Economy
Artisinal, Modular Refineries will Drive Local Inclusion—FG
By Adedapo Adesanya
The federal government has said that the integration of artisanal and modular refinery operators into the mainstream oil and gas sector will drive the inclusion of more local content in the industry while advancing the use of home-grown technology in the refining of petroleum products.
This was disclosed by Vice President, Mr Yemi Osinbajo, on Tuesday in a virtual address delivered at a national summit on the Integration of Artisanal and Modular Refinery Operations in Nigeria, convened by the Senior Special Assistant to the President on Niger Delta Affairs, Mr Ita Enang.
The Vice President explained that the integration of artisanal refiners will curb environmental issues in the Niger Delta, promote the availability of petroleum products, stabilize prices, eliminate shipping costs and provide employment opportunities for the people.
“We are confident that the integration of artisanal and modular refinery operations into the oil and gas sector will not only promote the inclusion of more local content in the industry; it will advance the use of home-grown technology in the refining of petroleum products and also curtail illegal oil activities in the Niger Delta region,” he said.
Mr Osinbajo had in 2016 toured oil-producing communities in the Niger Delta as part of the new administration’s bid to address lingering issues in the region.
“One of the nagging issues we were confronted with during my tour was how to deal with the proliferation of artisanal refinery and its attendant negative environmental impact. Our solution was to promote the establishment of modular refineries,” Prof. Osinbajo recollected.
Speaking on how to resolve the issue, the Vice President noted that artisanal refiners will be seen as investors and considered for strategic equity partnerships with technical and financial partners.
“This vision is hinged on the commitment of this present administration to develop the region and ensure that the people of the region benefit maximally from the wealth of their land. Indeed, the New Vision speaks to a progressive partnership between the federal government, state government, private sector, and the local communities,” he stated.
Explaining the federal government’s position on the adoption of a viable model, Mr Osinbajo said the transition from artisanal refineries to modular refineries has been delayed because of the operators’ expectation that the process will be fully underwritten by the government.
“However, what this framework envisages is a private sector-led partnership with equity participation from the state government or its agencies, registered local cooperative societies and the integration of regional refinery stakeholders, with the private investor having majority equity.”
While calling on stakeholders at the summit, to fashion a workable and viable blueprint that will guide and facilitate the integration of artisanal and modular refinery operators, the Vice President said the gains of a seamless integration were enormous.
“We are confident that the integration of artisanal and modular refinery operations into the oil and gas sector will curtail illegal oil activities in the Niger Delta regions.
“It will also promote the availability of petroleum products, stabilize prices, eliminate shipping costs and provide employment opportunities for the youths in the region and Nigeria in general.
“We recognize that with enough artisanal and modular refineries in the country, we should be able to conserve foreign exchange now utilized for the importation of petroleum products and promote socio-economic development.
“The resultant proliferation of employment opportunities will also have the effect of curbing youth restiveness which is largely driven by a dearth of socioeconomic opportunity. With most of the youth engaged in productive endeavours, the region will be able to turn a new page in its history.”
By Adedapo Adesanya
Oil prices settled about 1 per cent lower on Thursday even as the Iran war escalated, with the Middle East oil producer asking Yemen’s Houthi movement to be prepared to close the Red Sea oil export route.
Brent crude futures fell by 72 cents or about 0.9 per cent to trade at $84.23 a barrel, while the US West Texas Intermediate (WTI) futures depreciated by 65 cents or 0.8 per cent to close at $78.95 a barrel.
Iran has instructed Yemen’s Houthi movement to stand ready to close the Bab el-Mandeb strait, the vital gateway to the Red Sea, if the US follows through on threats to strike Iranian power infrastructure.
Market analysts warned that with the Strait of Hormuz already closed, the latest threat raises the serious risk of both of the Middle East’s primary oil export routes being disrupted at the same time.
About 7.4 million barrels of petroleum transited Bab el-Mandeb per day in June, about 7 per cent of global oil output, according to Kpler data, up from 4.2 million barrels per day last year.
This week, US President Donald Trump repeated oft-stated threats to strike Iranian power plants and bridges.
According to senior Iranian sources, the Islamic Republic’s leadership has discussed the idea with Iran’s Houthi allies, with the rebel forces now awaiting definitive orders to begin targeting maritime traffic.
In a sign of escalating tensions in the region, the Houthis fired missiles at Saudi Arabia after accusing the kingdom of bombing an airport under their control on Monday, breaking a four-year truce in the conflict between the kingdom and the group.
This comes as Saudi Arabia is currently evaluating a massive infrastructure expansion to permanently upgrade the capacity of its western pipeline and terminal networks.
Any additional disruptions could force international shipping firms to redirect vessels around Africa, inflating transit costs and worsening the global energy crisis.
On Wednesday, the US struck Iran’s coastal defences and missile sites after reimposing a naval blockade of its ports, while the two countries exchanged intensified fire on Thursday, which kept pressure on prices upward.
However, weighing on prices was Iran’s release of a US citizen, which could point toward a path to avert the resumption of all-out war.
