Energy
Presidency Claims Credit for Steady Fuel Supply in Nigeria
The Presidency has claimed that President Bola Ahmed Tinubu’s naira-for-crude initiative has shielded Nigeria from the severe fuel scarcity afflicting major economies worldwide amid the ongoing Iran-Israel-US conflict in the Middle East.
The Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, on Wednesday, asserted that the policy, approved in July 2024 and launched on October 1, 2024, has ensured uninterrupted petroleum product supply in Nigeria while countries across Europe, Asia, and Africa experience acute shortages and long fuel queues.
In an article titled ‘Middle-East Crisis: How Tinubu’s Policy of Naira-for-Crude Guarantees Supply Security in Nigeria,’ released by the State House on Wednesday, Ajayi said the six-week-old conflict, worsened by Iran’s closure of the Strait of Hormuz, has triggered global economic chaos.
The Strait of Hormuz, a critical maritime corridor between the Persian Gulf and the Gulf of Oman, accounts for over 20 per cent of global oil and gas flows.
“While the cost of PMS and other petroleum products has also gone up in Nigeria, as in other countries, the global energy crisis has not led to a domestic scarcity of petroleum products, unlike in major countries where people are standing in long queues for days at gas stations,” Ajayi stated.
He cited examples of crisis-hit nations implementing emergency measures. Ajayi said Vietnam is now encouraging remote work to reduce transportation costs, Bangladesh has imposed daily limits on fuel sales and is closing universities early, Pakistan is implementing a four-day government work week and temporary school closures, and Egypt has mandated shops and restaurants to close by 9 p.m. daily.
“In the Philippines, the government has declared a national energy emergency. In parts of the United States, Americans join long queues to buy fuel,” he added.
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The naira-for-crude initiative, managed by a technical committee chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and including the Executive Chairman of the Nigerian Revenue Service, Zacch Adedeji, has developed a framework ensuring supply security and economic stability.
Ajayi said the Dangote Petroleum Refinery in Lekki, Lagos, has been central to the policy’s success, scaling up production at a critical time and prioritising Nigeria’s energy security over more attractive export options. “Petrol queues, even during festive seasons, have disappeared since the Refinery commenced PMS production in October 2024,” he noted.
Despite a 10 per cent increase in crude oil prices, Ajayi said the refinery recently cut petrol prices by N75 per litre, even while paying an additional premium of up to $18 per barrel for Nigerian crude oil cargoes, demonstrating the benefits of local refining. He argued that the ongoing crisis has also positioned Nigeria as a strategic exporter to Africa.
In March 2026 alone, the Dangote refinery exported close to 500,000 tons of refined products to various African countries, generating significant export earnings. “Many countries in Europe, Asia, and major African countries, such as South Africa and Kenya, now rely on supplies from Nigeria through the Dangote refinery,” Ajayi stated.
He emphasised that the refinery has eliminated the huge demurrage bill that the Nigerian National Petroleum Company Limited used to incur in maintaining safety stock on several floating vessels.
Ajayi said, “The Dangote refinery is transforming Nigeria into a more resilient and energy-independent nation, providing all-year-round availability of petroleum products and enabling the country to withstand external shocks better.”
He described the refinery as more than an industrial asset, calling it “the foundation of Nigeria’s energy sovereignty and a catalyst for sustainable economic growth.”
The naira-for-crude policy allows Dangote to pay for crude oil supplied to the refinery by the NNPC in naira rather than dollars, reducing pressure on foreign exchange reserves while ensuring a stable domestic fuel supply.
Energy
Nigeria Records Zero Aviation Fuel Imports for 13 Months
Nigeria’s domestic refineries have completely displaced imported Aviation Turbine Kerosene, commonly known as aviation fuel or Jet A-1, with official industry data showing that local producers solely supplied the country’s aviation fuel market over the past 13 months.
An analysis of the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s latest petroleum supply statistics showed that between June 2025 and June 2026, there was no recorded import of aviation fuel by Oil Marketing Companies, making domestic refineries the exclusive source of supply throughout the period.
The development marks a significant shift for Nigeria’s aviation fuel market, which had relied heavily on imported Jet A-1 for years due to inadequate domestic refining capacity.
The data showed that domestic refinery receipts fluctuated significantly during the review period, rising from 1.3 million litres per day in June 2025 to 1.5 million litres per day in July before climbing sharply to 3.5 million litres per day in August.
