Connect with us

Business

FG Wades into Fuel Profiteering

Published

on

The Nigerian government has cautioned players in the oil and gas segment that she would not tolerate profiteering and sharp practices that exploit consumers.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made the assertion in Abuja, on Monday noting that fuel prices in Nigeria must continue to be determined by market forces under the deregulated regime, but that the government would not fold her hands while the citizens are being fleeced.

He bared his mind at the opening ceremony of the 2026 General Counsel and Legal Advisers Forum organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

He maintained that the era of government-fixed petrol prices was over, but that deregulation did not mean regulators should abdicate their responsibility to protect consumers.

Nigerians consider his remarks appropriate, because there are renewed public concerns over frequent fluctuations in petrol prices, while some filling stations allegedly manipulate dispensing meters to take advantage of consumers under the guise of a deregulated market.

Addressing lawyers, general counsels and other stakeholders, Lokpobiri said the NMDPRA had a statutory responsibility under the Petroleum Industry Act (PIA) to ensure not only the availability of petroleum products but also to prevent unnecessary profiteering.

He stressed that, “Pricing is also another issue, and I think that is one issue that I want this forum to deal with today. As part of the requirements of deregulation, prices have to be determined by market forces. The NMDPRA has a unique responsibility, compounded by the PIA, to ensure not only that products are available but also that unnecessary profiteering is stopped.

“Yes, the market is definitely deregulated, but that doesn’t limit deregulation. I listen to discussions on television every day. They are calling me out. Mr. Lokpobiri should come and speak up.

“But I am not engaged in any press war with anybody. What is important is the reality of the situation in the industry. Primarily, market forces have to determine prices. But we also have a responsibility as a government to ensure that there is no profiteering. The PIA specifically vested government institutions, including the NMDPRA.”

The minister also expressed concern over alleged fuel dispensing fraud at some filling stations. “It is also important that Nigerians get the full benefit of what they buy. I have seen situations where somebody buys 50 litres, but what he gets is 30 litres.

“There are offices across the country with the responsibility of ensuring that our men and women are on the field and that if somebody buys 50 litres, he gets 50 litres. Nigerians deserve fairness and transparency in the marketplace,” he said.

Lokpobiri also urged regulators and operators to move beyond compliance with laws, arguing that investor confidence depends on regulatory certainty and predictability. “For far too long, the dominant question in our regulatory conversation has been: are operators compliant? This question is important and will always remain important, but it is no longer sufficient.

“The more consequential question today is whether our regulatory agencies are doing their jobs. Are our regulations and legal frameworks clear, consistent and predictable enough to earn the confidence investors need to commit their capital, not just for the short term but for the long term?

“In my opinion, compliance is just the foundation that we need to build on. Regulatory certainty is one of the most critical ingredients in attracting investors to any country,” he said.

The minister noted that Nigeria had become more competitive in attracting petroleum investments since 2023. “I want to be very direct with you. We have been competing well since 2023. Before 2023, we had a 10-year period where there was virtually no investment in Nigeria.

“Today, we take about 70 per cent of investments flowing into the African continent. That means we are competing well. That is not where I want us to be, but we must appreciate the gains we have made so that they can inspire us to do more and attract even greater volumes of capital,” he said.

Earlier, the Authority Chief Executive of the NMDPRA, Rabiu Umar, said the industry had moved beyond discussions centred solely on compliance to broader issues of regulatory certainty, transparency and investment confidence.

“Compliance, while essential, is not an end in itself. Compliance was and remains the foundation. The broader objective is to create a petroleum industry characterised by certainty, predictability, transparency and confidence; a sector in which investors can commit capital with clarity and operators can make long-term business decisions with confidence,” he said.

Umar said that five years after the enactment of the PIA, attention had shifted from interpreting the law to evaluating its implementation and investors’ perception of Nigeria’s regulatory environment.

He added that the forum would provide a platform for continuous engagement between regulators and operators, while acknowledging that implementation challenges and areas of ambiguity still existed within the regulatory framework.

In his presentation, the Secretary and Legal Adviser of the NMDPRA, Joseph Tolorunse, pointed out that regulatory certainty had ensured stability of fiscal rules throughout project lifespans and helped avoid policy reversals.

According to him, the PIA had made Nigeria’s oil and gas industry more competitive, adding that competitiveness would attract investment, with “investment leading to growth.”

“Permit me to conclude by returning to the theme of this Forum. Beyond Compliance: Driving Regulatory Certainty and Investment Confidence in Nigeria’s Petroleum Sector.

“These words capture an important truth. Compliance will always remain the foundation of an effective regulatory system, but it cannot be the destination. The destination is confidence. Confidence that investors can make long-term decisions with clarity,” he said.

