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Yahoo
2 days ago
- Automotive
- Yahoo
Shortages hit Nigeria's drive towards natural gas-fuelled cars
Motorists in Nigerian cities are spending hours, or even days, queuing for natural gas to power their cars after the government promoted its use as an alternative fuel. Some are so frustrated they say they regret the decision to convert their vehicle engines to use compressed natural gas (CNG) instead of petrol or diesel. Murtala Ishola, who is in his early 60s, said he was used to queuing for hours to fill up his gas tank but recently it had become a days-long wait. "I have been here for the 5th day," he told AFP outside a filling station in the capital Abuja. Nigeria is promoting CNG as a solution to alleviate perennial fuel shortages and the five-fold price hike that followed the abolition of petroleum fuel subsidies by President Bola Tinubu in May 2023. The oil-rich country has long been one of Africa's top exporters of crude but struggles to provide refined fuel to domestic users. Four months after scrapping the fuel subsidies, Tinubu established the Presidential Compressed Natural Gas Initiative (PCNGI) to drive CNG adoption and ease Nigeria into a cleaner energy era. Experts say mass adoption of CNG will reduce greenhouse gas emissions, improve air quality and cut maintenance costs. By the end of last year, approximately 100,000 cars had been converted, with more than $200 million already invested in the scheme, according to the government. With about 12 million vehicles on Nigerian roads, the government aims to convert one million commercial vehicles by 2026. But many of those whose cars now use the gas in Abuja say that the long wait in queues erodes the gains of the conversion. - 'Plan loses credibility'- - A fuel attendant told AFP on condition of anonymity that the CNG shortage was primarily due to logistics problems -- inadequate delivery trucks and bad roads from the source. Gas used in Abuja comes by road from the south-central state of Kogi, around 235 kilometres (146 miles) from the capital. The gas, mostly made of methane, is extracted from underground in a process similar to crude oil production and then compressed for storage and transportation. People also complain that fuelling stations are too few and far between. PCNGI officials did not respond to AFP requests for comment. However, the state-run Nigerian National Petroleum Company (NNPC) promised in February to improve supplies. Nigeria's CNG market operates under a state-backed hybrid model. The NNPC controls upstream gas supply, while licensed private firms handle distribution under the oversight of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, another state oil firm. The gas is eventually retailed out to motorists through independent stations operated by marketers. However, with limited CNG stations in the capital, Ishola said he may be forced "to revert to petrol", which is nearly four times more expensive than gas. "I have been here with others since Monday morning," a visibly angry Ibrahim Halilu told AFP on a Friday. A commuter vehicle driver Akande George said the trouble he endures to refuel his car is forcing him to rethink his options. "I may leave this commercial driving life for... farming," he said. "I am getting older and can't keep pushing these daily struggles." Experts warn that shortages risk stalling or derailing the national plan to transition from petrol in Africa's leading crude producer. "One of the key success factors in any fuel-switching programme is consumer confidence in fuel availability," said Ayodele Oni, a legal expert in energy and commercial law. "If people cannot consistently access CNG, the plan loses credibility, both among the public and potential private sector investors. "The shortages could weaken momentum, create implementation delays and reduce the expected economic and environmental benefits of the programme," he added. su/tba/sn/kjm
Yahoo
11-06-2025
- Business
- Yahoo
Nigeria's $5bn Aramco loan stalled by oil price dip
