Business
Nigeria’s External Reserves Rise 2.83% Amid Foreign Inflows
In a testament to Nigeria’s economic strength, the country’s external reserves have surged by 2.83% year-to-date, propelled by increased foreign capital and remittances.
Recent data from the Central Bank of Nigeria (CBN) reveals a noteworthy uptick, with foreign currency reserves reaching $34.11 billion as of March 7, 2024—up from $33.17 billion at the beginning of the year.
This boost in reserves, comprising foreign currencies, gold, and other international assets, reflects Nigeria’s ability to navigate and thrive amid global economic currents.
Recall that on Wednesday, the CBN unveiled a striking surge in Diaspora remittances.
February witnessed an extraordinary spike, with remittances skyrocketing by an astounding 433%, surging to $1.3 billion compared to the $300 million reported in January.
It said “We saw a 1.0 percent week-on-week (w/w) accretion in the foreign reserves to $34.02bn as of March 6th, 2024, owing to foreign capital inflow (evident in the year-to-date (YTD) foreign net inflows of $822.6m through the NAFEM window) following CBN’s drive to attract FX, analysts at Afrinvest Securities Limited.”
On Friday, the Naira experienced a 1.55% depreciation, with the dollar quoted at N1,627.40, marking a decline from Thursday’s N1,602.17, as reported by the FMDQ Securities Exchange.
The intraday high also weakened to N1,640 per dollar on Friday, compared to N1,635 on Thursday.
However, the intraday low showed improvement, reaching N1,413/$1 on Friday, stronger than Thursday’s N1,470/$1.
Notably, there was a substantial increase in dollar supply, rising by 63.48% to $269.35 million on Friday, up from $164.76 million recorded on Thursday.
In the parallel market, commonly referred to as the black market, the Naira remained stable at N1,620 per dollar.
Governor Olayemi Cardoso of the Central Bank of Nigeria (CBN) announced, following the Monetary Policy Committee (MPC) meeting on February 27, 2024, that the country’s external reserves had increased to $34 billion from the initial $33 billion at the beginning of the year.
Moreover, on February 5, 2024, the CBN reported a reduction in the inherited $7 billion FX backlog to $2.2 billion.
The CBN expressed its commitment to resolving the outstanding balance, demonstrating efforts to address foreign exchange challenges.
According to a weekly report by Afrinvest, the Naira maintained stability across the FX market, trading within a similar band as the preceding week.
The report highlighted a 41.4% improvement in activity at the NAFEM Window, totaling $421.6 million, a notable increase from the previous week’s $473.1 million.
Furthermore, the report indicated a 4.9% week-on-week depreciation of the Naira against the dollar at the NAFEM Window, with the exchange rate falling to N1,627.40/$1.00.
Additionally, the parallel market witnessed a 5.3% week-on-week dip in the Naira against the dollar, settling at N1,600.00/$1.00.
It said “We note that the spread between the NAFEM and parallel rates sustained its streak for the second week though the weekly average declined 98.8 percent to N27.40.
“In the week ahead, the Naira is likely to trade within a similar band across FX segments, supported by intensified regulatory spotlight, the analysts.”
In a press briefing held in Abuja, Hakama Sidi Ali, the acting director of corporate communications at the Central Bank of Nigeria (CBN), underscored a substantial increase in overseas remittances, surpassing four times the figures from the preceding month.
Ali emphasized the heightened interest of foreign investors in Nigerian assets, revealing investments exceeding $1 billion in February alone.
Additionally, she highlighted a positive trajectory in total portfolio flows for 2024, reaching $2.3 billion, showcasing promise compared to the $3.9 billion recorded for the entire previous year.
In addition, Ali highlighted that the momentum of increased foreign exchange inflows continued into March 2024.
This surge was attributed to a heightened investor appetite for short-term sovereign debt following adjustments to benchmark interest rates.
A significant development was observed in government securities issuances, with substantial oversubscription.
Foreign investors took a leading role, contributing to over 75 percent of the total bids received during auctions conducted on March 1 and 6, 2024.
Business
Dangote Refinery Pioneers Honeywell’s AI Technology
The Dangote Petroleum Refinery and Petrochemicals (DPRP) is set to become the first industrial facility to deploy Honeywell Technologies’ newly launched artificial intelligence platform, in a major technological advancement projected to deliver more than $60 million in annual gross operational benefits at full refining capacity.
The deployment of the platform, known as Forge Plant Cognition, will position the Lekki-based refinery at the forefront of AI-driven industrial operations, combining Honeywell Technologies’ process engineering expertise with NVIDIA’s artificial intelligence capabilities and Dell Technologies’ computing infrastructure to improve refining efficiency, maximise output and strengthen operational reliability. Announcing the development, Honeywell Technologies said the new platform would make its global debut at Dangote Refinery, one of the world’s largest refineries, as part of efforts to unlock greater value from existing industrial assets and transform how complex refining and petrochemical facilities are operated.
