Business
NNPC refineries may never work again – Dangote
NNPC refineries may never work again – Dangote
The President of Dangote Group, Aliko Dangote, has expressed deep skepticism over the possibility of Nigeria’s state-run refineries — located in Port Harcourt, Warri, and Kaduna — ever becoming operational again.
Speaking on Thursday during a visit by members of the Global CEO Africa delegation from the Lagos Business School to the Dangote Petroleum Refinery in Lekki, Lagos, the billionaire industrialist criticized the Nigerian National Petroleum Company Limited (NNPC) for failing to get the refineries working, despite significant financial investments.
According to Dangote, the government-run refineries have consumed approximately $18 billion with no tangible output. In contrast, he noted that his privately built 650,000-barrel-per-day refinery allocates more than half its capacity to producing Premium Motor Spirit (petrol), unlike the government-owned refineries which only managed about 22 per cent.
Dangote recounted the failed attempt to privatise the facilities during the administration of former President Olusegun Obasanjo, which was reversed under the leadership of the late President Umaru Musa Yar’Adua.
“The refineries that we bought before, which were owned by Nigeria, were doing about 22 per cent of PMS. We bought the refineries in January 2007. Then we had to return them to the government because there was a change of government,” he said.
“And the managing director at that time convinced Yar’adua that the refineries would work. They said they just gave them to us as a parting gift or so. And as of today, they have spent about $18bn on those refineries, and they are still not working. And I don’t think, and I doubt very much if they will work,” he added.
He likened the ongoing efforts to revive the outdated refineries to attempting to modernize a decades-old automobile with new technology.
“(The turnaround maintenance) is like you trying to modernise a car that was built 40 years ago, when technology and everything have changed. Even if you change the engine, the body will not be able to take the shock of that new technology engine,” Dangote explained.
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His comments reinforce earlier criticisms from former President Obasanjo, who last year also questioned the viability of the refineries. Obasanjo had said the NNPC lacked the capacity to operate them and recalled how even international oil giants, such as Shell, declined his request to take over the facilities.
“I ran to him (Yar’Adua), I said, ‘You know this is not right’. He said, ‘Well, NNPC said they can do it.’ I said, ‘NNPC cannot do it,’ I told my successor that ‘the refineries, from what I heard and know, will not work and when you want to sell them, you will not get anybody to buy them at $200m as scrap’. And that is the situation we are in,” Obasanjo said.
“So, why do we do this kind of thing to ourselves? NNPC knew that they could not do it, but they knew they could eat and carry on with the corruption that was going on in NNPC. When people were there to do it, they put pressure. In a civilised society, those people should be in jail,” he added.
Reiterating his stance earlier this year, Obasanjo said: “I was told not too long ago that since that time, more than $2bn have been squandered on the refineries and they still will not work.
“If a company like Shell tells me what they told me, I will believe them. If anybody tells you now that it (the refinery) is working, why are they now with Aliko (Dangote)? And Aliko will make his refinery work; not only make it work, he will make it deliver.”
He concluded with a Yoruba proverb, drawing a comparison between overstated promises and reality: “They say that after he has harvested 100 heaps of yams, he will also have 100 heaps of lies. You know what that means.”
Pressure has mounted in recent months for the Federal Government to privatise the NNPC-managed refineries, following repeated breakdowns despite official claims of their revival. The Port Harcourt facility, which reportedly resumed operations late last year, was shut down again within six months. Similarly, the Warri refinery ceased operations just one month after being declared functional in December by former NNPC Group Chief Executive Officer, Mele Kyari.
The Manufacturers Association of Nigeria and several stakeholders in the energy sector have described the refineries as a financial burden and called for their sale. Some crude oil refiners have even recommended selling them as scrap and redirecting the proceeds to support modular refinery projects.
Despite recurring allocations of public funds, the refineries remain inactive. In 2021 alone, the government approved $1.4 billion for Port Harcourt’s rehabilitation, $897 million for Warri, and $586 million for Kaduna. That same year, N100 billion was spent on refinery maintenance, with a monthly expenditure of N8.33 billion. Additionally, $396.33 million was allocated to turnaround maintenance efforts between 2013 and 2017.
NNPC refineries may never work again – Dangote
(PUNCH)
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Auto
FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares
FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares
The Federal Government has stepped up efforts to strengthen Nigeria’s automotive industry and promote more affordable transportation through collaboration with local vehicle manufacturers, following visits to two manufacturing facilities in Anambra State.
Board members of the National Automotive Design and Development Council (NADDC) inspected the facilities of Innoson Vehicle Manufacturing (IVM) in Nnewi and Kojo Motors Auto Assembly in Umunya to assess their production capacity, identify operational challenges and explore ways to support indigenous manufacturers.
The visit comes amid the Federal Government’s drive to expand the use of compressed natural gas (CNG) and electric vehicles as alternatives to petrol-powered transportation, with the aim of reducing operating costs and making public transport more affordable.
The manufacturers welcomed the government’s new policy directing ministries, departments and agencies (MDAs) to patronise locally manufactured vehicles, saying it could increase demand for their products and strengthen domestic production.
