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Oil sector key to economic growth – Don

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Stakeholders and youths across the North-West geopolitical zone on Monday converged on Kaduna to deliberate on the future of Nigeria’s oil and gas sector and the need for citizens to play a more active role in governance.

The event, held under the auspices of the First Citizens Connect Conference – Nigeria, had as its theme: “Amplifying President Bola Ahmed Tinubu’s Renewed Hope Agenda through Excellence in Regulatory Frameworks and Upstream Oil and Gas Performance as a Catalyst for Sustainable Economic Prosperity Beyond 2027.”

The conference brought together youths, traditional rulers, academics, policymakers, civil society actors, and community leaders to discuss the country’s economic direction and the role of civic engagement in driving reform.

In his keynote address, Professor Usman Mohammed of the Department of Political Science and International Studies, Kaduna State University,  described the ongoing reforms in Nigeria’s oil and gas sector as crucial to the nation’s economic recovery and long-term prosperity.

Mohammed urged citizens to support the drive toward transparency, efficiency, and national self-reliance.

Delivering a paper titled: “Amplifying President Bola Ahmed Tinubu’s Renewed Hope Agenda Through Excellence in Regulatory Frameworks and Upstream Oil and Gas Performance as a Catalyst for Sustainable Economic Prosperity Beyond 2027,” the political-science scholar insisted that regulatory excellence and production optimisation were vital if Nigeria was to achieve inclusive growth.

“Regulatory excellence, anchored on transparency, efficiency and accountability, can enhance investor confidence, drive technological innovation and improve energy-sector governance,” Mohammed said.

According to him, Nigeria’s energy endowment — an estimated 37 billion barrels of crude oil and 209 trillion cubic feet of gas — remains under-utilised due to inefficiency, subsidy distortions, and weak institutional oversight.

See also  NNPC links cooking-gas price hike to PENGASSAN strike

“The energy and natural resources sector has been both a blessing and a burden. For too long, leakages, weak regulations, and poor coordination have limited our national potential,” he said.

The don identified the Petroleum Industry Act PIA 2021 as a major milestone that reshaped the oil and gas landscape by creating two dedicated regulators — the Nigerian Upstream Petroleum Regulatory Commission NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA — to ensure clarity between policy, regulation, and operations.

“The PIA changed our trajectory, offering a legal, fiscal, and institutional rebirth for Nigeria’s most strategic sector,” he noted, adding, “But laws alone are not enough — implementation and enforcement are the true tests of reform,” he stressed.

Mohammed lamented that despite reforms, Nigeria’s crude-oil production averaged just 1.4 million barrels per day in 2024, far below its OPEC quota, largely because of oil theft, pipeline vandalism, and decaying infrastructure.

“Merely producing oil is no longer enough. What matters is efficient management of the upstream sector and judicious use of revenues to drive industrialisation and job creation,” the don warned.

He recommended several policy measures to consolidate the gains of the PIA, including full operationalisation of the regulatory agencies, adoption of digital monitoring systems, rehabilitation of pipelines and export terminals, incentives for gas monetisation, and stronger local-content enforcement.

“Regulatory excellence without macroeconomic discipline can not deliver prosperity. We must align oil-sector reforms with fiscal stability, exchange-rate management, and anti-corruption efforts,” Mohammed maintained.

He also urged Nigerians to protect the nation’s sovereignty by supporting reforms in good faith and resisting foreign manipulation disguised as partnership.

See also  NNPC sets 36-year oil production record at 355,000bpd

“The strength of our sovereignty lies in our unity and our capacity to debate, reform and rebuild within — not by surrendering our autonomy to others who neither share our struggles nor our aspirations,” the expert insisted.

Earlier in his remarks, the co-convener of the Citizens Engagement Conference, Mallam Nasir Abdulquadri, said the initiative was conceived as a platform to connect leadership with the people and strengthen participatory governance across the six geopolitical zones.

“Governance is not the duty of government alone but the responsibility of all who call Nigeria home,” Abdulquadri told participants.

He described Kaduna as a symbolic venue for the North-West edition, being the political and intellectual heart of Northern Nigeria.

“Kaduna stands as a bridge between history and modern governance. Hosting this edition here underscores the region’s central role in driving Nigeria’s reform agenda,” he said.

