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
Stakeholder Commends NMDPRA for Averting Aviation Fuel Crisis
An oil sector advocacy group has commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), for stabilising the aviation fuel market, noting that its recent intervention helped ease tensions across the aviation sector and averted potential disruptions to flight operations.
This was detailed in a statement on Tuesday under the signature of the centre’s Executive Director, Tunde Adeyemi.
It averred that the regulator’s clarification on fuel availability and pricing came at a critical time, when uncertainty over Jet A1 costs had heightened anxiety among airline operators and other stakeholders.
Adeyemi noted that confirmation of over 70 days’ aviation fuel sufficiency reflects a strong supply position and underscores the resilience of Nigeria’s downstream petroleum framework.
Adeyemi said the regulator’s data-driven disclosure helped counter widespread speculation, including claims of a potential spike in aviation fuel prices that had raised fears of flight disruptions and higher airfares.
“The timely intervention by the Authority provided much-needed clarity and helped calm frayed nerves within the aviation ecosystem. At a time when misinformation could have escalated into a crisis, the regulator chose transparency and facts, which is commendable,” he said.
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He added that aviation fuel remains a major cost driver for airlines in Nigeria, making stability in supply and pricing critical to the sector’s sustainability.
According to him, the Authority’s emphasis on the deregulated nature of the Jet A1 market is key to shaping realistic expectations, as pricing is influenced by global oil trends, foreign exchange fluctuations, and logistics costs.
“It is important for stakeholders to understand that aviation fuel pricing is market-driven. What the regulator has done is provide clarity that supports informed decision-making,” he said.
The group also highlighted the growing role of domestic refining in moderating fuel prices, noting that locally refined aviation fuel is being sold slightly below international benchmarks — an indication of improving local capacity.
It urged stakeholders across the aviation fuel value chain to avoid spreading unverified claims capable of distorting market realities or undermining confidence in the sector.
“Responsible engagement is critical. All parties must work together to sustain stability and ensure that recent gains are not reversed by panic or misinformation,” Adeyemi added.
Business
NNPC Ltd Delivers over 1bn Barrels to Dangote in April
There are indications from the trading arm of the Nigerian National Petroleum Company Limited (NNPC Ltd) that crude supplies to the Dangote Oil and Gas Company Limited (DOGC) in April 2026, increased to more than 1.03 million metric tonnes, equivalent to about 6.8 million barrels or over 1.08 billion litres.
An analysis of tanker vessel movements obtained by The PUNCH on Tuesday shows that the deliveries were executed through eight crude cargoes handled by NNPC Trading, reinforcing the state oil firm’s role as a major feedstock supplier to the 650,000 barrels-per-day Dangote refinery.
The shipments, sourced from key Nigerian crude streams including Anyala, Bonga, Odudu, Forcados, Qua Iboe, and Utapate, were routed through the refinery’s Single Point Mooring systems, SPM-C1 and SPM-C2.
The document shows that out of the eight cargoes, five have been fully discharged, while three others are still awaiting berthing or completion, indicating a steady pipeline of crude inflows into the refinery.
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This development comes amid the refinery’s continued complaints of supply inadequacies, with a total requirement of 19 cargoes monthly, and a recent report that the country imported 55.39 million barrels in January and February 2026.
A breakdown of the deliveries showed that Sonangol Kalandula initiated the supply chain, delivering 123,000 metric tonnes of crude from Anyala. The vessel arrived on April 5, berthed on April 8, and sailed on April 9.
This was followed by Advantage Spring, which supplied 128,190 metric tonnes from Bonga, arriving on April 11 and completing discharge by April 13.
Similarly, a vessel code-named Barbarosa delivered 125,000 metric tonnes from Odudu, while Sonangol Njinga Mban transported 129,089 metric tonnes from Bonga.
Another completed shipment, handled by Nordic Tellus, brought in 139,066 metric tonnes from Forcados, completing discharge on April 17.
However, three additional cargoes remain in progress. Advantage Sun, carrying 142,327 metric tonnes from Bonga, has arrived but is yet to berth. Also pending are Advantage Spring from Utapate with 120,189 metric tonnes, and Sonangol Kalandula from Qua Iboe with 126,471 metric tonnes.
In total, the NNPC Trading cargoes account for 1,033,332 metric tonnes of crude, underscoring what industry analysts describe as a “strong and sustained supply commitment” to the Dangote refinery.
Further findings show that, beyond crude deliveries, the Dangote refinery also received multiple shipments of refined products and blending components from international markets during the period.
Among them, Seaways Lonsdale delivered 37,400 metric tonnes of blendstock gasoline from Immingham, United Kingdom, handled by Vitol, between April 18 and 19.
Another vessel, Augenstern, supplied 37,125 metric tonnes of Premium Motor Spirit from Lavera, France, discharging between April 8 and 9.
