Economy
OPEC Challenges Nigeria to Push for Energy Diversification
By Adedapo Adesanya
The Organisation of Petroleum Exporting Countries (OPEC) has revealed that the global energy sector requires about $12.6 trillion investment for development by 2045, charging Nigeria to re-strategise.
This was disclosed by the Secretary-General of the cartel, Mr Mohammad Barkindo, while presenting a keynote address at the 14th Annual Conference of the Nigerian Association of Energy Economics (NAEE) in Abuja, saying that oil would continue to remain relevant to the global economic growth and development.
At the event themed Strategic Responses of the Energy Sector to COVID-19: Impact on African Economies, Mr Barkindo said that oil would continue to remain relevant to global economic growth and development.
“It is vital for us to remember that oil will remain the largest contributor to the energy mix to 2045 with more than 27 per cent, according to the latest OPEC World Oil Outlook.
“Renewables are developing most rapidly, but at the same time, the world’s economy is set to double and all resources will be required to meet this growing need.
“Cumulative investment of $12.6 trillion in the upstream, midstream and downstream is crucial through to 2045 in order to meet this need,” he said.
According to him, investment in 2020 dropped by more than a whopping 30 per cent in the face of COVID-19, even worse than the dramatic declines seen in the severe 2015-2016 industry downturn.
He said that the energy security risk that would result from too little investment would heavily impact both producers and consumers.
He noted that oil-producing developing countries, like Nigeria, would be particularly hard hit.
“History has shown that energy insecurity brings with it economic insecurity and geopolitical instability.
“All OPEC Members, including Nigeria, will have to re-strategise to maintain their positions in the new global energy mix, including focusing on economic diversification.
“Oil-producing countries, and in particular African countries that rely on oil and gas production for revenues, must create an investment-friendly climate — to this end,” he said.
He noted that the Petroleum Industry Bill (PIB) promises to be a huge success in reviving the fortunes of the oil and gas industries in Nigeria.
He said that reduced foreign direct investment into Africa’s industry could be catastrophic for many countries and peoples.
He said that OPEC was concerned about increasing pressure on the oil industry coming from many sides, including decision-makers, along with investors.
“Even within the boardrooms of oil majors, the push is strong to strive for policies and initiatives that could have a drastic negative effect on oil-producing countries.
“Oil is the lifeblood of our country, thus the importance of this issue cannot be underestimated,” he said.
On Energy Transition, Mr Barkindo said oil had a powerful role to play in the energy transition, and it should not be swept under the rug based on old credentials.
He noted that with the help of technology, the industry can become low carbon or even zero-carbon.
“This includes technologies already being implemented such as carbon capture, utilization and storage.
“Additionally, great strides have been made in efficiency gains in the industry, along the entire production chain.
“It is essential that one compare the lifetime credentials of each source of energy in terms of emissions.
“For example, electric cars may appear cleaner, but emissions are buried in many of the industrial processes required to produce them.
“We applaud Nigeria’s goals to reduce carbon emissions while pursuing the UN SDGs, which seek to achieve access to affordable, reliable, sustainable and modern energy for all.
“Transitioning to a low-carbon energy future may seem to run counter to the socio-economic benefits of energy, in particular to energy-poor countries.
“Nigeria is attempting to tackle this challenge head-on with the strong promotion of solar and wind energy, and expansion in the use of natural gas,” he said.
On the impact of COVID-19, the OPEC Secretary-General said that the global oil sector was a worse hit but on the road to recovery.
“We have all suffered the impact of the COVID-19 pandemic over 2020 and 2021. It constitutes an unprecedented event for the global oil industry and the world economy.
“No country or citizen of this planet has remained unscathed and the pandemic continues to overshadow 2021 as it did 2020.
“However, oil-producing developing countries have been particularly hard hit.
“They are facing a triple whammy; COVID-19 has crippled the economies of poorer countries more than wealthier ones,” he said.
He urged the NAEE to use the conference and proffer solutions to some major challenges facing the sector nationally and globally.
By Adedapo Adesanya
The chairman of Dangote Group, Mr Aliko Dangote, has said that within the next five months, Nigerians should be able to purchase shares of Dangote Petroleum and Refinery.
Mr Dangote made this revelation on Sunday during a tour of the facility by the chief executive of the Nigerian National Petroleum Company (NNPC) Limited, Mr Bayo Ojulari, alongside members of the company’s executive management.
The $20 billion refinery is the largest single-train refinery in the world with 650,000 barrels per day refining capacity. There are efforts to boost the capacity to 1.4 million barrels per day soon.
