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PENGASSAN fires back as Shettima defends Dangote

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The Petroleum and Natural Gas Senior Staff Association of Nigeria has tackled the Presidency over comments by Vice President Kashim Shettima condemning its industrial action over a rift with the Dangote refinery.

PENGASSAN told The PUNCH on Monday that it would take same action if its members were sacked again.

This comes as some individuals staged a protest in Kaduna, accusing PENGASSAN of attempting to sabotage the Dangote refinery.

PENGASSAN had last week shut down critical oil and gas facilities over allegations that Dangote refinery sacked 800 workers who joined the union. But the Dangote refinery said it only sacked a few workers who were sabotaging the facility, saying this was part of the company’s reorganisation.

But oil and gas workers embarked on a strike in defence of their colleagues, causing the nation losses in oil and gas production as well as a drop in power generation.

The intervention of the Federal Government restored normalcy as PENGASSAN suspended the strike on Wednesday after the Dangote Group was asked to redeploy the sacked workers to other business units.

Despite the suspension of the strike that caused queues in filling stations, the price of cooking gas has yet to return to about N900 per kg, as it still sold for N2,000 in Lagos and other places as of Monday.

Speaking on Monday at the opening of the 2025 Nigerian Economic Summit in Abuja, Shettima described Dangote as an institution and a pillar of Nigeria’s economic development. He warned that Nigeria is greater than PENGASSAN, and no one should hold the country to ransom.

“Aliko Dangote is not an individual; he’s an institution, and he’s a leading light in Nigeria’s economic parliament,” the Vice President said.

“And how we treat this gentleman will determine how outsiders will judge us. If he had invested $10bn in Microsoft, in Amazon, or in Google, he probably might be worth $70 to $80bn by now. But he opted to invest in his country, and we owe it to future generations to jealously protect, promote, preserve, and protect the interests of this great Nigeria.

“I wish to call for caution, retrospection, and a deeper sense of patriotism from both labour and the organised private sector in defining and improving the relationship between labour and industry in the interest of maintaining our steadily improving economic fortunes. It’s not about holding the whole nation to ransom because of a minor labour dispute.

“Nigeria is greater than PENGASSAN. Nigeria is greater than each and every one of us,” Shettima emphasised.

Reacting, the National President of PENGASSAN, Festus Osifo, said the nation was bigger than Dangote and the Presidency as well.

According to Osifo, PENGASSAN had a mandate to protect the jobs of its members sacked by the Dangote refinery for joining the association. This mandate, he said, would be discharged whenever the next arises.

“Of course the nation is bigger than PENGASSAN, the way it’s bigger than Dangote and the Presidency. We have a mandate to protect the jobs of our members, that we will discharge whenever the need arises,” Osifo told The PUNCH.

Osifo, who doubles as the President of the Trade Union Congress, stressed that if the same situation that led to the sack of its workers occured again, it would deploy the same strike action to address it.

“Should this same event occur again tomorrow, our approach will be exactly the same,” he stated.

Asked for his reaction to social media comments that the Federal Government might be pushed to dissolve PENGASSAN because a strike by its members threatened energy security, Osifo responded, “Does the law prohibit workers’ right to strike?”

Similarly, the General Secretary of PENGASSAN, Lumumba Okugbawa, said, “Is Nigeria not bigger than any individual or institution?”

Also speaking, the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, said the Federal Government would not relent in its support for domestic production as part of efforts to stabilise the economy and sustain growth.

“The next focus of government is sustaining the reform for achieving growth and development. Inflationary expectations are on the decline, and we shall continue to support domestic production,” he said.

Bagudu explained that reforms introduced May 2023 had helped avert fiscal collapse, ease macroeconomic pressures, and strengthen resilience.

He said the removal of fuel subsidies, deregulation of the foreign exchange market, tighter borrowing discipline and the naira-for-crude policy were bold choices that laid the foundation for stability.

The minister added that reforms were beginning to yield results, with GDP growth improving to 3.4 per cent in 2024 and further strengthening into 2025.

According to him, the government is prioritising agriculture, manufacturing and infrastructure to sustain the downward trend in inflation and ease the cost of living.

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He stressed that expanding access to credit, mechanisation, storage and transportation remained critical.

