Latest news with #BolaAhmedTinubu
Zawya
20 hours ago
- Business
- Zawya
Nigeria Issues Upstream Executive Order, Prioritizing High Returns for Oil & Gas Operators
Nigerian President Bola Ahmed Tinubu has signed an executive order designed to lower costs and enhance revenue from oil and gas projects. The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) introduces performance-based tax incentives for upstream operators and is expected to play an instrumental role in attracting investment, driving development and unlocking greater value from the country's oil and gas resources. As the voice of the African energy sector, the African Energy Chamber (AEC) commends the Nigerian government's continued commitment to not only improving the operating climate for oil and gas firms, but strengthening the competitiveness of doing business in Nigeria. The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) is an intentional strategy to transform the country, and with this reform, Nigeria is well-positioned to attract fresh investment across its upstream oil and gas sector – reaffirming the country's position as one of Africa's top producers. The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) will feature incentives for operators who deliver verifiable cost savings that meet defined industry benchmarks. The country's upstream regulator the Nigerian Upstream Petroleum Regulatory Commission will publish the requisite benchmarks on an annual basis and according to asset type. Benchmarks will cover a variety of assets including onshore, shallow-water and deep-water. In addition, the executive order will cap available tax credits at 20% of a company's annual tax liability, thereby protecting the government's revenues as well as fiscal competitiveness. Nigeria's Special Advisor to President Tinubu on Energy Olu Verheijen will spearhead inter-agency coordination, ensuring operators maximize the opportunities presented through the executive order. The executive order could not come at a better time for Nigeria. Targeting two million barrels per day (bpd) in oil production and 12 billion standard cubic feet per day (bscf/d) in gas production – up from the current 7.3 bscf/d – Nigeria requires significant levels of investment in both active fields and exploration blocks. While the country has long-faced investment decline owing to a variety of factors – including regulatory uncertainty and shifts in global spending – recent reforms promise to turn this trend around. The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) follows the implementation of the Petroleum Industry Act (PIA) in 2021, which sought to address industry challenges by providing a comprehensive framework for the country's oil and gas landscape. With both policies, Nigeria is expected to accelerate investment in exploration and production. The impact of the PIA has already been felt across the country, with energy companies – from majors to independents to the national oil company (NOC – making sizable investments. Renaissance Africa Energy – a consortium of independents – is planning $15 billion in spending across 32 oil and projects; ExxonMobil is investing $1.5 billion to revitalize the Usan deepwater oilfield at OML 138; while TotalEnergies and the Nigerian National Petroleum Company is investing $550 million in a non-association gas project. ExxonMobil's Usan field plans to make a final investment decision Q3, 2025. In 2024, the country secured $6.7 billion in investments, with $5.5 billion of this directed towards oil and gas asset acquisitions. Looking ahead, both the PIA (2021) and Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) are expected to entice greater spending across the market, providing operators with strong fiscals that prioritize high returns. By 2029, Nigeria seeks to unlock $30 billion in oil and $5 billion in gas investments, and the policies are anticipated to serve as a driving force behind this goal. 'This recent executive order is a testament to Nigeria's commitment to strengthening its regulatory landscape, improving fiscals and supporting revenue generation across the oil and gas industry. The order is expected to play a significant role in attracting new investment into the country at a time when national production goals require greater capital and technology injection. The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) positions the country as a globally competitive hydrocarbon market,' states NJ Ayuk, Executive Chairman of the AEC. Distributed by APO Group on behalf of African Energy Chamber.
