Energy

President of the Dangote Group, Aliko Dangote, says petrol selling at N1,350 per litre in Nigeria remains cheaper than in neighbouring countries. Dangote says petrol prices in those countries are between 30 and 50 per cent higher than in Nigeria, making cross-border smuggling more attractive. He disclosed this during an interview on Arise TV on Tuesday. According to him, the price gap is encouraging traders to move petrol from Nigeria into neighbouring countries where they can make higher profits. Using Niger as an example, Dangote said petrol is currently about 20 to 25 per cent more expensive there than in Nigeria. He questioned why traders would ignore an opportunity to make an immediate 25 per cent return by moving the product across the border. Dangote added that the price difference continues to make petrol smuggling financially attractive despite efforts to curb the practice.

Oil marketers in Nigeria are preparing to increase the pump prices of petroleum products following a surge in international crude oil prices above $100 per barrel. The rise is being driven by escalating tensions in the Middle East and fears of disruptions to global oil supplies, raising concerns about higher fuel, transport and production costs in Nigeria. The OPEC Basket, which includes Nigeria’s Bonny Light, climbed above $100 per barrel from about $95, representing an increase of roughly 5.2 per cent. Brent crude also rose to $100.60 per barrel, while Murban crude increased to $118.30. Lagos State Chairman of the Petroleum Retailers Outlets Owners Association of Nigeria, Joseph Ehimen, said marketers would review pump prices after their next purchases, depending on prevailing market conditions and associated costs. However, Nigeria may not fully benefit from higher crude prices because its oil production remains below target. OPEC data showed that the country’s crude output fell from 1.51 million barrels per day in June to 1.44 million barrels per day in July. Economists warned that sustained high crude prices could increase the cost of diesel, transportation, freight and other energy-dependent activities, potentially pushing up the prices of goods and services. Despite the international price surge, petrol prices in Lagos remained largely between N1,266 and N1,300 per litre on Wednesday. Dangote Refinery sold at N1,266 per litre, while other depots recorded varying prices. The Association of Small Business Owners of Nigeria described the development as a mixed blessing, saying higher oil prices could boost government revenue and foreign exchange earnings but would also increase operating costs for businesses and reduce household purchasing power. Industry experts urged the Federal Government to use any additional oil revenue to strengthen domestic refining, improve public transportation, support vulnerable households and businesses, and reduce the impact of rising energy costs. They also advised the government to avoid returning to broad petrol subsidies, instead focusing on targeted measures that can cushion Nigerians while strengthening the economy.

Global oil prices climbed by more than three per cent during early Asian trading on Wednesday after the United States military said it intercepted several missiles launched by Iran, heightening concerns over escalating tensions in the Middle East. As of 0015 GMT, US benchmark West Texas Intermediate (WTI) crude gained 3.67 per cent to trade at $82.17 per barrel, while Brent crude, the international benchmark, rose 3.39 per cent to $86.94 per barrel. The sharp increase reflects market fears that renewed hostilities in the region could disrupt global energy supplies, particularly through critical shipping routes. Despite the growing tensions, US President Donald Trump expressed optimism that diplomatic efforts could still help resolve the conflict, which reportedly began in late February. “I have a lot of patience… We’ll see what happens,” Trump told reporters aboard Air Force One. “I think there is a good chance that something could happen.” Meanwhile, reports indicate that Oman and Iran are working toward an agreement to restore shipping through the Strait of Hormuz, a strategic waterway that carries about one-fifth of the world’s oil and liquefied natural gas (LNG) exports. The latest developments have kept global energy markets on edge, with analysts warning that any disruption to oil exports through the Gulf could have significant consequences for global oil prices and energy supply.

