Oil & Energy

2017: Nigeria’s Energy Sector In Retrospect

Published

8 years ago

January 1, 2018

For the Nigeria’s oil and energy sector, the year 2017 will remain contentious in the annals of its activities. A cursory look at the sector during the year under review indicates that it went through one of its most challenging moments in the nation’s history.
Apart from the most glaring challenge of contending with the constant rise of the price of crude oil at the international market, the sector faced a lot of internal tussles and schisms on the local stage, with key stakeholders as actors in the evolving conflicts and the Nigerian masses as victims.
The Nigeria National, Petroleum Corporation, (NNPC) was caught in a crisis of interest as the Group Managing Director (GMD) of the corporation, Maikanti Baru and the Minister of State for Petroleum, Dr Ibe Kachikwu, traded blames, accusations and counter-accusations over alleged contract scam and lack of due process in the running of the (NNPC). The conflict of interest in the NNPC dominated the public domain for a while, with shocking revelations of overloaded contract figures and skewed appointment.
The tension was however, subsumed by the Presidency on a note considered by pundits as “partisan compromise” at the disadvantage of the Nigerian masses, who needed proper explanation of the real issues in contention.
Shortly, after the Baru/Kachikwu debacle, came the escalating fuel scarcity across the entire country. In the face of the biting fuel scarcity across the country, the major opposition party, at the centre, the Peoples Democratic Party (PDP), accused the Federal Government of covering up huge sleazes directly involving the ruling All Progressives Congress (APC), especially in the alleged diversion of fund in oil subsidy payouts, resulting in massive fraud in the oil regime.
The PDP, in a press statement said, the Jonathan’s administration ensured a domestic production of 5 million litres out of the 25 million litres daily domestic consumption in the country, but the present administration had failed to make any remarkable impact in the sector.
According to the PDP, the APC paid itself N1.4b daily for fuel importation through the NNPC, which is the sole importer and price moderator in the oil sector.
The development was said to have dimmed the expectations of private importers and market forces to leverage on the scrapping of subsidy and ushering in of a regime of partial deregulation of the downstream sector.
Vice President of Nigeria, Prof Yemi Osinbajo however justified the removal of subsidy saying, “The Central Bank of Nigeria (CBN) did not have enough,” with oil earnings dipping to $550m in April, while the amount required for oil importation alone gulped about $225m.
During the year under review, critical stakeholders affirmed that oil and gas sector in the country went through great turbulence and inflicted panic on Nigerians. Commenting on the fuel crisis in the country, President of the Nigeria Association of Petroleum Explorations (NAPE) faulted the Federal Government’s pegging of the foreign exchange rate and the pump price of petrol.
He pointed out that the lack of flow of foreign exchange, denied private marketers access to fund and called for total removal of subsidy on petroleum. The Depot and Products Marketers Association (DAPPMA), also accused NNPC of denying its members adequate supply and allocation of products, thereby causing the scarcity of petroleum products across the country.
Executive Secretary of DAPPMA Olufemi Adewole, disclosed in a media report that the NNPC and its subsidiaries were into some shady deals which has resulted into acute scarcity of products and inflicted pains on Nigerians. He urged the corporation to ensure adequate supply of products to its members to save Nigerians from further sufferings.
NNPC, however denied the allegations that it denied DAPPMA members and the Independent Petroleum Marketers Association (IPMAN) of the supply of product, especially PMS. The NNPC said members of DAPPMA have taken receipt of products from the Pipeline Products Marketing Company (PPMC) in substantial volumes and currently owed the company N26.7b as at December 21st, 2017.
NNPC further promised to improve on the glaring shortcomings in the supply of products by providing 1.2b litres in January 2018, translating to about 40 million litres per day. The general consumption rate of Nigerian is however estimated at 700 trucks, which is about 27 to 30 million litres per day.
The alleged increase of petroleum pump price was also dismissed by the corporation, as it insisted that the ex-depot price of N133.28 per litre would be maintained to stabilise the government’s official price of N145 per litre.
In 2017, the federal government also commenced the implementation of the Nigeria Gas Master Plan (NGMP), as it awarded the $2.8bn gas pipeline contract designed to run from Ajaokuta to Kano. The 614 kilometre 40-inch pipeline contract was presented by the Minister of State for Petroleum, Dr Ibe Kachikwu to the Federal Executive Council, for approval in the last quarter of 2017.
The award of the gas pipeline contract marked the beginning of the implementation of the first phase of the master plan that was approved in 2016. The project is designed to transport additional gas supply from upstream producers to various demand points at the cost of N7.7bn.
In its bid to improve the Nigeria power sector, the federal government also launched the power sector reforms recovery programme, an action plan designed for sweeping restructuring of the 11 Electricity Distribution Companies (DISCOS) for effective service delivery. The power sector reforms recovery programme was launched by the Minister of Works, Power and Housing, Babatunde Fashola at a stakeholder’s meeting held in Abuja also in the last quarter of 2017.
In the action plan, the Nigerian Electricity Regulatory Commission (NERC) is to engage the DISCOS on revised business plan to meet up their responsibilities in the country’s privatised electricity market. Stakeholders also canvassed for the full liberalisation of electricity to improve service delivery.
The Nigeria Society of Engineers in a stakeholders’ conference on the diversification of the Nigerian economy held in Port Harcourt in the later part of the year, urged the government to consider technocrats in the allocation of DISCOS, noting that such initiative would enhance service delivery in the sector.
During the year under review, the Nigeria Content Development and Monitoring Board (NCDMB) also made moves to consolidate content development in the oil and gas industry.
Executive Director of the (NCDMB), Engineer Simbi Wabote, engaged key stakeholders across the country through workshop and seminars organised by the board on the need for strict implementation of the Nigeria Oil and Gas Industry Content Development (NOGICD) act.

