General
Nigeria’s Petrol Import Fight Puts Pump Prices, Supply Security Back in Focus
The dispute between Dangote Refinery and some independent oil marketers over the import licences has become a test of pump-price stability and supply security, EBC Financial Group (EBC) has said.
Dangote has filed a fresh lawsuit challenging fuel import licences granted to marketers and Nigerian National Petroleum Company (NNPC) Limited, while marketers argue that imports remain needed to protect supply security and competition. The test for Nigeria is whether it can quickly cut petrol imports while maintaining stable fuel reserves, depot supply, trucking, pump prices, foreign exchange (FX) demand, and investor confidence.
Falling Imports Make Stock Cover the Key Market Test
Dangote Petroleum Refinery has changed Nigeria’s petrol supply balance by adding large-scale domestic refining capacity to a market that has relied heavily on imported refined fuel. The refinery has a nameplate capacity of 650,000 barrels per day, giving Nigeria its largest route for producing refined fuel locally rather than relying heavily on imported cargoes. That capacity can reduce shipping exposure, cut FX demand from refined-fuel imports, and keep more refining activity inside Nigeria.
The shift away from imported petrol is already visible in Premium Motor Spirit (PMS) import volumes for January to April 2026, which fell from about 25 million litres per day in January 2026 to 3.7 million litres per day in April 2026 as local refining expanded, while PMS stock cover fell from 21.2 days in March to 17.7 days in April. Lower imports show progress toward local supply, but lower stock cover means the system has fewer days of stored petrol available if refinery output, depot loading or trucking slows.
According to Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) data, Dangote’s PMS production was placed at 53.6 million litres per day in April 2026, while domestic supply from the refinery reached 40.7 million litres per day, and imports fell to 3.7 million litres per day. The commercial issue is whether that output is reaching depots and filling stations fast enough to support daily demand, reduce regional shortages and limit extra trucking or storage costs.
Production is not the same as availability because petrol still must move through several physical and commercial steps before it reaches consumers. PMS must leave the refinery, enter depots, be loaded into trucks, reach filling stations and be sold to households and businesses. Any delay in refinery loading, depot release, truck allocation or station replenishment can raise waiting time, lift trucking charges, widen price gaps between cities and force marketers to tie up more working capital before sales are completed.
Import licences remain commercially important because imported cargoes can refill depots when local refinery supply or trucking delivery falls short. When domestic petrol is available and can move smoothly to filling stations, extra imports can add cost and weaken demand certainty for local refiners. When stock cover tightens, or regional delivery falls behind consumption, imports can rebuild reserves and shorten replenishment cycles. The policy issue is who measures a shortage, what data proves it and when import licences are activated.
David Precious, Senior Market Analyst at EBC Financial Group, said, “Nigeria’s downstream fuel debate is moving from a question of refinery capacity to a question of market reliability. Local refining is a major structural gain, but the market still needs clear rules on when imports are allowed, how supply shortfalls are measured, and how fuel can move consistently from refinery gate to final consumer.”
Pump Prices Carry the Public Cost
The dispute is significant because petrol prices move through the wider economy, including transport fares, food distribution, generator costs, retail delivery and small-business margins. Local refining may reduce import dependence, but it does not automatically lower pump prices. Pump prices can still be shaped by crude costs, FX costs, prices charged as petrol leaves the refinery, depot margins, loading charges, trucking costs and competition between refiners, importers and marketers.
The price risk is sensitive because depot prices set the cost base for marketers before petrol reaches filling stations. Dangote’s ex-depot PMS price was recently reported at NGN 1,350 per litre, while the National Bureau of Statistics’ latest PMS price data put the average retail price at NGN 1,288.54. When wholesale or depot costs stay high, the pressure can move into pump prices, minibus fares, ride-hailing costs, food distribution, generator use, retail delivery and small-business operating costs.
Fuel also feeds into inflation through transport fares, food distribution, generator costs and retail operating expenses. Nigeria’s headline Consumer Price Index (CPI) inflation rate rose to 15.69% in April 2026 from 15.38% in March 2026, according to the National Bureau of Statistics (NBS) report. If petrol supply becomes less predictable or depot prices rise, businesses face higher input costs, and households face higher daily transport and food costs.
Local refining can reduce one source of demand for US dollars because fewer imported petrol cargoes may be needed. The full FX benefit depends on how crude oil is sourced, priced and supplied. If crude costs remain linked to the US dollar, imported crude is still required, shipping costs rise, or refinery-gate prices follow international benchmarks, the currency benefit becomes more complex. The naira impact depends on crude supply, crude pricing, refinery output, domestic sales, exports and actual import reduction.
