Business

Oil Price Soars to Seven-year High, Surges Near $87pb

Published

4 years ago

January 18, 2022

•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

Related Topics:High oil price Soars Surges

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Petrol Prices Fall Nationwide as Dangote Refinery Cuts Ex-Depot Rate

Published

20 hours ago

June 3, 2026

Trends Admin

Petrol Prices Fall Nationwide as Dangote Refinery Cuts Ex-Depot Rate

Nigeria’s petrol prices have begun to decline across several parts of the country after Dangote Refinery announced a fresh reduction in its ex-depot price of Premium Motor Spirit (PMS), raising hopes of further relief for motorists and businesses grappling with high fuel costs.

The 650,000 barrels-per-day refinery reduced its ex-depot petrol price from N1,275 per litre to N1,250 per litre, while also lowering the ex-depot price of diesel from N1,800 per litre to N1,700 per litre. The company attributed the latest adjustment to a decline in global crude oil prices and its commitment to making refined petroleum products more affordable for Nigerians.

The development has already triggered price reductions at several filling stations, particularly in Lagos and Ogun states, where some marketers are now selling petrol below N1,300 per litre.

Checks along the Mowe-Ibafo axis of the Lagos-Ibadan Expressway showed that marketers moved swiftly to adjust pump prices following the refinery’s announcement. MRS stations reduced petrol prices to N1,286 per litre, while NIPCO and Heyden sold at N1,290 per litre. SGR outlets adjusted their pump price to N1,297 per litre.

The downward trend was also noticeable in the diesel market, where several stations reduced prices to around N1,800 per litre from previous levels of about N1,900 per litre.

However, not all retailers have fully reflected the latest reduction. Some outlets operated by the Nigerian National Petroleum Company Limited (NNPC) were still selling petrol above the N1,300 mark. In Ibafo, NNPC stations dispensed fuel at N1,305 per litre, while Mobil and Asharami stations sold at N1,310 and N1,320 per litre respectively.

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Industry observers believe the latest move by Dangote Refinery could lead to additional price adjustments nationwide as marketers exhaust existing inventories and take delivery of products purchased at the new rate.

The reduction comes after months of sustained pressure on consumers following a sharp rise in fuel prices. Petrol prices had surged from around N830 per litre to over N1,300 per litre in many parts of the country as global crude oil prices climbed above $115 per barrel amid tensions involving the United States and Iran.

Energy analysts say increasing local refining capacity is beginning to reshape Nigeria’s downstream petroleum market. Since commencing large-scale operations, Dangote Refinery has emerged as the country’s dominant fuel supplier, significantly reducing dependence on imported petroleum products and introducing stronger competition among marketers.

The latest price cut is expected to provide some relief to households and businesses struggling with rising transportation, logistics and production costs. Many Nigerians are also hoping that continued declines in global crude prices and improved local supply will force further reductions in pump prices in the coming weeks.

Stakeholders, however, caution that future petrol price movements will continue to depend on global oil market trends, foreign exchange stability, transportation costs and overall supply conditions within the domestic market.

For now, motorists are beginning to enjoy modest savings at the pump, with the prospect of more competitive pricing as marketers respond to changing market realities.

Petrol Prices Fall Nationwide as Dangote Refinery Cuts Ex-Depot Rate

Business

40 Million Nigerians Await MTN as Airtel, Glo Bring Back Airtime Loans

Published

1 day ago

June 2, 2026

Trends Admin

40 Million Nigerians Await MTN as Airtel, Glo Bring Back Airtime Loans

Airtime lending services in Nigeria are making a strong comeback after weeks of uncertainty. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has confirmed that 40 million subscribers will soon regain full access to emergency credit facilities. This development follows Airtel Nigeria’s decision to restore its airtime credit service and the Federal Competition and Consumer Protection Commission’s (FCCPC) suspension of the controversial DEON Regulations 2025. For millions of prepaid and low-income users, these small airtime advances are a daily lifeline for communication and economic survival.

