Economy
LCCI Urges FG to Seek Cheaper, Alternative Loan Sources
By Adedapo Adesanya
The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to borrow from cheaper sources to reduce the burden of debt servicing and take a decisive step toward removing fuel subsidies.
This was contained in a statement by its Director-General, Dr Chinyere Almona, titled The Nigerian Economy at 62: The Need for Big Decisions, on Saturday to commemorate the country’s independence day celebration.
This is as it decried the progressive decline in Nigeria’s oil revenue and called on the federal government to tackle the menace of oil theft and pipeline vandalism with a sterner approach.
It said a decisive action against the challenge would enable the country to earn more foreign exchange.
The chamber said the oil sector had consistently recorded negative growth for the ninth consecutive quarter, contracting again by -11.8 per cent year-on-year in Q2 2022, following a higher contraction of -26 per cent year-on-year in Q1.
“If oil revenue makes up more than 80 per cent of government revenue, we expect the government to tackle the menace of oil theft and pipeline vandalism with a sterner approach,” it said.
The LCCI explained that the non-oil sector grew by 4.8 per cent year-on-year in Q2 ‘22 against 6.1 per cent year-on-year in Q1 ‘22, noting that the growth of 1.2 per cent recorded for agriculture and the three per cent for manufacturing were comparatively low when compared with other sectors that grew at above five per cent.
“And with the excruciating burden from debt service, subsidy payments, and worsening insecurity, many more production activities may be constrained in the coming months. The federal government needs to sustain its targeted interventions in selected critical sectors like agriculture, manufacturing, export infrastructure, tackling insecurity, and free up more money from subsidy payments.
“We urge the government to tackle oil theft to earn more foreign exchange, borrow from cheaper sources to reduce the burden of debt servicing, and take a decisive step toward removing fuel subsidies,” the statement read in part.
The LCCI further described poor power supply and insecurity as major challenges in the Nigerian business environment and, therefore, urged the federal government to decentralise the national grid.
It said, “Poor power supply remains a major burden on businesses. It is one area in which the trend since independence has been that of progressive decline. This development negatively impacted investment over the past few years with increased expenditure on diesel and petrol by enterprises. With the frequent collapses recorded by the national grid, we can no longer rely on a centralised power source. The way to go is renewable energy and decentralising the national grid.
It warned that without effective and sustained protection and support for the real sector and a dramatic improvement in infrastructure, the outlook for the sector would remain gloomy, particularly for the small-scale industries struggling in the face of cheap imports into the country and high production and operating cost in the domestic economy.
It added, “The security situation in the country deteriorated in the last year, assuming a very worrisome dimension. Access to markets in the troubled parts of the country has been reduced for many enterprises, with negative consequences for investors’ confidence.
“Our nation is at a cross-road and in dire need of big decisions to drive the drastic transformation the economy requires to return to economic prosperity. Our nation, Nigeria, has come a long way and is too big to fail.”
By Adedapo Adesanya
Crude oil marginally appreciated on Thursday after it was reported that about 30 vessels had crossed the Strait of Hormuz, with Brent crude oil futures gaining 9 cents or 0.09 per cent to trade at $105.72 a barrel, and the US West Texas Intermediate (WTI) futures expanding by 15 cents or 0.15 per cent to $101.17 a barrel.
Iranian state media reported that about 30 Chinese vessels were allowed safe passage by Iran through the Strait, which has been largely shut since the Iran war broke out at the end of February.
Before the report, a Chinese supertanker carrying 2 million barrels of Iraqi crude sailed through the contested waterway on Wednesday after being stranded in the Gulf for more than two months, while a Panama-flagged crude oil tanker managed by Japanese refining group Eneos had also passed.
Bloomberg also reported that the vessels were allowed to pass the Strait of Hormuz with the coordination of the Iranian authorities and Islamic Revolutionary Guard Corps’ navy, however, it added that it is yet unknown or unclear whether the US Navy side of the de facto blockade will also let them pass.
The move also follows formal requests by China’s foreign minister as well as its ambassador to Iran, with Iran reportedly agreeing based on safeguarding the two allies’ strategic partnership.
It also comes as President Donald Trump’s ongoing state visit to China, where he and President Xi Jinping agreed that the Strait of Hormuz must be open for the free flow of energy.
President Xi expressed interest in purchasing more US oil to reduce China’s dependence on the Strait of Hormuz, according to the White House. China, the world’s largest oil importer, is not a big buyer of US crude and has not imported any since May 2025 due to a 20 per cent import tariff imposed during the trade war.
