Energy
$13.5bn Investment Expected In Energy Sector – Verheijen
Mrs. Olu Verheijen, the President’s Energy Special Adviser has shared that the country’s energy sector expects a $13.5 billion investment within the next year.
It was gathered that her consultations with stakeholders unveiled significant investment prospects in the sector, projected to amount to $55.2 billion by 2030.
Verheijen reiterated that Tinubu’s administration, following its “Renewed Hope Agenda,” stays dedicated to enhancing the business environment and investment landscape, particularly within the energy sector.
Consistently expressed during various stakeholder interactions, Verheijen affirmed the President’s unwavering commitment to energizing the sector. The government actively seeks avenues to bolster revenue and the overall economy.
Emphasizing the vital role of the oil and gas sector despite existing production limitations, Verheijen highlighted its critical importance in maximizing the country’s potential.
She said “My office has since started work on key areas of reform to spur the growth of the energy sector, and which would also positively impact on the livelihood of the average Nigerian and small businesses.
“Recently, the president approved the Import Duty Waiver aimed at increasing the utilisation and supply of gas in the domestic market.
“This waiver covers the importation of all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), as well as machinery, equipment and spare parts into the Nigerian market for the utilisation of Nigerian gas.” she added
Energy
Billy Gas Leak: Reps Blames NUPRC, NOSDRA for Inaction
The slow response of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the National Oil Spill Detection and Response Agency (NOSDRA) to the prolonged gas seepage in Billy Community, Degema Local Government Area of Rivers State, has been strongly condemned.
The House of Representatives Committee on the South South Development Commission (SSDC) handed the condemnation on Thursday, in Abuja, describing the situation as a major environmental and public health emergency that has lingered for nearly eight months.
During an investigative hearing, the lawmakers questioned officials of both agencies over what they described as regulatory lapses and delayed intervention, amid reports that the persistent gas seepage has contaminated water sources, polluted the air, disrupted economic activities and exposed residents to serious health and safety risks.
The probe followed growing concerns over the incident, first reported in late 2025, which has continued unabated despite months of investigations.
Residents of the riverine community have alleged that the emissions have rendered boreholes unsafe, crippled fishing and farming, their primary sources of livelihood, and left families living in constant fear of possible fire outbreaks and other health hazards.
Lawmakers also criticised the absence of key stakeholders, including the Nigerian National Petroleum Company Limited (NNPC Ltd), the NNPC Exploration and Production Limited (NEPL), the Rivers State Government, the state’s Ministries of Environment and Health, and the Chairman of Degema Local Government Area.
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They argued that the absence of the agencies and operators denied the committee the opportunity to obtain explanations on emergency response efforts, remediation plans and measures taken to protect affected residents.
The Chairman of the Committee, Julius Pondi, said the investigation was being conducted in line with the House’s constitutional oversight powers under Sections 88 and 89 of the 1999 Constitution (as amended).
He said the hearing was intended to establish the facts surrounding the incident, assess the response of regulatory agencies and industry operators, and determine the environmental, health and socio-economic consequences of the prolonged gas seepage.
“The committee considered it necessary to invite all relevant stakeholders because of the grave environmental, public health, socio-economic and ecological implications of the incident for the people of Billy Community and the wider South-South region,” Pondi said.
He noted that Billy Community depends largely on fishing, farming and other natural resource-based livelihoods, making the impact of the incident particularly severe.
“As representatives of the Nigerian people, we have a duty to ensure that operators in the oil and gas industry conduct their activities in accordance with extant laws, government regulations and international best practices, while ensuring that host communities are adequately protected from avoidable environmental and safety hazards,” he added.
Pondi said the committee was determined to establish both the immediate and underlying causes of the incident, evaluate emergency response measures and remediation efforts, and assess the wider impact on the affected community.
“I wish to emphasise that this committee approaches this engagement with an open mind. Our objective is neither to prejudge any individual or institution nor apportion blame without due process.
“Rather, we seek to establish the facts, identify operational or regulatory shortcomings where they exist, and make practical recommendations that will strengthen environmental governance and improve regulatory oversight,” he added.
