Economy
Nigeria No Longer Paying Subsidy—Minister
By Adedapo Adesanya
The Minister of State for Petroleum (Oil), Mr Heineken Lokpobiri, has reiterated that Nigeria is no longer paying fuel subsidy, following widespread indications that the country still subsidises premium motor spirit (PMS), otherwise known as petrol.
Recall that some stakeholders, including oil marketers, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), and the International Monetary Fund (IMF), have claimed that the country continues to pay subsidies to cushion high fuel costs.
Speaking in an interview on the back of the 25th anniversary of Nigeria’s democracy, Mr Lokpobiri stated that the Nigerian National Petroleum Company (NNPC) Limited had the statutory responsibility to step in anytime things were getting out of hand.
“Let me say categorically that the president had rightly said, on the day he was sworn in, he said subsidy is gone. The president was misunderstood. The last government did not make any provision for subsidy in the 2023 budget.
“I can confirm to you that the subsidy is gone. But there could be strategic interventions from time to time. But officially, the subsidy is gone. If you look at the Petroleum Industry Act (PIA), the NNPC, as a national oil company, also has a legal obligation to intervene from time to time,” the Minister stated.
He argued that without the subsidy removal, Nigeria would have been like Venezuela, stressing that the president is not appreciated well enough for the decision to remove the fuel subsidy.
Mr Lokpobiri also said the Port Harcourt refinery will start working before the end of the third quarter of the year, indicating a new date from December 2023 previously announced for the commencement of operations.
“I’m not there. I’m not there in the Port Harcourt refinery. These were projects that I met on the ground. When I came, I visited all the refineries. It is what they briefed me. The brief they gave to me, I told Nigeria that these refineries would be ready sometime.
“I also do know that I went to Port Harcourt in December when it first came on. I’ve also gone to Warri, and advanced work has been done. Port Harcourt, from reports available to me, shows that hydrocarbon has been introduced.
“But the point is that we are doing whatever we can to ensure that we complete the rehabilitation of these three refineries. The report available to me shows that within the next quarter…within means that it could be next week, it could be within the next quarter that hydrocarbon will be refined and be sold to the public.”
The Minister also said he had been told by the national oil company that Nigeria’s total daily petrol consumption now hovered between 50 million litres and 60 million litres.
On daily oil production, Mr Lokpobiri stated that Nigeria was currently drilling an average of 1.5 million barrels per day, stressing that the country has been able to reduce oil theft to the barest minimum, which is the reason for the production increase.
“That is why you’re also seeing part of the output. Like I said, when we came into office, we were doing an average of one million barrels per day. The fact that we’re doing about 1.5 million barrels on average is a 50 per cent increment. And I can assure you that we’ll do whatever we can to continue to increase oil production,” he said.
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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