Energy
Why Fuel Prices Remain Volatile — NMDPRA
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has identified crude oil sourcing, single-source domestic refining, logistics and transportation costs among factors driving volatility in fuel pump prices.
Head of Public Affairs, NMDPRA, Mr George Ene-Ita, made this known in an interview with the News Agency of Nigeria in Abuja on Sunday.
Ene-Ita described the issues surrounding continuous fuel price increases as knotty, adding that fuel prices had been completely deregulated and were, therefore, subject to market volatility.
He said the sourcing of crude oil as feedstock and the time lag between crude procurement and arrival at refineries were factored into product pricing.
READ ALSO: NSCDC, IPL Sing Discordant Tunes on Okrika Pipeline Incident
According to him, marine and inland taxes associated with the movement and supply of petroleum products were also factored into the pricing.
“This issue is knotty in the sense that there are various factors involved.
“Pump price of petrol has been completely deregulated. And if this is the case, it also means that all volatilities associated with supply have to be factored in.
“These factors include single-source domestic refining, sourcing of crude oil as feedstock, time lag between when crude is sourced offshore and when it eventually arrives at the refinery.
“They also include time lag between when PMS cargoes are ordered and when they eventually arrive our ports for subsequent inland distribution and supply in the case of imported fuel.
“There are also transportation and landing costs, as well as marine and inland taxes.
“Perhaps when the domestic refining ecosystem becomes more robust, competitive and sustainable, the issues regarding pricing will become clearer and more beneficial to consumers,” he said.
Ene-Ita said refinery pricing templates and ex-depot prices were not regulated under the current framework.
He, however, said NMDPRA was collaborating with stakeholders and agencies such as the Federal Competition and Consumer Protection Commission to ensure price equilibrium and parity at the last mile.
NAN reports that the current market price for Brent crude oil is $96.28 per barrel, driven by the ongoing geopolitical conflict and tensions in the Middle East.
The pump price of fuel currently ranges between N1,299 and N1,350 in the FCT, following an upward adjustment in the gantry (ex-depot) price by the Dangote Refinery, which ranges between N1,265 and N1,290 per litre.
Motorists and consumers have expressed concern over the continued rise in fuel pump prices, saying it has worsened hardship, inflation and the high cost of living.
Reacting to this, the Independent Petroleum Marketers Association of Nigeria urged the Federal Government to intervene in crude oil pricing for domestic refining to moderate fuel prices and ease pressure on consumers.
IPMAN President, Maigandi Garima, told NAN that the current international crude oil market posed challenges to domestic petrol pricing because refiners had to procure crude at prevailing market prices.
Garima said higher crude oil prices translated into higher production costs for refiners, who would subsequently pass the additional cost to the market.
He called for government intervention to reduce the cost of crude supplied to domestic refineries during periods of international market volatility.
According to him, such intervention should not be interpreted as a return to fuel subsidy, but as a temporary measure to support domestic refining and reduce pressure on consumers.
“What we are saying is that if Nigerians can make this huge investment, we should support them. Government can intervene by reducing the cost of crude oil to the refinery.
“When the refinery refines the product at a lower cost, it can also reduce the price for Nigerians, and this will help the economy,” he said.
Garima also called for a more predictable crude oil pricing arrangement for domestic refineries, saying frequent fluctuations made it difficult to sustain stable fuel prices.
He urged the government and relevant stakeholders to explore mechanisms that would provide a more stable crude supply and pricing framework for domestic refining.
He said such an arrangement would enable domestic refineries to plan better and potentially provide more stable prices for petroleum products.
Courtesy – NAN
Energy
N4bn Compensation Dispute Threatens Ikot Abasi Power Project
Nearly 20 years after the Federal Government awarded the contract for the 330kV Ikot Abasi Transmission Line, the Niger Delta Power Holding Company Limited (NDPHC) has turned to the Akwa Ibom State Government to break a N4 billion compensation deadlock threatening the completion of the strategic power project.