Nigeria and Saudi Arabian oil giant Aramco's discussions regarding a $5bn oil-backed loan have hit a snag following a significant drop in crude oil prices, reported Reuters, citing sources. The development has raised concerns among potential banks that were expected to support the agreement. The proposed facility represents Nigeria's largest oil-backed loan to date and Saudi Arabia's first major involvement in the country's financing. However, the recent decline in oil prices, with Brent crude falling around 20% to approximately $65 per barrel, from more than $82 in January, has cast doubt on the size of the deal. Nigerian President Bola Tinubu initiated the loan discussions during a meeting with Saudi Crown Prince Mohammed bin Salman at the Saudi-African Summit in Riyadh last November. The loan is intended to be part of a larger $21.5bn foreign borrowing plan proposed by Tinubu to support the national budget. The drop in oil prices has complicated the negotiations, as Nigeria may require a greater volume of oil to secure the loan. Banks expected to co-fund the loan alongside Aramco have expressed concerns about the reliability of oil delivery, which has slowed the progress of the talks. Gulf banks and at least one African bank are reportedly involved in the discussions, although their identities have not been disclosed. Saudi Aramco, Nigeria's state-owned oil company NNPC, and Nigeria's finance and petroleum ministries have not commented on the ongoing discussions. Nigeria, with a history of utilising and repaying oil-backed loans for various financial needs, would need to back the Aramco loan with at least 100,000 barrels of oil per day (bopd). The country is already using at least 300,000bopd to service existing oil-backed loans, with one such facility anticipated to be repaid this month. Furthermore, the lower oil prices necessitate NNPC to allocate more crude oil to joint venture partners, ranging from international companies such as Shell to local operators like Oando or Seplat, to cover operational costs. "You have to either find more oil, or find a way to renegotiate those deals," mentioned one of the sources. Nigerian trading firm Oando is expected to handle the offtake of the physical cargoes, although the company has not provided any comment. To alleviate the situation, NNPC is striving to boost output, and President Tinubu has issued an executive order to reduce production costs and increase revenue from oil and gas projects, potentially freeing up more funds from each barrel of oil. "Nigeria's $5bn Aramco loan stalled by oil price dip" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Business Insider
10-06-2025
- Business
- Business Insider
Fake NNPC agents target foreign investors with illegal meeting fees
Due to a surge in impersonation schemes in which people falsely pretend to be representatives of the corporation, the Nigerian National Petroleum Corporation Limited (NNPC Ltd) has warned foreign investors. The Nigerian National Petroleum Corporation Limited (NNPC Ltd) has warned international investors about impersonation schemes. The corporation affirmed that such fraudulent activities are unauthorized and illegal, urging vigilance and prompt reporting of incidents. NNPC emphasized its commitment to integrity, professionalism, and conducting business through official and transparent channels. The group revealed in a statement issued Monday by Olufemi Soneye, the company's chief corporate communications officer, that these impersonators have been asking unwary investors to pay them to meet with the company's executives, management team, and board of directors. What the NNPC said 'The general public is advised to beware of individuals and companies falsely claiming to represent NNPC Limited. Their tactics include soliciting fees for meetings with the NNPC board of directors, executives, and management staff. These actions are unauthorised and illegal, the group stated. 'Foreign investors and international business entities are especially urged to remain cautious. If approached, report the incident to the appropriate authorities immediately,' Soneye said. He stressed the company's commitment to ethical behavior and professionalism in all business transactions. The NNPC also informed stakeholders that all genuine discussions with its leadership follow due procedure and take place through official, transparent channels, as seen in the Punch. 'NNPC Limited remains committed to transparency, integrity, and the protection of our stakeholders in all interactions. Let's work together to prevent scams. Stay alert and share this notice,' he said. The warning comes at a time when Nigeria's national oil company is positioning itself to attract more global investment following its transformation from a government corporation into a commercially driven limited liability company. Early in April, Nigeria's president, Bola Tinubu, made significant changes to the group with the appointment of Bayo Ojulari as its new CEO. However, the group has not been without its challenges. For most of the last two years, the NNPC had been in a heated dispute with the Dangote Refinery over the sale of crude.
Yahoo
26-05-2025
- Politics
- Yahoo
Could Nigeria's careful ethnic balancing act be under threat?