Iran, a member of the Organisation of the Petroleum Exporting Countries (OPEC), also appears to have tightened control over the strait, cutting deals with Iraq and Pakistan to ship oil and liquefied natural gas from the region.
The International Monetary Fund (IMF) said the global economy is clearly moving into a middle “adverse scenario,” which would see global real GDP growth falling to 2.5 per cent this year from 3.4 per cent growth in 2025, citing the Iran war as the cause.
By Aduragbemi Omiyale
For the umpteenth time, the Securities and Exchange Commission (SEC) has run to the rooftop to warn Nigerians against putting their hard-earned money in online investment platforms not authorised to operate in the nation’s capital market.
SEC is the apex regulatory agency in the Nigerian capital market. It issues licences to companies operating in the ecosystem.
In a statement on Thursday, the organisation expressed concerns over the rising “promotion of unregistered online investment schemes on social media applications and websites, including WhatsApp, Instagram, Telegram, Facebook, TikTok and other digital platforms.
In the notice, the SEC emphasised that, “Many of these investment schemes exhibit characteristics of Ponzi or Prohibited investment schemes, while some operators of such schemes also provide unauthorised investment services to members of the public.”
In view of these, the commission advised members of the public “to refrain from investing or participating in any unregistered online investment platform or scheme promising unrealistic or guaranteed returns.”
“Members of the public are further advised not to rely on investment advisories circulated through online platforms by persons or entities not registered by the commission, as reliance on such advisories may expose investors to significant financial losses and fraudulent schemes,” it noted.
“The public is reminded that, under the provisions of the Investments and Securities Act, 2025, only entities registered by the commission are authorised to promote investment services, provide investment advisory services or solicit funds from the public in the Nigerian capital market,” another part of the circular signed by the management noted.
The regulator urged the investing public to verify the registration status of any platform, company, or entity offering investment opportunities on its dedicated portal: https://sec.gov.ng/fintech-and-innovation- hub-finport/registered-fintech-operators/ or https://www.sec.gov.ng/cmos before transacting or investing with them.
By Adedapo Adesanya
Nigerian businessman, Mr Aliko Dangote, has disclosed that he rejected requests by the Nigerian National Petroleum Company (NNPC) Limited to increase its 7.25 per cent stake in the Dangote Petroleum Refinery.
Mr Dangote stated this in a podcast with the Chief Executive Officer of the Norwegian Sovereign Wealth Fund, Mr Nicolai Tangen.
In the podcast interview, the billionaire revealed that the state oil company offered to increase its current 7.25 per cent stake in the 650,000 barrels per day plant.
However, this was rejected because the company is planning to go public and give other Nigerians the opportunity to own shares in the plant.
Recall that the refinery is planning a multi-exchange listing and targeting a valuation of $50 billion. It has appointed a consortium of three financial advisers to manage the offering. Stanbic IBTC Capital to handle international book-building process and lead engagement with foreign portfolio investors; Vetiva Capital Management to manage retail investor distribution within Nigeria; and FirstCap to focus on placements with Nigerian institutional investors, particularly pension funds.
It was reported in 2021 that the NNPC acquired the 7.25 per cent stake in the refinery for $1 billion, with an option to acquire the remaining 12.75 per cent stake by June 2024.
However, the national oil firm reneged on its decision.
During the interview with the Norwegian Sovereign Wealth Fund CEO, Mr Dangote revealed that the state oil company had made attempts to acquire more stakes in the refinery, but this was turned down.
The revelation came while he was responding to questions about what could be the biggest risks to his businesses.
“Actually, if there are civil wars, which is not in the offing at all.
“The other biggest risk is government inconsistencies in policies, and we are addressing that one because if you look at our refinery, the national oil company already owns 7.25 per cent, and they are trying to buy more. We are the ones that said no; we want to now spread it and have everybody be part of it.”
In 2024, Mr Dangote revealed that under the former Group Chief Executive Officer, Mr Mele Kyari, the NNPC reduced its stake in the refinery from 20 per cent to 7.25 per cent. He disclosed that the NNPC had only a 7.2 per cent stake in the refinery and not 20 per cent as many Nigerians believed.
“The agreement was actually 20 per cent, which we had with NNPC, and they did not pay the balance of the money up until last year; then we gave them another extension up until June (2024), and they said that they would remain where they had already paid, which is 7.2 per cent. So NNPC owns only 7.2 per cent, not 20 per cent,” Mr Dangote stated at the time.
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