Abdulquadri commended President Tinubu for building on the PIA framework through bold steps such as subsidy removal and deregulation, which, though painful, were necessary to restore long-term economic stability.

“The President has shown uncommon courage by implementing policies that are steering Nigeria toward sustainability. Deregulation has begun to open space for private investment, refinery rehabilitation, and modular refining across regions,” he said.

Thus, the co-convener cautioned against external interference and divisive politics, stressing, “true partnership is welcome; manipulation is not. A nation can correct itself without collapsing itself.”

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EFCC Begins Probe Of Ex-NMDPRA Boss After Dangote’s Petition

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The Economic and Financial Crimes Commission (EFCC) has commenced an investigation into a petition filed against the former Managing Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, by the President of Dangote Group, Aliko Dangote.

It was gathered that Dangote formally submitted the petition to the EFCC earlier this week through his legal representative, following the withdrawal of a similar petition from the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

Dangote had initially approached the ICPC, asking it to investigate Ahmed over allegations that he spent about $5 million on his children’s secondary education in Switzerland, an expense allegedly inconsistent with his known earnings as a public officer.

Although the petition was later withdrawn, the ICPC had said it would continue with its investigation.

Confirming the new development, a senior EFCC officer at the commission’s headquarters in Abuja, who spoke on condition of anonymity because he was not authorised to speak publicly, said the petition had been received and investigations had commenced.

“They have brought the petition to us, and an investigation has commenced on it. Serious work is being done concerning it,” the source said.

In the petition signed by Dangote’s lead counsel, Dr O.J. Onoja (SAN), the businessman urged the EFCC to investigate allegations of abuse of office and corrupt enrichment against Ahmed and to prosecute him if found culpable.

The petition further stated that Dangote was ready to provide documentary and other evidence to support claims of financial misconduct and impunity against the former regulator.

See also  NNPC sets 36-year oil production record at 355,000bpd

“We make bold to state that the commission is strategically positioned, along with sister agencies, to prosecute financial crimes and corruption-related offences, and upon establishing a prima facie case, the courts do not hesitate to punish offenders,” the petition read, citing recent court decisions.

Onoja also called on the EFCC, under the leadership of its chairman, Olanipekun Olukoyede, to thoroughly investigate the allegations and take appropriate legal action where necessary.

When contacted, the EFCC spokesperson, Dele Oyewale, declined to comment on the matter but promised to respond later. No official reaction had been received as of the time of filing this report.

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IMPORTANT NOTICE REGARDING MONEY TRANSFERS IN NIGERIA (2026)

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Starting from *January 2026*, please ensure that *any money you send* to anyone — including me — comes with a *clear description* or *payment remark*. This is *very important* for tax purposes.

Use descriptions like:

– *Gift*
– *Loan*
– *Loan Repayment*
– *House Rent*
– *School Fees*
– *Feeding*
– *Medical*
– *Support*,
– School fee etc.

*Why this matters:*

In 2026, any money entering your account *without a description* may be treated as *income*, and *IRS (or relevant tax authority)* could tax it — or even worse, ask you to explain the source.

The *first ₦800,000* may be *tax-free*, but after that, any unexplained funds might attract up to *20% tax*, or in extreme cases, lead to legal issues.

So please:

– *Always include a payment remark.*
– *Avoid using USSD or apps that don’t allow descriptions.*
– *Ask the receiver for the correct description BEFORE sending.*

As for me, *do not send me any money* without discussing it with me first.
And no, I don’t want to hear “Sir/Ma, I used USSD” – if you can’t add a description, *hold your money*.

From now on, *I will tell you exactly what to write in the payment remark.*
Let’s all form the habit of *adding payment descriptions now* to avoid problems later.

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See also  Class of 99: Create cottage industries, not N5,000 palliative – Former Govs tell Tinubu
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FG earmarks N1.7tn in 2026 budget for unpaid contractors

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The Federal Government has budgeted the sum of N1.7tn in the 2026 Appropriation Bill to settle outstanding debts owed to contractors for capital projects executed in 2024.

