Category: Business

  • MTN mulls IHS acquisition

    MTN mulls IHS acquisition

    MTN Group, Africa’s largest mobile network operator, is in advanced discussions to acquire the remaining 75 per cent stake in IHS Holdings Limited, aiming to gain full ownership of the tower infrastructure company.

    The potential deal could be priced near IHS’s last trading value on the New York Stock Exchange as of February 4, 2026. MTN, like many operators, has relied on third-party tower companies such as IHS to host its network equipment.

    IHS Towers, founded in Nigeria in 2001, has grown from a homegrown startup into one of the world’s largest independent tower companies, operating roughly 40,000 towers across Africa, Latin America, and the Middle East.

    Listed on the New York Stock Exchange, the company has seen a notable financial rebound, with a market capitalisation of $2.76 billion. Its share price on Thursday, February 5, 2026, was at $8.23

    This acquisition would mark a significant shift in MTN’s strategy, bringing tower infrastructure back in-house after years of outsourcing to specialized operators like IHS.

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    The deal is expected to have a material impact on MTN’s share price, prompting the company to advise shareholders to exercise caution in trading until further updates.

    MTN already holds a significant stake in IHS and maintains a deep operational partnership across multiple African markets. IHS Towers boasts a global footprint, managing approximately 40,000 towers spanning Africa, Latin America, and the Middle East.

    Based on industry data, IHs serves as a critical backbone for mobile connectivity in emerging markets, with MTN as its largest customer.

    If the deal falls through, MTN said it would continue exploring options to unlock value from its IHS investment, consistent with its disciplined capital allocation strategy.

  • Nigeria, others get rating improvements

    Nigeria, others get rating improvements

    A comprehensive review of Africa’s sovereign credit ratings for the second half of last year has  revealed a continent making significant yet uneven progress on economic reform, with positive developments outnumbering setbacks for the first time in years.

    The Africa Sovereign Credit Rating Review, a collaborative effort between the African Peer Review Mechanism and the United Nations Economic Commission for Africa, documented how nine African countries received credit rating upgrades during the period from July to December 2025.

    These improvements signal growing confidence in the region’s economic management, even as challenges around debt sustainability persist.

    Nigeria received a positive outlook revision from S&P, reflecting improvements in economic management and external balances following comprehensive fiscal, monetary, and exchange rate reforms. According to the report, Nigeria’s stronger medium-term growth prospects have been supported by policy changes designed to address long-standing structural challenges in Africa’s largest economy.

    The positive outlook change places Nigeria alongside Uganda, Rwanda, and Cape Verde as countries where rating agencies see potential for future upgrades if current economic trends continue.

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    The recognition comes as the country returned to international markets in November with a substantial 2.35 billion dollar Eurobond issuance that attracted over five times oversubscription, demonstrating strong investor appetite despite high coupon rates of 8.63 percent for a ten-year bond and 9.13 percent for a twenty-year bond.

    Among the notable success stories, Morocco regained investment-grade status after Standard & Poor’s upgraded its sovereign rating, citing sustained fiscal consolidation and robust economic diversification across tourism, manufacturing, and renewable energy sectors. The North African nation reduced its fiscal deficit to 3 percent of GDP while implementing structural reforms in tax and social security that reinforced investor confidence.

    South Africa achieved its first sovereign upgrade in nearly two decades, with S&P restoring confidence in the country’s fiscal trajectory. The upgrade reflected narrowing fiscal deficits, a projected third consecutive primary surplus, and reforms that reduced contingent liabilities at state-owned enterprises, particularly in the troubled energy sector.

    Ghana and Zambia, both of which have been navigating complex debt restructuring processes, received upgrades from multiple rating agencies. Ghana’s improvements were supported by sustained progress on external commercial debt restructuring and macroeconomic stabilization under International Monetary Fund-backed reforms. Zambia’s upgrade reflected significant advances in restoring stability following its 2020 default, with the country introducing an innovative pilot program allowing mining companies to make tax payments in yuan to reduce currency conversion costs when repaying Chinese creditors.

