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Nigerian Airline Decries Impact of Global Oil Crisis
Global oil market disruptions occasioned by the closure of the Strait of Hormuz amid tensions involving the United States and Iran cost Nigeria’s domestic airlines operators dearly.
The Chairman of United Nigeria Airlines and spokesperson for the Airline Operators of Nigeria (AON), Prof Obiora Okonkwo, made the assertion, adding that his airline alone lost about N10bn within three months of the impasse.
According to Okonkwo, the geopolitical crisis triggered a rise in aviation fuel prices, worsening operating conditions for domestic carriers already battling high operating costs and infrastructure challenges.
The Strait of Hormuz, a narrow waterway between Iran and Oman, is regarded as the world’s most critical oil transit route, handling nearly 20 percent of global petroleum shipments. Its disruption sent shockwaves through global energy markets and significantly impacted Nigeria’s aviation industry.
He spoke during the unveiling of two newly acquired Boeing 737-800 Next Generation aircraft, registered as 5N-CFC and 5N-CFB, by United Nigeria Airlines. The aircraft were named after the Obi of Onitsha, Igwe Nnaemeka Achebe, and the late literary icon Chinua Achebe.
Reflecting on the airline’s recent challenges, Okonkwo acknowledged that reforms introduced by the Minister of Aviation and Aerospace Development, Festus Keyamo, had helped stabilise the sector, but external economic pressures remained severe.
“There are seasons when there are low passengers, but in the last three months, what we have seen is simply too much. We have lost about N10bn, N5bn, N6bn in a space of three months as a result of the closure of the Strait of Hormuz. We have to make up for the losses we have incurred in the last three months,” he said.
Despite the setbacks, the airline chief described the acquisition of the new aircraft as a major milestone and a sign of resilience in the Nigerian aviation sector.
“We have gathered here to celebrate. Two, three, four years ago, it was not clear what the future of aviation would be. There were issues, and in Nigeria, aviation was in total turmoil. But until our minister, Festus Keyamo, stepped in, we had a meeting in his office where he promised he would address the policy issues. Today, the right policies have helped us come this far,” he added.
Speaking on the choice of names for the aircraft, Okonkwo paid tribute to both Chinua Achebe and the Obi of Onitsha.
“Today we have one Achebe that introduced Africa to the whole world. He is from my hometown. Wherever I go around the world, I tell them that Okonkwo in Things Fall Apart is my great-great-grandfather. We have another Achebe who is a living legend and icon. We have here the Obi of Onitsha, Nnaemeka Achebe,” he said.
Providing insight into the airline’s expansion plans, he revealed that the newly acquired aircraft are part of a broader fleet acquisition programme, promising that more aircraft will arrive in the country before the year runs out.
“It is going to be six aircraft in total, and we just have two here. I thank God Almighty for making this possible,” he said.
Okonkwo also commended the Nigerian Civil Aviation Authority for expediting the certification process for the aircraft, describing the regulator’s support as crucial to the airline’s growth.
“We are thankful to the DG of the NCAA who has made our services possible. I had told him I had three aircraft that were arriving. Three of his directors came to our office on a Saturday, prepared all the documents, inspected the aircraft, and issued all the certificates. The process of operating aircraft won’t be easy without ease in certifications,” he said.
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The airline chairman further highlighted the operational difficulties airlines face daily, stressing that delays are often caused by factors beyond the control of carriers.
“I know we have passengers in Nigeria that want to get to their destinations. The important thing is to get passengers to their destinations safely and in time. The truth of the matter is that the operator wants to take you there on time.
“That you buy a ticket doesn’t put money in our pockets, because you can demand a refund. Sometimes we meet situations beyond our control. When one aircraft goes bad, we start to work on the schedule so we don’t leave anyone behind. Sometimes it is a bird strike, sometimes it could be because of airport availability,” he explained.
Okonkwo also criticised the financial structure governing aviation agencies, arguing that excessive deductions from the revenues of the NCAA and the Federal Airports Authority of Nigeria were limiting their ability to improve infrastructure and service delivery.
