by Africa’s richest businessman have not resulted in formal charges, but they have reshaped public perception and intensified scrutiny of regulatory power.

As Dangote put it, “What is happening amounts to economic sabotage.”

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has dismissed a report alleging that Nigeria lost N8.41 trillion to oil theft between 2021 and 2025, insisting that crude oil losses have dropped by more than 90 percent over the period.

In a statement signed by Eniola Akinkuotu, Head of Media and Strategic Communications, the commission described the report, published by one of Nigeria’s dailies (not The Guardian) on Wednesday, September 24, 2025, as a misrepresentation of official data.

According to the NUPRC, the figures cited were derived from a flawed methodology and incorrect exchange rate assumptions.

“In the misleading report, an exchange rate of N1,500/$1 is used from 2021 to 2025 to increase the figures and sensationalise actual losses when in actual fact, Nigeria’s exchange rate was less than N430 on the official market and barely N600/$1 on average between 2021 and mid-2023. The N8.41 trillion is therefore inaccurate,” the statement read.

The commission explained that when it released crude loss statistics earlier this month, it was done in the spirit of transparency and in compliance with the Petroleum Industry Act, 2021. It noted that crude oil theft, which stood at 102,900 barrels per day in 2021, had dropped to 9,600 barrels per day in 2025—the lowest since 2009.

“The collaborative efforts between the NUPRC, the Office of the National Security Adviser, the military, operators and other stakeholders, through both kinetic and non-kinetic means, have yielded results. Losses have been reduced by over 90 percent,” the commission stated.

Nigeria’s oil output hits 1.63 mbpd in August
The regulator further pointed to the National Bureau of Statistics’ latest report, which showed a 4.23 percent growth in Nigeria’s economy, attributing the improvement partly to increased oil production. It argued that this performance confirmed steady progress in combating crude theft and restoring output levels.

The NUPRC also maintained that Nigeria has been meeting its OPEC quota due to ongoing industry initiatives, including the Project 1 Million Barrels programme, metering audits, restoration of shut-in strings, increased rig counts, and creation of alternative evacuation mechanisms.

It added that Nigeria now possesses the technical capacity to produce above two million barrels per day and that the commission is working with operators, service providers, rig owners, off-takers, and financiers to expand production within an improved operating environment.

On its dispute with the newspaper, the commission criticised the paper for failing to seek clarification before publication.

“The story also fails the integrity test as no attempt was made by the reporter to get a clarification from the commission in the spirit of fairness and balanced reporting,” the statement said.

The NUPRC called on media organisations to verify statistics with relevant authorities before publishing, stressing that inquiries could be directed to its corporate communications department.

The Kano-Jigawa branch of the Manufacturers Association of Nigeria (MAN) has lauded Dangote Refinery and Petrochemicals for its role in revitalising struggling companies in the country.

According to the association, the refinery’s intervention through the reduction of diesel prices and the steady availability of petroleum products has provided significant relief to manufacturers grappling with high energy costs.

Speaking on the sideline of the ongoing MAN Annual Products Exhibition, taking place at Sani Abacha SAtadium in Kano, the branch chairman of MAN Kano and Jigawa, Muhammad Bello Isyaku Umar, noted that the measures were already helping “dying companies come back to life” by reducing production expenses, stabilising operations, and sustaining jobs.

The association explained that access to affordable diesel is critical to the survival of many small and medium-scale industries in Nigeria, particularly those outside the national grid or in areas plagued by inconsistent power supply.

MAN reiterated its commitment to partnering with the refinery and other stakeholders to strengthen the manufacturing sector, describing the Dangote Refinery as a game-changer in the country’s quest for industrial sustainability and self-reliance.

Umar said the exhibition, which has Dangote Industries Limited as one of the major sponsors, is bringing together top manufacturers, entrepreneurs, policymakers, and consumers in a showcase of innovation, quality, and resilience in the nation’s economy.

He explained that the refinery would reduce the country’s reliance on imported petroleum products, while supporting local manufacturing.

The Federal Government has reaffirmed its commitment to maintaining investment-friendly policies in the oil and gas sector, pledging measures to keep Nigeria competitive in the global energy market.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, gave the assurance during an inspection of the Escravos Gas-to-Liquids (EGTL) facility operated under the NNPC/Chevron Nigeria Limited joint venture in Delta State.

Lokpobiri said the administration is focused on boosting production through sustained capital inflows, stressing that viable oil blocks should not remain dormant.

“Where you are not ready to develop, it’s better to farm out to partners rather than wait decades,” he said, adding that the government is considering enforcing the “drill or drop” provision in the Petroleum Industry Act (PIA) to ensure optimal asset utilization.

Chevron Nigeria Limited’s General Manager for the joint venture, Segun Kuteyi, said the company is increasing investments to monetise existing resources, describing the minister’s visit as a strong signal of the administration’s seriousness about collaboration.

Also speaking, Chevron Chairman and Managing Director, Jim Schwartz, said government backing and the PIA have been instrumental in sustaining the company’s interest in Nigeria.
“We have a lot of resources we still want to develop here that will enable production growth,” he said.

The visit comes amid ongoing efforts to attract fresh investment into Nigeria’s oil and gas industry, which has faced production challenges in recent years despite its vast reserves.