Zawya
4 days ago
- Business
- Zawya
Nigeria:Two years of President Tinubu, a business perspective
AS Nigeria marks two years under the leadership of President Bola Ahmed Tinubu, I believe it is important to reflect, not from the lens of politics, but from the perspective of business, of industry, and of the economy. I speak not only as the Chairman of BUA Group – one of Africa's largest conglomerates, but also as someone who has lived through the complexity of Nigeria's reforms. I have seen the cost of dysfunction, the burden of inefficiency, but more importantly, the promise of a level playing field and the dividends of decisive governance. Fuel subsidy removal The removal of the fuel subsidy is one of the most important decisions taken by this administration. Before that, Nigeria was selling PMS at 200 or 250 Naira per litre, which was about 25 or 30 cents. I doubt there was any country in the world where fuel was being sold at that price. During my trip to Saudi Arabia for the lesser Hajj in February this year, I checked the pump price at one of the petrol stations as we drove from Jeddah to Mecca. When I converted the price to Naira, it was almost 1,500 Naira per litre. That was Saudi Arabia. We could simply not afford the subsidy. It was not just Nigerians who were benefiting from it. We were subsidising the entire region. I remember visiting Niger Republic a few years ago when President Bazoum honoured us. During dinner, he joked and said, 'Thank you for the subsidy.' He said 100 percent of all PMS consumed in Niger was coming from Nigeria because it would cost them three times more to import. There was no incentive for them to bring in their own fuel or refine crude at their own refinery. This was the situation across the region. Today, I understand that our fuel consumption has dropped by almost 40 to 50 percent. It is not because Nigerians are consuming less, but because neighbouring countries have stopped tapping into our subsidised fuel. The PMS is still cheaper in Nigeria, even at 800 or 900 Naira per litre, but the logistics no longer support easy access. Countries like Niger and Benin Republic still take fuel from Nigeria, but others have stopped. The removal of subsidies was needed not only to save the economy but to ensure that Nigerians alone benefit from what is imported. Even if there must be subsidy, it should be for Nigerians only. The money saved is now being channelled to infrastructure, to better support for states, and to other developmental priorities. All the states are receiving more money now, and that has made a real difference. I am of firm opinion that President Bola Ahmed Tinubu made the right decision, and he made it boldly. On the first day he took office, he did what everyone knew had to be done but no one dared to do. He acted immediately. Many criticised him, but he did the right thing, and it saved the country. Had we continued under that burden, only God knows where we would be today. I always say, Mr President is probably the only one who had the courage to take such hard and necessary decisions. On the unification of the foreign exchange regime The unification of the foreign exchange market is another critical reform. Before this, many of us in the business community spent most of our time chasing foreign exchange. I personally spent half of my time trying to get FX from the Central Bank of Nigeria. The CBN was the only source of official exchange, offering FX at around 500 Naira when the parallel market was 800 or 900. No business could survive outside the CBN structure. Every two weeks, we would go to Abuja to seek allocations. It was exhausting and inefficient. You had to camp there for three or four days before Allocation Monday, waiting for the CBN to allocate dollars. Today, I have met the new CBN Governor, Mr Cardoso, only once in two years. The reason is simple: I do not need to go to Abuja now to get foreign exchange. The system is open. It is working. This was also a bold move by President Tinubu. It was necessary, and he took that decision as well. We are very glad because today we can focus on our businesses. These reforms are saving the economy. Fairness, sanity and stability in business: Under this administration, we have seen a return to fairness and stability in business. We no longer worry about arbitrary shutdowns or politically motivated disruptions. Let me give a real example. We started a new business in Port Harcourt four or five years ago under BUA Foods, operating at the Rivers Ports under a concession with the Nigerian Ports Authority. It was going very well. One day, we woke up to a letter stating that the concession had been revoked, the terminal shut down, and the lease agreement terminated. There was no prior warning, no issue, no conflict. Later, we discovered that the Managing Director of NPA at the time decided to close the business simply because our operations were competing with those of her friend. She wanted to impress her friend. That was the only reason. Today, that kind of thing cannot happen. Nobody would dare take such an action under President Tinubu. You can wake up now without fear that your business has been shut down by an agency or politician. That stability is critical. That Port Harcourt plant alone has seen over 500 million dollars in investment and has employed over 4,000 people. The confidence this government has brought is real, and it is helping us plan better. I must also personally acknowledge former President Muhammadu Buhari. When our Port Harcourt plant was unfairly shut down, it was his intervention that saved it. I had the privilege of explaining the situation to him. He agreed it was wrong and acted. He said he would not permit injustice under his watch. That decision saved the