Business
Law Firm Applauds Granting IOCs 100% Access to Export Earnings
The recent move by the Central Bank of Nigeria (CBN) to grant International Oil Companies (IOCs) access to 100 percent of their export proceeds mark a decisive shift in the country’s foreign exchange management strategy, experts at Udo Udoma & Belo-Osagie have said.
Describing the policy as a turning point for upstream investment competitiveness, the corporate and commercial law firm, covering energy, finance, telecoms, cross-border transactions, among others, stated that the development shifted the country from economic controls to investor-friendly FX framework.
In a policy brief, titled, “A Strategic Reset for Nigeria’s Upstream Sector: Implications of the CBN’S 2026 Cash Pooling Reforms,” the firm maintained that for banks, that also implied a heavier compliance burden, with potential sanctions for lapses under existing foreign exchange regulations.
In a circular issued on March 25, 2026, the apex bank had dismantled the cash pooling restrictions introduced in 2024, effectively allowing oil firms to freely repatriate all export earnings without retention requirements.
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The directive, which took immediate effect, replaced earlier rules that mandated oil companies to retain half of their proceeds within the domestic banking system for up to 90 days.
According to Udoma & Belo-Osagie, the development reflects a broader recalibration of policy priorities, shifting from an earlier emphasis on foreign exchange liquidity retention to a more market-oriented framework designed to attract and sustain capital inflows into Nigeria’s oil and gas sector.
The law firm stated that the 2024 framework emerged at a time of acute foreign exchange pressures, when authorities sought to stabilise the naira and deepen liquidity by temporarily restricting capital outflows. Under that regime, authorised dealer banks were permitted to pool only 50 per cent of export proceeds on behalf of oil companies, with the balance subject to delayed repatriation.
While that approach supported short-term macroeconomic stability, Udo Udoma and Belo-Osagie argued that it also introduced operational constraints for international oil companies, particularly in managing global treasury functions and meeting financing obligations tied to upstream projects.
The new directive, however, restored full treasury flexibility, aligning Nigeria’s regulatory environment with prevailing global practices in the oil and gas industry, the firm stated. It said the policy was also critical at a time when competition for upstream capital had intensified, with investors increasingly favouring jurisdictions that offered predictable and efficient capital mobility.
Udoma & Bello-Osagie stated that the removal of cash pooling requirements would enhance liquidity management for oil firms, improve cash flow predictability, and simplify intercompany funding structures, all of which were essential for large-scale exploration and production investments.
The firm added that the policy also signalled regulatory responsiveness, indicating that authorities are willing to adapt frameworks in line with evolving market conditions and stakeholder engagement.
But despite the liberalisation, the firm said the central bank had retained strict compliance obligations for authorised dealer banks, which must now ensure proper documentation of all transactions and submit monthly reports to the regulator’s Trade and Exchange Department. It explained that this marked a transition from pre-transaction approvals to a post-transaction monitoring system aimed at maintaining transparency without stifling operational efficiency.
Udoma & Bello-Osagie stated, “In practical terms, the directive restores full treasury flexibility for IOCs while maintaining a structured compliance and reporting framework through ADBs.
“The removal of the cash pooling requirement is a significant liberalisation measure with several important legal and commercial consequences, particularly within the upstream petroleum sector where export proceeds underpin project economics.”
On the implications for IOC operations and investment agreements, the brief added, “IOCs that have incorporated the previous cash pooling framework into their intercompany treasury arrangements, joint operating agreements, or financing documents should review whether any consequential amendments are required.
“In particular, where FX repatriation timelines and retentions were expressly contemplated in loan covenants, offtake arrangements, or cash waterfall provisions, legal counsel should assess the impact of this change.
“Project finance structures, reserve-based lending arrangements and upstream development financing models may also require recalibration to reflect restored cash flow flexibility and revised assumptions around fund mobility.”
Importantly, it stated that the removal of cash pooling restrictions operated alongside existing statutory obligations, including domiciliary account requirements and local content considerations, reinforcing an integrated and commercially responsive regulatory environment.
The brief said, “For the Nigerian economy, the development reinforces ongoing efforts to deepen the FX market, strengthen investor confidence and position Nigeria as a competitive destination for upstream oil and gas investment.
“For IOCs and investors, the restoration of full access to export proceeds enhances liquidity management, improves cash flow predictability and supports more efficient capital allocation decisions within global portfolios.”
