Business

NNPC Refineries Will Never Work – Obasanjo Reignites Oil Sector Debate

Published

1 hour ago

April 27, 2026

Former President of Nigeria, Olusegun Obasanjo

Former President Olusegun Obasanjo

NNPC Refineries Will Never Work – Obasanjo Reignites Oil Sector Debate

Former President Olusegun Obasanjo has restated his long-standing criticism of Nigeria’s state-owned refineries, insisting that the facilities under the Nigerian National Petroleum Company Limited (NNPC Ltd) will “never work,” despite ongoing rehabilitation efforts and billions of dollars reportedly spent over the years.

Obasanjo made the remarks during a televised interview on Sony Irabor Live, where he reviewed past attempts to revive Nigeria’s refining sector and argued that government-managed refineries have consistently failed due to inefficiency, corruption, and poor maintenance culture.

He maintained that only a strong public-private partnership (PPP) model can deliver sustainable results in the oil and gas downstream sector, pointing to the success of Nigeria LNG (NLNG) as proof that private sector participation improves performance and accountability.

Obasanjo said Nigeria’s refineries remain structurally weak and mismanaged, stressing that repeated government interventions have failed to yield results. According to him, “NNPC refineries will never work,” adding that the system has been weighed down by decades of poor maintenance practices and institutional inefficiencies.

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The former president recalled efforts during his administration to bring in international oil companies, including Shell, to manage Nigeria’s refineries either through equity participation or operational control. He said Shell declined the offers, explaining that their downstream operations were not major profit drivers and that refinery management presented significant operational and structural risks. Obasanjo also said Shell raised concerns about Nigeria’s refinery capacities, which he described as relatively small compared to global standards, as well as issues of poor maintenance, corruption, and reliance on unqualified personnel.

Obasanjo further disclosed that business mogul Aliko Dangote once offered about $750 million to acquire a controlling stake in two of the refineries and manage them under a private sector arrangement. He said the proposal was initially accepted during his tenure but was later reversed after he left office, following pressure on the succeeding administration from NNPC leadership. According to him, the reversal contributed significantly to the continued decline of the refineries, which he believes have lost much of their value over time.

He also claimed that Nigeria may have spent as much as $16 billion on refinery rehabilitation efforts over the years, yet the facilities remain largely inefficient and commercially uncompetitive. He compared this figure with the cost of building modern private refineries, arguing that the country has spent enough to construct world-class facilities but has failed to achieve functional output.

Despite the criticism, the NNPC continues efforts to revive the Port Harcourt, Warri, and Kaduna refineries through the engagement of new technical partners. Officials have acknowledged that although some of the refineries briefly resumed operations in 2024 after rehabilitation, they are still operating below international standards and remain economically uncompetitive compared to private refineries. The NNPC has set a target of June 2026 to conclude the selection of technical partners to manage the facilities and improve operational efficiency.

The debate over Nigeria’s refining future has intensified following the emergence of the privately owned Dangote Refinery, widely regarded as Africa’s largest single-train refinery. Industry observers say the contrast between private and state-owned refinery performance continues to fuel arguments in favour of private sector-led management of critical energy infrastructure.

The NNPC has not issued an official response to Obasanjo’s latest comments at the time of filing this report.

NNPC Refineries Will Never Work – Obasanjo Reignites Oil Sector Debate

Aviation

Airlines Threaten Nationwide Shutdown Over Jet A1 Fuel Price Surge

Published

2 hours ago

April 27, 2026

Trends Admin

Domestic airlines in Nigeria

Airlines Threaten Nationwide Shutdown Over Jet A1 Fuel Price Surge

Domestic airlines in Nigeria have warned of a possible nationwide shutdown from Thursday, April 30, 2026, over a deepening aviation fuel crisis, as operators struggle with sharply rising Jet A1 fuel prices and unsustainable operating costs.

The Airline Operators of Nigeria (AON) say the planned action may ground all domestic flights if urgent intervention is not provided by the Federal Government, raising fears of widespread disruption to air travel across the country.

