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India buys Nigerian crude as Dangote imports US oil

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Refineries in India are buying Nigerian crude while the country’s Dangote Petroleum Refinery is largely running on American oil.

In a twist that underscores the complexities of global oil trade, India’s state refiners are snapping up Nigerian crude oil while Africa’s largest refinery, located in Nigeria, is increasingly importing crude from the United States, a development that oil sector operators described as “oil trade irony” on Sunday.

Industry sources told Reuters that Indian Oil Corporation recently bought one million barrels of Nigeria’s Agbami crude for September delivery in a tender awarded to global trader Trafigura. The purchase is part of a broader sourcing spree that has seen Indian refiners secure millions of barrels from non-Russian sources.

Ironically, while Indian refiners are boosting purchases of Nigerian grades, the $20bn Dangote Petroleum Refinery in Lagos is relying heavily on US imports to feed its processing units. The refinery imported an average of 10 million barrels in July, saying it was increasingly relying on the US for its feedstock despite the naira-for-crude deal with the Federal Government.

Reuters reported that Indian Oil Corp and Bharat Petroleum have bought a million barrels of non-Russian crude for delivery in September and October after the US pressured India to halt purchases from Russia.

Indian state refiners had been largely absent from the spot market since 2022, instead becoming one of the few purchasers of cheaper Russian crude after Russia invaded Ukraine. However, they paused Russian purchases in late July after pressure from US President Donald Trump.

Over two million barrels of crude oil were said to have been bought from Nigeria for September and October deliveries in India. India’s second biggest state refiner BPCL bought barrels of oil through negotiations for September arrival, a source familiar with the purchases said.

That included one million barrels of Angola Girassol, one million barrels of US Mars, three million barrels of Abu Dhabi Murban, and two million barrels of Nigerian oil, according to Reuters.

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Dangote imports US oil

Data from commodities analytics firm, Kpler, showed that in July, US barrels accounted for about 60 per cent of Dangote’s 590,000 barrels per day of crude intake, with Nigerian grades making up the remaining 40 per cent.

In July, the Dangote refinery’s crude imports surged to a record 590 kbd—driven largely by US barrels overtaking Nigerian supply for the first time—amid ongoing domestic sourcing challenges, Kpler reports. The refinery is currently operating at 85 per cent of its nameplate capacity with plans to upgrade to 700,000 barrels per day.

As crude imports into the Dangote refinery surged to 590,000 bpd in July, the highest monthly volume on record, Kpler noted that US crude made up a substantial 370,000bpd (60 per cent) of the total, while Nigerian grades accounted for just 220,000 bpd (40 per cent), primarily comprising Amenam, Bonny Light, and Escravos.

“While WTI has held a significant share in Dangote’s import slate since March, this is the first time US crude has overtaken Nigerian supply—a shift driven by several factors,” Kpler reported. It stated that WTI has been more competitively priced than certain domestic options, especially as US barrels struggled to find traction in Asia amid rising OPEC+ output and multi-month lows in Murban spot premiums in May.

At the same time, the Dangote refinery had earlier said that securing domestic crude for the refinery had remained an ongoing challenge. Dangote and other local refineries have decried the low supply of crude to their facilities in conformity with the Domestic Crude Supply Obligations.

Dangote’s crude inventories rose to 6.73 million barrels in July, reflecting a 2.5 Mbbls month-on-month increase, suggesting that a portion of the elevated import volumes has been directed into storage.

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Meanwhile, Nigeria’s indigenous oil firms are increasingly taking centre stage in the upstream sector, leveraging the withdrawal of international majors and improved stability in onshore operations. Crude and condensate supply held steady at 1.75 Mbd in July, lifting the three-month average to its highest level in over five years, driven by rising onshore output and fewer pipeline disruptions.

At Jones Creek, reduced pipeline outages reportedly supported higher flows to the Ugo Ocha terminal, with exports doubling to 65,000 bpd in recent months. Kpler stated that among key grades, CJ crude production reached its highest level of the year in June, reaching 55,000 bpd, quoting data from the Nigerian Upstream Petroleum Regulatory Commission. The grade, which is previously a regular feedstock for Dangote, reportedly had its recent cargoes shipped to Canada’s Point Tupper and re-exported to the US recently.