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Supplies later moderated to 1.6 million litres per day in September and 2.7 million litres per day in October, while no receipt was recorded in November. Output then surged dramatically to 14 million litres per day in December, the highest level recorded during the period.
In 2026, domestic refinery receipts fell to 6.0 million litres per day in January before dropping further to 1.6 million litres per day in February. Supplies later recovered to 2.1 million litres per day in March, increased to 3.0 million litres per day in April, rose further to 4.3 million litres per day in May before declining to 2.5 million litres per day in June.
Month-on-month data also showed that average ATK receipts dropped from 3.6 million litres per day in May to 2.5 million litres per day in June, representing a decline of approximately 31 per cent.
An analysis of the NMDPRA data showed that ATK receipts increased from 1.3 million litres per day in June 2025 to 1.5 million litres per day in July, an increase of 0.2 million litres per day or 15.4 per cent.
Supplies then surged to 3.5 million litres per day in August, representing a sharp increase of 2.0 million litres per day or 133.3 per cent over July. However, receipts declined to 1.6 million litres per day in September, a drop of 1.9 million litres per day or 54.3 per cent, before recovering to 2.7 million litres per day in October, reflecting an increase of 1.1 million litres per day or 68.8 per cent.
No domestic refinery receipts were recorded in November 2025, indicating a 100 per cent decline from October’s level. Supply rebounded strongly in December 2025, when domestic refinery receipts climbed to 14.0 million litres per day, the highest level during the review period.
Although a percentage comparison could not be made because no receipts were recorded in November, the December figure represented an increase of 14.0 million litres per day.
Receipts then fell sharply to 6.0 million litres per day in January 2026, a decrease of 8.0 million litres per day or 57.1 per cent, before dropping further to 1.6 million litres per day in February, down by 4.4 million litres per day or 73.3 per cent.
Supplies recovered modestly to 2.1 million litres per day in March, an increase of 0.5 million litres per day or 31.3 per cent, rose to 3.0 million litres per day in April, up by 0.9 million litres per day or 42.9 per cent, and increased further to 4.3 million litres per day in May, representing a gain of 1.3 million litres per day or 43.3 per cent.
However, the upward trend reversed in June 2026, as domestic refinery receipts fell from 4.3 million litres per day in May to 2.5 million litres per day, a decline of 1.8 million litres per day or 41.9 per cent.
Throughout the 13 months, no aviation fuel imports by Oil Marketing Companies were recorded, indicating that 100 per cent of Nigeria’s reported ATK receipts came from domestic refineries.
Industry data further showed that aviation fuel consumption remained relatively stable despite fluctuations in refinery receipts.
Consumption stood at 3.5 million litres per day in January before declining to 2.9 million litres per day in February. It fell further to 2.1 million litres per day in March before rising to 2.5 million litres per day in April and increasing to 3.1 million litres per day in May. Consumption moderated again to 2.9 million litres per day in June, representing a six per cent decline compared to the previous month.
The latest NMDPRA daily consumption figures also showed that aviation fuel demand averaged about 2.9 million litres per day, close to the country’s 2026 benchmark demand of three million litres daily.
The regulator noted that petroleum product consumption figures are based on volumes trucked into the domestic market.
The report also showed that ATK supply rose from 2.6 million litres per day in April to 3.6 million litres per day in May, representing an increase of about 38.5 per cent during that reporting cycle.
The disappearance of aviation fuel imports underscores the growing contribution of domestic refining following the commencement and expansion of operations at new and rehabilitated refineries across the country.
For years, Nigeria depended almost entirely on imported aviation fuel, exposing airlines to exchange rate volatility, high logistics costs and periodic supply disruptions. The growing role of local refineries is expected to improve product availability, shorten supply chains and reduce the country’s dependence on imported petroleum products.
The development also aligns with the Federal Government’s broader objective of achieving energy security through increased domestic refining capacity while conserving foreign exchange previously spent on importing refined petroleum products.
Although monthly refinery receipts remained volatile, the absence of imported ATK throughout the review period suggests that local production has become sufficiently established to support Nigeria’s aviation fuel requirements, with consumption largely hovering around the country’s daily benchmark demand of three million litres.
The development comes against the backdrop of a sharp increase in aviation fuel prices that recently pushed up the cost of air travel in Nigeria.