Bagudu projected GDP growth of 4.6 per cent in 2025 and said the upcoming National Development Plan 2026–2030 targets a $1tn economy by 2030, anchored on sustained reforms, diversified revenue and a stronger domestic production base.

The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, further said the Federal Government was determined to ensure that trade policies were translated into practical outcomes that boosted exports, created jobs and embedded Nigeria firmly in global value chains.

“The question is not just about policy ambition but about delivery. How does Nigeria translate trade policy from impact to practice, so that within the next three years exporters can begin to feel the impact? Talk is cheap, and it is time to move from words to results,” she said.

Oduwole disclosed that the government had taken concrete steps to deepen trade integration across Africa.

She noted that Nigeria was the first country to implement the five-year review of the African Continental Free Trade Area, inaugurating a central coordination committee in the second quarter of 2025 to provide a clear roadmap for stakeholders.

“We submitted our tariff schedules and indicated interest to serve as the territorial champion under AfCFTA, and that was announced in February. We are aligning private sector dynamism with public reform to ensure Nigeria is not left behind,” she added.

According to her, the ministry has negotiated with countries including Uganda and Ecuador, identifying opportunities for Nigerian businesses in apparel, light manufacturing and cosmetics.

On structural barriers such as high trade costs, congested ports and export rejections, Oduwole said government was working on reforms to cut costs by as much as 75 per cent, streamline agencies, and strengthen standards.

“It is about taking policy from paper to practice and ensuring that our exporters and manufacturers feel the impact. That is the practical work we have been doing in the last 10 to 11 months,” she said.

In his opening address, the Chairman of the Nigerian Economic Summit Group, Olaniyi Yusuf, warned that the way the country treated its domestic investors would determine the confidence of foreign investors in committing long-term capital to Nigeria.

He cited persistent inflationary pressures, high debt service obligations and subdued investor confidence as major obstacles to inclusive growth.

According to him, Nigeria is currently in the stabilisation phase, but he cautioned that progress could be lost if reforms were not deepened.

“Stabilisation has given us breathing space, but it is not the destination. We must consolidate and accelerate reforms deliberately to avoid sliding backwards,” he said.

The NESG chairman outlined seven areas that should guide reform consolidation, including industrialisation, infrastructure, investor confidence, fiscal sustainability, inclusion, institutional strengthening and security.

He added that micro, small and medium enterprises must be supported with affordable finance, stable power and technology to drive industrial growth.

He emphasised that policies must be inclusive and felt in households through jobs, healthcare, education and social protection.

“Dead businesses don’t employ workers, they don’t pay salaries, and they don’t pay taxes,” he warned, stressing that regulators must enable, not stifle, private sector growth.

Yusuf urged policymakers to send a clear signal of credibility and trust. “Nigeria must say clearly: we will protect, not picket, investors,” he said, calling for a national framework anchored on industrialisation, infrastructure, investment, inclusion and institutions to guide the 2026–2030 National Development Plan.

Kaduna anti-PENGASSAN protest

On Monday, scores of protesters took to the streets in Kaduna to march in solidarity with the Dangote refinery, accusing those they called a well-connected oil importation cartel and elements within the labour movement of trying to frustrate the country’s nascent local refining drive.

The protest, themed ’National Unity Against Sabotage: Reclaiming Our Petroleum Sector for the People’, sought urgent government action to protect the multi-billion-dollar refinery from “systematic attacks” by the so-called elements of the oil importation cartel.

The protesters, who gathered under the aegis of Partners for National Economic Progress, converged on the Murtala Mohammed Square before winding through Alkali Road, Ali Akilu Road, Ahmadu Bello Way and Muhammadu Buhari Way, carrying placards with inscriptions such as “Protect Local Refining”, “End Fuel Import Cartel”, and “Support Dangote Refinery.”

One of the movement’s leaders, Igwe Ude-Umanta, told the crowd the Kaduna demonstration formed part of a nationwide campaign that began in Abuja on October 2.

He described the rallies as a national liberation effort aimed at saving Nigeria’s economy from forces he said were determined to keep the country dependent on imported fuel.

This struggle is against the cartel that destroyed our public refineries, killed the textile industry, and now wants to strangle the Dangote refinery. We will not let them succeed. The days of holding Nigeria hostage are over,” Ude-Umanta stated.

