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FG working against local refineries, operators cry out

Published

2 years ago

July 21, 2024

FG working against local refineries, operators cry out

Some local refinery operators have lamented that the announcement made by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, stating that the Federal Government would continue to import fuel, shows that the government had taken sides against local refineries.

The operators, under the aegis of the Crude Oil Refiners Association of Nigeria, expressed worry over the recent widely circulated interview of the Chief Executive Officer of NMDPRA, Ahmed Farouk, who was quoted as having described locally produced diesel as ‘inferior’ to imported ones.

It was also reported on Friday that the Federal Government, through the NMDPRA, declared that the importation of refined petroleum products into Nigeria was going to continue alongside the production of commodities by the Dangote Petroleum Refinery to prevent monopoly and ensure energy security.

The government had also warned against being over-dependent on the $20bn refinery located in the Lekki Free Zone in Lagos, stressing that the demand by the refinery that all oil marketers should buy products from the plant does not support competition.

Farouk, who had disclosed this in an interview with journalists in Port Harcourt, the Rivers State capital, was said to have stated that the diesel produced by some local refineries was inferior to the ones imported into Nigeria, a development that perturbed local refiners.

Reacting to the position of the regulator, through their umbrella body, the indigenous crude oil refiners declared that the government had taken sides against local refineries.

The Publicity Secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, said, “We are worried that the Chief Executive of NMDPRA would make such categorical statements, suggesting strongly that he is taking sides. So much so that he even ridicules his own agency’s processes when he refers to the petroleum products produced by refineries that his agency closely regulates as inferior, thereby undermining the country’s health and safety procedures. This has huge implications for the oil and gas industry, and energy security in Nigeria.”

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The NMDPRA boss had stated that Dangote Refinery had requested the regulator to stop giving import licences to other marketers so as to be the only fuel supplier in Nigeria.

“We cannot rely heavily on one refinery to feed the nation, because Dangote is requesting that we should suspend or stop the importation of all petroleum products, especially AGO, and direct all marketers to the refinery. That is not good for the nation in terms of energy security, and it is not good for the market because of monopoly,” Farouk stressed.

However, local refiners alleged that the views of the NMDPRA boss had shown that the efforts of indigenous refineries were being discredited by many detractors.

“In the last few days, we have had a barrage of misinformation thrown at the indigenous refineries, including Dangote, Aradel, Waltersmith, and our other members, from detractors and elements working against the country’s quest to achieve self-sufficiency in domestic petroleum refining. This is not completely surprising to us as we know the agenda to keep the country perpetually dependent on foreign oil merchants, and the desire to continue to pilfer the wealth of the country by a few greedy individuals is deep.

“It is, however, surprising, and we are indeed dismayed, that a person meant to regulate a sector appears to be taking a position against players in the industry he is supposed to be regulating and is misstating the facts,” Idoko stated.

He argued that about two years ago, the NMDPRA confirmed that the Dangote refinery was over 90 per cent completed, and wondered why the agency’s boss would declare that the plant had not been completed and was operating without a licence.

“From the two reports I shared with you, you can see Farouk contradicting the organisation he oversees in an obvious attempt to discredit the efforts of local refineries in the country. This struggle is not about an individual or a particular company. It is about the country and its survival. It is about the Nigerian citizenry. At this rate, we are truly worried about the ability of NMDPRA to provide a level playing field for all stakeholders going forward,” the indigenous refiners stated.

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The NMDPRA boss had, during the interview, revealed that the Dangote refinery, which had been selling diesel and aviation fuel in Nigeria for months, had not been licensed, stating that the plant was still at the pre-commissioning stage.

Also, the Executive Secretary of the Major Energy Marketers Association of Nigeria, Clement Isong, described the NMDPRA comments as clear and direct. Isong told our correspondent that the sector needs that kind of information from the regulator.

“Clear and direct! We need this open and direct communication from time to time from the regulator to help the public dissect the issues that so seriously concern them,” he stated.

