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Marketers warn against disruption as Dangote plans direct fuel supply

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The Natural Oil and Gas Suppliers Association of Nigeria has warned that the Dangote Petroleum Refinery’s plan to bypass existing distribution channels and supply refined petroleum products directly to end-users would lead to a nationwide disruption, long-term product scarcity, and the collapse of existing supply networks.

The oil and gas suppliers called on the refinery to halt its plan and seek further dialogue before commencing the distribution of products to end users, urging it to learn from what happened to non-functional refineries under the management of the Nigerian National Petroleum Company Limited.

They also called on President Bola Tinubu to intervene in the issue, stressing that Dangote alone cannot handle nationwide distribution of products sustainably. The NOGASA National President, Bennett Korie, made the call during the association’s Annual General Meeting held on Thursday in Abuja.

However, an official of the Dangote Group described the position of the dealers as anti-Nigeria, arguing that the plan by Dangote was to remove the cost of logistics in the movement of petrol nationwide.

Speaking with The PUNCH, while reacting to the development, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, said Nigerians should not rejoice yet over the announcement by the Dangote refinery, as he backed the sister oil marketing group, NOGASA.

Meanwhile, it was observed on Thursday that the prices of petrol at depots spiked by up to seven per cent, from the N815 per litre it sold on Wednesday to N870 per litre on Thursday.

Recall that the $20bn Dangote refinery recently disclosed plans to deploy 4,000 new Compressed Natural Gas-powered tankers for nationwide distribution of petrol and diesel directly to marketers, manufacturers, telecom firms, aviation companies, and other large consumers, bypassing traditional depots and intermediaries.

The refinery took delivery of 4,000 new CNG-powered trucks for its fuel distribution initiative, scheduled to be launched on August 15. The initiative, which is intended to provide more efficient transportation across Nigeria and beyond, has been applauded by some industry experts. With the investment of N720bn, the initiative is expected to save Nigerians over N1.7tn annually, and lift 42 million Micro, Small, and Medium Enterprises by reducing energy costs and enhancing profitability.

The refinery said the strategic programme is part of its broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability, and supporting Nigeria’s economic development.

However, Korie, speaking in his address, said if existing retail outlets were forced out of business due to Dangote’s direct distribution approach, it would be difficult to revive the supply chain in the event of any disruption at the refinery.

He further warned that handling refining, distribution, and retail through filling stations as a single entity is unsustainable, citing the failed attempt by the Nigerian National Petroleum Company Limited at direct distribution. He stated that the state-owned refineries began to decline after the oil company ventured into retail distribution.

“We are pleading that Mr President should intervene in this matter by telling Dangote to slow down, and go by the rules of the game. Nobody’s against the refinery. If there’s anybody who supported Dangote Refinery more than any other organisation, it is this association.

“But when this issue came up, we said, no, we need to advise, we need to give you an idea how to go about it. What is important to us is that the refinery is blending, the product is coming out, and Nigerians are enjoying the product that is blended today.

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“Now, some Nigerians will be thinking maybe because we don’t want him to do this or because of competition. No, it is because we don’t want what happened to NNPCL to happen to Dangote Refinery. The reason is that, before now, NNPC refined products and distributed them through their subsidiary at that time.

“And everything was moving smoothly, it wasn’t bad. Until people who I think advised Dangote today, went to advise NNPC to start doing distribution directly, which is the filling station that you have in NNPC filling stations. As soon as this NNPC filling station started, that was when our refinery started going down,” Korie said, warning that the same fate could befall Dangote’s $20bn refinery if it follows a similar path.

Korie stressed that while the association fully supports the operations of the Dangote refinery, the decision to bypass traditional distributors poses a serious threat to existing supply structures and could replicate the challenges that undermined the NNPCL in the past.

He warned that handling refining, distribution, and retail through filling stations as a single entity is unsustainable.  “Because they were concentrating on their filling stations. I am not saying they are not paying attention to refineries, but you can’t do it alone. You are blending, you are refining, and at the same time operating, and again, add a filling station in your operation.

