Economy
Africa Oil Week to Focus on Nigeria
Estimated to hold 37 billion barrels of proven oil reserves, Nigeria is the second biggest oil-rich country in Africa, after Libya. The exploitation of these resources has been in the hands of the Nigerian National Petroleum Corporation (NNPC) that was established in 1977 as a merger of the Nigerian National Oil Corporation and the Federal Ministry of Mines and Steel. NNPC by law manages the joint venture between the Nigerian Government and international oil companies such as Shell, Agip, ExxonMobil, Total and Chevron.
Despite its rich resources, at present Nigeria’s state-dominated oil industry is declining, afflicted by systemic corruption, starved for international investment, and hit hard by weak oil prices. Despite that malaise, oil remains the country’s chief source of income.
A choice of paths
What many considered a watershed moment for the industry occurred earlier this year in the country’s election with two conflicting strategies for the development of the industry put forward by the two candidates.
The incumbent, Muhammadu Buhari’s planned to retain a nationalized oil industry under the NNPC banner while the vision of his opponent, Atiku Abubakar, was to sell off aging refineries to private buyers to liberalise the economy. In the end Buhari won a tight contest.
The importance of the oil and gas sector for the state cannot be underestimated with more than half of its revenue along with 85 per cent of its export revenue coming from the sector. Despite the 40 billion barrels of oil under its control, Nigeria’s ageing infrastructure can only produce around 2.5 million barrels of crude oil per day.
Adding to this malady is the state of its mid-stream and downstream infrastructure that many believe is in even worse condition than its upstream assets. The refineries dotted around the Niger Delta region are at present producing less than half of the 500,000 barrel per day capacity, with this figure dropping to almost ten per cent late last year.
New beginnings for NNPC
The man charged with implementing the president’s policy is Mallam Mele Kolo Kyari, who took on the role of group managing director of the Nigerian National Petroleum Corporation (NNPC) early this year. He quickly vowed to reverse the trend of petroleum imports into Nigeria by improving the existing refineries and encouraging private sector investment in the refineries.
“We must end the trend of fuel importation as an oil producing country,” he said at a press conference shortly after taking on the role. “We will deliver on the rehabilitation of the four refineries within the life of this administration and support the private sector to build refineries. We will support the Dangote refinery to come on stream on schedule and we will transform Nigeria into a net exporter of petroleum products by 2023”.
He added that the government’s target of raising crude oil production and reserves to three million barrels per day and 40 billion barrels respectively was possible and that he would galvanise the corporation to achieve it by 2023.
When it comes to rooting out the corruption that has plagued the industry in Nigeria he pointed out how much NNPC had changed over the past three years from the old image of a corruption-laden organisation, stressing that he would continue to entrench the culture of accountability in the affairs of the corporation.
“We are going to work to remove every element of discretion from our processes, because discretion is one of the greatest enablers of corruption”, he said. “NNPC will not be opaque, we’ll be transparent to all so that at the end of the day everyone will be in a position to assess us and say what we have done right or wrong”.
Support from OPEC
The Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), Mohammed Sanusi Barkindo, has commended the NNPC for its ongoing reforms aimed at changing the fortunes of the corporation for the better.
“I am glad that you continue to march on with your projects despite the downturn in the Industry, he said. “We have seen the Industry globally suffer in terms of contraction in investment which affected capacity. You have not only been able to stay on course, but you also continue with these projects which are critical for the development of the corporation and the industry in Nigeria.”
“To lead such a sensitive and capital-intensive industry like oil and gas, you must have transparency and accountability as one of your core principles in order to drive change. I am glad I have known Mele Kyari for a very long time. He is a very capable and straightforward individual with a high level of integrity even as a very junior officer. So, he has a track record. I remain confident that together with his team, and with the support of government, he will accomplish the task”.
Building a Nigerian giant
Key to this strategy of reducing imports is the Dangote refinery that is under construction near Lagos. The 650,000 barrels per day (bpd) integrated refinery and petrochemical project will be Africa’s biggest oil refinery and the world’s biggest single-train facility upon completion in 2020. The facility will be able to process a variety of light and medium grades of crude to produce Euro-V quality clean fuels including gasoline and diesel as well as jet fuel and polypropylene.
Nigeria in focus at Africa Oil Week
Relations between South Africa and Nigeria have been strained in recent months after several days of riots in South Africa in September that mainly targeted foreign-owned, including Nigerian, businesses.