The transmission project, awarded in 2006 under the National Integrated Power Projects (NIPP), has remained stalled primarily over unresolved community and wayleave compensation issues.
But, to ensure the completion of the project, NDPHC Managing Director/Chief Executive Officer, Jennifer Adighije, is now seeking the intervention of Akwa Ibom State Governor, Pastor Umo Eno, to clear the outstanding issues and enable the contractor, Anit Energy, to return to site.
Adighije made the appeal during a courtesy visit to the Governor in Uyo, Akwa Ibom State.
READ ALSO: Organised Labour Supports Workers’ Demand for N500 PMS Price, N500,000 Minimum Wage
She disclosed that the latest valuation of the outstanding wayleave obligations was slightly below N4 billion.
The NDPHC boss said the prolonged delay was particularly concerning because the contractor had reportedly completed about 90 per cent of the engineering, procurement and construction procurement for the project.
She added that substantial project materials, including conductors and tower members worth millions of dollars, had already been deployed along the project corridor between Adiasim and Ikot Ekpene, but were still lying across communities as the impasse persists.
“We are therefore pleading for your kind intervention as a shareholder and board member of the company,” Adighije told the governor.
According to her, resolving the outstanding community issues would allow the contractor to remobilise to site and bring the long-delayed project to completion.
NDPHC is now targeting May 29, 2027, for commissioning of the transmission line, subject to the successful resolution of the outstanding compensation and community challenges.
Adighije said NDPHC was keen to support the state’s development ambitions through its role as a major interventionist agency in Nigeria’s electricity sector.
“We want to be part of your ARISE Agenda,” she said, referring to the governor’s development programme.
She also welcomed the establishment of the Akwa Ibom State Electricity Regulatory Commission, saying NDPHC had commenced discussions with the commission on the development of appropriate electricity-market frameworks for the state.
According to her, officials of the commission had visited NDPHC and requested information on the company’s projects in Akwa Ibom, while a joint working group was being established to examine how the assets could be better utilised and electricity access extended to underserved communities.
Also speaking, NDPHC Executive Director, Strategy and Commercial, Mr. Patrick Obahiagbon, commended the Governor’s administration for its development initiatives across the state.
Responding, Governor Eno welcomed the NDPHC initiative and pledged to take the Ikot Abasi project before the State Executive Council for consideration. The governor said the state government would examine the outstanding issues and determine how it could intervene to facilitate the completion of the project.
Energy
Nigeria-Libya Gas Pipeline as FG Eyes New LNG Markets
There are indications that the Nigeria-Libya Gas Pipeline would go from the drawing board to reality, as it has emerged as a major option to help Nigeria break into new markets for her gas reserves.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed this at Gastech 2026 in Bangkok, Thailand, during a high-level engagement with global energy companies, investors and governments on expanding Nigeria’s gas production, infrastructure, domestic utilisation and export markets.
The renewed push for the Nigeria-Libya pipeline topped the agenda for the meeting between Ekpo and Libya’s Minister of Oil and Gas, Dr Khalifa Rajab Abdulsadek.
Under the proposed framework, Nigeria and Libya are expected to explore a Memorandum of Understanding (MoU) and establish a joint technical team to assess the feasibility, financing, infrastructure requirements, security considerations and commercial viability of the project.
READ ALSO: ‘Obi Has Nowhere to Hide’ — APC Campaign Council Tackles Peter Obi Over Anambra Record
The NNPC Limited is expected to spearhead Nigeria’s participation in the bilateral initiative. If developed, the pipeline would provide another potential route for transporting Nigerian gas through North Africa to European markets, giving Nigeria an additional platform to monetise its gas resources beyond existing LNG channels.
According to Ekpo, the Federal Government was determined to create an investment environment capable of attracting the capital, technology and strategic partnerships required to convert the country’s gas reserves into economic growth, industrial development and jobs.
“Nigeria is open for business. We have put in place the right fiscal policies and operating environment, and the security of investors and their investments is guaranteed,” he said.