“You will have a problem. That is why today you have this problem of our refineries not working. So because of this, we now say, No, please don’t go there. Concentrate on this thing you are doing. You are doing good. You are finding the product good, sell to the marketers, marketers sell to the end users. Remove your hand from this direct distribution. It will bring you problems, and once you start solving that problem, you will not have time to fix the refinery or operate the refineries very well.

“So it’s important that you concentrate on this refinery. Blend enough for us and sell some to other countries. And that way, the job there will be stable, and our own here will be stable. We are capable of distributing the product. All we need you to do, blend, sell to depot owners, and they will go there and buy, and distribute to the end users. That way, you balance the system.”

He further expressed NOSAGA’s readiness to work with the Refinery to ensure that the business survives for the mutual benefit of all involved. The NOGASA  president added, “During our last meeting, we supported the completion of the refinery, but most of our members are afraid of the giant monopoly.

“The entire giant’s indirect distribution of their products with the purchase of 4,000 distribution trucks for nationwide supply makes us worried about staying in the business. We wish to assure that they consider the small suppliers who depend on those business employee levels. We need to work with them to ensure that our business survives for the mutual benefit of all involved.”

Korie noted the economic impact of such centralisation, stating that thousands of Nigerians working across over 50,000 filling stations and logistics chains could be displaced if independent marketers are sidelined. He called on the government to facilitate dialogue between Dangote Group and key industry stakeholders, including major and independent Petroleum marketers among others.

Also speaking, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, said Nigerians should not rejoice yet over the announcement by the Dangote refinery to distribute petroleum products across the country, as there is always payback time.

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“We don’t need to pretend that we don’t know what’s going to happen. Because many of us are clapping hands, one company wants to refine, one company wants to stock, one company wants to do the logistics of distribution, and one company wants to fix prices. So that one company is going to be both a businessman and a regulator. And so many Nigerians don’t seem to understand the dynamics of the difficulty,” he said.

Reflecting on what happened in the cement industry, he said, “Because I want to draw your attention to the fact that we also have similar situations in our cement industry, where you are seeing the same trucks supplying cement.

“So, I’m sure you have seen in all your homes and villages and cities, those small, small container shops that are for cement. So, where the cement is not produced from the factory, and also distributed to those very critical distribution centres, have you bought cement for N115 again? From N115, we are buying now for 10,000 plus,” he said.

He raised concerns over what he described as Dangote’s attempt to dominate the market, noting that retail outlet operators are losing as much as N80 per litre due to sudden price adjustments.

The PETROAN boss argued that with a production capacity of 650,000 barrels per day, which has now been upgraded to 700,000 barrels, the Dangote  refinery should be competing with global refineries, and not operate as a distributor in the downstream, adding that NOGASA, NATO, and PTT could effectively do the job of distribution of the products.

“Just yesterday, some of them began selling products at N817 per litre. That represents a loss of over N80 per litre for filling station operators. When you consider the volume of product involved, it becomes clear that, very soon, salaries may not be paid.

“The association is therefore calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Minister of State for Petroleum Resources to urgently implement pricing regulations, reinforce market oversight, ensure crude oil is accessible to local refineries, and take deliberate steps to protect existing jobs in the sector,” Gillis Harry noted.

Dangote reacts

A senior official of the Dangote Group expressed surprise that an organisation could threaten to disrupt fuel supply because an individual wants to distribute fuel free of charge to Nigerians.

“Why would they want to disrupt? Somebody wants to distribute fuel for free (without the cost of logistics). We are not asking for money. We are saying part of the reason why PMS is expensive is because of the logistics, and we are removing the cost. We are removing that money. So, why are they angry?  Why the disruption, if not anti-Nigeria? They hate Nigeria; they don’t want this country to prosper.