Airtel Nigeria and Globacom (Glo) have fully restored their airtime lending services after a six-week suspension. Ayo Stuffman, chairman of the Wireless Application Service Providers Association of Nigeria (WASPAN), confirmed on Monday, May 25, 2026, that the services in question are already active on Airtel and Glo. In contrast, MTN Nigeria has yet to resume the service. The return follows a decision by the FCCPC to suspend enforcement of its controversial DEON Regulations 2025 after a court order halted implementation. The suspension had disrupted services such as ‘Borrow Me Credit’ and other airtime advance platforms used by millions of Nigerians, especially low-income subscribers who rely on small airtime loans during emergencies or temporary cash shortages.

ALTON Chairman Gbenga Adebayo has stated that the regulatory landscape is now sufficiently clear for operators to resume operations. He commended Airtel for taking the lead in restoring access to subscribers, noting that the regulatory environment is now clear and that full restoration is imminent. Adebayo emphasized that the courts have spoken, the FCCPC has acted responsibly, and two of the four major operators have already restored services. He added that there is no ambiguity left, and the association expects every operator to act with the urgency their subscribers deserve.

The disruption began in April 2026 after the FCCPC classified airtime credit as a consumer lending product under its DEON Regulations 2025. The move prompted MTN Nigeria, Airtel, Globacom and T2mobile to suspend services. Nigeria’s airtime credit market is estimated at N300 billion to N400 billion annually. Adebayo argued the suspension showed airtime credit is a critical economic infrastructure, not a typical financial product. He explained that what this episode demonstrated is that airtime credit is not a financial product in the way regulators initially characterised it. He described it as economic infrastructure that approximately 40 million people use regularly, with the vast majority of them at the base of the economy. He warned that removing that infrastructure, even temporarily, had consequences that went far beyond the telecom sector.

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The turning point came when the Wireless Application Service Providers Association of Nigeria (WASPAN) filed a lawsuit challenging the FCCPC’s authority. Justice A.L. Allagoa of the Federal High Court, Lagos, issued an ex parte order restraining the FCCPC from enforcing the framework, while Form 49 contempt proceedings were reportedly initiated against the Commission’s Executive Vice Chairman, Tunji Bello. In a statement on Friday, May 22, 2026, FCCPC Director of Corporate Affairs, Ondaje Ijagwu, confirmed the Commission’s compliance with the court order. Ijagwu stated that as a law-abiding institution, the Commission, in deference and in obedience to the rule of law, hereby suspends the implementation and the enforcement of the DEON Regulations 2025. Despite the temporary suspension, the FCCPC signalled plans to challenge the ruling, stating that its legal team had been instructed to contest both the court order and the competence of the suit filed against it. The Commission had earlier claimed it received more than 11,000 consumer complaints linked to digital lending operations, which partly motivated its regulatory push.

With Airtel and Globacom already back online, attention has shifted to MTN Nigeria, which serves over 95 million subscribers. MTN’s Chief Corporate Services and Sustainability Officer, Tobechukwu Okigbo, explained that the operator needs further legal clarity before restoring services. Okigbo stated that in terms of what needs to happen for them to resume the airtime advance service, there are essentially two conditions. First, they would require either a court ruling that sets aside the regulations empowering the FCCPC to license, which has not happened. Second, they would need a clear directive instructing them to reinstate the service.

For subscribers on Airtel and Glo, accessing emergency credit is now straightforward. Users can simply dial the harmonized USSD code *303# and select the “Borrow Credit” or “Airtime Advance” option. They can then choose their desired loan amount, which is repaid automatically on their next recharge. MTN subscribers, however, will continue to see an error message until the company decides to restore the service.