According to preliminary assessments, the technology could generate operational benefits exceeding 29 cents per barrel at the refinery. At full-capacity throughput, Honeywell estimates that the improvements could translate into more than $60 million in annual gross benefits. The company, however, clarified that the projection was specific to the Dangote facility, based on preliminary data and subject to actual operating conditions. The development represents another significant step in Dangote Refinery’s technological evolution, as the company moves beyond the construction and commissioning of a world-class industrial complex towards the deployment of advanced digital systems designed to maximise productivity, strengthen competitiveness and support its ambitious expansion programme.
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Managing Director and Chief Executive Officer of DPRP, David Bird, said the decision to adopt the technology reflected the refinery’s commitment to operational excellence, innovation and the development of Nigerian engineering talent.
“We chose Honeywell Technologies’ Forge Plant Cognition because the platform can deliver unrivaled industrial expertise combined with differentiated AI capabilities to help us optimize performance, unlock greater value from our operations and evolve how we operate our assets,” Bird said. “This investment reinforces our commitment to operational excellence, advancing technology and developing Nigerian talent to operate at world-class standards.”
Unlike conventional industrial monitoring systems that primarily analyse operating data and generate recommendations, Forge Plant Cognition is designed to integrate real-time plant information with engineering knowledge, advanced calculations, and physics-based models to identify operational constraints and support faster, more informed decisions. The technology will enable refinery engineers and operators to detect potential equipment and process problems before they escalate, identify bottlenecks affecting production and recommend corrective actions to improve throughput, product yields, and overall plant performance.
Honeywell explained that the platform would focus on three critical areas: identifying opportunities to improve refining margins, protecting production by reducing unplanned downtime, and making specialised engineering expertise more readily available to plant personnel. By combining these capabilities, the system is expected to help operators extract greater value from existing equipment while strengthening the reliability and efficiency of interconnected refining processes. Forge Plant Cognition would help transfer specialised process knowledge into AI-powered tools accessible to local engineers and operators, enabling them to solve complex problems more efficiently and develop advanced industrial capabilities. The initiative supports Dangote Refinery’s objective of building a workforce comprising more than 70 per cent Nigerians, while progressively reducing dependence on external technical expertise.
President of Honeywell Technologies UOP, Rajesh Gattupalli, described the collaboration with Dangote as a demonstration of the potential of artificial intelligence to transform large-scale industrial operations.
“Industrial plants are among the most complex operating environments in the world, with enormous potential to realize greater performance and value using digital technologies and connected solutions,” Gattupalli said. “By collaborating with Dangote to launch Forge Plant Cognition, we are demonstrating how AI can help transform industrial operations, driving new levels of productivity, reliability and profitability at significant scale.”
Business
Standard Chartered Inks Deal for Shell Gas Sale
Standard Chartered says it acted as the sole financial adviser to Shell International Limited on the sale of Shell Nigeria Gas Limited to Vaaris Energy Limited, in a transaction expected to be completed in the first half of 2027.
The bank disclosed this in a statement announcing its advisory role in the transaction, which involves one of Nigeria’s leading gas distribution platforms.
Shell entered into an agreement to sell the business on 13 October, 2026, with the transaction expected to provide Vaaris Energy with an established gas infrastructure network serving industrial and commercial customers.
Shell Nigeria Gas provides gas supply solutions to businesses through its extensive distribution infrastructure, positioning the company to benefit from growing domestic gas demand.
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Standard Chartered explained that it provided strategic and financial advice throughout the transaction, managing the entire sale process, including transaction preparation and positioning, buyer engagement, deal structuring, negotiations, due diligence coordination and transaction documentation.
Commenting on the transaction, the Chief Executive Officer and Head of Coverage for Africa at Standard Chartered, Dalu Ajene, stated that Nigeria’s gas sector had an important role to play in supporting the country’s economic ambitions and meeting rising domestic energy demand.
“Nigeria’s gas sector has an important role to play in supporting the country’s economic ambitions and meeting growing domestic energy demand. Across Africa, investment in critical energy infrastructure is essential to unlocking industrial growth and long-term development, and this transaction demonstrates the role strategic investment can play in advancing that opportunity. At Standard Chartered, connecting our clients in Nigeria and across Africa to global capital and investors remains a priority. We are pleased to have supported Shell by bringing together the strength of our international network, deep local knowledge and sector expertise.”
The Head of Mergers and Acquisitions for Africa at Standard Chartered, Yemisi Deji-Bejide, said the transaction demonstrated the bank’s capacity to execute complex deals by combining international expertise with local market knowledge.
“We are proud to have advised Shell on the sale of one of Nigeria’s leading gas distribution platforms. As sole financial adviser, we brought together end-to-end M&A execution, deep sector expertise and strong buyer connectivity. This transaction demonstrates the strength of our Africa M&A franchise and our ability to combine global capabilities with local market insight to execute complex, strategically important transactions for our clients.”