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has launched a new digital platform to track every foreign exchange transaction involving Bureaux De Change (BDC) operators, marking a major step in its efforts to improve transparency and strengthen oversight of the country’s retail forex market.
In an operational guidance issued on July 15 to authorised dealer banks and licensed BDCs, the apex bank introduced the FX BDC Purchase Tracker (FXBT), a centralised electronic portal designed to monitor foreign exchange purchases by BDCs from the point of request through approval, settlement and eventual sale.
The CBN said the portal will require BDCs to upload real-time or same-day data on all FX purchases made through the Nigerian Foreign Exchange Market (NFEM), giving the regulator transaction-level visibility across the retail FX market.
According to the bank, the platform is designed to prevent abuse by making it easier to detect operators attempting to exceed the weekly purchase limit of $150,000, obtain allocations from multiple banks or divert foreign exchange outside approved channels.
The launch of the tracker builds on the CBN’s February policy that restored direct access for licensed BDCs to purchase foreign exchange from authorised dealer banks through the NFEM. While that policy improved access to official FX, the new platform provides the digital infrastructure to monitor how the funds are used.
Under the new framework, authorised dealer banks must conduct comprehensive Know-Your-Customer (KYC) and customer due diligence checks before selling foreign exchange to any BDC.
The new guideline also says banks must verify beneficial ownership information, retain incorporation documents and carry out enhanced due diligence for higher-risk operators. Any BDC that fails these checks will not be allowed to access official foreign exchange.
The guidance also requires banks to acknowledge BDC purchase requests submitted through the FXBT portal within two business hours and immediately notify operators whether their requests have been approved or rejected.
To discourage speculation, the CBN directed that any forex purchased through the NFEM but left unused must be sold back into the market within 24 hours after the expiration of the utilisation period. BDCs are also required to disclose any previously unused balances when submitting fresh requests.
In addition, all foreign exchange transactions between banks, BDCs and customers must be settled through registered accounts with licensed financial institutions. Third-party transactions are prohibited, and any transfer outside a BDC’s registered settlement account will be treated as a regulatory violation.
The apex bank also said all authorised dealer banks and licensed BDCs are expected to comply with the new regulatory guidance and operational procedures with immediate effect.
By Adedapo Adesanya
The chief executive of HBM Nigeria Plc (formerly Lafarge Africa), Mr Lolu Alade-Akinyemi, said the cement producer is expected to add 4.5 million tonnes to its production capacity by January 2027.
HBM Nigeria Plc is positioning itself for stronger long-term competitiveness, market leadership and job creation as it accelerates expansion projects.
The transition to HBM Nigeria marks a new phase of growth, driven by operational excellence, sustainability, innovation, and infrastructure development, while maintaining its long-standing commitment to Nigeria’s construction sector.
Mr Alade-Akinyemi, speaking recently in Lagos, said the ongoing expansion of the company’s Ashaka and Sagamu plants would significantly boost local production, create employment opportunities, and support businesses across its value chain.
“We recently announced the expansion of the Sagamu plant in Ogun State and the Ashaka plant in Gombe State. Hopefully, in January 2027, we will commission both plants, adding 4.5 million tonnes to our capacity. Traditionally, building a new plant takes about three years, but this is one of the benefits of belonging to the Huaxin Group,” he said.
According to him, the projects will generate employment, create opportunities for young people and women, strengthen local suppliers and contractors, and contribute further to Nigeria’s economic growth.
“There are many vacancies we are trying to fill in Sagamu and Ashaka. Beyond direct employment, we are creating opportunities for small businesses, developing suppliers and supporting local contractors. This is an exciting period because it will deliver significant benefits to Nigeria,” he said.
Mr Alade-Akinyemi noted that while the company’s corporate identity had changed following its acquisition by Huaxin Building Materials Group, its core values and commitment to customers, host communities, employees and shareholders remain unchanged.
He said HBM Nigeria traces its roots to 1959 as West African Portland Cement Company (WAPCO), with its first cement plant commencing operations in Ewekoro, Ogun State, in 1961.
Since then, he said, the company has grown into one of Nigeria’s leading building solutions providers with integrated plants in Ewekoro, Sagamu, Ashaka and Mfamosing.
He added that the company, which became publicly listed in 1979, has continued to expand through acquisitions and transformation while maintaining high product quality, innovation and responsible operations.
Highlighting the strengths of its parent company, Alade-Akinyemi described Huaxin Building Materials as a globally recognised building materials manufacturer founded in 1907 and headquartered in Wuhan, China, with operations across 16 regions in China and 14 countries worldwide.
He said Huaxin’s engineering expertise and focus on research and development would strengthen HBM Nigeria’s operations and help close engineering skills gaps in the country.
“As HBM Nigeria, we are strategically positioned for long-term competitiveness and stronger market leadership while reinforcing our commitment to supporting Nigeria’s infrastructure development and economic progress after more than six decades of industry leadership,” he said.
He also said sustainability would remain central to the company’s operations, noting that it had introduced lower-carbon products and continued to invest in environmentally friendly production processes.