But following a visit to South Africa by Nigeria’s President Muhammadu Buhari tensions have eased. A further sign of the improving relationship is the visit of Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva, to Africa Oil Week, the minister proclaiming himself being excited to be travelling to South Africa.
As the largest upstream event on the continent, Africa Oil Week has enjoyed attendance from the industry’s highest-level decision makers for over 25 years. This year is no different, with Nigeria’s brand new NPCC GMD making his international debut at the 2019 conference in Cape Town this November (4-8).
Mallam Melee Kyari will be setting out the future vision of the NNPC under his leadership and participating in a session titled ‘Atlantic Transform Margin (Liberia to Nigeria)’, where he will provide a deep insight into the current operating landscape in some of the most highly sought-after regions.
By Aduragbemi Omiyale
African leaders have been advised to focus on economic integration through industrialisation, as this would make the continent a formidable force in the global market.
This charge was given by the Minister of State in the Tanzanian President’s Office responsible for Planning and Investment, Prof. Kitila A. Mkumbo, during a visit to the Dangote Petroleum Refinery and Petrochemicals in Lagos.
“Africa now needs economic liberation, and that can only come through industrialisation,” he said, describing Mr Aliko Dangote as Africa’s leading industrialist whose investments are increasingly extending beyond Nigeria to support development across the continent.
He added that Tanzania looks forward to working with Dangote Group as part of a broader vision of accelerating Pan-African industrialisation and strengthening regional manufacturing capacity.
The Minister also highlighted the importance of local refining capacity in improving Africa’s energy security, particularly in light of recent disruptions in global oil markets.
Referring to the impact of tensions around the Strait of Hormuz on global fuel prices, he said increased refining capacity from facilities such as the Dangote Petroleum Refinery would help cushion African economies against external shocks.
According to him, affordable and reliable energy remains one of the most important drivers of economic development, noting that expanded refining capacity across the continent would contribute significantly to lowering energy costs and improving the quality of life for millions of Africans.
The Tanzanian delegation was in Nigeria to follow up on discussions held earlier this year between President Samia Suluhu Hassan and Mr Dangote regarding the expansion of Dangote Group’s investment footprint in Tanzania.
The East African nation reaffirmed its commitment to deepening economic cooperation with Dangote Group, expressing strong interest in attracting new investments in fertiliser production, energy and industrial infrastructure to support the country’s long-term development agenda.
“We have come here to make a follow-up on what they deliberated with our President in terms of further Dangote investments in Tanzania,” Mr Mkumbo said.
By Aduragbemi Omiyale
One of the leading brewers and beverage companies listed on the Nigerian Exchange (NGX) Limited, Champion Breweries Plc, has expressed its commitment to strengthening its market position.
The beer maker gave this assurance while reacting to its financial performance for the first half of 2026, which was strong, driven by solid commercial performance, improved operational efficiencies, and the successful expansion of its business portfolio following the acquisition of EnjoyBev B.V.
In the period under review, the organisation boosted its growth platform through strategic investment, delivered resilient operating performance, and successfully transitioned to a new group structure.
Its revenue reached N35.73 billion, while second-quarter revenue amounted to N21.37 billion. Operating profit stood at N6.17 billion, and profit after tax attributable to the group was N2.65 billion, with second-quarter profit after tax of N1.76 billion.
The firm also successfully completed the acquisition of an 80 per cent equity interest in EnjoyBev B.V., strengthened its capital base through a successful capital raising programme that increased shareholders’ equity to N69.08 billion, and maintained full compliance with NGX free float requirements, with free float increasing to 25.72 per cent as of June 30, 2026.
“The first half of 2026 marks a defining chapter in Champion Breweries’ journey. We have not only delivered a strong operating performance but also successfully transformed our business into a broader beverage group with an expanded platform for sustainable growth.
“While higher finance costs associated with our strategic investment programme impacted profitability during the period, our underlying business remains strong.
“The combination of disciplined commercial execution, continued investment in our brands and route-to-market capabilities and improving operational efficiency positions us well for future growth.
“We remain focused on creating long-term value for shareholders, strengthening our market position, and capturing the opportunities presented by our expanded business platform,” the acting chief executive of Champion Breweries, Mr Rasheed Adebiyi, said.
For businesses operating across borders, payments are no longer simply the final step in a transaction. The way money moves can influence where a company sells, how quickly it can enter a new market, and how easily customers can complete a purchase. As digital payment methods become more diverse, businesses are adjusting not only their checkout options but also the way payment processes fit into wider operations.