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He went down memory lane on Kaduna’s once-thriving textile industry, saying the same pattern of sabotage that gutted that sector was being replayed in the petroleum industry.

“Kaduna used to be a textile hub before the same pattern of sabotage destroyed it. Today, they want to replicate that in our petroleum sector by frustrating local refining. We will resist them,” he said.

PANEP leaders accused PENGASSAN of complicity, describing recent union actions as tantamount to “economic terrorism”.

PANEP urged either an outright halt to fuel importation or the imposition of heavy tariffs to protect domestic refining and related industries.

“Countries that place tariffs are not stupid; they are protecting their economies,” Ude-Umanta said, adding that importers were frightened by the prospect of local refining exposing price manipulation and corrupt practices.

Dahiru Maishanu, who also addressed the rally, said the union’s conduct had gone beyond legitimate labour protest and was instead assisting the importers’ agenda.

“What PENGASSAN did was not unionism; it was sabotage. The Federal Government should have arrested their leadership to serve as a deterrent. We cannot allow people to hide under labour unions to commit crimes against our economy,” Maishanu said.

The protesters demanded urgent intervention of President Bola Tinubu to ensure that local refineries like Dangote are supplied with crude oil on terms equal to those offered to foreign refiners.

“President Tinubu must stamp his feet. Local refineries must receive crude at the same price offered to foreign refiners. That is key to sustaining the refinery and boosting investor confidence,” they said.

They accused the union of blocking the sale of locally produced liquefied petroleum gas and aviation turbine kerosene, insisting those actions were intended to keep prices artificially high and preserve monopoly profits.

“They are punishing Nigerians to protect their greed. How can importers compete with producers? They are scared because local refining will expose their fraud and end their control over pricing,” Maishanu said.

The demonstrators praised the Dangote refinery for what they called its early impact on prices of Premium Motor Spirit and diesel, saying ordinary Nigerians were already “breathing fresh air” because of local refining.

They warned that if the refinery were undermined, the consequences would be severe for investor confidence and the wider economy.

“This movement is about economic salvation. If we allow them to kill the Dangote refinery, no investor will ever risk bringing money into this country again. We must protect this refinery as our own,” Maishanu said.

They called on the Federal Government to “crush every enemy of Nigeria’s economic progress,” urging swift policy and enforcement actions that would protect local refining capacity and punish those found to be undermining it.

In reaction, the PENGASSAN president Osifo said the protesters are “ignorant people” while Okugbawa added that “it’s their constitutional right to protest.”

PENGASSAN dissolves NGIC

The national body of PENGASSAN has reportedly dissolved its Nigerian Gas Infrastructure Company and Nigerian Gas Marketing Limited chapter for failing to shut off gas supply to the Dangote refinery during the crisis last week.

But the unit appealed the dissolution, faulting the union’s national secretariat over what it described as an unjust sanction tied to the failed attempt to shut down gas supply to the Dangote refinery.

In a formal petition to the national leadership of PENGASSAN obtained on Monday, the NGIC/NGML Congress said it received the dissolution directive “with shock and dampened spirit”, arguing that the affected executives made concerted efforts to execute the national strike order but were hindered by operational hazards and the heavy presence of security personnel at key gas facilities.

Giving a response to the dissolution, members of the union, in a petition signed by 163 members, called for the reinstatement of the officials.

The letter read in part, “We, the members of congress of NGIC/NGML PENGASSAN Branch, write to formally appeal the decision of the National PENGASSAN Secretariat to dissolve our branch leadership over perceived acts of sabotage relating to their inability to successfully execute the shutdown mandate of gas supply to Dangote refinery.

“We received the decision with shock and dampened spirit, given the effort the leadership and mobilised members of the branch put in to ensure the mandate was successfully carried out, despite several intimidation and assaults they faced all through the struggle, with emphasis on escalations at Oben Metering Station, where lives were at risk.”

“Our leaders did more than enough to carry out the directive of the nation despite their lives being at risk. The allegations of collusion and acceptance of monetary gifts from management are without evidence and false,” the congress stated.

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The NGIC workers maintained that their inability to completely enforce the shutdown stemmed from technical and safety constraints, including continuous gas injection from producers into the Escravos–Lagos Pipeline System and malfunctioning emergency shutdown valves at the Warri Gas Treatment Plant.

