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NMDPRA Licenses LCFE for Petroleum Liquids Trading

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has licensed the Lagos Commodities and Futures Exchange (LCFE) to be facilitating the trading and clearing of petroleum liquids.

Expectations are that the development would deepen price discovery, transparency and investment in Nigeria’s energy market.

The approval provides LCFE with the regulatory foundation to establish a structured marketplace for petroleum liquids, linking the physical petroleum market with Nigeria’s capital market through regulated trading, clearing and settlement infrastructure.

The licence was unveiled in Abuja on Tuesday at a stakeholder event attended by senior representatives of the NMDPRA, the Securities and Exchange Commission (SEC), S&P Global Ratings, the Central Securities Clearing System (CSCS), Alliance Law Firm, and other capital and energy market operators.

Already, no fewer than ten petroleum liquid traders have committed to participating in the exchange, providing an initial pool of market participants for the development of the new trading ecosystem.

READ ALSO: NUPRC Dispels Recruitment Rumours

At the event, the Managing Director and Chief Executive Officer of LCFE, Akin Akeredolu-Ale, said the approval marked a defining moment for Nigeria’s commodities market, noting that the infrastructure required to support petroleum liquids trading was falling into place.

He said, “The issuance of this licence marks a defining moment for Nigeria’s commodities market. It gives us the regulatory foundation to bring petroleum liquids into a transparent, structured, and technology-enabled marketplace, connecting the physical energy market with Nigeria’s capital market.”

Akeredolu-Ale pointed out that the emerging market architecture would incorporate technology-enabled trading, two-way quotations, contract trading and settlement, as well as licensed collateral managers to strengthen oversight and risk management.

The development comes as Nigeria’s petroleum industry undergoes significant structural changes following the implementation of the Petroleum Industry Act (PIA), full deregulation of the downstream market and the commencement of operations at the Dangote Petroleum Refinery and Petrochemicals (DPRP).

On his part, the Chief Executive of NMDPRA, Rabiu Umar, noted that the authority’s priority was to create a predictable, equitable and transparent regulatory environment capable of attracting investment and supporting sustainable growth in the energy sector.

According to him, the PIA, market deregulation and the emergence of large-scale domestic refining capacity have fundamentally altered Nigeria’s position in the global energy landscape.

Also speaking, the Director-General of SEC, Dr Emomotimi Agama, commended LCFE for pursuing the initiative, describing it as a transformative opportunity for Nigeria’s commodities and capital markets.

On her part, S&P Global Ratings’ Managing Director, Africa Research & Analytics and Country Head, South Africa, Samera Mensah, stressed the importance of credible market infrastructure, transparent pricing benchmarks and credit ratings in building investor confidence.

She added that S&P’s reclassification of Nigeria from a frontier market to an emerging market aligns with the Federal Government’s target to expand the economy to $1tn.

Similarly, the Division Head, Business Services & Client Experience at CSCS, Onome Komolafe, assured stakeholders that the financial market infrastructure provider would support the new market through its depository, clearing and settlement capabilities, including digital asset recording.

In his remarks, the Founder and Managing Partner of Alliance Law Firm, Uche Obi, described the licence as a major legal and regulatory milestone that underscores the regulatory and institutional capacity backing the platform.

Market watchers have described the NMDPRA approval as a landmark step in LCFE’s broader vision to transform Nigeria’s commodities landscape and position the exchange as a premier energy trading hub in Africa.

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Dangote Credits Tinubu’s Economic Reforms with Driving Nigeria’s Economic Recovery

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President and Chief Executive of Dangote Industries Limited (DIL), Aliko Dangote, has commended the Federal Government for implementing bold and transformative economic reforms repositioning Nigeria for sustainable growth, strengthening investor confidence, and accelerating the country’s economic recovery.

According to Dangote, the ongoing fiscal, monetary, and regulatory reforms have contributed significantly to improving macroeconomic stability, enhancing productivity across key sectors, increasing Nigeria’s attractiveness as an investment destination, and fostering a more resilient business environment. He noted that the positive outcomes emerging from the reform agenda underscore the importance of consistent, market-driven policies in advancing national development and economic prosperity.