In March 2026, Jet A-1 prices rose from about N900 per litre in January to N2,557 per litre by the end of March, representing an increase of 184 per cent. The surge, which was linked to disruptions in the global oil market following the Middle East crisis, placed significant pressure on airlines because aviation fuel accounts for about 40 per cent of their operating costs.
Although intense competition initially prevented carriers from immediately passing the higher cost to passengers, domestic airfares later rose to N200,000 and above for one-hour, one-way flights as Jet A-1 prices remained between N1,750 and N2,650 per litre.
The sharp increase in airfares intensified calls for a more reliable and affordable domestic supply of aviation fuel.
The latest supply figures, showing that domestic refineries accounted for all recorded ATK receipts between June 2025 and June 2026, could provide some relief to the aviation industry by reducing its exposure to imported fuel and foreign exchange volatility.
However, the significant month-to-month swings in local receipts, from a record 14 million litres per day in December 2025 to 2.5 million litres per day in June 2026, show that supply stability remains as important as domestic production.
Courtesy – The Punch
Energy
Chevron Wins a Bid in Nigeria’s 2025 Licensing Round
Star Deep Water Petroleum Limited, a Chevron company and operator of the Agbami unit, has won the bid for Petroleum Prospecting Licence (PPL) 2010 in Nigeria’s 2025 licensing round.
Biztellers reports that the winners of the bid round were announced by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, on Tuesday July 21, 2026.
“Chevron continues to evaluate high-potential exploration opportunities across our global portfolio, with Nigeria long being an important part of our business,” Kevin McLachlan, Vice President of Exploration at Chevron said. “This award reflects our disciplined approach to adding quality acreage to our portfolio.”
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“We appreciate the efforts of the Nigerian Upstream Petroleum Regulatory Commission and all stakeholders in delivering a successful licensing round,” said Jim Swartz, Chairman and Managing Director of Chevron companies in Nigeria and the Mid-Africa region. “Chevron remains committed to working collaboratively with the Nigerian government and our partners to support the development of Nigeria’s oil and gas industry and contribute to the country’s broader economic growth,” he added.
A company statement has it that the award of the PPL 2010 supports Chevron’s global exploration strategy, which combines technology-enabled exploration, disciplined portfolio management and selective entry into high-potential opportunities. Beyond Nigeria, Chevron continues to advance exploration activities across Africa while growing a global portfolio to develop the energy needed to enable human progress.
Energy
Navy Uncovers 9 Illegal Refineries in Rivers, Seizes 104,000 Litres of Stolen Crude
The Nigerian Navy has uncovered nine illegal refining sites comprising 23 dugout pits in Bonny Local Government Area of Rivers State, with 18 of the pits containing an estimated 104,000 litres of products suspected to be stolen crude oil.
The Director of Naval Information, Captain Abiodun Folorunsho, disclosed the discovery in an operational report on Tuesday in Abuja, according to the News Agency of Nigeria.
He said the sites were uncovered during an operation carried out by personnel of Forward Operating Base Bonny under Operation DELTA SENTINEL.
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The operation also neutralised five newly excavated pits that had been prepared for imminent use before they could become operational, preventing the further expansion of the illegal refining network in the area.
Folorunsho said the operation delivered a significant setback to crude oil theft syndicates operating in the Bonny area, targeting criminal infrastructure across two communities simultaneously.
“Following actionable intelligence, personnel targeted criminal infrastructure concealed within the Wakama/Bolo and Aworkiri communities. The operation denied economic saboteurs the opportunity to activate new refining locations and sustain illicit petroleum production,” he said.
“The operation dealt another major setback to crude oil theft syndicates and further reinforced the service’s resolve to safeguard Nigeria’s critical oil and gas infrastructure,” Folorunsho added.
He said eight locally fabricated refining pots and three large storage tanks were also recovered during the operation, further disrupting the criminal network’s refining capability.
“All illegal facilities and recovered products were handled in accordance with extant anti-crude oil theft procedures,” he said, adding that by targeting both active and emerging illegal refining hubs, the Navy continues to weaken the operational resilience of crude oil theft syndicates.
“The latest success highlights the Nigerian Navy’s determination not only to disrupt illegal refining activities, but also to prevent criminal networks from rebuilding their infrastructure. By targeting both active and emerging illegal refining hubs, the service continues to weaken the operational resilience of crude oil theft syndicates and protecting Nigeria’s economic interests,” he said.