From Norway, Emma Grace brought in 37,496 metric tonnes of PMS from Mongstad, while LVM Aaron delivered 36,323 metric tonnes from Lome, Togo.
Similarly, Egret discharged 35,498 metric tonnes of naphtha from Rotterdam between April 16 and 18, providing critical feedstock for gasoline blending.
A pending shipment, Mont Blanc I, carrying 36,877 metric tonnes of blendstock gasoline from Antwerp, Belgium, is yet to berth, while Aesop is expected to deliver 130,000 metric tonnes of residue catalytic oil from Singapore later in April.
In addition to NNPC Trading volumes, other crude cargoes from international and domestic traders also supported refinery operations.
Notably, Yasa Hercules delivered 273,287 metric tonnes of crude from Corpus Christi, United States, while Front Orkla brought in 264,889 metric tonnes from Ingleside, US.
A major cargo, Navig8 Passion, supplied 496,330 metric tonnes of crude from Cameroon, highlighting regional supply integration.
Domestic contributions included Harmonic, which delivered nearly 993,240 barrels from Ugo Ocha, and Aura M, which supplied 1 million barrels from Escravos, alongside an additional 651,331 barrels of cargo from Anyala.
Operational data indicate that most vessels berthed within one to two days of arrival and departed shortly after discharge, suggesting improved efficiency at the refinery’s offshore terminals.
The Dangote refinery, located in Lekki, Lagos, is Africa’s largest single-train refinery, with a nameplate capacity of 650,000 barrels per day.
The facility is expected to significantly reduce Nigeria’s dependence on imported petroleum products by refining domestic crude and supplying petrol, diesel, aviation fuel, and other derivatives to the local market.
NNPC Limited, through its trading arm, has remained a central player in supplying crude to the refinery under evolving commercial arrangements, amid ongoing reforms in Nigeria’s downstream oil sector.
Earlier this month, Africa’s richest man and President of the Dangote Group, Aliko Dangote, revealed in a report by Bloomberg that the refinery received 10 cargoes of crude oil from the state-owned oil firm in March, compared to an average of about five cargoes monthly since late 2024.
Dangote said the shipments included six cargoes paid for in naira and four in dollars, under the crude supply arrangement between the refinery and the NNPC.
“Nigeria doubled crude supply to Dangote Refinery in March as Africa’s top oil producer moved to shore up fuel availability after the Iran war disrupted Middle East shipments. Last month, they gave us six cargoes with payments in naira and four cargoes with payments in dollars,” he stated.
Business
Dangote Champions Infrastructure, Job Creation as Catalysts for Africa’s Economic Growth at IMF/World Bank Meetings
Africa’s leading industrialist and President and Chief Executive of the Dangote Group, Aliko Dangote, has reaffirmed the central role of infrastructure development, job creation, and private sector investment in accelerating Africa’s economic transformation.
Dangote made this assertion during a series of high-level engagements with global financial leaders on the sidelines of the recently concluded International Monetary Fund (IMF) and World Bank Spring Meetings in Washington, D.C. The meetings formed part of his ongoing efforts to mobilise investment flows and deepen strategic partnerships within Nigeria’s energy and industrial sectors.
During a keynote address at the World Bank’s Water Forward event, Dangote emphasised the urgency of scaling private sector participation to reposition water systems as enablers of industrialisation and employment across developing economies. He noted that infrastructure, particularly effective and sustainable water management, remains foundational to inclusive growth and long-term economic resilience.
“Africa’s growth story will be defined by our ability to invest in infrastructure that supports industry, creates jobs, and unlocks productivity across the continent,” Dangote said. “When the private sector is fully engaged, especially in critical areas like water and energy, it becomes a powerful engine for inclusive and sustainable development,” he said.
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As part of his engagements, Dangote also held strategic discussions with senior global financial leaders, including World Bank President Ajay Banga, focusing on accelerating capital inflows into Africa’s industrial sector. He stressed that rapid industrialisation is vital to strengthening economic resilience, promoting diversification, and reducing the continent’s exposure to external shocks.
Dangote further outlined the Group’s Vision 2030 strategy, which targets the significant expansion of operations across the Dangote Refinery, Fertiliser and Petrochemical Complex, and other business units, with the goal of achieving annual revenues of US$100 billion. According to him, the strategy reinforces the Group’s long-standing commitment to Africa-led industrial growth and sustainable development.
Reiterating his position, Dangote underscored that robust private sector participation — backed by reliable infrastructure — is essential to unlocking the economic value of water resources and advancing inclusive development across Africa.
The World Bank event attracted a distinguished audience, including heads of government, the United Nations Secretary-General, leaders of European development institutions, and representatives of multilateral development partners.