“NGIC assets and facilities are complex. The Warri Gas Treatment Plant, for instance, has critical safety concerns, including a faulty emergency shutdown valve that could endanger workers and surrounding communities if mishandled,” the letter explained.

The members also debunked reports suggesting a total shutdown of gas supply to the Dangote refinery.

According to the executives, at no time did they claim that the refinery had been completely shut down.

They clarified that only some valves along the line and the inlet from the OB3 pipeline through Oben were closed temporarily in an attempt to reduce pressure.

The officials added that the action was intended to cause a pressure drop that could affect supply to the refinery, but the move did not yield the expected result.

They further noted that the information relayed to the national president, suggesting that gas supply to Dangote had been cut off, was premature and based on a misunderstanding of the situation.

“It is also important to state that, at no point did the branch executives tell anyone that Dangote has been shut down 100 per cent; they only said they have shut down some valves along the line and the inlet from OB3 to the line through Oben, and they hope the pressure will drop after a few hours and Dangote will come down, all of which didn’t work out as they had expected. We note that whoever informed the national president that gas supply to the Dangote refinery was cut off had done so in haste to give good news and was impatient to wait for the outcome of the actions our comrades from NGIC took,” it added.

The congress urged PENGASSAN’s national secretariat, led by its president, to review its decision and clear the dissolved executives of the allegations of sabotage and bribery.

It also called for a fair hearing, stressing that punishing loyal members who risked their lives during the industrial action could demoralise others and weaken solidarity in future union struggles.

“We, the members of the congress, kindly note that our branch leadership did more than enough to carry out the directive of the National despite their lives being at risk. They even went ahead to do what management have labelled as “never been heard of in the history of NGIC/NGML, i.e., the shutdown of facilities and damage of assets (please note that NGIC/NGML PENGASSAN have never shut down any customer due to strike action prior to now).

“That they recorded some successes which were limited by the continuous injection of gas from producers to the ELPS and the heavy presence of military personnel, which usually outnumbered them,” the letter added.

Meanwhile, the engineers reportedly sacked by the Dangote refinery for joining PENGASSAN are still awaiting their redeployment letters.

Dangote thanks Tinubu

Dangote Petroleum Refinery commended Tinubu for his timely intervention in averting what it described as “the disruptive actions” of PENGASSAN against the company.

In a statement, the company said the President’s leadership, through his ministers and senior government officials, ensured the restoration of order and stability to the energy sector at a critical moment.

“Dangote Refinery is grateful to the President of the Federal Republic of Nigeria, Bola Tinubu, for his intervention, through his ministers and senior officials, which resulted in the abatement of the disruptive actions of PENGASSAN against the refinery,” the statement read.

According to the company, among the key government officials who worked “tirelessly” to restore normalcy were Nigeria’s security chiefs, led by the National Security Adviser, Nuhu Ribadu; the Director General of the Department of State Services, Mr Adeola Ajayi; and the Director General of the National Intelligence Agency, Mr Mohammed Mohammed.

The refinery also commended “other senior government officials who worked untiringly and determinedly into the wee hours of several nights to avert the declared disruption of Nigeria’s energy sector by anarchists and agents of darkness.”

These, it noted, included the Minister of Labour and Employment, Dr Mohammed Dingyadi; the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; the Minister of Budget and Economic Planning, Senator Abubakar Bagudu; and the Minister of State for Labour and Employment, Hon. Nkeiruka Onyejeocha, saying, “We remain very grateful to these officials for their patriotism and national service.”

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Nigerians spend N50bn on US visa applications

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Nigerians spent more than N50bn on US visa applications between 2023 and 2024, despite a sharp decline in approvals as Washington tightened immigration controls and increased scrutiny of applicants.

An analysis of the Intelpoint report, using data from the US Department of State, shows that 201,200 non-immigrant visas were issued to Nigerians between 2023 and 2024. At a standard application fee of $185 per applicant, Nigerians spent approximately $37.2m, equivalent to N50.7bn at an average exchange rate of N1,360 to the dollar.

Visa issuances declined by about 23 per cent, falling to 87,300 in 2024 from 113,900 in 2023, a reduction of 26,600 visas. The PUNCH could not obtain comparable figures for 2025 at the time of reporting.