    However, the review also documents significant setbacks for some nations. Senegal experienced rating cuts from both Moody’s and S&P after audits revealed previously undisclosed debt that significantly increased the country’s debt burden. Madagascar faced a downgrade following political instability triggered by a military takeover, while Botswana’s rating suffered due to weakened fiscal buffers amid collapsing diamond revenues.

    The report highlighted persistent structural challenges in how global rating agencies assess African economies.

    Authors noted that agencies often lag behind real-time economic progress, with ratings failing to reflect meaningful improvements in fiscal management and structural reforms.

     The sovereign ceiling framework continues to constrain domestic institutions, making it difficult for well-managed African banks and corporations to receive ratings higher than their sovereign governments. A particularly contentious issue involves how agencies assess domestic financing strategies.

    The report argued that increased local debt issuance is often viewed negatively as a fallback from lost external access, rather than recognized as a proactive policy choice that reduces foreign exchange exposure and strengthens domestic financial systems.

     Senegal’s successful $5.3 billion fundraising through the West African Economic and Monetary Union regional capital market, which saw all issuances oversubscribed, was largely overlooked by rating agencies that focused instead on debt sustainability concerns.

    Looking ahead, the report recommends that rating agencies strengthen their capacity to reflect real-time economic progress through institutionalised dialogue platforms with African governments. It called for broader credit assessments that recognize strategic domestic borrowing as legitimate policy choices rather than signs of distress, and urges adaptation of global rating frameworks to account for informal economies, structural reforms, and development priorities unique to African contexts.

  • African creatives, others gather for Launch 26 Conference

    African creatives, others gather for Launch 26 Conference

    A two-day creative industry featuring thousands of photographers, videographers, content creators, and creative entrepreneurs from across Africa and the global diaspora was held recently.

    Oluseyi Adegeye Magic, founder of RareMagic Academy, convened the gathering tagged: Launch 26 Conference.

    The conference, held on January 26 and 27, 2026, was designed to equip creatives with the skills, structure, and mindset required to move from talent-driven practice to sustainable creative businesses.

    Day One, a specialised masterclass focused on Photography, Videography, and Content Creation, took place in Ikeja, Lagos. The session recorded over 300 onsite participants, with many more joining virtually from different parts of Africa.

    The Grand Finale, which was also held in Lagos on January 27 witnessed an even larger turnout, with over 1,500 participants onsite and thousands more joining online from across the globe.

    The conference featured notable industry leaders and thought drivers, including Mr. Kola Oshalusi, Emmanuel Oyeleke, Henry Oji (Big H), Kelechi Amadi, amongst others and the Special Assistant to the President of the Federal Republic of Nigeria on Art, Culture, and the Creative Economy, Mr. Ayo Adeagbo.

    Speaking at the event, Mr. Ayo Adeagbo emphasised the importance of structure and governance in the creative economy, urging creators to think beyond talent and begin to see their work as capital that must be properly managed to thrive in today’s economy.

    Participants praised the conference for its depth, organisation, and access to industry leaders. Dennis Temituro, a participant from Ghana, described Launch 26 as “epic,” noting that it made a strong statement for creatives who inspire other creatives.

    According to him, “The organisers outdid themselves by bringing seasoned creators off the shelves and making them accessible to the next generation. That alone is powerful.”

    Another participant, Simeon Keys Photography, commended the organisers for delivering on their promises to VIP attendees, particularly the exclusive lounge access to speakers.

    “The VIP experience allowed me to connect directly with speakers, exchange contacts, and have meaningful conversations. That level of access is rare and extremely valuable,” he said.

    With its impressive turnout, strong lineup of speakers, and focus on practical growth for creatives, Launch 26 has further positioned Oluseyi Adegeye Magic as a leading voice in Africa’s evolving creative education and business ecosystem.