Speaking with journalists, Mr Dangote said, “And the other issue is that they (NNPC) are holding 7.25 per cent of the shares that we have here, which is more than the shares Elon Musk has in Tesla. And they are holding that on behalf of Nigerians,” he said.
“So individually, Nigerians too will have an opportunity in the next, maybe a maximum of four to five months. There will actually be an opportunity to buy the shares.”
He added that shareholders will have the option to receive their dividends in either naira or dollars, as the refinery also earns in dollars.
Commenting on Mr Ojulari’s visit, the billionaire businessman said the NNPC, represented by Mr Ojulari and its management team, was not just a guest but a shareholder.
“Today is really our best day ever” at the facility. I know NNPC invested in us when we were not really sure whether the refinery would be successful.
“So that’s the kind of level of confidence. But right now, the relationship with the new set of people that we have at NNPC, I think the sky is the limit, and we will cooperate and also make sure that we work together to make sure that we make Nigerians proud.”
Speaking on prospects of partnership with NNPC in the upstream sector, he said, “We have block 71, 72, but we’re going to look much deeper”.
“Most likely, depending on our own discussions with them, we will partner with them, maybe in some of the upstream. They, too, will partner with us here because here is not just a refinery, it’s an industrial hub.
“And that’s why we’re doing linear alkaline benzene, which is a raw material for detergents, ” he added.
By Aduragbemi Omiyale
The Nigerian Exchange (NGX) Limited has launched an investigation into trading activities on the shares of Zichis Agro-Allied Industries Plc.
A notice from Customs Street on Monday disclosed that this has led to the suspension of the company for now.
This development comes about a month after Zichis was listed on the domestic bourse and placed in the growth board of the NGX.
In the circular, it was disclosed that the suspension may be lifted after the conclusion of the findings, but for now, investors will not be able to trade the organisation’s securities on the NGX platform.
“The suspension of trading in Zichis shares shall be lifted upon the conclusion of an investigation into the trading activities on the company’s shares,” a part of the disclosure stated.
The bourse explained that it wielded the big stick on Zichis in compliance with Rule 7.0, Rules on Suspension of Trading in Listed Securities, Rulebook of The Exchange (Issuers’ Rules).
This part of the law states that, “Notwithstanding any of the foregoing provisions, the exchange may, in accordance with any of its rules, place the trading of any security on suspension.
“It may also do so if it is of the view that such suspension will be in the interest of the investing public and in accordance with the SEC Rules.”
In announcing the action on the firm, the NGX declared that, “The shares of Zichis Agro-Allied Industries Plc have been suspended from trading on the facilities of Nigerian Exchange Limited (NGX), effective today, Monday, February 23, 2026.”
Business Post reports that last week, shares of Zichis appreciated by 60.74 per cent to N17.36. It joined the stock exchange at N1.81, indicating it has gained N15.55 or 859.12 per cent in one month.
By Adedapo Adesanya
The Nigeria Investment Authority (NSIA) and Japan International Cooperation Agency (JICA) have finalised agreements to launch a $50 Sovereignmillion impact innovation fund aimed at strengthening the Nigerian start-up ecosystem.
The fund is expected to provide patient capital to pre-seed, seed, and early-stage startups addressing critical social challenges in sectors such as agriculture, healthcare, education, energy, waste and water management.
JICA will provide $14 million in grant support, while NSIA contributes up to $20 million to match the grant.
Structured as an onshore public fund, the initiative combines financial support with technical assistance to help startups refine products, scale operations, and expand into new markets.
The fund is expected to create jobs, improve livelihoods, and contribute to sustainable economic development across Nigeria.
Speaking at the agreement signing ceremony between NSIA and JICA at the Ministry of Budget and Economic Planning, Mr Aminu Umar-Sadiq, the chief executive of NSIA, said: “The Fund represents a transformative step for Nigeria’s startup ecosystem. By providing early-stage ventures in high-impact sectors with the capital and support they need to grow, we are enabling innovators to tackle some of Nigeria’s most pressing challenges. Our collaboration with JICA underscores our commitment to entrepreneurship, inclusive growth, and sustainable development.”
Preparations are underway to operationalise the Fund and develop a pipeline of high-impact startups ready for investment. NSIA remains committed to advancing socio-economic development through strategic partnerships that scale impact, expand innovative solutions, and unlock access to capital.
On his part, the Japanese Ambassador to Nigeria, Mr Suzuki Hideo, said, “The Government of Japan hopes this new project will take root in Nigeria and bear fruit swiftly.”
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