No level-playing field – IPMAN

The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, Ukadike Chinedu, criticised the Nigerian National Petroleum Company Limited, International Oil Companies operating in Nigeria, and NMDPRA for allegedly frustrating indigenous refiners. He said the IOCs and NNPC were not supplying enough crude to the Dangote refinery and modular refineries, adding that the claims against indigenous refiners by NMDPRA were unnecessary.

“Those claims were unnecessary. We all know that these indigenous refiners are truly going through a lot, particularly with respect to accessing crude oil needed to produce refined products. So, they have a right to complain about this, knowing that Nigeria is a crude oil producer that exports this commodity to other refineries in foreign nations. You export the product, while your refineries are being starved. That’s not a good thing,” Ukadike stated.

FG working against local refineries, operators cry out

News

Power Firm to Hold Virtual Stakeholder Meeting on Rainy Season Electrical Safety

Published

1 hour ago

April 21, 2026

Trends Admin

Power Firm to Hold Virtual Stakeholder Meeting on Rainy Season Electrical Safety

A power distribution company has announced plans to hold its April Virtual Stakeholder Engagement aimed at educating customers on safety measures during the rainy season.

In a notice issued to customers, the company said the virtual session would focus on the dangers associated with exposed electrical wires, flooded installations, and the increased risk of electric shock that often accompanies heavy rainfall.

The engagement, scheduled for Thursday, April 23, 2026, from 11:00 a.m. to 1:00 p.m., will be held via Microsoft Teams, allowing participants to join remotely.

According to the company, the initiative is part of efforts to promote public safety and reduce electricity-related accidents during the rainy season, when infrastructure is more vulnerable and risks are heightened.

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Beyond safety concerns, the session will also provide practical tips to help customers navigate the season safely, including guidance on energy efficiency to reduce consumption and costs.

The company further disclosed that it would share updates on its waste-management support initiatives targeted at public schools, as part of its broader corporate social responsibility programmes.

Customers and other stakeholders are encouraged to participate in the session to gain valuable insights and contribute to discussions aimed at improving safety and sustainability in communities.

The company reiterated its commitment to customer welfare, urging the public to remain vigilant and adhere to recommended safety practices during the rainy season.

Power Firm to Hold Virtual Stakeholder Meeting on Rainy Season Electrical Safety

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NERC: Only 15 States Fully Regulating Electricity Markets Under New Law

Published

7 hours ago

April 21, 2026

Trends Admin

Nigerian Electricity Regulatory Commission (NERC)

NERC: Only 15 States Fully Regulating Electricity Markets Under New Law

Twenty-one states, including Rivers State and Kano State, have yet to assume full regulatory control of their electricity markets nearly three years after the enactment of the Electricity Act 2023, even as 15 states have successfully transitioned to independent electricity regulation under Nigeria’s decentralised power framework.

The Nigerian Electricity Regulatory Commission (NERC) confirmed that the 15 states that have completed the transition now operate their own electricity markets, handling tariff regulation, licensing, investment promotion, and consumer protection within their jurisdictions.

The reform is part of the broader implementation of the Electricity Act 2023, which decentralises Nigeria’s power sector by empowering states to regulate generation, transmission, and distribution within their territories after meeting legal and institutional requirements.

15 states now operating independent electricity markets

According to NERC, 15 states have fully completed the transition process and are now independently regulating their electricity sectors. These states include Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau, Abia, Nasarawa, Anambra, and Bayelsa.

The commission explained that the transition began in October 2024 with Enugu and Ekiti, followed shortly by Ondo. The process gained momentum in 2025, with states such as Lagos, Oyo, Ogun, and Edo completing their transitions. More recent entries include Nasarawa, Anambra, and Bayelsa in early 2026.

Under the new structure, these states now oversee intrastate electricity regulation, including issuing licenses, enforcing technical standards, setting local tariffs, and protecting electricity consumers.

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21 states yet to complete transition

However, 21 states are yet to complete the process of taking over regulatory control of their electricity markets. These include Adamawa, Akwa Ibom, Bauchi, Benue, Borno, Cross River, Delta, Ebonyi, Gombe, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kwara, Osun, Rivers, Sokoto, Taraba, Yobe, and Zamfara.