  • Standard Chartered’s sixth Women in Tech Cohort target food security, health

    Standard Chartered’s sixth Women in Tech Cohort target food security, health

    The sixth cohort of Standard Chartered Women in Tech Nigeria Accelerator delivered in partnership with Village Capital and Enterprise Development Centre represents a departure from typical tech investment trends. While much of Africa’s startup ecosystem gravitates toward artificial intelligence features and fintech payments, these 12 entrepreneurs are tackling the fundamental challenges that have long hindered the continent’s progress: food security, healthcare access, financial exclusion, and education gaps. This is infrastructure for a functioning society, built by 12 female entrepreneurs who are solving some of the continent’s most pressing challenges.

    Securing Food and Energy

    In agriculture, Chinwendu Nweke is building Bridge Merchant, a revolutionizing supply chains to reduce post-harvest losses that cost Nigerian farmers billions annually.

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    Meanwhile, Ogheneosivwime Jehwe’s Mimshack Anointed powers rural communities and businesses with solar energy solutions, providing the electricity backbone essential for development.

    A Healthcare Safety Net

    The healthtech founders are improving access to care in practical ways. Blessing Aniefiok’s Dynalimb Technologies produces affordable prosthetics, helping amputees regain mobility. Kemi Olakunle’s HealthVest uses AI and savings wallets to make healthcare more affordable. Esther Eruchie’s FriendnPal provides mental health support in communities where these services are limited or stigmatized, while Sarah Andino’s Talktu offers speech therapy for children who might otherwise miss early intervention.

    Digitizing the Informal Economy

    In finance and commerce, Olapeju Nwanganga’s Ploutos Page is bringing Nigeria’s vast informal economy dominated by market women and small traders into the digital age. Linda Ekweogu’s TradeTracka builds trust mechanisms into e-commerce platforms, while Lilian Dike’s Spyce Social applies HR expertise to foster professional and personal connections that strengthen business networks.

    Systemic Change, Not Luxury Apps

    What unites these entrepreneurs is their focus on systemic change. They are not building luxury applications for Nigeria’s urban elite in suburban areas. Instead, they are designing platforms that serve smallholder farmers, amputees, market women, and students struggling to access quality education. Their technologies are engines of inclusion, designed to integrate millions of Nigerians into the formal, thriving economy.

  • Ezeobi emerges The Sun industrialist of the Year

    Ezeobi emerges The Sun industrialist of the Year

    Chairman of Zobis Cables Limited, Chief John Ezeobi, has emerged The Sun Industrialist of the Year 2025 at an award ceremony held on Saturday, January 31, 2026, at the Expo Convention Centre, Eko Hotels and Suites, Victoria Island, Lagos.

    The event attracted prominent Nigerians from the political, business and traditional institutions, who gathered to celebrate individuals recognised for outstanding contributions to national development.

    Ezeobi, who was accompanied by his wife, friends and business associates, received the award in recognition of his contributions to Nigeria’s electrical engineering sector and industrial growth through Zobis Cables Limited, a company noted for quality standards, technological innovation and job creation.

    The ceremony was chaired by the Chairman of Air Peace Airlines, Chief Barr. Onyema Allen, and anchored by Prof. Obiora Okonkwo, Chairman of New Nigeria Airlines. It was attended by representatives of the President of the Nigerian Senate, Godswill Akpabio, the Deputy Senate President, Senator Jibrin Barau, as well as Governors Peter Mbah of Enugu State, Dauda Lawal of Zamfara State, Abba Kabir Yusuf of Kano State, Bassey Otu of Cross River State and Dapo Abiodun of Ogun State, alongside ministers, diplomats, traditional rulers and leading industrialists.

    While the awards night celebrated achievers across governance, entrepreneurship, public service and culture, Ezeobi’s recognition was highlighted as a testament to industrial vision, innovation and economic impact.

    Speaking after receiving the award, Ezeobi described it as a call to greater responsibility, saying, “An award is not merely recognition, it is a responsibility, to lead, to innovate, and to contribute meaningfully to the nation’s progress.”

