Category: Featured

• We lost 200,000 bpd, 1.2 megawatts of power generation to PENGASSAN’s action
• ‘Why Dangote Refinery must be protected’

The Federal Government came hard on Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) yesterday over last month’s strike during their faceoff with Dangote Refinery and Petrochemicals (DRP).

“We cannot hold the whole nation to ransom because of issues that we can amicably settle across the table,” President Bola Ahmed Tinubu said.

It was his first reaction to the situation during which the union disconnected the gas supply to the refinery in addition to limiting the pumping of crude to export terminals, an action likened to economic sabotage.

The President spoke yesterday at the Nigeria Economic Summit Group (NESG) event in Abuja.

He was represented by Vice President Kashim Shettima.

He called for patriotism and caution, urging union leaders to maintain sensitivity to national security during their free agitations for industrial welfare.

Also yesterday, the Group Chief Executive Officer (CEO) of Nigeria National Petroleum Company Limited (NNPCL), Bayo Ojulari, recalled the huge loss incurred by the country in the few days the strike lasted.

In Lagos, the scarcity of cooking gas surfaced over the weekend, with residents searching for the product across the metropolis.

The few places where the product was available witnessed long queues, and the price was hiked.

The scarcity was attributed to the effect of the PENGASSAN strike.

Describing the $20 billion privately-owned refinery as a national asset that should be supported to function, President Tinubu said the nation should jealously protect, promote, and preserve the facility in the national interest. 

President Tinubu emphasised the importance of industrial harmony in the sensitive sector while declaring open the 31st NESG in Abuja.

Its theme was: “The reform imperative: building a prosperous and inclusive Nigeria by 2030.”

At the summit were the Minister of Budget and Economic Planning, Senator Atiku Bagudu, and other senior government officials.

The President said any threat to the 650,000-barrel-per-day Dangote Refinery should be viewed as a national sabotage.

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The PENGASSAN/Dangote Refinery rift provoked anxiety nationwide about a looming fuel scarcity that had become a thing of the past since it commenced operation.

Ojulari said 200,000 barrels were lost to the union strike daily.

He also lamented that the company experienced deferred gas output during the dispute.

Ojulari, who briefed the President at his private residence in Lagos, however, said Nigeria would hit 1.8m bpd oil production by December.

Nigeria will protect every investment, says President

The President said his administration would protect every investment, warning that nothing must be allowed to disrupt the operations of the $20 billion facility.

President Tinubu described the Dangote Group President, Alhaji Aliko Dangote, as “not just an individual, but an institution”.

He urged labour unions to exercise restraint and seek peaceful dialogue in addressing industrial issues involving the refinery.

The President explained that the refinery, which was financed through a mix of equity, debt, and local and foreign bank loans, should remain operational to meet its financial obligations and sustain national economic stability.

He said: “The refinery has to function to service the debt. We cannot hold the whole nation to ransom because of issues that we can amicably settle across the table.”

President Tinubu said Dangote’s decision to invest massively in Nigeria, rather than abroad, was an act of faith in the country’s future.

He stressed: “If he had invested $10 billion in Microsoft, Amazon, or Google, he might be worth $70 to $80 billion today.

“But he chose to invest in Nigeria, and we owe it to future generations to promote, preserve, and protect the interests of this very Nigerian.”

The President called for “caution, introspection, and a sense of accountability from all the organised and independent private sector players” to maintain industrial peace and a sustainable investment climate.

He added: “It’s not about holding the gold medal for ransom. Nigeria is greater than PENGASSAN; Nigeria is greater than each and every one of us.

“I’m not speaking as a partisan but as a Nigerian in search of solutions to our national challenges.”

The President urged the NESG to come up with policies that can resolve industrial disputes and prevent future disruptions in the sector.

Turning to broader economic issues, the President assured that Nigeria will overcome its current economic challenges through industrialisation, infrastructure development, and human-centred policies.

“As Nigerians, we are not condemned to low growth, high costs, and low trust. We will stabilise. We will industrialise. We will humanise our economy. We will stabilise prices and currency, and we will industrialise through power, logistics, and technology.”

The President said his administration has created pathways for the youth to access grants, loans, and equity investments of up to $100,000 to grow their enterprises, innovate, and build sustainable livelihoods.

He also announced a N200 billion intervention fund to support micro, small, and medium enterprises (MSMEs) and manufacturers in overcoming structural challenges and enhancing competitiveness.

He said: “Our expansion of digital micro-loan access has improved financial inclusion, empowered small businesses, and stimulated community-level productivity.”

On fiscal policy, the President said the newly signed Tax Reform Act—which introduced the Nigeria Tax Administration Act, the Nigeria Revenue Service Establishment Act, and the Joint Revenue Board Establishment Act—marked a major recalibration of the nation’s tax architecture.

“These reforms will boost domestic revenue mobilisation, reduce dependence on oil, and simplify compliance,” he said.

“They protect low-income earners, ensure fairness in corporate taxation, and strengthen digital innovation in tax administration.”

Ojulari: Production hit 1.68 tr last month

The NNPCL boss lamented the PENGASSAN and the Dangote Refinery faceoff.

