Business
Petrol Price Hike Looms as Oil Hits $110/barrel
Nigeria faces fresh pressure on petrol and diesel prices following a sharp rally in global crude oil prices to nearly $110 per barrel at the weekend.
Already, industry experts are warning that sustained increases could raise domestic fuel costs despite expanding local refining capacity.
For Nigerian businesses, sustained increases in diesel and petrol prices could raise the cost of running generators, transporting goods and operating equipment. Manufacturers, farmers and transport operators could pass some of the additional expenses to consumers, while higher haulage costs could increase the prices of food and other essential goods.
The development, analysts note, presents a dilemma for Africa’s largest oil producer, which stands to earn more from crude exports but remains vulnerable to rising energy costs that could further squeeze households, manufacturers, transport operators and other businesses.
Brent crude, the international benchmark, rose 3.72 per cent to about $109.90 per barrel, while West Texas Intermediate, the US benchmark, gained 3.51 per cent to $101.40 per barrel. Murban crude also advanced 3.08 per cent to $113.40 per barrel, according to market data published by Oilprice.com.
The rally followed escalating geopolitical tensions and attacks on energy infrastructure, heightening fears of supply disruptions and sustained pressure on global energy markets.
Publicity Secretary of the Crude Oil Refiners Association of Nigeria (CORAN), Mr. Eche Stephen Idoko, while commenting on the development, said the central concern was the contradiction of an oil-producing country potentially earning more from crude exports while its citizens remained exposed to higher energy costs.
“Ordinarily, rising crude prices should be good news for Nigeria’s revenues and foreign exchange position. However, the benefits could be substantially undermined by rising costs of transportation, manufacturing, agriculture and ultimately the general cost of living,” Idoko said.
READ ALSO: NIPCO Gas Licences, NNPC Ltd Management Face Reps Probe
He argued that higher crude prices also increase the cost of feedstock for Nigerian refiners, stressing that domestic refining alone cannot insulate consumers from international oil price movements.
According to him, the naira-for-crude arrangement addresses the currency of settlement but does not necessarily reduce the underlying cost of crude oil.
Idoko called for a commercially sustainable domestic crude supply and pricing framework, arguing that local refiners should not have to bear unnecessary logistics, financing and transactional costs associated with crude supply arrangements.
He also questioned how much of the additional revenue accruing to Nigeria from higher crude prices would translate into reducing the structural cost of supplying energy to Nigerians.
For CORAN, he said, the priority should be to strengthen domestic refining competitiveness rather than rely on further government-administered retail discounts or price ceilings.
Idoko noted that there was a real risk of higher fuel prices if crude oil remained at elevated levels, although the extent of any increase would depend on exchange rates, international petroleum product prices, refining margins and domestic supply conditions.
Executive Secretary and Chief Executive Officer of the Major Energies Marketers Association of Nigeria (MEMAN), Mr. Clement Isong, also identified rising international product prices and distribution expenses as potential sources of additional pressure on domestic fuel prices.
In a webinar presentation titled “Structuring Nigeria’s Domestic Market Distribution Framework” delivered at the weekend, Isong said the final price paid by consumers reflected not only international product prices and foreign exchange movements, but also freight, financing, transportation, regulatory charges and distribution costs.
He further warned that rising diesel prices could compound the cost of distributing petrol because diesel is a critical input in road transport and the movement of petroleum products.
According to the presentation, petrol prices rose by 33 per cent to N1,378 per litre between January and October 2026, while automotive gas oil, commonly known as diesel, increased by 36 per cent to N1,853 per litre.
Isong said higher diesel prices increased the cost of transporting petroleum products, including petrol, adding to distribution expenses and wider economic pressures.
The latest crude oil rally could intensify these pressures if it translates into higher international petroleum product prices and replacement costs for refiners and marketers. Any impact on pump prices, however, would depend on movements in international product prices, exchange rates, refining margins and domestic supply conditions.
The pressure on refined products is also being compounded by tight global diesel supplies. According to the market report published by Oilprice.com on October 16, the International Energy Agency warned that diesel supplies could remain tight into 2027, with inventories unlikely to be rebuilt before the third quarter of next year.
Global diesel production reportedly fell by 1.7 million barrels per day year-on-year to 27.2 million barrels per day, highlighting the pressure on supplies of a fuel widely used in transportation, manufacturing, agriculture and electricity generation.