    Other award recipients included High Chief Duru Mike Ejiogu, Chairman of Citygate Group, who received The Sun Entrepreneur of the Year Award for his contributions to real estate development. High Chief Peter Chibuike Orogwu, founder of Chuby-Zion Nigeria Ltd., was also recognised for entrepreneurial excellence.

    In public service, the Managing Director and Chief Executive Officer of the Federal Road Maintenance Agency (FERMA), Dr. Emeka Agbasi, and Prof. Stella Ifeanyi Smith, Director of Research at the Nigerian Institute of Medical Research, received Public Service Personality Awards. In the hospitality sector, Mr. Paul Onwuanibe of Landmark Africa Group and Chief Livinus Anigbogu of AG Lexon Nigeria Limited were honoured with Hospitality Icon Awards.

    Actor and public speaker Kenneth Okonkwo was recognised as Nollywood Icon, while Mrs. Onyeka Michael-Ugwu, founder of Hello Perfect, and Mr. Tunde Onakoya, founder of Chess in Slum Africa, received Young Achievers Awards.

    Leadership and political awards were also presented to Governor Peter Mbah of Enugu State and Senator Solomon Adeola of Ogun West, who were named Men of the Year. Lifetime Achievement Awards went to Oba Rashidi Ladoja, the Olubadan of Ibadanland; Bishop Mike Okonkwo; Senator Enyinnaya Abaribe; Alhaji Buba Galadima; and Chief Simeon Eyisi. The Most Outstanding Royal Father of the Year award was presented to HRH Igwe Kenneth Orizu III, the Igwe of Nnewi Kingdom, while humanitarian honours went to Senator Jibrin Barau and Chief Obioma Success Akagburuonye.

    Commenting on the award, Chairman of Mekens Integrated Nigeria Ltd., High Chief Dr. Amb. Anthony Ikenna Obele, said, “the award is well deserved and quite befitting of an industrial giant. To the 7 Star General: John Ezeobi emerged not only as an award-winning industrialist but as a beacon for Nigerian manufacturing, a reminder that vision, perseverance, and innovation remain the bedrock of national progress.”

    The ceremony was broadcast live and streamed nationwide.

  • Secrets of my business empire, by serial investor Tancredi

    Secrets of my business empire, by serial investor Tancredi

    Serial investor and businessman, Miz Mzwakhe Tancredi, has attributed the growth of his business conglomerate to discipline, faith and consistency. 

    “Discipline keeps you focused, faith keeps you grounded, and consistency is what turns vision into reality, Without these three, it is difficult to build anything that lasts,” he said.

    Known primarily for his work in ministry, Miz Mzwakhe Tancredi is emerging as one of a new generation of South African entrepreneurs blending faith, business and social influence. 

    He believes spirituality and enterprise are not mutually exclusive.

    “Faith does not replace hard work; it strengthens it. When you combine uprightness, diligence and belief, business becomes purposeful, not just profitable,” the entreprenuer stated.

    Tancredi has built a wide-ranging business portfolio that cuts across several strategic sectors of the economy, driven by a philosophy of long-term value creation rather than quick returns.

    At the core of his commercial interests is real estate. 

    An active property investor with holdings across South Africa and interests beyond the country’s borders, Miz Mzwakhe Tancredi adopts a patient, asset-focused approach.

    “Real estate teaches patience and discipline,” he explained. 

    “My focus has always been on building assets that preserve wealth over time rather than chasing short-term gains.”

    His business activities extend into agriculture, where he is involved in farming operations that support local agribusiness value chains, reflecting his interest in food security and sustainable enterprise.

    He also runs a luxury car rental service catering to corporate executives, ministers and other high-profile clients, with a fleet featuring premium brands such as Mercedes-Benz, Bentley, Ferrari, Lamborghini and Maybach.

    The entrepreneur has further expanded into logistics, owning trucks leased to mining contractors, while also operating car wash businesses across four provinces, blending large-scale investments with consumer-facing ventures.

