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Onyema warns new taxes could cripple airlines

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The Chairman of Air Peace, Allen Onyema, has praised President Bola Tinubu and the Minister of Aviation and Aerospace Development, Festus Keyamo, for what he described as a remarkable turnaround in Nigeria’s aviation sector.

He made these remarks at an event in Abuja celebrating 100 years of aviation in Nigeria.

“I represent the entire airspace. And when we speak, we are not afraid to speak. And we are not afraid to criticise when necessary,” he said, noting that airline operators also commend leadership when it is deserved. “And today, I want to celebrate our president.”

Onyema said the president’s appointments have played a crucial role in stabilising the sector. “Because this president has helped the aviation industry. First and foremost, with the kind of appointment he made,” he said.

Recalling his earlier interactions with the president, Onyema said, “I remember when I met him in the villa.

I told him that someday, Mr President, and I repeated this several times to his hearing and understanding, that someday, Mr President, you will thank God Almighty for allowing you to appoint Keyamo to this position.”

According to Onyema, the aviation industry had long been unfairly labelled as incapable.

“Our industry was almost dead. Nigerian airlines were suffering under a demonised status.

V We were all demonised as not being effective,” he said. “We were all demonised as lacking in capacity. We were all demonised as having nothing good to come from us. Nobody had hope.”

He added that despite their contributions to the economy, domestic airlines received little recognition.

“The country was made to look at us as a very hopeless sector… Yet, we didn’t get our flowers. Now, we have a change,” he said.

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Onyema said the minister has been relentless in pushing reforms: “We have a minister who has decided that every day of his life, he’s out there trying to improve the lives of all of you here, the airlines.”

He credited the synergy between the presidency and the aviation ministry for the renewed confidence in the sector: “And when you have a minister, and you have a president who has given a minister a marching order to make sure the domestic airlines succeed… that is what we are enjoying today.”

Onyema also acknowledged the role of the deputy minister and other aviation agencies.

“And we thank Mr President for giving those marching orders to his deputy minister,” he said. He praised the Managing Director of FAAN, noting that “the FAAN MD… is working tirelessly with little resources to give the airlines a listening ear.”

However, Onyema warned that looming taxes set to take effect on 1 January 2026 could cripple local airlines if not reviewed.

“We are going to meet members of the National Assembly very soon… to discuss the issues of taxation… because if it is allowed to happen, all of us will crumble,” he cautioned. “So, I know Mr President will heed our cries and do the needful.”

He clarified that regulators were not encouraging unsafe operations. “They are not cutting corners; they are not telling the airlines to do anything unsafe. Rather, on the administrative aspect of things: when procedures need to be expedited, they do it.”

Onyema also highlighted Air Peace’s impact on international fares, saying competition had dropped ticket prices significantly. “Before now, the airlines had no competition. What they were doing was going to the market, charging Nigerians an arm and a leg  N16 m to go to London. Air Peace came in and brought it down to four million.”

See also  Economic recovery has begun – Edun

The Air Peace chairman urged continued support for reforms to ensure the sustainability of Nigeria’s aviation sector.

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NNPC serviced $3bn loan with N991bn crude – Report

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The Nigerian National Petroleum Company Limited has serviced part of its $3bn forward-sale loan from the African Export-Import Bank with crude oil worth N991bn in 2024, according to its 2024 financial statement report. The repayment was tied to Project Gazelle, a forward crude oil supply agreement signed in 2023.

On August 17, 2023, The PUNCH reported that the NNPC announced it had secured a $3.3bn emergency loan to repay crude oil obligations from Afreximbank. It explained that the loan would be used by the oil company to support the Federal Government in stabilising Nigeria’s exchange rate.

“The NNPC Ltd. and AFREXIM bank have jointly signed a commitment letter and Termsheet for an emergency $3bn crude oil repayment loan,” NNPC said in a statement.

“The signing, which took place today at the bank’s headquarters in Cairo, Egypt, will provide some immediate disbursement that will enable the NNPC Ltd. to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market,” it added.

Under the deal, NNPC committed to deliver 90,000 barrels of crude oil per day from Production Sharing Contract assets to back a funding facility. According to the 2023 financial statement, a drawdown of $2.25bn had already been achieved by 31st December 2023, with principal repayment scheduled to begin in June 2024.

The funding carried an interest rate of 3-month LIBOR plus 6.5 per cent, with a 6 per cent margin and 0.5 per cent liquidity premium.

According to the 2024 financial statement, the drawdown on the facility had reached N4.9tn out of a total available N5.1tn, while N991bn worth of crude oil had been lifted in repayment, leaving an outstanding balance of N3.8tn at the end of 2024.