The hearing became tense as lawmakers questioned NOSDRA over why the incident had remained unresolved several months after it was first reported.
Representing the Director-General and Chief Executive Officer of NOSDRA, Chukwuemeka Woke, Cytrus Nkangwung said the agency officially received notification of the incident on 25 November 2025, after reports of gas bubbling first surfaced the previous month.
He explained that the incident differed from a conventional oil spill because the gas was seeping naturally from the ground and water sources rather than escaping from any known oil and gas facility.
The NOSDRA’s Zonal Head, Augustine Bello, told the committee, “This incident is not the regular incident that attracts reporting. It is not a leak from any facility. It is gas bubbling that enveloped the community. When we became aware of it, we reached out to stakeholders within the community. It is different from a conventional oil spill.”
The explanation failed to convince the lawmakers.
The Chairman of the House Committee on Host Communities, Robinson Dekor, expressed frustration that regulators had yet to determine the source of the seepage despite months of investigations.
“I feel sad sitting here listening to what you are telling us today. Gas is bubbling from the ground, and after all these months, you are still telling us you do not know the cause.
“Today is a black day in the history of Nigeria that people’s lives could be on the line for this number of months and nothing has been done about it. You sit here suggesting to us that you do not even know what is responsible for it.
“It is a huge shame that people’s lives are at risk. Do you know how many people have died? Their livelihoods have been destroyed, yet nobody seems to care,” he lamented.
Lawmakers also questioned the absence of emergency relief for residents who have remained exposed to polluted air and contaminated water.
“What happened to the people of Billy?” Pondi asked, wondering why residents had continued to endure the crisis while investigations dragged on.
On his part, Dekor urged the committee to compel all absent operators and government agencies to appear before lawmakers.
“I want to suggest that we compel all these agencies to appear before this committee. Something must be done. People should not die simply because they live in oil-producing communities,” he stressed.
The committee also queried NOSDRA over its request for a N3.4bn presidential intervention fund despite ongoing investigations.
Responding, Bello said the proposed funding was intended to support emergency containment measures, environmental assessment and humanitarian interventions pending the outcome of scientific investigations.
Responding to lawmakers’ concerns, NUPRC maintained that there was no evidence linking the gas seepage to existing oil and gas infrastructure.
The Leader of the commission’s delegation and Director of Development and Production, Joseph Ogunsola, said preliminary scientific findings suggested the gas was naturally migrating from deep underground formations through groundwater pathways and boreholes.
“The result of our evaluation indicates that there is no relationship between any pipeline or facility and the character of the gas seepage. Scientific evidence available to us presently points to a subsurface occurrence rather than a failure of surface infrastructure,” he said.
Ogunsola acknowledged the severe impact of the incident on the community, saying, “Billy Community is severely affected. The water is contaminated; there are reports of air pollution and there are safety concerns.”
He disclosed that the commission had adopted a dual approach involving scientific investigation and humanitarian intervention.
According to him, relief materials have already been delivered through an industry-supported initiative, while a medical outreach and the provision of safe drinking water are expected to commence within two weeks.
“The Commission Chief Executive mobilised the industry because no operator has been found culpable. Nevertheless, we agreed that the industry must rally round and support the people of Billy while investigations continue.
“There is also a planned medical outreach in the next two weeks, while hydrological studies are ongoing to determine how best to provide uncontaminated potable water to the community,” he added.
On the possibility of relocating residents, Ogunsola said the commission had advised the appropriate authorities to consider a managed evacuation based on expert health and safety assessments.
“We cannot today determine the full extent of the impact of this seepage. Laboratory analysis shows there are gases that should not ordinarily be inhaled. The government should therefore consider managed evacuation of the affected residents following an appropriate health and risk assessment,” he said.
Despite the explanations, lawmakers insisted that the prolonged nature of the incident reflected serious shortcomings in environmental regulation and emergency response.