Business and tourism travel dominated approvals in 2024, with B1/B2 visas accounting for 83 per cent of total issuances, while student visas (F1) represented about seven per cent. Exchange visitor visas (J1) and other temporary categories made up the remainder.

Africa’s most populous nation remained a significant source market for the United States, accounting for about 0.8 per cent of global non-immigrant visa issuances in 2024, the data showed.

Former President of the National Association of Nigeria Travel Agencies, Susan Akporiaye, said Nigerians’ travel behaviour is driven by more than economic conditions, noting a strong cultural inclination toward mobility.

“People would say it’s because of the economy, but I share a different view. Nigerians are generally migrants; they love travelling.

We are like the Chinese of Africa,” Akporiaye told The PUNCH.

The executive argued that most Nigerians who travel abroad return home, and only a small proportion remain outside the country permanently. “There is so much noise of Nigerians staying back. The ones who travel and return are far more than those who stay back. It’s not up to 10 per cent that don’t return,” she stated.

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The decline in visa issuances comes amid a series of policy changes introduced after Donald Trump returned to the White House in January 2025, which have gradually tightened requirements for Nigerian applicants.

In July 2025, the US Department of State announced that most non-immigrant and non-diplomatic visas issued to Nigerian citizens would be restricted to single-entry permits valid for three months, with existing visas unaffected.

In August, applicants were required to disclose all social media usernames used over the previous five years on DS-160 forms, with officials warning that omissions could lead to visa denial or ineligibility.

Akporiaye also noted that travel demand cuts across income levels, from affluent individuals to ordinary citizens travelling for social events. “Nigerians like to explore. We travel for birthdays, weddings, and other ceremonies. I’m not talking about people like Dangote or Otedola, but ordinary Nigerians you don’t even know,” she said.

The expert, however, acknowledged that demand for US travel has softened relative to other destinations, citing operational and policy-related constraints.

“The demand has reduced for some destinations like the US, and it’s becoming worse now. Conditional requirements and operational changes at the US Embassy in Abuja have made access more difficult, including the consolidation of services in Lagos,” she stated.

“There are stories about visas being cancelled or Nigerians getting deported, and that makes people a bit sceptical. But other destinations are still booming.”

Further tightening followed in December 2025, when the US Mission in Nigeria said Washington expanded travel restrictions to include partial limitations on Nigeria and five other countries, effective January 1, 2026.

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An executive at Travel and Tours Limited, Maureen Chimaobi, said securing a US visa has become increasingly difficult over the past year, with many first-time applicants facing steep odds despite completing all required procedures.

“Last year, getting a US visa drastically reduced, especially if you are a first-time traveller or first-time applicant. It’s almost a no-go area,” Chimaobi told our correspondent.

She noted that applicants continue to pay visa fees, schedule appointments and attend interviews, but approvals have become far less predictable. “You pay your visa fee, book your appointment and go for submission. Most of the time, they don’t give it,” the agent said.

The trend reflects growing concerns among travel operators about declining approval rates for Nigerian applicants, even as demand for overseas travel remains strong. Chimaobi said rejection levels have remained high throughout the period under review, particularly for individuals with limited international travel history.

The tougher environment is also influencing destination choices. More Nigerians are turning to countries where visa approvals are perceived to be more attainable, provided applicants can demonstrate sufficient financial capacity and present strong documentation.

“I think most countries still offer a 70 to 80 per cent chance of getting a visa, depending on the quality of your documents and your financial status,” Chimaobi revealed.

She identified the United Kingdom as one of the destinations with relatively stronger approval prospects, although she cautioned that British authorities have also hardened their assessment processes in recent months.

France and other countries within the Schengen area, once considered more accessible to Nigerian travellers, have become increasingly selective, especially toward first-time applicants, she added.

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“Before now, France used to issue visas more easily, but most Schengen countries have become difficult over time, particularly for first-time travellers,” Chimaobi said.

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Petrol imports crash by N2tn to N87bn; see why

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Nigeria’s spending on the importation of Premium Motor Spirit, popularly known as petrol, plunged by over 96 per cent in the first quarter of 2026, marking a dramatic shift in the country’s fuel supply landscape and signaling the growing impact of local refining capacity.

