Economy
Nigeria Hit with the Worst Fuel Scarcity Yet
Nigeria is the main oil producer in Africa and is currently the continent’s largest crude oil exporter. This status however holds no value for Nigerians who have now been accustomed to fuel scarcity in varying degrees being a constant challenge.
In 2024 alone, the country has been hit with two fuel scarcity crises. The first occurred from April to May when the fuel cost increased by 68.01% on a year-on-year basis from N842. 25 per litre in April 2023 to N1415. 06 per litre in April 2024. The second crisis is ongoing. It has seen the petrol price rise to N1,050 per liter in a matter of days from the average of N770.54 recorded in July 2024. This fuel scarcity is another addition to the ongoing cost of living crisis Africa’s largest economy is experiencing.
Nigeria’s Cost of Living Crisis Continues to Soar
During his inaugural speech on May 29, 2023, President Tinubu announced an end to fuel subsidies in the country, citing that continuing subsidies were unsustainable and a drain on public finances. The president acknowledged in another address on June 12, 2023, that although halting the subsidies added a burden on the people of Nigeria it was crucial to the country’s economic survival. Over a year after this bold move by the government, most Nigerians are struggling to make ends meet sparking protests across the country.
NOIPolls, an independent pollster in West Africa disclosed in 2023 that 63% of adult Nigerians surveyed across the country desire to relocate to other countries. The lack of economic opportunities is the primary motivator for leaving Nigeria. As the “Japa”— a colloquial term for emigration— itch among Nigerians intensifies, the youth who can’t leave have sought to earn an income remotely working for foreign companies, gambling on international online casinos, and working multiple low-level jobs.
The prices of food, cooking gas, medication, and public transport have risen since President Tinubu assumed office in May 2023. This rising cost of living has been a result of the naira’s poor performance against the dollar and the instability of the country’s economy. Nigerians have had to survive through high levels of inflation not experienced before in the country for three decades.
According to the World Food Programme, 26.5 million people across the country are projected to face acute hunger between June and August 2024. This is an almost 40% increase from the 18.6 million Nigerians recorded to have faced food insecurity at the end of 2023. This new fuel scarcity crisis has seen Nigerians make long queues at filling stations to access petrol, led to significant increases in transport fares, and resulted in losses for businesses that rely on fuel to power them.
NNPC Explains Cause of Current Fuel Scarcity
In response to rising concerns about fuel scarcity in the country, the Nigerian National Petroleum Corporation Limited (NNPCL) through Dapo Segun, the Vice President, attributed the ongoing fuel scarcity to the impact of the recent heavy rains, lightning, and thunderstorms across the country. Mr Segun explained that the rains had caused saltation in the Estragos channel making navigation difficult and thus hindering the transportation of petroleum products across the country. Additionally, Seun reported that fuel discharge from both onshore and tankers had been suspended occasionally due to lightning and thunderstorms. These three natural extreme weather conditions have made distributing petroleum products across the country challenging.
As the NNPCL vows to resolve the fuel scarcity crisis soon, Nigerians are looking to two other refineries that were set to begin operations to ease the cost of fuel burden. The Dangote Refinery is expected to begin selling petrol in Nigeria by the end of this August. The chairman of the Dangote Group, Aliko Danknote, who had committed to this milestone is positive that his company will meet the target. Additionally, the Port Harcourt refinery is expected to be operational and supplying petroleum products across the country by September 2024 as assured by the group chief executive officer of the NNPCL, Mele Kyari. This will be the third time the refinery’s operational month has been moved this year following its mechanical completion in December 2023.
The Independent Petroleum Marketers Association of Nigeria (IPMAN), on the other hand, has accused the NNPCL of actively contributing to fuel scarcity by failing to provide petroleum products to its members even after payment. IPMAN disclosed that even though payment to the state oil company was made three months ago members have been forced to purchase petroleum products from private depots whose prices are significantly higher. IPMAN is now calling on the government and other key stakeholders in the oil industry to intervene in the situation to lessen these hardships.
Citizens of Africa’s largest crude oil producer and exporter are now no longer surprised by fuel scarcity in their cities. While many try to find ways to survive under the new economic hardships, others opt to leave the country in search of greener pastures. It is evident that Africa’s largest economy is on the brink of collapsing should the government not turn around the economic situation soon.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited kicked off the week on a positive note after it closed higher by 0.58 per cent on Monday amid sustained buying pressure.
The stock market was bullish as a result of bargain-hunting activities across the key sectors of the bourse, with the energy index growing by 1.49 per cent.
Further, the insurance space expanded by 0.88 per cent, the banking counter improved by 0.86 per cent, the industrial goods sector gained 0.81 per cent, the commodity segment soared by 0.79 per cent, and the consumer goods landscape advanced by 0.57 per cent.
Consequently, the All-Share Index (ASI) went up by 946.61 points to 163,244.69 points from 162,298.08 points and the market capitalisation surged by N745 billion to N104.521 trillion from N103.776 trillion.
The market breadth index of Customs Street was positive yesterday with 49 price gainers and 20 price losers, representing a strong investor sentiment.
The quintet of eTranzact, UPDC, McNichols, Red Star Express and RT Briscoe led the gainers’ chart during the session after chalking up 10.00 per cent each to sell for N16.50, N5.50, N6.05, N11.55, and N3.96, respectively.
