Business
Oil Price Soars to Seven-year High, Surges Near $87pb
•Supply constraint, fading COVID-19 fears drive up prices •Nigeria leads OPEC’s underperformance
Oil prices traded within striking distance of its seven-year high at $86.71 per barrel yesterday on continuing supply constraints and waning fears among heavy fuel users of another pandemic-induced slowdown.
In the last two weeks, Brent, Nigeria’s benchmark, has climbed more than 10 per cent to as much as $86.71 a barrel, exceeding last October’s high, to levels not seen since 2014 when oil topped $115.
On the other hand, the United States oil marker, the West Texas Intermediate (WTI) has risen more than 12 per cent since the start of the year, to hit a high of $84.78, just under last year’s peak.
Nevertheless, the rising oil prices is more of bad news for Nigeria which should ordinarily earn more foreign exchange from the sale of crude, but now has to deal with paying more for petrol subsidy which had been described as a drain on its economy because there’s a positive relationship between the international prices of the commodity and how much Nigerians get the product at the pump.
In the meantime, some analysts are forecasting that the crude benchmarks would trade at more than $100 a barrel again this year unless there is a significant increase in supply.
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The Organisation of Petroleum Exporting Countries (OPEC) and its allies had stuck to a plan agreed in July last year to replace output cut at the start of the pandemic gradually, by just 400,000 barrels a day each month, despite calls by major crude oil consuming nations like the United States to increase production. Generally, the strategy has helped oil prices move higher since August, and to recover quickly after the rapid spread of the Omicron coronavirus variant in November.
However, even at that, not all members of the OPEC+ group, including Nigeria have been able to hit their monthly targets, meaning the cartel has been increasing output by slightly less than its monthly target.
THISDAY recently reported that Nigeria’s continuing inability to pump enough crude oil, in part, resulted in the overall failure of OPEC to meet its target production for last month.
Whereas the target for Nigeria was 1.67 million barrels per day for last month, it only managed to produce 1.44 million barrels per day in December and 1.49 million barrels the previous month, using secondary sources.
The development has widened the gap between OPEC+ crude oil quotas and production as the group’s steady plan to loosen its pandemic cuts, once again outpaced actual output gains.
Nigeria has been struggling for months with meeting the quota allocated to it by OPEC due to ageing infrastructure as a result of years of under-investment in the upstream of the oil and gas sector.
Added to these are vandalism and sabotage, technical issues as well as difficulties with restarting oil wells the country shut down last year in the heat of the Covid-19 pandemic.
But despite the limitation, the largest individual increase was in West Africa, where Angola boosted output by 90,000 bpd to 1.2 million bpd. Although this was the highest monthly level of 2021, Angola was still 190,000 bpd below its December quota.
West Africa also saw the biggest individual decline last month, with Nigerian output tumbling and defying state-owned Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Mallam Mele Kyari’s forecast that the country would reach its target by the end of last year.
On December 22, the National Assembly approved a N17.126 trillion ($38 billion) budget for 2022, anchored on an oil price benchmark of $62 per barrel.
The approved oil price assumption was higher than the $57 per barrel price that President Muhammadu Buhari had proposed to the parliament on October 7, and also higher than the oil price benchmark of $40 per barrel adopted by the government for the 2021 budget.
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In addition, Nigeria retained the oil production target of 1.88 million bpd, including condensate production of between 300,000-400,000 bpd, for the purpose of its revenue calculation in 2022.
This is as compared to the output target of 1.86 million bpd the government had set for the 2021 fiscal year.
In addition, frantic oil buying, driven by supply outages and signs the Omicron variant of COVID-19 will not be as disruptive as feared for fuel demand, has pushed some crude grades to multi-year highs, suggesting the rally in Brent futures could be sustained a while longer.
A Reuters report quoted unnamed sources yesterday as saying that China plans to release oil reserves around the Lunar New Year holidays between January 31 and February 6 as part of a plan coordinated by the United States with other major consumers to reduce global prices.
