Latest news with #NNPC
Yahoo
26-05-2025
- Politics
- Yahoo
Could Nigeria's careful ethnic balancing act be under threat?
In Nigerian politics, there has long been an informal understanding: presidential appointments should carefully balance the country's many ethnic and religious differences. Today, there are growing concerns that this is being ignored. While the constitution requires regional representation in cabinet positions, the broader distribution of other prominent roles has traditionally followed a convention aimed at fostering national cohesion. Nigeria's fractious divisions have in the past torn the country – Africa's most populous – apart. Concerns about fairness in presidential appointments are not new, but a chorus of criticism is growing over President Bola Tinubu's picks, with some accusing the head of state – who has been in power for two years – of favouring people from his own Yoruba ethnic group. The presidency vehemently denies the accusation. There have long been fears that members of one ethnic group would come to dominate key positions – and this means that presidential appointments are closely scrutinised whenever they are announced. There are over 250 ethnic groups in the country with Hausa-Fulanis, Igbo and Yoruba – hailing from the north, south-east and south-west respectively - being the three largest. Critics say that Tinubu, a southern Muslim, showed signs of ignoring precedent from the onset when he picked another Muslim (although from the north) to be his running mate for the last election. Since the return of democracy in 1999, the major parties had always put forward a mixed Muslim-Christian ticket, as the country is roughly evenly divided between followers of the two religions. Tinubu's appointments since becoming president in May 2023 are facing growing cricisim. Although there are dozens of roles for a head of state to fill, there are eight jobs that "are the most crucial for every administration", according to political analyst and barrister Lawal Lawal. These are the heads of the: central bank state-owned oil company, NNPC police army customs service intelligence agency anti-corruption agency and revenue service. There is no constitutional ranking of positions, but collectively these roles control the key financial and security apparatus of the country. Every president inherits his predecessor's appointees, but has the prerogative to replace them. As of April, all eight positions under Tinubu are now filled by Yorubas. The recent appointment of former Shell boss Bayo Ojulari to head the state-owned oil company, the Nigerian National Petroleum Company (NNPC), in place of a northerner turbocharged the debate about the apparent monopoly of one group in top positions. Looking at who filled the same posts under Tinubu's two immediate predecessors, there was no such dominance of one ethnic group at the same stage of their presidencies. Goodluck Jonathan – who served from 2010 to 2015 – had a relatively balanced team of two ethnic Fulanis, two Hausas, one Atyap, one Igbo, one Yoruba and one Calabar. When it came to Muhammadu Buhari – in power from 2015 to 2023 – the situation was less clear. In the top eight he had three Hausas, two Kanuris, one Igbo, one Yoruba and one Nupe. But in the minds of many Nigerians, Hausas, Kanuris and Nupes are all seen as northerners – and therefore there was a perception that Buhari, who is from the north, showed favouritism. Some argue that Tinubu's appointments have merely continued the trend, but the 100%-Yoruba make-up of the eight key positions is unprecedented. "For a democratically elected president, I cannot remember at any point in Nigerian history where you have this high concentration of a particular ethnic group holding most of the sensitive positions," history professor Tijjani Naniya told the BBC. This is not just about what has happened in the past but it could have an impact on the unity and even the future of the country, the professor said. "For me, the fear is what if the next president continues on this path and picks most of the sensitive positions from his ethnic group, it diminishes the feeling of belonging among the rest and also reduces belief in democracy," he said. In the last two years, many northerners, mostly Hausa-Fluanis, have looked at the apparent direction of travel with alarm. The current men (there are no women) in charge of the NNPC, the police, customs and the Economic and Financial Crimes Commission (EFCC) all replaced northerners. The removal of Abdulrasheed Bawa, a Hausa, as boss of the EFCC in 2023 just two years after he was appointed was especially controversial. He was arrested, accused of abuse of office and detained for over 100 days before the charges were dropped. He was replaced by Ola Olukoyode, an ethnic Yoruba. Some from the north felt Mr Bawa was unfairly treated and pushed aside to make way for Mr Olukoyode. "The president needs to know that the Yoruba people are just a part of the country, and all appointments should be spread across all ethnic groups and regions," social affairs analyst Isah Habibu told the BBC. Without addressing specific cases, a Tinubu spokesperson has said the president is being fair and balanced, by taking the wider view of all appointments. Media aide Sunday Dare did try to go into detail, saying overall, 71 northerners