Energy
Fed Govt shelves proposed 15% levy on fuel, diesel imports
• Suspension a setback to Nigeria’s economic reform, says OGUNCCIMA
By Grace Edet
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has stated that the proposed implementation of the 15 per cent of valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.
According to a statement posted on its X handle earlier today, the Director, Public Affairs Department, NMDPRA, George Ene-Ita, while assuring of adequate supply of products by the Authority, said: “It should also be noted that the implementation of the 15 per cent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.”
The statement said the Authority will continue to closely monitor the supply situation and take appropriate regulatory measures to prevent distruption of supply and distribution of petroleum products across the country, especially during this peak demand period.
But reacting to the decision, the Ogun State Chamber of Commerce, Industry, Mines and Agriculture (OGUNCCIMA) faulted the Federal Government’s decision to suspend the proposed implementation of the 15 per cent import duty on petrol and diesel imports. It insisted that the rescinding of the policy could slow down the nation’s progress toward energy independence and weaken investor confidence in the refining sector.
OGUNCCIMA’s President, Niyi Oshiyemi, described the suspension as a setback to Nigeria’s economic reform drive and a missed opportunity to protect local refiners, particularly the Dangote Refinery and other modular refining initiatives.
“The suspension of the 15 per cent fuel import tariff is disappointing. The policy was a step in the right direction to promote local refining, reduce dependence on imports, conserve foreign exchange and create a fair competitive environment for domestic producers. Its reversal sends a wrong signal to investors who have shown confidence in Nigeria’s energy sector,” Oshiyemi said, noting that implementing the tariff would have helped to stabilise the naira by curbing excessive demand for foreign exchange used in fuel importation.
He added that local refineries need firm policy backing to thrive, warning that continuous reliance on imported fuel would make the economy vulnerable to external shocks.
“The Dangote Refinery alone has the capacity to meet Nigeria’s domestic fuel needs and even export to other African countries. Supporting such investments with protective policies like the import tariff is not just economic common sense; it is a matter of national interest,” he stated.
The OGUNCCIMA President urged the Federal Government to reconsider its decision and reintroduce the policy after consultations with key stakeholders in the oil and gas industry.
He emphasised that sustainable industrial growth requires consistency in policy direction, noting that frequent policy reversals discourage private sector participation and hinder long-term development.
While acknowledging the government’s concern about potential short-term price increases, Oshiyemi maintained that the long-term gains including job creation, forex savings and increased energy security far outweigh any temporary inconvenience.
He reaffirmed OGUNCCIMA’s commitment to advocating policies that protect local industries and promote economic diversification.
“We believe in reforms that empower Nigerian investors and strengthen our productive base. The 15 per cent tariff was one of such reforms, and we urge the government to revisit it in the national interest,” he said.
Recall that in October, President Bola Tinubu approved the introduction of a 15 per cent ad valorem import duty on petrol and diesel imported into the country.
According to the government, the measure was intended to “strengthen local refining capacity and ensure a stable, affordable supply of petroleum products across Nigeria.”
Authorities had announced that implementation of the tariff would commence within a month of its approval.
However, the decision drew widespread criticism from stakeholders, energy experts and civil society groups, who warned that the levy could trigger a surge in fuel prices and further strain the nation’s fragile economy.
Energy
NNPC E&P Limited Hits Record 355,000 bpd Production
• Nigeria’s Energy Revival Already Happening, Says Ojulari
On December 1st, 2025, NNPC E&P Limited (NEPL), the flagship upstream subsidiary of NNPC Limited, achieved a record production level of 355,000 barrels of oil per day, its highest daily output since 1989.
The milestone marks a significant step forward for Nigeria’s upstream sector and reflects the company’s ongoing transformation anchored on efficiency and discipline.
The figures show genuine transformation: average daily production surged 52%, rising from 203,000 barrels per day in 2023 to 312,000 in 2025.
This growth is no coincidence; it stems from a clear strategy anchored on operational excellence, strong asset management, and structured field development. NEPL’s performance demonstrates that with the right leadership, strengthened systems, and a committed workforce, Nigeria’s upstream sector can overcome years of instability.