Saudi Energy Minister Prince Abdulaziz bin Salman said on Monday it is the prerogative of the US government whether to release supply from the strategic petroleum reserves.
Kyari said recently that if the prices of oil rise too quickly and too high, it would be bad for Nigeria as its customers may likely look for alternatives to the commodity.
Meanwhile, oil analysts have raised their oil price forecasts for the first quarter of 2022, expecting demand to outpace supply.
Thisday
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Auto
Jetour Set to Storm Abuja Show with Rugged Luxury T2
Jetour Set to Storm Abuja Show with Rugged Luxury T2
Abuja is set for a taste of rugged luxury as Jetour Nigeria puts its adventure-ready T2 SUV in the spotlight at the Jetour Experience Abuja from September 22 to 24, 2026, giving motorists in the Federal Capital Territory and neighbouring states an opportunity to test its blend of off-road capability, premium comfort and advanced technology.
The three-day showcase at Maha Event Centre, Area 8, Garki, will feature test drives, live demonstrations and direct interaction with Jetour product specialists, offering prospective buyers a closer look at the T2 and other models in the automaker’s growing Nigerian line-up.
Positioned as a premium SUV combining off-road capability with comfort and advanced technology, the Jetour T2 is designed for motorists seeking a vehicle capable of handling both city driving and challenging terrain.
Jetour Nigeria is distributing the T2 and other models via its seven accredited dealers — Elizade Nigeria Limited, New Era AutoVehicle Services Limited, Germaine Auto Centre, Kojo Motors, Mandilas Autos, R.T. Briscoe Motors and Tab Autos Limited.
The T 2 SUV is powered by a 2.0-litre turbocharged engine producing 254 horsepower and 390 Nm of torque. The engine is paired with a seven-speed dual-clutch transmission and BorgWarner sixth-generation intelligent four-wheel-drive system.
It also features five driving modes — Eco, Sport, Mud, Rock and X Smart — designed to provide improved adaptability across different road and terrain conditions.
Measuring 4,758mm in length, 2,006mm in width and 1,880mm in height, the SUV offers 220mm ground clearance and a 70-litre fuel tank, giving it the capability for extended journeys and off-road adventures.
Inside the cabin, the T2 combines rugged styling with modern comfort, featuring ergonomic seating and a 15.6-inch touchscreen infotainment system with Apple CarPlay, Android Auto and intelligent voice control.
Its safety and driver-assistance features include a 360-degree panoramic camera, rear parking sensors, Lane Departure Warning, Blind Spot Detection, Anti-lock Braking System and Emergency Brake Assist.
The SUV also comes with off-road crawl control as well as push-button and remote-start functions.
The Abuja experience follows Jetour Nigeria’s recent showcase in Lagos as the automaker continues to expand its presence and customer reach across the country.
With its combination of performance, technology, safety and luxury, the Jetour T2 is expected to attract motorists seeking an SUV capable of combining everyday urban mobility with adventure and off-road driving.
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Business
NCAA Moves Against Airlines Over Rising Flight Delays
NCAA Moves Against Airlines Over Rising Flight Delays
Thousands of Nigerian air passengers faced delays in August as domestic airlines struggled to keep to their scheduled flight times.
Now, the Nigerian Civil Aviation Authority (NCAA) says it is taking regulatory steps that could lead to sanctions against airlines responsible for persistent delays.
The regulator’s August data showed that 4,765 of 7,961 scheduled domestic flights were delayed. In other words, nearly 60 per cent of the flights did not leave as scheduled.
Air Peace and United Nigeria Airlines recorded some of the highest delay rates, with 71 per cent and 76 per cent of their flights respectively affected.
NCAA Warns Airlines
NCAA Director of Public Affairs and Consumer Protection, Michael Achimugu, said that the regulator had already engaged some of the airlines involved.
According to him, the NCAA met with Air Peace, United Nigeria Airlines and Max Air and issued stern warnings over their operations.
The authority is now weighing further regulatory measures as the problem continues to affect passengers.
Achimugu also urged travellers to consider other airlines when repeated delays make a particular carrier unreliable.