Business

ADF Targets 5 Million Students, 2 Million Vulnerable Women

Published

on

In a bold move to deepen retail participation in Nigeria’s capital market, the Aliko Dangote Foundation (ADF) has unveiled a share grant initiative aimed at helping up to five million tertiary students and two million vulnerable women become shareholders in Dangote Petroleum Refinery and Petrochemicals (DPRP) through its Initial Public Offering (IPO).

Managing Director and Chief Executive Officer of ADF, Zouera Youssoufou, disclosed that the Foundation will match qualifying share subscriptions by eligible beneficiaries. Under the programme, students who subscribe for the minimum 10 shares worth N5,250 will receive an additional 10 shares funded by the Foundation, subject to the approved process and allocation, effectively doubling their holdings to 20 shares.

Speaking during a television interview, Youssoufou said the initiative was designed to turn the refinery’s “People’s IPO” vision into reality by giving traditionally underserved groups a direct stake in one of Africa’s largest industrial assets.

“When Aliko announced the IPO, he described it as the IPO of the people and wanted as many Nigerians as possible to participate,” she said.

READ ALSO: FG Lacks Capacity to Meet Dangote Refinery Crude Demand

According to her, students and vulnerable women were specifically selected because they have historically been underrepresented in the capital market.

The ADF said it is prepared to support up to five million students enrolled in Nigerian tertiary institutions, including universities, polytechnics and colleges of education. Eligible applicants must be at least 18 years old and enrolled in a recognised institution. The Foundation is working with relevant educational authorities to verify beneficiaries.

Youssoufou revealed that about N25 billion has been earmarked for the student component of the scheme, while the broader programme for students and vulnerable women is valued at approximately N40 billion.

She emphasised that the intervention is a grant, not an investment, with all shares ultimately belonging to the beneficiaries.

“The shares end up with the beneficiary. Our goal is to help people who may never have had the opportunity to own shares begin building long-term wealth,” she said.

Beyond students, ADF plans to support up to two million vulnerable women, including widows, women living in extreme poverty, persons with disabilities, and widows of members of the Armed Forces. The Foundation is partnering with state governments, the Ministry of Women Affairs, the Armed Forces and other institutions to identify eligible participants.

According to Youssoufou, the initiative is not only about widening ownership in the refinery but also about promoting financial literacy, encouraging a culture of savings and investment, and helping Nigerians build sustainable wealth through participation in the capital market.

Continue Reading

Business

FG Lacks Capacity to Meet Dangote Refinery Crude Demand

Published

on

Nigeria’s efforts to increase production and curb crude oil theft still leaves her short of meeting the demands of the 700,000 barrels demand of the Dangote Petroleum Refinery and Petrochemicals (DPRP).

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made the disclosure during an interview on Channels Television’s Politics Today at the weekend.

The disclosure comes amid renewed debate over government intervention in the petroleum market, with proposals for production subsidies, the 30-days petrol discount and other measures to support domestic refining and reduce the cost of petroleum products.

READ ALSO: Fuel Discount: Presidency Explains Why Atiku’s Production Subsidy Proposal May Fail

He explained that Nigeria’s total crude oil production does not translate into an equivalent volume available for allocation by the government.

Oyedele said Nigeria’s crude oil production of about 1.8 million barrels per day was shared among parties operating under production-sharing contracts and joint ventures, while production costs, royalties and other obligations further reduced the volume available to the government.

“Under the production-sharing contract and joint venture, they share these things, and the ratios vary. Let’s say roughly 45:55,” he said.

He explained that oil producers first recover eligible production costs through cost oil, while royalties and contractual sharing arrangements also determine the quantity ultimately accruing to the government.

“The long and short of what I’m telling you is whatever is left for Nigeria, we exhaust it almost entirely because of fuel subsidy,” he said.

According to the minister, the situation was particularly severe before President Bola Tinubu introduced the economic reforms in May 2023, when the Nigerian National Petroleum Company Limited (NNPC Ltd), which holds the country’s crude on its behalf, had less than 100,000 barrels of freely available crude remaining.

He said the government had exhausted much of its revenue and resorted to printing money before turning to future crude oil production to secure commitments used to finance present consumption.

“That was a ticking time bomb,” Oyedele said, describing the arrangement under which future oil production was committed to support current fuel consumption.

The minister, however, acknowledged improvements following increased production, efforts to reduce crude oil theft and the renegotiation of some existing commitments that had tied down the country’s crude.

He cited comments by business leader Tony Elumelu, who had previously expressed frustration over the scale of crude oil theft in Nigeria, and subsequently reported an improvement in the situation.

Despite these gains, Oyedele said the country was yet to attain the level of freely available crude required to supply the Dangote refinery with its full daily requirement.