business. But the reality is, I had access. What if I did not? That is the difference today. Now, nobody needs access to the President to be treated fairly. Everyone knows that if you do something wrong under President Tinubu, you may lose your job or even face prosecution and go to jail. That is why I can now spend more time focusing on the business and relaxing. The President Tinubu reforms are creating a level playing field. Like I said previously, every business had to lobby the CBN for FX. If you did not, your business would collapse. Now, you do not need to go to Abuja. You just focus on your operations. Infrastructure as a key driver of development In infrastructure, the difference is also clear. Look at the Lagos-Calabar highway. Look at the Sokoto-Badagry road. Look at the Kwara projects we are executing under the tax credit scheme. Look at Kano-Kongolam. Look at the Okpella to Kogi State corridor. These projects are progressing because of the savings from subsidy removal and FX unification. With more revenue, Nigeria is building. These roads and others being built are critical because logistics have become a major goods from Lagos to the North is very expensive due to bad roads. Now, the President is addressing this. With better infrastructure, logistics will improve, and businesses will grow. These reforms have enabled long-term planning and serious investment. BUA will continue to bet on Nigeria Since President Tinubu took office, BUA Group has invested over one billion dollars in the Nigerian economy. We are expanding our food business, doubling our flour and pasta facilities in Port Harcourt and building another in Lagos. Demand is increasing. People are earning more. Confidence is returning. We have also completed the first POP plaster manufacturing plant in Nigeria which is now operating and are soon starting construction of a 30MW solar energy project in Sokoto State. In the oil and gas sector, we are completing our LNG project in Ajaokuta, Kogi State. These investments are possible because of stability that has been brought about by President Tinubu's reforms. We can plan now. The exchange rate has been fairly stable for almost a year. FX is accessible. Money is coming in from different sources, and investors are responding. If you want 200 million dollars a week for trade, you can get it without lobbying anyone at the Central Bank. These are the results of good policies. On food security When I met President Tinubu recently, he raised concerns about food prices. He wanted to know what BUA Foods was doing. I explained that his six-month tariff waiver had worked. It disrupted hoarding in the rice market. In Nigeria, the rice harvest is short and runs for about three months. Middlemen were buying paddy rice, hoarding it, and raising prices post-harvest. This artificial scarcity drove prices to as high as 110,000 Naira per bag. The farmers did not benefit. Farmers just wanted to sell and move on yet some people were buying from them, hoarding it, and creating a food crises in the country. The temporary waiver allowed rice to be brought in, and milled immediately. The hoarders were cut out. Prices began to drop. It was a short-term solution, but it worked. It showed foresight. I told the President it helped and that if the situation persists, further steps can be taken. But for now, it has made a difference. President Tinubu's nigeria first policy and backward integration President Tinubu's Nigeria First policy has aligned well with our own belief in backward integration. Our cement business is almost entirely local. We mine our own limestone. We use Nigerian gas even though it is dollar-denominated. The only foreign element is the equipment, and even that benefits from government concessions for mining equipment which everyone else in the industry benefits. If we had to import cement today, prices would be over 15,000 Naira per bag. Nigeria does not have the port infrastructure to even handle the import volume. Producing locally has saved the economy and stabilised the sector. We are doing more, and we will continue to do more. Nigeria has everything—population, arable land, resources, water, and now, strong leadership under President Tinubu. We believe in Nigeria because the fundamentals are now strong. My advice to all is to take a Bet on Nigeria. This is the place to be. So for me, what has this administration done right? First, it removed the fuel subsidy which was the biggest economic scam in our history. Second, it unified the foreign exchange market and third, it restored stability, fairness, and confidence in the economy. These are the foundations of growth. Nigeria is full of potential. With the right leadership, which we now have, there is no limit to what we can achieve. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Eyewitness News
6 days ago
- Business
- Eyewitness News
At 50, West African bloc teeters amid shifting alliances, security woes