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The report read, “In December 2023, NNPC Limited entered into a forward sale agreement with Project Gazelle Funding Limited to supply 90,000 bbl. of crude oil per day from Production Sharing Contract Assets for the settlement of a 5-year N2.7tn funding.

“The funding was utilised by the company to finance an advance payment of future taxes and royalty obligations due to the federation on PSC assets managed by the Company on behalf of the Federation.

“As at 31st December 2024, a drawdown of N4.9tn has been achieved from the initial facility of N5.1tn. The interest rate for the facility is 3-month SOFA plus 6.5 per cent while the margin and Liquidity Premium of 0.5 per cent respectively. A total value of Crude Oil worth N991bn has been lifted with a balance of N3.8tn as at 31st December 2024.”

The repayment was made between June and December 2024. However, NNPC did not disclose the identity of the offtakers or exact delivery volumes fulfilled in 2024.

The Project Gazelle arrangement has become one of NNPC’s most significant forward-sale financing vehicles, following a trend of oil-backed loans designed to shore up government revenues, refinance legacy debts, and meet budgetary obligations amid limited fiscal buffers.

The PUNCH earlier reported that the NNPC Ltd is burdened with crude-backed loan obligations estimated at N8.07tn.

The liabilities stretch across multiple forward-sale and project-financing arrangements that are expected to be serviced through substantial crude oil and gas deliveries. The commitments have become a major pillar of NNPCL’s funding structure following years of fiscal pressure, volatile crude production, and declining upstream investment.

See also  N5.6tn debt: Energy crisis looms as gas firms cut supply

Several of the facilities were used to refinance older debts, fund refinery rehabilitation, support cash flow, and meet government revenue obligations.

When assessed together, the company’s major crude-for-loan facilities—Eagle Export Funding (21,000 bpd), Project Yield (67,000 bpd), Project Leopard (35,000 bpd), and Project Gazelle (90,000 bpd)—represent a combined commitment of 213,000 barrels per day, in addition to separate gas-delivery obligations under the NLNG arrangement.

The volume equates to a sizeable share of Nigeria’s daily crude output, underscoring the long-term implications of these arrangements for government revenue, export allocation, and operational flexibility.

The PUNCH also reported that Nigeria’s gross profit from crude oil and gas sales plunged by N824.66bn in 2024 despite a rebound in oil production, according to figures from the Budget Implementation Report for the fourth quarter of 2024 released by the Budget Office of the Federation.

Data from the report revealed that gross profit from crude and gas sales fell to N1.08tn during the year, from N1.90tn in 2023, representing a 43.32 per cent decline.

The Chief Executive Officer of AHA Strategies and oil and gas expert, Mr Ademola Adigun, earlier linked Nigeria’s declining oil earnings to opaque crude-for-cash agreements and undisclosed loan repayments that have tied up part of the country’s crude output.

He said some of the government’s oil barrels were already committed to debt settlements and forward-sale contracts, reducing the actual volume that brought fresh revenue into the Federation Account.

Adigun said, “Some of our crude is already tied up in loan agreements. The problem is that Nigeria doesn’t know the full details of these transactions because there’s little transparency around them.”

See also  Dangote Refinery reorganises workforce over sabotage, denies mass sack

He explained that several crude-backed projects, such as Project Gazelle, were carried out without proper public disclosure or parliamentary scrutiny.

He added that the Nigeria Extractive Industries Transparency Initiative should strengthen its audits to determine how much of the country’s crude is being used for debt repayment or swap transactions.

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Yuletide: Dangote assures Nigerians of stable fuel supply

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Chairman of Dangote Group, Aliko Dangote, on Friday said Nigerians will no longer experience fuel queues during the Christmas and New Year seasons.

Briefing State House correspondents after meeting with President Bola Tinubu at the Aso Rock Villa, Abuja, Dangote said his refinery has formally notified the Nigerian Midstream and Downstream Petroleum Regulatory Authority of its readiness to deliver 50 million litres of Premium Motor Spirit daily, far above national consumption.

He said, “Historically, Nigeria has battled fuel queues since 1972. For the first time, we are eliminating those queues, not through imports but by producing locally.

“Even when we were servicing the refinery, there were no queues. I can assure you that queues are now history.”

Dangote stated that the refinery will soon produce surplus volumes, adding that by February, it will supply 15–20 million litres more than Nigeria needs.

This, he argued, will allow exports to neighbouring countries, reducing the incidence of fuel scarcity across West Africa.

The industrialist also disclosed that domestic manufacturers, especially in the plastics industry, will now enjoy reliable access to locally produced feedstock, ending years of reliance on imports estimated at $400m annually.