A breakdown of the proposed 2026 national budget shows that the amount is captured under the line item titled “Provision for 2024 Outstanding Contractor’s Liabilities,” signalling official recognition of delayed payments to contractors amid recent protests over delayed settlements.

This budgetary provision follows mounting pressure from indigenous contractors and civil society groups who, in 2025, raised alarm over unpaid contractual obligations allegedly exceeding N2tn.

Some groups under the All Indigenous Contractors Association of Nigeria had also staged demonstrations in Abuja, lamenting the severe impact of delayed payments on their operations, with many contractors reportedly unable to service bank loans taken to execute government projects.

Earlier, Minister of Works David Umahi had promised to clear verified arrears owed to federal contractors before the end of 2025. However, only partial payments were made amid revenue constraints, prompting the inclusion of the N1.7tn line item in the 2026 budget as a catch-up mechanism.

In addition to the N1.7tn for 2024 liabilities, the government has also budgeted N100bn for a separate line item labelled “Payment of Local Contractors’ Debts/Other Liabilities”, which may cover legacy debts from previous years, smaller contract claims, or unsettled financial commitments that were not fully verified in the current audit cycle.

The total N1.8tn allocation is part of the broader N23.2tn capital expenditure in the 2026 fiscal plan, which seeks to ramp up infrastructure delivery while cleaning up past obligations.

See also  Gas firms supply 180bscf to power plants despite N2.7tn debt

Nigeria’s contractor debt backlog has been a recurring fiscal issue, worsened by delayed capital releases, partial cash-backing of budgeted projects, and underperformance in revenue targets.

Speaking with journalists at the entrance of the Federal Ministry of Finance in December 2025, the National Secretary of the All Indigenous Contractors Association of Nigeria, Babatunde Seun-Oyeniyi, said the government’s failure to release funds after multiple assurances had forced contractors to resume protests. He said members of the association were owed more than N500bn for projects already completed and commissioned.

He explained that despite recent assurances from the Minister of Finance, Wale Edun, no payment had been made. “After the National Assembly intervened, they told us that they will sit the minister down over this matter.  And we immediately stopped the protest,” he said.

According to him, repeated follow-up meetings with the minister had produced no tangible progress. “They have not responded to our request,” he said. “In fact, more than six times we have come here. Last week, we were here throughout the night before the Minister of Finance came.”

Oyeniyi said that although some payment warrants had been sighted, no funds had been released. “Specifically, when we collate, they are owing more than N500bn for all indigenous contractors. We only see warrants; there is no cash back.”

He accused officials of attempting to push the payments into the next fiscal year. “The problem is that they want to put us into a backlog. They want to shift us to 2026; that 2026, they are going to pay,” he alleged. “They will turn us into debt, and we don’t want that. We won’t leave here until we are paid.”

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However, The PUNCH observed that earlier in August 2025, the Federal Government claimed that it had cleared over N2tn in outstanding capital budget obligations from the 2024 fiscal year, with a pledge to prioritise the timely release of 2025 capital funds.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this at a ministerial press briefing in Abuja, where he also declared that Nigeria is “open for business” to global investors on the back of improved economic stability.

“In the last quarter, we did pay contractors over N2tn to settle outstanding capital budget obligations. That is from last year,” Edun said. “At the moment, we have no pending obligations that are not being processed and financed. And the focus will now shift to 2025 capital releases.”

By December 2025, The PUNCH reported that President Bola Tinubu expressed “grave displeasure” over the backlog of unpaid federal contractors and set up a high-level committee to resolve the bottlenecks and fund repayments.

Briefing State House correspondents after the Federal Executive Council meeting in Abuja, Special Adviser on Information and Strategy, Bayo Onanuga, said the President was “upset” after learning that about 2,000 contractors are owed. “He made it very, very clear he is not happy and wants a one-stop solution,” Onanuga told journalists.

Tinubu directed the setting up of a committee to verify all claims from federal contractors. The new budget’s provisions are expected to draw from the outcome of that verification exercise and may be disbursed in tranches based on confirmed and certified claims.

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The total proposed 2026 national budget stands at N58.47tn, with N23.2tn earmarked for capital expenditure, N15.9tn for debt servicing, N15.25tn for recurrent spending, and N4.09tn for statutory transfers.

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