“The economic reforms being implemented by the Federal Government are beginning to yield tangible results. We are witnessing improved economic activity, stronger investor confidence, increased industrial productivity, and a more resilient business environment. These measures are laying a solid foundation for sustainable economic growth and long-term prosperity for Nigeria,” Dangote stated

READ ALSO: US-Iran Conflict Sees Oil Exceed $94

He explained that the reforms have created a more enabling operating environment for businesses, particularly large-scale manufacturing and industrial enterprises that are critical to economic diversification, job creation, foreign exchange generation, and national competitiveness. He added that government initiatives aimed at improving efficiency, promoting investment, enhancing transparency, and supporting domestic production are providing a solid framework for industrial expansion.

“We commend the Federal Government for its courage and determination in implementing reforms that are essential for economic transformation. While every reform process comes with initial challenges, the benefits are increasingly evident in stronger economic indicators, improved business confidence, and renewed investor interest in Nigeria,” he said.

Dangote further observed that the government’s favourable policy environment has supported the continued growth and efficient operation of the Dangote Petroleum Refinery and Petrochemicals complex, Africa’s largest integrated refining and petrochemical facility. He noted that policy measures designed to strengthen local refining capacity, reduce import dependence, improve energy security, and encourage value addition have contributed meaningfully to the refinery’s success and Nigeria’s broader economic development objectives.

“The progress being recorded at the Dangote Petroleum Refinery and Petrochemicals complex is closely linked to a policy environment that encourages investment, supports domestic industrialisation, and promotes self-sufficiency. These reforms are helping Nigerian businesses to plan with greater certainty, invest with confidence, and compete effectively on the global stage,” he added.

He stated that the refinery’s increasing production capacity and expanding export footprint are contributing significantly to Nigeria’s economic resurgence by generating foreign exchange earnings, creating employment opportunities, strengthening local supply chains, and positioning the country as a leading energy and manufacturing hub

Reaffirming the Group’s commitment to supporting the Federal Government’s economic agenda, Dangote said Dangote Industries Limited would continue to invest in strategic sectors, drive innovation, promote industrial development, and create sustainable employment opportunities.

“Our vision has always been to support Nigeria’s economic development through transformative investments. Today, we are witnessing how the combination of private-sector commitment and decisive government policies can unlock unprecedented opportunities for national growth. The refinery, petrochemical operations, fertiliser production, and our other industrial investments are helping to build a more self-reliant, competitive, and prosperous economy,” he said.

He expressed confidence that sustained reforms, policy consistency, and stronger collaboration between the public and private sectors would further stimulate economic growth, attract increased foreign direct investment, and reinforce Nigeria’s position as one of Africa’s most attractive investment destinations.

“Nigeria is on the path to becoming one of the world’s leading industrial and economic powers. With continued policy consistency, robust private-sector participation, and investment-led growth, the future of our economy is exceptionally bright,” Dangote concluded.

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Group Credits PINL with Safeguarding Environment, Farms

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A group has given kudos to the Pipeline Infrastructure Nigeria Limited (PINL) for effective pipeline surveillance and community interventions during the recent flooding in parts of the Niger Delta.

The Niger Delta Progressive Alliance (NDPA) in a statement signed by its Convener, Nse Victor Udoh, noted that the PINL’s operational efficiency and sustained maintenance of pipeline corridors helped prevent additional environmental damage, preserve farmlands and protect aquatic ecosystems from threats associated with pipeline failures and oil spills.

According to the NDPA, annual flooding in the Niger Delta poses serious environmental risks, particularly when floodwaters come into contact with damaged pipelines, oil spills and illegal activities around oil and gas infrastructure.

The organisation noted that the recent flood season was different, as there were no reported cases of widespread oil contamination of floodwaters, dead fish or the spread of oil into farms and residential areas attributable to pipeline failures.

READ ALSO: DPRP Decries Rising Fuel Imports, Despite Strong Local Supply Capacity

It said the development underscored the importance of preventive pipeline management, stressing that effective infrastructure protection was often measured by disasters that were prevented rather than emergencies that attracted public attention.