Airline operators say the continuous increase in aviation fuel prices in Nigeria has pushed the industry to breaking point. According to them, Jet A1 prices have surged by more than 300% since February, rising from about ₦900 per litre to between ₦2,700 and ₦3,500 in some locations. They explained that fuel now accounts for the largest share of operating expenses, leaving airlines struggling to sustain flight schedules while maintaining safety standards.

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Multiple rounds of negotiations have reportedly been held between airline operators, fuel marketers, and government officials, but no concrete solution has been reached. The Minister of Aviation and Aerospace Development, Festus Keyamo, convened a two-day emergency meeting in Abuja aimed at resolving the crisis. Although the government announced a 30% reduction in aviation-related taxes and charges, operators say the measure does not address the core issue of fuel pricing.

The Airline Operators of Nigeria warned that if no urgent action is taken, carriers may be forced to suspend domestic operations nationwide. Industry leaders say airlines are now operating at a loss, with some flights barely covering fuel costs. They also warned that continued operations under current conditions could compromise long-term sustainability in the aviation sector.

The looming shutdown has sparked concerns among passengers who rely heavily on domestic air travel for business, medical emergencies, and intercity movement. Many travellers have already begun exploring alternative transport options as uncertainty grows over possible flight cancellations in Nigeria.

In a formal submission to the Federal Government, the Airline Operators of Nigeria outlined several emergency measures, including the suspension of aviation taxes, fees, and charges for at least six months, the introduction of a non-taxable fuel surcharge system, the establishment of a pricing review committee for aviation fuel, and credit support arrangements between fuel marketers and airlines. Operators argue that these measures are necessary to stabilise the sector and prevent a total shutdown of domestic aviation.

As the Thursday deadline approaches, uncertainty continues to grow within Nigeria’s aviation industry. Airline officials say the situation remains critical, warning that without immediate intervention, domestic air operations could be grounded nationwide.

Airlines Threaten Nationwide Shutdown Over Jet A1 Fuel Price Surge

Business

Dangote Sugar Plans ₦485.9bn Rights Issue for Expansion Drive

Published

1 day ago

April 26, 2026

Trends Admin

Dangote Sugar Refinery

Dangote Sugar Plans ₦485.9bn Rights Issue for Expansion Drive

Dangote Sugar Refinery Plc has begun plans to raise approximately ₦485.9 billion through a rights issue, in a major capital market move aimed at strengthening its financial position and supporting ongoing expansion projects.

According to a regulatory filing, the company has submitted an application to the Nigerian Exchange Limited (NGX) seeking approval for the listing of 8,097,918,827 ordinary shares of 50 kobo each at a price of ₦60.00 per share.

The proposed offer will be executed on a 2-for-3 basis, meaning shareholders will be entitled to acquire two new shares for every three shares already held.

The company stated that the rights issue will give existing investors an opportunity to increase their stake while enabling Dangote Sugar Refinery to raise fresh capital to fund strategic growth initiatives, expand production capacity, and strengthen its operational efficiency.

A qualification date has been fixed for April 20, 2026, meaning only shareholders recorded on the company’s register as of that date will be eligible to participate in the offer.

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The transaction is being facilitated by a consortium of stockbrokers, including Meristem Stockbrokers Limited, Stanbic IBTC Stockbrokers Limited, and Vetiva Securities Limited, who are responsible for coordinating regulatory approvals and execution of the offer.

Market analysts say the planned ₦485.9bn capital raise ranks among the largest equity issuances on the Nigerian stock market in recent years, reflecting strong corporate appetite for expansion funding amid evolving economic conditions.

They also noted that the pricing structure and rights ratio could encourage strong investor participation, particularly given Dangote Sugar’s dominant position in Nigeria’s sugar production and refining sector and its long-term growth strategy.

The move comes at a time when listed companies in Nigeria are increasingly turning to the capital market to raise funds, as firms respond to inflationary pressures, foreign exchange challenges, and rising production costs.

If fully subscribed, the funds are expected to support backward integration projects, including agricultural expansion and improved refining infrastructure aimed at reducing import dependence and boosting local sugar production.