“If someone wants to do something free, we are not asking for money. We are not saying, once we use our truck to supply you with PMS, you are going to pay us money. Why are you angry that an individual, a private sector person, wants to do that? Why are you angry? Why are you pained? And is this market not big enough for everybody to survive?” the official, who spoke in confidence because he was not permitted to talk on the matter, asked.

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The official discountenanced claims that NOGASA members would lose their source of livelihood.

“How will they lose their job? The market is big enough. You heard what the NNPC man said yesterday about the fact that they are not willing to sell the Port Harcourt refinery. And there are other modular refineries everywhere. Some people are working. They will still be in use. They will still be useful.

“Okay, we are starting with 4,000 trucks. There are 774 Local Governments in Nigeria. Can the 4,000 trucks really go around the 774 LGs? No. Why are we deceiving ourselves? Why are we anti-Nigeria? Why don’t we want this country to progress and develop? Absolutely, I don’t see any need for them to go on strike. Nobody’s threatening anybody. Nobody’s interested in a monopoly. This country can thrive with everybody doing their business. Dangote is not saying, ‘don’t do your business,” the official stated.

IPMAN National Vice Chairman, Hammed Fashola, said he would not know whether or not NOGASA members have the strength to disrupt fuel supply in Nigeria.

According to him, everybody is trying to survive in the oil business as they perceived Dangote’s plan as a means of cutting them out of business.

“Everybody wants to make sure they remain in business. You know, there have been a lot of reactions to that move by Dangote. Naturally, transporters will not be happy, and intermediaries won’t like it. You know this thing has a value chain, and there are a lot of people playing one role or the other in the supply chain.

“I believe Dangote, too, will be listening to the stakeholders. So, I think at the end of the day, everybody will be on the same page. Let’s see what happens. I don’t know their strength. I told you I’m not a member. So, I cannot tell if they have the strength to disrupt fuel supply. Before they can say they want to disrupt the supply, I think maybe they have the capacity. But let’s wait and see,” Fashola said.

Depots hike prices

Meanwhile, depot prices for petrol spiked by up to seven per cent, from the N815 per litre it sold to customers on Wednesday to N870 per litre on Thursday. This was as Dangote refinery abruptly suspended petrol sales across its terminals, deepening supply uncertainty and accelerating price movements nationwide.

In a notice titled “Important Update on DPRP Collection Account for PMS”, Dangote refinery instructed marketers to halt all payments for PMS loading at its gantry, effectively freezing further allocations. “Please be advised that, effective immediately, all payments to the DPRP collection account for PMS gantry should be placed on hold,” the internal memo read. “Further updates will be communicated shortly.”

Earlier this week, importers dropped petrol prices below the price offered by the Dangote Petroleum Refinery, sparking a new wave of competition.

But fresh findings have now revealed that depot owners have hiked their prices based on the increased crude price, indicating a possible increase in pump price next week nationwide. Findings by our correspondent using petroleumprice.ng showed that six depots including NIPCO, Aiteo, Rain oil, MenJ, Sahara and Aipec have all effected an increase to N870 per litre. The Dangote refinery depot sold slightly less at N865 per litre.

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Bank recapitalisation: Local investors provide 72% of N4.6tn

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The Central Bank of Nigeria (CBN) on Wednesday said domestic investors accounted for the bulk of funds raised under its banking sector recapitalisation programme, contributing 72.55 per cent of the N4.65tn total capital secured by lenders.

The apex bank disclosed this in a statement marking the conclusion of the exercise, which began in March 2024 and saw 33 banks meet the new minimum capital requirements.

The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.

According to the CBN, Nigerian investors provided about N3.37tn of the total capital raised, underscoring strong domestic confidence in the banking sector, while foreign investors accounted for the remaining 27.45 per cent.

“Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy,” the statement said.

Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”

The bank confirmed that 33 lenders had met the revised capital thresholds, while a few others were still undergoing regulatory and judicial processes.

“The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme,” it stated.

“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.

“All banks remain fully operational, ensuring continued access to banking services for customers.”