He said: “It was quite unfortunate that the Dangote and PENGASSAN issue led to the strike.

“As you know, whenever critical staff manning key facilities are unavailable, operations are disrupted.

“We actually lost significant production of over 200,000 barrels per day and also experienced deferred gas output, while about 1.2 megawatts of power generation were affected.”

Ojulari commended the Federal Government for swiftly intervening through the Minister of Labour and Employment, Dingyadi, and the National Security Adviser (NSA), Nuhu Ribadu, who brokered peace.

He said: “Everyone was brought to the table, and a communiqué was agreed upon on the way forward. We are very hopeful that all parties will abide by it.”

On the recent gas price spikes, Ojulari attributed the rise to temporary supply chain disruptions during the strike.

He added: “The increase you saw was relatively artificial. For the period of the strike, loading and movement were delayed by about two or three days, and that created a temporary scarcity.

“Some marketers exploited the situation to raise prices. Now that things are back to normal, prices should return to what they were before the strike.”

Ojulari said that Nigeria’s crude oil production would reach 1.8 million barrels per day (bpd) before the end of the year, following months of consistent growth and strategic maintenance interventions across production facilities.

He said production hit 1.68 million barrels per day in September—the highest level in about five years—while gas output also reached a record seven billion cubic feet (BCF) per day.

Ojulari said: “With the turnaround maintenance completed in August and September now coming back onstream, we expect that before the end of the year, we should be clocking at least 1.8 million barrels per day, all things being equal.”

He noted that the achievement aligned with the President’s directive to ramp up production to at least two million barrels per day by 2027 and three million barrels by 2030 under the Renewed Hope energy roadmap.

Reforms should yield gains, says Yusuf

Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, who lent his voice to the dark side of the labour dispute, said in a statement that sensitive investments should be protected.

Yusuf enjoined the government to come up with a policy framework to prevent the unlawful shutdown of businesses in the country.

He said a policy to protect investors is a national economic imperative, adding: “Investors mobilise capital, create jobs, and generate the tax revenues that sustain government and society.

“Without them, there can be no sustained growth, no employment, and no national prosperity.

“Nigeria must, therefore, urgently institutionalise a fair, secure, and predictable business environment that protects those who take risks to create wealth.

“This is not about weakening labour unions but about balancing rights and responsibilities to foster sustainable economic growth, social stability, and national security.”

Protesters ask Tinubu to crush saboteurs

In Kaduna, Protesters under the aegis of ‘Partners for National Economic Progress (PANEP) yesterday urged President Tinubu to halt the activities of those trying to sabotage efforts to achieve local refining of petroleum products.

The protesters, who converged on the Murtala Mohammed Square before marching through major streets of the city, accused an unnamed oil cartel of frustrating and undermining local refinery initiatives, particularly the Dangote Refinery.

Chanting solidarity songs and displaying placards with inscriptions such as “Support Local Refining,” “Crush Economic Saboteurs,” and “Protect Dangote Refinery,” the protesters said Nigeria should be liberated from economic manipulation.

Their leaders, Comrade Igwe Ude-Umanta and Comrade Dahiru Umar Maishanu, said the call on the President was necessary to save Nigeria from a cartel that has thrived on importation and fuel scarcity at the expense of national development.

• Extension of budget to end by 2027

Allocation to states have increased by over 111 per cent, Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun said yesterday.

He said: “States are now awash with cash”, adding that the additional funds empower states to drive growth and service delivery at the sub-national level.

Speaking during a session titled: “The Reform Imperative: Building a Prosperous and Inclusive Nigeria by 2030” at the ongoing 31st Nigerian Economic Summit (#NES31) in Abuja, Edun identified exchange rate unification and fuel subsidy removal as the most significant reforms, freeing up about five per cent of Nigeria’s GDP into the Federation Account.

The minister said the government had reached an agreement with the National Assembly to ensure timely budget execution and restore adherence to the normal fiscal calendar.

He said: “No more extensions of budget into the next year, which has created so much confusion in the system.

“We have talked to the National Assembly and agreed to restore normalcy in that space.”

The minister explained that consistent and disciplined budget implementation is key to transparency, better project delivery, and credible public expenditure tracking.

Budgets 2024 and 2025 are simultaneously running and there is the likelihood of the extension of Budget 2025 till 2026 given the late commencement of its implementation.

On debt management, Edun said the government is adopting a new borrowing mix to reduce exposure to Eurobonds and other external loans.

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“The government will make greater use of Sukuk, green bonds, and diaspora bonds instead of Eurobonds,” he said.

He noted that this strategy would expand domestic investment participation while aligning debt issuance with Nigeria’s sustainable development goals.

Edun also said that fiscal transparency has significantly improved, revealing that “it was not until August 1 this year that the Federal Government had full visibility of its accounts with the Central Bank of Nigeria (CBN).”

He added: “We are determined to bring all Federal Government funds into visibility. There is a lot of government money lying outside the CBN.”

To strengthen financial accountability, Edun said a new federal billing system had been launched to track payments for goods and services.

The system, he said, ensures that every transaction is traceable and accurately captured.