Isong added that Nigeria also needed a more efficient distribution system to minimise avoidable expenses between refineries and consumers.
He recommended that domestic refineries serve as a major source of supply as production becomes commercially available, with imports used to bridge domestic supply deficits through competitive procurement based on the lowest evaluated price.
He also called for predictable bulk supply arrangements, transparent pricing methodologies and better coordination among suppliers, depot operators, transporters and purchasers to reduce operational delays and logistics costs.
The MEMAN chief executive further advocated supply-chain cost reductions, targeted and temporary relief for essential economic activities, and reduced dependence on petrol and diesel through alternatives such as compressed natural gas, electric vehicles and small-scale solar power.
He maintained that efforts to reduce costs should preserve market-based pricing.
Also commenting, energy policy analyst and partner, Bloomfield Law Practice, Mr. Ayodele Oni, posited that Friday’s $110 is not a new crisis.
“Brent topped $120 in April, and Nigerians have already absorbed much of this shock. The real question is whether $110 becomes the floor,”.
Oni argued that in a deregulated market, there is no subsidy buffer, so a sustained rise will reach the pump, warning that if Brent holds above $105 for a few weeks, the recent easing of gantry prices will reverse.
According to him, domestic refining softens the blow by removing freight, import costs and foreign exchange demand for imported fuel, saying without the Dangote refinery, the pass-through today would be far steeper.
“Price shocks come from abroad. Our vulnerability to them is a choice,”.
Courtesy – The Sun Nigeria
Midstream and Downstream Gas Infrastructure Fund (MDGIF) has said that indigenous companies seeking to partner with it and access its equity must show secured gas supply and a confirmed buyer, because no gas project is bankable without both.
The Fund was established under the Petroleum Industry Act (PIA), and designed as the “master key” for unlocking gas processing, infrastructure and bankability.
Deputy Director at MDGIF in the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Engr Elvis Duruji made this known at the OTL Africa Downstream Energy Week in Lagos. He spoke at a session on: “Scaling Energy Options: Unlocking Gas and Renewables through Processing and Infrastructure.”
READ ALSO: UN Engages NCDMB to Deepen Female Access to $40m Oil, Gas Fund
Expatiating further, Duruji said the two conditions decide whether the fund takes an equity stake in a project, since they determine its returns and viability, insisting that the security of the gas feedstock is very important. He further noted that project operators must locate their sites at a gas processing plant or close to a CNG mother station.
The Fund, he added, has used N671 billion to catalyse N1.6 trillion from private Nigerians.
“The Fund has partnered on 31 projects covering 205 infrastructure assets at different stages of execution. Of these, 127 are at different levels of project management, and 10 have been commissioned.
Duruji cited Topline Limited’s mini-LNG plant in Delta State as a success story. “For three years, a Nigerian company, Topline, was looking for a credit facility from InfraCredit, and no one was able to loan them money because they are Nigerian,” he said. “They came to the fund and we partnered with them.”
He said Topline is now the first indigenous mini-LNG operator in Nigeria, with commissioning due before December.
He also cited a programme to convert 20 university campuses to CNG through daughter stations.
“Three CNG stations are operational and 14 more are to be commissioned before December. Duruji added that the fund is working with fuel-station partners, including Ibile Oil and Gas Corporation, which is delivering 15 CNG stations across Lagos.
“These are our success stories,” he said.
He said, for CNG projects, proximity to the gas processing plant “is very important. You must have security of gas supply. We also ensure that you have a gas supply agreement with producers. What is the volume and price that the producer is willing to give to our would-be equity partner? This always affects their credit returns and internal rate of return. This is what will determine the project viability, and this is key,” he said.
Duruji also noted that offtake is equally critical adding that. “We need to know the offtakers and the regasification facility. The same thing for CNG, you need to get a compressor,” he said.
According to him, the MDGIF intervenes in gas projects where commercial lenders will not, because “most Nigerian companies are in trading and operating marginally at the downstream level because the sector is highly capital intensive,” adding that no Nigerian bank would give single-digit loans for exploration and production.
“Nigerian Banks lends at as much as 30 per cent interest, whereas, foreign firms coming into Nigeria to explore, by contrast, have access to cheap loans in single digits from their home country financial institutions,” he said.