Dangote also announced an expansion programme that will raise refinery capacity to 1.4 million barrels per day by 2028, surpassing India’s Reliance refinery, the world’s largest, at 1.25 million barrels per day.

“We have already signed the necessary agreements.

“Construction piling begins before the end of January, and we will deliver on schedule,” he announced.

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He revealed plans to scale up the company’s urea production to 12 million tonnes annually, positioning Nigeria to overtake Russia and Qatar as the world’s leading producer.

“Our goal is to use our fertilizer company to supply the entire African continent,” Dangote said.

Dangote attributed the recent drop in petrol and diesel prices to increased competition and reduced smuggling.

“Prices are going down because we must compete with imports.

“Luckily, smuggling has dropped significantly, though not completely,” he explained.

He noted that the refinery business is a long-term national investment, saying, “We’re not here to recover $20 billion overnight.

“The legacy I want to leave is that whatever Nigerians need, fuel, fertiliser, power, we will be part of delivering it.”

Dangote further highlighted logistics constraints affecting Nigeria’s solid minerals sector, particularly the congestion of major ports.

“Apapa is full. Tin Can is full. Lekki is mainly for containers.

“You cannot export coal or copper if you have nowhere to ship from,” he noted.

To curb this, he explained that the Group is developing what would become West Africa’s largest deep-sea port at Olokola, expected to be completed in two to two-and-a-half years.

The Kano-born businessman expressed support for the Tinubu administration’s naira-for-crude initiative, describing it as a patriotic move to strengthen the economy, although he acknowledged pushback from international oil companies.

According to him, “It’s a teething problem, but it will be resolved, either through legislation or administrative action.”

On concerns about global competition, Dangote maintained that the refinery will thrive.

He said, “What we want is to make Nigeria the refining hub of Africa. All African countries import fuel. We want what we consume to be produced here.”

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He also endorsed the government’s Nigeria-first industrial policy and urged wealthy Nigerians to channel resources into productive investment rather than luxury spending.

“If you have money for a private jet, invest in industries and create jobs,” he stated, adding that domestic investors must drive industrialisation to attract foreign capital.

Dangote acknowledged past hurdles, policy instability, smuggling, and factory closures, but expressed optimism that the country is now on a stable path toward sustainable industrial growth.

“Domestic investors must lead the way. Once they do, foreign investors will follow.

“Nobody advertises a good restaurant; when the food is good, word spreads,” he explained.

He described his meeting with President Tinubu as a routine consultation on the economy and business environment, noting that it was “a very fruitful meeting.”

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OPay secures double honours at Tech Innovation Awards

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Nigeria’s premier financial technology company, OPay, has been named Fintech Company of the Year and Best Fintech in Cybersecurity at the ninth Tech Innovation Awards.

In a statement on Thursday, OPay said the award was in recognition of its innovation and security leadership.

The awards ceremony, held on 29 November 2025, in Lagos, convened top organisations and industry leaders who shape the country’s digital landscape.

Speaking after receiving the honours, Chief Compliance Officer at OPay, Chukwudinma Okafor, said, “These awards are a testament to our relentless pursuit of excellence in fintech and our unwavering commitment to user security. Every innovation we introduce, from secure payments to advanced compliance measures, is designed to give millions of Nigerians the confidence to transact safely. This recognition belongs as much to our dedicated team as it does to the users who inspire us to continually raise the bar for excellence in fintech and cybersecurity.”

Highlighting OPay’s proactive approach to security, Chief Commercial Officer Elizabeth Wang said, “We are incredibly proud to receive both Fintech Company of the Year and Best Fintech in Cybersecurity at the 9th Tech Innovation Awards, two recognitions that highlight our dedication to security and user protection. At OPay, we believe that equipping users with the knowledge and advanced tools is essential to building trust and promoting financial inclusion. This was demonstrated through our OPay Security Vote Campaign some months ago, a dynamic social media initiative that educated users on our in-app security features. The campaign has helped millions of Nigerians understand how to protect their accounts and transact safely, reinforcing that security is central to everything we do. Hence, these awards recognise not only our leadership in fintech but also our commitment to keeping every transaction secure and our customers confident in their financial journey.”

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OPay was established in 2018 as a leading financial institution in Nigeria with the mission to make financial services more inclusive through technology. The company offers a wide range of payment services, including money transfer, bill payment, card service, airtime and data purchase, and merchant payments, among others. Renowned for its fast and reliable network and strong security features that protect customers’ funds, OPay is licensed by the Central Bank of Nigeria and insured by the Nigerian Deposit Insurance Corporation with the same insurance coverage as commercial banks.

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