Economy
Nigeria May Lose $10b from Oil & Gas Lease Renewal—Senate
By Modupe Gbadeyanka
The Senate on Wednesday raised an alarm of the possibility of losing about $10 billion from the ongoing lease renewals in the oil and gas sector.
In order not to make the nation loss such a huge amount from the exercise, especially at this time the country was borrowing to fund its budgets, the Senate has summoned the Minister of State for Petroleum Resources, Mr Ibe Kachiwku.
At the plenary yesterday, the upper legislative arm of government directed its Committee on Petroleum Resources (Upstream) to investigate issues lease renewals.
In a motion titled ‘Irregularities in Ongoing Oil and Gas Lease Renewal and Massive Loss of Government Revenue’ by Mr Omotayo Alasoadura and three other senators, it was alleged that, “The Minister and the Department of Petroleum Resources were proceeding to renew leases of companies that had brazenly and illegally refused to pay royalties from oil and gas lifted by the companies in contravention of extant laws.”
According to Mr Alasoadura, the Committee on Petroleum Resources had since December, 2017 been inundated with petitions and complaints over alleged multiplicity of irregularities surrounding the renewal of oil and gas leases.
“The action of the Minister of State is capable of short-changing the country and denying the Federation the appropriate revenue accruable from the renewal of the leases,” he warned.
The lawmaker said, “Under the provision of extant laws, failure to pay royalties is a ground for revocation of leases and a legal barrier to renewal of applicable leases.”
“There is a subsisting legal framework and due process mandated by extant law for the renewal of leases that are due,” he added.
According to him, the alleged irregularities are capable of denying government revenue in excess of $10 billion as a result of illegal discounts and rebates in the process of lease renewal.
The lawmaker said that efforts by the senate committee to engage DPR on the matter failed.
According to him, the Department of Petroleum Resources wilfully and deliberately refused to provide the committee with relevant information and data related to the lease renewal.
“There is need to thoroughly investigate the lease renewal in view of the potentially alarming impact this will have on government in terms of loss of revenue accruable to the federation.”
In his contribution, Mr Shehu Sani said that the motion was an indication of the rot in the oil and gas industry, adding that $10 billion was huge revenue that the country could not afford to lose.
“From the substance of this motion, it is very clear that the Minister of State has in every possible way been engaged in acts that contravene the law.
“Over a year ago, he wrote an open letter raising issues about transparency and impunity in the oil sector.
“The issue of lease is something that has been on the front burner of national discourse in the last few weeks.
“What this parliament can do is to once and for all bring the minister to make clarification on the actions he has taken as 10 billion dollars is no small amount of money.
“I am of the belief that if we can get to the root of this matter, it will also open other cans of worm,” he said.
On his part, Mr Rafiu Ibrahim stressed the need to expand the investigation.
“The President is the Minister of Petroleum Resources, maybe that is why this motion is not mentioning the Minister of Petroleum Resources.
“We are aware that the Minister of State ordinarily does not have the final approval for this type of case.
“There is a Board of NNPC and the Ministry and it is out there, though yet to be substantiated that the Chief of Staff to the President is a member of the board and is literally in charge of the board and the ministry.
“I will just want the prayer to expand those to be called in the investigation.”
In his remarks, Deputy President of the Senate, Mr Ike Ekweremadu, who presided at plenary, charged the committee to carry out thorough investigation on the issue.
He stressed the need for proper oversight by the committee, adding that “what matters most in cases like this is transparency in our oversight functions”.
By Adedapo Adesanya
Nigerian businessman and chief executive of Dangote Industries Limited, Mr Aliko Dangote, has unveiled plans for a new phase of investments and acquisitions as the conglomerate pushes towards its target of generating $100 billion in annual revenue by 2030.
Mr Dangote disclosed this while receiving a delegation of senior executives from global investment banking and financial services firm Goldman Sachs, led by co-chief executive of Goldman Sachs International and Global Co-Head of Investment Banking, Mr Anthony Gutman, during a tour of the Dangote Petroleum Refinery & Petrochemicals and Dangote Fertiliser Limited complex in Lagos.
Speaking after the visit, Mr Dangote said the refinery and associated industrial facilities underscore the transformative impact of long-term investment in Africa, stressing that the group’s ambitions extend beyond its current strategic plan.
“No matter how we try to explain what we have built, you cannot fully appreciate it until you see it. But this is only the beginning. We need to look beyond 2030.
“The next phase of our journey will include new investments and acquisitions as we continue to scale the business,” he said.
He added that detailed internal modelling had reinforced management’s confidence that the Group’s target of generating $100 billion in annual revenue by 2030 was achievable.
According to him, the projections were based on conservative assumptions and had strengthened the company’s conviction to pursue an even more ambitious long-term growth strategy.
Mr Dangote also revealed that the strong participation of employees in the refinery’s recent private placement reflected growing internal confidence in the company’s long-term strategy and future prospects.
The Goldman Sachs delegation, after an extensive tour of the 700,000 barrels-per-day refinery, described the project as an extraordinary achievement.
