Oil & Energy
Hardship: NNPC Caps Petrol Retail Price At N1,350 For 30 Days
As part of Federal Government’s measures to cushion the impact of rising global crude oil prices on Nigerian households, the Nigerian National Petroleum Company (NNPC) Limited has agreed to forgo its petrol retail profit margin and sell the product at cost for 30 days.
The measure, backed by President Bola Tinubu, was announced last Thursday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, alongside other interventions aimed at moderating fuel prices, reducing transport costs and supporting vulnerable households.
A press statement signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, last week, explained that under the arrangement, NNPC Retail would sell petrol without adding its retail profit margin, meaning that if its landing cost is ?1,300 per litre, the company will sell at the same price.
The company said the intervention was intended particularly to ease the burden on vulnerable households and commercial transport operators amid volatility in global crude oil and petrol prices.
Oyedele expressed hopes that other fuel marketers would emulate NNPC, noting that the current surge in prices was not expected to last long.
He, however, cautioned against interpreting the initiative as a return to petrol subsidy, which was removed on May 29, 2023.
The minister also announced plans for forward sales of crude oil to domestic refineries. He said the arrangement, alongside increased production and the release of previously committed crude, was expected to shield domestic petrol prices from fluctuations in the international market.
Oyedele said the arrangement was neither a subsidy nor price control but a mechanism for smoothing out price fluctuations over time.
He explained that maintaining prices at a relatively stable level would provide greater certainty for households and businesses than allowing sharp increases followed by subsequent reductions.
The minister said the ceiling would be reviewed monthly, with adjustments made in line with prevailing costs and the figures published to ensure transparency.
By: Lady Godknows Ogbulu
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The Rural Electrification Agency ( REA) has secured a N100bn financing facility from Stanbic IBTC Bank to support renewable energy developers and expand electricity access to unserved and underserved communities across Nigeria.
The Managing Director/CEO, Rural Electrification Agency, Abba Aliyu, who made this known in a statement, said the agreement would provide eligible developers participating in REA-led electrification programmes, including the World Bank-funded Distributed Access through Renewable Energy Scale-up Project, with access to finance for equipment procurement.
Under the memorandum of understanding signed between the two organisations, Stanbic IBTC would provide a N100bn revolving loan facility with a one-year tenor to eligible project developers.
The amount accessible to each developer would be determined on a case-by-case basis, subject to the underlying grant agreement, the developer’s capacity and the bank’s credit assessment.
Aliyu said the facility would help address one of the major challenges facing renewable energy project delivery, which is access to capital after project approval.
“One of the lessons from our experience under the Nigeria Electrification Project is that having a viable project and an approved grant is not always enough. Developers also need access to the capital required to procure equipment and commence implementation.
“This partnership with Stanbic IBTC is therefore important because it connects our results-based financing framework with commercial finance, giving credible developers a stronger pathway to move projects from approval to delivery and, ultimately, connect more Nigerians to reliable electricity,” he stated.
The partnership is expected to reduce financing constraints that have previously affected the pace of renewable energy project delivery.
The Head, Energy and Infrastructure, Stanbic IBTC Bank, Richard Inegbedion, said the bank’s participation reflected its commitment to infrastructure development and Nigeria’s energy transition.
“The energy access challenge requires strong collaboration between government, developers and financial institutions. At Stanbic IBTC, we recognise that renewable energy projects require financing structures that understand both the opportunities and the realities of the sector.
“Through this partnership with REA, we are creating a financing platform that can help eligible developers access the capital they need to execute projects, while contributing to the development of sustainable energy infrastructure and economic activity across Nigeria,” he noted.
Representing the renewable energy developer community, the Managing Director/CEO, Asolar Systems Nigeria Limited, Hakeem Shagaya, maintained that appropriately structured financing would be critical to delivering renewable energy solutions at the scale required under DARES.
“For developers, access to finance is one of the most important factors determining how quickly an approved renewable energy project can move into implementation.
“A financing framework that is aligned with REA’s result-based structure can significantly improve our ability to procure equipment, mobilise resources and deliver projects within the required timelines.
“ We welcome this partnership because it brings the developer, government and financial sector closer together around a common objective, delivering reliable electricity to communities that need it,” Shagaya submitted.