Sahara Group has called for a fresh approach to Africa’s energy transition, infrastructure financing and energy journalism, urging stakeholders to adopt strategies that reflect the continent’s unique realities. The company made the call on Wednesday during the third edition of its thought leadership forum, Asharami Square, themed “Energising Africa’s Future: Legacy, Impact and Transformation.” Speaking at the event, Sahara Group’s Director of Governance and Sustainability, Ejiro Gray, said the company’s “Beyond XXX” vision is focused on shaping the future rather than celebrating past achievements. Gray stressed that Africa’s energy transition should be driven by local realities and supported by balanced, evidence-based journalism capable of examining the complexities of energy development and sustainability. “Effective journalism should not only tell us what happened; it should help us understand why it matters, whose interests are affected and what perspectives are missing from the conversation,” she said. Delivering the keynote address, the Special Adviser to the President on Power Infrastructure, Sadiq Wanka, said reforms in Nigeria’s electricity sector are creating new opportunities for investment. According to him, the major challenge facing the sector is no longer technology but mobilising capital, developing bankable projects and creating an environment that attracts long-term investment. “The issue is no longer technology. The real challenge is mobilising capital at scale, structuring bankable opportunities and creating an ecosystem that attracts long-term financing,” Wanka said. He noted that ongoing reforms are opening investment opportunities in embedded generation, mini-grids, renewable energy, transmission infrastructure and industrial power solutions, while encouraging journalists to report more extensively on policy implementation and investment opportunities. A panel discussion featuring Professor Abigail Ogwezzy-Ndisika of the University of Lagos, Chief Executive Officer of the Lagos State Electricity Regulatory Commission, Temitope George, Managing Director of Investment Banking at Chapel Hill Denham, Kemi Awodein, and moderated by Argus Media Associate Editor for Africa, Adebiyi Olusolape, examined financing options for Africa’s energy future. The panelists agreed that although Africa has significant domestic capital, attracting greater investment will require stronger governance, improved investor confidence and better project preparation. Speaking on the role of the media, Professor Ogwezzy-Ndisika called for more investigative and solutions-driven reporting on the energy sector. “Energy reporting must go beyond headline events and announcements. Journalists need to ask deeper questions, examine the evidence and connect policy decisions to their impact on communities and everyday lives,” she said. George highlighted the importance of ensuring projects are investment-ready, while Awodein said governance, transparency and clear value creation remain essential for attracting long-term capital. The event also featured the unveiling of the Asharami Square Energy Reporting Fellowship Judging Panel, an initiative aimed at strengthening energy journalism across Africa. Sahara Group’s Head of Corporate Communications, Bethel Obioma, said the fellowship is designed to equip journalists with a deeper understanding of the technical, commercial, environmental and policy issues shaping the energy sector. He added that the initiative aligns with the company’s “Beyond XXX” vision of investing in people and platforms that will contribute to Africa’s energy future, with Professor Ogwezzy-Ndisika serving as the programme’s lead assessor.

Thirty-one companies have emerged as successful bidders for 37 oil and gas blocks in Nigeria’s 2025 Licensing Round following the conclusion of the commercial bid conference held in Abuja. The exercise, organised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) at the Transcorp Event Centre, attracted 143 companies, which submitted nearly 200 bids for 37 of the 50 oil and gas blocks on offer. The awarded assets span the Niger Delta’s onshore, shallow water and deep offshore regions, as well as the Benin, Anambra and Chad basins, and the Benue Trough. Thirteen of the 50 blocks offered did not receive any bids. According to the commission, the 2025 licensing round marked the first time Nigeria’s frontier basins including the Benue Trough, Chad Basin, Anambra Basin and Benin Basin recorded significant investor participation. The successful companies are SSonic Petroleum Limited, CFP Pipeline and Flowlines, Dutchford E&P Limited, Attabanson Global Company Limited, Rosem Energy Limited, Pivot-GIS Limited, Network E&P, Asharami, LexOil, BVOF, Gupsco Energy Limited, Saratoga, Volante, Concept-Reel Petroleum Services Limited, Clinton Oil Field, Nuway Oaklane Limited, Ramec, Italia, Blueridge E&P, Up Energies Limited, AYM Shafa, Blackrock Holdings Limited, Funtay Integrated Business Limited, Riparian Development and Production Limited, Nikstallis, Stardeep Petroleum, Dakoda & U Limited, Southborne Oil and Gas Limited, Lanaka Petroleum, Highban Resources Limited and Eyre Energy Limited. NUPRC stated that the successful bidders would receive their final awards only after paying the required signature bonuses and obtaining the approval of the Minister of Petroleum Resources, in line with the Petroleum Industry Act (PIA) 2021. Speaking after the bidding process, NUPRC Chief Executive Oritsemeyiwa Eyesan congratulated the successful companies and urged them to make prompt payment of their signature bonuses and commence development of the awarded assets. She also warned that any awarded asset left undeveloped could be withdrawn under the commission’s “drill or drop” policy.