and 63 southerners had been appointed by Tinubu. But his 9 April post on X was later deleted, after people pointed out errors in his claim. He promised an updated list, but more than six month slater, it has yet to appear. Tinubu faces critics even from within his own party. Senator Ali Ndume is from the north and – like Tinubu – belongs to the All Progressives Congress. In one television interview he said he had gone on air to talk about the president's appointment "wrongdoings". Ndume said he was shocked, describing them as "non-inclusive and not reflecting the president's 'Renewed Hope' agenda, which promised to carry every section of the country along". Another presidential aide, Daniel Bwala, disputed the idea that some positions were more significant than others. "All I know is that the constitutional provisions [regarding appointments] have been taken care of by the president - there's nowhere in the constitution [where it is] mentioned top five, top 10 and the rest," he told the BBC. "The way we see it is that any position or appointment that one is privileged to serve in is very critical and important. "The national security adviser is from the north-east, the chief of defence staff is from the north-west and the secretary to the federal government is from north-central." The Office of the Secretary to the Government of the Federation, which coordinates policy on behalf of the presidency, released a statement on 12 April saying Tinubu was being fair. "This administration is dedicated to ensuring that all regions and demographics of the country are adequately represented in its institutions and agencies," it said. Political analyst Mr Lawal said the president should appoint the best person for the job, irrespective of their ethnic origin – and agues that this is what Tinubu is doing. "It's high time Nigeria looks beyond ethnicity," he said. There could be a time when Nigerians no longer obsess over the ethnic origins of those in the upper echelons of government, but historian Prof Naniya says this is still some way off. He believes it can only happen when the country gets at least four presidents in succession who give every section a sense of belonging in terms of projects and appointments. "I think it can be done but needs the right leaders." Nigeria's spectacular horse parade closing Ramadan 'I scarred my six children by using skin-lightening creams' 'How I survived Nigeria attack that killed my 16 friends' Are Nigerians abroad widening the class divide back home? Go to for more news from the African continent. Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica Africa Daily Focus on Africa
Business Insider
21-05-2025
- Business
- Business Insider
Nigeria's fuel traders struggling to secure gasoline despite billions spent on refinery upgrades
Nigerian fuel traders say they are having trouble getting gasoline from the state-owned Port Harcourt and Warri refineries, although these plants were declared ready six months ago. Nigeria's state-owned Port Harcourt and Warri refineries, despite declared ready six months ago, are not yet supplying gasoline. This has led to continued dependence on fuel imports and the Dangote Refinery, which is still scaling production. Over ₦11.35 trillion has been spent over the last decade attempting to fix the nation's old refineries. Nigerian fuel traders say they are having trouble getting gasoline from the state-owned Port Harcourt and Warri refineries, although these plants were declared ready six months ago. As a result, they remain dependent on imports and the privately owned $20 billion Dangote Refinery to meet supply needs, according to a report from Reuters. Nigeria has struggled with fuel shortages for a long time. Over the past 10 years, the country has spent more than ₦11.35 trillion ($25 billion) trying to fix its three old, non-working refineries. Since 2021, Nigeria has spent about $2.4 billion to renovate two refineries in the Niger Delta to reduce the need for imported fuel. However, delays in getting these refineries fully working are still causing problems for the local fuel supply. Although Nigeria declared the first phase of refurbishment at the Port Harcourt refinery complete in December 2024, fuel traders say they are still unable to access gasoline from the plant or the Warri refinery, both operated by the state-owned NNPC. Soaring import According to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), which represents over 6,700 fuel stations, its members remain reliant on fuel imports and on supplies from the 650,000 barrels per day Dangote Refinery, Africa's largest, which itself has yet to reach full production capacity. Official data shows that by March 2025, there was no gasoline output from the Port Harcourt refinery, which used to be Nigeria's largest. In contrast, the Dangote Refinery produced 20.6 million litres of petrol that month, while imports contributed 25.19 million litres, meeting 92% of Nigeria's daily gasoline demand of 50 million litres. Nigeria's overreliance on imports remains a major concern. In 2024, the country spent ₦15.4 trillion ($9.63 billion) on petrol imports, more than double the ₦7.51 trillion spent in 2023, according to the National Bureau of Statistics (NBS). Authorities hope that getting local refineries running will significantly reduce this cost.