Taneh Beemene

Oil & Energy

Rivers PETROAN Elects 12-Member Executive

Published

9 hours ago

May 18, 2026

The Tide

The Petroleum Products Retail Owners Association of Nigeria (PETROAN), Rivers State Branch, has elected a 12 – member executive to steer the affairs of the association for the next four years.

The executive, elected during the Annual General Meeting (AGM) of the association, at it’s secretariat in Port Harcourt, and sworn in immediately after the election, was mandated to, among other things, tackle the adulteration of petroleum products as well as address irregularities in meter readings across the state.

The newly elected executive include, Pastor Ezekiel I. Eletuo as Chairman, Kanu Addeson C. as Vice Chairman , Dr. Ejike Jonathan Nnbuihe as Secretary, Fidelis A.Inaku as Treasurer and Lady C. N. Ekejiuba as Financial Secretary.

Others are Anaenye Anthony as Publicity Secretary, Arc. Kingsley O. Anyino as Organising Secretary, Nze Peter Ezenwa as Chief Whip, and Sunny Williams as Auditor.

Other members of the executive included Chidiebere Ronel Akwara as Welfare Officer, Ibe Chimaobi C. as Legal Adviser, and Emetoh Chizoba as Assistant Secretary.

Inaugurating the new leadership, PETROAN Zonal Chairman, High Chief Sunny G. Nkpe, charged the team to build on the achievements of the outgoing executive.

He urged them to collaborate with stakeholders in the petroleum sector to ensure industry stability and address issues of multiple taxation.

Nkpe who emphasized the need for transparency, accountability, and an open-door policy in administering the union, insisted these principles remained crucial in advancing the association’s objectives and improving members’ welfare.

The zonal chairman also commended the outgoing executive for their accomplishments during their tenure and for conducting a smooth transition process.

He further described their efforts as instrumental in strengthening the union’s standing in the state.

In his acceptance speech, the new Chairman, Pastor Ezekiel I. Eletuo, thanked members for their confidence and pledged to improve on the foundations laid by the previous administration.

He promised his leadership would be guided by transparency, accountability, fairness, unity, and integrity.

Eletuo called on all members to support the new executive in its efforts to elevate the association.

Also speaking, the immediate past Chairman, of the association, Sir Chilam Francis Dimkpa, expressed appreciation to members for their support during his administration and stressed the need for them to extend the same cooperation to the new leadership.

Dimkpa highlighted key achievements of his tenure to include capacity building for members, increased union visibility through media advocacy, and the establishment of stronger ties with stakeholders, corporate organisations, and individuals.

He also acknowledged the support of the state government, the Police, the Department of State Services (DSS) and the Nigeria Security and Civil Defence Corps (NSCDC).

Stakeholders present at the event also delivered their goodwill messages.

Highlights of the event included administration of oath of office to the new executive and the presentation of certificates of return by the zonal chairman. .

By: Amadi Akujobi

Oil & Energy

FG Intensifies Efforts To Reposition Tourism Sector

Published

11 hours ago

May 18, 2026

The Tide

The Federal Government has intensified efforts towards reposition Nigeria’s hospitality and tourism industry for global competitiveness, aimed at strengthening regulation, professionalism and workforce standards across the sector.

This was made known last week when the National Institute for Hospitality and Tourism (NIHOTOUR) conferred fellowships, inducted professionals and inaugurated the governing boards of the Hospitality and Tourism Sector Skills Council of Nigeria (HTSSCN) in Abuja.

The high-profile event, held at Merit House, Maitama, drew senior government officials, regulators, tourism operators, cultural institutions, hospitality investors and development partners in what stakeholders described as a major institutional shift .

Government also formally inducted registered practitioners into various professional categories while also inaugurating the Board of Trustees and Board of Directors of the HTSSCN, an employer-led platform designed to align workforce competencies with industry expectations.

Speaking at the event, the Minister of Art, Culture, Tourism and the Creative Economy, Hannatu Musa Musawa, said the initiative represented a strategic intervention to strengthen accountability, standards and institutional coordination within Nigeria’s tourism and hospitality ecosystem.

According to the minister, Nigeria’s vast cultural assets, tourism destinations and creative talents can only translate into sustainable economic value through professionalism, regulation and globally accepted operational standards.

She noted that tourism and hospitality industry remains one of the fastest-growing sectors globally, contributing significantly to employment generation, foreign exchange earnings and cultural diplomacy.