“Minister, we are not happy with the recent report from IATA that Nigeria is the most expensive place to operate. It means it costs operators more to operate. We want a reduction in the charges,” he said.
“The government yanks 70 per cent from the aviation accounts to do other things that are not aviation-related, and this strains the NCAA and FAAN. If we leave these monies in their accounts, they will be encouraged to provide the needed services. The core aspect of the Nigerian economy is driven by aviation. In conclusion, when this is done, the government can also provide a single-digit loan,” he added.
Speaking on behalf of Boeing Commercial Airplanes, Executive Sales Director for Africa, Moore Ibekwe, said recent reforms in Nigeria’s aviation sector have improved access to financing, strengthened regulatory compliance and enhanced safety standards, creating a more attractive environment for aircraft acquisition and industry growth.
According to him, the improvements have enabled Nigerian operators to acquire new-generation aircraft and expand technical capacity.
He noted that Boeing recently launched a training programme in Nigeria, with its engineers providing hands-on training for local professionals. Ibekwe added that the newly acquired Boeing 737 aircraft would create significant opportunities for the country’s aviation industry and broader economy.
“The country needs about 1,200 aircraft. If we get a good percentage of these aircraft, the sky will not be our limit. We have the manpower, capability, and finances. Aviation is global; it creates good-paying jobs, opens up the economy, and positions Nigeria on the world stage in science, technology, finance, fashion, and entertainment,” he said.
Also speaking, the Obi of Onitsha, Igwe Nnaemeka Achebe, expressed gratitude after one of the newly inducted aircraft was named in his honour alongside the late literary icon Chinua Achebe. “I am overwhelmed. I’m lost for words. It is a day of gratitude,” he said.
Also speaking at the event, the Minister of Aviation expressed delight at developments in the country’s aviation industry.
The Nigerian National Petroleum Company Limited (NNPC Ltd) claimed that it saved $3.4 billion through contract restructuring and optimisation between April 2025 and July 2026.
Group Chief Executive Officer, Bayo Ojulari, made the assertion in Abuja at the opening of the 25th Nigeria Oil & Gas (NOG) Energy Week, while highlighting the impact of ongoing reforms aimed at improving operational efficiency, reducing costs, strengthening partnerships, and enhancing value delivery to the federation.
Ojulari also stated that the national oil company had maintained full compliance with its joint venture cash call obligations.
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According to the scorecard presented by the NNPC Ltd, the $3.4 billion cost savings were realised through contract restructuring and optimisation initiatives across the company’s operations.
The reforms also contributed to an increase in government revenue, with the NNPC Ltd reporting a government take of N19.5 trillion, representing a 21.8 per cent year-on-year increase.
Besides, a major highlight of the report was NNPC’s 100 percent compliance with its joint venture cash call obligations across all its joint ventures from Financial Year 2025 to June 2026.
However, the company’s partners recorded a blended compliance rate of just 61 percent.
Of the 27 joint venture partners, only six were fully current with their obligations, while 13 recorded partial compliance with an average payment rate of 72 percent, and eight remained in significant default, paying an average of only 14 percent, prompting Joint Operating Agreement remedies.
The NNPC Ltd said it remained committed to sustaining its cash call obligations to support Nigeria’s target of achieving two million barrels of oil production per day.
Operationally, the company reported a six percent increase in crude oil production year-on-year and an 8.1 percent rise in gas production over the same period, reflecting improvements in upstream operations.
Ojulari also highlighted several strategic partnerships concluded since the last Nigeria Oil and Gas Conference, including a long term gas supply agreement with Nigeria LNG, progress on deepwater investments valued at over $20 billion, refinery related partnerships, industrial gas projects, and new gas supply arrangements.
Looking ahead, the company identified seven priority projects expected to drive production and gas infrastructure growth through 2027.