The committee directed all absent operators and relevant government agencies to appear at its next hearing, warning that scientific uncertainty must not become an excuse for delaying urgent intervention.
The Billy gas seepage, first reported in late 2025, is regarded as one of the most unusual environmental incidents in Nigeria’s oil-producing Niger Delta. Unlike conventional oil spills caused by ruptured pipelines or failed facilities, preliminary investigations indicate that the gas is naturally migrating from deep underground formations rather than originating from existing petroleum infrastructure.
While scientific investigations continue, the incident has heightened concerns over environmental safety, public health and regulatory preparedness in Nigeria’s petroleum-producing communities, with lawmakers insisting that immediate relief and stronger regulatory action are needed to protect residents and restore public confidence.
Energy
ExxonMobil Declares Force Majeure on Erha Crude Exports
An affiliate of ExxonMobil, Esso Exploration & Production Nigeria Limited, has declared force majeure on crude exports from its Erha deepwater field.
The Erha field, located on Oil Mining Lease 133 about 100 kilometres offshore in the western Niger Delta, is one of Nigeria’s largest deepwater assets with a production capacity of about 200,000 barrels per day.
The force majeure followed unexpected damage to the floating buoy supporting crude export operations at the Erha Floating Production, Storage and Offloading facility.
Confirming the development, a spokesperson for Esso Exploration & Production Nigeria Limited said, “The Force Majeure was declared due to unexpected equipment damage at the floating buoy supporting export operations at the Erha FPSO.”
According to the spokesperson the EEPNL is actively working to restore export operations. Relevant stakeholders have been notified, and regular updates are being provided.
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The disruption is expected to reduce Nigeria’s crude oil output if it persists, with possible implications for crude exports, foreign exchange inflows and government revenue.
The declaration comes after Nigeria had recorded gradual improvements in crude oil production following efforts to curb oil theft, pipeline vandalism and other operational challenges.
Energy
Nigeria Records Zero Aviation Fuel Imports for 13 Months
Nigeria’s domestic refineries have completely displaced imported Aviation Turbine Kerosene, commonly known as aviation fuel or Jet A-1, with official industry data showing that local producers solely supplied the country’s aviation fuel market over the past 13 months.
An analysis of the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s latest petroleum supply statistics showed that between June 2025 and June 2026, there was no recorded import of aviation fuel by Oil Marketing Companies, making domestic refineries the exclusive source of supply throughout the period.
The development marks a significant shift for Nigeria’s aviation fuel market, which had relied heavily on imported Jet A-1 for years due to inadequate domestic refining capacity.
The data showed that domestic refinery receipts fluctuated significantly during the review period, rising from 1.3 million litres per day in June 2025 to 1.5 million litres per day in July before climbing sharply to 3.5 million litres per day in August.
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Supplies later moderated to 1.6 million litres per day in September and 2.7 million litres per day in October, while no receipt was recorded in November. Output then surged dramatically to 14 million litres per day in December, the highest level recorded during the period.
In 2026, domestic refinery receipts fell to 6.0 million litres per day in January before dropping further to 1.6 million litres per day in February. Supplies later recovered to 2.1 million litres per day in March, increased to 3.0 million litres per day in April, rose further to 4.3 million litres per day in May before declining to 2.5 million litres per day in June.
Month-on-month data also showed that average ATK receipts dropped from 3.6 million litres per day in May to 2.5 million litres per day in June, representing a decline of approximately 31 per cent.
An analysis of the NMDPRA data showed that ATK receipts increased from 1.3 million litres per day in June 2025 to 1.5 million litres per day in July, an increase of 0.2 million litres per day or 15.4 per cent.
Supplies then surged to 3.5 million litres per day in August, representing a sharp increase of 2.0 million litres per day or 133.3 per cent over July. However, receipts declined to 1.6 million litres per day in September, a drop of 1.9 million litres per day or 54.3 per cent, before recovering to 2.7 million litres per day in October, reflecting an increase of 1.1 million litres per day or 68.8 per cent.