However, Champion Breweries topped the losers’ table after it shed 8.51 per cent to quote at N15.05, Eunisell shrank by 8.01 per cent to N156.20, Ikeja Hotel crumbled by 8.00 per cent to N36.80, Guinea Insurance depreciated by 7.30 per cent to N1.27, and Omatek moderated by 3.13 per cent to N1.24.
The activity chart had Sovereign Trust Insurance on top after a turnover of 307.5 million shares valued at N1.0 billion, Fidelity Bank followed with 158.4 million equities sold for N3.1 billion, Linkage Assurance traded 118.7 million stocks worth N213.9 million, Mutual Benefits exchanged 31.5 million shares for N130.4 million, and Lasaco Assurance transacted 31.0 million stocks valued at N79.6 million.
At the close of trades, a total of 1.2 billion equities worth N19.2 billion exchanged hands in 59,359 deals versus the 624.1 million equities valued at N18.5 billion traded in 43,816 deals last Friday, showing a spike in the trading volume, value and number of deals by 92.28 per cent, 3.78 per cent, and 35.47 per cent apiece.
By Adedapo Adesanya
Oil prices rose on Monday amid worries that Iran’s exports could decline as the sanctioned member of the Organisation of the Petroleum Exporting Countries (OPEC) cracked down on anti-government demonstrations.
Brent futures increased by 53 cents or 0.8 per cent to $63.87 a barrel and the US West Texas Intermediate (WTI) futures expanded by 38 cents or 0.6 per cent to $59.50 per barrel.
Iran said it was communicating with the US government as President Donald Trump weighed responses to a deadly crackdown on nationwide protests, among the stiffest challenges to clerical rule since the 1979 Islamic Revolution.
On Sunday, the US president said officials may meet Iranian officials. He also threatened possible military action over lethal violence against protesters.
Iran has the world’s fourth-largest proven oil reserves, with around 9 per cent of the global total, coming only behind Venezuela, Saudi Arabia, and Canada. It also has the second-largest proven natural gas reserves, with 17 per cent of the global share, and is the third-largest crude producer and fourth-largest exporter within OPEC.
In recent months, Iran has produced record levels of oil, even in the face of US sanctions on its energy exports and the bombings conducted by Israel on its capital.
Despite the ongoing sanctions, Iran has gradually built up its output once again, from around 2.9 million barrels per day in 2019 to between 3.2 and 4 million barrels per day in 2024, depending on estimates.
Capping gains were expectations that supplies could rise from Venezuela, another sanctioned member of OPEC as it is expected to resume oil exports soon following the ouster of President Nicolas Maduro.
President Trump said last week the government in the South American country was set to hand over as much as 50 million barrels of sanctioned oil to the US.
Reuters reported that oil companies have been racing to find tankers and prepare operations to ship the crude safely.
Investors are also watching the risk of disruptions in supply in two other OPEC allies – Russia and Azerbaijan – as Ukraine’s attacks have targeted Russian energy facilities while the country faces prospects of tougher US sanctions. In Azerbaijan oil exports dropped to 23.1 million tonnes in 2025 from 24.4 million tonnes in 2024.
Market players are also looking at developments with US interest rates and the Federal Reserve after the Trump administration opened a criminal investigation into the head of the US central bank, Mr Jerome Powell.
The Federal Reserve chair called the move a “pretext” to influence interest rates, a point that the US president has always hammered upon.
Lower interest rates could boost economic growth and oil demand by reducing borrowing costs, but could hinder the central bank’s efforts to control inflation.
By Aduragbemi Omiyale
The N21.5 billion rights issue of Eterna Plc has commenced, with shareholders encouraged to participate in the exercise through the NGX Invest platform.
The rights issue began today, Monday, January 12, 2026, and is expected to close on Wednesday, February 18, 2026, a notice signed by the company secretary, Mr David Edet, disclosed.
Proceeds from the exercise will be deployed to support several strategic initiatives, including the expansion of Eterna’s retail network, upgrading of its lubricant blending plant, enhancement of LPG retail assets, acquisition of commercial delivery assets, expansion of aviation fuelling operations, and investments in ESG-related projects aligned with the company’s sustainability objectives.
Business Post reports that a total of 978,108,485 ordinary shares of 50 Kobo each are available for grabs at the price of N22.00 each.
The stocks are being offered to existing shareholders on the basis of three new ordinary shares for every four ordinary shares held as of November 27, 2025.
Apart from buying equities of the rights issue via the NGX Invest platform, shareholders can also purchase by completing the paper participation form.
However, completed participation forms, together with payment or evidence of payment for the full amount payable, must be submitted no later than Wednesday, February 18, 2026, to any of the issuing houses or receiving agents listed in the rights circular.
The rights issue provides existing shareholders with the opportunity to increase their equity holdings in the organisation, thereby reinforcing their participation in and support for Eterna’s long-term growth strategy.
The firm disclosed in the disclosure filed to the Nigerian Exchange (NGX) Limited that the rights issue received the approval of the Securities and Exchange Commission (SEC).
It advised shareholders “to contact their stockbrokers and/or financial advisors for further information regarding the offer.”
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