S&P Upgrade Raises the Stakes for Clear Rules
S&P Global Ratings (S&P) upgraded Nigeria’s long-term sovereign credit rating from B- to B, citing a stronger macroeconomic profile, higher oil production and prices, exchange-rate liberalisation and increased domestic refining capacity. That makes the import-licence dispute more visible to investors: if local refining reduces import demand while keeping petrol supply reliable, it supports the reform case; if unclear import rules or weak stock cover raise pump-price risk, investors may price the fuel market as a source of policy and inflation risk.
“The risk for Nigeria is not simply whether petrol is imported or refined locally,” Precious added. “The bigger issue is whether the transition can keep pump prices, fuel reserves and investor confidence stable at the same time.”
Clear rules matter because each part of the fuel chain needs certainty. Refiners need predictable domestic demand. Marketers need transparent import rules and reliable depot access. Trucking operators need loading schedules that reduce idle time and improve fleet use. Households and businesses need a stable fuel supply to avoid unnecessary cost increases in transport, food, power generation and retail pricing.
Nigeria’s domestic refining expansion is a major shift, but the transition will be judged by outcomes rather than capacity alone. The real test is whether the country can reduce petrol imports while keeping stock cover adequate, pump prices manageable, distribution reliable and competition credible. If those conditions hold, local refining strengthens Nigeria’s wider economic reform case. If they weaken, the pressure moves from import terminals to refinery gates, depots, trucks and filling stations.
General
Senate Voids SPAC Arrest Warrant Against Ex-NNPC Boss Mele Kyari
By Adedapo Adesanya
The Senate has nullified a warrant of arrest purportedly issued by the Senate Public Accounts Committee (SPAC) against the former chief executive of the Nigerian National Petroleum Company (NNPC) Limited, Mr Mele Kyari.
The motion, sponsored by the Senate Leader, Mr Opeyemi Bamidele, also formally dissociated the Senate from comments attributed to Senator Adams Oshiomhole, who reportedly described the state oil company as “a bunch of criminals and thieves” during a Public Accounts Committee hearing earlier on Wednesday.
The Senate emphasised that legislative oversight must be conducted within the framework of the Constitution, due process, and the principles of fair hearing.
Presenting the motion, Mr Bamidele argued that while Sections 88 and 89 of the Constitution grant investigative and oversight powers to the National Assembly, the authority to issue warrants compelling the attendance of witnesses is clearly vested in the presiding officer of the legislative chamber.
According to him, Sections 4, 5 and 6 of the Legislative Houses (Powers and Privileges) Act confer the power to issue warrants exclusively on the President of the Senate in matters relating to Senate proceedings and committees.
Mr Bamidele warned that any attempt by a Senate committee to independently issue or execute a warrant of arrest without authorisation from the Senate President could amount to an unlawful exercise of power.
“The power to issue a warrant affecting the liberty of a citizen is an extraordinary statutory power which must be exercised strictly in accordance with the procedure prescribed by law,” the lawmaker noted.
He further maintained that legislative investigations are not substitutes for criminal prosecution and that neither individuals nor institutions should be presumed guilty before the conclusion of investigations or judicial determination.
“The constitutional doctrine of fair hearing and the presumption of innocence require that no person or institution be adjudged guilty except by a court of competent jurisdiction after due process of law.”
A major aspect of the motion focused on personal remarks attributed to Mr Oshiomhole during deliberations of the Public Accounts Committee.
Mr Bamidele argued that describing NNPC as “a bunch of criminals and thieves” was capable of conveying a conclusion of criminal culpability before the completion of any lawful investigation, warning that such statements could be interpreted by the public as the official position of the Senate and undermine confidence in the impartiality of ongoing oversight proceedings.
“Such statements, if left unclarified, may be misconstrued by the public as representing the official position of the Senate and may undermine confidence in the impartiality and objectivity of ongoing legislative oversight proceedings.”
The Senate subsequently adopted a resolution formally dissociating itself from the comments and clarifying that they do not represent the findings, opinion, resolution or official position of the upper chamber.
Deputy Senate President, Mr Barau Jibrin, strongly backed the motion, describing it as part of the constitutional responsibilities of the Senate Leader.
Reading from Senate rules and constitutional provisions, Mr Barau stressed that committees are subordinate organs of the Senate and may only make recommendations rather than independently exercise powers reserved for the chamber.
“The committee overstepped its bounds, and he has done the right thing by drawing attention to it.”
He maintained that the Senate must always operate in accordance with both its rules and the Constitution.
“We need to do things in line with our rules and with the law of the land.”
For his part, Senator Mohammed Tahir Monguno described the motion as a necessary intervention to preserve the credibility of the legislature.
According to him, it would be contradictory for lawmakers to make laws for national governance while simultaneously violating those same laws.