Secretary to the Government of the Federation, George Akume, had issued a circular directing government establishments to purchase vehicles from local manufacturers.
Managing Director of Innoson Vehicle Manufacturing, Chief Innocent Chukwuma, said he was encouraged by the government’s emphasis on CNG, describing the fuel as an important option for sustaining Nigeria’s automotive industry amid rising petrol and diesel costs.
Chukwuma disclosed that the company had dedicated its newest large-scale facility to producing CNG-powered trucks and electric vehicles.
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He said wider adoption of CNG could help lower transportation and operating costs while supporting local industrial growth and creating employment opportunities.
The industrialist also called for stronger backward integration in the automotive sector, arguing that manufacturers should focus on producing components that Nigeria has the capacity to manufacture competitively.
At the Umunya facility, the executive director of Kojo Motors, Chinedu Oguegbo, said the company was concentrating on commercial vehicles designed for Nigeria’s transport needs.
He said the company had begun benefiting from the government’s local vehicle procurement policy but had faced challenges arising from the sharp depreciation of the naira and exchange-rate fluctuations.
Oguegbo added that the company was developing its natural gas facility, which he expected to become operational in the future. He also expressed optimism that the company’s Omma Bus brand could eventually be exported to international markets.
NADDC Director-General Oluwemimo Joseph said the inspection was intended to give the council first-hand knowledge of the challenges confronting local vehicle manufacturers.
He explained that the council was reviewing existing policies and working on proposed legislation to improve the operating environment for the industry.
According to him, information gathered during the visits would help the council develop measures to address manufacturers’ concerns and identify vehicle components that could be produced locally.
Joseph said Nigeria had numerous small and medium-sized enterprises capable of supplying components to the automotive industry, adding that stronger partnerships could create new business opportunities and reduce dependence on imported parts.
He also acknowledged concerns about the effect of imported used vehicles on local manufacturers, noting that the council was considering measures to address the competitive disadvantages faced by domestic producers.
NADDC Chairman, Chief Emma Eneukwu, said the council was advocating legislation to protect local vehicle manufacturers from the influx of imported used cars.
He argued that local producers needed a more supportive policy environment to compete effectively and expand production.
The Federal Government’s broader CNG and electric mobility programme is designed to reduce transport costs by encouraging the deployment of vehicles powered by alternative energy sources. However, the impact on passenger fares will depend on the availability of vehicles, refuelling infrastructure, operating costs and the extent to which transport operators pass savings on to commuters.
The Anambra visits form part of efforts to strengthen local manufacturing, encourage investment and improve the availability of vehicles for Nigeria’s public transportation system. While the collaboration could support cheaper transport over time, the visits did not announce a specific new fare reduction or implementation timetable.
FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares
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Business
NNPC Petrol Discount: Motorists Must Download App to Save ₦66 Per Litre
The Nigerian National Petroleum Company Limited (NNPC) has made access to its ₦66-per-litre petrol discount conditional on customers downloading its mobile application and paying digitally, meaning motorists who pay directly at the pump may have to pay the higher displayed price.
Checks at NNPC retail outlets in Abuja showed that petrol was selling for ₦1,405 per litre for customers paying directly at the pump, while motorists using the company’s mobile application paid ₦1,339 per litre, according to a report by Saturday PUNCH published on October 10, 2026.
The difference of ₦66 per litre means motorists must complete the required digital payment process to benefit from the discount. The price reduction is not automatically applied to customers paying directly at the pump.
A fuel attendant at the NNPC mega station along Obasanjo Way in Abuja reportedly confirmed that customers had to download the application and pay through it to qualify for the lower price. Similar arrangements were observed at other NNPC outlets in the Federal Capital Territory.
The payment condition has raised questions about access to the relief initiative, particularly for motorists who prefer cash transactions or do not have smartphones, reliable internet access or experience using mobile payment applications.
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NNPC introduced the petrol discount on October 1, 2026, as part of activities marking Nigeria’s 66th Independence Anniversary. The company subsequently announced that the offer would continue until October 31, 2026, at its retail stations nationwide.
The company said the initiative was intended to provide temporary relief to households and businesses facing rising fuel costs amid increases in global crude oil prices linked to tensions and conflict in the Middle East.
The Federal Government also announced a 30-day relief measure under which NNPC Retail would forgo its retail profit margin and sell petrol at cost. Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said the intervention was designed to cushion the impact of rising fuel prices on Nigerians, particularly vulnerable households and commercial transport operators.
NNPC has maintained that the discount is a temporary relief measure and does not represent a return to the petrol subsidy regime.
However, requiring motorists to use a mobile application to access the price reduction means that customers’ ability to benefit depends on their access to and use of the approved digital payment channel.
For commercial drivers and other frequent petrol buyers, the difference could add up over time. A motorist purchasing 20 litres, for example, would save ₦1,320 at the discounted rate compared with the higher price reported at the Abuja outlets.
The discount also carries a financial cost for NNPC. According to Saturday PUNCH, the company could forgo an estimated ₦4.62 billion in gross revenue if its average monthly petrol sales qualified for the reduction.