Dangote Sugar Plans ₦485.9bn Rights Issue for Expansion Drive

Insurance

Stanbic IBTC Insurance Wins Top Honour at CRe Africa Awards 2026

Published

3 days ago

April 24, 2026

Trends Admin

L-R: Managing Director, Lasaco Assurance Plc, Ademoye Shobo; Managing Director, Continental Re, Dr. Fatai Lawal; Managing Director/Chief Executive Officer of Cornerstone Insurance Plc, Mr. Stephen Alangbo; Josephine Ogundeji; Group CEO of Continental Reinsurance Holdings, Lawrence Nazare; Blessing Ifechukwude; Chief Executive, Stanbic IBTC Insurance Limited, Mr Jide Orimolade; Henry Uche; Chief Underwriting Officer – Facultative, Continental Reinsurance, Bashir Akinsiku

Stanbic IBTC Insurance Wins Top Honour at CRe Africa Awards 2026

Stanbic IBTC Insurance Limited has emerged as the overall winner of the CRe Momentum Award at the inaugural CRe Insurance Awards for Africa 2026, announced during the Continental Reinsurance CEO Summit held in Kigali, Rwanda, on April 17, 2026.

The prestigious award recognises insurers that demonstrate consistent growth, strong financial performance, and strategic impact across Africa’s insurance industry. Stanbic IBTC Insurance was singled out for its disciplined execution, strong commercial results, and highly effective bancassurance model, which has significantly driven its life insurance growth.

Judges at the awards noted that the company’s bancassurance strategy—leveraging banking platforms to distribute insurance products—remains one of the most efficient on the continent. The firm’s ability to combine innovation, customer reach, and operational efficiency has positioned it as a leader in Nigeria’s insurance market.

Beyond its growth metrics, Stanbic IBTC Insurance has built a reputation for prompt claims settlement, sound risk management, and customer-focused service delivery, further strengthening trust among policyholders and stakeholders.

In the same CRe Momentum Award category, Cornerstone Insurance Plc (Nigeria) secured second place, while La Générale des Assurances (Benin) finished third, reflecting strong competition among leading African insurers.

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In the Emerging Champions category, which celebrates fast-growing and innovative insurance companies, Agrails Ltd (Kenya) emerged winner, while Britam Connect (Kenya) came second.

The event also featured the 11th Pan-African Re/Insurance Journalism Awards, organised by Continental Reinsurance Plc, to honour excellence in reporting the insurance and reinsurance sector across Africa. A total of 184 entries from both Anglophone and Francophone countries were reviewed.

Uganda’s Isaac Khisa of The Independent Publications was named Overall Winner, also clinching the top spot in the English Print category for his report on Africa’s reinsurance market. Nigeria’s Josephine Ogundeji of Punch Newspaper was named first runner-up, while Ojeme Sunday of New Telegraph came second.

In the English Online category, Henry Uche of Daily Sun (Nigeria) emerged winner, followed by Isaac Khisa as first runner-up and Tendai Makaripe of 263 Chat (Zimbabwe) as second runner-up.

The English Broadcast category was won by Blessing Ifechukwude of Voice of Nigeria, with Mercy Tyra Murengu of Media Max Network (Kenya) and Samuel Nana Effah Obeng of GN Media (Ghana) finishing as first and second runners-up respectively.

Taurai Museka won the English Social Media category, while winners also emerged from Burkina Faso in the French category and Egypt in the Arabic category, highlighting the awards’ growing continental reach.

Additionally, Josephine Ogundeji received the Dr Femi Oyetunji Future Talent Award, while Mercy Tyra Murengu earned Special Recognition for her contribution.

Speaking at the event, Group CEO of Continental Reinsurance Holdings, Lawrence Nazare, said the inclusion of 10 new participating countries reflects the expanding influence of the awards across Africa. Chief Judge Michael Wilson also noted that the quality of entries continues to improve, making the selection process increasingly competitive.

Winners across categories received certificates, trophies, and cash prizes, with the overall winner earning $2,000, category winners receiving $1,500, first runners-up $1,000, and second runners-up $500.

The launch of the CRe Insurance Awards for Africa marks a significant step in recognising excellence, innovation, and leadership within the continent’s insurance ecosystem. Stanbic IBTC Insurance’s victory further reinforces Nigeria’s growing role as a hub for insurance innovation and life insurance expansion in Africa.