Business
DPRP’s Free Fuel Delivery Expands to Kano, Imo, Nearly 10 More States
In a move expected to reduce distribution costs for independent petroleum marketers and create room for lower petrol prices at the pump, the Dangote Petroleum Refinery & Petrochemicals (DPRP) has expanded its free petroleum product delivery initiative to Kano, Imo, Anambra and Nasarawa States.
A company statement on Sunday in Lagos, has it that the initiative, which began with deliveries to Lagos, Ogun, Rivers, Kaduna, Abuja and Delta States, is designed to bring petroleum products closer to marketers and retailers while removing the cost of transporting products over long distances from the refinery to various parts of the country. By absorbing the delivery cost, the refinery is reducing one of the key expenses built into the downstream distribution chain.
Group Executive Director, Commercial Operations, Oil & Gas, WAEP and Fertiliser, Fatima Aliko Dangote, said the initiative was designed to ensure that the benefits of domestic refining translate into tangible savings for businesses and consumers. “The value of domestic refining must ultimately be felt beyond the refinery gate. By absorbing the cost of delivering petroleum products to our customers, we are removing a significant component of the distribution burden and creating room for those savings to flow through the value chain to consumers. Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria.”
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The expansion has been welcomed by the Independent Petroleum Marketers Association of Nigeria (IPMAN), which said the initiative would significantly reduce some of the financial and logistical pressures confronting independent marketers and contribute to lower prices for consumers.
National Publicity Secretary and Public Relations Officer of IPMAN, Chinedu Ukadike, said the initiative addresses a longstanding challenge in the petroleum products distribution chain, where marketers commit substantial funds to product purchases and may then have to wait for extended periods before their orders are loaded and transported.
“This gesture, if sustained, will be able to alleviate the sufferings of independent marketers,” Ukadike said. “There has been the issue of financial hold-up, whereby marketers pay for products and are not loaded for days and weeks, and they suffer unnecessary hardship bringing the product down.”
According to him, the refinery’s delivery arrangement reduces the period for which marketers’ funds remain tied up, improves cash flow and allows businesses to deploy their capital more efficiently.
“This time around, Dangote has made it very, very easy for marketers. Marketers are jubilating, and you will see the return on investment as an independent marketer. Your money will not be tied down,” he said.
Ukadike said the initiative could also have a direct impact on pump prices because transportation represents a cost that ultimately forms part of the price paid by consumers.
“You also have less risk, and you have petroleum products at your doorstep. Other consumers will also see that our pump price will not continue to go up. The more Dangote brings down its pump price, the more independent marketers will bring down theirs,” he said.
The reduction in distribution costs is particularly significant for marketers serving locations far from the refinery. Under conventional distribution arrangements, petroleum products transported over long distances incur additional costs associated with haulage, vehicle operations, driver expenses, insurance, road risks and other logistics. Removing or reducing these costs can improve the economics of supplying those markets and create greater scope for competitive retail pricing.
The initiative also reduces the operational risks associated with moving large volumes of petroleum products over long distances. By taking products closer to their destination markets, the refinery is helping to shorten the supply chain and improve the reliability and efficiency of product distribution.
Ukadike commended the management of Dangote Refinery for the initiative and urged the company to extend the programme to more locations across the country, particularly in the northern states, to promote wider access to competitively priced petroleum products.
He described the development as a practical demonstration of the benefits of competition and deregulation in Nigeria’s downstream petroleum sector.
“This is the beauty of deregulation and competition,” he said.
The expansion comes as Nigeria’s downstream petroleum sector continues to adjust to the growth of domestic refining capacity and a more competitive market environment. The Dangote Petroleum Refinery, with a capacity of 700,000 barrels per day, is increasingly supplying refined petroleum products to the domestic market while also expanding its presence in international markets.
The free delivery initiative adds another dimension to the refinery’s impact on the downstream sector. Beyond increasing domestic supply, the refinery is now taking steps to reduce the cost of moving those products from the refinery to consumers.
For motorists and households, the potential benefit is straightforward: the lower the cost of moving petrol through the supply chain, the greater the opportunity for marketers to reduce the price consumers pay at the pump.
Business
Safe Driving: Dangote Transport Unveils Novel Real-Time Driver Monitoring Control Room
Dangote Transport has taken another major step towards improving road safety with the launch of a state-of-the-art Driver Monitoring Control Room (DMCR) that allows drivers operating its trucks to be monitored in real time while on transit across Nigeria.