“But we are still not at the point where we can give Dangote 700,000 barrels,” he said.

The minister dismissed proposals for the government to supply the refinery with discounted crude or at production cost, arguing that such proposals failed to recognise the constraints on the volume of oil available for allocation.

“We don’t have enough to service Dangote. Dangote imports crude,” he said.

He added that the naira-for-crude arrangement introduced by the Federal Government had helped provide some stability but had not eliminated the supply constraints.

According to him, sustained increases in crude oil production and the release of additional barrels from existing commitments would eventually enable Nigeria to meet the requirements of Dangote and other domestic refiners.

“As we ramp up production and we free up some barrels, we’ll get to a point where we’ll be able to give Dangote everything he wants and other refiners will be able to get enough,” he said.

Oyedele also expressed hope that Nigeria would eventually refine all the crude oil it produces domestically and export refined petroleum products rather than crude.

The disclosure comes amid renewed debate over government intervention in the petroleum market, with proposals for production subsidies and other measures to support domestic refining and reduce the cost of petroleum products.

Oyedele further maintained that achieving that ambition will depend not only on the expansion of refining capacity but also on sustained growth in crude oil production and the availability of additional volumes for domestic processing.

Continue Reading

Business

NCDMB, Renaissance Empower 60 with Oil & Gas Technical Skills

Published

on

NCDMB Emerges Best MDA In Ease Of Doing Business Ranking

A partnership of the Nigerian Content Development and Monitoring Board (NCDMB), Renaissance Africa Energy Company Limited, has unveiled a 12-month training program at Nigeria Machine Tools Limited (NMTL), Osogbo, Osun State.

It was gathered that the initiative will equip 60 young Nigerians with specialised expertise in oil and gas engineering as well as other critical technical skills, fostering a new generation of industry-ready professionals.

The programme is on the back of the Nigerian Content Human Capacity Development (NC HCD) Training Programme for Renaissance Africa Energy Company Limited’s EPU Phase 2 Gas Development Project.

READ ALSO: Domestic Flight delays, Cancellations Compound Air Travellers’ Woes

It is designed to equip participants with advanced technical expertise, with the curriculum spanning engineering design, fitter machining, conventional machine tool operations, programming, computer-aided design (CAD), computer-aided manufacturing (CAM), electrical and mechanical maintenance, and document control.

Structured over 12 months, the programme combines six months of intensive classroom instruction with six months of supervised on-the-job training in reputable companies. Graduates are expected to earn internationally recognised certifications upon completion.

During the official launch at the NMTL, Osogbo, Osun State, the NCDMB’s Director of Capacity Building, Engr. Abayomi Bamidele, reaffirmed the Board’s commitment to bridging critical technical skills gaps in Nigeria’s oil and gas industry.

Represented by Tare Bufazi, assistant manager, Human Capacity Development, Bamidele described the initiative as a strategic intervention to address manpower shortages and prepare Nigerians for meaningful participation across the oil and gas value chain.

“The importance of this programme cannot be overstated,” he noted, revealing that the 60 trainees—comprising 33 graduates and 27 vocational trainees—would undergo specialized training tailored to industry needs. He emphasized that NCDMB’s mission extends beyond promoting local participation to building the technical capabilities required to sustain the sector. Human capacity development, he stressed, is central to strengthening local content, creating opportunities, and advancing the Federal Government’s industrialization agenda.

Bamidele urged participants to approach the programme with discipline and commitment, highlighting that it offers more than certificates—it builds practical competence and professional experience for long-term careers. He also acknowledged the contributions of Renaissance Africa Energy Company Limited, Seflam SGL, and the NMTL, whose collaboration made the initiative possible.

On behalf of Renaissance Africa Energy Company Limited, Richard Oyiborhor, Interface and Integration Manager for the NLNG Supply Project, reiterated the company’s dedication to nurturing Nigerian talent and strengthening local capabilities.

He commended the NCDMB’s leadership in advancing Nigerian content and praised the partnership with Seflam SGL and NMTL as a vital step in developing the nation’s industrial workforce.

Senior manager, Business Interface at Seflam SGL, Bisola Agboluaje, congratulated the trainees and traced the programme’s origins to 2024, when NCDMB approved the training plans. She described the initiative as a forward-looking investment in Nigeria’s technical talent pool.

The NMTL’s chief of operating officer, Obehi Ojeagha, welcomed the participants and lauded the collaboration. She emphasized the institution’s 46-year legacy in supporting Nigeria’s industrial development and expressed confidence that the trainees would acquire the skills, discipline, and experience needed to contribute meaningfully to the oil and gas sector.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

0
Would love your thoughts, please comment.x
()
x