By Adedapo Adesanya

The oil market ​gained nearly 1 per cent on Wednesday after US President Donald Trump said the new ceasefire agreement with Iran ‌was not final and the Iran war could resume.

Brent crude futures appreciated by 59 cents or 0.75 per cent to trade at $79.55 a barrel, and the US West Texas Intermediate (WTI) crude futures rose 74 cents or 0.97 per cent to $76.79 per barrel.

President Trump ​said yesterday that a memorandum of understanding with Iran was not final, and that he could resume a ​bombing campaign if he did not like it or if Iran did not “behave”.

The US ⁠and Iran on Sunday said they had agreed on terms to end the war and reopen the Strait of ​Hormuz. Though not officially published, the widely reported draft grants the Islamic Republic the right to sell its oil on global markets immediately, alongside the prospect of significant further economic relief, indicating “Iran has emerged from the conflict in a stronger strategic position.

The provision for waiving sanctions on ​Iranian oil sales takes effect once the agreement is signed this week and also covers services ​including banking, transportation and insurance to facilitate the sales.

The details of the interim deal to end the war began to emerge on Tuesday, with US President ⁠Donald Trump saying it will rule out a nuclear weapon for Iran.

The deal would extend a ​tenuous ceasefire announced in April by another 60 days and reopen the Strait of Hormuz, which Iran has effectively blocked since the US and Israel first attacked Iran.

Iran effectively shut the Strait after the US and Israel launched attacks on Iran ​on February 28. The US military blockaded Iranian oil from coming out of the Strait of Hormuz, through which 20 per cent of the world’s oil and liquefied natural gas normally flows.

The US Energy Information Administration (EIA) said on Wednesday that US crude oil inventories fell for a 10th ‌straight ⁠week last week as demand surged, pushing total stockpiles to their lowest level since 1985, as the Iran war continued to upend global energy markets.

In its first look at 2027, the International Energy Agency (IEA) said the oil market will enter a significant supply overhang, with global ​supply set to surge by 8 million barrels per day and demand rising by ​just 2 million.

In ⁠the near term, the agency said the Iran-US deal should provide an opportunity to replenish depleted inventories or build new strategic reserves.

By Adedapo Adesanya

The Nigerian government on Wednesday dismissed reports suggesting that it has adopted or is considering new taxes on telecommunications services and petroleum products following the publication of the International Monetary Fund (IMF) Article IV Consultation Report on Nigeria.

The clarification followed reports that the IMF recommended that Nigeria may need to extend VAT to fuel products and introduce excise duties on telecommunications services to raise revenue, fund development, and social spending, a development that sparked outrage from Nigerians.

In a statement by the Head of Information and Public Relations Unit of the Ministry of Finance, Mr Efe Ovuakporie, it was clarified that the reports misrepresented the content of the IMF report and did not reflect its policy direction.

“The IMF Article IV Consultation Report contains the Fund’s assessment of Nigeria’s economy as well as recommendations for consideration by the authorities.

“Those recommendations do not amount to government policy and are not binding on Nigeria. Decisions on tax matters are taken through established constitutional and legislative processes and are guided by national priorities and prevailing economic realities”.

The government clarified that the Value Added Tax (VAT) waiver on petroleum products remains in place and has not been withdrawn.

It also noted that although existing legislation provides for a fuel surcharge, such a measure can only take effect through a ministerial order and publication in the Official Gazette.

“No such process is under consideration.

“The continued suspension of these charges has helped cushion the effect of global energy price fluctuations on households and businesses while keeping domestic fuel prices relatively stable”.

The government further clarified that the telecommunications excise duty introduced before 2023 has been repealed under the new tax laws and is therefore no longer applicable.

Against this backdrop, the statement noted that reports claiming that new taxes are being planned for telecommunications services or petroleum products “are not factual and should be disregarded”.

The federal government said it remained focused on reforms that promote economic growth, improve revenue administration, and create a more competitive environment for investment and job creation.

“The emphasis remains on expanding economic activity, plugging leakages and improving efficiency rather than placing additional tax burdens on citizens.

“Any future tax measures will be announced through official channels and implemented in line with the law”, the statement added.

By Adedapo Adesanya

Nigeria’s natural gas production slid marginally by 0.12 per cent on a month-on-month basis to 7.93 billion standard cubic feet per day (bcf/d) in May 2026 from April’s 7.94bcf/d.

According to fresh data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the figure represents a 0.63 per cent year-on-year increase from 7.88bcf/d recorded in May 2025.

Breakdown of the May data shows Associated Gas contributed 3.96 bcf/d, while Non-Associated Gas accounted for 3.98bcf/d, highlighting a near-even split in Nigeria’s production mix and the growing strength of dedicated gas developments.

Domestic utilisation continued to expand. Sales to the local market rose to 2.18bcf/d, up from 2.03bcf/d previously, representing 26.6 per cent of total gas usage, as demand from power generation and industrial users strengthened under the national gas expansion agenda.

Export sales, however, declined to 3.07bcf/d, accounting for about 40 per cent of utilisation, while 2.11bcf/d (26.5 per cent) was consumed for field operations. Gas flaring stood at 0.57bcf/d, or 6.9 per cent, reinforcing gradual progress toward Nigeria’s 2030 zero-flare target.

Production has maintained a steady upward trend over the year, rising from 7.80bcf/d in January to 7.94bcf/d in April, before stabilising in May. Year-to-date performance averaged 7.87bcf/d, slightly higher than the first-quarter average.

Between January and April 2026, Nigeria produced 947.78bcf of gas. Of this, 872.69bcf was utilised, while 57.34bcf was flared, translating to utilisation levels of about 92 per cent, according to NUPRC’s provisional data.

Monthly performance showed consistent utilisation above 90 per cent: January recorded 91.4 per cent, February 93 per cent, March 93.2 per cent, and April 93.1 per cent, underscoring improved efficiency in gas utilisation across the value chain.

Domestic supply remained stable throughout the period, averaging between 59bcf and 66bcf monthly, while exports fluctuated but remained significant, with volumes peaking at 98.69bcf in April.

The commission noted that the growing contribution of non-associated gas reflects ongoing investments in dedicated gas projects and aligns with government efforts under the Decade of Gas initiative to expand domestic utilisation, reduce flaring, and strengthen energy security.

Nigeria, which holds over 200 trillion cubic feet of proven gas reserves, continues to face infrastructure and investment constraints that limit full monetisation of its resources, despite improving production and utilisation trends.