The MDGIF, he further explained, intervenes “by pricing the risk, coming up with mitigation and catalytic equity, which we now use to bring that barrier to a level to allow Nigerians who are interested to come into the midstream to partner through the equity finance that we will provide without interest.”
“We bring in the catalytic equity, which is about 49 percent, because we want to allow you to be the operator. We will stay with the private investor and walk them through all that,” he added.
He said MDGIF brings “minority equity, due diligence and risk governance” and uses these as catalytic capital “to make the projects bankable, to make them balanced capital structure that will attract private confidence.”
He identified processing plants, transport, storage and last-mile distribution as the main gaps. Non-associated gas, he said, is “very expertise and capital intensive,” and pipeline networks are needed to move gas from the reserve to the last mile.
“The more gas infrastructure we roll out, the more we are helping the energy system where renewables cannot,” he said.
Duruji identified three mandates of the MDGIF: to increase domestic gas consumption, to aggregate flared gas and bring it into the domestic market, and to mobilise private investors who lack the funds to play in the midstream.
“The MDGIF has three mandates: increase domestic gas consumption, aggregate flared gas and bring it into the domestic market, that is key,” he said. “The other mandate is to mobilise private investors that do not have the funds to be able to play in the midstream, bring their funds.”
He added: “We also have the mandate to reduce gas flare in Nigeria exploration and production sites.”
Easing access to the dedicated $40 million Women in Oil and Gas Fund is the focus of ongoing strategic conversation between the United Nations Entity for Gender Equality and the Empowerment of Women (UN Women), and the Nigerian Content Development and Monitoring Board (NCDMB).
Biztellers reports that the two bodies are keen to collaborate to ensure that more women-owned businesses and professionals benefit from industry’s opportunities and consequently play a stronger role across the sector’s value chain.
READ ALSO: APC Defends Tinubu Over Electricity Promise, Says President Is Tackling Sector’s Challenges
Recall that in April 2021, the NCDMB established a $20 million fund dedicated to supporting women-owned and women-led businesses in the oil and gas sector, which the Nigerian Export-Import Bank (NEXIM) complemented by matching the fund with an additional $20 million.
However, despite this significant commitment and favorable loan terms, the uptake of the scheme has remained below expectations to date.
The discussions were advanced last week when the UN Women’s Country Representative to Nigeria and the Economic Community of West African States (ECOWAS), Ms. Beatrice Eyong, led a delegation to the NCDMB’s Abuja liaison office.
The team was received by the Board’s General Manager of Corporate Communications, Dr. Obinna Ezeobi, on behalf of the Executive Secretary, Engr. Felix Omatsola Ogbe.
The meeting explored proposed capacity-building initiatives for NCDMB personnel, aimed at mainstreaming gender perspectives into the Board’s project planning, budgeting, and execution frameworks.
Other key areas of discussion included vendor development schemes to better position women-led oil and gas businesses for industry opportunities, strategies to raise awareness of available financing options, and potential affirmative procurement measures designed to expand the participation of women-owned companies across the oil and gas value chain.
The UN official commended NCDMB for its ongoing gender inclusion efforts, noting that the Board is already implementing several measures consistent with its mandate.
She proposed conducting a study to identify the reasons women face challenges in accessing the financing facility, including potential barriers related to documentation, business registration, tax compliance, and limited awareness.
She further highlighted key initiatives currently being undertaken by the UN Office, such as programmes on women’s economic empowerment, leadership development, and the elimination of gender-based violence, among others.
Ezeobi welcomed the proposals and affirmed the Board’s readiness to partner with UN Women. He highlighted several innovative initiatives already implemented by the Board to create opportunities for women to participate, grow, and lead in Nigeria’s oil and gas industry.
These include the establishment of a dedicated funding scheme with NEXIM Bank that enables women-owned or women-led firms to access financing at a highly competitive 5 per cent interest rate, as well as the creation of a Diversity Sectoral Working Group within the Nigerian Content Consultative Forum (NCCF), designed to mainstream women’s issues into local content policy and decision-making processes.
The Board also supports associations of women who work across the Energy Industry value chain, where they network, build confidence and links to progress their careers or businesses.
Ezeobi noted that NCDMB has also invested significantly in capacity-building programs for women entrepreneurs and business leaders, covering critical areas such as business sustainability, corporate governance, and strategic management.