Business Insider
21-05-2025
- Business
- Business Insider
Naira-for-crude deal helping Nigerians pay less for petrol
The Dangote Petroleum Refinery has announced that its naira-for-crude oil agreement with the Nigerian government has enabled it to lower petrol prices, ultimately reducing costs at fuel stations for Nigerian consumers. Dangote Petroleum Refinery implemented a naira-for-crude oil agreement to reduce petrol prices in Nigeria. The initiative supports price stability and contributes to national economic development. Collaboration with the Nigerian government aligns with the 'Nigeria First Policy' to prioritize local goods and services. The Dangote Petroleum Refinery has announced that its naira-for-crude oil agreement with the Nigerian government has enabled it to lower petrol prices, ultimately reducing costs at fuel stations for Nigerian consumers. In a statement, the company's Group Chief Branding and Communications Officer, Anthony Chiejina, said that even though global crude oil prices keep changing, Dangote has continued to reduce petrol prices and promised to keep them stable and affordable. The company reaffirmed that price stability is part of its broader mission to contribute positively to national economic development. The statement read: 'We are immensely grateful to President Bola Tinubu for making this possible through the commendable naira-for-crude initiative, which has enabled us to consistently reduce the price of petroleum products for the benefit of all Nigerians, ' the statement stated. 'Our approach aligns with the objectives of the Federal Government's 'Nigeria First Policy', which promotes the prioritisation of locally-produced goods and services. Naira to crude controversy In March, reports emerged that the Nigerian National Petroleum Company (NNPC) had halted its naira-for-oil program, which had allowed local refineries to buy crude oil using the Nigerian currency. The news sparked concerns that the move could lead to a rise in fuel prices and increased pressure on the foreign exchange market. However, NNPC clarified that the agreement was a six-month pilot deal, dependent on crude availability, and scheduled to expire at the end of March 2025. Since the start of operations in 2023, NNPC has supplied the Dangote Refinery with over 84 million barrels of crude oil. The state oil company also confirmed it has begun talks with Dangote Refinery to extend the naira-denominated crude oil supply contract, reinforcing ongoing collaboration to ensure energy stability. By refining oil within Nigeria at its large refinery, Dangote said it is helping the country save foreign exchange, improve energy security, and boost the economy, supporting President Tinubu's economic recovery plan.