ALTON has used this episode to call for stronger coordination between the FCCPC and the Nigerian Communications Commission (NCC) to avoid future regulatory clashes. Adebayo noted that the recent disruption highlighted the importance of airtime credit services to millions of Nigerians, particularly those in lower-income communities who rely on the facility to stay connected. He argued that the FCCPC’s consumer protection mandate and the NCC’s telecom regulatory mandate can coexist without either displacing the other. The lesson, according to him, is that Nigeria’s regulatory agencies need formal coordination protocols for services at the intersection of telecommunications and financial products. He stated that ALTON is ready to participate in that conversation and urged both agencies to begin it without delay.

Looking ahead, the final outcome of the court battle will determine the future regulatory control of Nigeria’s fast-growing digital credit ecosystem. If the court rules in favor of the telecom operators, MTN will likely restore services quickly, and the NCC will retain oversight of airtime lending. If the FCCPC wins, stricter digital lending rules may apply, including licensing requirements, interest rate caps, and consumer complaint mechanisms. For now, Airtel and Glo subscribers can breathe easier knowing their emergency credit line is back. Millions of MTN users, however, must wait for either a court ruling or a clear directive before they can once again borrow airtime to stay connected.

40 Million Nigerians Await MTN as Airtel, Glo Bring Back Airtime Loans

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Toyota Motor Show Roars into Lagos Tomorrow with Test Drives, Debates, Free Diagnostics, Others

Published

2 days ago

June 1, 2026

Trends Admin

Toyota Motor Show Roars into Lagos Tomorrow with Test Drives, Debates, Free Diagnostics, Others

4-Day Festival Kicks Off June 2, No Admission Fees

If you have ever wanted to get behind the wheel of a Land Cruiser, grill a Toyota engineer, or win prizes while learning how your engine actually works, tomorrow is your day.

Toyota Nigeria Limited will throw open the gates for its annual Toyota Motor Show on Tuesday, June 2, 2026. And for four days, Lekki becomes the city’s biggest car park, debate stage, and hangout spot rolled into one. The show runs through Saturday, June 6, with a break on Friday, 5th June, according to the organisers, TNL.

Forget the usual “stand-and-stare” motor shows. TNL says it is going full experience:

Day 1: Tuesday, June 2 – See It, Drive It, Hear It
Doors open for open vehicle viewing. But the headline is _PodCARst_ going live – Toyota’s new podcast recorded on-site. First guest? Celebrity guest Soma, in conversation with execs. Think cars, culture, and no script.

Day 2: Wednesday, June 3 – Youth Takeover
This is for students and young professionals. Expect debate competitions, quiz battles, and hands-on workshops. Kate Henshaw, screen legend, will be on ground to meet fans and judge the action.

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Day 3: Thursday, June 4 – Influencer Tours
Social media star Mama Deola leads guided vehicle tours. She will walk the arena, break down why the Hilux still owns Nigerian roads, and why the Corolla and other Toyota models make sense for fuel prices today. Public access continues all day.

Grand Finale: Saturday, June 6 – The Bump Off
The event will close with another _PodCARst_ recording popular social media influencer, Ride With Mee, then turn up the energy for the “Toyota Bump Off” – a mini-rave hosted by media personality Dotun. DJ, outdoor games, prizes, and one last round of test drives.

All Week Long, All Visitors Get:
1. Free vehicle diagnostics – TNL technicians will scan your car, no charges.
2. Test drives – From Camry to RAV4 to Hilux. Book a slot, feel the ride.
3. Open exhibitions – Touch, sit, and compare Toyota’s latest models and mobility solutions.

Why it matters: This isn’t just a car show. It’s Toyota Nigeria doubling down on connection. No sales pitch banners. Just real conversations, real cars, and real value for owners and future owners. After two years of record crowds, this 3rd edition is bigger, louder, and more interactive.

Admission is free. Bring your questions, bring your car keys, and bring your appetite for prizes.

Venue: The Podium. I24 Tunde Kuboye Road. Lekki. Lagos
Dates: Tuesday June 2 – Saturday June 6, 2026. No Show on Friday June 5.