The Board has further supported women’s participation in technical occupations while encouraging young girls to pursue careers in science, technology, engineering, and mathematics (STEM).
He acknowledged that women remain underrepresented in the oil and gas industry, citing limited access to technical education, finance, and commercial opportunities, as well as entrenched perceptions of the sector as predominantly male.
Ezeobi reiterated NCDMB’s willingness to collaborate with UN Women to address these challenges and recommended strategies to accelerate the Board’s support for UN Women’s programmes, thereby advancing gender inclusion across the industry.
The African Export-Import Bank (Afreximbank) has released its Côte d’Ivoire Country Brief, providing an in-depth examination of the West African nation’s macroeconomic outlook, regional and international trade dynamics, financial sector development and debt sustainability profile.
The brief highlights Côte d’Ivoire as one of Africa’s fastest-growing economies. Home to 33.5 million people and with a nominal GDP forecast at USD116.9 billion in 2027, the country has sustained average real GDP growth of around 6.5% per year between 2021 and 2024, accelerating to an estimated 6.6% in 2025. Growth is forecast to moderate to 5.8% in 2026 before rebounding to 6.2% in 2027, supported by rising crude production, continued infrastructure investment and resilient domestic demand.
The brief also points to a notably improved near-term macroeconomic environment. Inflation fell sharply to just 0.1% in 2025, supported by easing commodity price pressures and government measures to stabilise fuel and food prices, with the CFA franc’s euro peg providing a durable exchange rate anchor. The fiscal deficit narrowed to 3% of GDP in 2025, meeting the West African Economic and Monetary Union (UEMOA) ceiling, backed by stronger revenue collection and ongoing reforms to tax administration and VAT digitalisation.
On trade, this edition charts a significant expansion. Total trade surged from USD26 billion in 2018 to USD57 billion in 2025, anchored by Côte d’Ivoire’s status as the world’s largest cocoa producer, commanding around 40% of global supply, alongside growing exports of cashew nuts, rubber, gold and hydrocarbons.
READ ALSO: Oando Production Hits 42,985 boepd as Revenue Grows 9% in 9M 2026
The February 2026 Calao South gas condensate discovery and rising output from the Baleine field signaled a broadening export base over the medium term. Strategically positioned on the Gulf of Guinea, with the ports of Abidjan and San Pedro acting as principal gateways into Francophone West Africa, Côte d’Ivoire is deeply embedded in regional trade networks, with African markets accounting for around 22% of its goods trade in 2025.
The brief further notes Côte d’Ivoire’s financial sector strength. The country holds the largest banking sector in UEMOA, accounting for more than a third of regional banking assets. Regulatory reforms, including the adoption of Basel II and Basel III standards, have strengthened supervision and resilience, while the launch of the Central Bank of West African States’ (BCEAO) interoperable instant payment platform in September 2025 is broadening access to digital financial services across the economy.
As this edition notes, Côte d’Ivoire “has moved from a period of rapid debt accumulation and elevated debt service pressure towards a more stable debt profile, supported by fiscal consolidation, active debt management and continued multilateral engagement.” This is a trajectory that positions the country to fully capitalise on the ambitious targets of its 2026-2030 National Development Plan.
Afreximbank’s Group Chief Economist & Managing Director Research commented: “Côte d’Ivoire is consolidating its position as a leading West African growth and trade hub. Its expanding energy sector, world-class agricultural base, regional port infrastructure and increasingly sophisticated financial system offer a strong foundation to attract investment, scale value addition and deepen trade links across Africa.”
Shettima Heads to Ebonyi for APC Presidential Campaign Rally
Flamingos Return To Abuja After Historic U-17 World Cup Triumph
FCT Police Chief Inspects Worship Centres, Commends Residents for Peaceful Conduct
2027: Shettima Arrives in Uyo for APC Presidential Campaign Rally
NDC Warns Judiciary Against Turning Courts Into Tools for Political Opposition
Elohor Aiboni Honoured with DTN@100 Changemaker Award
Trump’s Family Unveils New Cryptocurrency Platform
Senate Denies Receiving Petitions Against Tinubu’s Ambassadorial Nominees
Dangote Cement Lights Up Benue Host Communities With CSR Initiatives
Reps Recommend 3-year Jail Term For Aviation minister
Tems Sets New Record On Billboard Hot 100 Chart
