Economy
FG Targets 1.6mbpd Crude Oil Production in Q1 2023
By Adedapo Adesanya
The federal government has set its sight on the country’s crude oil production to reach 1.6 million barrels per day by the first quarter of 2023.
This is according to the Minister of Finance, Budget, and National Planning, Mrs Zainab Ahmed, at the recent World Bank’s Nigeria Development Update and Country Economic Memorandum in Abuja.
Mrs Ahmed also stated that the level of importation of petroleum products into the country would significantly drop next year when rehabilitation work on the Port Harcourt Refinery is completed. She said this facility would complement the much-expected commencement of operations of the Dangote Refinery in Lagos.
The Minister, who was represented at the event by the Director-General of the Budget Office of the Federation, Mr Ben Akabueze, said oil production is “expected to increase to 1.6 million barrels per day by the first quarter of 2023, as efforts intensify to improve oil production infrastructure and reduce oil theft.”
“We currently project an average crude oil production of 1.9 million barrels by 2024. We expect to complete the rehabilitation of the Port Harcourt refinery before the end of 2023, we have also signed an MoU with Daewoo for a $1.5 billion rehabilitation of the Kaduna and Warri refineries.
“The importation of production products will significantly decline in 2023, as the Dangote refinery is expected to begin operations in the first quarter of 2023. The expected improvement in oil production is also attributable to the increased collaboration between government security agencies, private security outfits, host communities, and deployment of technology to curb the menace of crude oil theft,” the Minister added.
Nigeria’s oil output saw some improvement last month as it hit 1.185 million barrels per day, figures from the country’s petroleum regulator showed, after output fell to less than 1 million in August, the lowest in years due to increased crude oil theft and vandalism of pipelines, forcing some companies to curtail or stop production.
Mrs Ahmed stated that Nigeria’s economic growth improved in the third quarter of 2022, attributing this to “a robust recovery in the non-oil economy and other sectors, including telecoms, agriculture and services”.
She said the federal government was expecting more investors in the oil sector, stressing that the government was striving to achieve greater clarity in the sector in line with the provisions of the Petroleum Industry Act (PIA).
The Minister, who spoke of the need for the nation to depart from “business as usual” policies, said fiscal pressures have mounted on the economy due to lower-than-expected revenue and the rising cost of subsidy on the Premium Motor Spirit (PMS), also known as petrol.
By Adedapo Adesanya
Dangote Petroleum Refinery imported a total of $3.74 billion) worth of crude oil in 2025, to make up for shortfalls that threatened the plant’s 650,000-barrel-a-day operational capacity.
The data disclosed in the Central Bank of Nigeria’s Balance of Payments report noted that “Crude oil imports of $3.74 billion by Dangote Refinery” contributed to movements in the country’s current account position, as Nigeria imported crude oil worth N5.734 trillion between January and December 2025.
Last year, as the Nigerian National Petroleum Company (NNPC), which is the refinery’s main trade partner and minority stakeholder, faced its challenges, the company had to forge alternative supply links. This led to the importation of crude from Brazil, Equatorial Guinea, Angola, Algeria, and the US, among others.
For instance, in March 2025, the company said it now counts Brazil and Equatorial Guinea among its global oil suppliers, receiving up to 1 million barrels of the medium-sweet grade Tupi crude at the refinery on March 26 from Brazil’s Petrobras.
Meanwhile, crude oil exports dropped from $36.85 billion in 2024 to $31.54 billion in 2025, representing a 14.41 per cent decline, further shaping the external balance.
The report added that the refinery’s operations also reduced Nigeria’s reliance on imported fuel, noting that “availability of refined petroleum products from Dangote Refinery also led to a substantial decline in fuel imports.”
Specifically, refined petroleum product imports fell sharply to $10.00 billion in 2025 from $14.06 billion in 2024, representing a 28.9 per cent decline, while total oil-related imports also eased.
However, this was offset by a rise in non-oil imports, which increased from $25.74 billion to $29.24 billion, up 13.6 per cent year-on-year, reflecting sustained demand for foreign goods.
At the same time, the goods account remained in surplus at $14.51 billion in 2025, rising from $13.17 billion in 2024, supported largely by activities linked to the Dangote refinery and improved export performance in other segments.
The CBN stated that the stronger goods balance was driven by “significant export of refined petroleum products worth $5.85bn by Dangote Refinery,” alongside increased gas exports to other economies.
Nigeria posted a current account surplus of $14.04 billion in 2025, lower than the $19.03 billion recorded in 2024 but significantly higher than $6.42 billion in 2023. The decline from 2024 was driven partly by structural changes in oil trade flows, including crude imports for domestic refining, according to the report.
Pressure on the current account came from higher external payments. Net outflows for services rose from $13.36 billion in 2024 to $14.58 billion in 2025, driven by increased spending on transport, travel, insurance, and other services.
Similarly, net outflows in the primary income account surged by 60.88 per cent to $9.09 billion, largely due to higher dividend and interest payments to foreign investors.
In contrast, secondary income inflows declined slightly from $24.88 billion in 2024 to $23.20 billion in 2025, as official development assistance and personal transfers weakened, although remittances remained a key source of inflow, as domestic refineries grappled with persistent feedstock shortages, exposing a deepening supply paradox in the country’s oil sector.
This comes despite the Federal Government’s much-publicised naira-for-crude policy designed to prioritise local supply.
By Aduragbemi Omiyale
An application has been submitted by Sovereign Trust Insurance Plc for its proposed N5.0 billion rights issue.
The application was sent to the Nigerian Exchange (NGX) Limited, and it is for approval to list shares from the exercise when issued to qualifying shareholders.
A notice signed by the Head of Issuer Regulation Department of the exchange, Mr Godstime Iwenekhai, disclosed that the request was filed on behalf of the underwriting firm by its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities.
The company intends to raise about N5.022 billion from the rights issue to boost its capital base, as demanded by the National Insurance Commission (NAICOM) for insurers in the country.
Sovereign Trust Insurance plans to issue 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026.
“Trading license holders are hereby notified that Sovereign Trust Insurance has through its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities, submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026,” the notification read.
By Adedapo Adesanya
Food Concepts Plc, the parent company of fast food brands like Chicken Republic and PieXpress, has disclosed plans to pay 10 Kobo in interim dividend to new and existing shareholders for the 2026 financial year.
This was disclosed by the company in a notice to the NASD Over-the-Counter (OTC) Securities Exchange, where it trades its securities.
The notice indicated that the proposed interim dividend, which comes with no bonus, will be paid to those who hold the stocks of the company as of the qualification date for the dividend, which was Tuesday, March 24.
This means only those who hold the company’s shares as of the closing session will be eligible to receive the stipulated dividend payment.
The shareholders of the company will be credited with the 10 Kobo dividend on Tuesday, March 31.
The notice noted that the closure of the company’s register will be on Wednesday, March 25, through Friday, March 27, 2026, both days inclusive.
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