The achievement converts national ambition into measurable momentum. The presidential targets of 2 million barrels per day by 2027 and 3 million by 2030 have often appeared aspirational. NEPL’s delivery brings them closer to reality.
Speaking on the development, Engr. Bashir Bayo Ojulari, the Group CEO of NNPC Limited pointed out that the milestone is proof that Nigeria’s energy revival is not a dream; it is already happening.
“By showing its ability to exceed its own production benchmarks, NEPL confirms that the essential building blocks for scaling national output are being firmly established. The achievement signals that the machinery of production—equipment, processes, capabilities, and partnerships—can be driven with commercial discipline to produce real and positive outcomes,” Ojulari stated.
He noted that the achievement reinforces confidence nationally and across the global energy landscape, assuring partners and investors that Nigeria is committed to reaffirming its role as a dependable energy supplier.
Also speaking, Udy Ntia, the Executive Vice President, Upstream, observed that the milestone goes beyond the 355,000 bpd figure.
“In a sector where shortcuts can yield short-term wins but long-term damage, NEPL is making a different point: sustainable progress must rest on responsible operations. This ensures that scaling production does not compromise worker safety, community wellbeing, or environmental protection. It reinforces a shift away from extraction at any cost towards sustainable value creation—a core requirement for any modern energy company seeking global relevance,” Ntia added.
Nicolas Foucart, MD, NEPL also noted that NEPL’s record-setting performance mirrors the broader transformation unfolding across NNPC Limited.
“This is a story shaped by leadership that charts a clear course; by partnerships built on alignment and accountability; and by a workforce whose hard work is turning goals into measurable progress. Our people, our processes, and principles are the real engines behind this success. We are building for tomorrow, not just celebrating today,” Foucart stated.
He added: “For Nigerians, this accomplishment means far more than increased barrels; it translates into greater national revenue, stronger energy security, and a more resilient economic foundation. NEPL has not only produced more hydrocarbons; it has reignited belief in what Nigeria’s energy sector can achieve with the right systems, culture, and dedication.”
NNPC E&P Limited is a wholly-owned subsidiary of the Nigerian National Petroleum Company (NNPC) Limited involved in the exploration and production of oil and gas resources.
Energy
Abia State, NDPHC begin construction of 7.5MVA injection substation
The Abia state government, in partnership with the Niger Delta Power Holding Company (NDPHC), has commenced the construction of a 7.5MVA, 33/11kV Injection Substation in Umuahia.
The state governor, Governor Alex Otti, at the groundbreaking ceremony, described the project as a transformative initiative that will significantly boost power supply and enhance distribution reliability across the state, noting that the new infrastructure marks the beginning of a broader effort to modernise Abia’s power network.
The project is being executed by NDPHC under the National Integrated Power Project (NIPP). Its scope includes the construction of a 1km 33kV line, 1.2km of 11kV line, installation of two 300kVA distribution substations, and the provision of 2km of low-tension line.
Governor Otti commended the Federal Government and NDPHC for prioritising Abia in this strategic intervention. He also applauded President Bola Tinubu’s ongoing reforms in the power sector, which he said have expanded the national electricity framework to encourage stronger state participation, private sector investment, and global partnerships.
The governor further revealed that the state government has budgeted for an additional 7.5MVA Injection Substation in the 2026 fiscal year, which will raise the combined capacity in the Ogurube Layout area of Umuahia to 15MVA once completed.
NDPHC Managing Director/CEO, Jennifer Adighije, an engineer, who was represented at the event by Executive Director, Networks, Bello Babayo Bello, reaffirmed the company’s commitment to expanding access to reliable and sustainable electricity nationwide.
She said the Umuahia project reflects NDPHC’s mandate to empower communities and drive economic development.
When completed, the substation is expected to strengthen electricity supply, support small businesses, promote industrial development, and ultimately improve the quality of life for residents of Umuahia and surrounding communities.