Beyond the lending facility, Stanbic IBTC will support the transaction through a collection platform designed to enhance financial inclusion and project sustainability.
The bank would also provide financial advisory solutions, including linking developers with original equipment manufacturers and providing international trade tools where practicable.
REA would continue to provide programme-side oversight through developer prequalification, project approvals, grant agreements, authentication of relevant documentation, among others.
The agency said the collaboration was expected to strengthen private sector participation in Nigeria’s electricity access drive by improving access to debt financing, reducing financing-related delays and enabling developers to mobilise equipment and resources more effectively.
According to the statement, the MoU would remain in force throughout the tenure of the World Bank-funded DARES programme managed by REA and will terminate at the end of the programme and upon full repayment of facilities disbursed under the arrangement, subject to the terms of the agreement.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is targeting the recovery of more than 788,000 barrels of oil production per day currently shut-in across 63 operators, while pushing offshore projects estimated at between $30 billion and $50 billion towards Final Investment Decisions (FID).
The commission is also accelerating technical and regulatory approvals to support production growth.
The Commission also plans to use its newly launched 2026 licensing round to deepen exploration and attract fresh capital into Nigeria’s upstream sector, offering 40 oil and gas assets to prospective investors.
Speaking at the 2026 Energy Conference of the Association of Energy Correspondents of Nigeria (NAEC), with the theme “Access to Assets: Empowering Players and Driving Growth,” held in Lagos, the NUPRC’s Chief Executive, Oritsemeyiwa Eyesan, noted that restoring shut-in production, accelerating offshore developments and improving access to petroleum assets are central to Nigeria’s efforts to increase output and move closer to its long-term production ambitions.
Represented by the Assistant Director, Services Department, NUPRC, Mrs. Patricia Temisan-Olatunde, Eyesan explained that the commission’s strategy was aimed at removing investment barriers, increasing production and expanding government revenue.
Eyesan said more than 788,000bpd production has been identified as shut in across 63 operators.
She noted that recovering a substantial portion of that volume could provide a faster route to increased national production than waiting for newly awarded exploration acreage to move through the lengthy development cycle.
This year alone, she said, 77 wells have been successfully re-entered, while 128 wells have been approved for drilling.
“The measures are being implemented alongside executive orders issued by President Bola Tinubu aimed at encouraging investment in Nigeria’s deep offshore petroleum sector. The combined reforms and accelerated approvals were intended to reduce delays and improve the investment environment for upstream operators,” she said.
While noting the launch of its 2026 licensing round with 40 assets on offer, following previous licensing exercises conducted in 2022/2023, 2024 and 2025, Eyesan said the successive rounds were designed to deepen exploration, create jobs, increase production and expand government revenue.
At the 2025 licensing round, 50 oil and gas blocks were offered, attracting interest from nearly 300 companies, with 37 assets eventually taken up, including acreages in frontier basins.
Eyesan disclosed that for the first time, the Anambra Basin, Benue Trough, Chad Basin and Benin Basin attracted significant investor interest, indicating growing attention beyond Nigeria’s traditional Niger Delta producing region.
She said the assets offered in the 2025 round, subject to successful development, have the potential to add about 500 million barrels to Nigeria’s crude oil reserve adding that they are also expected to contribute at least 300,000 bpd of crude oil and condensate within five years, alongside an estimated 20 trillion cubic feet of additional gas reserves and 500 million standard cubic feet per day of gas production.
The potential output, Eyesan said, would support Nigeria’s ambition of reaching three million barrels per day by 2030 and contribute to the Federal Government’s Decade of Gas initiative.
The Commission stressed that the success of licensing rounds should ultimately be measured by what happens after awards are made.
Eyesan said access to petroleum assets must translate into actual development and production, rather than simply the allocation of acreage.
The NUPRC, she further explained, is therefore seeking to make the licensing process more predictable by publishing eligibility requirements, bid parameters, evaluation criteria and conditions of award ahead of the 2026 exercise.
Bids will be submitted through a digital portal and evaluated according to published criteria, while the Commission said it would strengthen communication with bidders through its licensing portal, virtual data room, webinars and a dedicated help desk.
The objective, Eyesan said, was to ensure that eligible Nigerians and international investors compete on a level playing field.