Latest foreign trade statistics released by the National Bureau of Statistics on Monday showed that only N87.401bn was spent on the importation of Motor Spirit Ordinary, the official trade classification for petrol, between January and March 2026.

The figure represents a sharp decline of N2.184tn, or 96.15 per cent, compared to the N2.271tn spent on petrol imports during the corresponding period of 2025. The development is particularly significant as petrol, which had consistently ranked among Nigeria’s most imported commodities for years, was completely absent from the list of the country’s top traded products in the first quarter of 2026.

An analysis of the NBS data by our correspondent showed that petrol did not feature among the top 19 traded products with the rest of the world, Africa, or West Africa during the review period.

Instead, the leading traded products included crude petroleum oils and oils obtained from bituminous minerals, gas oil, durum wheat, machines for reception, conversion and transmission of data, used vehicles, motorcycles, agricultural seeders, medicaments, aircraft parts, butanes, petroleum bitumen, sugar cane, herbicides and fuel additives.

The report read, “The value of total imports stood at N13,619.33bn in the first quarter of 2026, representing a 18.17 per cent decrease from the value recorded in the corresponding quarter of 2025 (N16,644.42bn) and a 21.05 per cent decrease compared to the value recorded in Q4 2025 (N17,250.93bn).

“Analysis of Nigeria’s import trade reveals that China remained the leading source of imports in the first quarter of 2026, followed by the United States of America, India, Germany, and the United Arab Emirates. The most imported commodities during the quarter were petroleum oils and oils obtained from bituminous minerals (crude), gas oil, durum wheat, machines for the reception, conversion, and transmission of voice, images, or data, and used vehicles with diesel or semi-diesel engines.

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“The value of other oil products imported in Q1 2026 stood at N748.10bn, reflecting an 85.05 per cent decrease from N5,005.22bn in Q1 2025 and an 81.38 per cent decrease from N4,018.31bn recorded in Q4 2025.”

The latest import figure is also the lowest quarterly amount spent on petrol imports since at least 2022, according to available trade records reviewed by our correspondent.

Data from previous years showed that Nigeria spent N2.694tn on petrol imports in the first quarter of 2022. The import bill declined by N661bn, or 24.5 per cent, to N2.033tn in the corresponding period of 2023.

However, petrol import spending surged by N1.780tn in 2024 to N3.813tn, representing an increase of 87.6 per cent year-on-year. The figure later dropped by N1.542tn, or 40.4 per cent, to N2.271tn in the first quarter of 2025 before plunging by a massive N2.184tn, or 96.15 per cent, to N87.401bn in the first quarter of 2026.

The latest figure means that for every N100 spent on petrol imports in the first quarter of 2025, only about N4 was spent during the same period in 2026. The NBS data also highlighted the changing structure of Nigeria’s petrol import trade profile over the years.

According to the report, the total trade value involving the petroleum product stood at N7.705tn in 2022. This declined marginally by N194bn, or 2.5 per cent, to N7.511tn in 2023.

Trade value, however, more than doubled in 2024, rising by N7.907tn, or 105.3 per cent, to N15.418tn, the highest level during the period under review. The figure subsequently fell by N5.045tn, or 32.7 per cent, to N10.373tn in 2025, reflecting changing trade dynamics in Nigeria’s downstream petroleum sector.

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The PUNCH reports that the sharp reduction in petrol imports reflects the increasing contribution of domestic refining facilities to fuel supply, reducing Nigeria’s dependence on foreign suppliers and helping conserve foreign exchange.

For decades, Nigeria relied heavily on imported petrol despite being Africa’s largest crude oil producer, owing largely to the poor performance of state-owned refineries and inadequate domestic refining capacity.

The trend began to change following investments in local refining and the gradual increase in output from domestic refineries, which have reduced the need for large-scale fuel imports.

The sharp decline in petrol imports in the first quarter of 2026 comes amid growing domestic refining capacity, particularly from the operations of the Dangote Petroleum Refinery, which began supplying petrol to the Nigerian market in 2024.

For decades, Nigeria relied heavily on imported Premium Motor Spirit despite being Africa’s largest crude oil producer. The country’s state-owned refineries operated far below capacity for years, forcing marketers and the Nigerian National Petroleum Company to spend trillions of naira annually importing fuel to meet domestic demand.