“The Senate, being the highest law-making body of the country, should not only be above board but should be seen manifestly to be above board.”
He characterised the motion as both a wake-up call and a reminder for committees to strictly comply with constitutional provisions and Senate rules.
Senator Abba Moro emphasised the importance of maintaining decorum and avoiding statements capable of damaging reputations.
“We should not make statements that seek to impugn the character of public officers or individuals in society.”
Mr Moro cautioned that Nigerians closely monitor Senate proceedings and warned that inappropriate conduct could undermine public trust in the institution.
On his part, Senator Adamu Aliero was among the strongest critics of Oshiomhole’s comments, describing the statement as “reckless” and arguing that it could damage Nigeria’s investment image internationally.
“The NNPC is the cash cow of this country. Such reckless statements send wrong signals to outsiders and can jeopardise foreign direct investment.”
General
Customs to Curb Vegetable Oil Smuggling to Protect Local Investments
By Adedapo Adesanya
The Nigeria Customs Service (NCS) has signalled intensified efforts to combat the smuggling of vegetable oil into the country, with the launch of special operations aimed at protecting local investments, preserving jobs, and supporting the growth of the agricultural value chain.
The Comptroller-General of Customs (CGC), Mr Adewale Adeniyi, disclosed this during a meeting with stakeholders in the vegetable oil industry at the Service Headquarters in Maitama, Abuja, according to a statement issued by the service on Wednesday.
Mr Adeniyi said his organisation remains committed to tackling smuggling through strategic enforcement, intelligence gathering, and stakeholder collaboration, noting that customs and operators in the vegetable oil sector share a common objective of protecting legitimate businesses, encouraging investment, and strengthening the national economy.
He explained that addressing smuggling requires sustained cooperation between government agencies and the private sector, particularly in sectors that contribute significantly to employment generation and economic development.
Mr Adeniyi also called on stakeholders to support enforcement efforts by providing credible intelligence on smuggling routes and illicit trade activities.
Also speaking, the Deputy Comptroller-General in charge of Enforcement, Inspection and Investigation, Mr Timi Bomodi, highlighted the Service’s achievements in curbing the illegal importation of vegetable oil products.
Mr Bomodi disclosed that Customs recorded several seizures across key border corridors and assured stakeholders that surveillance would be intensified in vulnerable locations.
“We recorded about 65 seizures of vegetable oil products in 2025 and another 23 seizures in 2026, with a combined Duty Paid Value of approximately N1.314 billion,” he said, noting that many of the seizures were made along major smuggling corridors, including Seme and Idiroko, adding that surveillance would also be strengthened in other identified vulnerable locations.
General
Airtel Africa Foundation Interventions Gulp $6.2m in One Year
By Aduragbemi Omiyale
About $6.2 million was spent by Airtel Africa Foundation to execute some of its interventions in its first full year, with education receiving the largest share of investment.
In a report made available to Business Post on Thursday, the organisation said the funds were used across its four strategic pillars of Financial Inclusion, Education, Environmental Sustainability and Digital Inclusion (FEED).
The foundation said it aims to scale proven interventions in the year ahead, including expanding its School Adoption Programme to over 80 schools, increasing scholarships to more than 600 youth, providing free internet connectivity to an additional 2000 schools, and extending digital skills and financial inclusion initiatives to underserved communities.
In the period under review, a total of 1,028 schools were connected to the internet through its partnership with UNICEF, bringing the total to 3,296 schools connected across 13 countries, reaching over 2 million learners and nearly 39,000 teachers. In addition, 64 zero-rated digital platforms enabled over 11 million learners to access free educational content.
Further, it improved the condition of public schools, with seven fully renovated and 43 undergoing upgrades under the School Adoption Programme that integrates infrastructure improvements with digital access and holistic student development.
Through the Airtel Africa Tech Fellowship, 257 full university scholarships were awarded in Malawi, Nigeria, Tanzania, the Democratic Republic of Congo, and Uganda, expanding access to STEM (Science, Technology, Engineering and Mathematics) education and building a pipeline of high-potential African technology leaders. In addition to this, 30,530 youth and women were trained through digital skills initiatives delivered with national, multilateral, and private-sector partners.
“The Airtel Africa Foundation was established to help dismantle barriers caused by unequal access to opportunity. While talent and ambition are abundant, access to education, digital tools and economic participation remains uneven. Through partnerships and our continental reach, we are committed to investing in communities furthest from opportunity,” the chairman of Airtel Africa Foundation, Mr Segun Ogunsanya, stated.
“As a Foundation, we are positioned to deliver skills development and lasting change at the individual and household level, while partnering with governments to unlock Africa’s economic transformation,” he added.
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