These, it said, included the UTM Floating LNG project, the OB3 East West Connector, the AKK gas pipeline, refinery technical enhancement projects, the Zabazaba deepwater development, the Owowo field, and the BSWAP project.
The state oil major added that the combination of cost optimisation, stronger operational performance, improved infrastructure reliability, and strategic partnerships would reinforce Nigeria’s energy security, boost government revenues, and support sustainable growth in oil and gas production.
Ojulari said the national oil company achieved 98 percent recovery across five crude export terminals between April 2025 and May 2026, up from one per cent at Bonny in June 2022.
He put current output at 1.71mbpd, the highest in five years, with the NNPC Exploration and Production Limited (NEPL) hitting a record 365,000 bpd.
Gas production, he said, reached 7.5 billion standard cubic feet per day (bscf/d) following the River Niger crossing on the Ajaokuta-Kaduna-Kano (AKK) Pipeline and inauguration of the ANOH Gas Plant.
Ojulari added that the NNPC Ltd had “zero tolerance for partners who are not able to fund their Cash-call” and had begun invoking default clauses.
He stressed collaboration over control, saying, “We have rid ourselves of any pseudo-regulation. We are not the super-regulator. Let them regulate. We want to work.”
Energia Limited and its Joint Venture partner, Oando Plc, have inaugurated the board of trustees of the Ndokwa West-1 Host Community Development Trust (HCDT).
The inauguration marked a significant milestone in strengthening sustainable development, transparency and community participation across their host communities in Delta State.
The inauguration, held in Asaba, also featured the signing of a Memorandum of Understanding (MoU) between the Energia-Oando Joint Venture and the seven host communities, in line with the provisions of the Petroleum Industry Act (PIA), 2021.
The event brought together representatives of Delta State Government, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), traditional rulers, community leaders, members of the newly inaugurated board of trustees, and other key stakeholders from the oil and gas industry.
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Representing the Governor of Deputy Governor, Delta State, Sir Monday Onyeme, Deputy Chief of Staff, Hon. Christopher Osaskwe commended Energia Limited and the host communities for successfully establishing the Trust and signing the Memorandum of Understanding.
He described the initiative as a demonstration of mutual commitment to partnership and sustainable development, while urging the newly inaugurated board to discharge its responsibilities with transparency, accountability and fairness.
He also encouraged host communities to continue protecting oil and gas infrastructure and embrace dialogue as the preferred approach to resolving disputes.
Managing Director, Energia Limited, Oladimeji Bashorun, described the inauguration as the beginning of a new chapter in the relationship between Energia and its host communities.
According to him, the company remains focused on building partnership, shared responsibility and sustainable development rather than dependency.
He noted that while the PIA provides a structured framework for host community development, Energia’s commitment to its host communities predates the legislation and has remained a core part of the Company’s operating philosophy since it achieved First Oil in 2009.
“Communities that host our operations should also share meaningfully in the opportunities created by those operations. Our success has always been closely connected to the success of our host communities,” Bashorun said.
He also disclosed that Energia has invested over N15.94 billion in community development initiatives since inception, supporting roads, drainage systems, healthcare facilities, educational programmes, scholarships, youth empowerment, solar-powered street lighting, community welfare initiatives and other social investments across its operational communities. He added that the Company dedicates 3% of its gross revenue annually to support sustainable development initiatives for its host communities.
Also speaking at the event, the Asset Manager of Oando, Seyi Fawora, reaffirmed the Joint Venture’s commitment to implementing the HCDT, noting that the partnership remains focused on building stronger, mutually beneficial relationships with host communities.
The representative of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Dennis Eyitemi, described the inauguration as a significant milestone in strengthening host community participation in development. He urged members of the Board of Trustees to remain accountable, transparent and committed to promoting the long-term welfare of the communities they represent.
Providing an overview of the HCDT framework, the Delta State Solicitor-General and Permanent Secretary, Ministry of Justice, Omamuzo Irebe, SAN, commended Energia for contributing beyond the statutory requirement prescribed under the Petroleum Industry Act and encouraged members of the Board to place community interests above personal interests while ensuring prudent management of the Trust’s resources.