“No bidder will know what others do nott material clarifications would be shared with all participants” she stated, adding that beyond new licensing, the Commission is focusing on bringing existing capacity back into production
Poised to protect energy transition savings, the Federal Government has shelved plans to immediately ban solar panel imports following opposition from business leaders and renewable energy advocates.
The decision comes as Nigeria continues to depend heavily on imported solar equipment to provide electricity to households and businesses struggling with unreliable grid supply, while millions of citizens remain without access to electricity.
It is also as opposition warned that restricting supplies before local manufacturers can meet demand could increase electricity costs and slow the country’s clean energy transition.
Minister of Innovation, Science and Technology, Kingsley Udeh, who announced the decision while speaking with newsmen at the weekend, assured that the government would focus on ensuring that solar panels sold in the country meet required standards rather than shutting out imported products.
Udeh said the government was determined to ensure that only quality solar products were available in the domestic market, whether locally manufactured or imported from reliable sources.
He said, “Covering the energy gap in Nigeria is part of what we are doing and is referred to as renewed hope solarisation project where we are taking off federal universities, institutions, special academic institutions. Giving them access to electricity. We can’t ban solar panel importation if we can’t produce locally. But we will wait to get to that point of manufacturing capabilities within Nigeria.
“Soon you will see that we only have in the Nigerian market standard solar panels, either manufactured in Nigeria or imported from reliable sources, and they’re all high standard to ensure that we have energy assets being supported by solar power or renewable energy”.
The announcement provides relief to solar importers, installers and consumers who had feared that an immediate restriction would disrupt supply, increase equipment prices and undermine investments in off-grid electricity systems.
However, energy stakeholders said the government must translate its commitment to local manufacturing into a clear policy framework that allows domestic production to expand without making solar power unaffordable.
Commenting, the President of the Renewable Energy Association of Nigeria, Ayo Ademilua, said members of the association supported the government’s ambition to develop a domestic solar manufacturing industry but warned that local factories were not yet equipped to meet the country’s demand in terms of volume and price.
“Our members share the Minister’s dream of a Nigeria that makes its own solar panels. Many of us are already investing in local assembly and manufacturing, and we want that industry to grow. But we have to be honest about where we are,” Ademilua said.
He added, “Solar has become a lifeline for millions of Nigerians the grid doesn’t reach: homes, hospitals, schools, farms and small businesses. Local production is growing, but it can’t yet meet that demand in volume or price. A ban now would have raised costs, stalled projects and put the progress of the last decade at risk.”
Ademilua’s comments highlight the challenge facing the government as it seeks to promote local manufacturing while maintaining access to affordable renewable energy.
Also, the Executive Director of the Global Initiative for Food Security and Ecosystem Preservation, Dr David Michael, said the government should pursue domestic manufacturing without compromising access to affordable clean energy.
“Nigeria shouldn’t have to choose between building a domestic solar industry and making clean energy affordable for its people. The government’s decision is a welcome recognition that both must go hand in hand,” Michael said.
He added, “The priority now is a clear, long-term plan that attracts investment in local manufacturing while ensuring millions of Nigerians can access the affordable, reliable electricity they urgently need.”
On his part, the Nigeria Campaign Director of the Secure Energy Project, Joseph Ibrahim, also welcomed the decision, describing affordable solar access as a national priority at a time when millions of people continue to face electricity supply challenges.
“This is a welcome step for Nigeria’s clean energy future. At a time when millions of Nigerians still struggle to access reliable electricity, keeping solar panels affordable and accessible must remain a national priority,” Ibrahim said.
He added, “We welcome the government’s recognition that building local manufacturing capacity takes time, investment and the right support. This has been our position as the Solar Power Nigeria coalition from the beginning.”
Ibrahim called for a long-term policy that would support domestic manufacturers, attract investment and ensure that locally produced panels could eventually compete with imports on price and quality.
“The priority now must be to develop a clear, long-term plan that supports local manufacturers, attracts investment and ensures that solar remains affordable and accessible for Nigerian households and businesses,” he said.
The debate advocates are now calling for a phased transition of three to five years, supported by published timelines, incentives for manufacturers and measurable targets for expanding local production.
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