Musawa explained that NIHOTOUR Establishment Act has expanded the institute’s mandate beyond training, positioning it as a regulatory and certification authority for hospitality, tourism and travel practitioners in the country.

“No sector can attain sustainable growth without structure, standards, institutional coordination and skilled professionals,” she said, stressing the need for stronger collaboration between government agencies, operators, training institutions and private sector stakeholders.

In his keynote address, the Director-General and Chief Executive Officer of NIHOTOUR, Abisoye Fagade, described the event as a historic turning point in the formalisation of Nigeria’s tourism and hospitality industry.

Fagade said the induction of practitioners, conferment of fellowships and inauguration of the HTSSCN governing boards marked the beginning of a new era of institutional governance, professional recognition and sector-wide coordination.

“Regulation and standardisation are no longer optional; they are economic necessities if Nigeria truly intends to compete globally,” he stated.

By: Nkpemenyie Mcdominic, Lagos

Oil & Energy

Big Oil Reconsiders Previously Unattractive Destinations

Published

11 hours ago

May 18, 2026

The Tide

The Middle Eastern crisis has prompted a reprioritization among international oil companies. Previously unattractive drilling destinations are suddenly looking quite attractive—even Alaska.

The oldest oil and gas producing part of the United States has for years been out of the spotlight as the industry moves to cheaper and faster-growing locations. The only news of any substance about Alaska recently was the Biden administration’s approval of the Willow project, led by ConocoPhillips, which was set to boost the state’s oil output by 160,000 barrels daily, and Australian Santos’ Pikka project, set to start commercial production this year. That was years ago. Now, Big Oil is eager to drill in Alaska.

Earlier this month, a lease sale in the National Petroleum Reserve in Alaska attracted record bids, worth a total $163 million. Among the bidders were Exxon, Shell, and Repsol, with the latter already partnering with Santos on the Pikka development. And this may be just the beginning.

Related: Saudi Aramco Looks to Raise $10 Billion from Real Estate Asset Deal

The Bureau of Land Management offered 625 tracts across about 5.5 million acres for bid in the sale, revived at the end of last year by the Trump administration. No lease sales were held in the National Petroleum Reserve in Alaska under President Biden. Yet under Trump’s One Big Beautiful Bill, there will be a total of five lease sales in Alaska over the next ten years.

“With the imminent start-up of the Pikka project on the North Slope, the reversal in the decline of oil production in the great state of Alaska is going to help put more oil in the Pacific area at an important moment,” Repsol’s head of upstream operations, Francisco Gea, said as quoted by the Financial Times. Gea called Alaska “a fantastic opportunity”. The Pikka project, which has a price tag of $4.5 billion, will produce up to 80,000 barrels daily.

It is indeed a fantastic opportunity, at the very least because it is nowhere near the Middle East and as such is a highly secure energy exploration destination. Canada is in a similar position, by the way: the head of the International Energy Agency earlier this month told an industry event Canada had a golden opportunity to step in as a secure energy supplier in a world that’s currently 14 million barrels daily short on supply because of the Middle Eastern crisis.

Security, then, is what has prompted Big Oil to return to the North—even Shell, which left in 2015 after writing off as much as $7 billion on an unsuccessful drilling campaign hampered, among other things, by strong environmentalist opposition. According to the Financial Times, the supermajor’s decision to partake in the latest Alaska lease sale was surprising for analysts.

However, according to chief executive Wael Sawan, the lease sale concerns a different part of the state. “It is a very, very, very different part of Alaska that we have gone to,” he told the Financial Times. “This is an onshore exploration opportunity in a very well-established basin that has been producing for some time… So this is not offshore Alaska where we have had the challenges in the past.”

Crude oil is not the only thing drawing the energy industry to Alaska in these times of oil and gas trouble. Gas is also a magnet—in this case, in the form of the Alaska LNG project. Interest in the Alaska LNG export project has spiked since the war in the Middle East choked 20% of global LNG supply and sent Asian buyers scrambling for expensive spot cargoes.

Glenfarne Group, the majority owner and developer of the facility, aims to sign binding offtake agreements with buyers soon and advance final investment decisions to later in 2026 and early 2027, company executives told media earlier this year on the sidelines of an energy conference in Tokyo.

“There’s a real interest, particularly with everything happening in the Middle East right now. Everyone would like to get those (preliminary deals) turned into long-term agreements,” Adam Prestidge, president of Glenfarne Alaska LNG, told Reuters in March.

Alaska LNG is designed to deliver North Slope natural gas to Alaskans and export LNG to U.S. allies across the Pacific. An 800-mile pipeline is planned to transport the gas from the production centers in the North Slope to south-central Alaska for exports. In addition, multiple gas interconnection points will ensure meeting in-state gas demand.

The latest Alaska developments show clearly how the Middle East war has put energy security back in the spotlight, making previously challenging locations desirable again. With an estimated 1 billion barrels of oil supply wiped out of markets since the war began, according to Aramco’s Amin Nasser, alternative supply sources have become urgently needed, and not just for the short term. Even if the Strait of Hormuz reopens soon—which at the moment seems unlikely—energy security will in all probability remain a top priority both for energy producers and for consumers.

By Irina Slav for Oilprice.com