The observed prices in Abuja do not necessarily represent the pump price at every NNPC station nationwide, as retail prices may vary by location and prevailing supply conditions.
Motorists intending to benefit from the offer before its scheduled end on October 31 should confirm the payment requirements at participating NNPC stations and ensure they are using the company’s approved application.
The initiative comes as Nigerians continue to face pressure from petrol prices and the resulting effects on transport fares, food distribution, household expenses and business operating costs.
NNPC Petrol Discount: Motorists Must Download App to Save ₦66 Per Litre
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Business
Fitch Gives Tinubu Fresh Economic Boost as Nigeria’s Outlook Turns Positive
Fitch Ratings has revised Nigeria’s economic outlook from stable to positive, citing improvements in foreign exchange reserves, monetary policy, exchange rate reforms and moderating inflation under President Bola Ahmed Tinubu.
The international credit rating agency announced the decision on Friday, October 9, 2026, while affirming Nigeria’s long-term issuer default ratings at ‘B’. The revised outlook signals the possibility of a future credit rating upgrade if the country sustains its economic reforms and strengthens its financial position.
The Federal Government disclosed the development on Saturday through the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, who described the assessment as an endorsement of the administration’s economic reform programme.
Fitch’s decision reflects growing confidence in Nigeria’s macroeconomic policy framework and external financial position. The agency also expressed confidence that the government would maintain its reform momentum despite the approach of the 2027 general elections.
One of the key factors behind the positive outlook is the significant improvement in Nigeria’s foreign exchange reserves, which reportedly reached $54.9 billion as of September 25, 2026, compared with approximately $32 billion in mid-April 2024.
Fitch attributed the increase to stronger activity in the formal foreign exchange market, portfolio investment inflows, higher export receipts and remittances from Nigerians living abroad.
The agency projected that Nigeria’s current account surplus would reach 6.4 per cent of gross domestic product (GDP) in 2026. It also expects foreign exchange reserves to cover approximately 6.3 months of current external payments by the end of the year, providing a stronger buffer against external economic shocks.
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Nigeria’s economic growth prospects also informed the revised outlook. Fitch forecast that the country’s real GDP would expand by 4.3 per cent in 2026, up from 4.0 per cent in 2025, with growth expected to remain above four per cent in 2027 and 2028.
The agency expects non-oil activities to remain a major driver of economic expansion, reflecting the importance of sectors beyond crude oil to Nigeria’s long-term economic prospects.
On inflation, Fitch projected average annual inflation of 15.4 per cent in 2026, significantly below the levels recorded in 2024. It attributed the expected moderation partly to greater stability in the naira and the effects of restrictive monetary policy.
However, the agency cautioned that inflation would remain high compared with countries with similar credit ratings, meaning that the cost of living and pressure on household budgets would continue to pose challenges.
Developments in the oil sector also contributed to the improved assessment. Fitch reported that crude oil production, excluding condensates, increased by 10 per cent quarter-on-quarter in the second quarter of 2026, while output reportedly met Nigeria’s OPEC target of 1.5 million barrels per day from May.
The expansion of domestic refining capacity, particularly the ramp-up of the Dangote refinery and the rehabilitation of other facilities, has also helped reduce reliance on imported refined petroleum products and associated foreign exchange demand.
The Federal Government attributed the improved outlook to major policy decisions introduced under Tinubu, including the removal of the petrol subsidy, foreign exchange market reforms and changes to the tax system.
Oyedele said the administration would continue implementing the reforms to reduce Nigeria’s cost of borrowing, attract private investment and encourage job creation.
The government also pledged to sustain a transparent, market-reflective foreign exchange regime, improve tax administration, strengthen debt management and increase non-oil revenue.
Despite the positive assessment, Fitch identified several risks that could limit Nigeria’s economic progress. These include weak governance indicators, dependence on hydrocarbons, persistent inflation, security challenges and low government revenue relative to the size of the economy.
The agency also projected that Nigeria’s general government fiscal deficit would widen to 3.6 per cent of GDP in 2026 amid spending pressures. Although tax reforms could improve revenue collection, implementation challenges may limit the gains.
Fitch forecast that general government debt would average 32 per cent of GDP between 2026 and 2028, below the 56 per cent median for countries in the ‘B’ rating category.
The positive outlook does not amount to an immediate upgrade of Nigeria’s credit rating. Rather, it indicates that Fitch could raise the rating in the future if economic reforms continue, macroeconomic stability improves and fiscal pressures ease.
The latest assessment follows other positive developments in Nigeria’s credit standing in 2026. S&P Global Ratings upgraded Nigeria’s rating from ‘B-’ to ‘B’ in May, while Moody’s Ratings revised its outlook on the country to positive in August, according to the Federal Government.
For the Tinubu administration, the latest Fitch decision provides an important boost to its economic reform agenda. However, the ultimate test will be whether improvements in economic indicators translate into tangible benefits for Nigerians through lower inflation, stronger purchasing power, increased employment and sustainable business growth.
Fitch Gives Tinubu Fresh Economic Boost as Nigeria’s Outlook Turns Positive
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