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The regulator stressed that the recapitalisation exercise was completed without disrupting banking operations nationwide, noting that key prudential indicators, particularly capital adequacy ratios, had improved and remained above global Basel benchmarks.

Minimum capital adequacy ratios were pegged at 10 per cent for regional and national banks and 15 per cent for banks with international licences.

The CBN added that the exercise coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall system stability.

To sustain the gains, the apex bank said it had strengthened its risk-based supervision framework, including periodic stress tests and requirements for adequate capital buffers.

It added that supervisory and prudential guidelines would be reviewed regularly to improve governance, risk management, and resilience across the sector.

“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement added.

Meanwhile, data from the National Bureau of Statistics showed that foreign capital inflows into the banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025 from $7.00bn in 2024, reflecting strong investor interest during the recapitalisation drive.

However, the Centre for the Promotion of Private Enterprise has cautioned that despite the strengthened banking system, credit to small businesses remains weak, warning that the benefits of the reforms are yet to fully impact the real economy.

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Court freezes N448m assets in Keystone Bank debt recovery suit

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The Federal High Court in Lagos has ordered the freezing of funds and assets valued at N448,263,172.41 in a debt recovery suit instituted by Keystone Bank Limited against five defendants.

The order was made on March 26, 2026, by Justice Chukwujekwu Aneke following an ex parte application moved by Keystone Bank’s counsel Mofesomo Tayo-Oyetibo (SAN), against Relic Resources, Olufunmilayo Emmanuella Alabi, Uwadiale Donald Agenmonmen, The Magnificent Multi Services Limited, and Raedial Farms Limited.

In his ruling, Justice Aneke granted a Mareva injunction restraining the defendants, whether by themselves, their agents, privies, or assigns, from withdrawing, transferring, dissipating, or otherwise dealing with funds, shares, dividends, and other financial instruments standing to their credit in any bank or financial institution in Nigeria, up to the sum in dispute.

The court further directed all banks and financial institutions within the jurisdiction to forthwith preserve any funds belonging to the defendants upon being served with the order.

The said institutions were also ordered to depose to affidavits within seven days of service, disclosing the balances in all accounts maintained by the defendants, together with the relevant statements of account.

In addition, the court granted a preservative order restraining the defendants from disposing of, alienating, or otherwise encumbering any movable or immovable property, including any future or contingent interests, up to the value of the alleged indebtedness.

The court also granted leave for substituted service of the originating and other court processes on the second and third defendants by courier delivery to their last known addresses.

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The matter was adjourned to April 9, 2026, for mention.

According to the originating processes before the court, the suit arises from a N500 million overdraft facility granted by the claimant to the first defendant on March 28, 2023, for a tenure of 365 days at an interest rate of 32 per cent per annum.

The claimant averred that the facility, initially secured by a $200,000 cash collateral and subsequently by a mortgaged property located at Itunu City, Epe, Lagos, expired on March 27, 2024, leaving an outstanding indebtedness of N448,263,172.41 as at October 31, 2024.

In the affidavit in support of the application, the claimant alleged that the facility was diverted for personal use by the third defendant and channelled through the fourth and fifth defendant companies.

It further contended that the first defendant is no longer a going concern and has failed, refused, and neglected to liquidate the outstanding indebtedness despite several demands made between May and October 2025.

The claimant also expressed apprehension that the defendants may dissipate or conceal their assets, thereby rendering nugatory any judgment that may be obtained in the suit, and consequently urged the court to grant the reliefs sought in the interest of justice.

After considering the application and submissions of learned silk, Justice Aneke granted all the reliefs sought and adjourned the matter to April 9, 2026, for further proceedings.

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Sanwo-Olu unveils Lagos 2026 economic blueprint, vows inclusive growth

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The Lagos State Governor, Babajide Sanwo-Olu, on Tuesday unveiled the 2026 edition of the Lagos Economic Development Update, reaffirming his administration’s commitment to driving inclusive growth and ensuring that economic progress translates into tangible benefits for all residents of the state.

