Energy
Shettima Decries Nigeria’s Suboptimal Gas Earning
Comparatively, Nigeria’s $5 billion earning from gas is suboptimal.
This is the view of Vice President, Sen Kashim Shettima, who mirrored Nigeria against another African country, Egypt, on Thursday at the 6th Valuechain Annual Lecture and Awards in Abuja.
Decrying the situation, the Vice President pointed out that Egypt had 30 percent lower gas reserves in comparison with Nigeria, yet earns more from the natural resource than Nigeria.
According to him, Nigeria ranks 9th globally in terms of proven reserves, with over 200 trillion cubic feet of untapped gas resources.
Sen Shettima maintained that the import of truly exploiting the nation’s gas reserves could not be over-stated, as gas was critical to the nation’s power supply, not only accounting for 80 percent of power generation today, but expected to be the dominant power generation source by the end of this decade.
The Vice President, represented by the Special Adviser to the President on Energy and Power Infrastructure, Office of the Vice President, Sodiq Wanka, said, “Today, Nigeria earns around $5bn from gas production, a figure that is 40 per cent less than in Egypt, which has around 30 per cent of Nigeria’s reserves.
“Our production to reserve ratio is less than a third of Egypt’s, less than a quarter of Algeria’s and around 10 per cent of Malaysia’s.
“In the aftermath of the Russia-Ukraine war, the EU and many other nations were shopping for Liquefied Natural Gas at the same time that Nigeria’s largest LNG assets were operating significantly below capacity because gas supply was inadequate.
“At this rate, according to decade of gas analysis, we could have a demand-supply gap of up to 10bscfd (billion standard cubic feet per day) of gas by 2030.”
He observed that the theme of the event around midstream gas infrastructure was timely, as the importance of critical gas transport infrastructure, processing facilities and other midstream infrastructure could not be overstated.
“One only needs to look at the number of power plants and factories that have built up around the Escravos-Lagos-Pipeline System and its various spurs.
Today, I am glad to learn that the AKK pipeline is nearing completion,” he said.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that crude oil imports by domestic refineries rose by 151.5 percent to 5.13 million barrels in July 2026, from 2.04 million barrels in June.
In a related development, domestic crude supply to refineries fell sharply during the month.
According to the NMDPRA’s July 2026 Midstream and Downstream Statistics, local refineries received a total of 17.88 million barrels of crude in July, comprising 12.75 million barrels supplied domestically and 5.13 million barrels imported.
Imported crude therefore accounted for 28.7 percent of total crude receipts by domestic refineries in July, while domestic supplies contributed the remaining 71.3 percent.
The 5.13 million barrels imported in July represented a significant rebound from the 2.04 million barrels recorded in June. It was also higher than the 2.08 million barrels imported in May and 0.41 million barrels in April.
READ ALSO: Host Community Angry at FG’s Political Undertones on Kolmani Oilfield
However, July’s import volume remained below the 9.43 million barrels recorded in March, the highest monthly volume so far in 2026.
The data showed that crude imports stood at 0.71 million barrels in January before rising to 4.25 million barrels in February and peaking at 9.43 million barrels in March.
Imports subsequently plunged to 0.41 million barrels in April, before recovering to 2.08 million barrels in May, 2.04 million barrels in June and 5.13 million barrels in July.
The report also disclosed that domestic crude supply to refineries declined by 25.4 percent month-on-month, falling from 17.08 million barrels in June to 12.75 million barrels in July.
In January, domestic refineries received 8.83 million barrels of domestic crude and 0.71 million barrels of imported crude, bringing total receipts to 9.54 million barrels.
The figure rose to 13.13 million barrels in February, comprising 8.88 million barrels of domestic crude and 4.25 million barrels of imports.
March recorded the highest total crude receipts at 20.92 million barrels, with domestic supply contributing 11.49 million barrels and imports 9.43 million barrels.