     Tancredi’s net worth is not publicly disclosed, independent estimates place it between $5 million and $10 million, highlighting his growing influence within South Africa’s entrepreneurial landscape.

  • Firm challenges court ruling on over N1b Customs duty

    Firm challenges court ruling on over N1b Customs duty

    Orlean Invest Africa Limited has formally appealed the judgment of the Federal High Court in Abuja that ordered the seizure and forfeiture of a Bombardier BD-700 Global 6000 aircraft, based on the the acceptance of the Customs Duty Assessment of over N1 billion , saying the trial court presumed the figure to be correct without any evidential foundation.

    The company insists that the decision was reached without evidence and amounts to a serious miscarriage of justice.

    The firm argues that the interim order was granted on the basis of bare and unsubstantiated claims by the Nigeria Customs Service (NCS), and that the order was obtained through misrepresentation or concealment of material facts.

    The company maintains that compelling legal and factual reasons to discharge the order were placed before the court but were wrongly ignored

    The company has filed for a stay of execution of the Federal High Court judgment.

    The notice of appeal, it was learnt, was filed on 23 January 2026 by the company’s lead counsel, Mr. Ama Etuwewe (SAN), a day after the Federal High Court delivered its ruling.

    The appeal, now before the Court of Appeal, sets out seven grounds challenging both the factual findings and legal conclusions of the trial court.

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    At the heart of Orlean Invest Africa’s appeal is the argument that the Federal High Court wrongly concluded that the aircraft was imported into Nigeria by the company and remained in the country without payment of customs duties.

    The appellants maintain that there was no evidence whatsoever before the court to support such a finding. They contend that the aircraft does not belong to Orlean Invest Africa Limited and that no proof was presented to establish ownership or importation by the company.

    According to the appeal, the aircraft was flown into Nigeria strictly on a charter basis as a visiting aircraft and never remained permanently in the country.

    The company further argues that the aircraft has at all times been registered on the Malta Aircraft Registry and was never transferred to Nigerian registration. It insists that unchallenged evidence before the trial court showed that the aircraft last entered Nigeria in 2018, contradicting the court’s conclusion that it was imported and remained in Nigeria.

     Orlean Invest Africa says the judge substituted speculation for proof and delivered a decision unsupported by the record.

    The appellants also challenge the order of final forfeiture, arguing that there was no evidence before the Federal High Court to justify condemning the aircraft to the Federal Government. They insist that the trial judge wrongly held them liable for customs duty on an aircraft they neither own nor imported, and that no law or evidence supports such liability.

    A further ground of appeal contests the refusal of the trial court to set aside the ex-parte order of seizure and detention made in June 2025.

    Orlean Invest Africa argues that the interim order was granted on the basis of bare and unsubstantiated claims by the Nigeria Customs Service, and that the order was obtained through misrepresentation or concealment of material facts. The company maintains that compelling legal and factual reasons to discharge the order were placed before the court but were wrongly ignored.

    The appeal also challenges the acceptance of the customs duty assessment of over one billion naira, saying the trial court presumed the figure to be correct without any evidential foundation. In addition, Orlean Invest Africa contends that the trial judge wrongly held that the Nigeria Customs Service proved its case, despite what it describes as a complete absence of supporting evidence.

    The company states that the entire judgement is against the weight of evidence presented during proceedings at the Federal High Court.

    The firm is therefore seeking an order of the Court of Appeal allowing the appeal, setting aside the Federal High Court’s judgement delivered on 22 January 2026, and dismissing in full the Nigeria Customs Service’s application for forfeiture and condemnation of the aircraft.

  • Green Africa, Access Bank partner on aircraft acquisition

    Green Africa, Access Bank partner on aircraft acquisition

    Green Africa Airways has unveiled the acquisition of its second owned aircraft packaged with asset financing partnership with Access Bank

    The incoming aircraft, an ATR 72-600 with manufacturer’s serial number 1064 and registration mark 5N-GAC, according a statement by the carrier will help it increase capacity on its existing routes across the country.