The bank said the transaction supported Shell’s ongoing portfolio optimisation strategy while providing a platform for the continued development of Shell Nigeria Gas under Vaaris Energy.
Business
Tinubu Promises to Boost Local Production with NNPC Refineries
Given the growing capacity of private refiners and their impact on local supplies, Nigeria’s president, Bola Ahmed Tinubu has assured of his government’s commitment to rehabilitating and repositioning Nigeria’s dormant national refineries.
Represented by the Permanent Secretary of the Ministry of Petroleum Resources, Patience Oyekunle, at the 20th OTL Africa Downstream Energy Week in Lagos, on Monday, Tinubu revealed his government’s priorities for the petroleum industry.
He made it clear that the facilities will not be allowed to become stranded investments.
Recall that three government refineries, including the Port Harcourt, Warri and Kaduna refineries, being managed by the Nigerian National Petroleum Company Limited (NNPC Ltd), have been moribund despite billions of naira spent on turnaround maintenance over the years.
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Speaking at OTL conference, Tinubu said the government was pursuing a more rigorous and commercially sustainable approach to the rehabilitation of the national refineries, with technical assessments, stronger partnerships and improved operational discipline expected to guide the process.
“At the same time, the government remains committed to ensuring that existing national refining assets are not allowed to become stranded investments.
“We are pursuing a more rigorous, commercially sustainable approach to the rehabilitation and repositioning of our refineries, supported by technical assessment, stronger partnerships, and improved operational discipline,“ she stated.
Tinubu emphasised that the objective is to ensure Nigeria refines more of its crude and a fuel supplier to other nations.
“Our objective is clear. Nigeria must first refine more of its crudes, create more value domestically, and become a reliable supplier of energy to Africa,” he said.
The President’s position comes as Nigeria seeks to increase domestic refining capacity and reduce its historical dependence on imported petroleum products, despite having substantial crude oil resources.
He said the country was transitioning from an industry historically characterised by import dependence and infrastructure constraints to one increasingly driven by domestic refining, private investment, market efficiency, value addition and regional competitiveness.
According to him, the reforms introduced under the Petroleum Industry Act (PIA) are intended to create a transparent, commercially viable and investment-friendly industry capable of delivering greater value to Nigerians.
“The reforms under the PIA are designed to create a petroleum industry that is transparent, commercially viable, investment-friendly, and capable of delivering value to Nigerians. Today, we are beginning to see the results,” he said.
Tinubu described the emergence of large-scale private refining capacity as an important turning point for Nigeria’s petroleum industry, citing the Dangote Petroleum Refinery as a major development in the country’s ambition to become a net exporter of refined petroleum products.
He said the refinery had reached its nameplate capacity of 650,000 barrels per day, strengthening Nigeria’s prospects of supplying refined products to other African countries.
“The emergence of large-scale private refining capacity represents an important turning point. The Dangote Refinery has reached its 650,000-per-day main-plate capacity, strengthening Nigeria’s prospect of becoming a net exporter of refined petroleum products and creating opportunities for regional supply,” he said.
The president said the government’s ambition extended beyond increasing crude oil production, stressing that Nigeria needed to develop an energy economy in which its petroleum resources would support industrialisation, manufacturing and other productive activities.
For decades, Nigeria exported crude oil while importing a substantial portion of the petroleum products required to power its economy. Tinubu said his administration wanted to change that pattern by retaining more value within the country through refining, petrochemicals, gas processing and other energy-intensive industries.
He said the government was also seeking to ensure that the country’s oil and gas resources translated into jobs, investment, technology and broader economic prosperity.
“Our commitment is therefore not to simply produce hydrocarbons. It is to create an ecosystem in which hydrocarbons catalyse industrialisation, jobs, investment, technology, and prosperity,” he said.
Tinubu also called on operators across the petroleum value chain to contribute more to domestic industrial development, particularly through investment in local content, technology, infrastructure and human capital.
He said industry stakeholders were expected to take greater responsibility for environmental protection and community development, warning that extracting resources without creating additional value was no longer consistent with the government’s expectations.
“To our industry stakeholders, I say, the era of extracting value without building value is changing. We expect greater investment in local content, technology, infrastructure, human capital, environmental responsibilities, and boost community development,” he said.
The president further urged investors to take advantage of opportunities in Nigeria’s petroleum industry, saying the country remained open to businesses with the technical competence and financial capacity to develop its oil and gas resources.
In his opening speech, the Chairman of the OTL Advisory Board, Adetunji Oyebanji, said Africa’s downstream petroleum industry had made significant progress since the organisation began in 2007, with developments in refining, logistics and market liberalisation expanding the continent’s capacity to meet its energy needs.
Oyebanji said the emergence of large-scale private refining in Nigeria, particularly the Dangote refinery, had changed the prospects for domestic petroleum supply and regional trade.