The refinery’s intake of domestic crude declined to 220,000 bpd in August, down from 275,000 bpd last month, coinciding with record-level imports from the US at 370,000 bpd. Despite its stated intention to prioritise Nigerian supply, Dangote’s current crude slate suggests a more flexible sourcing strategy, which will largely be based on commercial incentive.

The bulk of the refinery’s output consists of gasoline, primarily sold domestically, though some volumes have been exported to Oman and Ivory Coast—and jet fuel, destined for West Africa and Northwest Europe, according to Kpler.

Last month, the President of the Dangote Group, Aliko Dangote, said the refinery has made Nigeria a net exporter of refined products, saying, “From June beginning to July, we have exported about 1 million tonnes of PMS, within the last 50 days,” he said.

It was stated that with a gasoline yield of 46 per cent, the refinery’s expansion to 700,000 barrels per day (bpd) would increase potential gasoline output to 322,000 bpd, up from an initial 300,000 bpd.

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However, the platform expressed pessimism, stating that “expecting Dangote to run at full capacity on a sustained basis would be highly optimistic, given the likelihood of frequent mechanical issues and ongoing maintenance requirements. As such, we do not anticipate the refinery approaching full utilisation before Q4 2026.”

It disclosed that, in an effort to maximise gasoline yields, condensate naphtha arrived in early July, with Dangote importing around 22,000 tonnes per month (6,000 bpd) to feed its hydrotreater for gasoline production.

These naphtha imports, it was learnt, underscore “ongoing operational challenges at the refinery’s 204,000 bpd RFCC unit, which has been grappling with reactor and regenerator issues since January.”

Looking ahead, Kpler expects Nigeria’s crude and condensate supply to average around 1.65 mbd throughout the rest of the year—a stable level, with no significant new fields expected in the coming months, though still a marginal increase compared to H2 last year.

Nevertheless, it was added that activity among local producers continues to build, with significant gains possible from next year. “Companies like Seplat are working to boost output by restarting shut-in wells and launching new drilling campaigns across the former ExxonMobil blocks, according to their latest financial results.

“Infrastructure is also expanding: the Otakikpo terminal, developed by Green Energy, completed its first crude export in June aboard the Suezmax Lipari, becoming Nigeria’s first privately built onshore terminal in over five decades. Conoil has completed its first Obodo crude shipment, while Renaissance Africa Energy is preparing to scale up production following its acquisition of Shell’s onshore assets,” it was reported.

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Tax revenue hits N27tn after 113% surge – Report

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Nigeria’s tax collections have surged by 113 per cent in less than three years, rising from N12.3tn in 2023 to N27.1tn as of July 2026, the Nigeria Revenue Service has said.

The revenue authority attributed the sharp increase to the digitisation of the tax system, the enactment of four new tax reform laws, the transformation of the revenue service and an executive order aimed at closing loopholes in the tax system.

The NRS, in an internal report on the state of the Nigerian economy obtained by The PUNCH on Sunday, insisted that the country was moving from a period of severe macroeconomic distress towards a more stable and resilient economy following the implementation of a series of difficult reforms by the President Bola Tinubu administration.

“Tax collections more than doubled from N12.3tn in 2023 to N27.1tn as of July 2026 with the “digitisation of tax systems, four new tax reform laws, the transformation of the revenue service and an executive order that closed loopholes in the system.

“The Nigerian economy has moved decisively from acute macroeconomic distress toward a more stable and increasingly resilient footing,” the revenue service said.

The NRS attributed the development to what it described as Tinubu’s economic management acumen and determination to implement reforms under his administration’s Renewed Hope Agenda.

According to the report, the administration inherited four major economic distortions which had continued to undermine government revenue and economic growth.

It identified the challenges as “a fiscally unsustainable fuel subsidy regime, an opaque forex system that discouraged investment, a non-performing oil sector, and a tax base ‘far below its potential’.”

