Business
Lesotho Taking Steps to Strengthen Inclusive Growth
MASERU – A team from the International Monetary Fund (IMF), led by David Dunn, visited Lesotho during January 14-27 for discussions on economic policies in the context of the 2014 Article IV consultation. The team met with the Honorable Ministers of Finance, Development Planning, and Trade, Industry, Cooperatives, and Marketing, the Governor of the Central Bank of Lesotho (CBL), Honorable Members of Parliament serving on the Public Accounts Committee and Economic Cluster, other senior government and CBL officials, as well as representatives of the financial sector, business community, a trade union, and development partners.
At the conclusion of the visit, Mr. Dunn issued the following statement:
“Lesotho’s economy has performed well in recent years, despite a severe fiscal and balance of payments shock and adverse weather conditions for agriculture. Growth in real gross domestic product (GDP) averaged just over 5 percent a year between fiscal year 2010/11 and 2012/13 (April-March), while inflation remained moderate. Having a sufficient buffer of official international reserves was critical to this positive outturn. That is, when revenue from the Southern African Customs Union (SACU) dropped sharply in 2010/11 and 2011/12, Lesotho’s international reserves ensured that the loti’s hard peg against the South African rand remained firm. In addition, fiscal discipline was maintained so that when SACU revenues eventually recovered in 2012/13 and 2013/14, the authorities were able to successfully rebuild international reserves and fiscal buffers. The IMF supported Lesotho’s recovery from the crisis with a three-year credit arrangement, which ended in September 2013. Real GDP growth has remained strong in 2013/14—at around 6 percent—while inflation has come down slightly (to 5.1 percent, year-on-year, in December 2013). However, although economic growth has been robust, unemployment remains high and poverty is still widespread, especially in rural areas. In addition there is grave concern about poor health and social indicators.
“The IMF team agrees with the Lesotho authorities that the time is right to strike a new balance between policies for economic stability and inclusive growth, as outlined in the National Strategic Development Plan. In particular, there is scope for a scaling up of public investment, while still maintaining adequate international reserves and a healthy fiscal balance. Reducing recurrent expenditures—most notably, the public sector wage bill, which is among the highest in the world (relative to GDP)—would be critical for increasing space for investment spending. The IMF team encourages the authorities to complete the public service payroll audit currently being piloted in three line ministries, while also strengthening management of the payroll. The team also welcomes the government’s new policy to conduct a comprehensive appraisal for all investment projects before including them in the budget. This will help ensure that projects have high rates of return and support job-creating growth. However, the new appraisal process will likely lead to some delay in the scaling up of investment spending. To make sure that the resources are available when these projects are ready to go, the IMF team recommends generating savings now, by achieving a fiscal surplus this year and targeting a surplus in the 2014/15 budget.
“The mission welcomes the authorities’ new Financial Sector Development Strategy (FSDS), which calls for the sound expansion and deepening of financial services. Implementing the FSDS would improve access to finance to private businesses, helping private sector development. The IMF stands ready to support the efficient implementation of the FSDS with technical assistance. We also encourage the authorities to continue to make progress with on-going reforms to improve the business environment and other measures to enhance Lesotho’s international competitiveness, which will be critical for job creation. In particular, the IMF welcomes efforts to ease the business registration process, streamline the construction permit system, adopt regulations for the credit rating law, and modernize the insolvency proclamation, which would bolster collateralized lending.
“At the end of the mission, Ms. Antoinette Sayeh, Director of the African Department of the IMF, arrived in Maseru to participate in the National Economic Conference (NEC), which was co-hosted by the Ministry of Finance and the IMF. Ms. Sayeh also met with the Honorable Ministers of Finance and Development Planning, the Governor of the CBL, Honorable Members of Parliament serving on the Public Accounts Committee and Economic Cluster, and development partners. Ms Sayeh commended the authorities for the good economic performance in recent years and, going forward, encouraged them to make greater strides to reduce unemployment, inequality, and poverty. She appreciated the opportunity for the IMF to co-host the NEC and urged the authorities to take the lessons from this dialogue and redouble their efforts in the fight against poverty. In particular, Ms. Sayeh emphasized the importance of quickly gaining control over the government’s payroll and steadfastly implementing public financial management reform, which is critical for effective public services and scaling up investment to support inclusive growth.
“The IMF team and Ms. Sayeh thank the authorities for candid and constructive discussions and express their appreciation for the excellent support and warm hospitality during its visit.”