No domestic refinery receipts were recorded in November 2025, indicating a 100 per cent decline from October’s level. Supply rebounded strongly in December 2025, when domestic refinery receipts climbed to 14.0 million litres per day, the highest level during the review period.
Although a percentage comparison could not be made because no receipts were recorded in November, the December figure represented an increase of 14.0 million litres per day.
Receipts then fell sharply to 6.0 million litres per day in January 2026, a decrease of 8.0 million litres per day or 57.1 per cent, before dropping further to 1.6 million litres per day in February, down by 4.4 million litres per day or 73.3 per cent.
Supplies recovered modestly to 2.1 million litres per day in March, an increase of 0.5 million litres per day or 31.3 per cent, rose to 3.0 million litres per day in April, up by 0.9 million litres per day or 42.9 per cent, and increased further to 4.3 million litres per day in May, representing a gain of 1.3 million litres per day or 43.3 per cent.
However, the upward trend reversed in June 2026, as domestic refinery receipts fell from 4.3 million litres per day in May to 2.5 million litres per day, a decline of 1.8 million litres per day or 41.9 per cent.
Throughout the 13 months, no aviation fuel imports by Oil Marketing Companies were recorded, indicating that 100 per cent of Nigeria’s reported ATK receipts came from domestic refineries.
Industry data further showed that aviation fuel consumption remained relatively stable despite fluctuations in refinery receipts.
Consumption stood at 3.5 million litres per day in January before declining to 2.9 million litres per day in February. It fell further to 2.1 million litres per day in March before rising to 2.5 million litres per day in April and increasing to 3.1 million litres per day in May. Consumption moderated again to 2.9 million litres per day in June, representing a six per cent decline compared to the previous month.
The latest NMDPRA daily consumption figures also showed that aviation fuel demand averaged about 2.9 million litres per day, close to the country’s 2026 benchmark demand of three million litres daily.
The regulator noted that petroleum product consumption figures are based on volumes trucked into the domestic market.
The report also showed that ATK supply rose from 2.6 million litres per day in April to 3.6 million litres per day in May, representing an increase of about 38.5 per cent during that reporting cycle.
The disappearance of aviation fuel imports underscores the growing contribution of domestic refining following the commencement and expansion of operations at new and rehabilitated refineries across the country.
For years, Nigeria depended almost entirely on imported aviation fuel, exposing airlines to exchange rate volatility, high logistics costs and periodic supply disruptions. The growing role of local refineries is expected to improve product availability, shorten supply chains and reduce the country’s dependence on imported petroleum products.
The development also aligns with the Federal Government’s broader objective of achieving energy security through increased domestic refining capacity while conserving foreign exchange previously spent on importing refined petroleum products.
Although monthly refinery receipts remained volatile, the absence of imported ATK throughout the review period suggests that local production has become sufficiently established to support Nigeria’s aviation fuel requirements, with consumption largely hovering around the country’s daily benchmark demand of three million litres.
The development comes against the backdrop of a sharp increase in aviation fuel prices that recently pushed up the cost of air travel in Nigeria.
In March 2026, Jet A-1 prices rose from about N900 per litre in January to N2,557 per litre by the end of March, representing an increase of 184 per cent. The surge, which was linked to disruptions in the global oil market following the Middle East crisis, placed significant pressure on airlines because aviation fuel accounts for about 40 per cent of their operating costs.
Although intense competition initially prevented carriers from immediately passing the higher cost to passengers, domestic airfares later rose to N200,000 and above for one-hour, one-way flights as Jet A-1 prices remained between N1,750 and N2,650 per litre.
The sharp increase in airfares intensified calls for a more reliable and affordable domestic supply of aviation fuel.
The latest supply figures, showing that domestic refineries accounted for all recorded ATK receipts between June 2025 and June 2026, could provide some relief to the aviation industry by reducing its exposure to imported fuel and foreign exchange volatility.
However, the significant month-to-month swings in local receipts, from a record 14 million litres per day in December 2025 to 2.5 million litres per day in June 2026, show that supply stability remains as important as domestic production.
Courtesy – The Punch