The revenue authority said the initial impact of the reforms created significant economic difficulties but maintained that the country’s major economic indicators had subsequently begun to improve.

It cited falling inflation, a turnaround in the balance of payments, increased crude oil production, the emergence of Nigeria as a net exporter of petroleum products and the more than doubling of tax collections as evidence of the recovery.

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The report also highlighted an increase in the minimum wage, saying it had doubled between 2023 and 2026.

It further cited estimates by the United Nations Children’s Fund showing that the number of out-of-school children had declined from 20 million to 18.3 million following government policies and incentives.

The NRS said the government’s naira-for-crude arrangement with the Dangote Petroleum Refinery and other domestic refineries had contributed to a major shift in Nigeria’s petroleum trade position.

According to the report, the arrangement had helped Nigeria move from being a net importer of petroleum products to becoming a net exporter after decades of dependence on imports.

It noted that Ghana had recently decided to pursue a similar policy in its petroleum sector. The report also said crude oil production had increased from about 1.2 million-1.3 million barrels per day in 2023 to 1.73 million barrels per day by July 2026.

It said the latest output was equivalent to 104 per cent of Nigeria’s OPEC quota. The increase in production is significant for government revenue because crude oil remains the country’s largest source of foreign exchange and a major contributor to public finances.

The NRS also pointed to developments in the capital market as another indication of improving economic confidence. It said the market capitalisation of the Nigerian Exchange had risen from N30.36tn in 2023 to N161tn in 2026, describing the increase as a source of wealth creation for millions of Nigerians who invest in the stock market.

The report attributed the market rally partly to improved macroeconomic credibility, the recapitalisation of banks and a growing pool of domestic institutional investment.

Nigeria’s external reserves also rose sharply during the period under review. According to the NRS report, reserves increased from an unrestricted $3.99bn in 2023 to $51.9bn as of July 2026, which it described as a 17-year high.

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The country’s balance of payments also moved from a $3.34bn deficit to a $2.38bn surplus in the first quarter of 2026, the report stated. Nigeria’s trade position similarly recorded a significant improvement, moving from a marginal surplus of N44.7bn to N7.55tn in the first quarter of 2026.

The composition of exports also showed some changes, with exports of other oil products, excluding crude, rising by 51 per cent year-on-year to N6.78tn during the first quarter.

The revenue service said improved investor confidence was also reflected in capital importation. Annual capital importation rose from $3.9bn in 2023 to $23.22bn in 2025, while inflows reached $10.37bn in the first quarter of 2026 alone.

The report said foreign portfolio investment had been particularly strong, while foreign direct investment had also improved. The increase in capital inflows, according to the NRS, reflected stronger investor confidence as economic reforms reshaped the operating environment.

The revenue service further highlighted the expansion of the compressed natural gas programme as part of the government’s response to the removal of the petrol subsidy.

According to the report, Nigeria had no large-scale CNG programme three years ago and depended heavily on imported petrol and diesel. By 2026, however, more than 100,000 vehicles had reportedly been converted to CNG, with more than $2bn in investment mobilised and over 10,000 jobs created.

The NRS estimated that CNG could reduce running costs by between 40 and 60 per cent compared with petrol. It said some commercial drivers had seen their monthly fuel bills fall from about N50,000 to N18,000 after converting their vehicles.

On agriculture and food security, it recalled that the administration declared a state of emergency on food security in July 2023 and subsequently introduced measures including the release of strategic grain reserves, the establishment of a N100bn National Agricultural Development Fund, fertiliser distribution and an agricultural mechanisation programme.

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Federal agricultural allocation rose from N228.4bn in 2023 to N826.5bn in the 2025 budget, according to the report. The NRS said food prices had fallen by about 50 per cent by March 2026, citing the Ministry of Agriculture.

However, it acknowledged that agriculture would require several planting seasons before increased government support could translate fully into higher production.