LAGOS - Leaders of ECOWAS are gathering on Wednesday to celebrate 50 years since its formation and are expected to address regional security challenges as the continent also seeks answers in the face of US trade tariffs and aid cuts. The anniversary could not have come at the worst of moments for the Economic Community of West African States - once internationally respected as a force for stability. ECOWAS is now fractured following the departure of junta-led countries Mali, Burkina Faso and Niger earlier this year. It is also grappling with its security challenges with jihadists exploiting strained relationships between members and gaining ground in the Sahel and Lake Chad region. Benin and Nigeria have experienced a wave of attacks in recent months. And the Sahel region was in 2024 ranked the epicentre of global "terrorism" for the second straight year, accounting for more than half of deaths put down to terror attacks worldwide, according to the Global Terrorism Index published in March. Coups and attempted putsches - driven by widespread public discontent and distrust in political elites - have rocked nearly half of original ECOWAS countries in the last decade, putting democracy on the ropes and straining relations among neighbours. The departure of the three countries from ECOWAS dealt a blow to the bloc's credibility and regional influence, experts say. The exit "is a major dent on this organisation's capacity to harness the optimism and hopes of its birth", said Kwesi Aning, an expert in international cooperation at the Accra-based Kofi Annan International Peacekeeping Training Centre. "It reflects a disastrous level of leadership amongst ECOWAS leaders," he added. TURMOIL AND TRADE Nigeria's President Bola Ahmed Tinubu, the current head of the rotating ECOWAS presidency, and the 89-year-old ECOWAS co-founder and former Nigerian military leader, General Yakubu Gowon, are due to address the gathering at a hotel in Lagos. As the region's largest economy and most populous nation, Nigeria was expected to be ECOWAS's "stabilising force", but it is "faltering", said SBM Intelligence in a report released Wednesday. "Its internal crises — including economic mismanagement, political instability, the Boko Haram insurgency, and governance failures — have significantly diminished its ability to lead", said the report. Overall, ECOWAS "finds itself at a critical juncture between its foundational aspirations of economic integration and peace and the stark realities of regional insecurity, democratic backsliding, and internal fragmentation," said SBM Intelligence. The impact of the turmoil on trade among countries is stark. Before relations between neighbours Nigeria and Niger soured following a coup in Niamey in July 2023, Nigerian traders shipped out several truckloads of edible grains from the bustling Dawanau market in the northwestern state of Kano daily. While the volume of grains supplied from the Kano market into Niger has not changed much, it is the cost of doing so that is now biting. Multiple traders and truckers told AFP in Kano that taxes paid on Nigerian goods imported into Niger have increased fivefold, fuelling a spike in smuggling activities across porous borders. "We were paying an equivalent of 100,000 naira (about $64) as import duty on each truck before they left ECOWAS, but we now pay around 500,000 naira," said 40-year-old trucker Aliyu Abubakar. "Smuggling is thriving," said Mustapha Buhari, 47, a resident of Nigeria's Mai-Adua, a border town.
Business Insider
6 days ago
- Business
- Business Insider
ECOWAS leaders meet to commemorate 50 years amid regional security challenges
ECOWAS leaders will meet on Wednesday to mark the 50th anniversary of the organization's founding, where they are likely to address ongoing security concerns in the region, as well as address the implications of trade tariffs and U.S. aid cuts. The milestone comes at a particularly challenging time for the Economic Community of West African States (ECOWAS), which was once seen as a stabilizing force on the global stage. ECOWAS leaders convene to commemorate the organization's 50th anniversary amidst security and economic challenges. Fragmentation has impacted the organization's unity following exits by junta-led nations Mali, Burkina Faso, and Niger. The Sahel region faces heightened insecurity with a rise in violence and jihadist activities, being labeled a global terrorism epicenter. ECOWAS is currently undergoing significant fragmentation following the departure of junta-led countries such as Mali, Burkina Faso and Niger earlier this year. The organization also faces growing security threats as jihadist groups capitalize on strained relations between member states and expand their influence in the Sahel and Lake Chad regions. Countries such as Benin and Nigeria have seen a surge in violence in recent months. In 2024, the Sahel was ranked as the global epicenter of terrorism for the second year in a row, accounting for more than half of all terrorism-related deaths worldwide, according to a Global Terrorism Index report released in March. The region has been rocked by coups and attempted coups, fueled by widespread public discontent and a lack of trust in political leaders. In recent time, nearly half of the original ECOWAS countries have experienced such turmoil in the past decade. This has put democracy at risk and damaged ties between neighboring nations. The departure of these three nations has significantly undermined ECOWAS' credibility and influence in the region, experts say. ECOWAS faces issues like security threats and trade implications Kwesi Aning, an expert in international cooperation at the Kofi Annan International Peacekeeping Training Center in Accra described the exit as a significant setback to the organization's potential to realize its founding aspirations. He added that it signals a worrying level of governance among ECOWAS leaders. Nigerian President Bola Ahmed Tinubu, who currently holds the rotating presidency of ECOWAS, along with General Yakubu Gowon, 89, a co-founder of ECOWAS and former Nigerian military leader, will address the event in Lagos. As the largest economy and most populous country in the region, Nigeria was expected to serve as a stabilizing force for ECOWAS; however, the country faces significant challenges, according to a recently released SBM Intelligence report. The report reveals that Nigeria's internal problems (economic oppression, political instability, Boko Haram insurgency, and governance failures), have severely compromised its leadership capacity.