“It is extraordinary what Mr Dangote and the whole organisation have achieved. The ambition, the scale of the project, the quality of the project and the culture of the people is very impressive,” the executives said.
According to a statement issued by Dangote Group on Friday, the delegation was led by Mr Anthony Gutman and included Mr Adib N. Zouein, Co-Head of EMEA Emerging Markets Regional Sales and Head of the Middle East and North Africa region for Global Banking & Markets Public; Mr Ryad Yousuf, Global Head of FICC Sales Strats and Structuring; and Mr Jimi Adesanya, Head of Sub-Saharan Africa Sales (excluding South Africa).
The visitors were received by Dangote; Group Vice President, Oil & Gas, Mr Devakumar Edwin; Managing Director and Chief Executive Officer of Dangote Petroleum Refinery & Petrochemicals, Mr David Bird; Group Executive Director, Oil & Gas, Ms Fatima Aliko Dangote; Chief of Staff to the President/CEO, Ibrahim Dikko; Group Chief Branding and Communication Officer, Mr Anthony Chiejina; Group Chief Economist, Mr Hassan Mahmud; Group Chief Strategy Officer, Mr Aliyu Suleiman; and Head of Administration, Dangote Petroleum Refinery & Petrochemicals, Mr Musa Bala, among other senior executives.
By Adedapo Adesanya
The Senate Public Accounts Committee has heard that Nigeria spent N1.16 trillion on fuel subsidy in 2021, while N1.20 trillion was deducted from federation crude oil sales proceeds during the same period.
The disclosure came from the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr Mohammed Bello Shehu, during the committee’s ongoing investigation into the 2021 to 2023 Nigeria Extractive Industries Transparency Initiative (NEITI) audit reports on the oil and gas sector.
According to the commission, crude and petroleum product losses cost N16.2 billion, pipeline repairs accounted for N22.05 billion, while strategic stock holding attracted N6.75 billion.
The revelations come against the backdrop of Nigeria’s long-running fuel subsidy regime, which successive governments maintained to keep the pump price of petrol artificially low despite mounting fiscal pressures.
Over the years, subsidy payments consumed trillions of Naira, significantly reducing revenues available to the three tiers of government and contributing to widening budget deficits.
The issue reached a turning point in May 2023 when President Bola Tinubu announced the removal of fuel subsidy during his inauguration speech, declaring that “fuel subsidy is gone.” The decision followed years of concerns over the rising cost of the programme, allegations of fraud, and repeated recommendations by fiscal authorities and international financial institutions that the subsidy had become unsustainable.
The removal triggered a sharp increase in the pump price of Premium Motor Spirit (petrol), leading to higher transportation and living costs across the country. In response, the federal government introduced a series of palliative measures, including cash transfers, support for mass transit, and wage-related interventions, while arguing that savings from the subsidy would be redirected to infrastructure, education, healthcare, and other critical sectors of the economy.
The commission also argued that the current method of calculating the 13 per cent derivation fund undermines the constitutional intention of the policy.
Meanwhile, the committee stood down the Niger Delta Development Commission’s presentation until next Wednesday to allow lawmakers review its submission.
The committee also expressed displeasure over the absence of the Auditor-General of the Federation, warning that he must appear before lawmakers next Tuesday or face compulsory appearance through the constitutional powers of the National Assembly.
By Adedapo Adesanya
Businesses in the country expect the Naira to gradually appreciate against the US Dollar between now and January 2027, according to the Central Bank of Nigeria’s (CBN) July 2026 Business Expectations Survey Report released on Thursday.
The report showed that the Business Confidence Index (BCI) remained positive throughout the review period despite perceived macroeconomic challenges. It noted that all sectors expressed optimism about the economy, with the electricity, gas and water sector posting the highest Business Confidence Index of 59.4 points and the strongest expansion prospects for August 2026.
According to the report, “In July 2026, the Business Confidence Index was 5.7 points, reflecting continued optimistic sentiment among formal businesses.”
It attributed the positive sentiment mainly to increased demand (22.3 per cent), economic diversification (21.4 per cent), and improved access to finance (15.0 per cent). However, respondents identified inflation (27.7 per cent), energy-related challenges (23.4 per cent), insecurity (22.4 per cent), and heightened geopolitical uncertainties (16.5 per cent) as the major factors weighing on business confidence.
On the outlook by broad sector, the central bank said confidence remained positive across all sectors in July. The Industry sector recorded a modest improvement, with its index rising to 11.5 points from 10.5 points, while the Services sector increased to 3.6 points from 2.9 points.
By contrast, the Agriculture sector recorded a significant moderation, with its index falling to 3.4 points from 12.2 points.
Despite this, the apex bank said the six-month outlook remained upbeat, with confidence indices across all sectors indicating positive expectations over the review period.
On the macroeconomic outlook by region, the report noted a divergence in sentiment, with businesses in Northern Nigeria expressing stronger confidence than their Southern counterparts in July. Nevertheless, respondents across all regions maintained positive expectations for August.