Energy experts say the delay could slow down the expected benefits of the Nigeria electricity sector reform, including improved power supply, localised tariff structures, and increased investment in mini-grids and embedded generation projects.

They also warn that uneven implementation could widen disparities in electricity access and investment across states.

What the Electricity Act 2023 provides

Under the Electricity Act 2023, once a state completes its transition, it establishes its own electricity regulatory commission responsible for overseeing all intra-state electricity operations.

The national regulator, NERC, retains oversight of interstate electricity trade and the national grid system.

State regulators are expected to drive local electricity market development by encouraging private investment, supporting renewable energy projects, and ensuring service quality standards across distribution networks.

However, NERC noted that some states that have declared transition still need to fully operationalise their regulatory institutions.

Federal government push for decentralisation

The Federal Government has repeatedly encouraged states to accelerate adoption of the reform, describing decentralisation as essential to solving Nigeria’s long-standing electricity challenges.

Minister of Power, Adebayo Adelabu, said Nigeria’s size and population make centralised electricity management ineffective.

He explained that the Electricity Act allows states to participate in all segments of the power sector value chain, including generation, transmission, distribution, and supporting services.

Adelabu also stressed the importance of collaboration between federal and state regulators to ensure alignment between wholesale and retail electricity markets.

He added that state participation is especially critical in off-grid electrification and rural power projects, where flexible local regulation can improve access and attract investment.

Outlook for Nigeria’s power reform

Stakeholders say the success of Nigeria’s electricity decentralisation reform will depend on how quickly the remaining 21 states establish functional regulatory frameworks and fully activate their electricity markets.

They warn that delays may limit investment inflows and slow down efforts to improve electricity supply reliability across the country.

Despite the uneven progress, the Electricity Act 2023 remains one of the most significant structural reforms in Nigeria’s power sector, aimed at creating a more competitive and efficient electricity market.

NERC: Only 15 States Fully Regulating Electricity Markets Under New Law

News

Naira Stabilises at ₦1,345/$ as FX Market Confidence Grows

Published

9 hours ago

April 21, 2026

Trends Admin

Naira Stabilises at ₦1,345/$ as FX Market Confidence Grows

The Nigerian Naira continued its steady run in the foreign exchange market on Tuesday, April 21, 2026, as early trading reflected growing confidence and sustained efforts to narrow the gap between official and parallel market rates.

At the official window, figures from the Nigerian Foreign Exchange Market (NFEM) showed the local currency trading at an average of ₦1,345.47 per dollar, marking a slight appreciation compared to the previous session. Intraday data indicated the Naira briefly strengthened to around ₦1,345.87/$, supported by stable demand and consistent interbank activity.

This performance highlights the impact of ongoing reforms by the Central Bank of Nigeria, which has focused on exchange rate transparency, liquidity management, and market-driven pricing. These policies are gradually restoring investor confidence and improving supply conditions in the official FX market.

Across the parallel market, the trend of relative calm persisted. In major trading hubs including Lagos, Port Harcourt, and Kano, the dollar traded between ₦1,390 and ₦1,405, reflecting a modest premium over the official rate.

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While the black market rate remains higher, the gap between both segments has continued to narrow, signaling progress toward exchange rate convergence. Compared to previous months marked by volatility and sharp swings, the current market environment is more stable, offering improved predictability for businesses and individuals relying on foreign exchange.

Analysts attribute the Naira’s resilience to stronger foreign exchange inflows, including increased participation from foreign portfolio investors, improved oil revenue receipts, and steady diaspora remittances. These factors have enhanced liquidity and reduced pressure on the local currency.

However, experts caution that external risks remain. The global strength of the US dollar and fluctuations in international oil prices could still influence Nigeria’s FX outlook in the near term.

For businesses and consumers, today’s Dollar to Naira exchange rate suggests a phase of consolidation, with fewer sharp fluctuations and more stability for financial planning. The current trajectory reinforces cautious optimism that Nigeria is moving toward a more unified and stable foreign exchange system.