Total receipts stood at 18.37 million barrels in April, made up of 17.96 million barrels of domestic crude and 0.41 million barrels of imports.
In May, refineries received 17.92 million barrels, comprising 15.84 million barrels of domestic crude and 2.08 million barrels of imports, while June recorded 19.12 million barrels, made up of 17.08 million barrels of domestic crude and 2.04 million barrels of imports.
Dangote Petroleum Refinery and Petrochemicals FZE has increased the gantry price of Premium Motor Spirit (petrol) from N1,185 to N1,200 per litre, effective August 26, 2026.
In an official communication to customers issued on Tuesday, the refinery’s Group Commercial Operations announced revised depot prices for gantry and coastal deliveries.
The email, titled ‘PMS Price Change Communication (N1,185 per Litre To N1,200 Per Litre)’, asked customers to take note of the revised DPRP PMS gantry and coastal price, which is effective 26th August 2026.
READ ALSO: US Hails DPRP as Nigeria’s Petroleum Exports Surge Seven Times
According to the table contained in the notice, the coastal price rose from N1,562,265 per metric tonne to N1,582,380, while the gantry price increased from N1,185 to N1,200 per litre.
The refinery further directed customers to return all Authorisation to Collect documents for repricing, adding that a new volume contract would be issued for immediate loading resumption.
“You are advised to return all ATCs for repricing, and a new volume contract will be issued for immediate loading resumption. Should you require any further clarification, please do not hesitate to contact us,” the notice said.
The latest adjustment represents a N15 per litre increase in the gantry price and comes barely days after the refinery raised the price from N1,165 to N1,185 per litre. The previous increase took effect from midnight on August 21, 2026, according to industry trackers.
However, the latest hike comes against a backdrop of falling international crude oil prices. Data from oilprice.com on Tuesday showed West Texas Intermediate crude trading at $82.13 per barrel, down $2.88 or 3.39 per cent, while Brent crude stood at $88.37 per barrel, declining by $3.80 or 4.12 per cent. Murban crude also fell to $92.71 per barrel, shedding $8.73 or 8.61 per cent.
Our correspondent gathered that marketers and depot operators who received the circular might have begun returning existing ATCs for repricing in line with the refinery’s directive.
The N15 increase could result in higher pump prices as oil marketers factor in transportation, landing and other downstream costs. Petrol is expected to return to an average of N1,250 per litre.
The Dangote Group has yet to respond to messages from our correspondent.
The price increase comes at a time of renewed volatility in the international oil market amid the ongoing US-Iran conflict. Reuters reported that oil prices fell as investors viewed the latest US sanctions against Iran as less threatening to global oil supplies than a military escalation. However, analysts warned that the decline could be an overreaction, noting that prices could rise sharply if Iran retaliates militarily.
Reuters also reported that supply disruption risks remained, with only two commodity vessels transiting the Strait of Hormuz on Monday, the lowest daily tally since early May. The waterway handled about one-fifth of global oil consumption before the conflict began, leaving the market vulnerable to further disruptions.
The 31 companies that emerged winners of 37 oil and gas blocks in the 2025 Licensing Round must pay their signature bonuses within the stipulated period or risk losing their provisional awards.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) handed down the warning on Sunday, one month after it hosted the commercial bid conference in Abuja, where the successful companies emerged as winners of the available blocks.
The NUPRC said the process of compliance with the payment of signature bonuses had commenced following the issuance of provisional awards to the successful bidders.
“Exactly a month ago, the NUPRC hosted the 2025 commercial bid conference in Abuja where 31 companies emerged winners of 37 oil and gas blocks. Having issued the winners with the provisional awards, compliance with the payment of signature bonuses has already begun.
“Winners who fail to pay signature bonuses within the stipulated time frame in line with the Petroleum Industry Act will forfeit their bid guarantee and lose their provisional awards to the reserve bidders,” the NUPRC stated.