    The aircraft, the airline said is expected to enter into service shortly after customary regulatory approvals.

    The statement reads:” As with the carrier’s first aircraft acquisition, Access Bank, one of the largest financial institutions on the continent, provided the naira debt facility to partly fund this strategic fleet expansion.”

    Founder & CEO of Green Africa, Babawande Afolabi, said: “We are delighted to welcome our second owned aircraft (5N-GAC) to the fleet.

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    The addition of 5N-GAC will help strengthen a sustainable foundation for Green Africa to grow and deliver on its promise to provide safe, reliable, and affordable air travel to a broader group of customers in the country and across the continent at scale.”

    Managing Director/CEO of Access Bank, Roosevelt Ogbonna, said: “At Access Bank, we are committed to empowering businesses that drive economic progress and create long-term value for society. Our partnership with Green Africa reflects our confidence in visionary enterprises that are transforming critical sectors of the economy. Following the strong performance of Green Africa’s first aircraft acquisition, we are proud to extend our support for this second aircraft, which will further enhance capacity and accelerate growth. We remain steadfast in our mission to provide innovative financial solutions that enable businesses to scale, thrive, and contribute meaningfully to Africa’s development.”

  • Committee backs Customs 40% clearance time

    Committee backs Customs 40% clearance time

    The Customs Consultative Committee (CCC) has backed the Nigeria Customs Service (NCS) as it moves to cut cargo clearance time at the ports by 40 per cent, a reform driven by digital integration and projected to unlock up to N3 trillion in annual cost savings for the economy.

    The CCC threw its weight behind the initiative, describing it as a data-driven shift that could reposition the country’s ports within global supply chains, reduce demurrage losses and hardwire efficiency into customs administration through deeper digital integration.

    The support follows the recent unveiling of the Time Release Study (TRS) by Comptroller-General of Customs, Adewale Adeniyi, at the 2026 World Customs Day celebration on January 26.

    The study, conducted at Tin Can Island Port with technical backing from the World Customs Organisation (WCO), quantified how coordinated reforms across agencies could dramatically shorten cargo dwell time.

    Speaking in an interview, CCC’s Secretary Dr Eugene Nweke, said the findings mark a transition point for Nigeria’s trade ecosystem—from merely measuring delays to converting data into economic impact.

    “In an era where competitiveness is measured in hours, not intentions, the TRS positions the NCS as a modern customs administration capable of diagnosing bottlenecks with precision,” he said.

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    The TRS, a globally recognised customs performance tool, measures how long it takes cargo to move from arrival to final release at ports and border points. According to the Tin Can Island findings, harmonised digital processes and stronger inter-agency coordination alone could deliver a 40 per cent reduction in clearance time, freeing capital trapped in delays and improving supply-chain predictability.

    Nweke cautioned, however, that the study must not be misinterpreted as an indictment of institutions.

    “For the NCS to achieve its reforms, the TRS should be seen as a diagnostic tool, not a fault-finding exercise; and a source of process intelligence, not institutional blame,” he said.

    From a maritime business perspective, the implications extend beyond customs operations. Faster cargo turnaround, he said, directly influences vessel scheduling, terminal productivity, freight rates and Nigeria’s attractiveness as a trans-shipment and destination market in West and Central Africa.

    According to Nweke, the TRS aligns squarely with Adeniyi’s reform pillars, particularly trade facilitation and port efficiency.

    “It does that by identifying systemic dwell-time drivers, ease of doing business through measurable improvement indicators, alongside integrity and transparency by reducing discretionary bottlenecks,” he said.

    He added that the real value of the study lies not in the data itself but in the institutional response it triggers—policy refinement, process simplification, automation optimisation and structured stakeholder compliance education.

    “Without this bridge, even the best data becomes a missed opportunity,” Nweke said.

    The CCC also argued that embedding TRS benchmarks into management scorecards and key performance indicators could strengthen revenue performance, accountability and reporting to oversight bodies, including the Presidency, the Ministry of Finance and international development partners.