Energy
NNPC/Heirs Energies lead responsible gas commercialisation at OML 17
The NNPC/Heirs Energies OML 17 Joint Venture yesterday advanced Nigeria’s gas commercialisation and environmental initiative with the symbolic signing of Gas Flare Commercialisation Agreements under the Nigerian Gas Flare Commercialisation Programme (NGFCP) and approved Non-NGFCP frameworks.
The ceremony, which held in Lagos, marks a significant transition from regulatory approvals to structured commercial execution, enabling flare gas volumes across OML 17 to be captured and deployed for productive use, including power generation, industrial applications, LPG and CNG, in alignment with Nigeria’s gas development priorities and energy-transition objectives.
The agreements was signed between Heirs Energies, as operator of the OML 17 JV and approved flare gas offtakers – AUT Gas, Twems Energies, Gas & Power Infrastructure Development Limited (GPID), PCCD and Africa Gas & Transport Company Limited (AGTC) – under frameworks designed to eliminate routine flaring while converting previously wasted resources into economic value.
Speaking at the ceremony, the Chief Upstream Investment Officer, NNPC Upstream Investment Management Services (NUIMS), Seyi Omotowa, an engineer, representing NNPC Limited, described the milestone as a practical demonstration of Nigeria’s commitment to gas-based development.
“For us at NNPC Limited and NUIMS, flare gas commercialisation is not a compliance exercise; it is a strategic pathway to improving energy availability, deepening gas-based industrialisation and strengthening Nigeria’s position as a responsible energy producer. OML 17 has become a practical model of this vision, moving decisively from approval to delivery,” Omotowa said.
He commended Heirs Energies for disciplined execution and investment, noting that the JV continues to set benchmarks for operational delivery and gas development within Nigeria’s upstream sector.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Chief Executive, Engr. Gbenga Komolafe, who was represented by Senior Manager, Ojo Ezekiel, reaffirmed the Commission’s support for the project, describing flare gas commercialisation as a cornerstone of Nigeria’s decarbonisation pathway under the Petroleum Industry Act (PIA) 2021.
“This ceremony demonstrates Heirs Energies’ commitment to eliminating routine gas flaring across OML 17 and aligns fully with the Commission’s Gas Flare Commercialisation Programme and national energy and emission-reduction objectives,” Ezekiel said.
Heirs Energies’ Chief Executive Officer, Osa Igiehon, noted that the agreements reflect the company’s broader gas-led strategy and brownfield excellence approach, focused on creating long-term value for Nigeria.
“Gas sits at the heart of Nigeria’s development journey. Through disciplined investment, partnership with regulators and credible offtakers, and a clear execution focus, we are converting waste into value, strengthening domestic energy supply and supporting responsible operations across OML 17,” he said.
The NGFCP and Non-NGFCP flare gas projects build on recent operational progress by the OML 17 JV, including a significant increase in gas delivery to the domestic market through brownfield interventions and infrastructure optimisation. The JV has also continued to deepen its host-community partnerships through targeted healthcare interventions, education support and skills-development programmes across its areas of operation.
With the symbolic signing completed, the flare gas offtakers are expected to progress into full project implementation, working closely with the JV, regulators and communities to deliver commercial, environmental and social outcomes.
The OML 17 NGFCP initiative reinforces Nigeria’s position as a gas-led economy, supporting domestic power generation, industrial growth and responsible resource development while advancing the country’s energy-transition objectives.
-
Art & Life8 years agoThese ’90s fashion trends are making a comeback in 2017
-
Entertainment8 years agoThe final 6 ‘Game of Thrones’ episodes might feel like a full season
-
Art & Life8 years agoAccording to Dior Couture, this taboo fashion accessory is back
-
Entertainment8 years agoThe old and New Edition cast comes together to perform
-
Sports8 years agoPhillies’ Aaron Altherr makes mind-boggling barehanded play
-
Business8 years agoThe 9 worst mistakes you can ever make at work
-
Entertainment8 years agoMod turns ‘Counter-Strike’ into a ‘Tekken’ clone with fighting chickens
-
Entertainment8 years agoDisney’s live-action Aladdin finally finds its stars