READ ALSO: MOSOP Cautions Against Secret Drilling in Ogoniland
The 37 blocks offered in the licensing round comprise Petroleum Prospecting Licences covering the Niger Delta onshore, shallow water and deep offshore areas, as well as frontier basins.
Among the blocks are PPL 2A29 to PPL 2A62 in the Niger Delta, PPL 2010 in the deep offshore, PPL 308 in the Benin Basin, PPL 900 to PPL 903 in the Anambra Basin, PPL 700 in the Chad Basin and PPL 800 and PPL 801 in the Benue Trough.
The commission also published the names of the 31 successful companies and the ranked reserve bidders for each of the 37 blocks.
A total of 143 companies participated in the licensing round, submitting about 200 bids for the 37 blocks. However, 13 of the 50 blocks initially put up for bidding attracted no bids.
Under the Petroleum Industry Act (PIA) and the applicable licensing guidelines, successful bidders are required to pay signature bonuses ranging from $3m to $7m per block.
They are also expected to provide the required guarantees, pay first-year rents and satisfy other post-award conditions within the prescribed period. Failure to meet the requirements will result in the automatic transfer of the affected award to the next-ranked reserve bidder, according to the NUPRC.
The commission’s Chief Executive Officer, Mrs Oritsemeyiwa Eyesan, had earlier urged the successful bidders to make the required payments without delay and commence development of the awarded assets.
The NUPRC urged interested members of the public and stakeholders to visit the 2025 Licensing Round portal for further information on the awards and compliance requirements.
Under the PIA 2021 guidelines, winning bidders are required to pay their signature bonuses within a strict 90-day window. Since provisional award letters were issued immediately following the commercial bid conference on July 21, 2026, it means 30 days have already elapsed, and companies have 60 days left to remit the funds.
This shows that the regulator expects the signature bonuses to be paid on or before October 19, 2026.
If a winning company fails to complete the payment of its statutory signature bonus along with first-year rent within this 90-day window, the company automatically forfeits its bid guarantee. The provisional award will be revoked and immediately reassigned to the designated reserve bidder for the asset.
Umar Cautions Against Irregular Policies in Nigeria’s Oil Industry
PENGASSAN to Link Up with NUPRC to Unlock 3mmbopd
2027: Tinubu Holds Crucial Meeting with APC Governors at Presidential Villa
Tinubu Swears In Abel Enitan as New Head of Civil Service
Tinubu Banks on NLNG Train 7 to Boost Nigeria’s Gas-led Economy
Ogoni Committee Washes Hands Off Contracts, 40 NNPC Ltd’s Job Slots
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
You have brought up a very superb points, thanks for the post.
I do agree with all the ideas you’ve presented in your post. They are very convincing and will definitely work. Still, the posts are very short for starters. Could you please extend them a bit from next time? Thanks for the post.
Wonderful website. Lots of helpful information here. I am sending it to some pals ans also sharing in delicious. And of course, thanks for your sweat!
There are some interesting points in time on this article but I don’t know if I see all of them center to heart. There’s some validity but I will take hold opinion till I look into it further. Good article , thanks and we would like more! Added to FeedBurner as effectively
At this time it sounds like Movable Type is the best blogging platform available right now. (from what I’ve read) Is that what you’re using on your blog?
What¦s Happening i am new to this, I stumbled upon this I have found It positively useful and it has helped me out loads. I am hoping to contribute & assist other users like its aided me. Great job.
you have a great blog here! would you like to make some invite posts on my blog?
Hi, Neat post. There is a problem with your site in internet explorer, would test this… IE still is the market leader and a big portion of people will miss your excellent writing because of this problem.
Generally I don’t learn post on blogs, but I would like to say that this write-up very compelled me to check out and do it! Your writing style has been surprised me. Thank you, very great article.
Fantastic beat ! I would like to apprentice at the same time as you amend your site, how can i subscribe for a weblog site? The account helped me a appropriate deal. I were tiny bit familiar of this your broadcast provided brilliant clear concept