The commissioning of the 650,000 barrels-per-day refinery in Lekki, Lagos, marked a turning point in the downstream petroleum sector. Since commencing petrol production, the refinery has steadily increased output, supplying marketers, industrial users and fuel distributors across the country.

In January, the Nigerian Midstream Downstream Petroleum Regulatory Authority reported that Dangote refinery supplied an average of 40.1 million litres of petrol daily, accounting for 61.78 per cent of Nigeria’s petrol supply. Imported fuel contributed 24.8 million litres per day during the month.

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It increased significantly in February as imports collapsed. The refinery supplied about 36.5 million litres per day, while imports dropped to roughly 3.1 million litres per day, meaning locally refined fuel accounted for more than 92 per cent of national supply.

According to the NMDPRA March fact sheet, Dangote remained the sole domestic supplier of petrol, supplying 34.2 million litres per day. Imports rose slightly to 5.9 million litres daily, bringing total supply to about 40.1 million litres per day.

Supply rebounded strongly in April. Dangote supplied 40.7 million litres per day to the domestic market, while imports declined further to 3.7 million litres daily. Total petrol supply stood at 44.4 million litres per day, giving the refinery a market share of approximately 92 per cent of locally consumed fuel and about 80–92 per cent of overall supply, depending on the methodology used.

The disappearance of petrol from the list of top imported products is expected to strengthen arguments that local refining is beginning to alter Nigeria’s trade patterns, lower import dependence and reshape the country’s foreign exchange requirements.

The sustained reductions in fuel imports could improve Nigeria’s trade balance, reduce pressure on the naira and retain more value within the domestic economy, provided local production continues to meet demand.

The first-quarter data therefore represents one of the clearest indications yet of a major shift in Nigeria’s downstream petroleum sector, with petrol imports falling to levels not seen in more than four years.

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Nigerian workers deserve a living wage; read details

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THIS is a debate that never goes away for too long: what is due to Nigerian workers? The renewed agitation over workers’ wages, triggered by a fresh Nigeria Governors’ Forum proposal to raise the national minimum wage to N100,000 per month, only confirms that the country is trapped in an endless cycle of wage adjustments that inflation quickly renders meaningless.

This means that the issue is not just about the size of the minimum wage. Rather, it is about whether Nigerian workers can afford to live with dignity.

That is why the conversation must shift from a statutory minimum wage to a genuine living-wage regime – and a stable economy.

The proposal by the Chairman of the NGF, Governor AbdulRahman AbdulRazaq, has already been rejected by organised labour.

The Nigeria Labour Congress, through its spokesman, Benson Upah, dismissed N100,000 as grossly inadequate and argued that, given current realities, a realistic wage would be closer to N1 million per month!

The Federal Workers Forum also condemned the proposal as a “Greek gift,” insisting that it bears little relationship to prevailing economic conditions.

While the NLC’s N1 million demand may appear excessive to many, the underlying argument deserves serious attention.

The current N70,000 minimum wage approved in July 2024 has already been overtaken by inflation. Like every previous wage increase in Nigeria’s history, its real value has been rapidly eroded.

The country’s minimum wage trajectory elucidates this. It rose from N18,000 in 2011 to N30,000 in 2019 and then to N70,000 in 2024. Yet each increase was followed by soaring inflation that wiped out most of the gains.

It is alleged that some states have yet to implement the minimum wage for grassroots workers, local government employees and primary school teachers.

Dataphyte estimates that the real value of the previous N30,000 wage had collapsed to barely N11,708 by mid-2024. The current N70,000 wage is clearly following the same path.

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The CBN reported that workers lost N2.79 trillion in purchasing power in 2024 alone due to inflation. That explains why workers who celebrated the 133 per cent wage increase in 2024 now find themselves struggling to survive less than two years later.

Nothing illustrates the crisis more vividly than the National Bureau of Statistics and Global Alliance for Improved Nutrition Cost of a Healthy Diet data.

According to an analysis by The Whistler, a healthy diet for one adult now costs an average of N1,541 per day or N46,230 per month, excluding meal preparation costs.

This means that a worker earning N70,000 is left with just N23,770 after feeding only himself.

