NEWS
Nigeria’s Budget Threatened by Offshore Oil Output Flop
Persistent weaknesses in offshore crude production which left output below the level on which the 2026 federal budget was set out, has brought Nigeria’s fiscal position under pressure despite a strong rally in international oil prices.
MoneyAfrica shed light on this in its newsletter on Monday, asserting that Nigeria produced an average of 1.505 million barrels per day of crude oil in July, which industry figures aver is marginally above her Organisation of the Petroleum Exporting Countries (OPEC) production quota of 1.50 million bpd for the third consecutive month.
However, July output was 4 percent lower than in June, reflecting technical disruptions at some offshore oil fields.
MoneyAfrica said while the performance signals an improvement from the severe production losses Nigeria experienced in previous years, it remains insufficient to meet the government’s revenue plans.
When condensates are included, total liquids production averaged 1.67 million bpd in July, well below the 1.84 million bpd benchmark used in the 2026 budget.
The volume gap has remained a central risk to public finances throughout the year, constraining the amount of oil available for export and limiting the government’s capacity to convert stronger global prices into a material revenue windfall.
Crude prices have, nonetheless, provided an important cushion. Escalating tensions in the Middle East have supported global oil markets, pushing Nigeria’s realised crude prices to around 29 percent above the budget benchmark of $64.85 per barrel.
“This suggests gross oil revenue during the first half of the year may have exceeded the budgeted level in nominal terms, even with production running below target.
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Yet the higher-price environment has primarily neutralised the effect of lower export volumes instead of creating meaningful additional fiscal headroom.
Nigeria is therefore still exposed to a reversal in global prices, while its production base remains vulnerable to operational disruptions, infrastructure constraints and delayed investment”, the newsletter read.
The challenge is reflected in the government’s reported $2.49 billion oil-revenue shortfall in the first half of 2026. That underperformance, MoneyAfrica, said, feeds directly into the fiscal deficit and could increase the government’s financing needs, placing further pressure on domestic borrowing costs and public debt metrics.
The administration has intensified efforts to attract investment into oil and gas, particularly deep-offshore projects that could help rebuild output over the medium term.
Measures include tax incentives intended to improve project economics, unlock capital and shorten the path to final investment decisions.
The government has set an ambition to raise production towards 3 million bpd, but the scale of capital expenditure, technical work and infrastructure improvements required means the target is unlikely to be achieved quickly.
MoneyAfrica said, “For now, Nigeria is producing enough crude to comply with its OPEC quota, but not enough to deliver the oil volumes embedded in its own budget. Until offshore operations are stabilised and new investment translates into sustained barrels, higher crude prices will offer only a temporary buffer rather than a durable solution to the country’s fiscal vulnerability”.
NEWS
RMAFC Reopens Oil Wells Dispute, Begins Verification in Nine States
The Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) has commenced a fresh physical verification of disputed and newly drilled crude oil and gas well coordinates across nine states, in a move aimed at ensuring fairness and accuracy in the allocation of the 13 per cent derivation fund.
The exercise, covering the period from 2017 to date, was formally flagged off in Owerri, Imo State, on Wednesday, November 11, 2026, by the Commission’s Chairman, Dr Mohammed Bello Shehu.
The affected states are Delta, Ondo, Edo, Anambra, Imo, Bayelsa, Rivers, Cross River and Akwa Ibom.
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Speaking at the flag-off ceremony, Shehu described the exercise as critical to ensuring transparency, accuracy and fairness in the administration of derivation revenue.
He explained that the Commission has a constitutional responsibility to monitor revenue accruals and disbursements from the Federation Account and ensure equitable distribution of derivation funds among oil and gas-producing states.
The RMAFC chairman stressed that determining the exact coordinates and geographical positions of oil and gas wellheads directly affects the legal and financial entitlements of the respective states.
He consequently charged members of the Inter-Agency Technical Committee (IATC) and deployed technical officers to carry out the assignment with diligence, precision and professionalism.
Shehu insisted that every verified coordinate, technical assessment and physical observation must be sufficiently accurate to withstand statutory scrutiny.
According to him, the exercise will involve examining disputed and newly drilled oil and gas well coordinates, physically verifying affected wellheads, plotting their locations using approved maps and considering relevant court decisions in resolving outstanding disputes.
He also directed that the committee’s harmonised technical report and findings be submitted exclusively to RMAFC for ratification and formal adoption.
The Inter-Agency Technical Committee comprises representatives of relevant technical institutions, including the Office of the Surveyor-General of the Federation (OSGoF), the National Boundary Commission (NBC) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The Imo State Governor was represented at the event by the Commissioner for Petroleum, Hon. Emeka Mgbudem.
Other government officials and RMAFC commissioners in attendance included Hon. Adamu Abdu Fanda, Chairman of the Crude Oil Committee; Hon. Oladele Semiu Gboyega, Chairman of the Gas Committee; Hon. Ismail Mohammed Agaka, Chairman of the Public Affairs and Communication Committee; Ambassador Ayuba Jacob Ngbako; Hon. Akpan Imo Effiong; and Hon. Helen Bob Inafa.
