By Adedapo Adesanya

The oil market was up by nearly 2 per cent on Wednesday due to concerns about global supplies after the United States issued new sanctions targeting Chinese importers of Iranian oil.

Brent crude futures grew by $1.18 or 1.8 per cent to $65.85 a barrel and the US West Texas Intermediate (WTI) crude futures expanded by $1.14 or 1.9 per cent to $62.47 per barrel.

The US on Wednesday issued new sanctions targeting Iran’s oil exports, including against a China-based small independent refineries known as teapots as President Donald Trump seeks to ramp up pressure on Iran and drive Iranian oil exports down to zero.

It imposed sanctions on a China-based independent teapot refinery it accused of playing a role in purchasing more than $1 billion worth of Iranian crude oil.

It was the second small independent Chinese refinery hit with sanctions by the Trump administration so far.

The US has not in the past focused on Chinese teapot refiners in part because they have little exposure to the US financial system.

The country also issued additional sanctions on several companies and vessels it said were responsible for facilitating Iranian oil shipments to China as part of Iran’s shadow fleet, adding that it is committed to disrupting all actors providing support to Iran’s oil supply chain, which it claims the regime uses to support its terrorist proxies and partners.

Normally, China does not recognize US sanctions and is the largest importer of Iranian oil. China and Iran have built a trading system that uses mostly Chinese Yuan and a network of middlemen, avoiding the dollar and exposure to US regulators.

However, Chinese state-run oil firms have stopped buying Iranian crude, on concerns of running afoul of sanctions.

The Organisation of the Petroleum Exporting Countries (OPEC) has received updated plans for Iraq, Kazakhstan and other countries to make further oil output cuts to compensate for pumping above agreed quotas.

The latest plan requires seven nations – Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan and Oman – to cut output by a further 369,000 barrels per day in monthly steps between now and June 2026, compared with an earlier plan running from March until next June, according to Reuters calculations.

Under the latest plan, monthly cuts will range from 196,000 barrels per day to 520,000 barrels per day from this month until June 2026, up from between 189,000 barrels per day and 435,000 barrels per day previously.

If successfully executed, the compensation plan would to a large extent offset a planned 411,000 barrels per day output increase being made by other members of OPEC+ in May.

US crude stockpiles rose while gasoline and distillate inventories fell last week, the Energy Information Administration (EIA) said, showing that crude inventories rose by 515,000 barrels to 442.9 million barrels in the week ended April 11.

By Adedapo Adesanya

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has confirmed that the daily importation of Premium Motor Spirit (PMS), known as petrol, dropped by 67.04 per cent from 44.6 million litres in August 2024 to 14.7 million litres as of April 13, 2025.

This disclosure was part of revelations made by the chief executive of NMDPRA, Mr Farouk Ahmed, during the Meet-the-Press briefing series organised by the Presidential Communications Team (PTC) at the State House in Abuja on Tuesday.

He explained that the 30-million-litre drop in imports was due to increased contributions from local refineries, revealing that domestic production of petrol surged by 670 per cent during the same period.

He credited the rise to the gradual restart of the Port Harcourt Refining Company in November 2024, along with added output from modular refineries across the country.

“After contributing virtually nothing in August 2024, local plants delivered 26.2 million litres per day in early April, a jump from the 3.4 million litres recorded in September 2024, which was the first month with measurable output,” he said.

He, however, said that in spite the growth in domestic supply, total national supply exceeded the government’s 50 million litres per day consumption benchmark.

“Only twice within the eight-month period—56 million litres in November 2024 and 52.3 million litres in February, 2025.

He added that the month of March 2025 saw a slight dip to 51.5 million litres per day, while the first half of April recorded an even lower average of 40.9 million litres per day.

Mr Ahmed emphasised that the NMDPRA issues import licenses strictly in line with national supply requirements, underscoring the authority’s commitment to balancing imports with growing local production capacity.

He called for a collective national effort in protecting and maintaining Nigeria’s oil and gas infrastructure.

According to him, all stakeholders – including security agencies, political leaders, traditional rulers, youths, and oil companies must work together to secure national energy assets.