The unveiling of this year’s outlook, held in Ikeja, provides an in-depth analysis of the state’s economic trajectory, capturing global, national, and local developments shaping Lagos’ growth outlook.

Represented by his deputy, Obafemi Hamzat, the governor described the report as more than a policy document, noting that it serves as a strategic compass for guiding economic direction and strengthening decision-making.

He added that despite global economic headwinds — including post-pandemic recovery challenges, inflationary pressures, and exchange rate fluctuations — the state has remained resilient through deliberate policies, fiscal discipline, and sustained investment in critical infrastructure.

“It is with a deep sense of responsibility and optimism that I join you today to officially launch the third edition of the Lagos Economic Development Update — LEDU 2026.

“This platform has evolved beyond a mere policy document; it has become a compass guiding our economic direction, shaping decisions, and reinforcing our commitment to building a resilient, inclusive, and prosperous Lagos,” he said.

He noted that while the global economic environment has remained unpredictable, Lagos has stayed on course through “clarity, discipline, and foresight,” anchored on the T.H.E.M.E.S+ Agenda.

According to him, the state had strengthened its fiscal framework, improved revenue generation, and invested in infrastructure critical to long-term growth.

Sanwo-Olu further highlighted progress recorded since the inception of LEDU, including the expansion of the state’s economic base driven by innovation, entrepreneurship, and digitalisation; improved efficiency in revenue systems; and sustained infrastructure development spanning roads, ports, energy, and urban planning.

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He added that continued investment in human capital remains central, as “people are the true engine of growth.”

Speaking on the theme of this year’s report, “Consolidating Resilience, Advancing Competitiveness, Delivering Shared Prosperity,” the governor said it reflects Lagos’ current economic priorities.

He explained that consolidating resilience involves strengthening institutions and fiscal discipline, while advancing competitiveness requires boosting productivity, innovation, and investment.

Delivering shared prosperity, he added, means ensuring growth translates into jobs, expanded opportunities, and improved livelihoods for residents.

Looking ahead, he reaffirmed the administration’s commitment to economic diversification, private sector-led growth, data-driven governance, sustainable urban development, and social inclusion.

He also stressed the importance of partnerships with the private sector, development institutions, civil society, and the international community in achieving the state’s development goals.

“As we launch this edition of LEDU, I urge all stakeholders to engage actively, strengthen collaboration, and align with our shared vision.

“We have built resilience; now we must translate it into sustained competitiveness and ensure that growth delivers tangible prosperity for every Lagosian,” he said.

Also speaking, the state Commissioner for Economic Planning and Budget, Ope George, said Lagos has demonstrated remarkable resilience in navigating both global and domestic economic challenges.

“Lagos is not just responding to economic shocks — we are building systems that make us stronger because of them,” he said, noting that deliberate policies, disciplined fiscal management, and strategic investments have reinforced the state’s position as a leading subnational economy in Africa.

He added that the state would continue to prioritise economic diversification, private sector growth, sustainable urban development, and social inclusion, stressing that growth must be measured not only by numbers but also by its impact on people’s lives.

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In his goodwill message, Chief Consultant at B. Adedipe Associates Limited, Biodun Adedipe, described the LEDU initiative as a credible framework for tracking economic performance and refining development strategies.

He noted that Lagos remains central to Nigeria’s economy, adding that its continued growth signals broader national progress.

“If Lagos works, a significant share of Nigeria’s commerce works,” he said, expressing optimism about the state’s economic future.

Meanwhile, the Chief Executive Officer of the Nigerian Economic Summit Group, Tayo Adeloju, urged the state government to prioritise affordable housing as a critical driver of shared prosperity.

He noted that high housing costs could limit upward mobility for low-income earners, stressing that making housing more accessible would enhance living standards and support inclusive growth.

Adeloju added that sustained fiscal discipline, improved service delivery, and a broader productive base would further strengthen Lagos’ position among Africa’s leading megacity economies.

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