On public debt, the NRS acknowledged that Nigeria’s total debt stock had increased substantially, from N87.4tn in 2023 to N159.28tn in late 2025. However, it argued that the more important measure was the country’s debt relative to the size of its economy.

According to the report, the debt-to-GDP ratio declined from 38 per cent in 2023 to 35.5 per cent in 2025 and 32.3 per cent in 2026. The revenue service described the decline as the first sustained reduction in the ratio in more than a decade.

It also said debt servicing as a proportion of government revenue had declined from 68 per cent to an International Monetary Fund-projected 53 per cent.

The NRS said the combination of higher tax collections, increased oil production, stronger capital inflows, rising reserves and improved trade and balance of payments positions pointed to an economy that was gradually emerging from the severe pressures that followed the government’s early reforms.

The report nevertheless acknowledged that the gains came after what it described as “painful” adjustments and stressed that continued implementation of the reforms would be required to consolidate the recovery.

Source: punchng.com

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NLC demands N500k minimum wage, says current N70k minimum wage is no longer sustainable

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The Nigeria Labour Congress (NLC) says it will soon begin negotiations with the Federal Government for a new national minimum wage, insisting that the current N70,000 wage is no longer sustainable.

Speaking at the Rights of Workers Summit in Birnin Kebbi on Thursday, NLC President Joe Ajaero, represented by Deputy President Audu Titus Amba, said workers should prepare for fresh negotiations.

He argued that the current minimum wage could no longer meet workers’ basic needs amid rising inflation and the increasing cost of living.

“Anything less than N500,000 cannot cater for workers. The current minimum wage is due for review, and we will soon begin negotiations with the government,” he said.

Also speaking, Trade Union Congress (TUC) President Festus Osifo, represented by Secretary-General Nuhu Toro, said worsening economic conditions had eroded workers’ purchasing power.

He cited rising food prices, transport fares, rent and inflation as factors making the current wage inadequate.

President Tinubu signed the current national minimum wage bill into law on July 29, 2024, raising it from N30,000 to N70,000 per month. The legislation followed negotiations with organized labor and included a provision to review the wage structure every three years.

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Ondo artisans beg FG for inclusion in empowerment programmes

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Artisans and skilled workers in Ondo State have appealed to the Federal Government to include them in various empowerment programmes under President Bola Tinubu’s Renewed Hope Agenda.

The artisans, under the aegis of the Artisan Defender and Empowerment Foundation, said over 25,000 members of the group had been neglected despite their support for the re-election of the President.

This was contained in a statement issued on Friday by the Chairman and General Secretary of the association, Engr. Ogundipe James and Adebayo Olugbenga, respectively.

According to the statement, the group was founded and registered with the Federal Government to promote the interests of Niger Delta artisans and skilled workers, adding that its members needed government support through empowerment initiatives.

The statement read, “It was evident, the neglect of the welfare and empowerment of over 25,000 artisans that this organisation controls, for which we are advocating better welfare, skills and vocational training, empowerment, workshops and recognition of political strength and weight the coalition commands in the voting structure.

“The deteriorating situation of artisan welfare, particularly in Ondo State, is why the body is seeking immediate attention, mostly empowerment and skills upgrading from the primary concerned government agencies—the Federal Ministry of Trade and Investment, Directorate of the Office of Humanitarian Affairs and Poverty Reduction, Small and Medium Enterprises Development Agency of Nigeria, Presidential Amnesty Programme, among others.

“The neglect of this very important organisation, which plays a vital role in employment and the growth of the national economy, will cause disagreement and affect political support that comes from this coalition group.”

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The statement urged the concerned Federal Government agencies to consider the proposals earlier submitted by the group to enhance the support of its members for the President’s administration.

The group stated, “We call on the agencies mentioned above, demanding immediate attention to the proposals that have earlier been sent to this parastatal.

“This is a public warning and general awareness that failure to listen to Niger Delta Artisan Forum’s demands will lead to a national protest and have huge political support consequences for the continuation of the Renewed Hope Agenda of President Bola Ahmed Tinubu come the 2027 election, if attention is not immediately given to the demands.”

punch.ng

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