“When one airline is continuously misbehaving, buy tickets on another airline and make your flight” he said.
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Passenger Rights Put Enforcement Under Spotlight
However, aviation consultant Capt. John Ojikutu believes the recurring problem exposes a wider weakness in the sector.
Ojikutu said Nigeria has regulations intended to protect air travellers, but questioned how consistently those rules are enforced.
“The regulation is there to protect the customer. What is the enforcement?” he said.
He noted that passengers can report violations to the appropriate authorities. But, in his view, regulators must follow up on those complaints with meaningful action.
The aviation expert also recalled experiencing severe delays himself.
He said he once travelled to Abuja and passengers had to board an aircraft three times before another plane was brought in to complete the journey.
The disruption, he said, left him returning to Lagos considerably later than expected.
Are Airlines Planning Their Routes Properly?
Ojikutu also linked the industry’s problems to the way some airlines plan their operations.
He questioned the number of carriers competing on the Lagos-Abuja route, particularly when several airlines operate multiple flights each day.
His argument is that airlines should first establish the level of passenger demand before selecting routes, aircraft sizes and flight frequencies.
According to him, deploying aircraft capable of carrying more than 100 passengers without sufficient demand can put additional financial pressure on an airline.
He therefore advised carriers to consider routes with enough passengers but less competition.
Smaller Aircraft Could Serve Regional Routes
Ojikutu said the industry could also learn from the operational model used by the former Nigerian Airways.
He recalled that the airline used larger aircraft on major routes while smaller planes connected regional destinations to major airports.
He suggested that modern carriers could adopt a similar approach by connecting cities such as Sokoto, Kaduna, Jos and Minna to larger aviation hubs.
Rather than having every airline compete directly on major routes, he said carriers could develop regional networks that feed passengers into bigger airports.
He also called for more airlines to establish bases outside Lagos.
According to him, encouraging operations in other parts of the country could reduce the heavy concentration of airlines in Lagos and create stronger regional connections.
Concern Over Airline Survival
Ojikutu further questioned the short lifespan of many Nigerian airlines.
He attributed part of the problem to weak business planning and argued that airlines should present credible, sustainable plans before receiving regulatory approval to operate.
The latest development therefore puts both airlines and the aviation regulator under scrutiny, as passengers continue to deal with delays despite existing rules designed to protect them.
NCAA Moves Against Airlines Over Rising Flight Delays
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Business
Fuel Prices Climb to ₦1,500 per Litre Across Nigeria, Sparking Calls for Urgent Action
Fuel Prices Climb to ₦1,500 per Litre Across Nigeria, Sparking Calls for Urgent Action
Workers’ unions and fuel sellers appeal to the government to protect families from soaring transportation and food costs.
Fuel stations across Nigeria have raised the price of petrol to as high as ₦1,500 per litre, creating fresh financial strain for working people, small business operators, and families. Across cities such as Kano, Maiduguri, Damaturu, and Sokoto, drivers and commercial riders now pay higher rates at the pump, while stations in central and southern communities also report steady increases.
Because transportation costs directly influence the price of everyday essentials, bus drivers and tricycle operators have raised passenger fares to cover their fuel bills. As a result, parents and commuters face steeper daily travel expenses and rising grocery bills.
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To address this pressure, the Nigeria Labour Congress urged federal authorities to step in quickly with practical relief measures. These proposals include providing cost-of-living allowances to workers, ensuring local refineries can purchase crude oil directly in local currency, and using surplus oil earnings to keep pump prices affordable.
At the same time, fuel sellers warned that pump prices could rise even further if international oil markets remain volatile. Retail associations noted that recent wholesale adjustments from local refineries have increased costs for station owners, who must pay more to restock their tanks.
To keep fuel affordable for the general public, union leaders and station operators are encouraging the government to reduce shipping and regulatory fees, helping ensure that reliable energy remains accessible to every community across the country.
Fuel Prices Climb to ₦1,500 per Litre Across Nigeria, Sparking Calls for Urgent Action
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