Time of India
6 days ago
- Politics
- Time of India
At 50, West African bloc teeters amid shifting alliances, security woes
AP Image On May 28, 2025 Leaders of ECOWAS are gathering on Wednesday to celebrate 50 years since its formation and are expected to address regional security challenges as the continent also seeks answers in the face of US trade tariffs and aid cuts. The anniversary could not have come at the worst of moments for the Economic Community of West African States -- once internationally respected as a force for stability. ECOWAS is now fractured following the departure of junta-led countries Mali, Burkina Faso and Niger earlier this year. It is also grappling with its security challenges with jihadists exploiting strained relationships between members and gaining ground in the Sahel and Lake Chad region. Benin and Nigeria have experienced a wave of attacks in recent months. And the Sahel region was in 2024 ranked the epicentre of global "terrorism" for the second straight year, accounting for more than half of deaths put down to terror attacks worldwide, according to the Global Terrorism Index published in March. Coups and attempted putsches - driven by widespread public discontent and distrust in political elites - have rocked nearly half of original ECOWAS countries in the last decade, putting democracy on the ropes and straining relations among neighbours. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Advanced Strategic Management IIMK ASMP Apply Now Undo The departure of the three countries from ECOWAS dealt a blow to the bloc's credibility and regional influence, experts say. The exit "is a major dent on this organisation's capacity to harness the optimism and hopes of its birth", said Kwesi Aning, an expert in international cooperation at the Accra-based Kofi Annan International Peacekeeping Training Centre. "It reflects a disastrous level of leadership amongst ECOWAS leaders," he added. - Turmoil and trade - Nigeria's President Bola Ahmed Tinubu, the current head of the rotating ECOWAS presidency, and the 89-year-old ECOWAS co-founder and former Nigerian military leader, General Yakubu Gowon, are due to address the gathering at a hotel in Lagos. As the region's largest economy and most populous nation, Nigeria was expected to be ECOWAS's "stabilising force", but it is "faltering", said SBM Intelligence in a report released Wednesday. "Its internal crises - including economic mismanagement, political instability, the Boko Haram insurgency, and governance failures - have significantly diminished its ability to lead", said the report. Overall, ECOWAS "finds itself at a critical juncture between its foundational aspirations of economic integration and peace and the stark realities of regional insecurity, democratic backsliding, and internal fragmentation," said SBM Intelligence. The impact of the turmoil on trade among countries is stark. Before relations between neighbours Nigeria and Niger soured following a coup in Niamey in July 2023, Nigerian traders shipped out several truckloads of edible grains from the bustling Dawanau market in the northwestern state of Kano daily. While the volume of grains supplied from the Kano market into Niger has not changed much, it is the cost of doing so that is now biting. Multiple traders and truckers told AFP in Kano that taxes paid on Nigerian goods imported into Niger have increased fivefold, fuelling a spike in smuggling activities across porous borders. "We were paying an equivalent of 100,000 naira (about $64) as import duty on each truck before they left ECOWAS, but we now pay around 500,000 naira," said 40-year-old trucker Aliyu Abubakar. "Smuggling is thriving," said Mustapha Buhari, 47, a resident of Nigeria's Mai-Adua, a border town.