On inflation, the minister said government interventions began with deliberate fiscal policy adjustments and smarter spending priorities.

DMO: Focus on revenue, not just debt size

Director-General of the Debt Management Office (DMO), Ms. Patience Oniha, said that Nigeria’s public debt level remains sustainable, stressing that the real challenge lies in revenue generation, not debt accumulation.

“When people talk about Nigeria’s debt-to-GDP ratio, they often forget that the international benchmark for countries like ours is about 70 per cent,” she explained.

“At 40 per cent, Nigeria remains below that threshold.”

Ms Oniha noted that the critical issue is the debt service-to-revenue ratio, which determines how much of the nation’s income goes into paying debts.

“If a large portion of revenue goes to debt service, less will be left for development projects,” she said.

Ms Oniha emphasised that raising revenue is the most effective way to manage debt sustainably.

“The focus should be on growing revenue so that the debt service-to-revenue ratio can be lower,” she said.

“When revenues rise significantly, the rate of borrowing will slow down, and the government can service debts conveniently while still funding critical projects.”

She added that all debt servicing provisions are integrated into the Medium-Term Expenditure Framework (MTEF) and the national budget, ensuring predictability and transparency in Nigeria’s debt strategy.

Both Edun and Ms Oniha agreed that ongoing fiscal reforms — including stronger revenue mobilisation, transparent spending, and disciplined borrowing — are crucial to achieving a stable and inclusive economy by 2030.

Bagudu: we will implement development plans

Bagudu said Nigeria’s next National Development Plan (NDP 2026–2030), guided by the Nigeria Agenda 2050, targets a $1 trillion GDP by 2030.

He said achieving this goal would require an average annual GDP growth rate of 8.78 percent, a 17.18 percent manufacturing contribution to GDP, and a 24.78 percent manufactured export share by 2030.

He said: “The process of developing the NDP 2026–2030 will be consultative, participatory, and inclusive. We will involve the private sector, state and local governments, political parties, civil society organizations, labour unions, and other key stakeholders.”

The minister explained that the Renewed Hope Ward-Based Development Programme would be one of the key focus areas of the summit.

He described it as “an ambitious, people-centred initiative designed to uplift economically active citizens and ensure that ordinary Nigerians, particularly those at the grassroots, directly feel the positive impact of government reforms.”

Fed Govt mobilising 49% of $2b fibre optic investment

Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijjani, said that the Federal Government is mobilising 49 per cent of Nigeria’s $2 billion fibre optic network project to deepen broadband access nationwide.

Speaking at a session hosted by IHS Towers, Tijjani said the project will connect every state, local government, and ward with fibre infrastructure.

“For Nigerians to have connectivity, we must invest in fibre optic networks, which will cost about $2 billion,” he said. “Government is bringing 49 per cent, and the private sector will provide the rest.”

Tijjani said improving broadband access could raise national GDP by 2.5 per cent for every 10 per cent increase in connectivity.

He noted that 11 states have already eliminated Right of Way (RoW) charges, facilitating faster deployment.

Beyond broadband, Tijjani said the government is integrating Artificial Intelligence (AI) and innovation policies to position Nigeria as a digital hub.

IHS Nigeria CEO Mohamad Darwish added that bridging the digital divide will require “massive investments in broadband coverage, innovation, and talent.”

He stressed that public-private partnerships and digital literacy programs are essential to “unlock productivity, drive growth, and position Nigeria as a future-ready economy.”

NESG urges focus on job creation

NESG Chairman Niyi Yusuf advised that Nigeria’s next phase of reform must focus on job creation, productivity, and inclusive growth.

“The challenge before us is to move decisively into the consolidation phase, embedding reforms in ways that drive jobs, growth, and inclusion, while simultaneously laying the foundations for long-term transformation that secures prosperity for every Nigerian,” Yusuf said.

He stated that while past policies had concentrated on macroeconomic stabilisation, the time has come to translate those efforts into sustained job creation and real improvements in living standards.

NESG advised that Nigeria needed to create at least 4.5 million jobs annually for five years to curtail rising unemployment.

The group, in a report titled: “From Hustle to Decent Work: Unlocking Jobs and Productivity for Economic Transformation in Nigeria,” stated that the nation’s working-age population could expand to 168 million within the decade.

It warned that without decisive action, unemployment and underemployment could double by the end of the decade, trapping millions of Nigerians in low-skilled, low-paying, and vulnerable work.

According to the NESG, the future of Nigeria’s workforce depends on how quickly the country can move from a “hustle economy” dominated by informal activities to one that delivers decent and productive employment.

NESG Senior Economist Wilson Erumebor, who presented the report, said the job crisis in the country has gone beyond employment numbers to a fundamental development challenge.

“This is not just a labour market issue; it is a huge development challenge. Without decisive reforms to create decent and productive jobs, an entire generation risks being trapped in vulnerable work that neither lifts families out of poverty nor moves the nation forward,” he warned.

“The weak private sector capacity and reliance on the government for wage employment in some states have left millions of Nigerians with the option of finding work in the informal economy,” he said.

“The informal sector has become the default employer, absorbing a significant share of the country’s workforce.”