In Nigerian politics, there has long been an informal understanding: presidential appointments should carefully balance the country's many ethnic and religious differences. Today, there are growing concerns that this is being ignored. While the constitution requires regional representation in cabinet positions, the broader distribution of other prominent roles has traditionally followed a convention aimed at fostering national cohesion. Nigeria's fractious divisions have in the past torn the country – Africa's most populous – apart. Concerns about fairness in presidential appointments are not new, but a chorus of criticism is growing over President Bola Tinubu's picks, with some accusing the head of state – who has been in power for two years – of favouring people from his own Yoruba ethnic group. The presidency vehemently denies the accusation. There have long been fears that members of one ethnic group would come to dominate key positions – and this means that presidential appointments are closely scrutinised whenever they are announced. There are over 250 ethnic groups in the country with Hausa-Fulanis, Igbo and Yoruba – hailing from the north, south-east and south-west respectively - being the three largest. Critics say that Tinubu, a southern Muslim, showed signs of ignoring precedent from the onset when he picked another Muslim (although from the north) to be his running mate for the last election. Since the return of democracy in 1999, the major parties had always put forward a mixed Muslim-Christian ticket, as the country is roughly evenly divided between followers of the two religions. Tinubu's appointments since becoming president in May 2023 are facing growing cricisim. Although there are dozens of roles for a head of state to fill, there are eight jobs that "are the most crucial for every administration", according to political analyst and barrister Lawal Lawal. These are the heads of the: central bank state-owned oil company, NNPC police army customs service intelligence agency anti-corruption agency and revenue service. There is no constitutional ranking of positions, but collectively these roles control the key financial and security apparatus of the country. Every president inherits his predecessor's appointees, but has the prerogative to replace them. As of April, all eight positions under Tinubu are now filled by Yorubas. The recent appointment of former Shell boss Bayo Ojulari to head the state-owned oil company, the Nigerian National Petroleum Company (NNPC), in place of a northerner turbocharged the debate about the apparent monopoly of one group in top positions. Looking at who filled the same posts under Tinubu's two immediate predecessors, there was no such dominance of one ethnic group at the same stage of their presidencies. Goodluck Jonathan – who served from 2010 to 2015 – had a relatively balanced team of two ethnic Fulanis, two Hausas, one Atyap, one Igbo, one Yoruba and one Calabar. When it came to Muhammadu Buhari – in power from 2015 to 2023 – the situation was less clear. In the top eight he had three Hausas, two Kanuris, one Igbo, one Yoruba and one Nupe. But in the minds of many Nigerians, Hausas, Kanuris and Nupes are all seen as northerners – and therefore there was a perception that Buhari, who is from the north, showed favouritism. Some argue that Tinubu's appointments have merely continued the trend, but the 100%-Yoruba make-up of the eight key positions is unprecedented. "For a democratically elected president, I cannot remember at any point in Nigerian history where you have this high concentration of a particular ethnic group holding most of the sensitive positions," history professor Tijjani Naniya told the BBC. This is not just about what has happened in the past but it could have an impact on the unity and even the future of the country, the professor said. "For me, the fear is what if the next president continues on this path and picks most of the sensitive positions from his ethnic group, it diminishes the feeling of belonging among the rest and also reduces belief in democracy," he said. In the last two years, many northerners, mostly Hausa-Fluanis, have looked at the apparent direction of travel with alarm. The current men (there are no women) in charge of the NNPC, the police, customs and the Economic and Financial Crimes Commission (EFCC) all replaced northerners. The removal of Abdulrasheed Bawa, a Hausa, as boss of the EFCC in 2023 just two years after he was appointed was especially controversial. He was arrested, accused of abuse of office and detained for over 100 days before the charges were dropped. He was replaced by Ola Olukoyode, an ethnic Yoruba. Some from the north felt Mr Bawa was unfairly treated and pushed aside to make way for Mr Olukoyode. "The president needs to know that the Yoruba people are just a part of the country, and all appointments should be spread across all ethnic groups and regions," social affairs analyst Isah Habibu told the BBC. Without addressing specific cases, a Tinubu spokesperson has said the president is being fair and balanced, by taking the wider view of all appointments. Media aide Sunday Dare did try to go into detail, saying overall, 71 northerners and 63 southerners had been appointed by Tinubu. But