Reuters
20-05-2025
- Business
- Reuters
Nigeria's fuel traders struggling to secure gasoline from refurbished state refineries, they say
LAGOS, May 20 (Reuters) - Nigerian fuel traders are struggling to secure gasoline supplies from two newly refurbished state-run refineries six months after they were declared operational, they say, leaving them reliant on the privately owned Dangote oil refinery and imports. Nigeria, which has suffered years of fuel shortages, has spent about $2.4 billion since 2021 to revive the long-mothballed state-owned Port Harcourt and Warri refineries in the Niger Delta to end reliance on imported refined products. The initial phase of the refurbishment was declared complete in December 2024. However, fuel trading group the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said its more than 6,700 members were still dependent on imports and the Dangote Refinery, Africa's biggest, which is yet to reach full production capacity. According to data from the regulator, by March, the last month for which full data is available, there was no gasoline output at Port Harcourt, previously Nigeria's largest refinery. In the same month the Dangote refinery produced 20.6 million litres of gasoline, with imports adding another 25.19 million litres to supply - equivalent to 92% of Nigeria's 50 million litre-per-day gasoline market. The Port Harcourt plant continues to refine diesel. NNPC, which operates the Port Harcourt and Warri refineries, did not respond to a request for comment on the reason for the lack of gasoline supply. PETROAN said there should be transparency on the state of the refineries, adding in a statement that Nigerians "want to know the exact date of delivery of the revamp project". Heads of Nigeria's four state-owned refineries were fired by the newly appointed NNPC CEO on April 30, about a month after his appointment. Nigeria spent 15.4 trillion naira ($9.63 billion) on gasoline imports last year, more than doubling 7.51 trillion naira spent in 2023 according to data from the National Bureau of Statistics, a bill that authorities want to drastically reduce by processing the product locally. ($1 = 1,599.3400 naira)
Zawya
13-05-2025
- Business
- Zawya
Minister Ekpo to Drive Nigeria's Gas Investment Agenda at African Energy Week (AEW) 2025
Nigeria's Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, is confirmed to speak at the 2025 edition of African Energy Week (AEW): Invest in African Energies in Cape Town. As Nigeria scales up its natural gas infrastructure and strengthens its position as a leading destination for energy investment, Minister Ekpo's participation will highlight the country's expanding gas market, growing project pipeline and drive to attract a greater share of global energy capital. Nigeria's gas sector is set to attract significant foreign investment, with the U.S., UAE and key financial institutions expressing strong interest in the $25 billion Nigeria-Morocco Gas Pipeline. This month, the UAE agreed to contribute funding to the project, while the U.S. expressed interest in the pipeline during a meeting with Nigeria's Ministry of Finance in April. The initiative, which aims to transport Nigerian gas to Europe through Morocco, is expected to boost regional energy security and economic growth. Nigeria's momentum extends further with the $550 million Final Investment Decision made by TotalEnergies and the Nigerian National Petroleum Corporation (NNPC) in June 2024 for the Ubeta Gas Project. Targeting 350 million cubic feet of gas and 10,000 barrels of associated liquids per day by 2027, the project incorporates clean energy solutions such as a 5 MW solar plant and electrified drilling rig. Additionally, NNPC has signed a project development agreement with Golar LNG to deploy a floating LNG facility offshore the Niger Delta. The plant will monetize 400–500 million cubic feet of gas per day and produce LNG, LPG and condensates, with first gas expected in 2027. These advancements are underpinned by Nigeria's broader institutional and financial reforms. Notably, Abuja has been selected to host the newly established Africa Energy Bank (AEB) – a supranational institution formed by the African Petroleum Producers' Organization and the African Export-Import Bank. With an initial capital base of $5 billion, the AEB is slated to launch in 2025 and will fund oil, gas, renewables, hydrogen and infrastructure projects across Africa. Nigeria's successful bid to host the bank further cements its leadership in the continental energy space. With proven reserves of more than 200 trillion cubic feet of natural gas and 37 billion barrels of crude oil, Nigeria is pursuing an ambitious strategy to expand energy access, reduce emissions and foster industrial growth. Additional milestones include the commissioning of the Tetracore CNG facility in June 2024 and ongoing progress on the Nigeria LNG Train 7 expansion project, which is set to boost the country's LNG capacity by 35% while adding roughly 8 million tons per annum to the country's production capabilities. Backed by strong policy support and rising investor interest, Nigeria is well-positioned to capitalize on AEW 2025 as a launchpad for its next phase of energy-driven development. 'The participation of Minister Ekperikpe Ekpo at AEW: Invest in African Energies 2025 reinforces Nigeria's role as a driving force in Africa's gas revolution. As the country rolls out critical infrastructure and attracts multi-billion-dollar investments, AEW will serve as the ideal platform to showcase Nigeria's investor-friendly reforms and its roadmap for gas monetization,' states NJ Ayuk, Executive Chairman of the African Energy Chamber. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. Distributed by APO Group on behalf of African Energy Chamber.