The innovative facility, located at the Dangote Transport operational base in Ibese, Ogun State, highlighted the company’s commitment to leveraging technology and best practices to reduce road accidents and improve drivers’ behaviour.
The Head of Operations, Dangote Transport, Ibese, Mr. David Idiege, described the DMCR as one of the latest additions to the company’s comprehensive safety architecture.
According to him, the facility enables transport control personnel to observe drivers while they are on the road, monitor compliance with safety standards and promptly intervene whenever risky behaviour is detected.
“We are constantly looking for innovative ways to strengthen safety across our transport operations. The Driver Monitoring Control Room represents another significant milestone in our efforts to ensure that all journeys are conducted safely and responsibly,” Idiege said.
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He explained that the initiative forms part of a broader strategy aimed at reducing accidents, enhancing operational efficiency and safeguarding both the drivers and other road users.
“Safety remains our highest priority. We recognize the responsibility that comes with operating a large fleet of vehicles across the country. That is why we continue to invest heavily in technology, systems and training that help us maintain the highest safety standards,” he stated.
Idiege disclosed that the company has, over the years, implemented several safety measures designed to improve driver performance and minimize risks on the road.
He listed these initiatives to include speed limiters, vehicle immobilizers, speed boosters control systems, facial recognition devices, journey management protocols, mandatory drug and alcohol testing, compulsory rest periods for drivers, periodic recertification as well as regular training and retraining programmes.
“Our approach is holistic. Technology alone is not enough. We combine technology with strict operational procedures, driver welfare programmes, competency assessments, recertification exercises and continuous capacity building to ensure that our drivers remain professional and safety-conscious at all times,” he added.
He further explained that compulsory rest policies help combat fatigue, one of the leading causes of road accidents globally.
“We do not encourage driver fatigue. Every driver is required to comply with our journey management procedures and mandatory rest schedules. We understand that alert and healthy drivers make safer decisions on the road,” he said.
Also speaking during the tour, the Head of Transport Control, Mr. Ifeanyi Ezeala, who conducted journalists around the control facility, explained that the on-board camera system installed across thousands of Dangote trucks was facilitated by technology partner Nova Tracks.
According to Ezeala, the camera system enables real-time visibility into driver conduct and provides transportation managers with critical information needed to proactively address safety concerns.
“The technology allows us to monitor driver activities while journeys are in progress. The cameras provide live feeds and alerts, helping us detect behaviours that could compromise safety and enabling us to take immediate corrective action,” Ezeala explained.
He noted that the monitoring solution is not intended to police drivers but rather to support them and ensure they operate under safer conditions.
“Our objective is preventive rather than punitive. We want to identify potential risks before they develop into incidents. By having visibility into operations in real time, we can contact drivers where necessary, provide guidance and support safer driving decisions,” he said.
Ezeala stated that the system has enhanced fleet management capabilities by providing valuable operational data that strengthens decision-making and supports the company’s overall safety objectives.
“The transportation industry is evolving rapidly, and technology now plays a critical role in fleet safety management. By integrating advanced monitoring systems into our operations, we are creating a safer environment for our drivers and for all road users,” he said.
He commended Nova Tracks for its role in deploying the technology and supporting the company’s vision for safer transportation operations.
The Driver Monitoring Control Room is the latest in a series of investments by Dangote Transport aimed at promoting safe driving, reducing accident risks and advancing operational excellence across its nationwide logistics network.
With thousands of trucks moving raw materials and finished products daily across the country, the company says it will continue to deploy innovative solutions that support safer journeys, improve driver performance and contribute to a safer road transport ecosystem in Nigeria.
Business
NNPC Ltd Expresses Concern for Dearth of Skills in Energy Sector
Nigeria’s widening energy workforce and technical skills gap has left the country on the verge of losing control of its energy future unless the matter is addressed with the urgency it deserves.
The Nigerian National Petroleum Company Limited (NNPC Ltd) raised the concerns on Thursday at the Oil and Gas Trainers Association of Nigeria (OGTAN) HCD Conference and Expo in Warri, Delta State.
The Chief Human Resources Officer, NNPC Limited, Kazachiyang Nuhu, observed the convergence of the Petroleum Industry Act (PIA), the Decade of Gas, which raised participation by local operators and the global energy transition already created higher demand for technical talent that the industry was struggling to supply.
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In a presentation at the OGTAN conference, Nuhu maintained that the changing energy landscape, driven by policy, market shifts, technology and changing expectations of younger workers, had created a technical talent demand that Nigeria could not afford to ignore.