his 9 April post on X was later deleted, after people pointed out errors in his claim. He promised an updated list, but more than six month slater, it has yet to appear. Tinubu faces critics even from within his own party. Senator Ali Ndume is from the north and – like Tinubu – belongs to the All Progressives Congress. In one television interview he said he had gone on air to talk about the president's appointment "wrongdoings". Ndume said he was shocked, describing them as "non-inclusive and not reflecting the president's 'Renewed Hope' agenda, which promised to carry every section of the country along". Another presidential aide, Daniel Bwala, disputed the idea that some positions were more significant than others. "All I know is that the constitutional provisions [regarding appointments] have been taken care of by the president - there's nowhere in the constitution [where it is] mentioned top five, top 10 and the rest," he told the BBC. "The way we see it is that any position or appointment that one is privileged to serve in is very critical and important. "The national security adviser is from the north-east, the chief of defence staff is from the north-west and the secretary to the federal government is from north-central." The Office of the Secretary to the Government of the Federation, which coordinates policy on behalf of the presidency, released a statement on 12 April saying Tinubu was being fair. "This administration is dedicated to ensuring that all regions and demographics of the country are adequately represented in its institutions and agencies," it said. Political analyst Mr Lawal said the president should appoint the best person for the job, irrespective of their ethnic origin – and agues that this is what Tinubu is doing. "It's high time Nigeria looks beyond ethnicity," he said. There could be a time when Nigerians no longer obsess over the ethnic origins of those in the upper echelons of government, but historian Prof Naniya says this is still some way off. He believes it can only happen when the country gets at least four presidents in succession who give every section a sense of belonging in terms of projects and appointments. "I think it can be done but needs the right leaders." Nigeria's spectacular horse parade closing Ramadan 'I scarred my six children by using skin-lightening creams' 'How I survived Nigeria attack that killed my 16 friends' Are Nigerians abroad widening the class divide back home? Go to for more news from the African continent. Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica Africa Daily Focus on Africa
Business Insider
21-05-2025
- Business
- Business Insider
Nigeria's fuel traders struggling to secure gasoline despite billions spent on refinery upgrades
Nigerian fuel traders say they are having trouble getting gasoline from the state-owned Port Harcourt and Warri refineries, although these plants were declared ready six months ago. Nigeria's state-owned Port Harcourt and Warri refineries, despite declared ready six months ago, are not yet supplying gasoline. This has led to continued dependence on fuel imports and the Dangote Refinery, which is still scaling production. Over ₦11.35 trillion has been spent over the last decade attempting to fix the nation's old refineries. Nigerian fuel traders say they are having trouble getting gasoline from the state-owned Port Harcourt and Warri refineries, although these plants were declared ready six months ago. As a result, they remain dependent on imports and the privately owned $20 billion Dangote Refinery to meet supply needs, according to a report from Reuters. Nigeria has struggled with fuel shortages for a long time. Over the past 10 years, the country has spent more than ₦11.35 trillion ($25 billion) trying to fix its three old, non-working refineries. Since 2021, Nigeria has spent about $2.4 billion to renovate two refineries in the Niger Delta to reduce the need for imported fuel. However, delays in getting these refineries fully working are still causing problems for the local fuel supply. Although Nigeria declared the first phase of refurbishment at the Port Harcourt refinery complete in December 2024, fuel traders say they are still unable to access gasoline from the plant or the Warri refinery, both operated by the state-owned NNPC. Soaring import According to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), which represents over 6,700 fuel stations, its members remain reliant on fuel imports and on supplies from the 650,000 barrels per day Dangote Refinery, Africa's largest, which itself has yet to reach full production capacity. Official data shows that by March 2025, there was no gasoline output from the Port Harcourt refinery, which used to be Nigeria's largest. In contrast, the Dangote Refinery produced 20.6 million litres of petrol that month, while imports contributed 25.19 million litres, meeting 92% of Nigeria's daily gasoline demand of 50 million litres. Nigeria's overreliance on imports remains a major concern. In 2024, the country spent ₦15.4 trillion ($9.63 billion) on petrol imports, more than double the ₦7.51 trillion spent in 2023, according to the National Bureau of Statistics (NBS). Authorities hope that getting local refineries running will significantly reduce this cost.