According to the group, regular patrols, monitoring and right-of-way surveillance enabled PINL to identify and address potential threats before they escalated into major incidents.

It added that inspection, maintenance and repair activities had also contributed to maintaining the integrity of critical pipelines, especially during periods of heavy rainfall and flooding.

The NDPA further commended PINL for its interventions in flood-affected communities in Rivers, Bayelsa and Imo States.

It cited the company’s restoration efforts in areas previously affected by illegal refining, as well as empowerment programmes targeting women and youths in host communities.

Udoh said the initiatives showed that corporate social responsibility should go beyond occasional charitable gestures and become part of a sustained commitment to community welfare and development.

“We commend Pipeline Infrastructure Nigeria Limited, therefore, on two counts that this season has made inseparable: the efficiency of its service, tested by a flood and found equal to it, and the seriousness of its social responsibility,” he said.

He added that the group had observed that farms remained protected and waterways retained their ecological value despite the flooding.

“This season, our farms still stand where the water reached them. Our creeks still hold their life,” Udoh said.

The alliance maintained that infrastructure security and community welfare were closely linked in the Niger Delta, where pipelines pass through several communities and environmentally sensitive areas.

It urged PINL to sustain the standard, stressing that protection of critical national infrastructure, environmental preservation and improved host-community welfare should remain mutually reinforcing objectives.

The NDPA described PINL’s performance during the flood season as an example of how operational efficiency and responsible community engagement could combine to protect energy infrastructure and the environment.

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Dangote Threatens Petrol Importers’ Supply Over Product Blending

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As concerns continue to mount over product quality and allegations of blending of imported fuel with products refined locally against major oil marketers, the Dangote Petroleum Refinery and Petrochemicals (DPRP), is contemplating cutting off supplies to the culprits.

The proposed measure could take effect as early as this week, subject to further consultations and any last-minute intervention, according to sources familiar with the situation.

The grave concern is that some marketers are allegedly blending imported Premium Motor Spirit (PMS), also called petrol, with petrol purchased from the DPRP before distributing the resulting product in the market.

READ ALSO: Nestoil Boosts Oil Production with $28m Drilling Fleet

This has left the refinery concerned that such practices could make it difficult to distinguish between products it supplied and the products subsequently blended or handled by third parties.

“It is difficult to understand why we would invest heavily in producing high-quality petroleum products for Nigerians, only for those products to be mixed with imported products of uncertain quality and the resulting product to be associated with the refinery,” a senior official at the $20bn Lekki-based plant, who spoke in confidence due to the lack of authorisation to speak on the matter, stated.

The refinery has also raised concerns about what it called a lack of a standard laboratory and adequate quality-control infrastructure for imported petroleum products, particularly the capacity to independently verify and certify the specifications of products entering the Nigerian market.

The latest development comes barely days after the DPRP warned that rising petrol imports were forcing it to export excess stocks despite having sufficient capacity to meet Nigeria’s domestic demand.

The refinery said imported PMS accounted for approximately 43 percent of fuel supplied into the Nigerian market in July, saying the continued issuance of petrol import licences had created uncertainty over domestic demand and made production and inventory planning increasingly difficult.

The DPRP said it had consistently maintained sufficient inventory and reserved product volumes to guarantee steady supply to the Nigerian market, but argued that keeping large stocks indefinitely was becoming commercially unsustainable when it could not determine how much imported petrol would enter the country.

“As a responsible energy provider, we have always endeavoured to keep adequate reserves to satisfy local demand at all times. However, in an environment where significant volumes of imported PMS continue to enter the market through licences issued by the regulator, and where there is limited visibility on future import volumes, it becomes commercially unsustainable to continue holding excess inventory indefinitely.”

The refinery said the surplus petrol that could not be absorbed by the domestic market would consequently have to be exported to regional and international markets.

The proposed restriction on sales to importing marketers now adds a new dimension to the refinery’s concerns, as Dangote moves from highlighting the commercial impact of rising imports to considering measures that would prevent marketers from sourcing its petrol while simultaneously importing competing products.

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