Business
PENGASSAN Urges Strategic Focus on Local Refining Expansion
The Nigerian authorities have been called upon to focus on strengthening domestic refining capacity.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) made the call in a communiqué issued at the end of the three-day PENGASSAN Energy and Labour Summit (PEALS 2026).
It stressed the need for adequate protection for refineries operating in the country.
The PENGASSAN said Nigeria must reduce the economic inefficiency of exporting crude oil while importing significant volumes of refined petroleum products by creating an environment that supports domestic refining and other value‑adding activities.
The communiqué, signed by the union President, Festus Osifo, and General Secretary, Jerry Amah, stressed the need to protect refineries, including Dangote Refinery and Waltersmith Refinery.
The association said the expansion would enable Nigeria to retain a greater share of the value generated from its petroleum resources while creating jobs, conserving foreign exchange and stimulating industrial development. PENGASSAN linked the growth to wider opportunities in petrochemicals, gas processing and other downstream activities.
READ ALSO: Umar Cautions Against Irregular Policies in Nigeria’s Oil Industry
The communiqué reads in part: “The summit called for sustained policies and investments to expand Nigeria’s domestic refining capacity and reduce the economic inefficiency of exporting crude oil while importing significant volumes of refined petroleum products. The need to protect refineries (such as Dangote Refinery, Waltersmith Refinery, etc.) within Nigeria’s jurisdiction was emphasised.
“Nigeria must progressively retain more value from its petroleum resources through domestic refining, petrochemicals, gas processing and other value‑adding activities capable of generating employment, conserving foreign exchange and stimulating industrial growth.
“Ultimately, the strength of Nigeria’s oil and gas industry will not be measured merely by the resources beneath the ground, but by the projects delivered, the value created, the Nigerian capabilities developed, the decent jobs sustained and the prosperity generated for the Nigerian people.”
The association also warned that abrupt policy changes, overlapping mandates, repetitive approvals and conflicting directives increase the cost of doing business and weaken Nigeria’s competitiveness for global energy capital.
The PENGASSAN called for faster regulatory approvals, digitalised processes and clearer timelines, arguing that the effectiveness of regulation should be measured by its impact on investment, production, government revenue, job creation and national value rather than simply by the number of licences or approvals issued.
On gas, the PENGASSAN advocated an integrated approach to developing Nigeria’s more than 215 trillion cubic feet of proven reserves, including investments in processing facilities, pipelines, storage, LNG, LPG and CNG infrastructure. It said gas should be deployed more aggressively for power generation, manufacturing, transportation, fertiliser and petrochemical production.
The association also urged stronger protection of workers’ rights, occupational safety and employment during mergers, acquisitions, divestments and asset transfers, saying sustainable investment requires skilled and fairly treated workers and that increased production must not come at the expense of workers’ lives and wellbeing.
In addition, the PENGASSAN said the next phase of Nigeria’s petroleum industry must focus on execution with measurable targets and clearly assigned responsibilities to ensure policies translate into projects, production, investment and sustainable employment.
Business
PENGASSAN to Link Up with NUPRC to Unlock 3mmbopd
Two key stakeholders in Nigeria’s oil and gas industry have resolved to work closed to unlock three million barrels per day (bpd) of crude oil by 2030.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), according to the new President of former, Comrade Bosun Olabiyi-Agoro, would be working closely with each other to attain the objective.
He made the disclosure on Wednesday while on a visit to the NUPRC corporate headquarters.
The Head, Media and Corporate Communications, NUPRC, Eniola Akinkuotu, who made the disclosure in a statement, also credited the PENGASSAN President with declaring that inasmuch as the union is open to negotiations, issues bordering on the rights of workers to freely associate and join the union are non-negotiable.
READ ALSO: Tinubu Banks on NLNG Train 7 to Boost Nigeria’s Gas-led Economy
He made it public that issues surrounding contract staffing will be one of the key issues his administration will address.
“The President of Nigeria has an ambition which he runs through the CCE which is to make sure that by 2030 we are able to produce three million barrels per day. All of us have to work to make that happen. It will be our happiness to make sure that that target is actually attained. We can assure you that we are here to collaborate. We will be very reasonable,” Olabiyi-Agoro assured.