He said artificial intelligence, digitalisation and automation were compressing skill cycles, while capital was increasingly moving towards liquefied natural gas, cleaner molecules and low-carbon opportunities.
Nuhu warned that unless the workforce was urgently reskilled and repositioned, Nigeria could lose its ability to effectively participate in the emerging energy economy.
“Reskill, reposition or risk becoming a spectator in our own industry,” he told stakeholders at the conference.
He identified workforce and skills gaps, an ageing workforce and brain drain, commonly referred to as ‘japa’, among the major challenges confronting the industry.
He also identified a widening disconnect between academia and industry, particularly the gap between what was taught in educational institutions and what the industry required from employees from day one.
Other challenges highlighted included weak safety culture, spills and flaring; vandalism, crude theft, surveillance and metering gaps; supply of quality materials and equipment; ageing assets, reliability and project overruns; digital oilfield and environmental, social and governance skills; as well as refinery operations, product quality, LPG safety and trade finance.
Nuhu noted that the solution required a fundamental shift in how human capital development was approached across the industry, noting that training must become more closely linked to production, safety, reliability and cost, while programmes must be based on current field realities rather than generic manuals.
He called for training to be benchmarked against global standards and supported by emerging technologies such as simulators, digital twins, virtual and augmented reality and artificial intelligence. “Every naira spent on training must translate to a safer plant, a skilled employee, and a stronger balance sheet,” he added.
Nuhu disclosed that the NNPC Ltd would also change the basis on which it engaged training providers, stressing that trainers must understand the direction in which the industry was heading. “We will partner only with trainers who teach the industry we are becoming, not the one we are leaving behind,” he said.
He said the company was already developing its workforce through initial professional development, career pathways, industry exposure, leadership pipelines, mentorship and knowledge transfer.
According to him, the ultimate measure of Nigerian content should be whether Nigerians were acquiring the expertise required to lead major projects to international standards, saying, “Not how many Nigerians were hired, but how many world-class Nigerians led the project.”
Nuhu argued that true local content should be measured by expertise rather than percentages, with future industry needs spanning technical, digital, commercial and human capabilities.
He said this would include skills in renewable integration, gas-to-power, AI, predictive maintenance, energy economics, carbon markets, sustainable finance, adaptive leadership and systems thinking.
He challenged Nigeria to determine whether it would become a contributor or merely a consumer of the future energy economy. He called on industry players, trainers and academia to move from parallel efforts towards a unified capacity compact.
OGTAN President, Chris Osarunmewense, stressed that the association was seeking to sustain conversations around how Nigeria could develop a workforce capable of delivering on the promises of companies operating in the oil and gas industry.
Osarunmewense said human capital development was a continuous process that required the industry to recognise and nurture people’s potential.
“Human capital develops by progression. At OGTAN, therefore, we treasure the potential of people who have developed human capital in nature to effectively operate within the oil and gas industry,” the OGTAN boss said.
He added that the conference was designed to bring stakeholders together and discuss the ways to address the skill gaps in the industry. According to him, the decision to hold the 2026 conference in Warri, rather than Lagos or Abuja, was deliberate, given the city’s place in the history and development of Nigeria’s petroleum industry.
“For us, this choice was meaningful. Warri is not simply a venue; it is part of the history of Nigeria’s oil and gas industry,” he added.
Osarunmewense said the Niger Delta had for decades remained at the heart of Nigeria’s petroleum industry, with the region’s history of exploration, production, processing, services, technical manpower and community development deeply intertwined with the country’s broader energy economy.
The OGTAN president said the association wanted international participants to experience the Niger Delta not merely as a geographical location associated with petroleum production but as a region with talent, enterprise, technical expertise, institutions, communities and significant human capital potential.
He said the collaboration with the Petroleum Training Institute (PTI) further strengthened Warri’s suitability for the conference because of the institute’s role in technical and professional training in the petroleum sector.
Osarunmewense noted that the industry’s human capital challenges could not be resolved by any single stakeholder, stressing the need for collaboration across the value chain.
“The challenges before the industry are too complex for any single organisation to solve. The government alone cannot solve it. Regulators cannot solve it alone. Oil and gas companies cannot solve it alone. Training providers cannot solve it alone. Universities and technical institutions cannot do so alone either. We need collaboration across the value chain,” he emphasised.