This shift is particularly visible in international commerce. A company can now serve customers in multiple markets without relying on a single payment method or a traditional physical presence in each location. Digital payments have become part of the infrastructure that supports increasingly distributed business models.
A More Connected Payment Environment
Global commerce has created a more complicated payment environment. Customers in different countries may have very different expectations about how a purchase should be paid for. Some markets rely heavily on cards, while others have seen rapid adoption of digital wallets, bank-based payment methods, or other local alternatives.
For businesses, this variety creates both opportunities and practical challenges. Offering payment options that customers recognize can reduce friction during a transaction, while supporting several markets may require businesses to work with different payment technologies and providers.
Digital payments have therefore become closely connected to market expansion. A company entering a new country does not only need to consider demand for its products or services. It also needs to understand how customers in that market prefer to pay and whether its existing payment setup can accommodate those expectations.
More Choices for Businesses and Customers
The growth of digital payments has expanded the range of choices available on both sides of a transaction.
Consumers can increasingly choose between cards, digital wallets, bank transfers, mobile payment methods and other forms of electronic payment. Businesses, meanwhile, can select from different technologies and payment providers depending on their markets and operational requirements.
This development has changed the role of payments in the customer experience. Payment is no longer necessarily treated as an isolated technical process that begins only after a purchasing decision has been made. The available options can influence whether a customer completes a transaction in the first place.
For international businesses, flexibility can be particularly important. A payment method that is familiar and convenient in one market may be less relevant in another. Supporting a broader selection can allow businesses to adapt their payment experience without changing the underlying product or service.
The Rise of Alternative Payment Models
Traditional card and bank-based payments remain important, but the digital payments landscape has expanded beyond these established methods. Digital wallets, account-to-account payments, mobile solutions and cryptocurrency have all contributed to a broader definition of what a digital transaction can look like.
Cryptocurrency remains a smaller part of the overall payments landscape, but it has created another category of payment technology for businesses to consider. Specialized solutions such as BitHide can provide businesses with tools for handling crypto payments as part of their broader payment operations.
The significance of this development is not necessarily that every business will adopt cryptocurrency. Rather, it demonstrates how the payment landscape continues to diversify. Businesses operating internationally can increasingly choose from different models instead of relying on a single approach across every market.
Payments Are Becoming Part of Business Operations
As payment systems become more digital, their role increasingly extends beyond accepting money from customers. Payment processes can interact with accounting, order management, customer records and other parts of a company’s digital operations.
This is particularly relevant for businesses with large transaction volumes or customers in multiple countries. Manual payment processes can become difficult to manage as the number of transactions, currencies and payment methods increases. Digital systems can help businesses organize these processes within a wider operational framework.
The result is a gradual shift in how companies think about payments. Instead of treating payment processing as a separate function, businesses are increasingly considering it alongside other elements of their digital infrastructure.
This does not mean that every company needs a complex payment setup. The appropriate approach depends on the business model, target markets, transaction volumes and types of customers involved. For some companies, a small number of established payment methods may be sufficient. Others may need a more flexible arrangement because of the markets they serve.
Adapting to Different Markets
One of the more important changes brought by digital payments is the ability to adapt payment experiences to different markets.
International businesses often face differences in consumer behavior, financial infrastructure and preferred payment methods. A payment strategy that works well domestically may therefore require adjustments when a company expands internationally.
Digital payment technology can make these adjustments more practical, but it does not remove the need for local market knowledge. Businesses still need to understand customer preferences, applicable requirements and the practical costs associated with different payment methods.
This makes payment strategy part of international expansion rather than an issue that can be addressed only after a new market has been entered.
What Comes Next for Global Businesses
The digital payments market is likely to continue becoming more diverse as businesses and customers adopt new ways of moving money. The important change may not be the replacement of one payment method by another, but the growing ability to combine different methods according to the needs of a particular business or market.
For global companies, this creates an emphasis on adaptability. Payment systems need to support the way a business operates rather than becoming a limitation on where and how it can sell.
Digital payments are consequently becoming more than a convenient alternative to cash or traditional payment processes. They are increasingly connected to international commerce, customer experience and day-to-day business operations. As payment options continue to develop, companies that can adapt their payment strategies to different markets will be better positioned to operate in an increasingly digital global economy.