He revealed that the NNPC Limited would play a central role in translating Nigeria’s bilateral energy engagements into commercially viable projects, strategic investments and sustainable development.
The minister’s engagements also revealed plans by major industry players to significantly ramp up domestic gas production and infrastructure.
Energy
Gas Industry Must Commercialise Methane – NLNG
Gas producers must stop treating methane reduction as an environmental cost, because methane released into the atmosphere represents lost gas, lost revenue and lost energy that could otherwise be recovered and sold.
The Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG) Adeleye Falade, made the declaration during a panel titled “Capturing the Lost Opportunity: Driving Global Alignment on Methane Abatement Across Natural Gas Supply Chains,” at the Gastech 2026 Exhibition and Conference in Bangkok, Thailand.
READ ALSO: Spike in Petrol Price Moves NLC to Demands Emergency Palliatives
Taking from the company’s experience, he highlighted that investments in methane abatement could pay for themselves while improving plant efficiency and asset reliability.
The NLNG CEO said the commercial value of recovering lost gas should become a central part of the global industry’s approach to methane management.
“Every tonne emitted is lost product, lost revenue and lost energy; gas we could have sold. Every molecule of methane avoided is both an emissions reduction and a recovered energy resource.”
According to him, the NLNG’s new boil-off gas compressor and start-up gas recovery project demonstrate the business case for methane reduction, with each project expected to deliver methane reductions of about 10–15 percent while also recording positive projected net present values. “The most compelling business case is the simplest one: the projects that cut our methane also pay for themselves.
“The same discipline that reduces methane also improves asset reliability and plant efficiency. The returns show up in more places than the emissions ledger,” Falade said.
He added that the starting point for methane abatement was credible measurement of gas losses, which enables companies to identify where methane is being lost, channel investment towards the right interventions and independently verify the results.
According to Falade, the NLNG had demonstrated that producers in developing economies could meet globally recognised standards for emissions measurement and reporting, despite infrastructure and other constraints.
He disclosed that the NLNG had achieved Gold Standard recognition under the Oil and Gas Methane Partnership (OGMP) 2.0 and became the first company in Africa to attain Level 5 methane emissions reporting.
Its measurement, reporting and verification system is independently assured by DNV in line with ISO 14064.
The NLNG’s methane-management programme includes site-wide optical gas imaging, a structured Leak Detection and Repair programme, as well as phased deployment of continuous monitoring and real-time emissions dashboards across its plant and vessels.
Falade said methane reduction was also being incorporated into the design of Train 7, which is expected to raise the NLNG’s LNG production capacity from 22 million tonnes per annum to 30 million tonnes.
The commercial case for emissions abatement was not new to Nigeria, he added, pointing to the NLNG’s longstanding role in converting gas that would otherwise have been flared into a marketable product.
According to him, the company’s activities have contributed to reducing Nigeria’s gas-flaring rate from above 65 percent to below 20 percent.
Beyond its own operations, Falade revealed that the NLNG was extending methane-management requirements across its supply chain through its Scope 3 Advocacy Plan.
The company engages feed-gas suppliers and contractors to measure, disclose and reduce emissions, while verified upstream emissions data and emissions-related criteria are incorporated into supplier selection and evaluation.
Falade also called for greater consistency in methane measurement and reporting requirements across jurisdictions, arguing that divergent standards make enforcement uneven and complicate meaningful comparisons between producers.
“The industry does not need weaker standards; it needs stronger, shared ones backed by real measurement,” he said.
On the tension between emissions reduction, energy access and affordability, Falade said developing economies should not be forced to choose between economic development and climate action.
“Developing economies cannot be asked to choose between economic development and emissions reduction. Both must progress together,” he said.
Other panellists were Zubin Bamji of the World Bank, Niels Dijksman of Brunei LNG and Hiroyuki Mori of JOGMEC.
The session was moderated by energy economist Dr Carole Nakhle of Crystol Energy.