“It takes all of us—government, traditional institutions, companies, and the youth—to collaborate and resist criminal activities that threaten our infrastructure,” he said.

The CEO also stressed that local government authorities and international oil companies (IOCs) such as the Nigerian National Petroleum Company (NNPC) Limited, as well as indigenous companies, must take responsibility in ensuring that oil assets are protected and maintained.

“Until we all commit to safeguarding these national assets, we should stop pointing fingers,” he added.

Mr Ahmed reaffirmed NMDPRA’s commitment to transparency and accountability in the midstream and downstream sectors.

By Adedapo Adesanya

The Manufacturers Association of Nigeria (MAN) has said the US imposition of 14 per cent tariff on imported products may have a significant impact on Nigeria’s trade and industrial landscape.

The Director-General of MAN, Mr Segun Ajayi-Kadir, in a statement noted that the US remained one of Nigeria’s most significant trade partners, accounting for approximately 7 per cent of its non-oil exports.

President Donald Trump had earlier slammed a reciprocal tariff on all trading partners with the US with Nigeria getting a 14 per cent share. Although, it recently made a pause to the tariffs for a 90-day period, the possible impact remains.

Mr Ajayi-Kadir said the new tariff regime directly threatened this trade dynamic, particularly as Nigeria projected an ambitious N55 trillion budget and was experiencing a downward trend in global crude oil prices.

According to him, the hike has come at a vulnerable moment when the country is just recovering from the impact of the government’s policy mix that has had negative effects on the manufacturing sector.

“Nigeria’s manufacturing sector, which contributed 8.64 per cent to the country’s Gross Domestic Product (GDP) in 2024, is one of the most predisposed sectors of the economy when it comes to trade policy shifts.

“The imposition of a 14 percent tariff on Nigerian exports significantly undermines the competitiveness of locally manufactured goods in the US market.

“Manufacturers who are exporters in agro-processing, chemicals and pharmaceutical, basic metal, iron and steel, non-metallic mineral products and other light industrial manufacturing rely heavily on the U.S. for market access.

“With increased costs for American buyers due to the tariffs, demand for Nigerian products is expected to decline,” he noted.

Mr Ajayi-Kadir stated that in addition to revenue losses, the new tariffs posed a significant disincentive to firms investing in value-added manufacturing.

He noted that over the past decade, manufacturers had made concerted and strategic efforts to support the country’s transition from exporting raw commodities to semi-processed and finished goods.

“However, higher market-entry costs because of higher tariff on Nigerian products will reduce the profitability of such investments, making it more attractive for firms to revert to exporting raw materials.

“This is counterproductive to Nigeria’s industrialisation agenda and compromises the long-term goal of achieving export diversification under platforms such as the African Continental Free Trade Agreement (AfCFTA),” he said.

The MAN DG added that the implications of the tariff imposition on employment in the manufacturing sector were dire.

He noted that as export revenues fall, many companies may reduce their production scale or downsize their workforce to cut costs.

He added that beyond the manufacturing sector, the Nigerian economy was not insulated from the effects of the U.S. tariff decision with its direct impact on Nigeria’s trade balance.

Mr Ajayi-Kadir said with the country already grappling with a fragile external sector, any significant reduction in exports to the U.S. would erode the current trade surplus, potentially pushing the balance into deficit.

He expressed worry about potential pressure on Nigeria to reciprocate by reducing its own tariffs on U.S. goods.

He noted that while the U.S. may frame this as a step toward “fair trade,” the reality was that lowering tariffs on U.S. imports could flood the Nigerian market with subsidised goods, thereby undermining local producers.

“Nigeria has, in recent years, made commendable strides toward achieving self-sufficiency in several manufacturing segments and diversifying away from oil.

“However, succumbing to external pressures to liberalise trade prematurely would reverse these gains.

“Furthermore, the absence of institutional capacity to engage in sophisticated trade negotiations places Nigeria in a vulnerable position.

“While countries with advanced legal and economic institutions may be able to negotiate favourable terms, Nigeria is at a disadvantage due to capacity constraints,” he said.