For an average Nigerian household of 5.06 persons, the monthly cost of a healthy diet rises to N233,923 — equivalent to 334 per cent of the current minimum wage.

In other words, the average worker cannot afford the minimum nutritional requirements recommended by global health standards.

Even the governors’ proposed N100,000 wage would still leave most families far below the subsistence level. It is therefore difficult to dispute labour’s argument that Nigeria’s wage structure has become detached from economic reality.

However, raising wages alone cannot solve the problem.

The organised private sector has raised legitimate concerns about its ability to pay across the board.

The president of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, said the private sector should not be compelled to pay the same wage level as the government if businesses could not afford it.

The Director-General of the Nigeria Employers’ Consultative Association, Adewale Oyerinde, points out that the process for arriving at a National Minimum Wage is “rooted in widely acclaimed tripartite negotiations and consultation and not just political statements, without any empirical data to back up the quantum of increase.”

The Centre for the Promotion of Private Enterprise warned that many businesses are already struggling under crushing energy costs, logistics bottlenecks, foreign exchange challenges, multiple taxation and weak consumer demand. All this needs to be addressed.

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Indeed, any wage increase that is unsupported by productivity growth and economic reforms risks fuelling another inflationary spiral. Businesses facing higher wage bills often pass costs to consumers, thereby worsening the very inflation the wage increase seeks to offset.

Nigeria must therefore avoid the false choice between workers’ welfare and business survival.

The real objective should be a living-wage framework tied to measurable economic indicators and supported by aggressive cost-of-living reduction policies.

This is the model increasingly adopted across many countries. In South Africa, the national minimum wage is approximately 28.79 rand per hour, translating to well over N250,000 monthly at prevailing exchange rates.

Algeria’s minimum wage is around 20,000 dinars (N204,000) monthly, while Egypt recently increased its public-sector minimum wage to 7,000 Egyptian pounds (N184,000).

Kenya’s minimum wage varies by sector and location, but the average of 16,113 Kenyan Shillings (N169,500) remains significantly higher in purchasing power terms than Nigeria’s.

Nigeria should not be setting wage policy as though inflation were a temporary inconvenience.

Food inflation remains the principal driver of household hardship, standing at 16.06 per cent YoY and higher than headline inflation of 15.69 per cent as of April.

Massive investments in agricultural productivity, rural roads, storage infrastructure and security in farming communities are urgently needed.

The absurd situation where healthy diets are more expensive in some rural communities than in urban centres because of poor roads must end.

The government must also address transport costs through investments in rail, inland waterways and public transportation systems.

Electricity tariffs remain a major burden on both households and businesses. Lowering energy costs would immediately improve living standards while enhancing business competitiveness.

Investments in health by ramping up health insurance enrolment and better access to quality care, and in education, via massive infrastructure improvements and teacher recruitment, will reduce household expenditure on these essentials.

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Furthermore, labour’s argument regarding improved government revenues deserves scrutiny.

Since the outbreak of conflict in the Middle East, higher oil prices have boosted Nigeria’s earnings. It is estimated that the windfall has added more than N5 trillion to government coffers.

Whether that figure is an exaggeration or not, governments are receiving historically high FAAC allocations, averaging over a 50 per cent surge for states in 2025 and all tiers sharing up to N2 trillion in 2026.

Nigerians deserve to see some direct benefit from these gains through targeted subsidies for food production and transportation, public transit and essential services.

More fundamentally, wage determination should no longer depend on sporadic political negotiations every few years.

The National Minimum Wage Act should be amended to provide for automatic annual adjustments linked to inflation, productivity and cost-of-living indicators. Such a mechanism would prevent workers from suffering prolonged erosion of purchasing power before the government responds.

Above all, policymakers must remember that they are insulated from the hardships confronting ordinary citizens.

Governors, legislators, political appointees and senior public officials enjoy humongous allowances, subsidised accommodation, official vehicles, security details and generous expense accounts.

They do not queue for transport. They do not worry about school fees after buying food. They do not feel inflation in the same way as the average worker.

That disconnect explains why debates over N70,000, N100,000 or even N1 million often miss the central issue.

The goal of wage policy is not simply to keep workers alive so that the job is done. It is to ensure that honest labour can provide a decent standard of living.

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