By Adedapo Adesanya

The Dangote Refinery accepted 52.6 million barrels of crude oil and condensate from producers in the second quarter of 2026, representing 78 per cent of the 68.1 million barrels offered to the refinery, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The refinery, which required about 63 million barrels during the three-month period, received the largest share of crude volumes offered to domestic refineries, accounting for about 98 per cent of total volumes offered by producers.

The figures were contained in the commission’s latest data on the implementation of the Domestic Crude Supply Obligation (DCSO), which showed that producers supplied 53.7 million barrels to local refineries between April and June.

The Q2 performance translated to a 97.4 per cent compliance rate with the DCSO, which is enforced by the NUPRC under Section 109 of the Petroleum Industry Act (PIA) 2021.

The agency said the DCSO framework operates on a “willing buyer, willing seller” basis, with monthly consultations between producers and refiners used to determine crude allocation volumes.

Despite producers offering the Dangote Refinery about 5.1 million barrels more than its quarterly requirement, the plant accepted 52.6 million barrels, leaving about 15.5 million barrels of the offered volume unaccepted.

NUPRC said the difference highlighted the need for continued coordination between producers and domestic refiners, particularly on commercial terms and logistics.

The commission attributed the improved DCSO compliance in the second quarter to increased local crude production and the signing of long-term crude supply agreements backed by bankable Sales and Purchase Agreements (SPAs).

According to NUPRC, these agreements have reduced transactional difficulties and improved the predictability of crude supply, enabling domestic refineries to plan their offtake more effectively.

Monthly data showed mixed performance during the quarter. In April, producers offered 19.31 million barrels against an allocation of 18.13 million barrels, while refineries received 20.88 million barrels, representing a 114.9 per cent delivery rate.

In May, producers offered 23.19 million barrels against an allocation of 18.78 million barrels, but actual deliveries fell to 14.23 million barrels, resulting in a 75.8 per cent compliance rate.

In June, producers offered 26.84 million barrels against an allocation of 18.17 million barrels, while refineries received 18.61 million barrels, representing a 102.4 per cent performance rate.

The NUPRC said it would continue to enforce the DCSO under the PIA while leveraging increased domestic production and commercial supply arrangements to support Nigeria’s energy sufficiency objectives.

By Modupe Gbadeyanka

The Group Chief Innovation and Technology at Meristem, Mr Stanley Jacob, submitted that the core financial challenge facing Nigeria and Africa is not funding, but a lack of financial architecture and project readiness to deploy existing capital safely and productively.

At a forum organised by The Alternative Bank (AltBank) last Thursday in Lagos, Mr Jacob tasked policymakers to think out of the box, noting that the continent holds vast domestic capital pools.

At the event themed Beyond Interest, he also disclosed that the convergence of the Pan-African Payment and Settlement System (PAPSS) with the tokenisation of real-world assets could hand Nigeria a first-mover advantage in continental capital markets.

This sentiment was echoed by the Executive Director of Tugrande Alliance Limited, Ajibola Tobi-Osho, who pointed out that while Nigeria has moved from crisis management to macroeconomic stability, the binding constraint has shifted from inflation to capital allocation, with banks parking record liquidity at the central bank rather than lending to the businesses that drive jobs and growth.

Last Thursday’s programme was convened to advance the case for non-interest finance as a practical route to mobilising patient capital into Nigeria’s productive economy, as well as press investors and policymakers to judge every allocation by both the returns it earns and the capacity it builds.

The chairman of The Alternative Bank, Mr Muhtar Bakare, stated that Nigeria’s constraint is less a shortage of capital than a shortage of the trust that allows capital to do patient work.

“What we lack is not effort. We lack capital that stays long enough to turn effort into capacity, capacity into durable jobs and durable jobs into stability. That is why the distinction between extractive and productive capital matters,” he said.

Also speaking, the Governor of Lagos State, Mr Babajide Sanwo-Olu, averred that the government is not a competitor to private investment but an enabler of it.

“The future of finance is not only about the price of capital; it is increasingly about the quality of the economic activity that capital enables. Lagos is not only open for business; Lagos is prepared to do business,” Mr Sanwo-Olu, represented by the Commissioner for Finance, Mr Abayomi Oluyomi, stated.

In his remarks, former Governor of Lagos State and former Minister of Works and Housing, Mr Babatunde Fashola, argued that capital anchored to real, productive assets and to the public good delivers more durable value than money chased for short-term yield, and urged investors and institutions to weigh the long-term social returns of where they place their funds.

Delivering his brief on The Business Case for Ethical Capital, a member of Sterling Financial Holdings Company Plc board, Mr Abubakar Suleiman, traced The Alternative Bank’s journey from a modest non-interest window opened by Sterling Bank in 2014 to an institution he said now holds total assets approaching ₦500 billion and serves nearly a million customers.

“The Alternative Bank has shown that non-interest banking can grow, win customers, and generate profit. The business case for ethical capital already exists. Our task is to apply it with discipline,” he stated.

He pointed to WasteBanc, AltBank’s recycling initiative with the Lagos Waste Management Authority, and to Nigeria’s sovereign Sukuk programme as evidence that values-aligned finance can hold to commercial standards while connecting capital to identifiable, productive assets.

By Adedapo Adesanya

The Federal Ministry of Finance has directed the National Insurance Commission (NAICOM) to suspend enforcement of disputed recapitalisation fees and a directive requiring NICON Insurance Limited and the Nigeria Reinsurance Corporation to transfer their entire fresh capital into an escrow account with the Central Bank of Nigeria (CBN).

The ministry also demanded a detailed response and legal justification from NAICOM over assessments of N305 million against NICON and N375 million against Nigeria Re as part of the ongoing insurance industry recapitalisation exercise.

The directive was contained in a letter dated August 6, 2026, signed by the Permanent Secretary, Finance, Mr Raymond Omachi, on behalf of the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.

The letter followed a July 27 petition by NICON and Nigeria Re over the implementation of the Nigerian Insurance Industry Reform Act, 2025. The companies challenged NAICOM’s demand for a one per cent capital injection fee, alongside processing and verification charges under the commission’s Minimum Capital Requirement Guidelines.

They also disputed a directive requiring existing insurance companies to transfer their entire recapitalisation funds into a CBN escrow account, arguing that Section 16(3) of NIIRA 2025 provides for a statutory deposit of only 10 per cent.

According to the Finance Ministry, NICON and Nigeria Re had injected N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank, exceeding their adjusted capital requirements of N16 billion and N28 billion.

The companies also deposited N2.5 billion and N3.5 billion respectively with the CBN as statutory deposits and paid initial fees of N80 million and N75 million.

The ministry said the companies therefore considered themselves compliant with the July 31, 2026 recapitalisation deadline.

“Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation,” the letter stated.

The ministry consequently asked NAICOM to explain the basis and legal justification for the disputed charges and escrow requirement.

The intervention comes amid the Federal Government’s efforts to strengthen the capital base of insurance companies and reinsurers, improve their capacity to underwrite larger risks and enhance the sector’s contribution to economic development.

The dispute, however, has raised questions over the extent of NAICOM’s authority to impose additional fees and require existing insurers to place their entire recapitalisation funds in escrow.

The Finance Ministry’s letter did not disclose whether NAICOM had responded to the issues raised. It also referenced an alleged N500 million demand and an additional N180 million capitalisation charge in its subject, although the substantive section specifically put the disputed assessments at N305 million for NICON and N375 million for Nigeria Re.

For now, enforcement of the contested fees and full-capital escrow directive against the two state-owned insurers has been suspended pending NAICOM’s response and legal clarification.