Also present were the Imo State Commissioner for Lands, Surveyor Clement Nwabichie; Commissioner for Finance and Coordinating Economy, Mr Chucks Chukwuemeka; and Permanent Secretary, Ministry of Lands, Dr Angelina Ohiri.
The Commission disclosed that the verification exercise had been conducted previously but was being repeated to ensure that all issues raised were adequately addressed.
NEWS
Shettima Visits Oba of Benin Ahead of APC Presidential Campaign Rally in Edo
Vice President Kashim Shettima has paid a courtesy visit to the Palace of the Oba of Benin, Oba Ewuare II, ahead of the All Progressives Congress (APC) presidential campaign rally in Benin City, Edo State.
Shettima arrived at the historic royal palace on Thursday to pay homage to His Royal Majesty, Omo N’Oba N’Edo, Uku Akpolokpolo, Oba Ewuare II, CFR.
The visit highlights the significance of the Benin traditional institution, which has preserved its rich cultural heritage, kingship, artistry and diplomatic traditions for more than seven centuries.
SEE MORE: Shettima Arrives Jigawa for APC Presidential Campaign Rally, Tinubu to Inaugurate Four Projects
The Benin Palace remains one of Africa’s most historic royal institutions, representing the enduring legacy and cultural identity of the ancient Benin Kingdom.
The Vice President is in Edo State to participate in the APC presidential campaign rally scheduled to hold at the Samuel Ogbemudia Stadium in Benin City.
NEWS
FG Tackles Transportation Costs with 5 New CNG Stations in Lagos
As part of efforts to expand access to cheaper alternative fuel and reduce transportation costs, the federal government has commissioned five Compressed Natural Gas (CNG) daughter and last-mile retail stations in Lagos State.
The facilities, developed by the Ibile Oil and Gas Corporation (IOGC) with support from the Midstream and Downstream Gas Infrastructure Fund (MDGIF), were commissioned on Wednesday by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.
Speaking at the commissioning, Ekpo said Lagos occupied a special place in the public-service journey of President Bola Ahmed Tinubu, noting that his administration was extending the development philosophy pursued during his tenure as governor to the national level.
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He said Lagos had demonstrated the importance of long-term planning, institution building, infrastructure development and the mobilisation of private capital for economic growth.
According to him, the federal government is applying similar determination through the Renewed Hope Agenda to ensure that Nigeria’s abundant gas resources support industrial growth, businesses, transportation and job creation while reducing the cost pressures faced by citizens.
“Through the Renewed Hope Agenda, the President has made it clear that Nigeria’s abundant gas resources must work for Nigerians. They must power our industries, support businesses, improve transportation, create employment and, ultimately, reduce the cost pressures faced by ordinary citizens,” he said.
The five stations are located in Idimu and Abule Egba in Alimosho Local Government Area; Ogolonto in Ikorodu West Local Government Area; Ajah in Eti-Osa Local Government Area; and Oko-Oba in Agege Local Government Area.
Each facility has a CNG compression capacity of 24,000 standard cubic metres per day and a storage capacity of 9,800 standard cubic metres.
The stations are designed as last-mile retail outlets to bring CNG closer to consumers in their residential and business locations.
Ekpo said the facilities would improve access to alternative fuel for motorists and commercial transport operators, while supporting the government’s objective of expanding cleaner energy infrastructure nationwide.
“These stations represent access. They represent affordability. And they represent the determination of government to take the benefits of Nigeria’s gas resources directly to the people,” he said.
He disclosed that President Tinubu had directed the expansion of CNG infrastructure across the country, including the development of an additional 500 refuelling stations towards a planned national network of 1,000 stations.
He said the initiative was aimed at ensuring that the benefits of the country’s gas resources translated into lower transportation costs for Nigerians.
According to the minister, expanding CNG infrastructure in Lagos would provide motorists and commercial transport operators with viable alternative fuel options, while bringing cleaner energy closer to consumers.
“Our objective is therefore not simply to count the number of stations commissioned. Success must ultimately be measured by impact: whether the infrastructure helps reduce operating costs for transporters and businesses, whether those savings reach commuters, and whether Nigerian families begin to feel tangible relief,” he said.
Ekpo said the Ministry of Petroleum Resources (Gas), in collaboration with the Presidential CNG Initiative, MDGIF, state governments, investors and other industry stakeholders, was working to expand refuelling and associated infrastructure to improve access to cleaner and cheaper fuel.
He commended IOGC and the Lagos State Government for embracing the initiative, describing the project as an example of the federal government, state governments and private sector working together to develop critical infrastructure.
The minister also praised MDGIF for its catalytic role in supporting gas infrastructure development, assuring investors of the government’s commitment to providing an enabling environment for investments to translate into physical projects and economic benefits for Nigerians.