The ceremony concluded with the swearing-in of the members of the Ndokwa West-1 Host Community Development Trust Board of Trustees. In his acceptance remarks, the Chairman of the Board, Chief Godwin Edeme, pledged the Board’s commitment to working with Energia Limited, Oando Petroleum Development Company and all stakeholders to ensure the effective implementation of the Trust for the benefit of present and future generations.
The establishment of the Ndokwa West-1 Host Community Development Trust represents another milestone in Energia’s long-standing commitment to responsible operations, stakeholder engagement and creating shared value for its host communities through sustainable, transparent and inclusive development. About Energia Limited
Energia Limited is a leading indigenous Nigerian exploration and production company with a proven track record of responsible hydrocarbon development and sustainable value creation. Since achieving First Oil in 2009, Energia has remained committed to operational excellence, environmental stewardship, and meaningful partnerships with its host communities, delivering lasting social and economic impact alongside its business growth.
Foreign direct investment (FDI) flow into Nigeria climbed to roughly $4 billion last year, according to UNCTAD’s World Investment Report 2026.
The report stated that “Inflows to Nigeria rose to about $4 billion, supported mainly by oil and gas–related IPF deals, including a major project valued at about $2 billion.”
The report indicated that Nigeria’s inflows were $1.6 billion in 2024, before increasing to roughly $4 billion (precisely $4.005 billion) in 2025 — reversing a downward trend that had seen inflows dip as low as $895 million in 2022. The figures place Nigeria among a cluster of West and East African economies that bucked a broader continental slowdown
According to the report, Nigeria’s outward investment also rose, from $408 million in 2024 to $1.19 billion in 2025, while its inward FDI stock reached nearly $93 billion by year-end.
“In Nigeria, deals included the sale of Shell’s onshore oil assets to the Nigerian consortium Renaissance Africa Energy and the acquisition of Lafarge Africa by Huaxin Cement of China, signaling both a wave of asset localization in the oil sector and continued Asian appetite for Nigerian industrial assets.
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On the Greenfield side, conglomerate Dangote Group emerged as an outward investor in its own right, backing a $3 billion chemicals project in neighboring Ethiopia — one of the 10 largest Greenfield projects announced across the continent in 2025.
Policy shifts also featured prominently in the report’s account of the investment climate. It noted that the government introduced sweeping fiscal reforms during the year, including a new minimum tax regime aligned with international standards.
“Nigeria, for instance, introduced a minimum effective tax rate of 15 per cent for multinational enterprises with revenues exceeding €750 million,” the report noted.
Alongside this, the report observed that Nigeria, together with Cameroon, moved to tighten incentive structures more broadly, as the two countries “replaced broad tax exemptions with tiered tax credits and strict eligibility requirements, such as job creation, local value addition and priority sectors.” Separately, the government rolled out targeted relief for the petroleum sector, introducing “performance-based tax credits for companies in the upstream petroleum industry, linking fiscal benefits to cost efficiency.”
The report also credited Nigeria with using regulatory innovation to court investors beyond the extractive sector.
It pointed to the Federal Government ‘s technology-focused reforms, noting that Nigeria “has used regulatory frameworks to reduce uncertainty for innovative firms,” citing the Startup Act and accompanying central bank rules that let sandboxes allow start-ups to test products with real users before facing the full weight of regulation.
On trade infrastructure, the report named Nigeria as one of five countries — alongside Côte d’Ivoire, Benin, Ghana and Togo — that committed under a regional agreement to harmonising customs and border procedures along the Abidjan–Lagos corridor, part of a wider West African push to cut transit times and integrate cross-border trade.
Africa as a whole, according to the report, saw FDI inflows fall sharply from an exceptional 2024, but the report noted that in West Africa, investment “rose in several West African economies, supported mainly by investment in natural resources and energy.”
Courtesy – The Punch
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