On her part, the Commission Chief Executive, Oritsemeyiwa Eyesan, said the President Bola Tinubu-led Federal Government had been working assiduously to increase production as evidenced by the latest executive order which is targeted at deep offshore investments. She noted that production had risen from a low of 1.1mmbopd a few years ago to an estimated 1.755mmbopd in 2026.
Seeking the support of PENGASSAN to achieve this target, Eyesan, said industrial stability remained critical to hitting higher production targets.
“As you settle into your new role, be assured that the commission will give you 150 per cent cooperation. In addition to the support we will give you, we want to ask that we work very closely to actualise government objectives.
“We want to grow production from our current level to 3 million barrels in 2030. For gas, we are still doing under 8bcf and we want to grow that to 12bcf by 2030. So, let’s make that happen,” she stated.
Business
Tinubu Banks on NLNG Train 7 to Boost Nigeria’s Gas-led Economy
As the multi-billion-dollar Nigeria LNG Limited (NLNG) Train 7 Project reaches more than 90 percent completion, President Bola Tinubu has described it as critical to Nigeria’s gas-led economic agenda.
According to Tinubu, the successful delivery of the project would help expand Nigeria’s gas exports, create jobs, deepen local capacity and strengthen investor confidence in the country’s oil and gas sector.
The President spoke at the State House, Abuja, on Thursday when he received an NLNG delegation led by its Managing Director and Chief Executive Officer, Adeleye Falade.
The delegation briefed the President on the progress of Train 7, prospects for further expansion and challenges affecting the company’s operations and contributions to the national economy.
The discussions also covered the pricing and accessibility of liquefied petroleum gas (LPG), trucking along the Bonny-Bodo Road corridor, NLNG’s contribution to public revenue, its investments in the Bonny-Bodo Road and other social-impact projects, and the need for a more enabling business environment.
Tinubu congratulated Falade on his appointment, describing his assumption of office as coming at a defining period for the NLNG and Nigeria’s gas development ambitions.
Tinubu expressed the view that the completion of the Train 7 project must translate the country’s vast gas reserves into jobs, increased exports, industrial growth and long-term economic value.
“I congratulate you, Leye, on your appointment. Train 7 is at the centre of our national gas agenda. Its success matters not only to NLNG, but to Nigeria’s economic future,” the President said.
Tinubu commended the progress recorded on the project, describing Train 7 as a benchmark for project delivery, partnership, Nigerian content development and investor confidence.
He assured the NLNG management that the Federal Government would continue to improve the business environment, provide greater regulatory clarity and remove bottlenecks affecting major oil and gas investments.
“Nigeria is open for business, but it must be business that creates value at home — building capacity, supporting communities, protecting the environment and contributing to national prosperity. NLNG must continue to lead by example,” he added.
Responding, Falade thanked the President for his administration’s support for NLNG and the broader gas sector, assuring him that the company remained committed to the safe and successful completion of Train 7.
“With the project now over 90 percent complete, our immediate priority is to deliver the remaining work safely, efficiently and to the required quality, while preparing the plant for reliable and sustainable operations,” Falade said.
He said the project would increase Nigeria’s LNG production capacity, support export growth, create opportunities for Nigerian workers and businesses, deepen local participation and generate greater long-term value from the country’s gas resources.
Falade also restated NLNG’s commitment to supporting the domestic LPG market and improving access to cleaner cooking fuel for households and businesses.
He, however, called for coordinated action among the Federal Government, regulators and industry operators to increase domestic supply, improve storage and distribution infrastructure, eliminate avoidable costs and create a more transparent and efficient LPG market.
“Improving LPG accessibility is important to Nigeria’s energy transition and to the wellbeing of millions of Nigerian households. NLNG remains committed to supporting the domestic market, but improving affordability requires coordinated action across the entire LPG value chain,” he said.
The NLNG chief also sought the President’s intervention in addressing ease-of-doing-business challenges, particularly the proliferation of taxes, levies, charges and regulatory demands imposed by different tiers and agencies of government.
According to him, multiple and sometimes conflicting fiscal and regulatory obligations raise operating costs, create uncertainty and could discourage existing operations and future investments.
Falade assured the President that NLNG was ready to align more closely with the Federal Government’s development agenda and explore additional areas of partnership.
The meeting ended with a renewed commitment by the Federal Government and NLNG to sustain momentum on Train 7 as the project enters its final phase.
Both sides also agreed to strengthen their partnership to support the project’s successful delivery and NLNG’s broader contribution to Nigeria’s gas development and economic growth.






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