    “The WCO-endorsed TRS is not an end in itself. It is a strategic national asset. When leadership drives the response and collaboration is structured rather than noisy, measurement translates into progress,” Nweke said.

    He added: “As Nigeria deepens its trade facilitation and port efficiency reforms, the message is clear that measurement creates clarity and leadership turns clarity into progress.”

    At the unveiling, Adeniyi described the TRS as a cornerstone of Customs’ modernisation agenda, aimed at making Nigeria’s trade gateways “secure, efficient, predictable and globally competitive.”

    He said the service would institutionalise the TRS as a continuous diagnostic tool rather than a one-off exercise, signalling a long-term commitment to evidence-based reform in port operations.

    For shipping lines, terminal operators and cargo owners, the success of the 40 per cent clearance-time cut could mark the difference between the country remaining a high-cost port environment, or emerging as a regional logistics hub with measurable efficiency gains.

  • Why govt’s refineries are not working, by Ojulari

    Why govt’s refineries are not working, by Ojulari

    The Group Chief Executive Officer, Nigerian National Petroleum Company Limited (NNPC Ltd), Bayo Ojulari, yesterday said operations of the government-owned refineries had to be stopped after it was glaring that continuing to operate the facilities was destroying value and draining public resources.

    The NNPC boss, while speaking at a fireside chat at the Nigeria International Energy Summit (NIES), said after an internal review by the NNPC, it discovered that continuing to run the refineries amounted to monumental losses, low utilisation rates and the absence of a credible path to profitability, despite huge financial commitments sunk into them; hence the decision to shut down the refineries temporarily.

    “There’s no way in NNPC, with the structure we are in, we can run it positively. We don’t have the capacity right now. We need to bring in additional capacity to complement what we have,” Ojulari said.

    He blamed the state of the facilities on a fundamental flaw in the operational model which placed excessive focus on financing and engineering, procurement and construction (EPC), while neglecting long-term operational excellence.

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    “To make a refinery work, you need three things: financing, a competent EPC contractor, and world-class operational capacity. Unfortunately, we focused on the first two and ignored the third,” Ojulari explained.

    He explained that financiers and EPC contractors are paid and exit, while the refinery must be operated for 20 to 50 years — a responsibility that NNPC was not adequately equipped to handle on its own.

    “The system was designed for everyone to take from it, not to put anything into it,” he said.

    According to him, crude oil cargoes were supplied regularly to the refineries, but utilisation hovered between 50 and 55 per cent, while operating and contractor costs continued to rise. Yet, the refined products coming out were often of lower value compared to the crude fed into the system.

    “At the end of the day, we were leaking value with no clear line in sight on how losses would turn into profits,” he said.

    The NNPC boss disclosed that it is no longer looking for contractors to run its refineries but experienced global operators with proven track records. This, he noted informed the NNPC’s Board to take a major decision to “stop the rot” by halting refinery operations and conducting a comprehensive review.

    Admitting political pressure to keep the refineries running was intense, Ojulari said the firm insisted on applying strict commercial logic.

    He disclosed that the commencement of operations by the Dangote Refinery provided critical breathing space which has allowed the NNPC to reassess its assets and pursue a more sustainable strategy.

    “Whether you love Dangote or not, thank God it is a Nigerian refinery, built in Nigeria and working in Nigeria,” he said, adding that NNPC is also a shareholder in the Dangote refinery.

    For now, investors have continued to show interest in the refineries. “They are visiting one of the refineries as we speak, one of them is a major Chinese company with one of the largest petrochemical plants in China and there are a few other companies as well. Negotiations on equity size are still ongoing; I won’t tell you more than that for now.

    “What matters to us is not just that the refinery works; but it must work sustainably. We are not selling Nigeria, but we are open to selling some equity, as much as required, to secure sustainability.

    “Our solution is to put a sustainable structure in place, one where the refinery can finance itself and run like a proper business,” he concluded.